The Department of the Interior’s Bureau of Ocean Energy Management, Regulation and Enforcement (BOEM) announced today that Plains Exploration & Production Co. (NYSE:PXP) has paid nearly $900,000 in civil penalties for its failure to submit monthly production reports for energy production on Federal leases.
“We will aggressively pursue every dollar due from energy production on Federal and American Indian lands,” said BOEM Director Michael R. Bromwich. “BOEM auditors are continuing to closely examine all reports from companies to ensure that they are accurate and submitted on time, with no exceptions.”
“Failure to do so,” Bromwich said, “can and will result in substantial civil penalties.”
The BOEM issued the civil penalty to Plains after it repeatedly failed to comply with requests to submit monthly Oil and Gas Operations Reports for Pogo Producing Company, with which Plains merged in November 2007. BOEM issued a Notice of Noncompliance when Plains failed to submit the monthly reports following the merger. When Plains failed to comply with that notice, BOEM issued a Civil Penalty Notice for $838,272. Plains ultimately paid $899,200 because the civil penalties continued to accrue. The company has now submitted all the required monthly production reports.