1. (a) We may assess a penalty for a violation identified in paragraph (b) of this section without prior notice or first giving you an opportunity to correct the violation. We will inform you of a violation without a period to correct by issuing an ILCP explaining:

   1. (1) What the violation is.
   2. (2) The amount of the civil penalty. The civil penalty for such a violation begins running on the day it was committed.

2. (b) ONRR may assess a civil penalty of up to:

   1. (1) $31,252 per day, per violation for each day that the violation continues if you:

      1. (i) Knowingly or willfully fail to make any royalty payment by the date specified by statute, regulation, order, or a term of the lease.
      2. (ii) Fail or refuse to permit lawful entry, inspection, or audit, including refusal to keep, maintain, or produce documents.
   2. (2) $78,134 per day, per violation for each day that the violation continues if you knowingly or willfully prepare, maintain, or submit a false, inaccurate, or misleading report, notice, affidavit, record, data, or any other written information.

3. (c) We may use any information as evidence that you knowingly or willfully committed a violation, including:

   1. (1) The act and failure to act of your employee or agent.
   2. (2) An email indicating your concurrence with an issue.
   3. (3) An order that you did not appeal or an order, NONC, or ILCP for which no further appeal is available.

   4. (4) Any written or oral communication, identifying a violation which:

      1. (i) You acknowledge as true and fail to correct.
      2. (ii) You fail to or cannot further appeal and fail to correct.
      3. (iii) You correct, but you subsequently commit the same violation.

[81 FR 50316, Aug. 1, 2016, as amended at 82 FR 18860, Apr. 24, 2017; 83 FR 2909, Jan. 22, 2018; 84 FR 8418, Mar. 8, 2019; 85 FR 7223, Feb. 7, 2020; 86 FR 7810, Feb. 2, 2021; 87 FR 1673, Jan. 12, 2022; 88 FR 2522, Jan. 17, 2023; 89 FR 3886, Jan. 22, 2024; 90 FR 1880, Jan. 10, 2025]