---
kind: "section"
citation: "30 C.F.R. § 550.1496"
title: "30"
number: "550.1496"
heading: "How will BOEM determine if I am financially solvent?"
url: "https://uscodex.org/cfr/30/550.1496"
---

# §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](/cfr/30/550.1490.md) and [550.1491](/cfr/30/550.1491.md) 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](/cfr/30/550.1490.md) and [550.1491](/cfr/30/550.1491.md) 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)](/cfr/30/550.1495.md?p=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](/cfr/30/550.126.md). 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)](#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)](#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)](#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](/cfr/30/550.1490.md) and [550.1491](/cfr/30/550.1491.md);
  - (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](/cfr/30/550.1490.md) and [550.1491](/cfr/30/550.1491.md);
    - (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](/cfr/30/550.1490.md) and [550.1491](/cfr/30/550.1491.md) or pay the obligation.

## 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.