(The following is a reformatted version of a press release
issued by The Department of the Interior’s Office of Natural
Resources Revenue and received via e-mail. The release was
confirmed by the sender.)
April 11, 2013
ONRR Issues $780,300 Civil Penalty to Dynamic Offshore
Company cited for maintenance of inaccurate royalty reports
DENVER - The Department of the Interior’s Office of Natural
Resources Revenue (ONRR) announced today that it has assessed
Dynamic Offshore Resources, LLC, a $780,300 civil penalty for
“knowing or willful maintenance of inaccurate gas volume
information” in its royalty reports.
ONRR first alerted Dynamic to the incorrect information on Oct.
17, 2011, in an Order to Report and Pay Additional Royalties,
identifying misreported gas volumes and underpaid royalties of
$298,374.29 for three offshore leases from October 2006 through
December 2010. The Order required correction of the data and
remittance of the underpaid royalties by Nov. 21, 2011. Despite
a two-month extension, Dynamic failed to resolve the
underpayment until ONRR referred it to the U.S. Department of
the Treasury for collection in July 2012.
“We are fully committed to collecting every dollar due to the
American taxpayer for the development of our domestic energy
resources,” said ONRR Director Greg Gould. “While Dynamic made
the required payment, it took no action to correct the
inaccurate data in ONRR’s database and that is unacceptable.”
Gould added that Dynamic employees told ONRR auditors that
“system integration” issues were causing the delay in correcting
the erroneous data. The company promised to submit corrections
by Sept. 30, 2012, but again failed to comply. Compliance was
achieved Nov. 21, 2012, only after ONRR Office of Enforcement
investigators addressed additional inquiries to Dynamic.
The $780,300 civil penalty accrued from Oct. 1 through Nov. 20,
2012, for knowingly or willfully maintaining incorrect royalty
reports. The company - headquartered in Houston, Texas - may
request a hearing on the civil penalty.
The Office of Natural Resources Revenue, part of the
Department’s Office of Policy, Management and Budget, is
responsible for collecting and disbursing revenues from energy
production that occurs onshore on Federal and American Indian
lands, and offshore in the Outer Continental Shelf. During
Fiscal Year 2012, the agency disbursed more than $12.15 billion
to states, American Indian Tribes and individual Indian mineral
owners, and to various Federal accounts, including the U.S.
Treasury, the Land and Water Conservation Fund, and the
News Media Contact:
Patrick Etchart, 303-231-3162
Press spacebar to pause and continue. Press esc to stop.