---
kind: "section"
citation: "30 C.F.R. § 585.226"
title: "30"
number: "585.226"
heading: "What happens if the provisional winner fails to meet its obligations?"
url: "https://uscodex.org/cfr/30/585.226"
---

# §585.226. What happens if the provisional winner fails to meet its obligations?

- (a) If BOEM determines that a provisional winner has failed to timely complete the steps outlined in [§ 585.225(b)](/cfr/30/585.225.md?p=b) or [§ 585.316](/cfr/30/585.316.md), or has otherwise failed to comply with applicable laws, regulations, or FSN provisions, BOEM may take one or more of the following actions:
  - (1) **Decline to execute the applicable lease.**
  - (2) Decline to execute the lease for any other lease areas that the provisional winner won during the auction.
  - (3) **Require forfeiture of the bid deposit.** In the event the bid deposit exceeds the amount of the winning bid, BOEM would limit the required forfeiture to the lesser amount.
  - (4) Refer the matter to the Department of the Interior's Administrative Remedies Division for suspension or debarment review pursuant to [2 CFR part 180](/cfr/2/part180.md) as implemented at [2 CFR part 1400](/cfr/2/part1400.md).
  - (5) **Pursue any other remedy available.**
- (b) If BOEM declines to execute a lease with the provisional winner under [paragraph (a)](#a) of this section, BOEM may decide to select a new provisional winner by either repeating the auction under [§ 585.224(f)](/cfr/30/585.224.md?p=f), or pursuant to the procedures in [§ 585.223(a)(8)](/cfr/30/585.223.md?p=a-8), by selecting the next highest bid submitted during the auction, or by using other procedures specified in the FSN.
- (c) BOEM's decisions under this section are appealable under [§ 585.118](/cfr/30/585.118.md).

## Notes

### Source

Source: 89 FR 42729, May 15, 2024, unless otherwise noted.

### Authority

Authority: 43 U.S.C. 1337.

### Source

Source: 88 FR 6430, Jan. 31, 2023, unless otherwise noted.