---
kind: "section"
citation: "30 C.F.R. § 586.107"
title: "30"
number: "586.107"
heading: "Who can hold a grant under this part?"
url: "https://uscodex.org/cfr/30/586.107"
---

# §586.107. Who can hold a grant under this part?

- (a) You may hold a grant under this part if you can demonstrate that you have the technical and financial capabilities to conduct the activities authorized by the grant and you are a(n):
  - (1) Citizen or national of the United States;
  - (2) Alien lawfully admitted for permanent residence in the United States as defined in [8 U.S.C. 1101(a)(20)](/usc/8/1101.md?p=a-20);
  - (3) Private, public, or municipal corporations organized under the laws of any State of the United States, the District of Columbia, or any territory or insular possession subject to U.S. jurisdiction;
  - (4) Association of such citizens, nationals, resident aliens, or corporations;
  - (5) Executive agency of the United States as defined in section 105 of [Title 5](/cfr/5.md) of the U.S. Code;
  - (6) State of the United States; or
  - (7) **Political subdivision of a State of the United States.**
- (b) You may not hold a grant under this part or acquire an interest in a grant under this part if:
  - (1) You or your principals are excluded or disqualified from participating in transactions covered by the Federal non-procurement debarment and suspension system ([2 CFR part 1400](/cfr/2/part1400.md)), unless BOEM explicitly has approved an exception for this transaction;
  - (2) BOEM determines or has previously determined after notice and opportunity for a hearing that you or your principals have failed to meet or exercise due diligence under any OCS lease or grant; or
  - (3) **BOEM determines or has previously determined after notice and opportunity for a hearing that you—**
    - (i) Remained in violation of the terms and conditions of any lease or grant issued under the OCS Lands Act for a period extending longer than 30 days (or such other period allowed for compliance) BSEE directed you to comply; and
    - (ii) **You took no action to correct the noncompliance within that time period.**

## Notes

### Authority

Authority: 43 U.S.C. 1337.

### Source

Source: 88 FR 6468, Jan. 31, 2023, unless otherwise noted.