Interior agency seeks $3.4M from Wyoming gas developer it says hasn't reported production

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CHEYENNE, Wyoming — A federal agency says it is seeking a $3.4 million penalty against a Wyoming coal-bed methane developer for failing to report production on federal leases in Wyoming.

The Interior Department's Office of Natural Resources Revenue announced the penalty against Gillette-based High Plains Gas on Monday. The agency oversees revenue collection from federal oil and gas leases and says the penalty applies to federal leases in Wyoming.

The same agency announced in June it was seeking a $533,000 penalty against a subsidiary of High Plains Gas. A message seeking comment from High Plains Gas wasn't immediately returned Monday.

Wyoming oil and gas regulators recently ordered High Plains Gas to post $6.8 million in additional bond payments or face closure of more than 2,300 coal-bed methane wells in the state.

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