Respondent is an operator in the offshore oil/gas exploration and production business in the Western portion of the outer continental shelf of the Gulf of Mexico (off of Louisiana and Texas) operating in federal waters. Respondent operated an offshore platform in High Island 389. Resopndent had an NPDES discharge permit for produced water and other discharges. However, the permit did not authorizes discharges into areas of biological concern. Respondent's platform is located in the Flower Garden National Marine Sanctuary and is an area of biological concern. Respondent is being penalized for failing to obtain the proper NPDES permit for discharges from their platform in High Island 389. Respondent is only liable for discharges in 2 months of 1998 due to the statute of limitations. Respondent sold facility to Vastar (BP) in 1998, who then sold it to W&T Offshore in 1999.