§ 550.1011. Financial assurance requirements for pipeline right-of-way (ROW) grant holders.
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/us/cfr/t30/s§ 550.1011·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Except as provided in paragraph
(b)of this section, when you apply for, attempt to assign, or are the holder of a pipeline right-of-way
(ROW)grant, you must furnish and maintain \$300,000 of area-wide financial assurance that guarantees compliance with the regulations and the terms and conditions of all the pipeline ROW grants you hold in an OCS area as defined in § 556.900(b) of this subchapter. The requirement to furnish and maintain area-wide financial assurance for a pipeline ROW grant is separate and distinct from the requirement to provide financial assurance for a lease or right-of-use and easement (RUE).
(b)The requirement to furnish and maintain area-wide pipeline ROW financial assurance under paragraph
(a)of this section may be satisfied if your operator or a co-grant holder provides such financial assurance in the required amount that guarantees compliance with the regulations and the terms and conditions of the grant.
(c)The requirements for lease financial assurance in §§ 556.900(d) through
(g)and 556.902 of this subchapter apply to the area-wide financial assurance required in paragraph
(a)of this section.
(d)The Regional Director, using the criteria set forth in § 556.901(d)(1) through
(3)of this subchapter, will evaluate your financial ability to carry out present and future obligations, and as a result, may require supplemental financial assurance (i.e., above the amount required by paragraph
(a)of this section) to ensure compliance with the obligations under your pipeline right-of-way grant.
(e)The supplemental financial assurance required under paragraph
(d)of this section must:
(1)Meet the requirements of §§ 556.900(d) through
(g)and 556.902 of this subchapter, and
(2)Cover costs and liabilities for compliance with the obligations of your ROW grants and with applicable BOEM and BSEE orders.
(f)If you fail to replace any deficient financial assurance upon demand or fail to provide supplemental financial assurance upon demand, the Regional Director may:
(1)Assess penalties under subpart N of this part;
(2)Request BSEE to suspend operations on your pipeline ROW; and/or
(3)Initiate action for forfeiture of your pipeline ROW grant in accordance with § 250.1013 of this title. \[89 FR 31590, Apr. 24, 2024\]
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§ 550.1011
Financial assurance requirements for pipeline right-of-way (ROW) grant holders.
Fed. Reg.×30
C.F.R.×1
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