550.1491 How will BOEM determine the amount of my bond or other surety instrument§ 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.