2010 Tennessee Code
Title 60 - Oil And Gas
Chapter 1 - Production of Oil and Gas
Part 4 - Violations
60-1-401 - Violations Penalties Notice Appeals Hearing.

60-1-401. Violations Penalties Notice Appeals Hearing.

(a)  The oil and gas board through the supervisor shall have the authority to assess monetary penalties as provided in subsections (c)-(e) for any violation of this chapter, rules and regulations, or any order adopted by the board. In making such assessment, the board shall give due consideration to the appropriateness of the penalty with respect to the size of the business of the operator charged, the gravity of the violation, the good faith of the operator, and the operator's history of previous violations.

(b)  If, upon an inspection or investigation, the supervisor or any of the supervisor's authorized personnel shall determine that any operator is not in compliance with any standard or regulation or rule or order of the board promulgated by the board pursuant to this chapter, the supervisor shall with reasonable promptness and in no event later than six (6) months following the inspection, issue to the operator by certified mail a written citation that states the nature and, if appropriate, the location of the violation, including a reference to the provision of the chapter and the regulation alleged to have been violated. In addition, the citation shall fix a reasonable time for abatement of the violation. If the issuing supervisor has reason to believe that such violation, or the failure to abate such violation, should result in the assessment of a penalty under subsections (c)-(e), the citation may so state.

(c)  Any operator who has received a citation for a violation of this chapter, rules and regulations or order of the board, promulgated pursuant to this chapter and has failed to correct such violation within the period of correction of this citation, shall be assessed a penalty of up to one thousand dollars ($1,000) for each day the violation exists. The period of correction may be suspended or lengthened by the assessing party upon a showing by the operator of a good faith effort to comply with the correction requirements and that failure to comply with the correction requirements is due to factors beyond the operator's reasonable control.

(d)  Any operator who has received a citation for a violation of this chapter, or rules and regulations or order of the board, and such violation is specifically determined not to be of a serious nature, may be assessed a penalty of up to one thousand dollars ($1,000) for each such violation.

(e)  Any operator who willfully or repeatedly violates the requirements of this chapter, or rules and regulations, or order of the board promulgated pursuant to this chapter may be assessed a penalty of up to ten thousand dollars ($10,000) for each violation.

(f)  Penalties provided for by subsections (c)-(e) shall be imposed in the manner hereinafter provided. Whenever the oil and gas board, through the supervisor, has determined that such a penalty should be assessed against an operator, a written notice and assessment of a penalty shall be issued to the operator by certified mail, return receipt requested, stating the amount of the penalty to be assessed and the reason therefor (which may be done by reference to citations issued prior to or simultaneously with such notification).

(g)  Any citation or notice and assessment of a penalty issued pursuant to this section shall inform the operator of the operator's right to appeal such citation or assessment of a penalty to the oil and gas board. Any such citation or assessment of a penalty shall become final twenty (20) days after the receipt of such citation or notice and assessment of penalty by the operator unless the operator, within the period of twenty (20) days, shall file a written notice of appeal with the supervisor.

(h)  If the operator files an appeal of such citation or assessment of a penalty as provided by subsection (g), the proceedings on such appeal shall be conducted in accordance with the provisions of the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, and the rules of procedure of the oil and gas board, governing the conduct of contested cases. The board shall afford the operator an opportunity for a hearing, after reasonable notice. The board shall thereafter render a final order, in accordance with the provisions of § 4-5-314, affirming, modifying or vacating the supervisor's citation or assessment of a penalty. A final order rendered pursuant to this section shall be effective upon its entry unless a later effective date shall be stated therein. A petition to stay the effective date of a final order may be filed under the provisions of § 4-5-316. A petition for reconsideration of a final order may be filed under the provisions of § 4-5-317. Judicial review of a final order may be sought by filing a petition for review under the provisions of § 4-5-322.

(i)  [Deleted by 2007 amendment.]

[Acts 1978, ch. 791, § 1; T.C.A., § 60-113; Acts 1984, ch. 700, §§ 1, 2; 2007, ch. 362, § 8.]