Civil Penalties
Reviewing officers always review the following violations for potential civil penalties:
- violations not corrected within the period of time BSEE identifies
- violations that cause or may pose a threat of serious, irreparable, or immediate harm or damage to life, property, or the environment
Once a letter is issued to a violator assessing a proposed civil penalty, the violator has 30 days from receipt of the letter to schedule a meeting and submit information, or pay the penalty.
At the end of 30 days, the BSEE Reviewing Officer issues a decision on the amount of any final civil penalty. This decision can be appealed to the Interior Board of Land Appeals.
Currently (2017), the maximum civil penalty rate for Outer Continental Shelf Lands Act (OCSLA) violations is $42,017 per violation per day. The rate is reviewed on an annual basis.
Companies with recurring violations and/or other indications of unacceptable performance may be subject to additional enforcement actions, including suspension of operations, cancellation of leases, and/or removal of operator status.
Civil Penalties Highlight BSEE's Commitment to Personnel Safety
Regulatory violations that pose a threat of serious, irreparable, or immediate harm or damage to life are always reviewed for potential civil penalties by a BSEE Reviewing Officer. One such violation was the subject of a civil penalty case that was closed and paid during the 2nd Quarter. In July 2011 during the course of an inspection, bureau inspectors discovered two open holes or fall hazards which posed a threat to the safety of personnel on the rig. The operator paid civil penalties in the amount of $50,000. (BSEE Enforcement Newsletter, 2nd Qtr., FY 2012)
Knowledge Check Choose the best answer for the question.
7-10. Once a letter of proposed civil penalty is received, how much time does a violator have to schedule a meeting and submit information, or pay the penalty?
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