IN THE UNITED STATES COURT OF APPEALS

FOR THE FIFTH CIRCUIT

No. 18-20827

STATOIL USA E&P, INCORPORATED,

Plaintiff - Appellant

v.

UNITED STATES DEPARTMENT OF INTERIOR; DAVID BERNHARDT, 

SECRETARY, U.S. DEPARTMENT OF THE INTERIOR; OFFICE OF 

NATURAL RESOURCES REVENUE; GREGORY GOULD, in his official 

capacity as Director of the Office of Natural Resources Revenue,

Defendants - Appellees

Appeal from the United States District Court

for the Southern District of Texas

USDC 4:17-CV-3664

Before KING, JONES, and DENNIS, Circuit Judges.

PER CURIAM:*

Statoil, an oil and gas company, pays the federal government royalties 

in order to develop oil and gas reserves on federal land. These royalties are 

based on the sales that Statoil reports. After multiple warnings, the

Department of the Interior assessed a civil penalty against Statoil under 30 

* Pursuant to 5TH CIR. R. 47.5, the court has determined that this opinion should not 

be published and is not precedent except under the limited circumstances set forth in 5TH 

CIR. R. 47.5.4.

United States Court of Appeals

Fifth Circuit

FILED

January 29, 2020

Lyle W. Cayce

Clerk

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U.S.C. § 1719(d) for the knowing or willful maintenance of false information 

related to reported gas sales. Statoil contends that this penalty is invalid 

because, as a matter of law, Statoil cannot “maintain” false information if the 

reports are physically stored on a government server. The district court 

disagreed, finding that the plain meaning of “maintains” includes keeping 

information in a state of validity. For the following reasons, we AFFIRM.

I.

A.

The federal government offers leases to private corporations that develop 

national oil and gas reserves on both federal land and the Outer Continental 

Shelf. 30 U.S.C. § 226; 43 U.S.C. § 1337. In return, these corporations pay the 

government royalties based on the value of the oil or gas extracted. 30 U.S.C. 

§ 226(b)(1); 43 U.S.C. § 1337(a)(1).

Congress enacted the Federal Oil and Gas Royalty Management Act of 

1982 (FOGRMA), Pub. L. No. 97-451, 96 Stat. 2448 (codified as amended at 30 

U.S.C. §§ 1701-1757), “to require the development of enforcement practices 

that ensure the prompt and proper collection and disbursement of oil and gas 

revenues owed to the United States.” 30 U.S.C. § 1701(b)(3). Consequently, 

FOGRMA established an “accounting and auditing system” with the 

“capability to accurately determine oil and gas royalties . . . and to collect and 

account for such amounts in a timely manner.” 30 U.S.C. § 1711(a).1 The 

statute requires lessees to “establish and maintain any records, make any 

reports, and provide any information” that the Department of Interior (DOI)

“may, by rule, reasonably require.” 30 U.S.C. § 1713. FOGRMA authorizes DOI

1 Before FOGRMA, the “system of accounting” for royalties was “archaic and 

inadequate,” 30 U.S.C. § 1701(a)(2), and the Department of the Interior could not verify 

lessees’ production and sales data because “lease account records [were] so unreliable,” S. 

Rep. No. 97-512, at 9 (1982) (“Senate Report”). The industry was “essentially on an honor 

system.” Id.; accord H.R. Rep. No. 97-859, at 15 (1982).

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to request information reasonably required to determine compliance. See, e.g.,

30 U.S.C. § 1711(c)(1) (authorizing audits and reconciliations regarding the 

lessee’s “business practices and recordkeeping systems”).

Within DOI, the Office of Natural Resources Revenue (ONRR) operates 

the online database that tracks oil and gas production and royalty information, 

see 30 C.F.R. §§ 1210.54, 1210.104, and implements FOGRMA’s enforcement 

scheme. § 1201.100. On a monthly basis, lessees must submit the volume of oil 

and gas produced, their sales, and the royalties remitted. 30 C.F.R. §§ 1210.52-

.61, 1210.101-.106. In most cases, this information must be submitted online 

using designated forms, § 1210.54; § 1210.102, and reporters that discover 

errors must “file an accurate and complete amended report within 30 days,” 

which can also be completed online.2 30 C.F.R. § 1210.30.

FOGRMA contains a tiered penalty scheme for violations. 30 U.S.C. 

§ 1719(a)-(d). Section 1719(a) is the lowest tier and penalizes general violations 

such as “fail[ing] or refus[ing] to comply with any requirements of this chapter 

or any mineral leasing law, any rule or regulation thereunder, or the terms of 

any lease or permit issued thereunder.” § 1719(a)(1). Lessees are given 20 days 

to cure § 1719(a) violations, but if they do not, they are subject to a “penalty of 

up to $500 per day for each day such violation continues.” § 1719(a)(2).

Relatedly, § 1719(b) permits penalties of up to $5000 per day if a § 1719(a)

violation continues for 40 days without correction. Neither § 1719(a) nor 

§ 1719(b) contains a mens rea standard.

3

By contrast, § 1719(c) and § 1719(d) penalize conduct that is committed 

“knowingly or willfully.” Section 1719(c) permits penalties of up to $10,000 per 

2 Reporting instructions may be accessed in the ONRR handbook. Office of Nat. Res. 

Revenue, Minerals Revenue Reporter Handbook (release 3.0, 2015), https://www.onrr.gov

/reportpay/handbooks/; see also § 1210.56(a).

3 The Senate Report specifies that these subsections were meant to penalize 

“inadvertent” violations. S. Rep. No. 97-512, at 17.

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day for knowing or willful failures to make a royalty payment; to permit entry, 

inspection, or audit; or to notify DOI regarding the start of production. Section 

1719(d)(1), the provision relevant to this appeal, permits penalties of up to 

$25,000 per day for “[a]ny person who . . . knowingly or willfully prepares, 

maintains, or submits false, inaccurate, or misleading reports, notices, 

affidavits, records, data, or other written information.” § 1719(d)(1). Unlike 

§ 1719(a) and § 1719(b), § 1719(c) and § 1719(d) do not contain a period to cure 

violations, and violations under § 1719(d) can result in criminal liability. 30 

U.S.C. § 1720.

4

B.

Statoil holds a federal offshore gas lease.5 In August 2010, ONRR found 

“significant volume variances” when comparing Statoil’s reported volumes 

with information provided by the gas-plant operators. Consequently, ONRR 

sent Statoil an order to correct its reported monthly gas production volumes 

from April 2006 to December 2007. This order instructed Statoil to fix its 

reports within 30 days and noted that failure to comply could result in

penalties.

ONRR contacted Statoil again in January 2011, and yet again in May 

2011. Statoil acknowledged that its reports were inaccurate but did not correct 

them. In August 2011, ONRR informed Statoil that penalties would accrue,

4 The Senate Report indicates that the statute was intended to “distinguish between 

those violations which ought to lead to a very large civil penalty and those for which liability 

should be reduced. . . . The Committee attempted to achieve this balance by providing a 

requirement of notice of violation and a lower civil penalty limit for certain violations of the 

Act and a steeply rising civil penalty liability for serious violations knowingly or willfully 

committed.” S. Rep. No. 97-512, at 17.

5 In the interest of avoiding confusion, this opinion refers to the parties by their 

current designations. Statoil’s predecessor-in-interest was Hydro Gulf of Mexico, LLC.

ONRR’s predecessor was the Bureau of Ocean Energy Management, Regulation, and 

Enforcement. 75 Fed. Reg. 61,051, 61,052 (Oct. 4, 2010).

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and that Statoil would be subject to penalties for a “knowing or willful failure 

to maintain accurate information.” Statoil still did not correct its reports.

In February 2012, approximately 18 months after the first notice, ONRR 

sent a notice of civil penalty to Statoil. It noted that Statoil failed to correct 

reporting inaccuracies and that, every time it was contacted, Statoil failed 

either to comply or to respond. Pursuant to 30 U.S.C. § 1719(d), ONRR stated

that it was assessing a civil penalty for a “knowing or willful maintenance of 

incorrect information on gas sales volumes reported.” ONRR assessed a 

penalty of $50 per day, per violation, dating back to January 2011, when Statoil 

first acknowledged that its reports were inaccurate, for a total of $406,350.

As relevant to this appeal, Statoil moved for summary judgment before 

an administrative law judge. Statoil argued that, as a matter of law, it could 

not knowingly or willfully “maintain[]” inaccurate information under § 1719(d) 

because Statoil does not “maintain” reports in ONRR’s electronic database. The 

ALJ ruled against Statoil, and the Interior Board of Land Appeals affirmed.

On appeal, the district court also ruled against Statoil, concluding that that 

the plain meaning of “maintains” in § 1719(d) includes knowingly or willfully 

keeping false information in ONRR’s online database. This appeal followed.

II.

A decision granting summary judgment is reviewed de novo. Century 

Sur. Co. v. Seidel, 893 F.3d 328, 332 (5th Cir. 2018). Questions of statutory 

interpretation are also reviewed de novo. United States v. Lauderdale County, 

914 F.3d 960, 964 (5th Cir. 2019).

“[S]tatutory interpretation begins and, if possible, ends with the 

language of the statute. When the language is plain, [the court] must enforce 

the statute’s plain meaning, unless absurd.” Id. (internal quotation marks and 

citations omitted). “Dictionaries are a principal source for ascertaining the 

ordinary meaning of statutory language.” Thompson v. Goetzmann, 337 F.3d 

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489, 497 n.20 (5th Cir. 2003). Nonetheless, the court may also “rely on the 

conventional standards of statutory interpretation—i.e., text, structure, and 

the overall statutory scheme” to “interpret[] the statute as a symmetrical and 

coherent regulatory scheme.” Sw. Elec. Power Co. v. EPA, 920 F.3d 999, 1023 

(5th Cir. 2019) (internal quotation marks and citations omitted). Because the 

plain meaning of “maintains” includes keeping reports in a state of validity, we 

conclude that § 1719(d)(1) requires lessees to correct reports they know are 

false, inaccurate, or misleading, even when the government electronically 

stores them.

A.

We first begin with the statute’s plain meaning. As noted, § 1719(d)(1) 

authorizes penalties if “[a]ny person . . . knowingly or willfully prepares, 

maintains, or submits false, inaccurate, or misleading reports, notices, 

affidavits, records, data, or other written information.” § 1719(d)(1).

Dictionaries define the word “maintain” as both to keep physical possession,

see, e.g., Maintain, Black’s Law Dictionary (10th ed. 2014), and “to keep in a 

state of repair, efficiency, or validity,” Webster’s Third New International 

Dictionary 1362 (1976); see also id. (“to affirm in or as if in argument”).

The parties dispute whether the plain meaning of “maintains” in 

§ 1719(d) includes reports that are updated online by lessees, such as Statoil, 

but are physically stored on government servers. Statoil argues that physical 

possession is necessary because no ordinary person would think that reports 

are “maintained by the lessee” once submitted to the government. The 

government asserts that the plain meaning of “maintains” includes keeping 

reports in a state of validity, especially because the statute was enacted to 

ensure that royalties are accurately collected.

In other statutory contexts, this court has recognized that “maintaining” 

an oil record book encompasses “ensur[ing] that [the] oil record book is 

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accurate.” United States v. Jho, 534 F.3d 398, 403 (5th Cir. 2008). Moreover, 

the Second Circuit similarly concluded that “[i]n the context of a regulation 

imposing record-keeping requirements, the duty to ‘maintain’ plainly means a 

duty to maintain a reasonably complete and accurate record.” United States v. 

Ionia Mgmt. S.A., 555 F.3d 303, 309 (2d Cir. 2009) (emphasis in original).

Jho is particularly illuminating. In Jho, the defendants argued that they 

did not violate their duty—under regulations applicable to foreign-flagged 

vessels only while in U.S. waters—to “maintain” an oil record book, because 

they made inaccurate entries only while in international waters. 534 F.3d at 

403. The Fifth Circuit rejected that argument, reasoning that the defendants’ 

duty to maintain the book while in U.S. waters “impos[ed] a duty . . . to ensure 

that [the] oil record book is accurate (or at least not knowingly inaccurate).” Id.

Statoil attempts to distinguish Jho by stating that it “only concerned 

where the obligation to ‘maintain’ the oil record book applied,” as opposed to

which entity had “physical possession” of the book. But in Jho, there was no 

question that the defendants’ duty applied only in U.S. waters. The operative 

issue was the extent of the obligations encompassed by the word “maintain.”

In the context of a statute that “impos[es] record-keeping requirements,” 

the meaning of “maintain” applies more plainly to ensuring that reports are

“reasonably complete and accurate” than to assigning responsibilities based on 

which entity physically possesses the record. See Ionia, 555 F.3d at 309. In the 

context of an online record-keeping system, a distinction based on physical 

possession makes even less sense—online information is usually created and 

updated by entities that do not physically possess the electronic data.6

6 The American Petroleum Institute’s amicus brief notes that the original meaning of 

“maintain” cannot include electronic storage because, at the time of the statute’s passage, 

lessees submitted monthly paper reports. Nonetheless, Congress contemplated (and 

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As the district court astutely observed, the plain meaning of “maintain”

may refer to upkeep even if another entity physically possesses the object.

“[T]wo entities can ‘maintain’ the same database in different respects. . . . A 

student ‘maintains’ stellar grades, even though it is her school that stores the 

physical or electronic records of her grades. A teenager might ‘maintain’ his 

car, even though his parents maintain the garage where it is parked.” Statoil 

USA E&P Inc. v. U.S. Dep’t of the Interior, 352 F. Supp. 3d 748, 759 (S.D. Tex. 

2018). Accordingly, the plain meaning of “maintains” as applied to § 1719(d)(1) 

requires lessees to correct reports that they know are false, inaccurate, or 

misleading.

7

B.

Because § 1719(d)(1)’s “language is plain, we must enforce the statute’s 

plain meaning, unless absurd.” Lauderdale, 914 F.3d at 964 (internal 

quotation marks and citation omitted). Nonetheless, in the interest of being 

thorough, we evaluate Statoil’s claim that the government’s reading of 

§ 1719(d)(1) is inconsistent with the statute’s overall structure and regulatory 

scheme. None of these arguments compel us to depart from the statute’s plain 

meaning.

Statoil argues that the government’s reading of “maintains” in § 1719(d) 

is inconsistent with the use of the word “maintain” in § 1712 and § 1713, which 

refers to documents that the lessee stores internally. Section 1719(d) also

refers to both “reports” and “affidavits,” however, which are documents that 

would usually not be stored internally by the lessee. Other sections of the 

preferred) an electronic system at the time of enactment. H.R. Rep. No. 97-859, at 28 (“The 

Committee expects the Secretary to complete the development of a computerized fiscal and 

production accounting system . . . .”).

7 Even if § 1719(d)(1) was ambiguous, the agency’s interpretation is reasonable and 

would therefore warrant Chevron deference. Cf. Clean Water Action v. EPA, 936 F.3d 308, 

316 n.14 (5th Cir. 2019).

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statute refer to both “reports” and “affidavits” as documents that are provided

to the government. See, e.g., § 1702(17) (mentioning “previously filed 

report[s]”); § 1712(a) (describing who may “submit reports”); § 1717(a)(1) 

(referring to the submission of “affidavits”). Moreover, other sections of the 

statute use “maintain” in a manner that suggests validity rather than mere

physical possession. See, e.g., § 1701(b)(2) (stating Congress’s intent to

“implement and maintain a royalty management system for oil and gas 

leases”); § 1701(b)(5) (utilizing “the capabilities of the States and Indian tribes 

in developing and maintaining” a royalty management system); § 1716(2) 

(requiring independent contractors to “maintain a bond commensurate” with 

the amount of their potential liability).

Statoil’s interpretation of § 1719(d) would also lead to bizarre results. It 

would impose no obligation under § 1719(d) for a company to correct a false 

affidavit unless the lessee physically possesses it, and it would permit the 

sanction only of a lessee’s inaccurate internal reports. Such an interpretation 

would therefore mean that the statute imposes the harshest penalties for 

inaccurate internal reports while requiring lighter sanctions for certain 

inaccurate reports that the government physically stores—and therefore is 

more likely to rely on. Not only would this be nonsensical, it would be inimical 

to the establishment of an “accounting and auditing system” with the 

“capability to accurately determine oil and gas royalties” owed by private 

lessees. § 1711(a).

Statoil also asserts that because § 1719(a) and § 1719(b) explicitly govern 

failures to correct false reports, § 1719(d) should be interpreted to punish only 

deceptive acts, not the knowing failure to correct false reports. As the district 

court noted, this interpretation would create an “extratextual, heightened 

mental state requirement” that is disconnected from the text’s “knowing[] or 

willful[]” mental state requirement. Statoil, 352 F. Supp. 3d at 762. Both 

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§ 1719(a) and § 1719(b) specify lower penalties for conduct without a requisite 

mental state, whereas the text of § 1719(c) and § 1719(d) specifies higher 

penalties for violations that are “knowingly or willfully” performed.8 The text 

also indicates that overlap among these subsections was contemplated. For 

example, § 1719(c) provides high-level penalties for the knowing or willful

“failure” to pay a royalty or permit an inspection, even though those failures 

would be prohibited under § 1719(a) and § 1719(b) as well.

Last, Statoil contends that DOI’s application of § 1719(d) violates 

principles of fair notice because it has not been applied in over three decades. 

Given the facts below, this question is not properly before this court. Statoil 

had actual notice that its reports were inaccurate, and this defense was waived 

below.9 Moreover, § 1719(d) is “reasonably clear” that Statoil’s conduct was 

prohibited even if it was not deliberately fraudulent, United States v. Lanier, 

520 U.S. 259, 267 (1997). In addition, the government’s interpretation is not 

“an about-face [that] flatly contradicts the agency’s earlier, contemporaneous 

interpretation,” United States v. Moss, 872 F.3d 304, 315 (5th Cir. 2017)

(internal quotation marks omitted), because the government has not 

previously represented that § 1719(d) would not apply to conduct like Statoil’s. 

Rather, the government notes § 1719(d) was applied for the first time as a 

result of the “unusually recalcitrant nature of Statoil’s conduct.”

8 While we need not rely on legislative history, this penalty scheme aligns with

Congress’s “attempt[] to achieve . . . balance” between the “need to deter violations” and a 

desire to minimize liability for “relatively minor or inadvertent violations.” S. Rep. No. 97-

512, at 17.

9 Statoil argues that the government’s reading would automatically confer knowledge, 

and therefore liability, on lessees once the government sends the lessee a notice of violation. 

As the district court observed, the notice “only gives a reporter knowledge that the 

Government believes the reporter’s information on file is inaccurate.” Statoil, 352 F. Supp. 

3d at 764 n.57. A reporter may nonetheless still believe, in good faith, that its reports are 

accurate or may have yet to form an opinion. Id. Here, Statoil acknowledged that its reports 

were inaccurate long before § 1719(d) was applied.

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IV.

For the foregoing reasons, we AFFIRM the judgment of the district court.

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