30 C.F.R. §§ 553.21–553.28

If you use self-insurance to satisfy all or part of your obligation to demonstrate OSFR, you must annually pass either a net worth test under § 553.25 or an unencumbered net asset test under § 553.28.

To establish the amount of self-insurance allowed, you must submit evidence of your net worth under § 553.23 or evidence of your unencumbered assets under § 553.26.

You must identify a U.S. agent for service of process.

You must submit a complete Form BOEM-1018 with each application to demonstrate OSFR using self-insurance.

You must submit your application to renew OSFR using self-insurance by the first calendar day of the 5th month after the close of your fiscal year. You may submit to BOEM your initial application to demonstrate OSFR using self-insurance at any time.

Audited annual financial statements must be in the form of:

Audited annual financial statements must be submitted together with a letter signed by your treasurer highlighting:

Your audited annual financial statements must be bound.

Your audited annual financial statements must include the unqualified opinion of an independent accountant that states:

The financial information you submit must be expressed in U.S. dollars. If this information was originally reported in another form of currency, you must convert it to U.S. dollars using the conversion factor that was effective on the last day of the fiscal year pertinent to your financial statements. You also must identify the source of the currency exchange rate.

Divide the net amount of the identifiable U.S. assets by the net amount of the identifiable total assets.

Multiply the net amount of plant, property, and equipment shown on the balance sheet by the number calculated under paragraph (b) of this section and divide the resultant product by ten.

The smaller of the numbers calculated under paragraphs (a) or (c) of this section is the maximum allowable amount you may use to demonstrate OSFR under this method.

Identifying which assets are reserved;

Certifying that the assets are unencumbered, including contingent encumbrances;

Promising that the identified assets will not be sold, subjected to a security interest, or otherwise encumbered throughout the specified fiscal year; and

Meet the standards in § 553.24; and

Include a certification by the independent accountant who audited the financial statements that states:

Divide the value of the unencumbered U.S. assets by 2.

The smaller number calculated under paragraphs (a) or (b) of this section is the maximum allowable amount you may use to demonstrate OSFR under this method.