(a)Any person who—
(1)after due notice of violation or after such violation has been reported under subparagraph (A), fails or refuses to comply with any requirements of this chapter or any mineral leasing law, any rule or regulation thereunder, or the terms of any lease or permit issued thereunder; or
(2)fails to permit inspection authorized in section 1718 of this title or fails to notify the Secretary of any assignment under section 1712(a)(2) 11 See References in Text note below. of this title (A)the violation was discovered and reported to the Secretary or his authorized representative by the liable person and corrected within 20 days after such report or such longer time as the Secretary may agree to; or
(B)after the due notice of violation required in paragraph (1) has been given to such person by the Secretary or his authorized representative, such person has corrected the violation within 20 days of such notification or such longer time as the Secretary may agree to.
(b)If corrective action in not taken within 40 days or a longer period as the Secretary may agree to, after due notice or the report referred to in subsection (a)(1), such person shall be liable for a civil penalty of not more than $5,000 per violation for each day such violation continues, dating from the date of such notice or report.
(c)Any person who—
(1)knowingly or willfully fails to make any royalty payment by the date as specified by statute, regulation, order or terms of the lease;
(2)fails or refuses to permit lawful entry, inspection, or audit; or
(3)knowingly or willfully fails or refuses to comply with section 1712(b)(3) of this title, (d)Any person who—
(1)knowingly or willfully prepares, maintains, or submits false, inaccurate, or misleading reports, notices, affidavits, records, data, or other written information;
(2)knowingly or willfully takes or removes, transports, uses or diverts any oil or gas from any lease site without having valid legal authority to do so; or
(3)purchases, accepts, sells, transports, or conveys to another, any oil or gas knowing or having reason to know that such oil or gas was stolen or unlawfully removed or diverted,
(e)No penalty under this section shall be assessed until the person charged with a violation has been given the opportunity for a hearing on the record.
(f)The amount of any penalty under this section, as finally determined 22 So in original. Probably should be followed by a comma. may be deducted from any sums owing by the United States to the person charged.
(g)On a case-by-case basis the Secretary may compromise or reduce civil penalties under this section.
(h)Notice under this 33 So in original. subsection (a) shall be by personal service by an authorized representative of the Secretary or by registered mail. Any person may, in the manner prescribed by the Secretary, designate a representative to receive any notice under this subsection.
(i)In determining the amount of such penalty, or whether it should be remitted or reduced, and in what amount, the Secretary shall state on the record the reasons for his determinations.
(j)Any person who has requested a hearing in accordance with subsection (e) within the time the Secretary has prescribed for such a hearing and who is aggrieved by a final order of the Secretary under this section may seek review of such order in the United States district court for the judicial district in which the violation allegedly took place. Review by the district court shall be only on the administrative record and not de novo. Such an action shall be barred unless filed within 90 days after the Secretary’s final order.
(k)If any person fails to pay an assessment of a civil penalty under this chapter—
(1)after the order making the assessment has become a final order and if such person does not file a petition for judicial review of the order in accordance with subsection (j), or
(2)after a court in an action brought under subsection (j) has entered a final judgment in favor of the Secretary,
(l)No person shall be liable for a civil penalty under subsection (a) or (b) for failure to pay any rental for any lease automatically terminated pursuant to section 188 of this title. 