I'm reading the rules and I just want to make sure I'm reading this right. It says that if there are 2 consecutive encroachment penalties, it will be marked off 10 yards?

I'm just asking because I haven't seen this enforced before.

depends on your local rules that the league is playing. We have a couple flag leagues around here and they have different rules.

This one is in the 03/04 NIRSA Flag and Touch rule book. Just curious.

Under NIRSA, you're right.

B encroaches, A captain has the penalty option for 5 yards (down remains the same either way as it is a dead ball penalty). If B encroaches before the next snap (i.e., don't enforce this 10 minutes later), then A's captain has the option to accept or decline a 10 yard penalty.

As a note, A can take the 10 yard penalty even if they declined the 5 yard penalty. I doubt you'll see this often. If you do, either (a) A just got the ball at their 14-yard line (the purpose of the 10-yard penalty) or (b) your LJ should be a bit more lenient on an inexperienced defensive line.