30 C.F.R. PART 241—PENALTIES
Title 30 - Mineral Resources
Authority: 25 U.S.C. 396 et seq., 396a et seq., 2101 et seq.; 30 U.S.C. 181 et seq., 351 et seq., 1001 et seq., 1701 et seq.; 43 U.S.C. 1301 et seq., 1331 et seq., 1801 et seq.
Source: 64 FR 26251, May 13, 1999, unless otherwise noted.
The terms used in this subpart have the same meaning as in 30 U.S.C. 1702. (a) If we believe that you have not followed any requirement of a statute, regulation, order, or terms of a lease for any Federal or Indian oil or gas lease, we may send you a Notice of Noncompliance telling you what the violation is and what you need to do to correct it to avoid civil penalties under 30 U.S.C. 1719(a) and (b). (b) We will send the Notice to your address of record as shown in the following table: (c) We will serve Notices of Noncompliance by using registered mail or personal service. The matter will be closed if you correct all of the violations identified in the Notice of Noncompliance within 20 days after you receive the Notice (or within a longer time period specified in the Notice). (a) We may send you a Notice of Civil Penalty if you do not correct all of the violations identified in the Notice of Noncompliance within 20 days after you receive the Notice of Noncompliance (or within a longer time period specified in that Notice). The Notice of Civil Penalty will tell you how much penalty you must pay. The penalty may be up to $500 per day, beginning with the date of the Notice of Noncompliance, for each violation identified in the Notice of Noncompliance for as long as you do not correct the violations. (b) If you do not correct all of the violations identified in the Notice of Noncompliance within 40 days after you receive the Notice of Noncompliance (or 20 days following the expiration of a longer time period specified in that Notice), we may increase the penalty to up to $5,000 per day, beginning with the date of the Notice of Noncompliance, for each violation for as long as you do not correct the violations. You may request a hearing on the record on a Notice of Noncompliance by filing a request within 30 days of the date you received the Notice of Noncompliance with the Hearings Division (Departmental), Office of Hearings and Appeals, U.S. Department of the Interior, 801 North Quincy Street, Arlington, Virginia 22203. You may do this regardless of whether you correct the violations identified in the Notice of Noncompliance. [64 FR 26251, May 13, 1999, as amended at 67 FR 19112, Apr. 18, 2002] (a) If you do not correct the violations identified in the Notice of Noncompliance, the penalties will continue to accrue even if you request a hearing on the record. (b) You may petition the Hearings Division (Departmental) of the Office of Hearings and Appeals, to stay the accrual of penalties pending the hearing on the record and a decision by the Administrative Law Judge under §241.72. (1) You must file your petition within 45 calendar days of receiving the Notice of Noncompliance. (2) To stay the accrual of penalties, you must post a bond or other surety instrument using the same standards and requirements as prescribed in 30 CFR part 243, subpart B, or demonstrate financial solvency using the same standards and requirements as prescribed in 30 CFR part 243, subpart C, for the principal amount of any unpaid amounts due that are the subject of the Notice of Noncompliance, including interest thereon, plus the amount of any penalties accrued before the date a stay becomes effective. (3) The Hearings Division will grant or deny the petition under 43 CFR 4.21(b). (a) You may request a hearing on the record to challenge only the amount of a civil penalty when you receive a Notice of Civil Penalty, if you did not previously request a hearing on the record under §241.54. If you did not request a hearing on the record on the Notice of Noncompliance under §241.54, you may not contest your underlying liability for civil penalties. (b) You must file your request within 10 days after you receive the Notice of Civil Penalty with the Hearings Division (Departmental), Office of Hearings and Appeals, U.S. Department of the Interior, 801 North Quincy Street, Arlington, Virginia 22203. [64 FR 26251, May 13, 1999, as amended at 67 FR 19113, Apr. 18, 2002] The Federal Oil and Gas Royalty Management Act sets out several specific violations for which penalties accrue without an opportunity to first correct the violation. (a) Under 30 U.S.C. 1719(c), you may be subject to penalties of up to $10,000 per day per violation for each day the violation continues if you: (1) Knowingly or willfully fail to make any royalty payment by the date specified by statute, regulation, order or terms of the lease; (2) Fail or refuse to permit lawful entry, inspection, or audit; or (3) Knowingly or willfully fail or refuse to notify the Secretary, within 5 business days after any well begins production on a lease site or allocated to a lease site, or resumes production in the case of a well which has been off production for more than 90 days, of the date on which production has begun or resumed. (b) Under 30 U.S.C. 1719(d), you may be subject to civil penalties of up to $25,000 per day for each day each violation continues if you: (1) Knowingly or willfully prepare, maintain, or submit false, inaccurate, or misleading reports, notices, affidavits, records, data, or other written information; (2) Knowingly or willfully take or remove, transport, use or divert any oil or gas from any lease site without having valid legal authority to do so; or (3) Purchase, accept, sell, transport, or convey to another person, any oil or gas knowing or having reason to know that such oil or gas was stolen or unlawfully removed or diverted. We will inform you of violations without a period to correct by issuing a Notice of Noncompliance explaining what the violation is and how to correct it. We also will send you a Notice of Civil Penalty stating the amount of the penalty. The Notice of Noncompliance and Notice of Civil Penalty may be issued simultaneously. We will send the Notice of Noncompliance and the Notice of Civil Penalty to your address of record under §241.51(b) using the means of service specified under §241.51(c). You may request a hearing on the record of a Notice of Noncompliance regarding violations without a period to correct by filing a request within 30 days after you receive the Notice of Noncompliance with the Hearings Division (Departmental), Office of Hearings and Appeals, U.S. Department of the Interior, 801 North Quincy Street, Arlington, Virginia 22203. You may do this regardless of whether you correct the violations identified in the Notice of Noncompliance. [64 FR 26251, May 13, 1999, as amended at 67 FR 19113, Apr. 18, 2002] (a) If you do not correct the violations identified in the Notice of Noncompliance regarding violations without a period to correct, the penalties will continue to accrue even if you request a hearing on the record. (b) You may ask the Hearings Division (Departmental) to stay the accrual of penalties pending the hearing on the record and a decision by the Administrative Law Judge under §241.72. (1) You must file your petition within 45 calendar days after you receive the Notice of Noncompliance. (2) To stay the accrual of penalties, you must post a bond or other surety instrument using the same standards and requirements as prescribed in 30 CFR part 243, subpart B, or demonstrate financial solvency using the same standards and requirements as prescribed in 30 CFR part 243, subpart C, for the principal amount of any unpaid amounts due that are the subject of the Notice of Noncompliance, including interest thereon, plus the amount of any penalties accrued before the date a stay becomes effective. (3) The Hearings Division will grant or deny the petition under 43 CFR 4.21(b). (a) You may request a hearing on the record to challenge only the amount of a civil penalty when you receive a Notice of Civil Penalty regarding violations without a period to correct, if you did not previously request a hearing on the record under §241.62. If you did not request a hearing on the record on the Notice of Noncompliance under §241.62, you may not contest your underlying liability for civil penalties. (b) You must file your request within 10 days after you receive Notice of Civil Penalty with the Hearings Division (Departmental), Office of Hearings and Appeals, U.S. Department of the Interior, 801 North Quincy Street, Arlington, Virginia 22203. [64 FR 26251, May 13, 1999, as amended at 67 FR 19113, Apr. 18, 2002] We determine the amount of the penalty by considering the severity of the violations, your history of compliance, and if you are a small business. (a) The penalties under this part are in addition to interest you may owe on any underlying underpayments or unpaid debt. (b) If you do not pay the penalty by the date required under §241.75(d), MMS will assess you late payment interest on the penalty amount at the same rate interest is assessed under 30 CFR 218.54. If you request a hearing on the record under §§241.54, 241.56, 241.62 or 241.64, the hearing will be conducted by a Departmental Administrative Law Judge from the Office of Hearings and Appeals. After the hearing, the Administrative Law Judge will issue a decision in accordance with the evidence presented and applicable law. If you are adversely affected by the Administrative Law Judge's decision, you may appeal that decision to the Interior Board of Land Appeals under 43 CFR part 4, subpart E. Under 30 U.S.C. 1719(j), you may seek judicial review of the decision of the Interior Board of Land Appeals. A suit for judicial review in the District Court will be barred unless filed within 90 days after the final order. (a) You must pay the amount of the Notice of Civil Penalty issued under §§241.53 or 241.61, if you do not request a hearing on the record under §241.54, §241.56, §241.62, or §241.64. (b) If you request a hearing on the record under §241.54, §241.56, §241.62, or §241.64, but you do not appeal the determination of the Administrative Law Judge to the Interior Board of Land Appeals under §241.73, you must pay the amount assessed by the Administrative Law Judge. (c) If you appeal the determination of the Administrative Law Judge to the Interior Board of Land Appeals, you must pay the amount assessed in the IBLA decision. (d) You must pay the penalty assessed within 40 days after: (1) You received the Notice of Civil Penalty, if you did not request a hearing on the record under either §241.54, §241.56, §241.62, or §241.64; (2) You received an Administrative Law Judge's decision under §241.72, if you obtained a stay of the accrual of penalties pending the hearing on the record under §241.55(b) or §241.63(b) and did not appeal the Administrative Law Judge's determination to the IBLA under §241.73; (3) You received an IBLA decision under §241.73 if the IBLA continued the stay of accrual of penalties pending its decision and you did not seek judicial review of the IBLA's decision; or (4) A final non-appealable judgment of a court of competent jurisdiction is entered, if you sought judicial review of the IBLA's decision and the Department or the appropriate court suspended compliance with the IBLA's decision pending the adjudication of the case. (e) If you do not pay, that amount is subject to collection under the provisions of §241.77. Under 30 U.S.C. 1719(g), the Director or his or her delegate may compromise or reduce civil penalties assessed under this part. (a) MMS may use all available means to collect the penalty including, but not limited to: (1) Requiring the lease surety, for amounts owed by lessees, to pay the penalty; (2) Deducting the amount of the penalty from any sums the United States owes to you; and (3) Using judicial process to compel your payment under 30 U.S.C. 1719(k). (b) If the Department uses judicial process, or if you seek judicial review under §241.74 and the court upholds assessment of a penalty, the court shall have jurisdiction to award the amount assessed plus interest assessed from the date of the expiration of the 90-day period referred to in §241.74. The amount of any penalty, as finally determined, may be deducted from any sum owing to you by the United States. If you commit an act for which a civil penalty is provided at 30 U.S.C. 1719(d) and §241.60(b), the United States may pursue criminal penalties as provided at 30 U.S.C. 1720, in addition to any authority for prosecution under other statutes.
Title 30: Mineral Resources
PART 241—PENALTIES
Section Contents
Definitions
§ 241.50 What definitions apply to this subpart?
Penalties After a Period To Correct
§ 241.51 What may MMS do if I violate a statute, regulation, order, or lease term relating to a Federal or Indian oil and gas lease?
§ 241.52 What if I correct the violation?
§ 241.53 What if I do not correct the violation?
§ 241.54 How may I request a hearing on the record on a Notice of Noncompliance?
§ 241.55 Does my request for a hearing on the record affect the penalties?
§ 241.56 May I request a hearing on the record regarding the amount of a civil penalty if I did not request a hearing on the Notice of Noncompliance?
Penalties Without a Period To Correct
§ 241.60 May I be subject to penalties without prior notice and an opportunity to correct?
§ 241.61 How will MMS inform me of violations without a period to correct?
§ 241.62 How may I request a hearing on the record on a Notice of Noncompliance regarding violations without a period to correct?
§ 241.63 Does my request for a hearing on the record affect the penalties?
§ 241.64 May I request a hearing on the record regarding the amount of a civil penalty if I did not request a hearing on the Notice of Noncompliance?
General Provisions
§ 241.70 How does MMS decide what the amount of the penalty should be?
§ 241.71 Does the penalty affect whether I owe interest?
§ 241.72 How will the Office of Hearings and Appeals conduct the hearing on the record?
§ 241.73 How may I appeal the Administrative Law Judge's decision?
§ 241.74 May I seek judicial review of the decision of the Interior Board of Land Appeals?
§ 241.75 When must I pay the penalty?
§ 241.76 Can MMS reduce my penalty once it is assessed?
§ 241.77 How may MMS collect the penalty?
Criminal Penalties
§ 241.80 May the United States criminally prosecute me for violations under Federal and Indian oil and gas leases?
Subpart A—General Provisions [Reserved]
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Subpart B—Penalties for Federal and Indian Oil and Gas Leases
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Definitions
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§ 241.50 What definitions apply to this subpart?
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Penalties After a Period To Correct
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§ 241.51 What may MMS do if I violate a statute, regulation, order, or lease term relating to a Federal or Indian oil and gas lease?
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---------------------------------------------------------------------------------------------------------------- For notices of noncompliance to_ The addressee of record is_ And_----------------------------------------------------------------------------------------------------------------(1) A refiner or other party involved in disposition of Federal The position title, department name The royalty taken in kind. and address, or individual name and refi address in the executed royalty sale ner contract; or a different position or title, department name and address, othe or individual name and address that r the refiner or other party under the part executed royalty sale contract y identifies in writing for billing must purposes; or an agent designated in noti writing to receive notices of fy noncompliance. MMS in writ ing of all addr esse e chan ges.(2) Any person required to report oil or gas removed from Federal The most recent position title, The or Indian leases to the RMP Production Accounting and Auditing department name and address, or repo System. individual name and address that RMP rter/ has in its records for the reporter/ payo payor; or an agent designated in r writing to receive notices of must noncompliance. noti fy RMP, in writ ing, of any addr esse e chan ges.(3) A lessee, designee, reporter or payor whose records are The position title, department name The subject to audit. and address, or individual name and less address the lessee, designee, ee, reporter or payor identifies in desi writing at the initiation of the gnee audit; or the most recent addressee , that the lessee, designee, reporter repo or payor specified in writing; or an rter agent designated in writing to or receive notices of noncompliance. payo r must noti fy MMS of any addr esse e chan ges.(4) A reporter reporting on the ``Report of Sales and Royalty The most recent position title, The Remittance'' (Form MMS-2014). department name and address, or less individual name and address that the ee, lessee, designee, reporter or payor desi identifies in writing; or an agent gnee designated in writing to receive , notices of noncompliance. repo rter or payo r is resp onsi ble for noti fyin g RMP in writ ing of any addr esse e chan ges.(5) A lessee, designee, reporter or payor who remits rental and The most recent position title, The bonuses from nonproducing Federal leases. department name and address, or less individual name and address ee, maintained in RMP records; or an desi agent designated in writing to gnee receive notices of noncompliance. , repo rter or payo r is resp onsi ble for noti fyin g RMP in writ ing of any addr esse e chan ges.----------------------------------------------------------------------------------------------------------------
§ 241.52 What if I correct the violation?
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§ 241.53 What if I do not correct the violation?
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§ 241.54 How may I request a hearing on the record on a Notice of Noncompliance?
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§ 241.55 Does my request for a hearing on the record affect the penalties?
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§ 241.56 May I request a hearing on the record regarding the amount of a civil penalty if I did not request a hearing on the Notice of Noncompliance?
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Penalties Without a Period To Correct
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§ 241.60 May I be subject to penalties without prior notice and an opportunity to correct?
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§ 241.61 How will MMS inform me of violations without a period to correct?
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§ 241.62 How may I request a hearing on the record on a Notice of Noncompliance regarding violations without a period to correct?
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§ 241.63 Does my request for a hearing on the record affect the penalties?
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§ 241.64 May I request a hearing on the record regarding the amount of a civil penalty if I did not request a hearing on the Notice of Noncompliance?
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General Provisions
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§ 241.70 How does MMS decide what the amount of the penalty should be?
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§ 241.71 Does the penalty affect whether I owe interest?
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§ 241.72 How will the Office of Hearings and Appeals conduct the hearing on the record?
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§ 241.73 How may I appeal the Administrative Law Judge's decision?
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§ 241.74 May I seek judicial review of the decision of the Interior Board of Land Appeals?
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§ 241.75 When must I pay the penalty?
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§ 241.76 Can MMS reduce my penalty once it is assessed?
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§ 241.77 How may MMS collect the penalty?
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Criminal Penalties
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§ 241.80 May the United States criminally prosecute me for violations under Federal and Indian oil and gas leases?
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Subpart C—Federal and Indian Oil [Reserved]
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Subpart D—Federal and Indian Gas [Reserved]
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Subpart E—Solid Minerals, General [Reserved]
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Subpart F—Coal [Reserved]
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Subpart G—Other Solid Minerals [Reserved]
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Subpart H—Geothermal [Reserved]
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Subpart I—OCS Sulfur [Reserved]
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