Oil and gas companies must post a bond to appeal safety penalties

The US Bureau of Safety and Environmental Enforcement (BSEE) corrected a previous rule change. Companies appealing civil penalties for safety violations must now post a bond to cover the penalty amount. This means companies cannot delay paying fines by simply filing an appeal without financial commitment.

The US government collects billions in fines from oil and gas companies for safety and environmental violations. Companies often appeal these penalties, which can delay payment for years. This rule change makes it harder to use appeals as a stalling tactic, forcing companies to put up money upfront. It shifts some of the financial risk of an appeal from the government to the company.