--- kind: "range" citation: "30 C.F.R. §§ 585.408–585.413" title: "30" from: "585.408" to: "585.413" count: 6 url: "https://uscodex.org/cfr/30/585.408..585.413" --- # §585.408. May I assign my lease or grant interest? - (a) You may assign all or part of your lease or grant interest, including record title, to one or more parties, subject to BOEM approval under this subpart. Each instrument that creates or transfers an interest must describe the entire tract or describe by officially designated subdivisions the interest you propose to create or transfer. Your application to assign a lease or grant may include a request to modify the existing lease or grant period schedule consistent with [§ 585.235(d)](/cfr/30/585.235.md?p=d). - (b) If you submit an application to assign a lease or grant, you will continue to be responsible for payments that are or become due on the lease or grant until the date BOEM approves the assignment. - (c) The assignment takes effect on the first day of the month following the date on which BOEM approves your request, unless you request an earlier effective date and BOEM approves that earlier date, but such earlier effective date, if prior to the date of BOEM's approval, does not relieve you of your obligations accrued between that earlier effective date and the date of approval. - (d) You do not need to request an assignment for business mergers, name changes, or changes of business form. You must notify BOEM of these events under [§ 585.110](/cfr/30/585.110.md). # §585.409. How do I request approval of a lease or grant assignment? - (a) You must request approval of each assignment on a form approved by BOEM and submit originals of each instrument that creates or transfers ownership of record title or certified copies thereof within 90 days after the last party executes the transfer agreement. - (b) Any assignee will be subject to all the terms and conditions of your original lease or grant, including the requirement to furnish financial assurance in the amount required in [§§ 585.516 through 585.537](/cfr/30/585.516..585.537.md). - (c) The assignee must submit proof of eligibility and other qualifications specified in §§ [585.107](/cfr/30/585.107.md) and [585.108](/cfr/30/585.108.md). - (d) Persons executing on behalf of the assignor and assignee must furnish evidence of authority to execute the assignment. # §585.410. When will my assignment result in a segregated lease? - (a) When there is an assignment by all record title owners of 100 percent of the record title to one or more aliquots in a lease, the assigned and retained portions become segregated into separate and distinct leases. In such a case, both the new lease and the remaining portion of the original lease are referred to as “segregated leases” and the assignee becomes the record title owner of the new lease, which is subject to all the terms and conditions of the original lease. The financial assurance requirements of [subpart F](/cfr/30/subpartF.md) of this part apply separately to each segregated lease. - (b) If a record title owner transfers an undivided interest of less than 100 percent of the record title interest in any given aliquot, that transfer will not segregate the portions of that aliquot, or the whole aliquot, in which part of the record title was transferred, into a separate lease from the portions in which no interest was transferred. Instead, that transfer will create a joint ownership between the assignee and assignor in the portions of the lease in which part of the record title interest was transferred. - (c) When a lease becomes segregated, BOEM may issue separate Plan approvals for a segregated lease or take other actions within its discretion. # §585.411. How does an assignment affect the assignor's liability? As assignor, you are liable for all obligations, monetary and nonmonetary, that accrued under your lease or grant before BOEM approves your assignment. Our approval of the assignment does not relieve you of these accrued obligations. BOEM may require you to bring the lease or grant into compliance to the extent the obligation accrued before the effective date of your assignment if your assignee or subsequent assignees fail to perform any obligation under the lease or grant. # §585.412. How does an assignment affect the assignee's liability? - (a) As assignee, you are liable for all lease or grant obligations that accrue after BOEM approves the assignment. As assignee, you must comply with all the terms and conditions of the lease or grant and all applicable regulations, remedy all existing environmental and operational problems on the lease or grant, and comply with all decommissioning requirements under [30 CFR part 285](/cfr/30/part285.md), subpart I. - (b) Assignees are bound to comply with each term or condition of the lease or grant and the regulations in this part and [30 CFR part 285](/cfr/30/part285.md). You are jointly and severally liable for the performance of all obligations under the lease or grant and under the regulations in this part and [30 CFR part 285](/cfr/30/part285.md) with each prior and subsequent lessee who held an interest from the time the obligation accrued until it is satisfied, unless this part provides otherwise. # §585.413. How do I consolidate leases or grants? - (a) You may apply to consolidate all or part of two or more adjacent leases or grants held by the same lessee or grant holder into one new lease or grant, subject to BOEM's approval. The application must include a description of the leases or grants, or portions thereof, to be consolidated, including the relevant lease number, lease blocks, and aliquots. - (b) An approved consolidation will create a new lease or grant that will be subject to the terms and conditions of the consolidated leases or grants. - (c) To the extent the leases or grants to be consolidated have different times remaining in the relevant lease or grant periods, BOEM will default to using the shorter remaining periods in the new lease or grant but will consider requests for a revised lease or grant period schedule included in the consolidation application. - (d) To the extent the leases or grants to be consolidated have other different terms and conditions, BOEM will default to using the terms and conditions in the most recently issued lease or grant to be consolidated for the new lease. BOEM will consider requests for modifications on a case-by-case basis and, in its discretion, approve such requests for good cause. - (e) Before BOEM will approve your consolidation request, BOEM will assess appropriate financial assurance obligations for the new lease or grant per §§ [585.516](/cfr/30/585.516.md) and [585.517](/cfr/30/585.517.md) or §§ [585.520](/cfr/30/585.520.md) and [585.521](/cfr/30/585.521.md). - (f) Any consolidated leases and grants that have been absorbed into the new lease or grant in their entirety will be considered terminated at the time of consolidation approval.