30 CFR Part 550 — Oil and Gas and Sulfur Operations in the Outer Continental Shelf

PART 550—OIL AND GAS AND SULFUR OPERATIONS IN THE OUTER CONTINENTAL SHELF Authority: 30 U.S.C. 1751; 31 U.S.C. 9701; 43 U.S.C. 1334. Source: 76 FR 64623, Oct. 18, 2011, unless otherwise noted. Editorial Note: Nomenclature changes to part 550 appear at 90 FR 24071, June 6, 2025. Subpart A—General Authority and Definition of Terms § 550.101 Authority and applicability. The Secretary of the Interior (Secretary) authorized the Bureau of Ocean Energy Management (BOEM) to regulate oil, gas, and sulfur exploration, development, and production operations on the Outer Continental Shelf (OCS). Under the Secretary's authority, the BOEM Director requires that all operations: (a) Be conducted according to the OCS Lands Act (OCSLA), the regulations in this part, BOEM orders, the lease or right-of-way, and other applicable laws, regulations, and amendments; and (b) Conform to sound conservation practice to preserve, protect, and develop mineral resources of the OCS to: (1) Make resources available to meet the Nation's energy needs; (2) Balance orderly energy resource development with protection of the human, marine, and coastal environments; (3) Ensure the public receives a fair and equitable return on the resources of the OCS; (4) Preserve and maintain free enterprise competition; and (5) Minimize or eliminate conflicts between the exploration, development, and production of oil and natural gas and the recovery of other resources. [76 FR 64623, Oct. 18, 2011, as amended at 89 FR 31585, Apr. 24, 2024] § 550.102 What does this part do? (a) This part contains the regulations of the BOEM Offshore program that govern oil, gas, and sulfur exploration, development, and production operations on the OCS. When you conduct operations on the OCS, you must submit requests, applications, and notices, or provide supplemental information for BOEM approval. (b) The following table of general references shows where to look for information about these processes. Table—Where To Find Information for Conducting Operations For information about Refer to (1) Applications for permit to drill 30 CFR 250, subpart D. (2) Development and Production Plans (DPP) 30 CFR 550, subpart B. (3) Downhole commingling 30 CFR 250, subpart K. (4) Exploration Plans (EP) 30 CFR 550, subpart B. (5) Flaring 30 CFR 250, subpart K. (6) Gas measurement 30 CFR 250, subpart L. (7) Off-lease geological and geophysical permits 30 CFR 551. (8) Oil spill financial responsibility coverage 30 CFR 553. (9) Oil and gas production safety systems 30 CFR 250, subpart H. (10) Oil spill response plans 30 CFR 254. (11) Oil and gas well-completion operations 30 CFR 250, subpart E. (12) Oil and gas well-workover operations 30 CFR 250, subpart F. (13) Decommissioning Activities 30 CFR 250, subpart Q. (14) Platforms and structures 30 CFR 250, subpart I. (15) Pipelines and Pipeline Rights-of-Way 30 CFR 250, subpart J and 30 CFR 550, subpart J. (16) Sulfur operations 30 CFR 250, subpart P. (17) Training 30 CFR 250, subpart O. (18) Unitization 30 CFR 250, subpart M. [76 FR 64623, Oct. 18, 2011, as amended at 89 FR 31585, Apr. 24, 2024] § 550.103 Where can I find more information about the requirements in this part? BOEM may issue Notices to Lessees and Operators (NTLs) that clarify or provide more detail about certain regulatory requirements. NTLs may also outline what information you must provide, as required by regulation, in your various submissions to BOEM. [89 FR 31586, Apr. 24, 2024] § 550.104 How may I appeal a decision made under BOEM regulations? To appeal orders or decisions issued under BOEM regulations in 30 CFR parts 550 to 582, follow the procedures in 30 CFR part 590. § 550.105 Definitions. Terms used in this part will have the meanings given in the Act and as defined in this section: Act et seq. Affected State (1) The laws of which are declared, under section 4(a)(2) of the Act, to be the law of the United States for the portion of the OCS on which such activity is, or is proposed to be, conducted; (2) Which is, or is proposed to be, directly connected by transportation facilities to any artificial island or installation or other device permanently or temporarily attached to the seabed; (3) Which is receiving, or according to the proposed activity, will receive oil for processing, refining, or transshipment that was extracted from the OCS and transported directly to such State by means of vessels or by a combination of means including vessels; (4) Which is designated by the Secretary as a State in which there is a substantial probability of significant impact on or damage to the coastal, marine, or human environment, or a State in which there will be significant changes in the social, governmental, or economic infrastructure, resulting from the exploration, development, and production of oil and gas anywhere on the OCS; or (5) In which the Secretary finds that because of such activity there is, or will be, a significant risk of serious damage, due to factors such as prevailing winds and currents to the marine or coastal environment in the event of any oil spill, blowout, or release of oil or gas from vessels, pipelines, or other transshipment facilities. Analyzed geological information Ancillary activities (1) Conduct to obtain data and information to ensure proper exploration or development of your lease or unit; and (2) Can conduct without BOEM approval of an application or permit. Archaeological interest Archaeological resource Arctic OCS http://www.boem.gov/Oil-and-Gas-Energy-Program/Leasing/Five-Year-Program/2012-2017/Program-Area-Maps/index.aspx Arctic OCS conditions Assign Attainment area Best available and safest technology (BAST) Best available control technology (BACT) Coastal environment Coastal zone Competitive reservoir Correlative rights Criteria air pollutant Data Departures Development Development geological and geophysical (G&G) activities Director District Manager Eastern Gulf of America Emission offsets Enhanced recovery operations Existing facility, Exploration (1) Geophysical and geological (G&G) surveys using magnetic, gravity, seismic reflection, seismic refraction, gas sniffers, coring, or other systems to detect or imply the presence of oil, gas, or sulfur; and (2) Any drilling conducted for the purpose of searching for commercial quantities of oil, gas, and sulfur, including the drilling of any additional well needed to delineate any reservoir to enable the lessee to decide whether to proceed with development and production. Facility, i.e., Financial assurance Flaring Gas reservoir Gas-well completion Geological and geophysical (G&G) explorations Governor H2S absent (1) Drilling, logging, coring, testing, or producing operations have confirmed the absence of H2S in concentrations that could potentially result in atmospheric concentrations of 20 ppm or more of H2S; or (2) Drilling in the surrounding areas and correlation of geological and seismic data with equivalent stratigraphic units have confirmed an absence of H2S throughout the area to be drilled. H2S present H2S unknown Human environment Interpreted geological information Interpreted geophysical information Lease Lease term pipelines Lessee Major Federal action i.e., Marine environment Material remains Maximum efficient rate (MER) Maximum production rate (MPR) Minerals Natural resources Nonattainment area Nonsensitive reservoir Oil reservoir Oil reservoir with an associated gas cap Oil-well completion Operating rights Operator Outer Continental Shelf (OCS) Person Pipelines Processed geological or geophysical information Production Production areas e.g., Projected emissions Prospect Regional Director Regional Supervisor Right-of-Use and Easement (RUE) Right-of-way (ROW) pipelines (1) The boundaries of a single lease or unit, but are not owned and operated by a lessee or operator of that lease or unit; (2) The boundaries of contiguous (not cornering) leases that do not have a common lessee or operator; (3) The boundaries of contiguous (not cornering) leases that have a common lessee or operator but are not owned and operated by that common lessee or operator; or (4) An unleased block(s). Sensitive reservoir Significant archaeological resource Suspension Transfer Venting Volatile organic compound (VOC) Waste of oil, gas, or sulfur (1) The physical waste of oil, gas, or sulfur; (2) The inefficient, excessive, or improper use, or the unnecessary dissipation of reservoir energy; (3) The locating, spacing, drilling, equipping, operating, or producing of any oil, gas, or sulfur well(s) in a manner that causes or tends to cause a reduction in the quantity of oil, gas, or sulfur ultimately recoverable under prudent and proper operations or that causes or tends to cause unnecessary or excessive surface loss or destruction of oil or gas; or (4) The inefficient storage of oil. Welding Wellbay Well-completion operations Well-control fluid Western Gulf of America Workover operations You, [89 FR 31586, Apr. 24, 2024, as amended at 89 FR 71182, Oct. 3, 2024; 90 FR 15532, Apr. 14, 2025] Performance Standards § 550.115 How do I determine well producibility? You must follow the procedures in this section to determine well producibility if your well is not in the GOA. If your well is in the GOA you must follow the procedures in either this section or in § 550.116 of this subpart. (a) You must write to the Regional Supervisor asking for permission to determine producibility. (b) You must either: (1) Allow the Regional Supervisor to witness each test that you conduct under this section; or (2) Receive the Regional Supervisor prior approval so that you can submit either test data with your affidavit or third party test data. (c) If the well is an oil well, you must conduct a production test that lasts at least 2 hours after flow stabilizes. (d) If the well is a gas well, you must conduct a deliverability test that lasts at least 2 hours after flow stabilizes, or a four-point back pressure test. § 550.116 How do I determine producibility if my well is in the Gulf of America? If your well is in the GOA, you must follow either the procedures in § 550.115 of this subpart or the procedures in this section to determine producibility. (a) You must write to the Regional Supervisor asking for permission to determine producibility. (b) You must provide or make available to the Regional Supervisor, as requested, the following log, core, analyses, and test criteria that BOEM will consider collectively: (1) A log showing sufficient porosity in the producible section. (2) Sidewall cores and core analyses that show that the section is capable of producing oil or gas. (3) Wireline formation test and/or mud-logging analyses that show that the section is capable of producing oil or gas. (4) A resistivity or induction electric log of the well showing a minimum of 15 feet (true vertical thickness except for horizontal wells) of producible sand in one section. (c) No section that you count as producible under paragraph (b)(4) of this section may include any interval that appears to be water saturated. (d) Each section you count as producible under paragraph (b)(4) of this section must exhibit: (1) A minimum true resistivity ratio of the producible section to the nearest clean or water-bearing sand of at least 5:1; and (2) One of the following: (i) Electrical spontaneous potential exceeding 20-negative millivolts beyond the shale baseline; or (ii) Gamma ray log deflection of at least 70 percent of the maximum gamma ray deflection in the nearest clean water-bearing sand—if mud conditions prevent a 20-negative millivolt reading beyond the shale baseline. § 550.117 How does a determination of well producibility affect royalty status? A determination of well producibility invokes minimum royalty status on the lease as provided in 30 CFR 1202.53. § 550.118 [Reserved] § 550.119 Will BOEM approve subsurface gas storage? The Regional Supervisor may authorize subsurface storage of gas on the OCS, on and off-lease, for later commercial benefit. The Regional Supervisor may authorize subsurface storage of gas on the OCS, off-lease, for later commercial benefit. To receive approval you must: (a) Show that the subsurface storage of gas will not result in undue interference with operations under existing leases; and (b) Sign a storage agreement that includes the required payment of a storage fee or rental. § 550.120 What standards will BOEM use to regulate leases, rights-of-use and easement, and rights-of-way? BOEM will regulate all activities under a lease, a right-of-use and easement, or a right-of-way to: (a) Promote the orderly exploration, development, and production of mineral resources; (b) Prevent injury or loss of life; (c) Prevent damage to or waste of any natural resource, property, or the environment; and (d) Ensure cooperation and consultation with affected States, local governments, other interested parties, and relevant Federal agencies. [81 FR 18152, Mar. 30, 2016] § 550.121 What must I do to protect health, safety, property, and the environment? The Director may require additional measures to ensure the use of Best Available and Safest Technology (BAST) as identified by BSEE: (a) To avoid the failure of equipment that would have a significant effect on safety, health, or the environment; (b) If it is economically feasible; and (c) If the incremental benefits justify the incremental costs. [81 FR 18152, Mar. 30, 2016] § 550.122 What effect does subsurface storage have on the lease term? If you use a lease area for subsurface storage of gas, it does not affect the continuance or expiration of the lease. § 550.123 Will BOEM allow gas storage on unleased lands? You may not store gas on unleased lands unless the Regional Supervisor approves a right-of-use and easement for that purpose, under §§ 550.160 through 550.166 of this subpart. Fees § 550.125 Service fees. (a) The table in this paragraph (a) shows the fees that you must pay to BOEM for the services listed. The fees will be adjusted periodically according to the Implicit Price Deflator for Gross Domestic Product by publication of a document in the Federal Register. Federal Register Service Fee Table Service—processing of the following: Fee amount 30 CFR citation (1) Change in Designation of Operator $230 § 550.143(d). (2) Right-of-Use and Easement for State lessee $3,601 § 550.165. (3) [Reserved] (4) Exploration Plan (EP) $4,823 for each surface location; no fee for revisions § 550.211(d). (5) Development and Production Plan (DPP) or Development Operations Coordination Document (DOCD) $5,565 for each well proposed; no fee for revisions § 550.241(e). (6) [Reserved] (7) Conservation Information Document $35,914 § 550.296(a). (b) Payment of the fees listed in paragraph (a) of this section must accompany the submission of the document for approval or be sent to an office identified by the Regional Director. Once a fee is paid, it is nonrefundable, even if an application or other request is withdrawn. If your application is returned to you as incomplete, you are not required to submit a new fee when you submit the amended application. (c) Verbal approvals are occasionally given in special circumstances. Any action that will be considered a verbal permit approval requires either a paper permit application to follow the verbal approval or an electronic application submittal within 72 hours. Payment must be made with the completed paper or electronic application. [76 FR 64623, Oct. 18, 2011, as amended at 87 FR 52445, Aug. 26, 2022; 89 FR 70493, Aug. 30, 2024] § 550.126 Electronic payment instructions. You must file all payments electronically through Pay.gov. Pay.gov Pay.gov https://www.pay.gov/paygov/. (a) [Reserved] (b) You must use credit card or automated clearing house (ACH) payments through the Pay.gov Pay.gov [76 FR 64623, Oct. 18, 2011, as amended at 80 FR 57096, Sept. 22, 2015] Inspection of Operations § 550.130 [Reserved] Disqualification § 550.135 What will BOEM do if my operating performance is unacceptable? If your operating performance is unacceptable, BOEM may disapprove or revoke your designation as operator on a single facility or multiple facilities. We will give you adequate notice and opportunity for a review by BOEM officials before imposing a disqualification. § 550.136 How will BOEM determine if my performance is unacceptable? In determining if your operating performance is unacceptable, BOEM will consider, individually or collectively: (a)-(b) [Reserved] (c) Incidents of noncompliance; (d) Civil penalties; (e) Failure to adhere to OCS lease obligations; or (f) Any other relevant factors. Special Types of Approvals § 550.140 When will I receive an oral approval? When you apply for BOEM approval of any activity, we normally give you a written decision. The following table shows circumstances under which we may give an oral approval. When you . . . We may . . . And . . . (a) Request approval orally, Give you an oral approval, You must then confirm the oral request by sending us a written request within 72 hours. (b) Request approval in writing, Give you an oral approval if quick action is needed, We will send you a written approval afterward. It will include any conditions that we place on the oral approval. § 550.141 May I ever use alternate procedures or equipment? You may use alternate procedures or equipment after receiving approval as described in this section. (a) Any alternate procedures or equipment that you propose to use must provide a level of safety and environmental protection that equals or surpasses current BOEM requirements. (b) You must receive the Regional Supervisor's written approval before you can use alternate procedures or equipment. (c) To receive approval, you must either submit information or give an oral presentation to the appropriate Regional Supervisor. Your presentation must describe the site-specific application(s), performance characteristics, and safety features of the proposed procedure or equipment. § 550.142 How do I receive approval for departures? We may approve departures to the operating requirements. You may apply for a departure by writing to the Regional Supervisor. § 550.143 How do I designate an operator? (a) You must provide the Regional Supervisor an executed Designation of Operator form (Form BOEM-1123) unless you are the only lessee and are the only person conducting lease operations. When there is more than one lessee, each lessee must submit the Designation of Operator form and the Regional Supervisor must approve the designation before the designated operator may begin operations on the leasehold. (b) This designation is authority for the designated operator to act on your behalf and to fulfill your obligations under the Act, the lease, and the regulations in this part. (c) You, or your designated operator, must immediately provide the Regional Supervisor a written notification of any change of address. (d) If you change the designated operator on your lease, you must pay the service fee listed in § 550.125 of this subpart with your request for a change in designation of operator. Should there be multiple lessees, all designation of operator forms must be collected by one lessee and submitted to BOEM in a single submittal, which is subject to only one filing fee. § 550.144 How do I designate a new operator when a designation of operator terminates? (a) When a Designation of Operator terminates, the Regional Supervisor must approve a new designated operator before you may continue operations. Each lessee must submit a new executed Designation of Operator form. (b) If your Designation of Operator is terminated, or a controversy develops between you and your designated operator, you and your designated operator must protect the lessor's interests. § 550.146 How do I designate an agent or a local agent? (a) You or your designated operator may designate for the Regional Supervisor's approval, or the Regional Director may require you to designate an agent empowered to fulfill your obligations under the Act, the lease, or the regulations in this part. (b) You or your designated operator may designate for the Regional Supervisor's approval a local agent empowered to receive notices and submit requests, applications, notices, or supplemental information. [76 FR 64623, Oct. 18, 2011. Redesignated at 81 FR 18152, Mar. 30, 2016] § 550.147 Who is responsible for fulfilling leasehold obligations? (a) When you are not the sole lessee, you and your co-lessee(s) are jointly and severally responsible for fulfilling your obligations under the provisions of 30 CFR parts 250 through 282 and 30 CFR parts 550 through 582 unless otherwise provided in these regulations. (b) If your designated operator fails to fulfill any of your obligations under 30 CFR parts 250 through 282 and 30 CFR parts 550 through 582, the Regional Supervisor may require you or any or all of your co-lessees to fulfill those obligations or other operational obligations under the Act, the lease, or the regulations. (c) Whenever the regulations in 30 CFR parts 250 through 282 and 30 CFR parts 550 through 582 require the lessee to meet a requirement or perform an action, the lessee, operator (if one has been designated), and the person actually performing the activity to which the requirement applies are jointly and severally responsible for complying with the regulation. [76 FR 64623, Oct. 18, 2011. Redesignated at 81 FR 18152, Mar. 30, 2016] Right-of-Use and Easement § 550.160 When will BOEM grant me a right-of-use and easement (RUE), and what requirements must I meet? (a) A RUE is required to construct, secure to the seafloor, use, modify, or maintain platforms, seafloor production equipment, artificial islands, facilities, installations, and/or other devices at an OCS site other than an OCS lease you own, that are: (1) Permanently or temporarily attached to the seabed; and (2) Used for conducting exploration, development, and production activities or other operations on or off lease; or (3) Used for other purposes approved by BOEM. (b) You must exercise the RUE according to the terms of the grant and the regulations in this part. (c) You must meet the qualification requirements at §§ 556.400 through 556.402 of this subchapter and the applicable financial assurance requirements in this section and part 556, subpart I of this subchapter. (d) If you apply for a RUE on a leased area, you must notify the lessee and give her/him an opportunity to comment on your application; and (e) You must receive BOEM approval for all platforms, seafloor production equipment, artificial islands, facilities, installations, and/or other devices permanently or temporarily attached to the seabed. (f) You must pay a rental amount as required by paragraph (g) of this section if: (1) You obtain a RUE after January 12, 2004; or (2) You ask BOEM to modify your RUE to change the footprint of the associated platform, seafloor production equipment, artificial island, facility, installation, and/or device. (g) If you meet either of the conditions in paragraph (f) of this section, you must pay a rental amount to BOEM as shown in the following table: If . . . Then . . . (1) Your right-of-use and easement site is located in water depths of less than 200 meters; You must pay a rental of $5 per acre per year with a minimum of $450 per year. The area subject to annual rental includes the areal extent of anchor chains, pipeline risers, and other equipment associated with the platform, artificial island, installation or device. (2) Your right-of-use and easement site is located in water depths of 200 meters or greater; You must pay a rental of $7.50 per acre per year with a minimum of $675 per year. The area subject to annual rental includes the areal extent of anchor chains, pipeline risers, and other equipment associated with the platform, artificial island, or installation or device. (h) You may make the rental payments required by paragraph (g)(1) and (g)(2) of this section on an annual basis, for a 5-year period, or for multiples of 5 years. You must make the first payment electronically through Pay.gov Pay.gov (i) Late payments. [76 FR 64623, Oct. 18, 2011, as amended at 89 FR 31589, Apr. 24, 2024] § 550.161 What else must I submit with my application? With your application, you must describe the proposed use giving: (a) Details of the proposed uses and activities including access needs and special rights of use that you may need; (b) A description of all facilities for which you are seeking authorization; (c) A map or plat describing primary and alternate project locations; and (d) A schedule for constructing any new facilities, drilling or completing any wells, anticipated production rates, and productive life of existing production facilities. § 550.162 May I continue my right-of-use and easement after the termination of any lease on which it is situated? If your right-of-use and easement is on a lease, you may continue to exercise the right-of-use and easement after the lease on which it is situated terminates. You must only use the right-of-use and easement for the purpose that the grant specifies. All future lessees of that portion of the OCS on which your right-of-use and easement is situated must continue to recognize the right-of-use and easement for the purpose that the grant specifies. § 550.163 If I have a State lease, will BOEM grant me a right-of-use and easement? (a) BOEM may grant a lessee of a State lease located adjacent to or accessible from the OCS a right-of-use and easement on the OCS. (b) BOEM will only grant a right-of-use and easement under this paragraph to enable a State lessee to conduct and maintain a device that is permanently or temporarily attached to the seabed ( i.e., § 550.164 If I have a State lease, what conditions apply for a right-of-use and easement? (a) A right-of-use and easement granted under the heading of “Right-of-use and easement” in this subpart is subject to BOEM regulations, 30 CFR parts 550 through 582, BSEE regulations, 30 CFR parts 250 through 282, and any terms and conditions that the BOEM Regional Director or BSEE Regional Director prescribes. (b) For the whole or fraction of the first calendar year, and annually after that, you must pay to BOEM, in advance, an annual rental payment. § 550.165 If I have a State lease, what fees do I have to pay for a right-of-use and easement? When you apply for a right-of-use and easement, you must pay: (a) A nonrefundable filing fee as specified in § 550.125; and (b) The first year's rental as specified in § 550.160(g). § 550.166 If BOEM grants me a RUE, what financial assurance must I provide? (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] § 550.167 How may I obtain or assign my interest in a RUE? (a) To obtain a RUE or request an assignment of an interest in a RUE, the applicant or assignee must file an application and provide the information contained in § 550.161 if a change in uses is planned and must obtain BOEM's approval. (b) An application for approval of an assignment of an interest in a RUE, in whole or in part, must be filed in triplicate with the Regional Director. Such application must be supported by a statement that the assignee agrees to comply with and to be bound by the terms and conditions of the RUE grant. The assignee must satisfy the bonding requirements in § 550.166. No RUE assignment will be recognized unless and until it is first approved, in writing, by the Regional Director. The assignee of an interest in a RUE must pay the same service fee as that listed in § 550.106(a)(1) for a lease record title assignment request. (c) BOEM may disapprove an assignment in the following circumstances: (1) When the assignee has unsatisfied obligations under the regulations in this chapter or in chapters II or XII of this title, or under any applicable BOEM or BSEE order; (2) When an assignment is not acceptable as to form or content (e.g., containing incorrect legal description, not executed by a person authorized to bind the corporation, assignee does not meet the requirements of §§ 556.401 through 556.405 of this subchapter); (3) When the assignment does not comply with or would conflict with this part, or any other applicable laws or regulations (e.g., Departmental debarment rules); or (4) When the assignee does not meet the applicable financial assurance requirements in § 550.166 and part 556, subpart I of this subchapter, or has not complied with a BOEM or BSEE order. [89 FR 31589, Apr. 24, 2024] Primary Lease Requirements, Lease Term Extensions, and Lease Cancellations § 550.181 When may the Secretary cancel my lease and when am I compensated for cancellation? If the Secretary cancels your lease under this part or under 30 CFR part 556, you are entitled to compensation under § 550.184. Section 550.185 states conditions under which you will receive no compensation. The Secretary may cancel a lease after notice and opportunity for a hearing when: (a) Continued activity on the lease would probably cause harm or damage to life (including fish and other aquatic life), property, any mineral deposits (in areas leased or not leased), or the marine, coastal, or human environment; (b) The threat of harm or damage will not disappear or decrease to an acceptable extent within a reasonable period of time; (c) The advantages of cancellation outweigh the advantages of continuing the lease in force; and (d) A suspension has been in effect for at least 5 years or you request termination of the suspension and lease cancellation. § 550.182 When may the Secretary cancel a lease at the exploration stage? BOEM may not approve an exploration plan (EP) under 30 CFR part 550, subpart B, if the Regional Supervisor determines that the proposed activities may cause serious harm or damage to life (including fish and other aquatic life), property, any mineral deposits, the National security or defense, or to the marine, coastal, or human environment, and that the proposed activity cannot be modified to avoid the condition(s). The Secretary may cancel the lease if: (a) The primary lease term has not expired (or if the lease term has been extended) and exploration has been prohibited for 5 years following the disapproval; or (b) You request cancellation at an earlier time. § 550.183 When may BOEM or the Secretary extend or cancel a lease at the development and production stage? (a) BOEM may extend your lease if you submit a DPP and the Regional Supervisor disapproves the plan according to the regulations in 30 CFR part 550, subpart B. Following the disapproval: (1) BOEM will allow you to hold the lease for 5 years, or less time at your request; (2) Any time within 5 years after the disapproval, you may reapply for approval of the same or a modified plan; and (3) The Regional Supervisor will approve, disapprove, or require modification of the plan under 30 CFR part 550, subpart B. (b) If the Regional Supervisor has not approved a DPP or required you to submit a DPP for approval or modification, the Secretary will cancel the lease: (1) When the 5-year period in paragraph (a)(1) of this section expires; or (2) If you request cancellation at an earlier time. § 550.184 What is the amount of compensation for lease cancellation? When the Secretary cancels a lease under §§ 550.181, 550.182 or 550.183 of this subpart, you are entitled to receive compensation under 43 U.S.C. 1334(a)(2)(C). You must show the Director that the amount of compensation claimed is the lesser of paragraph (a) or (b) of this section: (a) The fair value of the cancelled rights as of the date of cancellation, taking into account both: (1) Anticipated revenues from the lease; and (2) Costs reasonably anticipated on the lease, including: (i) Costs of compliance with all applicable regulations and operating orders; and (ii) Liability for cleanup costs or damages, or both, in the case of an oil spill. (b) The excess, if any, over your revenues from the lease (plus interest thereon from the date of receipt to date of reimbursement) of: (1) All consideration paid for the lease (plus interest from the date of payment to the date of reimbursement); and (2) All your direct expenditures (plus interest from the date of payment to the date of reimbursement): (i) After the issue date of the lease; and (ii) For exploration or development, or both. (c) Compensation for leases issued before September 18, 1978, will be equal to the amount specified in paragraph (a) of this section. § 550.185 When is there no compensation for a lease cancellation? You will not receive compensation from BOEM for lease cancellation if: (a) BOEM disapproves a DPP because you do not receive concurrence by the State under section 307(c)(3)(B)(i) or (ii) of the CZMA, and the Secretary of Commerce does not make the finding authorized by section 307(c)(3)(B)(iii) of the CZMA; (b) You do not submit a DPP under 30 CFR part 550, subpart B or do not comply with the approved DPP; (c) As the lessee of a nonproducing lease, you fail to comply with the Act, the lease, or the regulations issued under the Act, and the default continues for 30 days after BOEM mails you a notice by overnight mail; (d) The Regional Supervisor disapproves a DPP because you fail to comply with the requirements of applicable Federal law; or (e) The Secretary forfeits and cancels a producing lease under section 5(d) of the Act (43 U.S.C. 1334(d)). Information and Reporting Requirements § 550.186 What reporting information and report forms must I submit? (a) You must submit information and reports as BOEM requires. (1) You may obtain copies of forms from, and submit completed forms to, the Regional Supervisor. (2) Instead of paper copies of forms available from the Regional Supervisor, you may use your own computer-generated forms that are equal in size to BOEM's forms. You must arrange the data on your form identical to the BOEM form. If you generate your own form and it omits terms and conditions contained on the official BOEM form, we will consider it to contain the omitted terms and conditions. (3) You may submit digital data when the Region is equipped to accept it. (b) When BOEM specifies, you must include, for public information, an additional copy of such reports. (1) You must mark it Public Information. (2) You must include all required information, except information exempt from public disclosure under § 550.197 or otherwise exempt from public disclosure under law or regulation. §§ 550.187-550.193 [Reserved] § 550.194 How must I protect archaeological resources? (a) If the Regional Director has reason to believe that an archaeological resource may exist in the lease area, the Regional Director will require in writing that your EP, DOCD, or DPP be accompanied by an archaeological report. If the archaeological report suggests that an archaeological resource may be present, you must either: (1) Locate the site of any operation so as not to adversely affect the area where the archaeological resource may be; or (2) Establish to the satisfaction of the Regional Director that an archaeological resource does not exist or will not be adversely affected by operations. This requires further archaeological investigation, conducted by an archaeologist and a geophysicist, using survey equipment and techniques the Regional Director considers appropriate. You must submit the investigation report to the Regional Director for review. (b) If the Regional Director determines that an archaeological resource is likely to be present in the lease area and may be adversely affected by operations, the Regional Director will notify you immediately. You must not take any action that may adversely affect the archaeological resource until the Regional Director has told you how to protect the resource. (c) If you discover any archaeological resource while conducting operations in the lease or right-of-way area, you must immediately halt operations within the area of the discovery and report the discovery to the BOEM Regional Director. If investigations determine that the resource is significant, the Regional Director will tell you how to protect it. [90 FR 15532, Apr. 14, 2025] § 550.195 [Reserved] § 550.196 Reimbursements for reproduction and processing costs. (a) BOEM will reimburse you for costs of reproducing data and information that the Regional Director requests if: (1) You deliver geophysical and geological (G&G) data and information to BOEM for the Regional Director to inspect or select and retain; (2) BOEM receives your request for reimbursement and the Regional Director determines that the requested reimbursement is proper; and (3) The cost is at your lowest rate or at the lowest commercial rate established in the area, whichever is less. (b) BOEM will reimburse you for the costs of processing geophysical information (that does not include cost of data acquisition): (1) If, at the request of the Regional Director, you processed the geophysical data or information in a form or manner other than that used in the normal conduct of business; or (2) If you collected the information under a permit that BOEM issued to you before October 1, 1985, and the Regional Director requests and retains the information. (c) When you request reimbursement, you must identify reproduction and processing costs separately from acquisition costs. (d) BOEM will not reimburse you for data acquisition costs or for the costs of analyzing or processing geological information or interpreting geological or geophysical information. § 550.197 Data and information to be made available to the public or for limited inspection. BOEM will protect data and information that you submit under this chapter, as described in this section. Paragraphs (a) and (b) of this section describe what data and information will be made available to the public without the consent of the lessee, under what circumstances, and in what time period. Paragraph (c) of this section describes what data and information will be made available for limited inspection without the consent of the lessee, and under what circumstances. (a) All data and information you submit on BOEM forms will be made available to the public upon submission, except as specified in the following table: On form . . . Data and information not immediately available are . . . Excepted data will be made available . . . (1) [Reserved] (2) [Reserved] (3) [Reserved] (4) [Reserved] (5) [Reserved] (6) BOEM-0127, Sensitive Reservoir Information Report, Items 124 through 168, 2 years after the effective date of the Sensitive Reservoir Information Report. (7) [Reserved] (8) [Reserved] (9) BOEM-0137 OCS Plan Information, Items providing the bottomhole location, true vertical depth, and measured depth of wells, When the well goes on production or according to the table in paragraph (b) of this section, whichever is earlier. (10) BOEM-0140, Bottomhole Pressure Survey Report, All items, 2 years after the date of the survey. (b) BOEM will release lease and permit data and information that you submit and BOEM retains, but that are not normally submitted on BOEM forms, according to the following table: If . . . BOEM will release . . . At this time . . . Special provisions . . . (1) The Director determines that data and information are needed for specific scientific or research purposes for the Government, Geophysical data, Geological data Interpreted G&G information, Processed G&G information, Analyzed geological information, At any time, BOEM will release data and information only if release would further the National interest without unduly damaging the competitive position of the lessee. (2) Data or information is collected with high-resolution systems (e.g., bathymetry, side-scan sonar, subbottom profiler, and magnetometer) to comply with safety or environmental protection requirements, Geophysical data, Geological data, Interpreted G&G information, Processed geological information, Analyzed geological information, 60 days after BOEM receives the data or information, if the Regional Supervisor deems it necessary, BOEM will release the data and information earlier than 60 days if the Regional Supervisor determines it is needed by affected States to make decisions under subpart B. The Regional Supervisor will reconsider earlier release if you satisfy him/her that it would unduly damage your competitive position. (3) Your lease is no longer in effect, Geophysical data, Geological data, Processed G&G information Interpreted G&G information, Analyzed geological information, When your lease terminates, This release time applies only if the provisions in this table governing high-resolution systems and the provisions in § 552.7 do not apply. The release time applies to the geophysical data and information only if acquired postlease for a lessee's exclusive use. (4) Your lease is still in effect, Geophysical data, Processed geophysical information, Interpreted G&G information, 10 years after you submit the data and information, This release time applies only if the provisions in this table governing high-resolution systems and the provisions in § 552.7 do not apply. This release time applies to the geophysical data and information only if acquired postlease for a lessee's exclusive use. (5) Your lease is still in effect and within the primary term specified in the lease, Geological data, analyzed geological information, Two years after the required submittal date or 60 days after a lease sale if any portion of an offered lease is within 50 miles of a well, whichever is later, These release times apply only if the provisions in this table governing high-resolution systems and the provisions in § 552.7 do not apply. If the primary term specified in the lease is extended, this provision applies to the extension. (6) Your lease is in effect and beyond the primary term specified in the lease, Geological data, Analyzed geological information, 2 years after the required submittal date, None. (7) Data or information is submitted on well operations, Descriptions of downhole locations, operations, and equipment, When the well goes on production or when geological data is released according to §§ 550.197(b)(5) and (b)(6), whichever occurs earlier, Directional survey data may be released earlier to the owner of an adjacent lease according to 30 CFR 250 subpart D. (8) Data and information are obtained from beneath unleased land as a result of a well deviation that has not been approved by the Regional Supervisor, Any data or information obtained, At any time, None. (9) Except for high-resolution data and information released under paragraph (b)(2) of this section data and information acquired by a permit under 30 CFR part 551 are submitted by a lessee under part 550, 30 CFR part 203, or 30 CFR part 250, G&G data, analyzed geological information, processed and interpreted G&G information, Geological data and information: 10 years after BOEM issues the permit; Geophysical data: 50 years after BOEM issues the permit; Geophysical information: 25 years after BOEM issues the permit, None. (c) BOEM may allow limited data and information inspection, but only by a person with a direct interest in related BOEM decisions and issues in a specific geographic area, and who agrees in writing to maintain the confidentiality of geological and geophysical (G&G) data and information submitted under this part that BOEM uses to: (1) Promote operational safety; (2) Protect the environment; or (3) Make field determinations. (d) No proprietary information received by BOEM under 43 U.S.C. 1352 will be transmitted to any affected State unless the lessee, or the permittee and all persons to whom such permittee has sold such information under promise of confidentiality, agree to such transmittal. [76 FR 64623, Oct. 18, 2011, as amended at 81 FR 18152, Mar. 30, 2016] References § 550.198 [Reserved] § 550.199 Paperwork Reduction Act statements—information collection. (a) OMB has approved the information collection requirements in part 550 under 44 U.S.C. 3501 et seq. (b) Respondents are OCS oil, gas, and sulfur lessees and operators. The requirement to respond to the information collections in this part is mandated under the Act (43 U.S.C. 1331 et seq. et seq. (c) The Paperwork Reduction Act of 1995 requires us to inform the public that an agency may not conduct or sponsor, and you are not required to respond to, a collection of information unless it displays a currently valid OMB control number. (d) Send comments regarding any aspect of the collections of information under this part, including suggestions for reducing the burden, to the Information Collection Clearance Officer, Bureau of Ocean Energy Management, 45600 Woodland Road, Sterling, VA 20166. (e) BOEM is collecting this information for the reasons given in the following table: 30 CFR subpart, title and/or BOEM Form (OMB Control No.) Reasons for collecting information and how used (1) Subpart A, General (1010-0114), including Forms BOEM-1123, Designation of Operator and BOEM-1832, Notification of Incidents of Noncompliance To inform BOEM of actions taken to comply with general requirements on the OCS. To ensure that operations on the OCS meet statutory and regulatory requirements, are safe and protect the environment, and result in diligent exploration, development, and production on OCS leases. To support the unproved and proved reserve estimation, resource assessment, and fair market value determinations. (2) Subpart B, Exploration and Development and Production Plans (1010-0151), including Forms BOEM-0137, OCS Plan Information Form; BOEM-0138, EP Air Quality Screening Checklist; BOEM-0139, DOCD Air Quality Screening Checklist; BOEM-0141, ROV Survey Report Form; and BOEM-0142, Environmental Impact Analysis Worksheet To inform BOEM, States, and the public of planned exploration, development, and production operations on the OCS. To ensure that operations on the OCS are planned to comply with statutory and regulatory requirements, will be safe and protect the human, marine, and coastal environment, and will result in diligent exploration, development, and production of leases. (3) Subpart C, Pollution Prevention and Control (1010-0057) To inform BOEM of measures to be taken to prevent air pollution. To ensure that appropriate measures are taken to prevent air pollution. (4) Subpart J, Pipelines and Pipeline Rights-of-Way (1010-0050), including Form BOEM-2030, Outer Continental Shelf (OCS) Pipeline Right-of-Way Grant Bond To provide BOEM with information regarding the design, installation, and operation of pipelines on the OCS. To ensure that pipeline operations are safe and protect the human, marine, and coastal environment. (5) Subpart K, Oil and Gas Production Rates (1010-0041), including Forms BOEM-0127, Sensitive Reservoir Information Report and BOEM-0140, Bottomhole Pressure Survey Report To inform BOEM of production rates for hydrocarbons produced on the OCS. To ensure economic maximization of ultimate hydrocarbon recovery. (6) Subpart N, Remedies and Penalties The requirements in subpart N are exempt from the Paperwork Reduction Act of 1995 according to 5 CFR 1320.4. [76 FR 64623, Oct. 18, 2011, as amended at 80 FR 57096, Sept. 22, 2015; 89 FR 31590, Apr. 24, 2024] Subpart B—Plans and Information General Information § 550.200 Definitions. Acronyms and terms used in this subpart have the following meanings: (a) Acronyms BOEM BSEE CID CZMA DOCD DPP DWOP EIA EP IOP NPDES NTL OCS (b) Terms used in this subpart are listed alphabetically below: Amendment Modification New or unusual technology (1) Have not been used previously or extensively in a BOEM OCS Region; (2) Have not been used previously under the anticipated operating conditions; or (3) Have operating characteristics that are outside the performance parameters established by this part. Non-conventional production or completion technology Offshore vehicle Resubmitted OCS plan Revised OCS plan Supplemental OCS plan [76 FR 64623, Oct. 18, 2011, as amended at 81 FR 46565, July 15, 2016] § 550.201 What plans and information must I submit before I conduct any activities on my lease or unit? (a) Plans and documents. You must submit a(n) . . . Before you . . . (1) Exploration Plan (EP), Conduct any exploration activities on a lease or unit. (2) Development and Production Plan (DPP), Conduct any development and production activities on a lease or unit in any OCS area other than the Western Gulf of America. (3) Development Operations Coordination Document (DOCD), Conduct any development and production activities on a lease or unit in the Western GOA. (4) BSEE approved Deepwater Operations Plan (DWOP), Conduct post-drilling installation activities in any water depth associated with a development project that will involve the use of a non-conventional production or completion technology. (5) Conservation Information Document (CID), Commence production from development projects in water depths greater than 1,312 feet (400 meters). (6) EP, DPP, or DOCD, Conduct geological or geophysical (G&G) exploration or a development G&G activity (see definitions under § 550.105) on your lease or unit when: (i) It will result in a physical penetration of the seabed greater than 500 feet (152 meters); (ii) It will involve the use of explosives; (iii) The Regional Director determines that it might have a significant adverse effect on the human, marine, or coastal environment; or (iv) The Regional Supervisor, after reviewing a notice under § 550.209, determines that an EP, DPP, or DOCD is necessary. (b) Submitting additional information. (c) Limiting information. (1) Sufficient applicable information or analysis is readily available to BOEM; (2) Other coastal or marine resources are not present or affected; (3) Other factors such as technological advances affect information needs; or (4) Information is not necessary or required for a State to determine consistency with their CZMA Plan. (d) Referencing. § 550.202 What criteria must the Exploration Plan (EP), Development and Production Plan (DPP), or Development Operations Coordination Document (DOCD) meet? Your EP, DPP, or DOCD must demonstrate that you have planned and are prepared to conduct the proposed activities in a manner that: (a) Conforms to the Outer Continental Shelf Lands Act as amended (Act), applicable implementing regulations, lease provisions and stipulations, and other Federal laws; (b) Is safe; (c) Conforms to sound conservation practices and protects the rights of the lessor; (d) Does not unreasonably interfere with other uses of the OCS, including those involved with National security or defense; and (e) Does not cause undue or serious harm or damage to the human, marine, or coastal environment. § 550.203 Where can wells be located under an EP, DPP, or DOCD? The Regional Supervisor reviews and approves proposed well location and spacing under an EP, DPP, or DOCD. In deciding whether to approve a proposed well location and spacing, the Regional Supervisor will consider factors including, but not limited to, the following: (a) Protecting correlative rights; (b) Protecting Federal royalty interests; (c) Recovering optimum resources; (d) Number of wells that can be economically drilled for proper reservoir management; (e) Location of drilling units and platforms; (f) Extent and thickness of the reservoir; (g) Geologic and other reservoir characteristics; (h) Minimizing environmental risk; (i) Preventing unreasonable interference with other uses of the OCS; and (j) Drilling of unnecessary wells. § 550.204 When must I submit my IOP for proposed Arctic exploratory drilling operations and what must the IOP include? If you propose exploratory drilling activities on the Arctic OCS, you must submit an Integrated Operations Plan (IOP) to the Regional Supervisor at least 90 days prior to filing your EP. Your IOP must describe how your exploratory drilling program will be designed and conducted in an integrated manner that accounts for Arctic OCS conditions and include the following information: (a) A description of how all vessels and equipment will be designed, built, and/or modified to account for Arctic OCS conditions; (b) A schedule of your exploratory drilling program, including contractor work on critical components of your program; (c) A description of your mobilization and demobilization operations, including tow plans that account for Arctic OCS conditions, as well as your general maintenance schedule for vessels and equipment; (d) A description of your exploratory drilling program objectives and timelines for each objective, including general plans for abandonment of the well(s), such as: (1) Contingency plans for temporary abandonment in the event of ice encroachment at the drill site; (2) Plans for permanent abandonment; and (3) Plans for temporary seasonal abandonment. (e) A description of your weather and ice forecasting capabilities for all phases of the exploration program, including a description of how you would respond to and manage ice hazards and weather events; (f) A description of work to be performed by contractors supporting your exploration drilling program (including mobilization and demobilization), including: (1) How such work will be designed or modified to account for Arctic OCS conditions; and (2) Your concepts for contractor management, oversight, and risk management. (g) A description of how you will ensure operational safety while working in Arctic OCS conditions, including but not limited to: (1) The safety principles that you intend to apply to yourself and your contractors; (2) The accountability structure within your organization for implementing such principles; (3) How you will communicate such principles to your employees and contractors; and (4) How you will determine successful implementation of such principles. (h) Information regarding your preparations and plans for staging of oil spill response assets; (i) A description of your efforts to minimize impacts of your exploratory drilling operations on local community infrastructure, including but not limited to housing, energy supplies, and services; and (j) A description of whether and to what extent your project will rely on local community workforce and spill cleanup response capacity. [81 FR 46565, July 15, 2016] § 550.205 [Reserved] § 550.206 How do I submit the IOP, EP, DPP, or DOCD? (a) Number of copies. (1) Four copies that contain all required information (proprietary copies); (2) Eight copies for public distribution (public information copies) that omit information that you assert is exempt from disclosure under the Freedom of Information Act (FOIA) (5 U.S.C. 552) and the implementing regulations (43 CFR part 2); and (3) Any additional copies that may be necessary to facilitate review of the IOP, EP, DPP, or DOCD by certain affected States and other reviewing entities. (b) Electronic submission. (c) Withdrawal after submission. [81 FR 46565, July 15, 2016] Ancillary Activities § 550.207 What ancillary activities may I conduct? Before or after you submit an EP, DPP, or DOCD to BOEM, you may elect, the regulations in this part may require, or the Regional Supervisor may direct you to conduct ancillary activities. Ancillary activities include: (a) Geological and geophysical (G&G) explorations and development G&G activities; (b) Geological and high-resolution geophysical, geotechnical, archaeological, biological, physical oceanographic, meteorological, socioeconomic, or other surveys; or (c) Studies that model potential oil and hazardous substance spills, drilling muds and cuttings discharges, projected air emissions, or potential hydrogen sulfide (H 2 § 550.208 If I conduct ancillary activities, what notices must I provide? At least 30 calendar days before you conduct any G&G exploration or development G&G activity (see § 550.207(a)), you must notify the Regional Supervisor in writing. (a) When you prepare the notice, you must: (1) Sign and date the notice; (2) Provide the names of the vessel, its operator, and the person(s) in charge; the specific type(s) of operations you will conduct; and the instrumentation/techniques and vessel navigation system you will use; (3) Provide expected start and completion dates and the location of the activity; and (4) Describe the potential adverse environmental effects of the proposed activity and any mitigation to eliminate or minimize these effects on the marine, coastal, and human environment. (b) The Regional Supervisor may require you to: (1) Give written notice to BOEM at least 15 calendar days before you conduct any other ancillary activity (see § 550.207(b) and (c)) in addition to those listed in § 550.207(a); and (2) Notify other users of the OCS before you conduct any ancillary activity. § 550.209 What is the BOEM review process for the notice? The Regional Supervisor will review any notice required under § 550.208(a) and (b)(1) to ensure that your ancillary activity complies with the performance standards listed in § 550.202(a), (b), (d), and (e). The Regional Supervisor may notify you that your ancillary activity does not comply with those standards. In such a case, the Regional Supervisor will require you to submit an EP, DPP, or DOCD and you may not start your ancillary activity until the Regional Supervisor approves the EP, DPP, or DOCD. § 550.210 If I conduct ancillary activities, what reporting and data/information retention requirements must I satisfy? (a) Reporting. (b) Data and information retention. Contents of Exploration Plans (EP) § 550.211 What must the EP include? Your EP must include the following: (a) Description, objectives, and schedule. (b) Location. (c) Drilling unit. (d) Service fee. § 550.212 What information must accompany the EP? The following information must accompany your EP: (a) General information required by § 550.213; (b) Geological and geophysical (G&G) information required by § 550.214; (c) Hydrogen sulfide information required by § 550.215; (d) Biological, physical, and socioeconomic information required by § 550.216; (e) Solid and liquid wastes and discharges information and cooling water intake information required by § 550.217; (f) Air emissions information required by § 550.218; (g) Oil and hazardous substance spills information required by § 550.219; (h) Alaska planning information required by § 550.220; (i) Environmental monitoring information required by § 550.221; (j) Lease stipulations information required by § 550.222; (k) Mitigation measures information required by § 550.223; (l) Support vessels and aircraft information required by § 550.224; (m) Onshore support facilities information required by § 550.225; (n) Coastal zone management information required by § 550.226; (o) Environmental impact analysis information required by § 550.227; and (p) Administrative information required by § 550.228. § 550.213 What general information must accompany the EP? The following general information must accompany your EP: (a) Applications and permits. (b) Drilling fluids. i.e., (c) Chemical products. (d) New or unusual technology. (e) Bonds, oil spill financial responsibility, and well control statements. (1) The activities and facilities proposed in your EP are or will be covered by an appropriate bond under 30 CFR part 556, subpart I; (2) You have demonstrated or will demonstrate oil spill financial responsibility for facilities proposed in your EP according to 30 CFR part 553; and (3) You have or will have the financial capability to drill a relief well and conduct other emergency well control operations. (f) Suspensions of operations. (g) Blowout scenario. (h) Contact. § 550.214 What geological and geophysical (G&G) information must accompany the EP? The following G&G information must accompany your EP: (a) Geological description. (b) Structure contour maps. (c) Two-dimensional (2-D) or three-dimensional (3-D) seismic lines. (d) Geological cross-sections. (e) Shallow hazards report. (f) Shallow hazards assessment. (g) High-resolution seismic lines. (h) Stratigraphic column. (i) Time-versus-depth chart. (j) Geochemical information. (k) Future G&G activities. § 550.215 What hydrogen sulfide (H 2 The following H 2 (a) Concentration. 2 (b) Classification. 2 2 2 (c) H 2 S Contingency Plan. 2 2 2 2 (d) Modeling report. 2 (1) The analysis in the modeling report must be specific to the particular site of your proposed exploration activities, and must consider any nearby human-occupied OCS facilities, shipping lanes, fishery areas, and other points where humans may be subject to potential exposure from an H 2 (2) If any H 2 § 550.216 What biological, physical, and socioeconomic information must accompany the EP? If you obtain the following information in developing your EP, or if the Regional Supervisor requires you to obtain it, you must include a report, or the information obtained, or a reference to such a report or information if you have already submitted it to the Regional Supervisor, as accompanying information: (a) Biological environment reports. (b) Physical environment reports. (c) Socioeconomic study reports. § 550.217 What solid and liquid wastes and discharges information and cooling water intake information must accompany the EP? The following solid and liquid wastes and discharges information and cooling water intake information must accompany your EP: (a) Projected wastes. (1) The methods you used for determining this information; and (2) Your plans for treating, storing, and downhole disposal of these wastes at your drilling location(s). (b) Projected ocean discharges. (1) A table showing the name, projected amount, and rate of discharge for each waste type; and (2) A description of the discharge method (such as shunting through a downpipe, etc. (c) National Pollutant Discharge Elimination System (NPDES) permit. (2) A copy of your application for an individual NPDES permit. Briefly describe the major discharges and methods you will use for compliance. (d) Modeling report. (e) Projected cooling water intake. § 550.218 What air emissions information must accompany the EP? The following air emissions information, as applicable, must accompany your EP: (a) Projected emissions. (1) For each source on or associated with the drilling unit (including well test flaring and well protection structure installation), you must list: (i) The projected peak hourly emissions; (ii) The total annual emissions in tons per year; (iii) Emissions over the duration of the proposed exploration activities; (iv) The frequency and duration of emissions; and (v) The total of all emissions listed in paragraphs (a)(1)(i) through (iv) of this section. (2) You must provide the basis for all calculations, including engine size and rating, and applicable operational information. (3) You must base the projected emissions on the maximum rated capacity of the equipment on the proposed drilling unit under its physical and operational design. (4) If the specific drilling unit has not yet been determined, you must use the maximum emission estimates for the type of drilling unit you will use. (b) Emission reduction measures. (c) Processes, equipment, fuels, and combustibles. (d) Distance to shore. (e) Non-exempt drilling units. (f) Modeling report. [76 FR 64623, Oct. 18, 2011, as amended at 85 FR 34936, June 5, 2020] § 550.219 What oil and hazardous substance spills information must accompany the EP? The following information regarding potential spills of oil (see definition under 30 CFR 254.6) and hazardous substances (see definition under 40 CFR part 116) as applicable, must accompany your EP: (a) Oil spill response planning. (1) An Oil Spill Response Plan (OSRP) for the facilities you will use to conduct your exploration activities prepared according to the requirements of 30 CFR part 254, subpart B; or (2) Reference to your approved regional OSRP (see 30 CFR 254.3) to include: (i) A discussion of your regional OSRP; (ii) The location of your primary oil spill equipment base and staging area; (iii) The name(s) of your oil spill removal organization(s) for both equipment and personnel; (iv) The calculated volume of your worst case discharge scenario (see 30 CFR 254.26(a)), and a comparison of the appropriate worst case discharge scenario in your approved regional OSRP with the worst case discharge scenario that could result from your proposed exploration activities; and (v) A description of the worst case discharge scenario that could result from your proposed exploration activities (see 30 CFR 254.26(b), (c), (d), and (e)). (b) Modeling report. § 550.220 If I propose activities in the Alaska OCS Region, what planning information must accompany the EP? If you propose exploration activities in the Alaska OCS Region, the following planning information must accompany your EP: (a) Emergency plans. (b) Critical operations and curtailment procedures. (c) If you propose exploration activities on the Arctic OCS, the following planning information must also accompany your EP: (1) Suitability for Arctic OCS conditions. (2) Ice and weather management. (i) A description of how you will respond to and manage ice hazards and weather events; (ii) Your ice and weather alert procedures; (iii) Your procedures and thresholds for activating your ice and weather management system(s); and (iv) Confirmation that you will operate ice and weather management and alert systems continuously throughout the planned operations, including mobilization and demobilization operations to and from the Arctic OCS. (3) Source control and containment equipment capabilities. (4) Deployment of a relief well rig. (5) Resource-sharing. (6) Anticipated end of seasonal operations dates. (i) The completion of on-site operations, which is contingent upon your capability in terms of equipment and procedures to manage and mitigate risks associated with Arctic OCS conditions; and (ii) The termination of drilling operations consistent with the relief rig planning requirements under § 250.472 of this title and with your estimated timeframe under paragraph (c)(4) of this section for completion of relief well operations. [76 FR 64623, Oct. 18, 2011, as amended at 81 FR 46565, July 15, 2016] § 550.221 What environmental monitoring information must accompany the EP? The following environmental monitoring information, as applicable, must accompany your EP: (a) Monitoring systems. (b) Incidental takes. (1) Threatened and endangered species listed under the ESA; and (2) Marine mammals, as appropriate, if you have not already received authorization for incidental take as may be necessary under the MMPA. (c) Flower Garden Banks National Marine Sanctuary (FGBNMS). § 550.222 What lease stipulations information must accompany the EP? A description of the measures you took, or will take, to satisfy the conditions of lease stipulations related to your proposed exploration activities must accompany your EP. § 550.223 What mitigation measures information must accompany the EP? (a) If you propose to use any measures beyond those required by the regulations in this part to minimize or mitigate environmental impacts from your proposed exploration activities, a description of the measures you will use must accompany your EP. (b) If there is reason to believe that protected species may be incidentally taken by planned exploration activities, you must include mitigation measures designed to avoid or minimize the incidental take of: (1) Threatened and endangered species listed under the ESA; and (2) Marine mammals, as appropriate, if you have not already received authorization for incidental take as may be necessary under the MMPA. § 550.224 What information on support vessels, offshore vehicles, and aircraft you will use must accompany the EP? The following information on the support vessels, offshore vehicles, and aircraft you will use must accompany your EP: (a) General. (b) Air emissions. (c) Drilling fluids and chemical products transportation. (d) Solid and liquid wastes transportation. (e) Vicinity map. § 550.225 What information on the onshore support facilities you will use must accompany the EP? The following information on the onshore support facilities you will use must accompany your EP: (a) General. (1) Indicate whether the onshore support facilities are existing, to be constructed, or to be expanded. (2) If the onshore support facilities are, or will be, located in areas not adjacent to the Western GOA, provide a timetable for acquiring lands (including rights-of-way and easements) and constructing or expanding the facilities. Describe any State or Federal permits or approvals (dredging, filling, etc. (b) Air emissions. (c) Unusual solid and liquid wastes. (d) Waste disposal. § 550.226 What Coastal Zone Management Act (CZMA) information must accompany the EP? The following CZMA information must accompany your EP: (a) Consistency certification. (b) Other information. § 550.227 What environmental impact analysis (EIA) information must accompany the EP? The following EIA information must accompany your EP: (a) General requirements. (1) Assess the potential environmental impacts of your proposed exploration activities; (2) Be project specific; and (3) Be as detailed as necessary to assist the Regional Supervisor in complying with the National Environmental Policy Act (NEPA) of 1969 (42 U.S.C. 4321 et seq. (b) Resources, conditions, and activities. (1) Meteorology, oceanography, geology, and shallow geological or manmade hazards; (2) Air and water quality; (3) Benthic communities, marine mammals, sea turtles, coastal and marine birds, fish and shellfish, and plant life; (4) Threatened or endangered species and their critical habitat as defined by the Endangered Species Act of 1973; (5) Sensitive biological resources or habitats such as essential fish habitat, refuges, preserves, special management areas identified in coastal management programs, sanctuaries, rookeries, and calving grounds; (6) Archaeological resources; (7) Socioeconomic resources including employment, existing offshore and coastal infrastructure (including major sources of supplies, services, energy, and water), land use, subsistence resources and harvest practices, recreation, recreational and commercial fishing (including typical fishing seasons, location, and type), minority and lower income groups, and coastal zone management programs; (8) Coastal and marine uses such as military activities, shipping, and mineral exploration or development; and (9) Other resources, conditions, and activities identified by the Regional Supervisor. (c) Environmental impacts. (1) Analyze the potential direct and indirect impacts (including those from accidents, cooling water intake structures, and those identified in relevant ESA biological opinions such as, but not limited to, those from noise, vessel collisions, and marine trash and debris) that your proposed exploration activities will have on the identified resources, conditions, and activities; (2) Analyze any potential cumulative impacts from other activities to those identified resources, conditions, and activities potentially impacted by your proposed exploration activities; (3) Describe the type, severity, and duration of these potential impacts and their biological, physical, and other consequences and implications; (4) Describe potential measures to minimize or mitigate these potential impacts; and (5) Summarize the information you incorporate by reference. (d) Consultation. (e) References cited. § 550.228 What administrative information must accompany the EP? The following administrative information must accompany your EP: (a) Exempted information description (public information copies only). (b) Bibliography. (2) The location(s) where the Regional Supervisor can inspect the cited referenced material if you have not submitted it. Review and Decision Process for the EP § 550.231 After receiving the EP, what will BOEM do? (a) Determine whether deemed submitted. (1) The submitted information, including the information that must accompany the EP (refer to the list in § 550.212), fulfills requirements and is sufficiently accurate; (2) You have provided all needed additional information (see § 550.201(b)); and (3) You have provided the required number of copies (see § 550.206(a)). (b) Identify problems and deficiencies. (c) Deemed submitted notification. § 550.232 What actions will BOEM take after the EP is deemed submitted? (a) State and CZMA consistency reviews. (1) The Governor of each affected State. (2) The CZMA agency of each affected State. (b) BOEM compliance review. (c) BOEM environmental impact evaluation. et seq. (d) Amendments. § 550.233 What decisions will BOEM make on the EP and within what timeframe? (a) Timeframe. (b) BOEM decision. The regional If . . . And then . . . (1) Approve your EP, It complies with all applicable requirements, The Regional Supervisor will notify you in writing of the decision and may require you to meet certain conditions, including those to provide monitoring information. (2) Require you to modify your proposed EP, The Regional Supervisor finds that it is inconsistent with the lease, the Act, the regulations prescribed under the Act, or other Federal laws, The Regional Supervisor will notify you in writing of the decision and describe the modifications you must make to your proposed EP to ensure it complies with all applicable requirements. (3) Disapprove your EP, Your proposed activities would probably cause serious harm or damage to life (including fish or other aquatic life); property; any mineral (in areas leased or not leased); the National security or defense; or the marine, coastal, or human environment; and you cannot modify your proposed activities to avoid such condition(s), (i) The Regional Supervisor will notify you in writing of the decision and describe the reason(s) for disapproving your EP. § 550.234 How do I submit a modified EP or resubmit a disapproved EP, and when will BOEM make a decision? (a) Modified EP. (b) Resubmitted EP. (c) BOEM review and timeframe. § 550.235 If a State objects to the EP's coastal zone consistency certification, what can I do? If an affected State objects to the coastal zone consistency certification accompanying your proposed EP within the timeframe prescribed in § 550.233(a) or § 550.234(c), you may do one of the following: (a) Amend your EP. (b) Appeal. (1) Grant your appeal by finding, under section 307(c)(3)(B)(iii) of the CZMA (16 U.S.C. 1456(c)(3)(B)(iii)), that each activity described in detail in your EP is consistent with the objectives of the CZMA, or is otherwise necessary in the interest of National security; or (2) Deny your appeal, in which case you may amend your EP as described in paragraph (a) of this section. (c) Withdraw your EP. Contents of Development and Production Plans (DPP) and Development Operations Coordination Documents (DOCD) § 550.241 What must the DPP or DOCD include? Your DPP or DOCD must include the following: (a) Description, objectives, and schedule. (1) Development drilling; (2) Well test flaring; (3) Installation of production platforms, satellite structures, subsea wellheads and manifolds, and lease term pipelines (see definition at § 550.105); and (4) Installation of production facilities and conduct of production operations. (b) Location. (c) Drilling unit. (d) Production facilities. (e) Service fee. § 550.242 What information must accompany the DPP or DOCD? The following information must accompany your DPP or DOCD. (a) General information required by § 550.243; (b) G&G information required by § 550.244; (c) Hydrogen sulfide information required by § 550.245; (d) Mineral resource conservation information required by § 550.246; (e) Biological, physical, and socioeconomic information required by § 550.247; (f) Solid and liquid wastes and discharges information and cooling water intake information required by § 550.248; (g) Air emissions information required by § 550.249; (h) Oil and hazardous substance spills information required by § 550.250; (i) Alaska planning information required by § 550.251; (j) Environmental monitoring information required by § 550.252; (k) Lease stipulations information required by § 550.253; (l) Mitigation measures information required by § 550.254; (m) Decommissioning information required by § 550.255; (n) Related facilities and operations information required by § 550.256; (o) Support vessels and aircraft information required by § 550.257; (p) Onshore support facilities information required by § 550.258; (q) Sulphur operations information required by § 550.259; (r) Coastal zone management information required by § 550.260; (s) Environmental impact analysis information required by § 550.261; and (t) Administrative information required by § 550.262. § 550.243 What general information must accompany the DPP or DOCD? The following general information must accompany your DPP or DOCD: (a) Applications and permits. (b) Drilling fluids. i.e., (c) Production. (1) Estimates of the average and peak rates of production for each type of production and the life of the reservoir(s) you intend to produce; and (2) The chemical and physical characteristics of the produced oil (see definition under 30 CFR 254.6) that you will handle or store at the facilities you will use to conduct your proposed development and production activities. (d) Chemical products. (e) New or unusual technology. (f) Bonds, oil spill financial responsibility, and well control statements. (1) The activities and facilities proposed in your DPP or DOCD are or will be covered by an appropriate bond under 30 CFR part 556, subpart I; (2) You have demonstrated or will demonstrate oil spill financial responsibility for facilities proposed in your DPP or DOCD, according to 30 CFR part 553; and (3) You have or will have the financial capability to drill a relief well and conduct other emergency well control operations. (g) Suspensions of production or operations. (h) Blowout scenario. (i) Contact. § 550.244 What geological and geophysical (G&G) information must accompany the DPP or DOCD? The following G&G information must accompany your DPP or DOCD: (a) Geological description. (b) Structure contour maps. (c) Two dimensional (2-D) or three-dimensional (3-D) seismic lines. (d) Geological cross-sections. (e) Shallow hazards report. (f) Shallow hazards assessment. (g) High resolution seismic lines. (h) Stratigraphic column. (i) Time-versus-depth chart. (j) Geochemical information. (k) Future G&G activities. § 550.245 What hydrogen sulfide (H 2 The following H 2 (a) Concentration. 2 (b) Classification. 2 2 2 (c) H 2 Contingency Plan. 2 2 2 2 (d) Modeling report. 2 (i) Model a potential worst case H 2 (ii) Include a modeling report or modeling results, or a reference to such report or results if you have already submitted it to the Regional Supervisor. (2) The analysis in the modeling report must be specific to the particular site of your development and production activities, and must consider any nearby human-occupied OCS facilities, shipping lanes, fishery areas, and other points where humans may be subject to potential exposure from an H 2 (3) If any H 2 § 550.246 What mineral resource conservation information must accompany the DPP or DOCD? The following mineral resource conservation information, as applicable, must accompany your DPP or DOCD: (a) Technology and reservoir engineering practices and procedures. (b) Technology and recovery practices and procedures. (c) Reservoir development. § 550.247 What biological, physical, and socioeconomic information must accompany the DPP or DOCD? If you obtain the following information in developing your DPP or DOCD, or if the Regional Supervisor requires you to obtain it, you must include a report, or the information obtained, or a reference to such a report or information if you have already submitted it to the Regional Supervisor, as accompanying information: (a) Biological environment reports. (b) Physical environment reports. (c) Socioeconomic study reports. § 550.248 What solid and liquid wastes and discharges information and cooling water intake information must accompany the DPP or DOCD? The following solid and liquid wastes and discharges information and cooling water intake information must accompany your DPP or DOCD: (a) Projected wastes. (1) The methods you used for determining this information; and (2) Your plans for treating, storing, and downhole disposal of these wastes at your facility location(s). (b) Projected ocean discharges. (1) A table showing the name, projected amount, and rate of discharge for each waste type; and (2) A description of the discharge method (such as shunting through a downpipe, adding to a produced water stream, etc. (c) National Pollutant Discharge Elimination System (NPDES) permit. (2) A copy of your application for an individual NPDES permit. Briefly describe the major discharges and methods you will use for compliance. (d) Modeling report. (e) Projected cooling water intake. § 550.249 What air emissions information must accompany the DPP or DOCD? The following air emissions information, as applicable, must accompany your DPP or DOCD: (a) Projected emissions. (1) For each source on or associated with the facility you will use to conduct your proposed development and production activities, you must list: (i) The projected peak hourly emissions; (ii) The total annual emissions in tons per year; (iii) Emissions over the duration of the proposed development and production activities; (iv) The frequency and duration of emissions; and (v) The total of all emissions listed in paragraph (a)(1)(i) through (iv) of this section. (2) If your proposed production and development activities would result in an increase in the emissions of a criteria air pollutant, VOC, or TSP from your facility to an amount greater than the amount specified in your previously approved DPP or DOCD, you must show the revised emission rates for each source as well as the incremental change for each source. (3) You must provide the basis for all calculations, including engine size and rating, and applicable operational information. (4) You must base the projected emissions on the maximum rated capacity of the equipment and the maximum throughput of the facility you will use to conduct your proposed development and production activities under its physical and operational design. (5) If the specific drilling unit has not yet been determined, you must use the maximum emission estimates for the type of drilling unit you will use. (b) Emission reduction measures. (c) Processes, equipment, fuels, and combustibles. (d) Distance to shore. (e) Non-exempt facilities. (f) Modeling report. [76 FR 64623, Oct. 18, 2011, as amended at 85 FR 34936, June 5, 2020] § 550.250 What oil and hazardous substance spills information must accompany the DPP or DOCD? The following information regarding potential spills of oil (see definition under 30 CFR 254.6) and hazardous substances (see definition under 40 CFR part 116), as applicable, must accompany your DPP or DOCD: (a) Oil spill response planning. (1) An Oil Spill Response Plan (OSRP) for the facilities you will use to conduct your proposed development and production activities prepared according to the requirements of 30 CFR part 254, subpart B; or (2) Reference to your approved regional OSRP (see 30 CFR 254.3) to include: (i) A discussion of your regional OSRP; (ii) The location of your primary oil spill equipment base and staging area; (iii) The name(s) of your oil spill removal organization(s) for both equipment and personnel; (iv) The calculated volume of your worst case discharge scenario (see 30 CFR 254.26(a)), and a comparison of the appropriate worst case discharge scenario in your approved regional OSRP with the worst case discharge scenario that could result from your proposed development and production activities; and (v) A description of the worst case oil spill scenario that could result from your proposed development and production activities (see 30 CFR 254.26(b), (c), (d), and (e)). (b) Modeling report. § 550.251 If I propose activities in the Alaska OCS Region, what planning information must accompany the DPP? If you propose development and production activities in the Alaska OCS Region, the following planning information must accompany your DPP: (a) Emergency plans. (b) Critical operations and curtailment procedures. § 550.252 What environmental monitoring information must accompany the DPP or DOCD? The following environmental monitoring information, as applicable, must accompany your DPP or DOCD: (a) Monitoring systems. (b) Incidental takes. (1) Threatened and endangered species listed under the ESA; and (2) Marine mammals, as appropriate, if you have not already received authorization for incidental take of marine mammals as may be necessary under the MMPA. (c) Flower Garden Banks National Marine Sanctuary (FGBNMS). § 550.253 What lease stipulations information must accompany the DPP or DOCD? A description of the measures you took, or will take, to satisfy the conditions of lease stipulations related to your proposed development and production activities must accompany your DPP or DOCD. § 550.254 What mitigation measures information must accompany the DPP or DOCD? (a) If you propose to use any measures beyond those required by the regulations in this part to minimize or mitigate environmental impacts from your proposed development and production activities, a description of the measures you will use must accompany your DPP or DOCD. (b) If there is reason to believe that protected species may be incidentally taken by planned development and production activities, you must include mitigation measures designed to avoid or minimize that incidental take of: (1) Threatened and endangered species listed under the ESA; and (2) Marine mammals, as appropriate, if you have not already received authorization for incidental take as may be necessary under the MMPA. § 550.255 What decommissioning information must accompany the DPP or DOCD? A brief description of how you intend to decommission your wells, platforms, pipelines, and other facilities, and clear your site(s) must accompany your DPP or DOCD. § 550.256 What related facilities and operations information must accompany the DPP or DOCD? The following information regarding facilities and operations directly related to your proposed development and production activities must accompany your DPP or DOCD. (a) OCS facilities and operations. (1) Drilling units; (2) Production platforms; (3) Right-of-way pipelines (including those that transport chemical products and produced water); and (4) Other facilities and operations located on the OCS (regardless of ownership). (b) Transportation system. (1) Routes of any new pipelines; (2) Information concerning barges and shuttle tankers, including the storage capacity of the transport vessel(s), and the number of transfers that will take place per year; (3) Information concerning any intermediate storage or processing facilities; (4) An estimate of the quantities of oil, gas, or sulphur to be transported from your production facilities; and (5) A description and location of the primary onshore terminal. § 550.257 What information on the support vessels, offshore vehicles, and aircraft you will use must accompany the DPP or DOCD? The following information on the support vessels, offshore vehicles, and aircraft you will use must accompany your DPP or DOCD: (a) General. (b) Air emissions. (c) Drilling fluids and chemical products transportation. (d) Solid and liquid wastes transportation. (e) Vicinity map. § 550.258 What information on the onshore support facilities you will use must accompany the DPP or DOCD? The following information on the onshore support facilities you will use must accompany your DPP or DOCD: (a) General. (1) Indicate whether the onshore support facilities are existing, to be constructed, or to be expanded; and (2) For DPPs only, provide a timetable for acquiring lands (including rights-of-way and easements) and constructing or expanding any of the onshore support facilities. (b) Air emissions. (c) Unusual solid and liquid wastes. (d) Waste disposal. § 550.259 What sulphur operations information must accompany the DPP or DOCD? If you are proposing to conduct sulphur development and production activities, the following information must accompany your DPP or DOCD: (a) Bleedwater. (b) Subsidence. § 550.260 What Coastal Zone Management Act (CZMA) information must accompany the DPP or DOCD? The following CZMA information must accompany your DPP or DOCD: (a) Consistency certification. (b) Other information. § 550.261 What environmental impact analysis (EIA) information must accompany the DPP or DOCD? The following EIA information must accompany your DPP or DOCD: (a) General requirements. (1) Assess the potential environmental impacts of your proposed development and production activities; (2) Be project specific; and (3) Be as detailed as necessary to assist the Regional Supervisor in complying with the NEPA of 1969 (42 U.S.C. 4321 et seq. (b) Resources, conditions, and activities. (1) Meteorology, oceanography, geology, and shallow geological or manmade hazards; (2) Air and water quality; (3) Benthic communities, marine mammals, sea turtles, coastal and marine birds, fish and shellfish, and plant life; (4) Threatened or endangered species and their critical habitat; (5) Sensitive biological resources or habitats such as essential fish habitat, refuges, preserves, special management areas identified in coastal management programs, sanctuaries, rookeries, and calving grounds; (6) Archaeological resources; (7) Socioeconomic resources (including the approximate number, timing, and duration of employment of persons engaged in onshore support and construction activities), population (including the approximate number of people and families added to local onshore areas), existing offshore and onshore infrastructure (including major sources of supplies, services, energy, and water), types of contractors or vendors that may place a demand on local goods and services, land use, subsistence resources and harvest practices, recreation, recreational and commercial fishing (including seasons, location, and type), minority and lower income groups, and CZMA programs; (8) Coastal and marine uses such as military activities, shipping, and mineral exploration or development; and (9) Other resources, conditions, and activities identified by the Regional Supervisor. (c) Environmental impacts. (1) Analyze the potential direct and indirect impacts (including those from accidents, cooling water intake structures, and those identified in relevant ESA biological opinions such as, but not limited to, those from noise, vessel collisions, and marine trash and debris) that your proposed development and production activities will have on the identified resources, conditions, and activities; (2) Describe the type, severity, and duration of these potential impacts and their biological, physical, and other consequences and implications; (3) Describe potential measures to minimize or mitigate these potential impacts; (4) Describe any alternatives to your proposed development and production activities that you considered while developing your DPP or DOCD, and compare the potential environmental impacts; and (5) Summarize the information you incorporate by reference. (d) Consultation. (e) References cited. § 550.262 What administrative information must accompany the DPP or DOCD? The following administrative information must accompany your DPP or DOCD: (a) Exempted information description (public information copies only). (b) Bibliography. (2) The location(s) where the Regional Supervisor can inspect the cited referenced material if you have not submitted it. Review and Decision Process for the DPP or DOCD § 550.266 After receiving the DPP or DOCD, what will BOEM do? (a) Determine whether deemed submitted. (1) The submitted information, including the information that must accompany the DPP or DOCD (refer to the list in § 550.242), fulfills requirements and is sufficiently accurate; (2) You have provided all needed additional information (see § 550.201(b)); and (3) You have provided the required number of copies (see § 550.206(a)). (b) Identify problems and deficiencies. (c) Deemed submitted notification. § 550.267 What actions will BOEM take after the DPP or DOCD is deemed submitted? (a) State, local government, CZMA consistency, and other reviews. (1) The Governor of each affected State. (2) The executive of any affected local government who requests a copy. (3) The CZMA agency of each affected State. (b) General public. (c) BOEM compliance review. (d) Amendments. § 550.268 How does BOEM respond to recommendations? (a) Governor. (b) Local governments and the public. (c) Availability. § 550.269 How will BOEM evaluate the environmental impacts of the DPP or DOCD? The Regional Supervisor will evaluate the environmental impacts of the activities described in your proposed DPP or DOCD and prepare environmental documentation under the National Environmental Policy Act (NEPA) (42 U.S.C.4321 et seq. (a) Environmental impact statement (EIS) declaration. (b) Leases or units in the vicinity. (c) Draft EIS. § 550.270 What decisions will BOEM make on the DPP or DOCD and within what timeframe? (a) Timeframe. (1) The Regional Supervisor will make a decision within 60 calendar days after the latest of the day that: (i) The comment period provided in § 550.267(a)(1), (a)(2), and (b) closes; (ii) The final EIS for a DPP is released or adopted; or (iii) The last amendment to your proposed DOCD is received by the Regional Supervisor. (2) Notwithstanding paragraph (a)(1) of this section, BOEM will not approve your DPP or DOCD until either: (i) All affected States with approved CZMA programs concur, or have been conclusively presumed to concur, with your DPP or DOCD consistency certification under section 307(c)(3)(B)(i) and (ii) of the CZMA (16 U.S.C. 1456(c)(3)(B)(i) and (ii)); or (ii) The Secretary of Commerce has made a finding authorized by section 307(c)(3)(B)(iii) of the CZMA (16 U.S.C. 1456(c)(3)(B)(iii)) that each activity described in the DPP or DOCD is consistent with the objectives of the CZMA, or is otherwise necessary in the interest of National security. (b) BOEM decision. The regional supervisor will . . . If . . . And then . . . (1) Approve your DPP or DOCD, It complies with all applicable requirements, The Regional Supervisor will notify you in writing of the decision and may require you to meet certain conditions, including those to provide monitoring information. (2) Require you to modify your proposed DPP or DOCD, It fails to make adequate provisions for safety, environmental protection, or conservation of natural resources or otherwise does not comply with the lease, the Act, the regulations prescribed under the Act, or other Federal laws, The Regional Supervisor will notify you in writing of the decision and describe the modifications you must make to your proposed DPP or DOCD to ensure it complies with all applicable requirements. (3) Disapprove your DPP or DOCD, Any of the reasons in § 550.271 apply, (i) The Regional Supervisor will notify you in writing of the decision and describe the reason(s) for disapproving your DPP or DOCD; and § 550.271 For what reasons will BOEM disapprove the DPP or DOCD? The Regional Supervisor will disapprove your proposed DPP or DOCD if one of the four reasons in this section applies: (a) Non-compliance. (b) No consistency concurrence. (2) An affected State objects to your coastal zone consistency certification, and the Secretary of Commerce, under section 307(c)(3)(B)(iii) of the CZMA (16 U.S.C. 1456(c)(3)(B)(iii)), has not found that each activity described in the DPP or DOCD is consistent with the objectives of the CZMA or is otherwise necessary in the interest of National security. (3) If the Regional Supervisor disapproved your DPP or DOCD for the sole reason that an affected State either has not yet issued a final decision on, or has objected to, your coastal zone consistency certification (see paragraphs (b)(1) and (2) in this section), the Regional Supervisor will approve your DPP or DOCD upon receipt of concurrence by the affected State, at the time concurrence of the affected State is conclusively presumed, or when the Secretary of Commerce makes a finding authorized by section 307(c)(3)(B)(iii) of the CZMA (16 U.S.C. 1456(c)(3)(B)(iii)) that each activity described in your DPP or DOCD is consistent with the objectives of the CZMA, or is otherwise necessary in the interest of National security. In that event, you do not need to resubmit your DPP or DOCD for approval under § 550.273(b). (c) National security or defense conflicts. (d) Exceptional circumstances. (1) Implementing your DPP or DOCD would cause serious harm or damage to life (including fish and other aquatic life), property, any mineral deposits (in areas leased or not leased), the National security or defense, or the marine, coastal, or human environment; (2) The threat of harm or damage will not disappear or decrease to an acceptable extent within a reasonable period of time; and (3) The advantages of disapproving your DPP or DOCD outweigh the advantages of development and production. § 550.272 If a State objects to the DPP's or DOCD's coastal zone consistency certification, what can I do? If an affected State objects to the coastal zone consistency certification accompanying your proposed or disapproved DPP or DOCD, you may do one of the following: (a) Amend or resubmit your DPP or DOCD. (b) Appeal. (1) Grant your appeal by finding under section 307(c)(3)(B)(iii) of the CZMA (16 U.S.C.1456(c)(3)(B)(iii)) that each activity described in detail in your DPP or DOCD is consistent with the objectives of the CZMA, or is otherwise necessary in the interest of National security; or (2) Deny your appeal, in which case you may amend or resubmit your DPP or DOCD, as described in paragraph (a) of this section. (c) Withdraw your DPP or DOCD. § 550.273 How do I submit a modified DPP or DOCD or resubmit a disapproved DPP or DOCD? (a) Modified DPP or DOCD. (b) Resubmitted DPP or DOCD. (c) BOEM review and timeframe. Post-Approval Requirements for the EP, DPP, and DOCD § 550.280 How must I conduct activities under the approved EP, DPP, or DOCD? (a) Compliance. (1) You may be subject to BOEM enforcement action, including civil penalties; and (2) The lease(s) involved in your EP, DPP, or DOCD may be forfeited or cancelled under 43 U.S.C. 1334(c) or (d). If this happens, you will not be entitled to compensation under § 550.185(b) and 30 CFR 556.77. (b) Emergencies. § 550.281 What must I do to conduct activities under the approved EP, DPP, or DOCD? (a) Approvals and permits. (1) Approval of applications for permits to drill (APDs) (see 30 CFR 250.410); (2) Approval of production safety systems (see 30 CFR 250.800); (3) Approval of new platforms and other structures (or major modifications to platforms and other structures) (see 30 CFR 250.905); (4) Approval of applications to install lease term pipelines (see 30 CFR 250.1007); and (5) Other permits, as required by applicable law. (b) Conformance. (c) Separate State CZMA consistency review. (d) Approval restrictions for permits for activities conducted under EPs. (1) All affected States with approved coastal zone management programs concur, or are conclusively presumed to concur, with the coastal zone consistency certification accompanying your EP under section 307(c)(3)(B)(i) and (ii) of the CZMA (16 U.S.C. 1456(c)(3)(B)(i) and (ii)); or (2) The Secretary of Commerce finds, under section 307(c)(3)(B)(iii) of the CZMA (16 U.S.C.1456(c)(3)(B)(iii)) that each activity covered by the EP is consistent with the objectives of the CZMA or is otherwise necessary in the interest of National security; (3) If an affected State objects to the coastal zone consistency certification accompanying your approved EP after BOEM has approved your EP, you may either: (i) Revise your EP to accommodate the State's objection and submit the revision to the Regional Supervisor for approval; or (ii) Appeal the State's objection to the Secretary of Commerce using the procedures in 15 CFR part 930, subpart H. The Secretary of Commerce will either: (A) Grant your appeal by making the finding described in paragraph (d)(2) of this section; or (B) Deny your appeal, in which case you may revise your EP as described in paragraph (d)(3)(i) of this section. § 550.282 Do I have to conduct post-approval monitoring? After approving your EP, DPP, or DOCD, the Regional Supervisor may direct you to conduct monitoring programs, including monitoring in accordance with the ESA and the MMPA. You must retain copies of all monitoring data obtained or derived from your monitoring programs and make them available to the BOEM upon request. The Regional Supervisor may require you to: (a) Monitoring plans. (b) Monitoring reports. § 550.283 When must I revise or supplement the approved EP, DPP, or DOCD? (a) Revised OCS plans. (1) Change the type of drilling rig (e.g., jack-up, platform rig, barge, submersible, semisubmersible, or drillship), production facility (e.g., caisson, fixed platform with piles, tension leg platform), or transportation mode (e.g., pipeline, barge); (2) Change the surface location of a well or production platform by a distance more than that specified by the Regional Supervisor; (3) Change the type of production or significantly increase the volume of production or storage capacity; (4) Increase the emissions of an criteria air pollutant, VOC, or TSP to an amount that exceeds the amount specified in your approved EP, DPP, or DOCD; (5) Significantly increase the amount of solid or liquid wastes to be handled or discharged; (6) Request a new H 2 2 (7) Change the location of your onshore support base either from one State to another or to a new base or a base requiring expansion; or (8) Change any other activity specified by the Regional Supervisor. (b) Supplemental OCS plans. [76 FR 64623, Oct. 18, 2011, as amended at 85 FR 34936, June 5, 2020] § 550.284 How will BOEM require revisions to the approved EP, DPP, or DOCD? (a) Periodic review. (b) Results of review. § 550.285 How do I submit revised and supplemental EPs, DPPs, and DOCDs? (a) Submittal. (b) Information. (c) Procedures. §§ 550.286-550.295 [Reserved] Conservation Information Documents (CID) § 550.296 When and how must I submit a CID or a revision to a CID? (a) You must submit one original and two copies of a CID to the appropriate OCS Region at the same time you first submit your DOCD or DPP for any development of a lease or leases located in water depths greater than 400 meters (1,312 feet). You must also submit a CID for a Supplemental DOCD or DPP when requested by the Regional Supervisor. The submission of your CID must be accompanied by payment of the service fee listed in § 550.125. (b) If you decide not to develop a reservoir you committed to develop in your CID, you must submit one original and two copies of a revision to the CID to the appropriate OCS Region. The revision to the CID must be submitted within 14 calendar days after making your decision not to develop the reservoir and before the reservoir is bypassed. The Regional Supervisor will approve or disapprove any such revision to the original CID. If the Regional Supervisor disapproves the revision, you must develop the reservoir as described in the original CID. § 550.297 What information must a CID contain? (a) You must base the CID on wells drilled before your CID submittal that define the extent of the reservoirs. You must notify BOEM of any well that is drilled to total depth during the CID evaluation period and you may be required to update your CID. (b) You must include all of the following information if available. Information must be provided for each hydrocarbon-bearing reservoir that is penetrated by a well that would meet the producibility requirements of § 550.115 or § 550.116: (1) General discussion of the overall development of the reservoir; (2) Summary spreadsheets of well log data and reservoir parameters ( i.e., (3) Appropriate well logs, including digital well log ( i.e., (4) Sidewall core/whole core and pressure-volume-temperature analysis; (5) Structure maps, with the existing and proposed penetration points and subsea depths for all wells penetrating the reservoirs, fluid contacts (or the lowest or highest known levels in the absence of actual contacts), reservoir boundaries, and the scale of the map; (6) Interpreted structural cross sections and corresponding interpreted seismic lines or block diagrams, as necessary, that include all current wellbores and planned wellbores on the leases or units to be developed, the reservoir boundaries, fluid contacts, depth scale, stratigraphic positions, and relative biostratigraphic ages; (7) Isopach maps of each reservoir showing the net feet of pay for each well within the reservoir identified at the penetration point, along with the well name, labeled contours, and scale; (8) Estimates of original oil and gas in-place and anticipated recoverable oil and gas reserves, all reservoir parameters, and risk factors and assumptions; (9) Plat map at the same scale as the structure maps with existing and proposed well paths, as well as existing and proposed penetrations; (10) Wellbore schematics indicating proposed perforations; (11) Proposed wellbore utility chart showing all existing and proposed wells, with proposed completion intervals indicated for each borehole; (12) Appropriate pressure data, specified by date, and whether estimated or measured; (13) Description of reservoir development strategies; (14) Description of the enhanced recovery practices you will use or, if you do not plan to use such practices, an explanation of the methods you considered and reasons you do not intend to use them; (15) For each reservoir you do not intend to develop: (i) A statement explaining the reason(s) you will not develop the reservoir, and (ii) Economic justification, including costs, recoverable reserve estimate, production profiles, and pricing assumptions; and (16) Any other appropriate data you used in performing your reservoir evaluations and preparing your reservoir development strategies. § 550.298 How long will BOEM take to evaluate and make a decision on the CID? (a) The Regional Supervisor will make a decision within 150 calendar days of receiving your CID. If BOEM does not act within 150 calendar days, your CID is considered approved. (b) BOEM may suspend the 150-calendar-day evaluation period if there is missing, inconclusive, or inaccurate data, or when a well reaches total depth during the evaluation period. BOEM may also suspend the evaluation period when a well penetrating a hydrocarbon-bearing structure reaches total depth during the evaluation period and the data from that well is needed for the CID. You will receive written notification from the Regional Supervisor describing the additional information that is needed, and the evaluation period will resume once BOEM receives the requested information. (c) The Regional Supervisor will approve or deny your CID request based on your commitment to develop economically producible reservoirs according to sound conservation, engineering, and economic practices. § 550.299 What operations require approval of the CID? You may not begin production before you receive BOEM approval of the CID. Subpart C—Pollution Prevention and Control §§ 550.300-550.301 [Reserved] § 550.302 Definitions concerning air quality. For purposes of §§ 550.303 and 550.304 of this part: Attainment area Best available control technology (BACT) Criteria air pollutant Emission exemption threshold Emission offsets Existing facility, Facility National Ambient Air Quality Standard Nonattainment area Projected emissions Source Temporary facility Volatile organic compound (VOC) [76 FR 64623, Oct. 18, 2011, as amended at 85 FR 34936, June 5, 2020] § 550.303 Facilities described in a new or revised Exploration Plan, Development and Production Plan, or Development Operations Coordination Document. (a) New plans. (b) Applicability of § 550.303 to existing facilities. (2) For a facility identified by the Regional Supervisor in paragraph (b)(1) of this section, the Regional Supervisor shall require the lessee to refer to the information required in § 550.218 or § 550.249 of this part and to submit only that information required to make the necessary findings under paragraphs (d) through (i) of this section. The lessee shall submit this information within 120 days of the Regional Supervisor's determination or within a longer period of time at the discretion of the Regional Supervisor. The lessee shall comply with the requirements of this section as necessary. (c) Revised facilities. (d) Exemption formulas. 2/3 2 X 2 X, (e) Significance levels (SLs). Table 1 to Paragraph (e)(1) Averaging time 1 hour 3 3 hour 3 8 hour 3 24 hour 3 Annual 3 Criteria Air Pollutant: Sulfur Dioxide 25.0 5.0 1.0 PM 10 5.0 1.0 PM 2.5 1.2 0.3 Nitrogen Dioxide 1 1.0 Carbon Monoxide 2.0 0.5 1 2 X (2) In the event that the emissions of TSP exceed the EET for TSP, the lessee must use a BOEM approved air quality model to determine whether the projected emissions from the facility result in an onshore ambient air concentration above the SL for either PM 10 2.5 (f) Significance determinations. (2) The projected emissions of VOC from any facility which is not exempt under paragraph (d) of this section will be deemed to significantly affect the air quality of the onshore area for VOC. (g) Controls required. (2) The projected emissions of any criteria air pollutant from any facility which significantly affect the air quality of an attainment or unclassifiable area shall be reduced through the application of BACT. (i)(A) Except for temporary facilities, the lessee also shall use an approved air quality model to determine whether the emissions of TSP or SO 2 Maximum Allowable Concentration Increases [µg/m 3 Air pollutant Averaging times Annual mean 1 24-hour 3-hour Class I: TSP 5 10 SO 2 2 5 25 Class II: TSP 19 37 SO 2 20 91 512 Class III: TSP 37 75 SO 2 40 182 700 1 2 (B) No concentration of an criteria air pollutant shall exceed the concentration permitted under the national secondary ambient air quality standard or the concentration permitted under the national primary air quality standard, whichever concentration is lowest for the criteria air pollutant for the period of exposure. For any period other than the annual period, the applicable maximum allowable increase may be exceeded during one such period per year at any one onshore location. (ii) If the maximum allowable increases are exceeded, the lessee shall apply whatever additional emission controls are necessary to reduce or offset the remaining emissions of TSP or SO 2 (3)(i) The projected emissions of VOC from any facility, except a temporary facility, which significantly affect the onshore air quality of a nonattainment area shall be fully reduced. This shall be done through the application of BACT and, if additional reductions are necessary, through the application of additional emission controls or through the acquisition of offshore or onshore offsets. (ii) The projected emissions of VOC from any facility which significantly affect the onshore air quality of an attainment area shall be reduced through the application of BACT. (4)(i) If projected emissions from a facility significantly affect the onshore air quality of both a nonattainment and an attainment or unclassifiable area, the regulatory requirements applicable to projected emissions significantly affecting a nonattainment area shall apply. (ii) If projected emissions from a facility significantly affect the onshore air quality of more than one class of attainment area, the lessee must reduce projected emissions to meet the maximum allowable increases specified for each class in paragraph (g)(2)(i) of this section. (h) Controls required on temporary facilities. (i) Emission offsets. (j) Review of facilities with emissions below the emission exemption thresholds. (k) Emission monitoring requirements. (l) Collection of meteorological data. [76 FR 64623, Oct. 18, 2011, as amended at 85 FR 34937, June 5, 2020] § 550.304 Existing facilities. (a) Process leading to review of an existing facility. (2) The Regional Supervisor may require lessees of existing facilities to submit basic emission data to a State submitting a request under paragraph (a)(1) of this section. (3) The State submitting a request under paragraph (a)(1) of this section may submit information from its emission inventory which indicates that emissions from existing facilities may be significantly affecting the air quality of the onshore area of the State. The lessee shall be given the opportunity to present information to the Regional Supervisor which demonstrates that the facility is not significantly affecting the air quality of the State. (4) The Regional Supervisor shall evaluate the information submitted under paragraph (a)(3) of this section and shall determine, based on the basic emission data, available meteorological data, and the distance of the facility or facilities from the onshore area, whether any existing facility has the potential to significantly affect the air quality of the onshore area of the State. (5) If the Regional Supervisor determines that no existing facility has the potential to significantly affect the air quality of the onshore area of the State submitting information under paragraph (a)(3) of this section, the Regional Supervisor shall notify the State of and explain the reasons for this finding. (6) If the Regional Supervisor determines that an existing facility has the potential to significantly affect the air quality of an onshore area of the State submitting information under paragraph (a)(3) of this section, the Regional Supervisor shall require the lessee to refer to the information requirements under § 550.218 or § 550.249 of this part and submit only that information required to make the necessary findings under paragraphs (b) through (e) of this section. The lessee shall submit this information within 120 days of the Regional Supervisor's determination or within a longer period of time at the discretion of the Regional Supervisor. The lessee shall comply with the requirements of this section as necessary. (b) Exemption formulas. 2/3 2 X 2 X (c) Significance levels. 10 2.5. (d) Significance determinations. (2) The projected emissions of VOC from any facility, which is not exempt under paragraph (b) of this section, will be deemed to significantly affect the air quality of the onshore area for VOC. (e) Controls required. (2) The lessee shall submit a compliance schedule for the application of BACT. If it is necessary to cease operations to allow for the installation of emission controls, the lessee may apply for a suspension of operations under the provisions of 30 CFR 250.174. (f) Review of facilities with emissions below the emission exemption thresholds. (g) Emission monitoring requirements. (h) Collection of meteorological data. [76 FR 64623, Oct. 18, 2011, as amended at 85 FR 34937, June 5, 2020] Subpart D—Leasing Maps and Diagrams § 550.400 Leasing maps and diagrams. (a) Any area of the OCS, which has been appropriately platted as provided in paragraph (b) of this section, may be leased for any mineral not included in an existing lease issued under the Act or meeting the requirements of subsection (a) of section 6 of the Act. Before any lease is offered or issued an area may be: (1) Withdrawn from disposition pursuant to section 12(a) of the Act; or (2) Designated as an area or part of an area restricted from operation under section 12(d) of the Act. (b) BOEM will prepare leasing maps and official protraction diagrams of areas of the OCS. The areas included in each mineral lease will be in accordance with the appropriate leasing map or official protraction diagram. [81 FR 18152, Mar. 30, 2016] Subparts E-I [Reserved] Subpart J—Pipelines and Pipeline Rights-of-Way § 550.1011 Financial assurance requirements for pipeline right-of-way (ROW) grant holders. (a) Except as provided in paragraph (b) of this section, when you apply for, attempt to assign, or are the holder of a pipeline right-of-way (ROW) grant, you must furnish and maintain $300,000 of area-wide financial assurance that guarantees compliance with the regulations and the terms and conditions of all the pipeline ROW grants you hold in an OCS area as defined in § 556.900(b) of this subchapter. The requirement to furnish and maintain area-wide financial assurance for a pipeline ROW grant is separate and distinct from the requirement to provide financial assurance for a lease or right-of-use and easement (RUE). (b) The requirement to furnish and maintain area-wide pipeline ROW financial assurance under paragraph (a) of this section may be satisfied if your operator or a co-grant holder provides such financial assurance in the required amount that guarantees compliance with the regulations and the terms and conditions of the grant. (c) The requirements for lease financial assurance in §§ 556.900(d) through (g) and 556.902 of this subchapter apply to the area-wide financial assurance required in paragraph (a) of this section. (d) The Regional Director, using the criteria set forth in § 556.901(d)(1) through (3) of this subchapter, will evaluate your financial ability to carry out present and future obligations, and as a result, may require supplemental financial assurance ( i.e., (e) The supplemental financial assurance required under paragraph (d) of this section 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 ROW grants and with applicable BOEM and BSEE orders. (f) 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 pipeline ROW; and/or (3) Initiate action for forfeiture of your pipeline ROW grant in accordance with § 250.1013 of this title. [89 FR 31590, Apr. 24, 2024] Subpart K—Oil and Gas Production Requirements. Well Tests and Surveys § 550.1153 When must I conduct a static bottomhole pressure survey? (a) You must conduct a static bottomhole pressure survey under the following conditions: If you have . . . Then you must conduct . . . (1) A new producing reservoir, A static bottomhole pressure survey within 90 days after the date of first continuous production. (2) A reservoir with three or more producing completions, Annual static bottomhole pressure surveys in a sufficient number of key wells to establish an average reservoir pressure. The Regional Supervisor may require that bottomhole pressure surveys be performed on specific wells. (b) Your bottomhole pressure survey must meet the following requirements: (1) You must shut-in the well for a minimum period of 4 hours to ensure stabilized conditions; and (2) The bottomhole pressure survey must consist of a pressure measurement at mid-perforation, and pressure measurements and gradient information for at least four gradient stops coming out of the hole. (c) You must submit to the Regional Supervisor the results of all static bottomhole pressure surveys on Form BOEM-140, Bottomhole Pressure Survey Report, within 60 days after the date of the survey. (d) The Regional Supervisor may grant a departure from the requirement to run a static bottomhole pressure survey. To request a departure, you must submit a justification, along with Form BOEM-0140, Bottomhole Pressure Survey Report, showing a calculated bottomhole pressure or any measured data. [76 FR 64623, Oct. 18, 2011, as amended at 80 FR 57096, Sept. 22, 2015] Classifying Reservoirs § 550.1154 How do I determine if my reservoir is sensitive? (a) You must determine whether each reservoir is sensitive. You must classify the reservoir as sensitive if: (1) Under initial conditions it is an oil reservoir with an associated gas cap; (2) At any time there are near-critical fluids; or (3) The reservoir is undergoing enhanced recovery. (b) For the purposes of this subpart, near-critical fluids are: (1) Those fluids that occur in high temperature, high-pressure reservoirs where it is not possible to define the liquid-gas contact; or (2) Fluids in reservoirs that are near bubble point or dew point conditions. (c) The Regional Supervisor may reclassify a reservoir when available information warrants reclassification. (d) If available information indicates that a reservoir previously classified as non-sensitive is now sensitive, you must submit a request to the Regional Supervisor to reclassify the reservoir. You must include supporting information, as listed in the table in § 550.1167, with your request. (e) If information indicates that a reservoir previously classified as sensitive is now non-sensitive, you may submit a request to the Regional Supervisor to reclassify the reservoir. You must include supporting information, as listed in the table in § 550.1167, with your request. § 550.1155 What information must I submit for sensitive reservoirs? You must submit to the Regional Supervisor an original and two copies of Form BOEM-0127; one of the copies must be a public information copy in accordance with §§ 550.186 and 550.197, and marked “Public Information.” You must also submit two copies of the supporting information, as listed in the table in § 550.1167. You must submit this information: (a) Within 45 days after beginning production from the reservoir or discovering that it is sensitive; (b) At least once during the calendar year, but you do not need to resubmit unrevised structure maps (§ 550.1167(a)(2)) or previously submitted well logs (§ 550.1167(c)(1)); (c) Within 45 days after you revise reservoir parameters; and (d) Within 45 days after the Regional Supervisor classifies the reservoir as sensitive under § 550.1154(c). Other Requirements § 550.1165 What must I do for enhanced recovery operations? (a) [Reserved] (b) Before initiating enhanced recovery operations, you must submit a proposed plan to the BSEE Regional Supervisor and receive approval for pressure maintenance, secondary or tertiary recovery, cycling, and similar recovery operations intended to increase the ultimate recovery of oil and gas from a reservoir. The proposed plan must include, for each project reservoir, a geologic and engineering overview, Form BOEM-0127 (submitted to BOEM) and supporting data as required in § 550.1167, 30 CFR 250.1167, and any additional information required by the BSEE Regional Supervisor. (c) [Reserved] § 550.1166 What additional reporting is required for developments in the Alaska OCS Region? (a)-(b) [Reserved] (c) Every time you are required to submit Form BOEM-0127 under § 550.1155, you must request an MER for each producing sensitive reservoir in the Alaska OCS Region, unless otherwise instructed by the Regional Supervisor. § 550.1167 What information must I submit with forms and for approvals? You must submit the supporting information listed in the following table with the form identified in column 1 and for the approval required under this subpart identified in column 2: SRI BOEM-0127 Reservoir reclassification (a) Maps: (1) Base map with surface, bottomhole, and completion locations with respect to the unit or lease line and the orientation of representative seismic lines or cross-sections (2) Structure maps with penetration point and subsea depth for each well penetrating the reservoirs, highlighting subject wells; reservoir boundaries; and original and current fluid levels √ √ (3) Net sand isopach with total net sand penetrated for each well, identified at the penetration point * (4) Net hydrocarbon isopach with net feet of pay for each well, identified at the penetration point * (b) Seismic data: (1) Representative seismic lines, including strike and dip lines that confirm the structure; indicate polarity (2) Amplitude extraction of seismic horizon, if applicable √ (c) Logs: (1) Well log sections with tops and bottoms of the reservoir(s) and proposed or existing perforations √ √ (2) Structural cross-sections showing the subject well and nearby wells √ (d) Engineering data: (1) Estimated recoverable reserves for each well completion in the reservoir; total recoverable reserves for each reservoir; method of calculation; reservoir parameters used in volumetric and decline curve analysis √ (2) Well schematics showing current and proposed conditions (3) The drive mechanism of each reservoir √ √ (4) Pressure data, by date, and whether they are estimated or measured √ (5) Production data and decline curve analysis indicative of the reservoir performance √ (6) Reservoir simulation with the reservoir parameters used, history matches, and prediction runs (include proposed development scenario) * (e) General information: (1) Detailed economic analysis (2) Reservoir name and whether or not it is competitive as defined under § 250.105 √ √ (3) Operator name, lessee name(s), block, lease number, royalty rate, and unit number (if applicable) of all relevant leases (4) Geologic overview of project √ (5) Explanation of why the proposed completion scenario will maximize ultimate recovery (6) List of all wells in subject reservoirs that have ever produced or been used for injection √ √ Required. * Additional items the Regional Supervisor may request. Note: All maps must be at a standard scale and show lease and unit lines. The Regional Supervisor may waive submittal of some of the required data on a case-by-case basis. (f) Depending on the type of approval requested, you must submit the appropriate payment of the service fee(s) listed in § 550.125, according to the instructions in § 550.126. Subparts L-M [Reserved] Subpart N—Outer Continental Shelf Civil Penalties Outer Continental Shelf Lands Act Civil Penalties § 550.1400 How does BOEM begin the civil penalty process? This subpart explains BOEM's civil penalty procedures whenever a lessee, operator or other person engaged in oil, gas, sulphur or other minerals operations in the OCS has a violation. Whenever BOEM determines, on the basis of available evidence, that a violation occurred and a civil penalty review is appropriate, it will prepare a case file. BOEM will appoint a Reviewing Officer. § 550.1401 Index table. The following table is an index of the sections in this subpart: (a) Definitions § 550.1402 (b) What is the maximum civil penalty? § 550.1403 (c) Which violations will BOEM review for potential civil penalties? § 550.1404 (d) When is a case file developed? § 550.1405 (e) When will BOEM notify me and provide penalty information? § 550.1406 (f) How do I respond to the letter of notification? § 550.1407 (g) When will I be notified of the Reviewing Officer's decision? § 550.1408 (h) What are my appeal rights? § 550.1409 § 550.1402 Definitions. Terms used in this subpart have the following meaning: Case file Civil penalty Reviewing Officer Violation Violator § 550.1403 What is the maximum civil penalty? The maximum civil penalty is $55,764 per day per violation. [90 FR 2614, Jan. 13, 2025] § 550.1404 Which violations will BOEM review for potential civil penalties? BOEM will review each of the following violations for potential civil penalties: (a) Violations that you do not correct within the period BOEM grants; (b)-(c) [Reserved] (d) Violations of the oil spill financial responsibility requirements at 30 CFR part 553. § 550.1405 When is a case file developed? BOEM will develop a case file during its investigation of the violation, and forward it to a Reviewing Officer if any of the conditions in § 550.1404 exist. The Reviewing Officer will review the case file and determine if a civil penalty is appropriate. The Reviewing Officer may administer oaths and issue subpoenas requiring witnesses to attend meetings, submit depositions, or produce evidence. § 550.1406 When will BOEM notify me and provide penalty information? If the Reviewing Officer determines that a civil penalty should be assessed, the Reviewing Officer will send the violator a letter of notification. The letter of notification will include: (a) The amount of the proposed civil penalty; (b) Information on the violation(s); and (c) Instruction on how to obtain a copy of the case file, schedule a meeting, submit information, or pay the penalty. § 550.1407 How do I respond to the letter of notification? You have 30 calendar days after you receive the Reviewing Officer's letter to either: (a) Request, in writing, a meeting with the Reviewing Officer; (b) Submit additional information; or (c) Pay the proposed civil penalty. § 550.1408 When will I be notified of the Reviewing Officer's decision? At the end of the 30 calendar days or after the meeting and submittal of additional information, the Reviewing Officer will review the case file, including all information you submitted, and send you a decision. The decision will include the amount of any final civil penalty, the basis for the civil penalty, and instructions for paying or appealing the civil penalty. § 550.1409 What are my appeal rights? (a) When you receive the Reviewing Officer's final decision, you have 60 days to either pay the penalty or file an appeal in accordance with 30 CFR part 590, subpart A. (b) If you file an appeal, you must either: (1) Submit a surety bond in the amount of the penalty to the appropriate Leasing Office in the Region where the penalty was assessed, following instructions that the Reviewing Officer will include in the final decision; or (2) Notify the appropriate Leasing Office, in the Region where the penalty was assessed, that you want your lease-specific/area-wide bond on file to be used as the bond for the penalty amount. (c) If you choose the alternative in paragraph (b)(2) of this section, the BOEM Regional Director may require additional security ( i.e., (d) If you do not either pay the penalty or file a timely appeal, BOEM will take one or more of the following actions: (1) We will collect the amount you were assessed, plus interest, late payment charges, and other fees as provided by law, from the date you received the Reviewing Officer's final decision until the date we receive payment; (2) We may initiate additional enforcement, including, if appropriate, cancellation of the lease, right-of-way, license, permit, or approval, or the forfeiture of a bond under this part; or (3) We may bar you from doing further business with the Federal Government according to Executive Orders 12549 and 12689, and section 2455 of the Federal Acquisition Streamlining Act of 1994, 31 U.S.C. 6101. The Department of the Interior's regulations implementing these authorities are found at 43 CFR part 12, subpart D. Federal Oil and Gas Royalty Management Act Civil Penalties Definitions § 550.1450 What definitions apply to this subpart? The terms used in this subpart have the same meaning as in 30 U.S.C. 1702. Penalties After a Period to Correct § 550.1451 What may BOEM do if I violate a statute, regulation, order, or lease term relating to a Federal oil and gas lease? (a) If we believe that you have not followed any requirement of a statute, regulation, order, or lease term for any Federal oil or gas lease, we may send you a Notice of Noncompliance informing you what the violation is and what you need to do to correct it to avoid civil penalties under 30 U.S.C. 1719(a) and (b). (b) We will serve the Notice of Noncompliance by registered mail or personal service using the most current address on file as maintained by the BOEM Leasing Office in your respective Region. § 550.1452 What if I correct the violation? The matter will be closed if you correct all of the violations identified in the Notice of Noncompliance within 20 days after you receive the Notice (or within a longer time period specified in the Notice). § 550.1453 What if I do not correct the violation? (a) We may send you a Notice of Civil Penalty if you do not correct all of the violations identified in the Notice of Noncompliance within 20 days after you receive the Notice of Noncompliance (or within a longer time period specified in that Notice). The Notice of Civil Penalty will tell you how much penalty you must pay for each day, beginning with the date of the Notice of Noncompliance, for each violation identified in the Notice of Noncompliance for as long as you do not correct the violation. The maximum civil penalty amount for each day for each uncorrected violation is as specified in 30 CFR 1241.52(a)(2). (b) If you do not correct all of the violations identified in the Notice of Noncompliance within 40 days after you receive the Notice of Noncompliance (or 20 days following the expiration of a longer time period specified in that Notice), we may increase the penalty for each day, beginning with the date of the Notice of Noncompliance, for each violation for as long as you do not correct the violation. The maximum civil penalty amount for each day for each uncorrected violation is as specified in 30 CFR 1241.52(b). [86 FR 38559, July 22, 2021] § 550.1454 How may I request a hearing on the record on a Notice of Noncompliance? You may request a hearing on the record on a Notice of Noncompliance by filing a request within 30 days of the date you received the Notice of Noncompliance with the Hearings Division (Departmental), Office of Hearings and Appeals, U.S. Department of the Interior, 351 South West Temple, Suite 6.300, Salt Lake City, Utah 84101. You may do this regardless of whether you correct the violations identified in the Notice of Noncompliance. [76 FR 64623, Oct. 18, 2011, as amended at 80 FR 57096, Sept. 22, 2015] § 550.1455 Does my request for a hearing on the record affect the penalties? (a) If you do not correct the violations identified in the Notice of Noncompliance, the penalties will continue to accrue even if you request a hearing on the record. (b) You may petition the Hearings Division (Departmental) of the Office of Hearings and Appeals, to stay the accrual of penalties pending the hearing on the record and a decision by the Administrative Law Judge under § 550.1472. (1) You must file your petition within 45 calendar days of receiving the Notice of Noncompliance. (2) To stay the accrual of penalties, you must post a bond or other surety instrument, or demonstrate financial solvency, using the standards and requirements as prescribed in §§ 550.1490 through 550.1497, for the principal amount of any unpaid amounts due that are the subject of the Notice of Noncompliance, including interest thereon, plus the amount of any penalties accrued before the date a stay becomes effective. (3) The Hearings Division will grant or deny the petition under 43 CFR 4.21(b). § 550.1456 May I request a hearing on the record regarding the amount of a civil penalty if I did not request a hearing on the Notice of Noncompliance? (a) You may request a hearing on the record to challenge only the amount of a civil penalty when you receive a Notice of Civil Penalty, if you did not previously request a hearing on the record under § 550.1454. If you did not request a hearing on the record on the Notice of Noncompliance under § 550.1454, you may not contest your underlying liability for civil penalties. (b) You must file your request within 10 days after you receive the Notice of Civil Penalty with the Hearings Division (Departmental), Office of Hearings and Appeals, U.S. Department of the Interior, 351 South West Temple, Suite 6.300, Salt Lake City, Utah 84101. [76 FR 64623, Oct. 18, 2011, as amended at 80 FR 57096, Sept. 22, 2015] Penalties Without a Period to Correct § 550.1460 May I be subject to penalties without prior notice and an opportunity to correct? The Federal Oil and Gas Royalty Management Act sets out several specific violations for which penalties accrue without an opportunity to first correct the violation. (a) [Reserved] (b) Under 30 U.S.C. 1719(d), you may be subject to civil penalties up to the maximum amount specified in 30 CFR 1241.60(b)(2) for each violation for each day that it continues if you: (1) Knowingly or willfully prepare, maintain, or submit false, inaccurate, or misleading reports, notices, affidavits, records, data, or other written information. (2) [Reserved] [76 FR 64623, Oct. 18, 2011, as amended at 86 FR 38559, July 22, 2021] § 550.1461 How will BOEM inform me of violations without a period to correct? We will inform you of any violation, without a period to correct, by issuing a Notice of Noncompliance and Civil Penalty explaining the violation, how to correct it, and the penalty assessment. We will serve the Notice of Noncompliance and Civil Penalty by registered mail or personal service using your address of record as specified under 30 CFR part 1218, subpart H. § 550.1462 How may I request a hearing on the record on a Notice of Noncompliance regarding violations without a period to correct? You may request a hearing on the record of a Notice of Noncompliance regarding violations without a period to correct by filing a request within 30 days after you receive the Notice of Noncompliance with the Hearings Division (Departmental), Office of Hearings and Appeals, U.S. Department of the Interior, 351 South West Temple, Suite 6.300, Salt Lake City, Utah 84101. You may do this regardless of whether you correct the violations identified in the Notice of Noncompliance. [76 FR 64623, Oct. 18, 2011, as amended at 80 FR 57096, Sept. 22, 2015] § 550.1463 Does my request for a hearing on the record affect the penalties? (a) If you do not correct the violations identified in the Notice of Noncompliance regarding violations without a period to correct, the penalties will continue to accrue even if you request a hearing on the record. (b) You may ask the Hearings Division (Departmental) to stay the accrual of penalties pending the hearing on the record and a decision by the Administrative Law Judge under § 550.1472. (1) You must file your petition within 45 calendar days after you receive the Notice of Noncompliance. (2) To stay the accrual of penalties, you must post a bond or other surety instrument, or demonstrate financial solvency, using the standards and requirements as prescribed in §§ 550.1490 through 550.1497, for the principal amount of any unpaid amounts due that are the subject of the Notice of Noncompliance, including interest thereon, plus the amount of any penalties accrued before the date a stay becomes effective. (3) The Hearings Division will grant or deny the petition under 43 CFR 4.21(b). § 550.1464 May I request a hearing on the record regarding the amount of a civil penalty if I did not request a hearing on the Notice of Noncompliance? (a) You may request a hearing on the record to challenge only the amount of a civil penalty when you receive a Notice of Civil Penalty regarding violations without a period to correct, if you did not previously request a hearing on the record under § 550.1462. If you did not request a hearing on the record on the Notice of Noncompliance under § 550.1462, you may not contest your underlying liability for civil penalties. (b) You must file your request within 10 days after you receive Notice of Civil Penalty with the Hearings Division (Departmental), Office of Hearings and Appeals, U.S. Department of the Interior, 351 South West Temple, Suite 6.300, Salt Lake City, Utah 84101. [76 FR 64623, Oct. 18, 2011, as amended at 80 FR 57096, Sept. 22, 2015] General Provisions § 550.1470 How does BOEM decide what the amount of the penalty should be? We determine the amount of the penalty by considering the severity of the violations, your history of compliance, and if you are a small business. § 550.1471 Does the penalty affect whether I owe interest? If you do not pay the penalty by the date required under § 550.1475(d), BOEM will assess you late payment interest on the penalty amount at the same rate interest is assessed under 30 CFR 1218.54. § 550.1472 How will the Office of Hearings and Appeals conduct the hearing on the record? If you request a hearing on the record under § 550.1454, § 550.1456, § 550.1462, or § 550.1464, the hearing will be conducted by a Departmental Administrative Law Judge from the Office of Hearings and Appeals. After the hearing, the Administrative Law Judge will issue a decision in accordance with the evidence presented and applicable law. § 550.1473 How may I appeal the Administrative Law Judge's decision? If you are adversely affected by the Administrative Law Judge's decision, you may appeal that decision to the Interior Board of Land Appeals under 43 CFR part 4, subpart E. § 550.1474 May I seek judicial review of the decision of the Interior Board of Land Appeals? Under 30 U.S.C. 1719(j), you may seek judicial review of the decision of the Interior Board of Land Appeals. A suit for judicial review in the District Court will be barred unless filed within 90 days after the final order. § 550.1475 When must I pay the penalty? (a) You must pay the amount of the Notice of Civil Penalty issued under § 550.1453 or § 550.1461, if you do not request a hearing on the record under § 550.1454, § 550.1456, § 550.1462, or § 550.1464. (b) If you request a hearing on the record under § 550.1454, § 550.1456, § 550.1462, or § 550.1464, but you do not appeal the determination of the Administrative Law Judge to the Interior Board of Land Appeals under § 550.1473, you must pay the amount assessed by the Administrative Law Judge. (c) If you appeal the determination of the Administrative Law Judge to the Interior Board of Land Appeals, you must pay the amount assessed in the IBLA decision. (d) You must pay the penalty assessed within 40 days after: (1) You received the Notice of Civil Penalty, if you did not request a hearing on the record under either § 550.1454, § 550.1456, § 550.1462, or § 550.1464; (2) You received an Administrative Law Judge's decision under § 550.1472, if you obtained a stay of the accrual of penalties pending the hearing on the record under § 550.1455(b) or § 550.1463(b) and did not appeal the Administrative Law Judge's determination to the IBLA under § 550.1473; (3) You received an IBLA decision under § 550.1473 if the IBLA continued the stay of accrual of penalties pending its decision and you did not seek judicial review of the IBLA's decision; or (4) A final non-appealable judgment of a court of competent jurisdiction is entered, if you sought judicial review of the IBLA's decision and the Department or the appropriate court suspended compliance with the IBLA's decision pending the adjudication of the case. (e) If you do not pay, that amount is subject to collection under the provisions of § 550.1477. § 550.1476 Can BOEM reduce my penalty once it is assessed? Under 30 U.S.C. 1719(g), the Director or his or her delegate may compromise or reduce civil penalties assessed under this part. § 550.1477 How may BOEM collect the penalty? (a) BOEM may use all available means to collect the penalty including, but not limited to: (1) Requiring the lease surety, for amounts owed by lessees, to pay the penalty; (2) Deducting the amount of the penalty from any sums the United States owes to you; and (3) Using judicial process to compel your payment under 30 U.S.C. 1719(k). (b) If the Department uses judicial process, or if you seek judicial review under § 550.1474 and the court upholds assessment of a penalty, the court shall have jurisdiction to award the amount assessed plus interest assessed from the date of the expiration of the 90-day period referred to in § 550.1474. The amount of any penalty, as finally determined, may be deducted from any sum owing to you by the United States. Criminal Penalties § 550.1480 May the United States criminally prosecute me for violations under Federal oil and gas leases? If you commit an act for which a civil penalty is provided at 30 U.S.C. 1719(d) and § 550.1460(b), the United States may pursue criminal penalties as provided at 30 U.S.C. 1720, in addition to any authority for prosecution under other statutes. Bonding Requirements § 550.1490 What standards must my BOEM-specified surety instrument meet? (a) A BOEM-specified surety instrument must be in a form specified in BOEM instructions. BOEM 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. § 550.1491 How will BOEM determine the amount of my bond or other surety instrument? (a) BOEM bond-approving officer may approve your surety if he or she determines that the amount is adequate to guarantee payment. The amount of your surety may vary depending on the form of the surety and how long the surety is effective. (1) The amount of the BOEM-specified surety instrument must include the principal amount owed under the Notice of Noncompliance or Notice of Civil Penalty plus any accrued interest we determine is owed plus projected interest for a 1-year period. (2) Treasury book-entry bond or note amounts must be equal to at least 120 percent of the required surety amount. (b) If your appeal is not decided within 1 year from the filing date, you must increase the surety amount to cover additional estimated interest for another 1-year period. You must continue to do this annually on the date your appeal was filed. We will determine the additional estimated interest and notify you of the amount so you can amend your surety instrument. (c) You may submit a single surety instrument that covers multiple appeals. You may change the instrument to add new amounts under appeal or remove amounts that have been adjudicated in your favor or that you have paid, if you: (1) Amend the single surety instrument annually on the date you filed your first appeal; and (2) Submit a separate surety instrument for new amounts under appeal until you amend the instrument to cover the new appeals. Financial Solvency Requirements § 550.1495 How do I demonstrate financial solvency? (a) To demonstrate financial solvency under this part, you must submit an audited consolidated balance sheet, and, if requested by the BOEM bond-approving officer, up to 3 years of tax returns to BOEM using the U.S. Postal Service, private delivery, courier, or overnight delivery at: (1) For Alaska OCS: BOEM Alaska OCS Region, 3801 Centerpoint Drive, Suite 500, Anchorage, AK 99503, (907) 334-5200. (2) For Gulf of America and Atlantic OCS: BOEM Gulf of America OCS Region, 1201 Elmwood Park Boulevard, New Orleans, LA 70123-2394, (800) 200-4853. (3) For Pacific OCS: BOEM Pacific OCS Region, 760 Paseo Camarillo, Suite 102 (CM 102), Camarillo, CA 93010, (805) 384-6305. (b) You must submit an audited consolidated balance sheet annually, and, if requested, additional annual tax returns on the date BOEM first determined that you demonstrated financial solvency as long as you have active appeals, or whenever BOEM requests. (c) If you demonstrate financial solvency in the current calendar year, you are not required to redemonstrate financial solvency for new appeals of orders during that calendar year unless you file for protection under any provision of the U.S. Bankruptcy Code (Title 11 of the United States Code), or BOEM notifies you that you must redemonstrate financial solvency. [76 FR 64623, Oct. 18, 2011, as amended at 80 FR 57096, Sept. 22, 2015] § 550.1496 How will BOEM determine if I am financially solvent? (a) BOEM bond-approving officer will determine your financial solvency by examining your total net worth, including, as appropriate, the net worth of your affiliated entities. (b) If your net worth, minus the amount we would require as surety under §§ 550.1490 and 550.1491 for all orders you have appealed is greater than $300 million, you are presumptively deemed financially solvent, and we will not require you to post a bond or other surety instrument. (c) If your net worth, minus the amount we would require as surety under §§ 550.1490 and 550.1491 for all orders you have appealed is less than $300 million, you must submit the following to BOEM by one of the methods in § 550.1495(a): (1) A written request asking us to consult a business-information, or credit-reporting service or program to determine your financial solvency; and (2) A nonrefundable $50 processing fee: (i) You must pay the processing fee to us following the requirements for making payments found in 30 CFR 550.126. You are required to use Electronic Funds Transfer (EFT) for these payments; (ii) You must submit the fee with your request under paragraph (c)(1) of this section, and then annually on the date we first determined that you demonstrated financial solvency, as long as you are not able to demonstrate financial solvency under paragraph (a) of this section and you have active appeals. (d) If you request that we consult a business-information or credit-reporting service or program under paragraph (c) of this section: (1) We will use criteria similar to that which a potential creditor would use to lend an amount equal to the bond or other surety instrument we would require under §§ 550.1490 and 550.1491; (2) For us to consider you financially solvent, the business-information or credit-reporting service or program must demonstrate your degree of risk as low to moderate: (i) If our bond-approving officer determines that the business-information or credit-reporting service or program information demonstrates your financial solvency to our satisfaction, our bond-approving officer will not require you to post a bond or other surety instrument under §§ 550.1490 and 550.1491; (ii) If our bond-approving officer determines that the business-information or credit-reporting service or program information does not demonstrate your financial solvency to our satisfaction, our bond-approving officer will require you to post a bond or other surety instrument under §§ 550.1490 and 550.1491 or pay the obligation. § 550.1497 When will BOEM monitor my financial solvency? (a) If you are presumptively financially solvent under § 550.1496(b), BOEM will determine your net worth as described under §§ 550.1496(b) and (c) to evaluate your financial solvency at least annually on the date we first determined that you demonstrated financial solvency as long as you have active appeals and each time you appeal a new order. (b) If you ask us to consult a business-information or credit-reporting service or program under § 550.1496(c), we will consult a service or program annually as long as you have active appeals and each time you appeal a new order. (c) If our bond-approving officer determines that you are no longer financially solvent, you must post a bond or other BOEM-specified surety instrument under §§ 550.1490 and 550.1491. Subparts O-S [Reserved]

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