§ 585.534. When may BOEM cancel my financial assurance?

397 words·~2 min read·/us/cfr/t30/s§ 585.534·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)When your lease or grant ends, your sureties remain responsible, and BOEM will cancel your financial assurance as shown in the following table: ::: {width="100%"} ::: {.gpotbl_div} Financial assurance Your financial assurance will not be cancelled until . . .

(1)Financial assurance for commercial leases submitted under § 585.516(a)(1) and for grants or limited leases submitted under §§ 585.520 and 585.521 ``` ``` Seven years after all operations and activities under the lease or grant cease, including decommissioning and site clearance, or a longer period as necessary to complete any appeals or judicial litigation related to your financial assurance obligation. BOEM may reduce or cancel your financial assurance or return some or all of your security if BOEM determines that the full amount is no longer needed.

(2)Supplemental financial assurance for commercial leases submitted under § 585.516 and for grants or limited leases submitted under §§ 585.520 and 585.521 ``` ```

(i)The lease or grant expires or is terminated and BOEM determines you have met your secured obligations, unless BOEM:

(A)Determines that the future potential liability resulting from any undetected problem is greater than the amount of your lease-specific financial assurance; and

(B)Notifies the provider of the supplemental financial assurance that BOEM will wait 7 years before cancelling all or a part of the supplemental financial assurance (or longer period as necessary to complete any appeals or judicial litigation related to your secured obligations); or

(ii)At any time when:

(A)BOEM determines, in its discretion, that you no longer need to provide the supplemental financial assurance;

(B)The operations for which the supplemental financial assurance was provided were cancelled before accrual of any decommissioning obligation; or

(C)Cancellation of the supplemental financial assurance is appropriate because, under the regulations in this part, BOEM determines such financial assurance never should have been required. ::: :::

(b)BOEM may require reinstatement of your financial assurance as if no cancellation had occurred if:

(1)A person makes a payment under the lease or grant, and the payment is rescinded or must be repaid by the recipient because the person making the payment is insolvent, bankrupt, subject to reorganization, or placed in receivership; or

(2)The responsible party represents to BOEM that it has discharged its obligations under the lease or grant, and the representation was materially false when the financial assurance was cancelled.

Connections10 cite this

Cited by 10 sections · top 5

CFR

Citation graph

cites case law

§ 585.534

When may BOEM cancel my financial assurance?

Fed. Reg.×6

C.F.R.×4

Cites 0Cited by 10 across 2 sources