Corrected entry: They're supposed to be far out at sea, but in the beginning of the "walk the plank" scene, as the camera looks at Nitro, the shoreline and buildings can be seen.
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Correction: This isn't a mistake since at no point is it established that they're "far out to sea". All we know is that they're out of a designated containment zone. The largest actual number given in the movie is "12,000 yards", and that's the range between ships and not ship-to-shore. Since there's no way to establish the submarine's distance to shore, having the shore visible in the background is not a mistake. Indeed, the fact that they dumped Pascal on what looks like a small fishing trawler highly suggests they ARE close to shore.