§ 585.521. Do my financial assurance requirements change as activities progress on my limited lease or grant?
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/us/cfr/t30/s§ 585.521·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)BOEM may require you to increase or allow you to decrease the amount of your financial assurance as activities progress on your limited lease or grant based on the estimated costs to meet all accrued lease or grant obligations.
(b)The total amount of the financial assurance must be no less than the amount required to meet your limited lease and grant obligations, including:
(1)The projected amount of rent and other payments due to the United States over the next 12 months;
(2)Any past due rent and other payments;
(3)Other monetary obligations; and
(4)The estimated cost of facility decommissioning as required by 30 CFR part 285, subpart I.
(c)If BOEM proposes adjusting the amount of your financial assurance to ensure your limited lease and grant obligations are met, BOEM will notify you of the proposed adjustment and will provide you an opportunity to object.
(d)You may submit a written request to BOEM to reduce the amount of your financial assurance if your proposed amount is not less than the sum of your obligations listed in paragraph
(b)of this section. BOEM may approve your request in its discretion.
(e)You may satisfy the requirement for increased financial assurance on your limited lease or grant by increasing the amount of your existing bond or by providing a supplemental bond or other financial assurance.
(1)The supplemental bond or other financial assurance must meet the requirements specified in §§ 585.525 through 585.529.
(2)If you propose to incrementally fund your financial assurance, BOEM must approve the schedule for providing the appropriate financial assurance.
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- 30 CFR 285
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§ 585.521
Do my financial assurance requirements change as activities progress on my limited lease or grant?
Fed. Reg.×1
Cite30 CFR 285
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