The US Office of Natural Resources Revenue (ONRR) collected a $136,000 fine from Energy Resources Technology Inc. (ERT) for knowing failure to permit an audit. It cited the Houston independent for not providing requested information for an ongoing federal royalty audit of several offshore leases, the US Department of the Interior office said.
ONRR said ERT also did not respond to other requests for information, which further hampered auditing efforts. The company has paid the fine and provided the requested audit information, ONRR said on Aug. 23.
The fine followed a March “Dear Reporter” letter that ONRR sent to all federal and Indian oil and gas lessees reminding them of their record-keeping obligations under the Federal Oil and Gas Royalty Management Act. Lessees must submit reports and provide information to implement the law in addition to establishing and maintaining records, the letter said.
It said that the requirements are necessary for ONRR and any states or tribes with delegated authority to perform audits, investigations, and reviews of royalties and other remitted payments.
Contact Nick Snow at email@example.com.