§ 585.529. Can I use a lease- or grant-specific decommissioning account to meet the financial assurance requirements related to decommissioning?
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/us/cfr/t30/s§ 585.529·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)In lieu of a surety bond, BOEM may authorize you to establish a lease-, ROW grant-, or RUE grant-specific decommissioning account in a federally insured institution. The funds may not be withdrawn from the account without our written approval.
(1)The funds must be payable to BOEM and pledged to meet your lease or grant decommissioning and site clearance obligations;
(2)You must fund the account in the amount determined by and according to the payment schedule approved by BOEM. BOEM will estimate the cost of decommissioning, including site clearance; and
(3)Subject to BOEM's approval, a decommissioning account may be funded in whole or in part during the operations period of a lease or grant.
(b)Any interest paid on the account will be treated as account funds unless we authorize in writing that any interest be paid to the depositor.
(c)We may allow you to pledge Treasury securities, payable to BOEM on demand, to satisfy your obligation to make payments into the account. Acceptable Treasury securities and their collateral value are determined in accordance with 31 CFR part 203, Collateral Margins Table (which can be found at https://www.treasurydirect.gov).
(d)We may require you to commit a specified stream of revenues as payment into the account so that the account will be fully funded, as prescribed in paragraph (a)(2) of this section. The commitment may include revenue from other operations.
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- 31 CFR 203
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§ 585.529
Can I use a lease- or grant-specific decommissioning account to meet the financial assurance requirements related to decommissioning?
Cite31 CFR 203
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