MNeagle
30th June 2010, 07:51 AM
WASHINGTON—The Interior Department said it has fined the U.S. unit of BP PLC $5.2 million for submitting "false, inaccurate, or misleading" reports for energy production on Indian tribal lands in southwestern Colorado.
The civil penalty marks the first enforcement action by the department's Bureau of Ocean Energy Management, Regulation and Enforcement under its new director Michael Bromwich, who took office last week.
In a written statement, the Interior Department said the case is not related to the BP oil spill in the Gulf of Mexico, but rather to BP's activities on Southern Ute Indian Tribal lands in southwestern Colorado.
The department said tribal auditors found that BP reported incorrect royalty rates and prices for royalty purposes, and reported well production on leases "other than those to which the production is attributable."
The department added that BP agreed with the auditors' concerns and "repeatedly promised to correct the problems," which they attributed to errors in their automated files. But subsequent reviews by the department turned up more errors, "leading us to conclude that BP's continued submission of erroneous reports was knowing or willful," Mr. Bromwich said.
BP spokespersons couldn't immediately be reached for comment. BP has the right to challenge the civil penalty assessment through a Department of Interior hearing procedure, the department said.
link (http://online.wsj.com/article/SB10001424052748703426004575338733639862038.html?m od=rss_whats_news_us_business)
The civil penalty marks the first enforcement action by the department's Bureau of Ocean Energy Management, Regulation and Enforcement under its new director Michael Bromwich, who took office last week.
In a written statement, the Interior Department said the case is not related to the BP oil spill in the Gulf of Mexico, but rather to BP's activities on Southern Ute Indian Tribal lands in southwestern Colorado.
The department said tribal auditors found that BP reported incorrect royalty rates and prices for royalty purposes, and reported well production on leases "other than those to which the production is attributable."
The department added that BP agreed with the auditors' concerns and "repeatedly promised to correct the problems," which they attributed to errors in their automated files. But subsequent reviews by the department turned up more errors, "leading us to conclude that BP's continued submission of erroneous reports was knowing or willful," Mr. Bromwich said.
BP spokespersons couldn't immediately be reached for comment. BP has the right to challenge the civil penalty assessment through a Department of Interior hearing procedure, the department said.
link (http://online.wsj.com/article/SB10001424052748703426004575338733639862038.html?m od=rss_whats_news_us_business)