Title 30
SECTION 585.516
585.516 What are the financial assurance requirements for each stage of my commercial lease
§ 585.516 What are the financial assurance requirements for each stage of my commercial lease?(a) The basic financial assurance requirements for each stage of your commercial lease are as follows:
| Before BOEM will . . . | You must provide . . . |
|---|---|
| (1) Issue a commercial lease or approve an assignment of an existing commercial lease | A $100,000 minimum, lease-specific financial assurance. |
| (2) Approve your SAP | A supplemental bond or other financial assurance, in an amount determined by BOEM, if upon reviewing your SAP, BOEM determines that a supplemental bond is required in addition to your minimum lease-specific bond, due to the complexity, number, and location of any facilities involved in your site assessment activities. |
| (3) Approve your COP | A supplemental bond or other financial assurance, in an amount determined by BOEM based on the complexity, number, and location of all facilities involved in your planned activities and commercial operation. The supplemental financial assurance requirement is in addition to your lease-specific bond and, if applicable, the previous supplement associated with SAP approval. |
| (4) Allow you to install facilities approved in your COP | A decommissioning bond or other financial assurance, in an amount determined by BOEM based on anticipated decommissioning costs. BOEM will allow you to provide your financial assurance for decommissioning in accordance with the number of facilities installed or being installed. BOEM must approve the schedule for providing the appropriate financial assurance coverage. |
(b) Each bond or other financial assurance must guarantee compliance with all terms and conditions of the lease. You may provide a new bond or increase the amount of your existing bond, to satisfy any additional financial assurance requirements.
(c) For hydrokinetic commercial leases, supplemental financial assurance may be required in an amount determined by BOEM before FERC issues a license.