US Fines Texas Oil Co. $15M For Illegal Cabotage

Law360, New York (October 24, 2011, 10:28 PM EDT) -- The federal government on Monday reportedly hit a Texas-based oil company with a $15 million fine for transporting a jack-up rig from Texas to Alaska using a foreign-flagged vessel in violation of the Jones Act.

Houston-based Escopeta Oil Inc. used a Chinese vessel to transport the rig in August from the Gulf Coast to Vancouver, British Columbia, before using U.S.-built ocean tugs to take the rig the rest of the way to Cook Inlet, Alaska, according to the Associated Press.

According to U.S. Customs and Border...
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