§ 550.166. If BOEM grants me a RUE, what financial assurance must I provide?
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/us/cfr/t30/s§ 550.166·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Before BOEM grants you a RUE on the OCS, you must submit or maintain financial assurance of \$500,000, which will guarantee compliance with the regulations and the terms and conditions of all RUEs you hold.
(1)You are not required to submit and maintain the financial assurance of \$500,000 pursuant to this paragraph
(a)if you furnish and maintain area-wide lease financial assurance in excess of \$500,000 pursuant to § 556.901(a) of this subchapter, provided that the area-wide lease financial assurance also guarantees compliance with all the terms and conditions of all RUEs you hold in the area.
(2)The Regional Director may reduce the amount required in this paragraph
(a)upon a determination that the reduced amount is sufficient to guarantee compliance with the regulations and the terms and conditions of all RUE grant(s) you hold.
(3)The requirements for financial assurance in §§ 556.900(d) through
(g)556.902 of this subchapter apply to the financial assurance required under paragraph
(a)of this section.
(b)If BOEM grants you a RUE that serves either an OCS lease or a State lease, the Regional Director may require supplemental financial assurance above the amount required by paragraph
(a)of this section, to ensure compliance with the obligations under your RUE grant, based on an evaluation of your ability to carry out present and future obligations on the RUE using the criteria set forth in § 556.901(d)(1) through
(3)of this subchapter. This supplemental financial assurance 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 RUE grants and with applicable BOEM and Bureau of Safety and Environmental Enforcement
(BSEE)orders.
(c)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 RUE; and/or
(3)Initiate action for cancellation of your RUE grant. \[89 FR 31589, Apr. 24, 2024\]
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§ 550.166
If BOEM grants me a RUE, what financial assurance must I provide?
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