The Bureau of Safety and Environmental Enforcement, which is controlled by the U.S. Department of the Interior, has updated civil penalties for violations under the Federal Oil and Gas Royalty Management Act. | Department of the Interior
The Bureau of Safety and Environmental Enforcement (BSEE) revised its regulations for maximum daily civil penalties (MDCP) for violations committed under the Federal Oil and Gas Royalty Management Act (FOGRMA) in June.
The penalties that would be imposed on violators based on the revised regulations cross-reference the similar regulations of the Office of Natural Resources Revenue (ONRR), which also sets MDCP amounts for FOGRMA violations.
“In addition to preventing any possibility of future inconsistencies between BSEE and ONRR maximum daily civil penalty amounts under FOGRMA, the revisions announced today eliminate the duplication of efforts and unnecessary costs to the Department of the Interior,” BSEE National Enforcement Program Manager, Janine Marie Tobias, said in a press release June 28.
The move resulting in a final rule “synchronizes and permanently links the BSEE and ONRR fine amounts ensuring they are always consistent, and that any annual inflation adjustments made by ONRR are automatically reflected by BSEE,” according to the BSEE.
The bureau may impose civil penalties under FOGRMA following a Notice of Noncompliance and an opportunity to correct violations for non-compliance with any applicable statute, regulation, order, or lease term relating to any federal oil or gas lease, BSEE stated in a press release.
However, for certain known or willful violations of the substantive provisions of FOGRMA, BSEE may impose penalties without the notice or the opportunity to correct the violation.