Code of Federal Regulations (Last Updated: May 6, 2024) |
Title 30 - Mineral Resources |
Chapter V - Bureau of Ocean Energy Management, Department of the Interior |
SubChapter B - Offshore |
Part 556 - Leasing of Sulfur or Oil and Gas and Bonding Requirements in the Outer Continental Shelf |
Subpart G - Transferring All or Part of the Record Title Interest in a Lease |
§ 556.710 - What is the effect of an assignment of a lease on an assignor's liability under the lease?
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§ 556.710 What is the effect of an assignment of a lease on an assignor's liability under the lease?
If you assign your record title interest, as an assignor you remain liable for all obligations, monetary and non-monetary, that accrued in connection with your lease during the period in which you owned the record title interest, up to the date BOEM approves your assignment. BOEM's approval of the assignment does not relieve you of these accrued obligations. Even after assignment, BOEM or BSEE may require you to bring the lease into compliance if your assignee or any subsequent assignee fails to perform any obligation under the lease, to the extent the obligation accrued before approval of your assignment. Until there is a BOEM-approved assignment of interest, you, as the assignor, remain liable for the performance of all lease obligations that accrued while you held record title interest, until all such obligations are fulfilled.