[Code of Federal Regulations]

[Title 43, Volume 2]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 43CFR3163.1]



[Page 442-443]

 

                    TITLE 43--PUBLIC LANDS: INTERIOR

 

    CHAPTER II--BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR

 

PART 3160_ONSHORE OIL AND GAS OPERATIONS--Table of Contents

 

         Subpart 3163_Noncompliance, Assessments, and Penalties

 

Sec.  3163.1  Remedies for acts of noncompliance.





    (a) Whenever an operating rights owner or operator fails or refuses 

to comply with the regulations in this part, the terms of any lease or 

permit, or the requirements of any notice or order, the authorized 

officer shall notify the operating rights owner or operator, as 

appropriate, in writing of the violation or default. Such notice shall 

also set forth a reasonable abatement period:

    (1) If the violation or default is not corrected within the time 

allowed, the authorized officer may subject the operating rights owner 

or operator, as appropriate, to an assessment of not more than $500 per 

day for each day nonabatement continues where the violation or default 

is deemed a major violation;

    (2) Where noncompliance involves a minor violation, the authorized 

officer may subject the operating rights owner or operator, as 

appropriate, to an assessment of $250 for failure to abate the violation 

or correct the default within the time allowed;

    (3) When necessary for compliance, or where operations have been 

commenced without approval, or where



[[Page 443]]



continued operations could result in immediate, substantial, and adverse 

impacts on public health and safety, the environment, production 

accountability, or royalty income, the authorized officer may shut down 

operations. Immediate shut-in action may be taken where operations are 

initiated and conducted without prior approval, or where continued 

operations could result in immediate, substantial, and adverse impacts 

on public health and safety, the environment, production accountability, 

or royalty income. Shut-in actions for other situations may be taken 

only after due notice, in writing, has been given;

    (4) When necessary for compliance, the authorized officer may enter 

upon a lease and perform, or have performed, at the sole risk and 

expense of the operator, operations that the operator fails to perform 

when directed in writing by the authorized officer. Appropriate charges 

shall include the actual cost of performance, plus an additional 25 

percent of such amount to compensate the United States for 

administrative costs. The operator shall be provided with a reasonable 

period of time either to take corrective action or to show why the lease 

should not be entered;

    (5) Continued noncompliance may subject the lease to cancellation 

and forfeiture under the bond. The operator shall be provided with a 

reasonable period of time either to take corrective action or to show 

why the lease should not be recommended for cancellation;

    (6) Where actual loss or damage has occurred as a result of the 

operator's noncompliance, the actual amount of such loss or damage shall 

be charged to the operator.

    (b) Certain instances of noncompliance are violations of such a 

serious nature as to warrant the imposition of immediate assessments 

upon discovery. Upon discovery the following violations shall result in 

immediate assessments, which may be retroactive, in the following 

specified amounts per violation:

    (1) For failure to install blowout preventer or other equivalent 

well control equipment, as required by the approved drilling plan, $500 

per day for each day that the violation existed, including days the 

violation existed prior to discovery, not to exceed $5,000;

    (2) For drilling without approval or for causing surface disturbance 

on Federal or Indian surface preliminary to drilling without approval, 

$500 per day for each day that the violation existed, including days the 

violation existed prior to discovery, not to exceed $5,000;

    (3) For failure to obtain approval of a plan for well abandonment 

prior to commencement of such operations, $500.

    (c) Assessments under paragraph (a)(1) of this section shall not 

exceed $1,000 per day, per operating rights owner or operator, per 

lease. Assessments under paragraph (a)(2) of this section shall not 

exceed a total of $500 per operating rights owner or operator, per 

lease, per inspection.

    (d) Continued noncompliance shall subject the operating rights owner 

or operator, as appropriate, to penalties described in Sec.  3163.2 of 

this title.

    (e) On a case-by-case basis, the State Director may compromise or 

reduce assessments under this section. In compromising or reducing the 

amount of the assessment, the State Director shall state in the record 

the reasons for such determination.



[52 FR 5393, Feb. 20, 1987; 52 FR 10225, Mar. 31, 1987, as amended at 53 

FR 17364, May 16, 1988; 53 FR 22847, June 17, 1988]