The Bureau of Ocean Energy Management, Regulation and Enforcement, a new agency of the Interior Department, has fined BP America $5.2 million for underreporting royalties owed to the Southern Ute Tribe of Colorado.

The agency said BP submitted "false, inaccurate, or misleading" reports for years. "It is simply unacceptable for companies to repeatedly misreport production, particularly when it interferes with the auditing process," said BOEM Director Michael R. Bromwich in a press release.

Tribal auditors first noticed the problem and reported it to BP in August 2007, according to the press release. The tribe worked closely with Minerals Revenue Management program to document the underpayments.

"I appreciate the MRM's recognition of its trust responsibility to the tribe by assessing civil penalties when other means have failed to attain correct and accurate reporting," Chairman Matthew J. Box said in the press release.

BP can challenge the fine.

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Press Release: Interior Issues $5.2 M Civil Penalty to BP America for False Reporting on Tribal Lands (DOI 6/30)