---
kind: "section"
citation: "30 C.F.R. § 550.1490"
title: "30"
number: "550.1490"
heading: "What standards must my BOEM-specified surety instrument meet?"
url: "https://uscodex.org/cfr/30/550.1490"
---

# §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.

## Notes

### Authority

Authority: 30 U.S.C. 1751; 31 U.S.C. 9701; 43 U.S.C. 1334.

### Source

Source: 76 FR 64623, Oct. 18, 2011, unless otherwise noted.