On Wednesday, New Mexico workplace safety officials levied the maximum allowable penalties of nearly $137,000 against a film production company for firearms safety violations on the set of "Rust," where actor and producer Alec Baldwin fatally shot a cinematographer in October.

The Occupational Health and Safety Bureau of New Mexico ordered Rust Movie Productions to pay $136,793 and distributed a scathing narrative of safety failures in violation of standard industry protocols, including testimony that production managers took limited or no action to address two misfires onset before the fatal shooting. Additionally, the bureau noted unheeded gun safety objections from crew members and stated that weapons specialists were not permitted to make judgments regarding additional safety training.

"What we had, based on our investigators' findings, were a series of obvious hazards to employees associated with firearm use and management's failure to address those obvious hazards," Bob Genoway, bureau chief for occupational safety, told The Associated Press.

Baldwin was pointing a gun at cinematographer Halyna Hutchins inside a small church on the outskirts of Santa Fe on Oct. 21, 2021. It went off, killing Hutchins and injuring director Joel Souza.

Baldwin told ABC News in a December interview that he was pointing the gun at Hutchins during her lesson on the New Mexico set of the Western picture when the gun went off without him pushing the trigger.

The new occupational safety study indicates that an assistant director, David Halls, handed a large-caliber revolver to Baldwin without contacting on-set weapons specialists during or after the gun was loaded. Regulators add that Halls functioned as safety coordinator, was present, and witnessed two accidental rifle discharges on set. He and other managers who were aware of the misfires took no investigative, remedial, or disciplinary action. Members of the crew expressed astonishment and dissatisfaction.

The report claims that "the Safety Coordinator was present on set but took no direct action to address safety concerns." "Management had numerous opportunities to take corrective action but decided not to. Director Joel Souza and cameraman Halyna Hutchins sustained serious injuries as a result of these failures. Halyna Hutchins died as a result of her injuries."

Baldwin's attorney, Luke Nikas, said to NBC News, "We are grateful to the New Mexico Occupational Health and Safety Bureau for conducting this investigation." We applaud the report's dismissal of Mr. Baldwin by stating unequivocally that he believed the gun contained only dummy rounds. His control over the production was confined to script revisions and creative casting.

"Mr. Baldwin had no authority over the matters that were the subject of the Bureau’s findings of violations, and we are pleased that the New Mexico authorities have clarified these critical issues," the statement added. "We are confident that the individuals identified in the report will be held accountable for this tragedy."

According to an NBC News report, a spokeswoman for Rust Movie Productions stated, "While we appreciate OSHA's time and effort in conducting its investigation, we disagree with its findings and intend to appeal." Our thoughts and prayers are with Halyna's family at this difficult time."

The state penalty applies to films with approximately $7 million. Baldwin was compensated $250,000 for his work as an actor and producer and may have invested some of that money in the production.

At least five lawsuits have been filed in connection with the incident, including one filed by Hutchins' family against Baldwin and the film's other producers for wrongful death. The lawsuit, filed on behalf of widower Matt Hutchins and his 9-year-old son, charges a "callous" disregard for on-set safety complaints.

According to James Kenney, secretary of the Environment Department, which is responsible for occupational safety, the department spent 1,500 staff hours on the investigation, combed through hundreds of papers, and conducted at least a dozen interviews with cast and crew members.

Investigators discovered that production managers imposed strict resource constraints on a small team responsible for weapon control on set and failed to address concerns about a shotgun left unattended twice.

Hannah Gutierrez Reed, the daughter of a sniper and consultant to film companies, was given lighter tasks as a props assistant after being limited to eight paid days as an armorer to oversee weapons and training. Gutierrez Reed notified management when her term as an armorer expired and was ignored.

Gutierrez Reed is named a plaintiff and a defendant in lawsuits alleging negligence in connection with the deadly shooting. Her attorney said in a statement Wednesday that the armorer "was not provided with adequate time or resources to perform her job effectively."

Additionally, safety inspectors observed that the production company failed to establish a mechanism to ensure that no live rounds of ammunition were brought on set, which violates industry safety protocols. Safety meetings were held, and however, firearms were not utilized daily as needed.

Kenney stated that the independent investigations into possible criminal charges are ongoing. The Santa Fe County sheriff's office and local prosecutors declined to comment immediately.

Kenney stated that despite the anonymity, his firm got no direct safety complaints from the cast or crew before the tragic shooting.

"This tragedy, this loss of life, could have been avoided," he said. "We want people to speak up."

Kenney was appointed in 2019 by Democratic Gov. Michelle Lujan Grisham, an ardent supporter of the film industry who shortly after taking office upped the state's cap on industry subsidies.

New Mexico faces competition from non-Hollywood production locations like Georgia, Louisiana, and New York. Film productions have flocked to New Mexico in recent years to take advantage of the state's diverse outdoor scenery, low costs, and generous state incentives, which include a rebate of between 25% and 35% of in-state spending on video production, which assists both large and small filmmakers in financing their work.