Mallard Bay Drilling Case Study

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On April 9, 1997, Rig 52 that belonged to Mallard Bay Drilling was towed to a location in the territorial waters of Louisiana, where it drilled a well over two miles deep. After the well was almost complete an explosion occurred killing four of the crew and injuring several others. Seeing that this was a marine casualty in navigable U.S. waters, under existing regulations the United States Coast Guard responded. When the investigation was over the Coast Guard did not find any violations of their regulations and noted it was an uninspected vessel and the operator held an Operator Uninspected Passenger Vessel (OUPV) license. Soon after the incident the Occupational Safety and Health Administration (OSHA) cited Mallard Bay Drilling for violations …show more content…

OSHA and the USCG signed a Memorandum of Understanding (MOU) recognizing that the Guard has displaced OSHA's jurisdiction over all working environments on inspected vessels, including those not addressed by precise regulations but, the USCG regulations and authority over uninspected vessels is more limited. When all this was taking place Mallard Bay Drilling could not identify any specific regulations that address these issues that would be covered in the USCG regulatory program. The Supreme Court ruled in favor of OSHA that they had jurisdiction in state waters on the uninspected vessel but was later reversed by the U.S. Court of Appeals saying, the USCG did in fact have exclusive jurisdiction over regulatory working conditions not only on inspected vessels but uninspected vessels. The court explained that the USCG has implemented their authority to issue safety regulations for uninspected vessels such as: marine safety, fire extinguishers, life preservers, engine ventilation, and emergency tracing

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