Feds propose record fine for 2023 Gulf of Mexico oil spill

By Carlos Anchondo | 01/06/2026 06:49 AM EST

The Trump administration is touting a planned $9.6 million civil penalty against Panther Operating Co.

A southwest-facing photograph of an oil slick 80 miles south of New Orleans, Louisiana, in the Gulf of Mexico with annotations by the Bureau of Safety and Environmental Enforcement.

A southwest-facing photograph of an oil slick 80 miles south of New Orleans in the Gulf of Mexico with annotations by the Bureau of Safety and Environmental Enforcement. Bureau of Safety and Environmental Enforcement

Federal regulators announced a record proposed fine Monday for alleged violations of pipeline safety regulations linked to a 2023 crude oil spill in the Gulf of Mexico.

The Main Pass Oil Gathering pipeline spill released an estimated 1.1 million gallons of crude off the Louisiana coastline and into the water body that President Donald Trump last year renamed the Gulf of America.

The enforcement action, brought against Panther Operating Co., includes a proposed $9.6 million fine — “the largest civil penalty ever proposed in a pipeline safety enforcement action,” according to an announcement Monday from the Department of Transportation and its Pipeline and Hazardous Materials Safety Administration (PHMSA).

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“We are sending a clear signal: when companies fail to abide by the rules, we won’t hesitate to act decisively,” Transportation Secretary Sean Duffy said in the announcement.

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