H.R. 10255: Penalties for Polluters Act

This bill would increase the civil penalties for certain violations involving federal mineral leasing, oil and gas royalty management, offshore drilling, and oil spill rules. In plain terms, it would make the fines much larger for people or companies that break these laws.

What changes the bill makes

• It raises the maximum penalty under the Mineral Leasing Act from $500,000 to $2.7 million for certain violations.
• It adds a rule requiring the Interior Secretary to adjust that maximum penalty each year for inflation.
• It raises another Mineral Leasing Act penalty from $100,000 to $500,000.
• It increases several penalties under the Federal Oil and Gas Royalty Management Act of 1982, including raising amounts from:
  • $500 to $3,000
  • $5,000 to $30,000
  • $10,000 to $65,000
  • $25,000 to $160,000
• It raises a different penalty under that law from $50,000 to $320,000, and also requires annual inflation adjustments for that penalty.
• It rewrites the civil penalty rules under the Outer Continental Shelf Lands Act so that:
  • the general daily penalty can be up to $100,000 per day for violations,
  • if the violation threatens harm to people, wildlife, property, mineral deposits, or the marine/coastal environment, the penalty can be up to $360,000 per day,
  • and another penalty amount is increased from $100,000 to $1 million, with annual inflation adjustments.
• It raises a penalty under the Oil Pollution Act of 1990 from $25,000 to $120,000.

Penalty Revenue Reinvestment Fund

The bill would create a new Treasury account called the Penalty Revenue Reinvestment Fund. Money collected above the old penalty limits would go into this fund instead of being handled the usual way.

• 50% of that money would go to states, tribes, and local governments that the Interior Secretary says were harmed by the violation.
• 50% would go to federal offices that handle revenue collection, safety enforcement, and land management to support ongoing enforcement and compliance work.

Who would be affected

The bill would mainly affect companies and individuals involved in federal oil, gas, offshore drilling, and mineral leasing activities, especially those subject to Interior Department oversight and enforcement. It does not create a new program for the public generally; it mainly changes penalties and how some penalty money is used.

Relevant Companies

• XOM — Exxon Mobil could be affected if it faced higher penalties for violations tied to federal oil and gas leasing, royalty rules, or offshore operations.
• CVX — Chevron could be affected in the same way through its oil and gas production and offshore activities.
• SLB — SLB provides oilfield services and could be indirectly affected if customers face higher compliance costs or if its work is tied to regulated federal operations.
• HAL — Halliburton could be indirectly affected through oil and gas drilling and related federal compliance exposure.
• BKR — Baker Hughes could be indirectly affected through equipment and services used in federally regulated oil and gas operations.
• EOG — EOG Resources could be affected by increased penalties related to federal oil and gas leasing and royalty compliance.
• COP — ConocoPhillips could be affected by higher enforcement costs and penalties in federal leasing and offshore-related activities.
• APA — APA Corporation could be affected if violations occur in federally regulated oil and gas operations.