---
kind: "section"
citation: "30 C.F.R. § 556.403"
title: "30"
number: "556.403"
heading: "Under what circumstances may I be disqualified from acquiring a lease or an interest in a lease on the OCS?"
url: "https://uscodex.org/cfr/30/556.403"
---

# §556.403. Under what circumstances may I be disqualified from acquiring a lease or an interest in a lease on the OCS?


You may be disqualified from acquiring a lease or an interest in a lease on the OCS if:

- (a) You or your principals are excluded or disqualified from participating in a transaction covered by Federal non-procurement debarment and suspension (2 CFR parts [180](/cfr/2/part180.md) and [1400](/cfr/2/part1400.md)), unless the Department explicitly approves an exception for a transaction pursuant to the regulations in those parts;
- (b) The Secretary finds, after notice and hearing, that you or your principals (including in the meaning of “you,” for purposes of this subparagraph, a bidder or prospective bidder) fail to meet due diligence requirements or to exercise due diligence under [section 8(d)](/cfr/30/8.md?p=d) of OCSLA ([43 U.S.C. 1337(d)](/usc/43/1337.md?p=d)) on any OCS lease; or
- (c) BOEM disqualifies you from acquiring a lease or an interest in a lease on the OCS based on your unacceptable operating performance. BOEM will give you adequate notice and opportunity for a hearing before imposing a disqualification, unless BSEE has already provided such notice and opportunity for a hearing.

## Notes

### Amendments

[81 FR 34275, May 31, 2016]

### Authority

Authority: 31 U.S.C. 9701; 42 U.S.C. 6213; 43 U.S.C. 1334.

### Source

Source: 81 FR 18152, Mar. 30, 2016, unless otherwise noted.

### Amendments

[81 FR 34275, May 31, 2016]