30 U.S.C. § 1719 — Civil penalties

(a) A person who, after required notice or a report under subparagraph (A), fails or refuses to follow this chapter, a mineral-leasing law, its rule or regulation, or a lease or permit; or who fails to allow an inspection under section 1718 or notify the Secretary of an assignment under section 1712(a)(2), is liable for up to $500 per violation for each day it continues, starting on the notice or report date. The penalty may not be applied for the first kind of violation if the person reported and corrected it within 20 days, or a longer period the Secretary allows, or if, after the Secretary's notice, the person corrected it within that period. (b) If corrective action is not taken within 40 days after the notice or report, or within a longer period the Secretary allows, the person is liable for up to $5,000 per violation for each continuing day, counted from the notice or report.

(c) A person who knowingly or willfully fails to make a royalty payment by the date required by law, regulation, order, or lease; fails or refuses to allow lawful entry, inspection, or audit; or knowingly or willfully fails or refuses to comply with section 1712(b)(3), is liable for up to $10,000 per violation for each continuing day.

(d) A person is liable for up to $25,000 per violation for each continuing day if the person knowingly or willfully prepares, keeps, or submits false, inaccurate, or misleading written information; knowingly or willfully takes, removes, transports, uses, or diverts oil or gas from a lease site without valid legal authority; or buys, accepts, sells, transports, or conveys oil or gas while knowing or having reason to know it was stolen or unlawfully removed or diverted.

(e) No penalty may be assessed until the accused person has an opportunity for a hearing on the record. (f) Once finally determined, a penalty may be deducted from money the United States owes the person. (g) The Secretary may compromise or reduce a civil penalty case by case. (h) Notice under (a) must be personally served by an authorized representative or sent by registered mail. A person may designate a representative, as the Secretary prescribes, to receive notice. (i) In deciding the penalty amount or whether and how much to remit or reduce, the Secretary must state the reasons on the record.

(j) A person who timely requested the hearing and is harmed by the Secretary's final order may seek review in the United States district court for the district where the alleged violation occurred. Review is limited to the administrative record and is not a new trial. The action must be filed within 90 days after the final order. (k) If a person does not pay a civil-penalty assessment after the assessment order becomes final and no review petition is filed, or after a court enters final judgment for the Secretary in a review action, the court has jurisdiction to award the assessment plus interest from the end of the 90-day period. The judgment must order payment. (l) A person is not liable under (a) or (b) for failing to pay rent on a lease that automatically ended under section 188.