Case Document 26 Filed 04/06/16 Page 1 of 5 QAO 245E (Rev. 12/03) Judgment in a Criminal Case for Organizational Defendants Sheet 1 UNITED STATES DISTRICT COURT EASTERN District of LOUISIANA UNITED STATES OF AMERICA JUDGMENT IN A CRIMINAL CASE V. (For Organizational Defendants) ENERGY RESOURCE TECHNOLOGY GOM, LLC CASE NUMBER: 15-281 V\?lliam Michael, Jr. Defendant Organization?s Attorney THE DEFENDANT ORGANIZATION: pleaded guilty to count(the Bill of Information on January 6,2016. El pleaded nolo contendere to count(s) which was accepted by the comt. was found guilty on count(s) after a plea of not guilty. The organizational defendant is adjudicated guilty of these offenses: Title Section Nature of Offense Offense Ended 43 USC 1350(c)(1) Violation of The Outer Continental Shelf Lands Act 1 2 33 USC 1319(c)(4) Violation of The Clean Water Act 3 33 USC 1319(c)(2)(A) Violation of The Clean Water Act 4 The defendant organization is sentenced as provided in pages 2 through 5 of this judgment. The defendant organization has been found not guilty on count(s) El Count(s) CI is are dismissed on the motion of the United States. It is ordered that the defendant or anization must'noti the United States attorney for this district within 30 da of any change of name, princ1pal bus1ness address, or mai ing address until all ines, restitution, costs, and spec1al assessments imposedlgy this udgment are fully 'paid. If ordered to pay restitution, the defendant organization must notify the court and United States attorney 0 material changes in economic Circumstances. Defendant Organization? Federal Employer ID. No.: 41-2208947 4/6/2016 Imposition of Judgment Defendant Organization?s Principal Business Address: 500 Dallas Street, Suite 2000 Houston, Texas 77002 Signature of Judge Ivan L.R. Lemelle US. District Judge Name of Judge Title of Judge 4/7/2016 Date Defendant Organization?s Mailing Address: Case Document 26 Filed 04/06/16 Page 2 of 5 A0 245E (Rev. 12/03) Judgment in a Criminal Case for Organizational Defendants DEFENDANT ENERGY RESOURCE TECHNOLOGY GOM, LLC Sheet 2 Probation udgrnent?Page 2 of 5 CASE 15-281 PROBATION The defendant organization is hereby sentenced to probation for a term of 3 Years as to each of Counts 1, 2, 3 and 4 of the Bill of Information, all such terms to run concurrently. The defendant organization shall not commit another federal, state or local crime. . If this judgment im oses a ?ne or a restitution obli ation, it is a condition of probation that the defendant organization pay in accordance With the chedule of Payments sheet of judgment. The defendant or anization must compl with the standard conditions that have been adopted by this court as well as with any additional conditions on 6 attached page (if in icated belowSTANDARD CONDITIONS OF SUPERVISION within thirty. days from the date of this judgment, the defendant organization shall designate an of?cial of the organization to act as the organizations?s representative and to be the primary contact With the probation of?cer; tlif?1 defendant organization shall answer truthfully all inquiries by the probation of?cer and follow the instructions of the probation cer; the defendant organization shall notify the probation of?cer ten days prior to any change in principal business or mailing address; the defendant organization shall permit a probation of?cer to visit the organization at any of its operating business sites; the defendant organization shall notify the probation of?cernwithin seventy-two hours of any criminal prosecution, major civil litigation, or adm1n1strat1ve proceeding against the organization; the defendant organization shall not dissolve, change its name, or change the name under which it does business unless this judgment and all criminal monetary penalties imposed by this court are eit er ?illy satis?ed or are equally enforceable against the defendant?s successors or ass1gnees; and the defendant organization shall not waste, nor without permission of the probation of?cer, sell, assign, or transfer its assets. Case Document 26 Filed 04/06/16 Page 3 of 5 A0 245E (Rev. 12/03) Judgment in a Criminal Case for Organizational Defendants Sheet 2B Probation DEFENDANT ENERGY RESOURCE TECHNOLOGY GOM, LLC Judgment?Page 3 0f 5 CASE NUMBER: 15-281 SPECIAL CONDITIONS OF SUPERVISION The defendant shall pay any fine/community service payment that is imposed by this judgment. The defendant shall submit to a search and/or inspection of any of its properties and places of business conducted at a reasonable time and in a reasonable manner by the United States Probation Officer and shall permit the United States Probation Officer to accompany any law enforcement or regulatory official during the enforcement or inspection of the defendant's properties or places of business. The defendant shall be required to notify the United States Probation Officer immediately upon learning of any material adverse change in its business or financial condition or prospects, the commencement of any bankruptcy proceeding or any major civil litigation in excess of $25,000.00. The defendant is to inform the United States Probation Officer of any breach of compliance involving the defendant's company. A description of the nature, date and time of the breach of compliance shall be provided to the United States Probation Officer within three days of the breach. In addition to the record retention requirement set forth in the applicable portions of the Code of Federal Regulations, the defendant shall keep the records required to be retained pursuant to regulatory provisions for a specific time period. The defendant shall commit no further criminal violations including those federal laws and regulations for which primary enforcement has been delegated to state authorities. The defendant shall comply with a Safety and Environmental Compliance Program, as outlined in the written plea agreement. The defendant shall notify the probation officer within seventy-two hours of any criminal prosecution against it or knowledge by any executive officer of any referral for potential criminal prosecution to the United States Department of Justice from regulatory authorities. The defendant shall designate an official of the organization to act as the organization?s representative and to be the primary contact with the United States Probation Office. The defendant shall provide written notice to the Government, BSEE, and the United States Probation Office ten days prior to any of the following: (1) any change of its corporate name and (2) any change in the principal business location or mailing address. The defendant shall provide periodic, written notice to the United States Probation Office and BSEE of any purchase, sale or transfer of a controlling interest in any offshore facilities. No change in name, business reorganization, bankruptcy, change in ownership or control of the company, merger, change in legal status, purchase of assets, or similar action shall alter or diminish the defendant?s obligations under the plea agreement. The defendant further agrees that it will not engage in any business reorganization, transfer of ownership, corporate dissolution, or other business practice, including the sale or transfer of assets, in order to avoid the obligations set forth in the plea agreement. The defendant shall comply with any additional special conditions set forth in the plea agreement. Case Document 26 Filed 04/06/16 Page 4 of 5 A0 245E (Rev. 12/03) Judgment in a Criminal Case for Organizational Defendants Sheet 3 Criminal Monetary Penalties 4 5 DEFENDANT ENERGY RESOURCE TECHNOLOGY Judgment?Page 0f CASENUMBER: CRIMINAL MONETARY PENALTIES The defendant organization must pay the following total criminal monetary penalties under the schedule of payments on Sheet 4. Assessment Fine Restitution TOTALS 1,600.00 4,000,000.00 200,000.00 The determination of restitution is deferred until . An Amended Judgment in a Criminal Case (AO 245C) will be entered after such determination. The defendant organization shall make restitution (including community restitution) to the following payees in the amount listed below. If the defendant organization makes a partial payment, each payee shall receive an approximatelgl proportioned payment, unless specified otherwise in the rionty order or percentage payment column elow. However, pursuant to 18 U. . . 3664(1), a lnonfederal v1ct1ms must be paid before 6 United States is paid. Name of Payee Total Loss" Restitution Ordered Priority or Percentage Southern Environmental Enforcement Network $100,000.00 National Marine Sanctuary $100,000.00 TOTALS 0.00 200,000.00 Restitution amount ordered pursuant to plea agreement The defendant organization shall pay interest on restitution or a fine of more than $2,500, unless the restitution or fine is paid in full before the ?fteenth day after the date of the judgment, pursuant to 18 U.S.C. 3612(f). All of the payment options on Sheet 4 may be subject to penalties for delinquency and default, pursuant to 18 U.S.C. 3612(g). The court determined that the defendant organization does not have the ability to pay interest, and it is ordered that: the interest requirement is waived for the fine restitution. the interest requirement for the El fine restitution is modified as follows: Findings for the total amount of losses are re%uired under Chapters 109A, 1 10, 1 10A, and 1 13A of Title 18 for offenses committed on or after September 13, 1994, but before April 23, 199 . Case Document 26 Filed 04/06/16 Page 5 of 5 A0 245E (Rev. 12/03) Judgment in a Criminal Case for Organizational Defendants Sheet 4 Schedule of Payments DEFENDANT ENERGY RESOURCE TECHNOLOGY GOM, LLC Judgment?Page 0f CASE NUMBER: 15-281 SCHEDULE OF PAYMENTS Having assessed the organization?s ability to pay, payment of the total criminal monetary penalties are due as follows: A Lump sum payment of due immediately, balance due not later than or in accordance with or below; or Payment to begin immediately (may be combined with or below); or Payment in equal, weekly, quarterly) installments of over a period of months or years), to commence 30 or 60 days) after the date of this judgment; or Special instructions regarding the payment of criminal monetary penalties: The $4,000,000.00 Fine is due immediately. Organization community service payment of $200,000.00, which is due immediately. The payment of the community service payment should be paid as follows: $100,000.00 shall be paid to the Southern Environmental Enforcement Network; and $100,000 shall be paid to the National Marine Sanctuary. The $1600.00 Special Assessment Fee is due immediately. All criminal monetary penalties are made to the clerk of the comt. The defendant organization shall receive credit for all payments previously made toward any criminal monetary penalties imposed. El Joint and Several Defendant and Co-Defendant Names and Case Numbers (including defendant number), Total Amount, Joint and Several Amount, and corresponding payee, if appropriate. The defendant organization shall pay the cost of prosecution. CI The defendant organization shall pay the following court cost(s): The defendant organization shall forfeit the defendant organization?s interest in the following property to the United States: Payments shall be applied in the following order: (1) assessment, (2) restitution principal, (3) restitution interest, (4) fine principal, (5) ?ne interest, (6) community restitution, (7) penalties, and (8) costs, including cost of prosecution and court costs.