[Code of Federal Regulations]
[Title 43, Volume 2]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 43CFR3163.1]

[Page 430-431]
 
                    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 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

[[Page 431]]

$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]