Section 312 IAC 1.5-8-4 - Civil penalties for violation regarding oil and gas productionAuthority: IC 4-22-2-19.6; IC 14-10-2-1; IC 14-10-2-4; IC 14-37-3-15
Affected: IC 14-37-7-9
Sec. 4.
(a) This section applies to civil penalties imposed by the department regarding oil and gas production.(b) The civil penalties for violating an administrative requirement are as follows: (1) For violating reporting and notification requirements, as follows:(A) The civil penalty for a: (ii) second occurrence; or(iii) third occurrence; is two hundred fifty dollars ($250).(B) The civil penalty for a: (ii) fifth occurrence; or(iii) sixth occurrence; is five hundred dollars ($500).(C) The civil penalty for a seventh and each additional occurrence is seven hundred fifty dollars ($750).(2) For violating paying a required well fee, as follows:(A) The civil penalty for a first occurrence is one-third (1/3) the total well fee required to be paid.(B) The civil penalty for a second occurrence is two-thirds (2/3) the total well fee required to be paid.(C) The civil penalty for a third and each additional occurrence is the total well fee required to be paid.(c) The civil penalties for violating operating requirements are as follows: (1) For violating the basic operation and facility management requirements, as follows: (A) The civil penalty for a: (ii) second occurrence; or(iii) third occurrence; is five hundred dollars ($500).(B) The civil penalty for a: (ii) fifth occurrence; or (iii) sixth occurrence; is seven hundred fifty dollars ($750).(C) The civil penalty for a seventh and each additional occurrence is one thousand dollars ($1,000).(2) For violating maintenance requirements that may cause damage, as follows: (A) The civil penalty for a: (ii) second occurrence; or(iii) third occurrence; is five hundred dollars ($500).(B) The civil penalty for a: (ii) fifth occurrence; or (iii) sixth occurrence; is one thousand dollars ($1,000).(C) The civil penalty for a seventh and each additional occurrence is five thousand dollars ($5,000).(3) For a violation that creates harmful environmental conditions or hazardous conditions, as follows: (A) The civil penalty for a: (ii) second occurrence; or(iii) third occurrence; is one thousand dollars ($1,000).(B) The civil penalty for a: (ii) fifth occurrence; or(iii) sixth occurrence; is two thousand dollars ($2,000).(C) The civil penalty for a seventh and each additional occurrence is five thousand dollars ($5,000).(d) The civil penalties for a significant violation likely to result in environmental damage are as follows: (1) The civil penalty for the first occurrence is two thousand five hundred dollars ($2,500).(2) The civil penalty for a second occurrence is five thousand dollars ($5,000).(3) The civil penalty for a third and each additional occurrence is ten thousand dollars ($10,000).(e) The department shall consider the following mitigating factors when assessing a civil penalty under this section: (1) Actions taken by the person that receives the civil penalty under this section to abate the violation. The director of the division of reclamation may reduce the civil penalty assessed against a person under this section based on the demonstration of a good faith effort on the part of the person as follows:(A) Not more than ninety percent (90%) of the civil penalty assessed if the person abates the violation immediately or not later than twenty-five percent (25%) of the time set to abate the violation, including extensions of time.(B) Not more than eighty percent (80%) of the civil penalty assessed if the person abates the violation by at least twenty-six percent (26%) and not more than fifty percent (50%) of the time set to abate the violation.(C) Not more than fifty percent (50%) of the civil penalty assessed if the person abates the violation by at least fifty-one percent (51%) and not more than seventy-five percent (75%) of the time set to abate the violation.(D) Not more than twenty-five percent (25%) of the civil penalty assessed if the person abates the violation by at least seventy-six percent (76%) and not more than one hundred percent (100%) of the time set to abate the violation.(E) Not more than ninety percent (90%) of the civil penalty assessed if: (i) the person that receives the violation reported the violation; or(ii) an error is made in the reporting requirements.(2) The ability of the person that receives the violation to pay to abate the violation.(3) The cost to the department to enforce the violation.(4) Whether there is an economic benefit to the person that receives the violation for committing the violation.(5) Any other unanticipated factor that may arise and warrant a reduction to the civil penalty assessed for the violation.Natural Resources Commission; 312 IAC 1.5-8-4; filed 9/9/2024, 10:58 a.m.: 20241009-IR-312240163FRA