The Office of Natural Resources Revenue (ONRR) has issued a final rule to adjust its maximum civil monetary penalties for inflation experienced from October 2019 to October 2020. This adjustment is required by the Federal Civil Penalties Inflation Adjustment Act and affects penalties related to violations under the Federal Oil and Gas Royalty Management Act. The new rates are based on the Consumer Price Index and are effective immediately as of February 2, 2021. The rulemaking complies with various executive orders and acts, including the Regulatory Flexibility Act and the Paperwork Reduction Act.
Simple Explanation
The office in charge of collecting money when companies use natural resources has decided to make their fines bigger because the cost of things has gone up a little bit since last year. They use these new fine amounts right away and follow the rules set by the government for doing so.