The U.S. Bureau of Safety and Environmental Enforcement (BSEE) has announced revisions to the regulations for maximum daily civil penalties (MDCP) that may be imposed on producers for violations under the Federal Oil and Gas Royalty Management Act (FOGRMA).
The BSEE noted that the revised regulations cross reference the parallel regulations of the Office of Natural Resources Revenue (ONRR), 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 are automatically reflected, the BSEE highlighted. No new costs or burdens are imposed by the revised regulation.
“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,” Janine Marie Tobias, the BSEE’s national enforcement program manager, said in an organization statement posted on the BSEE’s website on Monday.
The 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. The organization 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 provisions of FOGRMA.
According to its website, the mission of the BSEE is to promote safety, protect the environment, and conserve resources offshore through vigorous regulatory oversight and enforcement. The organization is headed by an appointed director who oversees a staff of more than 850 federal employees. The BSEE’s headquarters are located in Washington D.C., and Sterling, Virginia.
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