550.181 When may the Secretary cancel my lease and when am I compensated for cancellation§ 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.