Certificate of clearance

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27-510. Certificate of clearance

A. The sale, purchase or acquisition, or the transportation, refining, processing or handling of illegal oil or gas or illegal product is unlawful, but until the commissioner provides for certificates of clearance or some other method affording an opportunity to determine whether a contemplated transaction involves illegal oil or gas or illegal product, no penalty shall be imposed except as provided by subsection B.

B. Penalties may be imposed for each transaction prohibited by this section when the person committing the prohibited transaction knows that illegal oil or gas or illegal product is involved in the transaction or when the person could have known or determined such fact by the exercise of reasonable diligence or from facts within his knowledge.

C. Penalties provided in this article shall apply, regardless of lack of actual notice or knowledge, to any sale, purchase or acquisition, and to transportation, refining, sale, purchase or handling in any way without a certificate of clearance of illegal oil and gas or illegal product, where administrative provision is made for identifying the character of the commodity as to its legality.


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