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30 C.F.R. §§ 550.160–550.166

7 sections in range

§550.160. When will BOEM grant me a right-of-use and easement (RUE), and what requirements must I meet?

30 C.F.R. § 550.160

(a)
A RUE is required to construct, secure to the seafloor, use, modify, or maintain platforms, seafloor production equipment, artificial islands, facilities, installations, and/or other devices at an OCS site other than an OCS lease you own, that are:
(1)
Permanently or temporarily attached to the seabed; and
(2)
Used for conducting exploration, development, and production activities or other operations on or off lease; or
(3)
Used for other purposes approved by BOEM.
(b)
You must exercise the RUE according to the terms of the grant and the regulations in this part.
(c)
You must meet the qualification requirements at §§ 556.400 through 556.402 of this subchapter and the applicable financial assurance requirements in this section and part 556, subpart I of this subchapter.
(d)
If you apply for a RUE on a leased area, you must notify the lessee and give her/him an opportunity to comment on your application; and
(e)
You must receive BOEM approval for all platforms, seafloor production equipment, artificial islands, facilities, installations, and/or other devices permanently or temporarily attached to the seabed.
(f)
You must pay a rental amount as required by paragraph (g) of this section if:
(1)
You obtain a RUE after January 12, 2004; or
(2)
You ask BOEM to modify your RUE to change the footprint of the associated platform, seafloor production equipment, artificial island, facility, installation, and/or device.
(g)
If you meet either of the conditions in paragraph (f) of this section, you must pay a rental amount to BOEM as shown in the following table:
(h)
You may make the rental payments required by paragraph (g)(1) and (g)(2) of this section on an annual basis, for a 5-year period, or for multiples of 5 years. You must make the first payment electronically through Pay.gov and you must include a copy of the Pay.gov confirmation receipt page with your right-of-use and easement application. You must make all subsequent payments before the respective time periods begin.
(i)
Late payments. An interest charge will be assessed on unpaid and underpaid amounts from the date the amounts are due, in accordance with the provisions found in 30 CFR 1218.54. If you fail to make a payment that is late after written notice from BOEM, BOEM may initiate cancellation of the right-of-use grant and easement.
Notes, amendments, and revision history

Amendments

[76 FR 64623, Oct. 18, 2011, as amended at 89 FR 31589, Apr. 24, 2024]

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.

Amendments

[76 FR 64623, Oct. 18, 2011, as amended at 89 FR 31589, Apr. 24, 2024]

§550.161. What else must I submit with my application?

30 C.F.R. § 550.161

With your application, you must describe the proposed use giving:
(a)
Details of the proposed uses and activities including access needs and special rights of use that you may need;
(b)
A description of all facilities for which you are seeking authorization;
(c)
A map or plat describing primary and alternate project locations; and
(d)
A schedule for constructing any new facilities, drilling or completing any wells, anticipated production rates, and productive life of existing production facilities.
Notes, amendments, and revision history

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.

§550.162. May I continue my right-of-use and easement after the termination of any lease on which it is situated?

30 C.F.R. § 550.162

If your right-of-use and easement is on a lease, you may continue to exercise the right-of-use and easement after the lease on which it is situated terminates. You must only use the right-of-use and easement for the purpose that the grant specifies. All future lessees of that portion of the OCS on which your right-of-use and easement is situated must continue to recognize the right-of-use and easement for the purpose that the grant specifies.
Notes, amendments, and revision history

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.

§550.163. If I have a State lease, will BOEM grant me a right-of-use and easement?

30 C.F.R. § 550.163

(a)
BOEM may grant a lessee of a State lease located adjacent to or accessible from the OCS a right-of-use and easement on the OCS.
(b)
BOEM will only grant a right-of-use and easement under this paragraph to enable a State lessee to conduct and maintain a device that is permanently or temporarily attached to the seabed (i.e., a platform, artificial island, or installation). The lessee must use the device to explore for, develop, and produce oil and gas from the adjacent or accessible State lease and for other operations related to these activities.
Notes, amendments, and revision history

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.

§550.164. If I have a State lease, what conditions apply for a right-of-use and easement?

30 C.F.R. § 550.164

(a)
A right-of-use and easement granted under the heading of “Right-of-use and easement” in this subpart is subject to BOEM regulations, 30 CFR parts 550 through 582, BSEE regulations, 30 CFR parts 250 through 282, and any terms and conditions that the BOEM Regional Director or BSEE Regional Director prescribes.
(b)
For the whole or fraction of the first calendar year, and annually after that, you must pay to BOEM, in advance, an annual rental payment.
Notes, amendments, and revision history

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.

§550.166. If BOEM grants me a RUE, what financial assurance must I provide?

30 C.F.R. § 550.166

(a)
Before BOEM grants you a RUE on the OCS, you must submit or maintain financial assurance of $500,000, which will guarantee compliance with the regulations and the terms and conditions of all RUEs you hold.
(1)
You are not required to submit and maintain the financial assurance of $500,000 pursuant to this paragraph (a) if you furnish and maintain area-wide lease financial assurance in excess of $500,000 pursuant to § 556.901(a) of this subchapter, provided that the area-wide lease financial assurance also guarantees compliance with all the terms and conditions of all RUEs you hold in the area.
(2)
The Regional Director may reduce the amount required in this paragraph (a) upon a determination that the reduced amount is sufficient to guarantee compliance with the regulations and the terms and conditions of all RUE grant(s) you hold.
(3)
The requirements for financial assurance in §§ 556.900(d) through (g) 556.902 of this subchapter apply to the financial assurance required under paragraph (a) of this section.
(b)
If BOEM grants you a RUE that serves either an OCS lease or a State lease, the Regional Director may require supplemental financial assurance above the amount required by paragraph (a) of this section, to ensure compliance with the obligations under your RUE grant, based on an evaluation of your ability to carry out present and future obligations on the RUE using the criteria set forth in § 556.901(d)(1) through (3) of this subchapter. This supplemental financial assurance must:
(1)
Meet the requirements of §§ 556.900(d) through (g) and 556.902 of this subchapter; and
(2)
Cover costs and liabilities for compliance with the obligations of your RUE grants and with applicable BOEM and Bureau of Safety and Environmental Enforcement (BSEE) orders.
(c)
If you fail to replace any deficient financial assurance upon demand or fail to provide supplemental financial assurance upon demand, the Regional Director may:
(1)
Assess penalties under subpart N of this part;
(2)
Request BSEE to suspend operations on your RUE; and/or
(3)
Initiate action for cancellation of your RUE grant.
Notes, amendments, and revision history

Amendments

[89 FR 31589, Apr. 24, 2024]

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.

Amendments

[89 FR 31589, Apr. 24, 2024]