BSEE Revises Regulations for Maximum Daily Civil Penalty Fines

WASHINGTON - The Bureau of Safety and Environmental Enforcement today announced revisions to the regulations for maximum daily civil penalties that may be imposed on producers for violations under the Federal Oil and Gas Royalty Management Act.

The revised regulations cross-reference the parallel regulations of the Office of Natural Resources Revenue, which also sets MDCP amounts for FOGRMA violations. This 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.

'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,' said BSEE National Enforcement Program Manager, Janine Marie Tobias.

DOI's civil penalties and enforcement actions ensure full payment of revenues owed for the development of the nation's energy and natural resources on the Outer Continental Shelf.

BSEE may impose civil penalties under FOGRMA after providing an operator with Notice of Noncompliance and an opportunity to correct the violation(s) for noncompliance with any applicable statute, regulation, order, or lease term relating to any federal oil or gas lease. BSEE may also impose penalties under FOGRMA, without providing prior notice or an opportunity to correct the violation, for certain known or willful violations of the substantive provisions of FOGRMA.

The revised regulation does not impose any new costs or other burdens, and as explained in the preamble to the final rule, is exempt from the requirement for a prior proposal and opportunity for public comment. The final rule notice is available for review in the Federal Register.

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