Code of Federal Regulations (Last Updated: May 6, 2024) |
Title 30 - Mineral Resources |
Chapter II - Bureau of Safety and Environmental Enforcement, Department of the Interior |
SubChapter B - Offshore |
Part 250 - Oil and Gas and Sulphur Operations in the Outer Continental Shelf |
Subpart N - Outer Continental Shelf Civil Penalties |
§ 250.1490 - What standards must my BOEM-specified surety instrument meet?
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Link to an amendment published at 81 FR 36151, June 6, 2016.
(a) A BOEM-specified surety instrument must be in a form specified in BOEM instructions. BSEE will give you written information and standard forms for BOEM-specified surety instrument requirements.
(b) BOEM will use a bank-rating service to determine whether a financial institution has an acceptable rating to provide a surety instrument adequate to indemnify the lessor from loss or damage.
(1) Administrative appeal bonds must be issued by a qualified surety company which the Department of the Treasury has approved.
(2) Irrevocable letters of credit or certificates of deposit must be from a financial institution acceptable to BOEM with a minimum 1-year period of coverage subject to automatic renewal up to 5 years.