83 



16 



1 Secretary may assess a penalty of 10 percent of the 



2 amount of that underreporting. 



3 (3) If there is a substantial underreporting of royalty 



4 owed on production from a claim for any production 



5 month by any person responsible for paying the royalty, 



6 the Secretary may assess an additional penalty of 10 per- 



7 cent of the amount of that underreporting. 



8 (4) For the purposes of this subsection, the term 



9 "underreporting" means the difference between the roy- 



10 alty on the value of the production which should have been 



11 reported and the royalty on the value of the production 



12 which was reported, if the value which should have been 



13 reported is greater than the value which was reported. An 



14 underreporting constitutes a "substantial underreporting" 



15 if such difference exceeds 10 percent of the royalty on the 



16 value of production which should have been reported. 



17 (5) The Secretary shall not impose the assessment 



18 provided in paragraphs (2) or (3) of this subsection if the 



19 person liable for royalty payments under this section cor- 



20 rects the underreporting before the date such person re- 



21 ceives notice from the Secretary that an underreporting 



22 may have occurred, or before 90 days after the date of 



23 the enactment of this section, whichever is later. 



24 (6) The Secretary shall waive any portion of an as- 



25 sessment under paragraph (2) or (3) of this subsection 



