30 CFR 585 Regulations

§ 582.50

30 CFR Ch. V (7–1–17 Edition)

Subpart E—Appeals
§ 582.50

Appeals.

See 30 CFR part 590 for instructions
on how to appeal any order or decision
that we issue under this part.

PART 585—RENEWABLE ENERGY
AND ALTERNATE USES OF EXISTING FACILITIES ON THE OUTER
CONTINENTAL SHELF
Subpart A—General Provisions
Sec.
585.100 Authority.
585.101 What is the purpose of this part?
585.102 What are BOEM’s responsibilities
under this part?
585.103 When may BOEM prescribe or approve departures from these regulations?
585.104 Do I need a BOEM lease or other authorization to produce or support the
production of electricity or other energy
product from a renewable energy resource on the OCS?
585.105 What are my responsibilities under
this part?
585.106 Who can hold a lease or grant under
this part?
585.107 How do I show that I am qualified to
be a lessee or grant holder?
585.108 When must I notify BOEM if an action has been filed alleging that I am insolvent or bankrupt?
585.109 When must I notify BOEM of mergers, name changes, or changes of business
form?
585.110 How do I submit plans, applications,
reports, or notices required by this part?
585.111 When and how does BOEM charge me
processing fees on a case-by-case basis?
585.112 Definitions.
585.113 How will data and information obtained by BOEM under this part be disclosed to the public?
585.114 Paperwork Reduction Act statements—information collection.
585.115 Documents incorporated by reference.
585.116 Requests for information on the
state of the offshore renewable energy industry.
585.117 [Reserved]
585.118 What are my appeal rights?

585.202 What types of leases will BOEM
issue?
585.203 With whom will BOEM consult before issuance of a lease?
585.204 What areas are available for leasing
consideration?
585.205 How will leases be mapped?
585.206 What is the lease size?
585.207–585.209 [Reserved]
COMPETITIVE LEASE PROCESS
585.210 How does BOEM initiate the competitive leasing process?
585.211 What is the process for competitive
issuance of leases?
585.212 What is the process BOEM will follow if there is reason to believe that
competitors have withdrawn before the
Final Sale Notice is issued?
585.213 What must I submit in response to a
Request for Interest or a Call for Information and Nominations?
585.214 What will BOEM do with information from the Requests for Information
or Calls for Information and Nominations?
585.215 What areas will BOEM offer in a
lease sale?
585.216 What information will BOEM publish in the Proposed Sale Notice and
Final Sale Notice?
585.217–585.219 [Reserved]
COMPETITIVE LEASE AWARD PROCESS
585.220 What auction format may BOEM use
in a lease sale?
585.221 What bidding systems may BOEM
use for commercial leases and limited
leases?
585.222 What does BOEM do with my bid?
585.223 What does BOEM do if there is a tie
for the highest bid?
585.224 What happens if BOEM accepts my
bid?
585.225 What happens if my bid is rejected,
and what are my appeal rights?
585.226–585.229 [Reserved]
NONCOMPETITIVE LEASE AWARD PROCESS
585.230 May I request a lease if there is no
Call?
585.231 How will BOEM process my unsolicited request for a noncompetitive lease?
585.232 May I acquire a lease noncompetitively after responding to a Request for
Interest or Call for Information and
Nominations?
585.233–585.234 [Reserved]

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Subpart B—Issuance of OCS Renewable
Energy Leases

COMMERCIAL AND LIMITED LEASE TERMS

GENERAL LEASE INFORMATION
585.200 What rights are granted with a lease
issued under this part?
585.201 How will BOEM issue leases?

585.235 If I have a commercial lease, how
long will my lease remain in effect?
585.236 If I have a limited lease, how long
will my lease remain in effect?
585.237 What is the effective date of a lease?

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Ocean Energy Management, Interior

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585.238 Are there any other renewable energy research activities that will be allowed on the OCS?

Subpart C—Rights-of-Way Grants and
Rights-of-Use and Easement Grants for
Renewable Energy Activities

585.409 How do I request approval of a lease
or grant assignment?
585.410 How does an assignment affect the
assignor’s liability?
585.411 How does an assignment affect the
assignee’s liability?
585.412–585.414 [Reserved]
LEASE OR GRANT SUSPENSION

ROW GRANTS AND RUE GRANTS
585.300 What types of activities are authorized by ROW grants and RUE grants
issued under this part?
585.301 What do ROW grants and RUE
grants include?
585.302 What are the general requirements
for ROW grant and RUE grant holders?
585.303 How long will my ROW grant or RUE
grant remain in effect?
585.304 [Reserved]
OBTAINING ROW GRANTS AND RUE GRANTS
585.305 How do I request an ROW grant or
RUE grant?
585.306 What action will BOEM take on my
request?
585.307 How will BOEM determine whether
competitive interest exists for ROW
grants and RUE grants?
585.308 How will BOEM conduct an auction
for ROW grants and RUE grants?
585.309 When will BOEM issue a noncompetitive ROW grant or RUE grant?
585.310 What is the effective date of an ROW
grant or RUE grant?
585.311–585.314 [Reserved]
FINANCIAL REQUIREMENTS FOR ROW GRANTS
AND RUE GRANTS

585.415 What is a lease or grant suspension?
585.416 How do I request a lease or grant
suspension?
585.417 When may BOEM order a suspension?
585.418 How will BOEM issue a suspension?
585.419 What are my immediate responsibilities if I receive a suspension order?
585.420 What effect does a suspension order
have on my payments?
585.421 How long will a suspension be in effect?
585.422–585.424 [Reserved]
LEASE OR GRANT RENEWAL
585.425 May I obtain a renewal of my lease
or grant before it terminates?
585.426 When must I submit my request for
renewal?
585.427 How long is a renewal?
585.428 What effect does applying for a renewal have on my activities and payments?
585.429 What criteria will BOEM consider in
deciding whether to renew a lease or
grant?
585.430–585.431 [Reserved]
LEASE OR GRANT TERMINATION

585.315 What deposits are required for a
competitive ROW grant or RUE grant?
585.316 What payments are required for
ROW grants or RUE grants?

585.432 When does my lease or grant terminate?
585.433 What must I do after my lease or
grant terminates?
585.434 [Reserved]
LEASE OR GRANT RELINQUISHMENT

Subpart D—Lease and Grant
Administration

585.435 How can I relinquish a lease or a
grant or parts of a lease or grant?

NONCOMPLIANCE AND CESSATION ORDERS
585.400 What happens if I fail to comply
with this part?
585.401 When may BOEM issue a cessation
order?
585.402 What is the effect of a cessation
order?
585.403–585.404 [Reserved]

LEASE OR GRANT CONTRACTION
585.436 Can BOEM require lease or grant
contraction?
LEASE OR GRANT CANCELLATION
585.437 When can my lease or grant be canceled?

DESIGNATION OF OPERATOR

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585.405
585.406
and
585.407

How do I designate an operator?
Who is responsible for fulfilling lease
grant obligations?
[Reserved]
LEASE OR GRANT ASSIGNMENT

585.408 May I assign my lease or grant interest?

Subpart E—Payments and Financial
Assurance Requirements
PAYMENTS
585.500 How do I make payments under this
part?
585.501 What deposits must I submit for a
competitively issued lease, ROW grant,
or RUE grant?

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585.502 What initial payment requirements
must I meet to obtain a noncompetitive
lease, ROW grant, or RUE grant?
585.503 What are the rent and operating fee
requirements for a commercial lease?
585.504 How are my payments affected if I
develop my lease in phases?
585.505 What are the rent and operating fee
requirements for a limited lease?
585.506 What operating fees must I pay on a
commercial lease?
585.507 What rent payments must I pay on a
project easement?
585.508 What rent payments must I pay on
ROW grants or RUE grants associated
with renewable energy projects?
585.509 Who is responsible for submitting
lease or grant payments to BOEM?
585.510 May BOEM reduce or waive my lease
or grant payments?
585.511–585.514 [Reserved]
FINANCIAL ASSURANCE REQUIREMENTS FOR
COMMERCIAL LEASES
585.515 What financial assurance must I provide when I obtain my commercial lease?
585.516 What are the financial assurance requirements for each stage of my commercial lease?
585.517 How will BOEM determine the
amounts of the supplemental and decommissioning financial assurance requirements
associated
with
commercial
leases?
585.518–585.519 [Reserved]
FINANCIAL ASSURANCE FOR LIMITED LEASES,
ROW GRANTS, AND RUE GRANTS
585.520 What financial assurance must I provide when I obtain my limited lease,
ROW grant, or RUE grant?
585.521 Do my financial assurance requirements change as activities progress on
my limited lease or grant?
585.522–585.524 [Reserved]

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REQUIREMENTS FOR FINANCIAL ASSURANCE
INSTRUMENTS

CHANGES IN FINANCIAL ASSURANCE
585.530 What must I do if my financial assurance lapses?
585.531 What happens if the value of my financial assurance is reduced?
585.532 What happens if my surety wants to
terminate the period of liability of my
bond?
585.533 How does my surety obtain cancellation of my bond?
585.534 When may BOEM cancel my bond?
585.535 Why might BOEM call for forfeiture
of my bond?
585.536 How will I be notified of a call for
forfeiture?
585.537 How will BOEM proceed once my
bond or other security is forfeited?
585.538–585.539 [Reserved]
REVENUE SHARING WITH STATES
585.540 How will BOEM equitably distribute
revenues to States?
585.541 What is a qualified project for revenue sharing purposes?
585.542 What makes a State eligible for payment of revenues?
585.543 Example of how the inverse distance
formula works.

Subpart F—Plans and Information
Requirements
585.600 What plans and information must I
submit to BOEM before I conduct activities on my lease or grant?
585.601 When am I required to submit my
plans to BOEM?
585.602 What records must I maintain?
585.603–585.604 [Reserved]
SITE ASSESSMENT PLAN AND INFORMATION
REQUIREMENTS FOR COMMERCIAL LEASES
585.605 What is a Site Assessment Plan
(SAP)?
585.606 What must I demonstrate in my
SAP?
585.607 How do I submit my SAP?
585.608–585.609 [Reserved]
CONTENTS OF THE SITE ASSESSMENT PLAN

585.525 What general requirements must a
financial assurance instrument meet?
585.526 What instruments other than a surety bond may I use to meet the financial
assurance requirement?
585.527 May
I
demonstrate
financial
strength and reliability to meet the financial assurance requirement for lease
or grant activities?
585.528 May I use a third-party guaranty to
meet the financial assurance requirement for lease or grant activities?
585.529 Can I use a lease- or grant-specific
decommissioning account to meet the financial assurance requirements related
to decommissioning?

585.610 What must I include in my SAP?
585.611 What information and certifications
must I submit with my SAP to assist
BOEM in complying with NEPA and
other relevant laws?
585.612 How will my SAP be processed for
Federal consistency under the Coastal
Zone Management Act?
585.613 How will BOEM process my SAP?
ACTIVITIES UNDER AN APPROVED SAP
585.614 When may I begin conducting activities under my approved SAP?
585.615 What other reports or notices must I
submit to BOEM under my approved
SAP?

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585.616 [Reserved]
585.617 What activities require a revision to
my SAP, and when will BOEM approve
the revision?
585.618 What must I do upon completion of
approved site assessment activities?
585.619 [Reserved]

585.647 How will my GAP be processed for
Federal consistency under the Coastal
Zone Management Act?
585.648 How will BOEM process my GAP?
585.649 [Reserved]

CONSTRUCTION AND OPERATIONS PLAN FOR
COMMERCIAL LEASES

585.650 When may I begin conducting activities under my GAP?
585.651 When may I construct complex or
significant OCS facilities on my limited
lease or any facilities on my project
easement proposed under my GAP?
585.652 How long do I have to conduct activities under an approved GAP?
585.653 What other reports or notices must I
submit to BOEM under my approved
GAP?
585.654 [Reserved]
585.655 What activities require a revision to
my GAP, and when will BOEM approve
the revision?
585.656 What must I do if I cease activities
approved in my GAP before the end of
my term?
585.657 What must I do upon completion of
approved activities under my GAP?

585.620 What is a Construction and Operations Plan (COP)?
585.621 What must I demonstrate in my
COP?
585.622 How do I submit my COP?
585.623–585.625 [Reserved]
CONTENTS OF THE CONSTRUCTION AND
OPERATIONS PLAN
585.626 What must I include in my COP?
585.627 What information and certifications
must I submit with my COP to assist the
BOEM in complying with NEPA and
other relevant laws?
585.628 How will BOEM process my COP?
585.629 May I develop my lease in phases?
585.630 [Reserved]
ACTIVITIES UNDER AN APPROVED COP

CABLE AND PIPELINE DEVIATIONS

585.631 When must I initiate activities
under an approved COP?
585.632 What documents must I submit before I may construct and install facilities
under my approved COP?
585.633 How do I comply with my COP?
585.634 What activities require a revision to
my COP, and when will BOEM approve
the revision?
585.635 What must I do if I cease activities
approved in my COP before the end of my
commercial lease?
585.636 What notices must I provide BOEM
following approval of my COP?
585.637 When may I commence commercial
operations on my commercial lease?
585.638 What must I do upon completion of
my commercial operations as approved
in my COP or FERC license?
585.639 [Reserved]

585.658 Can my cable or pipeline construction deviate from my approved COP or
GAP?
585.659 What requirements must I include in
my SAP, COP, or GAP regarding air
quality?

GENERAL ACTIVITIES PLAN REQUIREMENTS FOR
LIMITED LEASES, ROW GRANTS, AND RUE
GRANTS
585.640 What is a General Activities Plan
(GAP)?
585.641 What must I demonstrate in my
GAP?
585.642 How do I submit my GAP?
585.643–585.644 [Reserved]
CONTENTS OF THE GENERAL ACTIVITIES PLAN
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ACTIVITIES UNDER AN APPROVED GAP

585.645 What must I include in my GAP?
585.646 What information and certifications
must I submit with my GAP to assist
BOEM in complying with NEPA and
other relevant laws?

Subpart G—Facility Design, Fabrication,
and Installation
REPORTS
585.700 What reports must I submit to
BOEM before installing facilities described in my approved SAP, COP, or
GAP?
585.701 What must I include in my Facility
Design Report?
585.702 What must I include in my Fabrication and Installation Report?
585.703 What reports must I submit for
project modifications and repairs?
585.704 [Reserved]
CERTIFIED VERIFICATION AGENT
585.705 When must I use a Certified
Verification Agent (CVA)?
585.706 How do I nominate a CVA for BOEM
approval?
585.707 What are the CVA’s primary duties
for facility design review?
585.708 What are the CVA’s or project engineer’s primary duties for fabrication and
installation review?
585.709 When conducting onsite fabrication
inspections, what must the CVA or
project engineer verify?

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585.710 When conducting onsite installation
inspections, what must the CVA or
project engineer do?
585.711 [Reserved]
585.712 What are the CVA’s or project engineer’s reporting requirements?
585.713 What must I do after the CVA or
project engineer confirms conformance
with the Fabrication and Installation
Report on my commercial lease?
585.714 What records relating to SAPs,
COPs, and GAPs must I keep?

Subpart H—Environmental and Safety
Management, Inspections, and Facility
Assessments for Activities Conducted
Under SAPs, COPs and GAPs
585.800 How must I conduct my activities to
comply with safety and environmental
requirements?
585.801 How must I conduct my approved activities to protect marine mammals,
threatened and endangered species, and
designated critical habitat?
585.802 What must I do if I discover a potential archaeological resource while conducting my approved activities?
585.803 How must I conduct my approved activities to protect essential fish habitats
identified and described under the Magnuson-Stevens Fishery Conservation and
Management Act?
585.804–585.809 [Reserved]
SAFETY MANAGEMENT SYSTEMS
585.810 What must I include in my Safety
Management System?
585.811 When must I follow my Safety Management System?
585.812 [Reserved]
MAINTENANCE AND SHUTDOWNS
585.813 When do I have to report removing
equipment from service?
585.814 [Reserved]
EQUIPMENT FAILURE AND ADVERSE
ENVIRONMENTAL EFFECTS
585.815 What must I do if I have facility
damage or an equipment failure?
585.816 What must I do if environmental or
other conditions adversely affect a cable,
pipeline, or facility?
585.817–585.819 [Reserved]

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INSPECTIONS AND ASSESSMENTS

585.826–585.829

[Reserved]

INCIDENT REPORTING AND INVESTIGATION
585.830 What are my incident reporting requirements?
585.831 What incidents must I report, and
when must I report them?
585.832 How do I report incidents requiring
immediate notification?
585.833 What are the reporting requirements
for incidents requiring written notification?

Subpart I—Decommissioning
DECOMMISSIONING OBLIGATIONS AND
REQUIREMENTS
585.900 Who must meet the decommissioning obligations in this subpart?
585.901 When do I accrue decommissioning
obligations?
585.902 What are the general requirements
for decommissioning for facilities authorized under my SAP, COP, or GAP?
585.903 What are the requirements for decommissioning
FERC-licensed
hydrokinetic facilities?
585.904 Can I request a departure from the
decommissioning requirements?
DECOMMISSIONING APPLICATIONS
585.905 When must I submit my decommissioning application?
585.906 What must my decommissioning application include?
585.907 How will BOEM process my decommissioning application?
585.908 What must I include in my decommissioning notice?
FACILITY REMOVAL
585.909 When may BOEM authorize facilities
to remain in place following termination
of a lease or grant?
585.910 What must I do when I remove my
facility?
585.911 [Reserved]
DECOMMISSIONING REPORT
585.912 After I remove a facility, cable, or
pipeline, what information must I submit?

585.820 Will BOEM conduct inspections?
585.821 Will BOEM conduct scheduled and
unscheduled inspections?
585.822 What must I do when BOEM conducts an inspection?
585.823 Will BOEM reimburse me for my expenses related to inspections?
585.824 How must I conduct self-inspections?
585.825 When must I assess my facilities?

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§ 585.102

COMPLIANCE WITH AN APPROVED
DECOMMISSIONING APPLICATION

Subpart A—General Provisions

585.913 What happens if I fail to comply
with my approved decommissioning application?

§ 585.100 Authority.
The authority for this part derives
from amendments to subsection 8 of
the Outer Continental Shelf Lands Act
(OCS Lands Act) (43 U.S.C. 1337), as set
forth in section 388(a) of the Energy
Policy Act of 2005 (EPAct) (Pub. L. 109–
58). The Secretary of the Interior delegated to the Bureau of Ocean Energy
Management (BOEM) the authority to
regulate activities under section 388(a)
of the EPAct. These regulations specifically apply to activities that:
(a) Produce or support production,
transportation, or transmission of energy from sources other than oil and
gas; or
(b) Use, for energy-related purposes
or for other authorized marine-related
purposes, facilities currently or previously used for activities authorized
under the OCS Lands Act.

Subpart J—Rights of Use and Easement for
Energy- and Marine-Related Activities
Using Existing OCS Facilities
REGULATED ACTIVITIES
585.1000 What activities does this subpart
regulate?
585.1001–585.1003 [Reserved]
REQUESTING AN ALTERNATE USE RUE
585.1004 What must I do before I request an
Alternate Use RUE?
585.1005 How do I request an Alternate Use
RUE?
585.1006 How will BOEM decide whether to
issue an Alternate Use RUE?
585.1007 What process will BOEM use for
competitively offering an Alternate Use
RUE?
585.1008–585.1009 [Reserved]
ALTERNATE USE RUE ADMINISTRATION
585.1010 How long may I conduct activities
under an Alternate Use RUE?
585.1011 What payments are required for an
Alternate Use RUE?
585.1012 What financial assurance is required for an Alternate Use RUE?
585.1013 Is an Alternate Use RUE assignable?
585.1014 When will BOEM suspend an Alternate Use RUE?
585.1015 How do I relinquish an Alternate
Use RUE?
585.1016 When will an Alternate Use RUE be
cancelled?
585.1017 [Reserved]
DECOMMISSIONING AN ALTERNATE USE RUE
585.1018 Who is responsible for decommissioning an OCS facility subject to an Alternate Use RUE?
585.1019 What are the decommissioning requirements for an Alternate Use RUE?

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AUTHORITY: Section 104, Public Law 97–451,
96 Stat. 2451 (30 U.S.C. 1714), Public Law 109–
432, Div C, Title I, 120 Stat. 3000; 30 U.S.C.
1751; 31 U.S.C. 9701; 43 U.S.C. 1334; 33 U.S.C.
2704, 2716; E.O. 12777, as amended; 43 U.S.C.
1331 et seq., 43 U.S.C. 1337.
SOURCE: 76 FR 64623, Oct. 18, 2011, unless
otherwise noted.

§ 585.101 What is the purpose of this
part?
The purpose of this part is to:
(a) Establish procedures for issuance
and administration of leases, right-ofway (ROW) grants, and right-of-use and
easement (RUE) grants for renewable
energy production on the Outer Continental Shelf (OCS) and RUEs for the alternate use of OCS facilities for energy
or marine-related purposes;
(b) Inform you and third parties of
your obligations when you undertake
activities authorized in this part; and
(c) Ensure that renewable energy activities on the OCS and activities involving the alternate use of OCS facilities for energy or marine-related purposes are conducted in a safe and environmentally sound manner, in conformance with the requirements of subsection 8(p) of the OCS Lands Act,
other applicable laws and regulations,
and the terms of your lease, ROW
grant, RUE grant, or Alternate Use
RUE grant.
(d) This part will not convey access
rights for oil, gas, or other minerals.
§ 585.102 What are BOEM’s responsibilities under this part?
(a) BOEM will ensure that any activities authorized in this part are carried
out in a manner that provides for:

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§ 585.103

30 CFR Ch. V (7–1–17 Edition)

(1) Safety;
(2) Protection of the environment;
(3) Prevention of waste;
(4) Conservation of the natural resources of the OCS;
(5) Coordination with relevant Federal agencies (including, in particular,
those agencies involved in planning activities that are undertaken to avoid
conflicts among users and maximize
the economic and ecological benefits of
the OCS, including multifaceted spatial planning efforts);
(6) Protection of National security
interests of the United States;
(7) Protection of the rights of other
authorized users of the OCS;
(8) A fair return to the United States;
(9) Prevention of interference with
reasonable uses (as determined by the
Secretary or Director) of the exclusive
economic zone, the high seas, and the
territorial seas;
(10) Consideration of the location of
and any schedule relating to a lease or
grant under this part for an area of the
OCS, and any other use of the sea or
seabed;
(11) Public notice and comment on
any proposal submitted for a lease or
grant under this part; and
(12) Oversight, inspection, research,
monitoring, and enforcement of activities authorized by a lease or grant
under this part.
(b) BOEM will require compliance
with all applicable laws, regulations,
other requirements, and the terms of
your lease or grant under this part and
approved plans. BOEM will approve,
disapprove, or approve with conditions
any plans, applications, or other documents submitted to BOEM for approval
under the provisions of this part.
(c) Unless otherwise provided in this
part, BOEM may give oral directives or
decisions whenever prior BOEM approval is required under this part.
BOEM will document in writing any
such oral directives within 10 business
days.
(d) BOEM will establish practices and
procedures to govern the collection of
all payments due to the Federal Government, including any cost recovery
fees, rents, operating fees, and other
fees or payments. BOEM will do this in
accordance with the terms of this part,
the leasing notice, the lease or grant

under this part, and applicable Office
of Natural Resources Revenue regulations or guidance.
(e) BOEM will provide for coordination and consultation with the Governor of any State, the executive of
any local government, and the executive of any Indian Tribe that may be
affected by a lease, easement, or ROW
under this subsection. BOEM may invite any affected State Governor, representative of an affected Indian Tribe,
and affected local government executive to join in establishing a task force
or other joint planning or coordination
agreement in carrying out our responsibilities under this part.
[76 FR 64623, Oct. 18, 2011, as amended at 79
FR 21621, Apr. 17, 2014]

§ 585.103 When may BOEM prescribe
or approve departures from these
regulations?
(a) BOEM may prescribe or approve
departures from these regulations
when departures are necessary to:
(1) Facilitate the appropriate activities on a lease or grant under this part;
(2) Conserve natural resources;
(3) Protect life (including human and
wildlife), property, or the marine,
coastal, or human environment; or
(4) Protect sites, structures, or objects of historical or archaeological
significance.
(b) Any departure approved under
this section and its rationale must:
(1) Be consistent with subsection 8(p)
of the OCS Lands Act;
(2) Protect the environment and the
public health and safety to the same
degree as if there was no approved departure from the regulations;
(3) Not impair the rights of third parties; and
(4) Be documented in writing.
§ 585.104 Do I need a BOEM lease or
other authorization to produce or
support the production of electricity or other energy product
from a renewable energy resource
on the OCS?
Except as otherwise authorized by
law, it will be unlawful for any person
to construct, operate, or maintain any
facility to produce, transport, or support generation of electricity or other
energy product derived from a renewable energy resource on any part of the

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Ocean Energy Management, Interior

§ 585.106

OCS, except under and in accordance
with the terms of a lease, easement, or
ROW issued pursuant to the OCS Lands
Act.

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§ 585.105 What are my responsibilities
under this part?
As a lessee, applicant, operator, or
holder of a ROW grant, RUE grant, or
Alternate Use RUE grant, you must:
(a) Design your projects and conduct
all activities in a manner that ensures
safety and will not cause undue harm
or damage to natural resources, including their physical, atmospheric, and biological components to the extent
practicable; and take measures to prevent unauthorized discharge of pollutants including marine trash and debris
into the offshore environment.
(b) Submit requests, applications,
plans, notices, modifications, and supplemental information to BOEM as required by this part;
(c) Follow up, in writing, any oral request or notification you made, within
3 business days;
(d) Comply with the terms, conditions, and provisions of all reports and
notices submitted to BOEM, and of all
plans, revisions, and other BOEM approvals, as provided in this part;
(e) Make all applicable payments on
time;
(f) Comply with the DOI’s nonprocurement debarment regulations at
2 CFR part 1400;
(g) Include the requirement to comply with 2 CFR part 1400 in all contracts and transactions related to a
lease or grant under this part;
(h) Conduct all activities authorized
by the lease or grant in a manner consistent with the provisions of subsection 8(p) of the OCS Lands Act;
(i) Compile, retain, and make available to BOEM representatives, within
the time specified by BOEM, any data
and information related to the site assessment, design, and operations of
your project; and
(j) Respond to requests from the Director in a timely manner.
§ 585.106 Who can hold a lease or
grant under this part?
(a) You may hold a lease or grant
under this part if you can demonstrate
that you have the technical and finan-

cial capabilities to conduct the activities authorized by the lease or 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);
(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 of the U.S. Code;
(6) State of the United States; and
(7) Political subdivision of States of
the United States.
(b) You may not hold a lease or grant
under this part or acquire an interest
in a lease or grant under this part if:
(1) You or your principals are excluded or disqualified from participating in transactions covered by the
Federal nonprocurement debarment
and suspension system (2 CFR part
1400), 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 BOEM allowed for compliance) after BOEM directed you to comply; and
(ii) You took no action to correct the
noncompliance within that time period.

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§ 585.107

30 CFR Ch. V (7–1–17 Edition)

§ 585.107 How do I show that I am
qualified to be a lessee or grant
holder?
(a) You must demonstrate your technical and financial capability to construct, operate, maintain, and terminate/decommission projects for which
you are requesting authorization. Documentation can include:
(1) Descriptions of international or
domestic experience with renewable
energy projects or other types of electric-energy-related projects; and
(2) Information establishing access to
sufficient capital to carry out development.
(b) An individual must submit a written statement of citizenship status attesting to U.S. citizenship. It does not
need to be notarized nor give the age of
individual. A resident alien may submit a photocopy of the Immigration

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Requirements to qualify to hold leases or grants on
the OCS:
(1) Original certificate or certified copy from the State
of incorporation stating the name of the corporation
exactly as it must appear on all legal documents.
(2) Certified statement by Secretary/Assistant Secretary over corporate seal, certifying that the corporation is authorized to hold OCS leases.
(3) Evidence of authority of titled positions to bind corporation, certified by Secretary/Assistant Secretary
over corporate seal, including the following:
(i) Certified copy of resolution of the board of
directors with titles of officers authorized to
bind corporation.
(ii) Certified copy of resolutions granting corporate officer authority to issue a power of
attorney.
(iii) Certified copy of power of attorney or certified copy of resolution granting power of
attorney.
(4) Original certificate or certified copy of partnership
or organization paperwork registering with the appropriate State official.
(5) Copy of articles of partnership or organization evidencing filing with appropriate Secretary of State,
certified by Secretary/Assistant Secretary of partnership or member or manager of LLC.
(6) Original certificate or certified copy evidencing
State where partnership or LLC is registered. Statement of authority to hold OCS leases, certified by
Secretary/Assistant Secretary, OR original paperwork registering with the appropriate State official.
(7) Statements from each partner or LLC member indicating the following:
(i) If a corporation or partnership, statement
of State of organization and authorization
to hold OCS leases, certified by Secretary/
Assistant Secretary over corporate seal, if
a corporation.
(ii) If an individual, a statement of citizenship.
(8) Statement from general partner, certified by Secretary/Assistant Secretary that:
(i) Each individual limited partner is a U.S.
citizen and;

and Naturalization Service form evidencing legal status of the resident
alien.
(c) A corporation or association must
submit evidence, as specified in the
table in paragraph (d) of this section,
acceptable to BOEM that:
(1) It is qualified to hold leases or
grants under this part;
(2) It is authorized to conduct business under the laws of its State;
(3) It is authorized to hold leases or
grants on the OCS under the operating
rules of its business; and
(4) The persons holding the titles listed are authorized to bind the corporation or association when conducting
business with BOEM.
(d) Acceptable evidence under paragraph (c) of this section includes, but is
not limited to the following:

Corp.

Ltd.
Prtnsp.

Gen.
Prtnsp.

LLC

XX

....................

....................

....................

XX

....................

....................

....................

XX

....................

....................

....................

....................

XX

XX

XX

....................

XX

XX

XX

....................

XX

XX

XX

....................

XX

XX

XX

....................

XX

....................

....................

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Trust

Ocean Energy Management, Interior
Requirements to qualify to hold leases or grants on
the OCS:
(ii) Each corporate limited partner or other
entity is incorporated or formed and organized under the laws of a U.S. State or territory.
(9) Evidence of authority to bind partnership or LLC, if
not specified in partnership agreement, articles of
organization, or LLC regulations, i.e., certificates of
authority from Secretary/Assistant Secretary reflecting authority of officers.
(10) Listing of members of LLC certified by Secretary/
Assistant Secretary or any member or manager of
LLC.
(11) Copy of trust agreement or document establishing the trust and all amendments, properly certified by the trustee with reference to where the
original documents are filed.
(12) Statement indicating the law under which the
trust is established and that the trust is authorized
to hold OCS leases or grants.

§ 585.111
Corp.

Ltd.
Prtnsp.

Gen.
Prtnsp.

LLC

....................

XX

XX

XX

....................

....................

....................

XX

....................

....................

....................

....................

XX

....................

....................

....................

....................

XX

(e) A local, State, or Federal executive entity must submit a written
statement that:
(1) It is qualified to hold leases or
grants under this part; and
(2) The person(s) acting on behalf of
the entity is authorized to bind the entity when conducting business with us.
(f) BOEM may require you to submit
additional information at any time
considering your bid or request for a
noncompetitive lease.
§ 585.108 When must I notify BOEM if
an action has been filed alleging
that I am insolvent or bankrupt?
You must notify BOEM within 3 business days after you learn of any action
filed alleging that you are insolvent or
bankrupt.

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§ 585.109 When must I notify BOEM of
mergers, name changes, or changes
of business form?
You must notify BOEM in writing of
any merger, name change, or change of
business form. You must notify BOEM
as soon as practicable following the
merger, name change, or change in
business form, but no later than 120
days after the earliest of either the effective date, or the date of filing the
change or action with the Secretary of
the State or other authorized official
in the State of original registry.

§ 585.110 How do I submit plans, applications, reports, or notices required
by this part?
(a) You must submit all plans, applications, reports, or notices required by
this part to BOEM at the following address: Deputy Director, Bureau of
Ocean Energy Management, 45600
Woodland Road, Sterling, VA 20166.
(b) Unless otherwise stated, you must
submit one paper copy and one electronic copy of all plans, applications,
reports, or notices required by this
part.
[76 FR 64623, Oct. 18, 2011, as amended at 80
FR 57098, Sept. 22, 2015]

§ 585.111 When and how does BOEM
charge me processing fees on a
case-by-case basis?
(a) BOEM will charge a processing fee
on a case-by-case basis under the procedures in this section with regard to
any application or request under this
part if we decide at any time that the
preparation of a particular document
or study is necessary for the application or request and it will have a
unique processing cost, such as the
preparation of an Environmental Assessment (EA) or Environmental Impact Statement (EIS).
(1) Processing costs will include contract oversight and efforts to review
and approve documents prepared by
contractors, whether the contractor is
paid directly by the applicant or
through BOEM.

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§ 585.112

30 CFR Ch. V (7–1–17 Edition)

(2) We may apply a standard overhead rate to direct processing costs.
(b) We will assess the ongoing processing fee for each individual application or request according to the following procedures:
(1) Before we process your application or request, we will give you a written estimate of the proposed fee based
on reasonable processing costs.
(2) You may comment on the proposed fee.
(3) You may:
(i) Ask for our approval to perform,
or to directly pay a contractor to perform, all or part of any document,
study, or other activity according to
standards we specify, thereby reducing
our costs for processing your application or request; or
(ii) Ask to pay us to perform, or contract for, all or part of any document,
study, or other activity.
(4) We will then give you the final estimate of the processing fee amount
with payment terms and instructions
after considering your comments and
any BOEM-approved work you will do.
(i) If we encounter higher or lower
processing costs than anticipated, we
will re-estimate our reasonable processing costs following the procedures in
paragraphs (b)(1) through (4) of this
section, but we will not stop ongoing
processing unless you do not pay in accordance with paragraph (b)(5) of this
section.
(ii) Once processing is complete, we
will refund to you the amount of
money that we did not spend on processing costs.
(5)(i) Consistent with the payment
and billing terms provided in the final
estimate, we will periodically estimate
what our reasonable processing costs
will be for a specific period and will bill
you for that period. Payment is due to
us 30 days after you receive your bill.
We will stop processing your document
if you do not pay the bill by the date
payment is due.
(ii) If a periodic payment turns out to
be more or less than our reasonable
processing costs for the period, we will
adjust the next billing accordingly or
make a refund. Do not deduct any
amount from a payment without our
prior written approval.

(6) You must pay the entire fee before
we will issue the final document or
take final action on your application
or request.
(7) You may appeal our estimated
processing costs in accordance with the
regulations in 43 CFR part 4. We will
not process the document further until
the appeal is resolved, unless you pay
the fee under protest while the appeal
is pending. If the appeal results in a decision changing the proposed fee, we
will adjust the fee in accordance with
paragraph (b)(5)(ii) of this section. If
we adjust the fee downward, we will
not pay interest.
§ 585.112

Definitions.

Terms used in this part have the
meanings as defined in this section:
Affected local government means with
respect to any activities proposed, conducted, or approved under this part,
any locality—
(1) That is, or is proposed to be, the
site of gathering, transmitting, or distributing electricity or other energy
product, or is otherwise receiving,
processing, refining, or transshipping
product, or services derived from activities approved under this part;
(2) That is used, or is proposed to be
used, as a support base for activities
approved under this part; or
(3) In which there is a reasonable
probability of significant effect on land
or water uses from activities approved
under this part.
Affected State means with respect to
any activities proposed, conducted, or
approved under this part, any coastal
State—
(1) That is, or is proposed to be, the
site of gathering, transmitting, or distributing energy or is otherwise receiving, processing, refining, or transshipping products, or services derived
from activities approved under this
part;
(2) That is used, or is scheduled to be
used, as a support base for activities
approved under this part; or
(3) In which there is a reasonable
probability of significant effect on land
or water uses from activities approved
under this part.
Alternate Use refers to the energy- or
marine-related use of an existing OCS

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Ocean Energy Management, Interior

§ 585.112

facility for activities not otherwise authorized by this subchapter or other
applicable law.
Alternate Use RUE means a right-ofuse and easement issued for activities
authorized under subpart J of this part.
Archaeological resource means any
material remains of human life or activities that are at least 50 years of age
and that are of archaeological interest
(i.e., which are capable of providing scientific or humanistic understanding of
past human behavior, cultural adaptation, and related topics through the application of scientific or scholarly
techniques, such as controlled observation, contextual measurement, controlled collection, analysis, interpretation, and explanation).
Best available and safest technology
means the best available and safest
technologies that BOEM determines to
be economically feasible wherever failure of equipment would have a significant effect on safety, health, or the environment.
Best management practices mean practices recognized within their respective
industry, or by Government, as one of
the best for achieving the desired output while reducing undesirable outcomes.
BOEM means Bureau of Ocean Energy Management of the Department of
the Interior.
Certified Verification Agent (CVA)
means an individual or organization,
experienced in the design, fabrication,
and installation of offshore marine facilities or structures, who will conduct
specified third-party reviews, inspections, and verifications in accordance
with this part.
Coastline means the same as the term
‘‘coast line’’ in section 2 of the Submerged Lands Act (43 U.S.C. 1301(c)).
Commercial activities mean, for renewable energy leases and grants, all activities associated with the generation,
storage, or transmission of electricity
or other energy product from a renewable energy project on the OCS, and for
which such electricity or other energy
product is intended for distribution,
sale, or other commercial use, except
for electricity or other energy product
distributed or sold pursuant to technology-testing activities on a limited
lease. This term also includes activi-

ties associated with all stages of development, including initial site characterization and assessment, facility construction, and project decommissioning.
Commercial lease means a lease issued
under this part that specifies the terms
and conditions under which a person
can conduct commercial activities.
Commercial operations mean the generation of electricity or other energy
product for commercial use, sale, or
distribution on a commercial lease.
Decommissioning
means
removing
BOEM-approved facilities and returning the site of the lease or grant to a
condition that meets the requirements
under subpart I of this part.
Director means the Director of the
Bureau of Ocean Energy Management
(BOEM), of the U.S. Department of the
Interior, or an official authorized to
act on the Director’s behalf.
Distance means the minimum great
circle distance.
Eligible State means a coastal State
having a coastline (measured from the
nearest point) no more than 15 miles
from the geographic center of a qualified project area.
Facility means an installation that is
permanently or temporarily attached
to the seabed of the OCS. Facilities include any structures; devices; appurtenances; gathering, transmission, and
distribution cables; pipelines; and permanently moored vessels. Any group of
OCS installations interconnected with
walkways, or any group of installations that includes a central or primary installation with one or more
satellite or secondary installations, is
a single facility. BOEM may decide
that the complexity of the installations justifies their classification as
separate facilities.
Geographic center of a project means
the centroid (geometric center point)
of a qualified project area. The centroid represents the point that is the
weighted average of coordinates of the
same dimension within the mapping
system, with the weights determined
by the density function of the system.
For example, in the case of a project
area shaped as a rectangle or other parallelogram, the geographic center
would be that point where lines between opposing corners intersect. The

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§ 585.112

30 CFR Ch. V (7–1–17 Edition)

geographic center of a project could be
outside the project area itself if that
area is irregularly shaped.
Governor means the Governor of a
State or the person or entity lawfully
designated by or under State law to exercise the powers granted to a Governor.
Grant means a right-of-way, right-ofuse and easement, or alternate use
right-of-use and easement issued under
the provisions of this part.
Human environment means the physical, social, and economic components,
conditions, and factors that interactively determine the state, condition, and quality of living conditions,
employment, and health of those affected, directly or indirectly, by activities occurring on the OCS.
Income, unless clearly specified to the
contrary, refers to the money received
by the project owner or holder of the
lease or grant issued under this part.
The term does not mean that project
receipts exceed project expenses.
Lease means an agreement authorizing the use of a designated portion of
the OCS for activities allowed under
this part. The term also means the
area covered by that agreement, when
the context requires.
Lessee means the holder of a lease, a
BOEM-approved assignee, and, when
describing the conduct required of parties engaged in activities on the lease,
it also refers to the operator and all
persons authorized by the holder of the
lease or operator to conduct activities
on the lease.
Limited lease means a lease issued
under this part that specifies the terms
and conditions under which a person
may conduct activities on the OCS
that support the production of energy,
but do not result in the production of
electricity or other energy product for
sale, distribution, or other commercial
use exceeding a limit specified in the
lease.
Marine environment means the physical, atmospheric, and biological components, conditions, and factors that
interactively determine the productivity, state, condition, and quality of
the marine ecosystem. These include
the waters of the high seas, the contiguous zone, transitional and intertidal

areas, salt marshes, and wetlands within the coastal zone and on the OCS.
Miles mean nautical miles, as opposed
to statute miles.
Natural resources include, without
limiting the generality thereof, renewable energy, oil, gas, and all other minerals (as defined in section 2(q) of the
OCS Lands Act), and marine animal
and marine plant life.
Operator means the individual, corporation, or association having control
or management of activities on the
lease or grant under this part. The operator may be a lessee, grant holder, or
a contractor designated by the lessee
or holder of a grant under this part.
Outer Continental Shelf (OCS) means
all submerged lands lying seaward and
outside of the area of lands beneath
navigable waters, as defined in section
2 of the Submerged Lands Act (43
U.S.C. 1301), whose subsoil and seabed
appertain to the United States and are
subject to its jurisdiction and control.
Person means, in addition to a natural person, an association (including
partnerships and joint ventures); a
Federal agency; a State; a political
subdivision of a State; a Native American Tribal government; or a private,
public, or municipal corporation.
Project, for the purposes of defining
the source of revenues to be shared,
means a lease ROW, RUE, or Alternate
Use RUE on which the activities authorized under this part are conducted
on the OCS. The term ‘‘project’’ may
be used elsewhere in this rule to refer
to these same authorized activities, the
facilities used to conduct these activities, or to the geographic area of the
project, i.e., the project area.
Project area means the geographic
surface leased, or granted, for the purpose of a specific project. If OCS acreage is granted for a project under some
form of agreement other than a lease
(i.e., a ROW, RUE, or Alternate Use
RUE issued under this part), the Federal acreage granted would be considered the project area. To avoid distortions in the calculation of the geometric center of the project area,
project easements issued under this
part are not considered part of the
qualified project’s area.

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§ 585.113

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Project easement means an easement
to which, upon approval of your Construction and Operations Plan (COP) or
General Activities Plan (GAP), you are
entitled as part of the lease for the purpose of installing, gathering, transmission, and distribution cables, pipelines, and appurtenances on the OCS as
necessary for the full enjoyment of the
lease.
Renewable Energy means energy resources other than oil and gas and minerals as defined in 30 CFR part 580.
Such resources include, but are not
limited to, wind, solar, and ocean
waves, tides, and current.
Revenues mean bonuses, rents, operating fees, and similar payments made
in connection with a project or project
area. It does not include administrative fees such as those assessed for cost
recovery, civil penalties, and forfeiture
of financial assurance.
Right-of-use and easement (RUE) grant
means an easement issued by BOEM
under this part that authorizes use of a
designated portion of the OCS to support activities on a lease or other use
authorization for renewable energy activities. The term also means the area
covered by the authorization.
Right-of-way (ROW) grant means an
authorization issued by BOEM under
this part to use a portion of the OCS
for the construction and use of a cable
or pipeline for the purpose of gathering, transmitting, distributing, or
otherwise transporting electricity or
other energy product generated or produced from renewable energy, but does
not constitute a project easement
under this part. The term also means
the area covered by the authorization.
Secretary means the Secretary of the
Interior or an official authorized to act
on the Secretary’s behalf.
Significant
archaeological
resource
means an archaeological resource that
meets the criteria of significance for

eligibility for listing in the National
Register of Historic Places, as defined
in 36 CFR 60.4 or its successor.
Site assessment activities mean those
initial activities conducted to characterize a site on the OCS, such as resource assessment surveys (e.g., meteorological and oceanographic) or technology testing, involving the installation of bottom-founded facilities.
You and your means an applicant, lessee, the operator, or designated operator, ROW grant holder, RUE grant
holder, or Alternate Use RUE grant
holder under this part, or the designated agent of any of these, or the
possessive of each, depending on the
context. The terms You and your also
include contractors and subcontractors
of the entities specified in the preceding sentence.
We, us, and our refer to the Bureau of
Ocean Energy Management of the Department of the Interior, or its possessive, depending on the context.
[76 FR 64623, Oct. 18, 2011, as amended at 79
FR 21621, Apr. 17, 2014]

§ 585.113 How will data and information obtained by BOEM under this
part be disclosed to the public?
(a) BOEM will make data and information available in accordance with
the requirements and subject to the
limitations of the Freedom of Information Act (FOIA) (5 U.S.C. 552), the regulations contained in 43 CFR part 2
(Records and Testimony).
(b) BOEM will not release such data
and information that we have determined is exempt from disclosure under
exemption 4 of FOIA. We will review
such data and information and objections of the submitter by the following
schedule to determine whether release
at that time will result in substantial
competitive harm or disclosure of
trade secrets.

If you have a . . .

Then BOEM will review data and information for possible
release:

(1) Commercial lease ..................................................................

At the earlier of:
(i) 3 years after the initiation of commercial generation or
(ii) 3 years after the lease terminates.
At 3 years after the lease terminates.
At the earliest of:
(i) 10 years after the approval of the grant;
(ii) Grant termination; or
(iii) 3 years after the completion of construction activities.

(2) Limited lease ..........................................................................
(3) ROW or RUE grant ................................................................

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30 CFR Ch. V (7–1–17 Edition)

(c) After considering any objections
from the submitter, if we determine
that release of such data and information will result in:
(1) No substantial competitive harm
or disclosure of trade secrets, then the
data and information will be released.
(2) Substantial competitive harm or
disclosure of trade secrets, then the
data and information will not be released at that time but will be subject
to further review every 3 years thereafter.

(a) The Office of Management and
Budget (OMB) has approved the information collection requirements in 30
CFR part 585 under 44 U.S.C. 3501, et
seq., and assigned OMB Control Number
1010–0176. The table in paragraph (e) of
this section lists the subpart in the
rule requiring the information and its
title, summarizes the reasons for collecting the information, and summarizes how BOEM uses the information.

(b) Respondents are primarily renewable energy applicants, lessees, ROW
grant holders, RUE grant holders, Alternate Use RUE grant holders, and operators. The requirement to respond to
the information collection in this part
is mandated under subsection 8(p) of
the OCS Lands Act. Some responses are
also required to obtain or retain a benefit, or may be voluntary.
(c) The Paperwork Reduction Act of
1995 (44 U.S.C. 3501 et seq.) requires us
to inform the public that an agency
may not conduct or sponsor, and you
are not required to respond to, a collection of information unless it displays a
currently valid OMB control number.
(d) Comments regarding any aspect
of the collections of information under
this part, including suggestions for reducing the burden, should be sent to
the Information Collection Clearance
Officer, Bureau of Ocean Energy Management, 45600 Woodland Road, Sterling, VA 20166.
(e) BOEM is collecting this information for the reasons given in the following table:

30 CFR 585 subpart, title, and/or BOEM Form (OMB Control
No.)

Reasons for collecting information and how used

(1) Subpart A—General Provisions .............................................

To inform BOEM of actions taken to comply with general operational requirements on the OCS. To ensure that operations
on the OCS meet statutory and regulatory requirements, are
safe and protect the environment, and result in diligent development on OCS leases.
To provide BOEM with information needed to determine when
to use a competitive process for issuing a renewable energy
lease, to identify auction formats and bidding systems and
variables that we may use when that determination is affirmative, and to determine the terms under which we will issue
renewable energy leases.
To issue ROW grants and RUE grants for OCS renewable energy activities that are not associated with a BOEM-issued
renewable energy lease.
To ensure compliance with regulations pertaining to a lease or
grant; assignment and designation of operator; and suspension, renewal, termination, relinquishment, and cancellation
of leases and grants.
To ensure that payments and financial assurance payments for
renewable energy leases comply with subpart E.
To enable BOEM to comply with the National Environmental
Policy Act (NEPA), the Coastal Zone Management Act
(CZMA), and other Federal laws and to ensure the safety of
the environment on the OCS.
To enable BOEM to review the final design, fabrication, and installation of facilities on a lease or grant to ensure that these
facilities are designed, fabricated, and installed according to
appropriate standards in compliance with BOEM regulations,
and where applicable, the approved plan.
To ensure that lease and grant operations are conducted in a
manner that is safe and protects the environment. To ensure
compliance with other Federal laws, these regulations, the
lease or grant, and approved plans.

§ 585.114 Paperwork Reduction Act
statements—information collection.

(2) Subpart B—Issuance of OCS Renewable Energy Leases ...

(3) Subpart C—ROW Grants and RUE Grants for Renewable
Energy Activities.
(4) Subpart D—Lease and Grant Administration ........................

(5) Subpart E—Payments and Financial Assurance Requirements.
(6) Subpart F—Plans and Information Requirements .................

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(7) Subpart G—Facility Design, Fabrication, and Installation .....

(8) Subpart H—Environmental and Safety Management, Inspections, and Facility Assessments.

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Ocean Energy Management, Interior

§ 585.115

30 CFR 585 subpart, title, and/or BOEM Form (OMB Control
No.)

Reasons for collecting information and how used

(9) Subpart I—Decommissioning ................................................

To determine that decommissioning activities comply with regulatory requirements and approvals. To ensure that site
clearance and platform or pipeline removal are properly performed to protect marine life and the environment and do not
conflict with other users of the OCS.
To enable BOEM to review information regarding the design,
installation, and operation of RUEs on the OCS, to ensure
that RUE operations are safe and protect the human, marine, and coastal environment. To ensure compliance with
other Federal laws, these regulations, the RUE grant, and,
where applicable, the approved plan.

(10) Subpart J—RUEs for Energy and Marine-Related Activities Using Existing OCS Facilities.

[76 FR 64623, Oct. 18, 2011, as amended at 80
FR 57098, Sept. 22, 2015]

§ 585.115 Documents incorporated by
reference.

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(a) BOEM is incorporating by reference the documents listed in the
table in paragraph (e) of this section.
The Director of the Federal Register
has approved this incorporation by reference according to 5 U.S.C. 552(a) and
1 CFR part 51.
(1) BOEM will publish, as a rule, any
changes in the documents incorporated
by reference in the FEDERAL REGISTER.
(2) BOEM may amend by rule the list
of industry standards incorporated by
reference of the document effective
without prior opportunity for public
comment when BOEM determines that
the revisions to a document result in
safety improvements or represent new
industry standard technology and do
not impose undue costs on the affected
parties; and
(3) BOEM may make a rule, effective
immediately, amending the list of industry standards incorporated by reference if it determines good cause exists for doing so under 5 U.S.C. 553.
(b) BOEM is incorporating each document or specific portion by reference in
the sections noted. The entire document is incorporated by reference, un-

less the text of the corresponding sections in this part calls for compliance
with specific portions of the listed documents. In each instance, the applicable document is the specific edition, or
specific edition and supplement, or specific addition and addendum cited in
this section.
(c) You may comply with a later edition of a specific document incorporated by reference, only if:
(1) You show that complying with the
later edition provides a degree of protection, safety, or performance equal
to or better than what would be
achieved by compliance with the listed
edition; and
(2) You obtain the prior written approval for alternative compliance from
the authorized BOEM official.
(d) You may inspect these documents
at the Bureau of Ocean Energy Management, 45600 Woodland Road, Sterling, VA 20166, 703–787–1605; or at the
National Archives and Records Administration (NARA). For information on
the availability of this material at
NARA, call 202–741–6030, or go to: http://
www.archives.gov/federallregister/
codeloflfederallregulations/
ibrllocations.html. You may obtain the
documents from the publishing organizations at the addresses given in the
following table:

For . . .

Write to . . .

API Recommended Practices .....................................................

American Petroleum Institute, 1220 L Street, NW., Washington,
DC 20005–4070. http://www.api.org/publications/

(e) This paragraph lists documents
incorporated by reference. To easily
reference text of the corresponding sections with the list of documents incor-

porated by reference, the list is in
alphanumerical order by organization
and document.

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§ 585.116

30 CFR Ch. V (7–1–17 Edition)
Title of documents

Incorporated by reference at . . .

API RP 2A–WSD, Recommended Practice for Planning, Designing and Constructing Fixed Offshore Platforms—Working Stress Design; Twenty-first Edition, December 2000; Errata and Supplement 1, December 2002; Errata and
Supplement 2, September 2005; Errata and Supplement 3, October 2007;
Product No. G2AWSD.

[76 FR 64623, Oct. 18, 2011, as amended at 80
FR 57098, Sept. 22, 2015]

§ 585.116 Requests for information on
the state of the offshore renewable
energy industry.

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(a) The Director may, from time to
time, and at his discretion, solicit information from industry and other relevant stakeholders (including State
and local agencies), as necessary, to
evaluate the state of the offshore renewable energy industry, including the
identification of potential challenges
or obstacles to its continued development. Such requests for information
may relate to the identification of environmental, technical, regulatory, or
economic matters that promote or detract from continued development of
renewable energy technologies on the
OCS. From the information received,
the Director may evaluate potential refinements to the OCS Alternative Energy Program that promote development of the industry in a safe and environmentally responsible manner, and
that ensure fair value for use of the Nation’s OCS.
(b) BOEM may make such requests
for information on a regional basis, and
may tailor the requests to specific
types of renewable energy technologies.
(c) BOEM will publish such requests
for information by the Director in the
FEDERAL REGISTER.
§ 585.117

[Reserved]

§ 585.118

What are my appeal rights?

(a) Any party adversely affected by a
BOEM official’s final decision or order
issued under the regulations of this
part may appeal that decision or order
to the Interior Board of Land Appeals.
The appeal must conform with the procedures found in 30 CFR part 590 and 43
CFR part 4, subpart E. Appeal of a final
decision for bid acceptance is covered
under paragraph (c) of this section.

30 CFR 585.825

(b) A decision will remain in full
force and effect during the period in
which an appeal may be filed and during an appeal, unless a stay is granted
pursuant to 43 CFR part 4.
(c) Our decision on a bid is the final
action of the Department, except that
an unsuccessful bidder may apply for
reconsideration by the Director.
(1) A bidder whose bid we reject may
file a written request for reconsideration with the Director within 15 days
of the date of the receipt of the notice
of rejection, accompanied by a statement of reasons, with one copy to us.
The Director will respond in writing either affirming or reversing the decision.
(2) The delegation of review authority given to the Office of Hearings and
Appeals does not apply to decisions on
high bids for leases or grants under
this part.

Subpart B—Issuance of OCS
Renewable Energy Leases
GENERAL LEASE INFORMATION
§ 585.200 What rights are granted with
a lease issued under this part?
(a) A lease issued under this part
grants the lessee the right, subject to
obtaining the necessary approvals, including but not limited to those required under the FERC hydrokinetic licensing process, and complying with
all provisions of this part, to occupy,
and install and operate facilities on, a
designated portion of the OCS for the
purpose of conducting:
(1) Commercial activities; or
(2) Other limited activities that support, result from, or relate to the production of energy from a renewable energy source.
(b) A lease issued under this part confers on the lessee the right to one or
more project easements without further competition for the purpose of installing gathering, transmission, and

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Ocean Energy Management, Interior

§ 585.210

distribution cables; pipelines; and appurtenances on the OCS as necessary
for the full enjoyment of the lease.
(1) You must apply for the project
easement as part of your COP or GAP,
as provided under subpart F of this
part; and
(2) BOEM will incorporate your approved project easement in your lease
as an addendum.
(c) A commercial lease issued under
this part may be developed in phases,
with BOEM approval as provided in
§ 585.629.
§ 585.201 How will BOEM issue leases?
BOEM will issue leases on a competitive basis, as provided under §§ 585.210
through 585.225. However, if we determine after public notice of a proposed
lease that there is no competitive interest, we will issue leases noncompetitively, as provided under §§ 585.230 and
585.232. We will issue leases on forms
approved by BOEM and will include
terms, conditions, and stipulations
identified and developed through the
process set forth in §§ 585.211 and
585.231.

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§ 585.202 What types of leases will
BOEM issue?
BOEM may issue leases on the OCS
for the assessment and production of
renewable energy and may authorize a
combination of specific activities. We
may issue commercial leases or limited
leases.
§ 585.203 With whom will BOEM consult before issuance of a lease?
For leases issued under this part,
through either the competitive or noncompetitive process, BOEM, prior to
issuing the lease, will coordinate and
consult with relevant Federal agencies
(including, in particular, those agencies involved in planning activities
that are undertaken to avoid or minimize conflicts among users and maximize the economic and ecological benefits of the OCS, including multifaceted
spatial planning efforts), the Governor
of any affected State, the executive of
any affected local government, and any
affected Indian Tribe, as directed by
subsections 8(p)(4) and (7) of the OCS
Lands Act or other relevant Federal
laws. Federal statutes that require

BOEM to consult with interested parties or Federal agencies or to respond
to findings of those agencies, including
the Endangered Species Act (ESA) and
the Magnuson-Stevens Fishery Conservation and Management Act (MSA).
BOEM also engages in consultation
with state and tribal historic preservation officers pursuant to the National
Historic Preservation Act (NHPA).
[79 FR 21621, Apr. 17, 2014]

§ 585.204 What areas are available for
leasing consideration?
BOEM may offer any appropriately
platted area of the OCS, as provided in
§ 585.205, for a renewable energy lease,
except any area within the exterior
boundaries of any unit of the National
Park System, National Wildlife Refuge
System, National Marine Sanctuary
System, or any National Monument.
§ 585.205 How will leases be mapped?
BOEM will prepare leasing maps and
official protraction diagrams of areas
of the OCS. The areas included in each
lease will be in accordance with the appropriate leasing map or official protraction diagram.
§ 585.206 What is the lease size?
(a) BOEM will determine the size for
each lease based on the area required
to accommodate the anticipated activities. The processes leading to both
competitive
and
noncompetitive
issuance of leases will provide public
notice of the lease size adopted. We
will delineate leases by using mapped
OCS blocks or portions, or aggregations of blocks.
(b) The lease size includes the minimum area that will allow the lessee
sufficient space to develop the project
and manage activities in a manner that
is consistent with the provisions of this
part. The lease may include whole
lease blocks or portions of a lease
block.
§§ 585.207–585.209

[Reserved]

COMPETITIVE LEASE PROCESS
§ 585.210 How does BOEM initiate the
competitive leasing process?
BOEM may publish in the FEDERAL
REGISTER a public notice of Request for

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§ 585.211

30 CFR Ch. V (7–1–17 Edition)

Interest to assess interest in leasing all
or part of the OCS for activities authorized in this part. BOEM will consider information received in response
to a Request for Interest to determine
whether there is competitive interest
for scheduling sales and issuing leases.
We may prepare and issue a national,
regional, or more specific schedule of
lease sales pertaining to one or more
types of renewable energy.

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§ 585.211 What is the process for competitive issuance of leases?
BOEM will use auctions to award
leases on a competitive basis. We will
publish details of the process to be employed for each lease sale auction in
the FEDERAL REGISTER. For each lease
sale, we will publish a Proposed Sale
Notice and a Final Sale Notice. Individual lease sales will include steps
such as:
(a) Call for Information and Nominations (Call). BOEM will publish in the
FEDERAL REGISTER Calls for Information and Nominations for leasing in
specified areas. The comment period
following issuance of a Call will be 45
days. In this document, we may:
(1) Request comments on areas which
should receive special consideration
and analysis;
(2) Request comments concerning geological conditions (including bottom
hazards); archaeological sites on the
seabed or nearshore; multiple uses of
the proposed leasing area (including
navigation, recreation, and fisheries);
and other socioeconomic, biological,
and environmental information; and
(3) Suggest areas to be considered by
the respondents for leasing.
(b) Area Identification. BOEM will
identify areas for environmental analysis and consideration for leasing. We
will do this in consultation with appropriate Federal agencies, States, local
governments, affected Indian Tribes,
and other interested parties.
(1) We may consider for lease those
areas nominated in response to the Call
for Information and Nominations, together with other areas that BOEM determines are appropriate for leasing.
(2) We will evaluate the potential effect of leasing on the human, marine,
and coastal environments, and develop

measures to mitigate adverse impacts,
including lease stipulations.
(3) We will consult to develop measures, including lease stipulations and
conditions, to mitigate adverse impacts on the environment; and
(4) We may hold public hearings on
the environmental analysis after appropriate notice.
(c) Proposed Sale Notice. BOEM will
publish the Proposed Sale Notice in the
FEDERAL REGISTER and send it to the
Governor of any affected State, any Indian Tribe that might be affected, and
the executive of any local government
that might be affected. The comment
period following issuance of a Proposed
Sale Notice will be 60 days.
(d) Final Sale Notice. BOEM will publish the Final Sale Notice in the FEDERAL REGISTER at least 30 days before
the date of the sale.
[76 FR 64623, Oct. 18, 2011, as amended at 79
FR 21621, Apr. 17, 2014]

§ 585.212 What is the process BOEM
will follow if there is reason to believe that competitors have withdrawn before the Final Sale Notice
is issued?
BOEM may decide to end the competitive process before the Final Sale
Notice if we have reason to believe that
competitors have withdrawn and competition no longer exists. We will issue
a second public notice of Request for
Interest and consider comments received to confirm that there is no competitive interest.
(a) If, after reviewing comments in
response to the notice of Request for
Interest, BOEM determines that there
is no competitive interest in the lease
area, and one party wishes to acquire a
lease, we will discontinue the competitive process and will proceed with the
noncompetitive process set forth in
§ 585.231(d) through (i) following receipt
of the acquisition fee specified in
§ 585.502(a).
(b) If, after reviewing comments in
response to the notice of Request for
Interest, BOEM determines that competitive interest in the lease area continues to exist, we will continue with
the competitive process set forth in
§§ 585.211 through 585.225.
[76 FR 64623, Oct. 18, 2011, as amended at 79
FR 21621, Apr. 17, 2014]

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Ocean Energy Management, Interior

§ 585.220

§ 585.213 What must I submit in response to a Request for Interest or
a Call for Information and Nominations?
If you are a potential lessee, when
you respond to a Request for Interest
or a Call, your response must include
the following items:
(a) The area of interest for a possible
lease.
(b) A general description of your objectives and the facilities that you
would use to achieve those objectives.
(c) A general schedule of proposed activities, including those leading to
commercial operations.
(d) Available and pertinent data and
information concerning renewable energy and environmental conditions in
the area of interest, including energy
and resource data and information used
to evaluate the area of interest. BOEM
will withhold trade secrets and commercial or financial information that
is privileged or confidential from public disclosure under exemption 4 of the
FOIA and as provided in § 585.113.
(e) Documentation showing that you
are qualified to hold a lease, as specified in § 585.107.
(f) Any other information requested
by BOEM in the FEDERAL REGISTER notice.
§ 585.214 What will BOEM do with information from the Requests for Information or Calls for Information
and Nominations?

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BOEM will use the information received in response to the Requests or
Calls to:
(a) Identify the lease area;
(b) Develop options for the environmental analysis and leasing provisions
(stipulations, payments, terms, and
conditions); and
(c) Prepare appropriate documentation to satisfy applicable Federal requirements, such as NEPA, CZMA, the
ESA, and the MMPA.
§ 585.215 What areas will BOEM offer
in a lease sale?
BOEM will offer the areas for leasing
determined through the process set
forth in § 585.211 of this part. We will
not accept nominations after the Call
for Information and Nominations
closes.

§ 585.216 What information will BOEM
publish in the Proposed Sale Notice
and Final Sale Notice?
For each competitive lease sale,
BOEM will publish a Proposed Sale Notice and a Final Sale Notice in the
FEDERAL REGISTER. In the Proposed
Sale Notice, we will request public
comment on the items listed in this
section. We will consider all public
comments received in developing the
final lease sale terms and conditions.
We will publish the final terms and
conditions in the Final Sale Notice.
The Proposed Sale Notice and Final
Sale Notice will include, or describe
the availability of, information pertaining to:
(a) The area available for leasing.
(b) Proposed and final lease provisions and conditions, including, but not
limited to:
(1) Lease size;
(2) Lease term;
(3) Payment requirements;
(4) Performance requirements; and
(5) Site-specific lease stipulations.
(c) Auction details, including:
(1) Bidding procedures and systems;
(2) Minimum bid;
(3) Deposit amount;
(4) The place and time for filing bids
and the place, date, and hour for opening bids;
(5) Lease award method; and
(6) Bidding or application instructions.
(d) The official BOEM lease form to
be used or a reference to that form.
(e) Criteria BOEM will use to evaluate competing bids or applications and
how the criteria will be used in decision-making for awarding a lease.
(f) Award procedures, including how
and when BOEM will award leases and
how BOEM will handle unsuccessful
bids or applications.
(g) Procedures for appealing the lease
issuance decision.
(h) Execution of the lease instrument.
§§ 585.217–585.219

[Reserved]

COMPETITIVE LEASE AWARD PROCESS
§ 585.220 What auction format may
BOEM use in a lease sale?
(a) Except as provided in § 585.231, we
will hold competitive auctions to

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§ 585.221

30 CFR Ch. V (7–1–17 Edition)

award renewable energy leases and will
use one of the following auction formats, as determined through the lease
Type of auction

Bid variable

Bidding process

(1) Sealed bidding .....................................

A cash bonus or an operating fee rate ...

(2) Ascending bidding ...............................
(3) Two-stage bidding (combination of ascending and sealed bidding).

A cash bonus or an operating fee rate ...
An operating fee rate in one, both, or
neither stage and a cash bonus in
one, both, or neither stage.

(4) Multiple-factor bidding ..........................

Factors may include, but are not limited
to: technical merit, timeliness, financing and economics, environmental
considerations, public benefits, compatibility with State and local needs,
cash bonus, rental rate, and an operating fee rate.

One sealed bid per company per lease
or packaged bidding unit.
Continuous bidding per lease.
Ascending or sealed bidding until:
(i) Only two bidders remain, or
(ii) More than one bidder offers to
pay the maximum bid amount.
Stage-two sealed or ascending bidding
commences at some predetermined
time after the end of stage-one bidding.
One proposal per company per lease or
packaged bidding unit.

(b) You must submit your bid and a
deposit as specified in §§ 585.500 and
585.501 to cover the bid for each lease
area, according to the terms specified
in the Final Sale Notice.

§ 585.221 What bidding systems may
BOEM use for commercial leases
and limited leases?
(a) For commercial leases, we will
specify minimum bids in the Final Sale
Notice and use one of the following bidding systems, as specified in the Proposed Sale Notice and in the Final Sale
Notice:

Bid system

Bid variable

(1) Cash bonus with a constant fee rate (decimal) .....................
(2) Constant operating fee rate with fixed cash bonus ...............

Cash bonus.
A fee rate used in the formula found in § 585.506 to set the operating fee per year during the operations term of your
lease.
A fee rate used in the formula in § 585.506 to set the operating
fee for the first year of the operations term of your lease.
The fee rate for subsequent years changes by a mathematical function we specify in the Final Sale Notice.
Cash bonus and operating fee rate as stated in paragraph (2)
of this section (two-stage auction format only).
Cash bonus and operating fee rate as stated in paragraph (3)
of this section (two-stage auction format only).
BOEM will identify bidding variables in the Final Sale Notice.
Variables may include:
(i) Nonmonetary (e.g., technical merit) factors and
(ii) Monetary (e.g., cash bonus, rental rate, fee rate) factors.

(3) Sliding operating fee rate with a fixed cash bonus ...............

(4) Cash bonus and constant operating fee rate ........................
(5) Cash bonus and sliding operating fee rate ...........................
(6) Multiple-factor combination of nonmonetary and monetary
factors.

(b) For limited leases, the bid variable will be a cash bonus, with a minimum bid as we specify in the Final
Sale Notice.

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sale process and specified in the Proposed Sale Notice and in the Final Sale
Notice:

§ 585.222
bid?

What does BOEM do with my

(a) If sealed bidding is used:
(1) We open the sealed bids at the
place, date, and hour specified in the

Final Sale Notice for the sole purpose
of publicly announcing and recording
the bids. We do not accept or reject any
bids at that time.
(2) We reserve the right to reject any
and all high bids, including a bid for
any proposal submitted under the multiple-factor bidding format, regardless
of the amount offered or bidding system used. The reasons for the rejection

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Ocean Energy Management, Interior

§ 585.225

of a winning bid may include, but are
not necessarily limited to, insufficiency, illegality, anti-competitive behavior, administrative error, and the
presence of unusual bidding patterns.
We intend to accept or reject all high
bids within 90 days, but we may extend
that time if necessary.
(b) If we use ascending bidding, we
may, in the Final Sale Notice, reserve
the right to accept the winning bid
solely based on its being the highest
bid submitted by a qualified bidder
(qualified to be an OCS lessee under
§ 585.107).
(c) If we use two-stage bidding and
the auction concludes with
(i) An ascending bidding stage, the
winning bid will be determined as stated in paragraph (b) of this section; or
(ii) A sealed bidding stage, the winning bid will be determined as stated in
paragraph (a) of this section.
(d) If we use multiple-factor bidding,
determination of the winning bid for
any proposal submitted will be made
by a panel composed of members selected by BOEM. The details of the
process will be described in the Final
Sale Notice.
(e) We will send a written notice of
our decision to accept or reject bids to
all bidders whose deposits we hold.

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§ 585.223 What does BOEM do if there
is a tie for the highest bid?
(a) Unless otherwise specified in the
Final Sale Notice, except in the first
stage of a two-stage bidding auction, if
more than one bidder on a lease submits the same high bid amount, the
winning bidder will be determined by a
further round or stage of bidding as described in the Final Sale Notice.
(b) The winning bidder will be subject
to final confirmation following determination of bid adequacy.
§ 585.224 What happens if BOEM accepts my bid?
If we accept your bid, we will send
you a notice with three copies of the
lease form.
(a) Within 10 business days after you
receive the lease copies, you must:
(1) Execute the lease;
(2) File financial assurance as required under §§ 585.515 through 585.537;
and

(3) Pay the balance of the bonus bid
as specified in the lease sale notice.
(b) Within 45 days after you receive
the lease copies, you must pay the first
12-months’ rent as required in § 585.503.
(c) When you execute three copies of
the lease and return the copies to us,
we will execute the lease on behalf of
the United States and send you one
fully executed copy.
(d) You will forfeit your deposit if
you do not execute and return the lease
within 10 business days of receipt, or
otherwise fail to comply with applicable regulations or terms of the Final
Sale Notice.
(e) We may extend the 10 business
day time period for executing and returning the lease if we determine the
delay to be caused by events beyond
your control.
(f) We reserve the right to withdraw
an OCS area in which we have held a
lease sale before you and BOEM execute the lease in that area. If we exercise this right, we will refund your bid
deposit, without interest.
(g) If the awarded lease is executed
by an agent acting on behalf of the bidder, the bidder must submit, along
with the executed lease, written evidence that the agent is authorized to
act on behalf of the bidder.
(h) BOEM will consider the highest
submitted qualified bid to be the winning bid when bidding occurs under the
systems described in § 585.221(a)(1)
through (5). We will determine the winning bid for proposals submitted under
the multiple-factor bidding format on
the basis of selection by the panel as
specified in § 585.222(d) when the bidding system under § 585.221(a)(6) is used.
We will refund the deposit on all other
bids.
[76 FR 64623, Oct. 18, 2011, as amended at 79
FR 21621, Apr. 17, 2014]

§ 585.225 What happens if my bid is rejected, and what are my appeal
rights?
(a) If we reject your bid, we will provide a written statement of the reasons
and refund any money deposited with
your bid, without interest.
(b) You may ask the BOEM Director
for reconsideration, in writing, within
15 business days of bid rejection, under

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§§ 585.226–585.229

30 CFR Ch. V (7–1–17 Edition)

§ 585.118(c)(1). We will send you a written response either affirming or reversing the rejection.
§§ 585.226–585.229

[Reserved]

NONCOMPETITIVE LEASE AWARD PROCESS

pmangrum on DSK3GDR082PROD with CFR

§ 585.230 May I request a lease if there
is no Call?
You may submit an unsolicited request for a commercial lease or a limited lease under this part. Your unsolicited request must contain the following information:
(a) The area you are requesting for
lease.
(b) A general description of your objectives and the facilities that you
would use to achieve those objectives.
(c) A general schedule of proposed activities including those leading to commercial operations.
(d) Available and pertinent data and
information concerning renewable energy and environmental conditions in
the area of interest, including energy
and resource data and information used
to evaluate the area of interest. BOEM
will withhold trade secrets and commercial or financial information that
is privileged or confidential from public disclosure under exemption 4 of the
FOIA and as provided in § 585.113.
(e) If available from the appropriate
State or local government authority, a
statement that the proposed activity
conforms with State and local energy
planning requirements, initiatives, or
guidance.
(f) Documentation showing that you
meet the qualifications to become a
lessee, as specified in § 585.107.
(g) An acquisition fee, as specified in
§ 585.502(a).
§ 585.231 How will BOEM process my
unsolicited request for a noncompetitive lease?
(a) BOEM will consider unsolicited
requests for a lease on a case-by-case
basis and may issue a lease noncompetitively in accordance with this
part. We will not consider an unsolicited request for a lease under this part
that is proposed in an area of the OCS
that is scheduled for a lease sale under
this part.
(b) BOEM will issue a public notice of
a request for interest relating to your

proposal and consider comments received to determine if competitive interest exists.
(c) If BOEM determines that competitive interest exists in the lease
area:
(1) BOEM will proceed with the competitive process set forth in §§ 585.210
through 585.225;
(2) If you submit a bid for the lease
area in a competitive lease sale, your
acquisition fee will be applied to the
deposit for your bonus bid; and
(3) If you do not submit a bid for the
lease area in a competitive lease sale,
BOEM will not refund your acquisition
fee.
(d) If BOEM determines that there is
no competitive interest in a lease, we
will publish in the FEDERAL REGISTER a
notice of Determination of No Competitive Interest. After BOEM publishes this notice, you will be responsible for submitting any required consistency certification and necessary
data and information pursuant to 15
CFR part 930, subpart D to the applicable State CZMA agency or agencies and
BOEM.
(e) BOEM will coordinate and consult
with affected Federal agencies, State,
and local governments, and affected Indian tribes in the review of noncompetitive lease requests.
(f) After completing the review of
your lease request, BOEM may offer
you a noncompetitive lease.
(g) If you accept the terms and conditions of the lease, then we will issue
the lease, and you must comply with
all terms and conditions of your lease
and all applicable provisions of this
part. If we issue you a lease, we will
send you a notice with 3 copies of the
lease form.
(1) Within 10 business days after you
receive the lease copies you must:
(i) Execute the lease;
(ii) File financial assurance as required under §§ 585.515 through 585.537;
and
(2) Within 45 days after you receive
the lease copies, you must pay the first
12-months’ rent, as required in § 585.503.
(h) BOEM will publish in the FEDERAL REGISTER a notice announcing the
issuance of your lease.
(i) If you do not accept the terms and
conditions, BOEM will not issue a

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Ocean Energy Management, Interior

§ 585.235

lease, and we will not refund your acquisition fee.
[76 FR 64623, Oct. 18, 2011, as amended at 77
FR 1019, Jan. 9, 2012; 79 FR 21622, Apr. 17,
2014]

§ 585.232 May I acquire a lease noncompetitively after responding to a
Request for Interest or Call for Information and Nominations?
(a) If you submit an area of interest
for a possible lease and BOEM receives
no competing submissions in response
to the RFI or Call, we may inform you
that there does not appear to be competitive interest, and ask if you wish to
proceed with acquiring a lease.
(b) If you wish to proceed with acquiring a lease, you must submit your

[76 FR 64623, Oct. 18, 2011, as amended at 77
FR 1019, Jan. 9, 2012]

§§ 585.233–585.234

[Reserved]

COMMERCIAL AND LIMITED LEASE TERMS
§ 585.235 If I have a commercial lease,
how long will my lease remain in effect?
(a) For commercial leases, the lease
terms and applicable automatic extensions are as shown in the following
table:

Lease term

Automatic extensions

Requirements

(1) Each commercial lease will have a
preliminary term of 12 months, within
which the lessee must submit: (i) a
SAP; or (ii) a combined SAP and Construction and Operations Plan (COP).
The preliminary term begins on the effective date of the lease.

If BOEM receives a SAP that satisfies
the requirements of §§ 585.605
through 585.613 or a SAP/COP that
satisfies
the
requirements
of
§§ 585.605 through 585.613 and
§§ 585.620 through 585.629, the preliminary term will be extended for the
time necessary for us to conduct technical and environmental reviews of the
SAP or SAP/COP.
If we receive a COP that satisfies the requirements of §§ 585.620 through
585.629, the site assessment term will
be automatically extended for the period of time necessary for us to conduct technical and environmental reviews of the COP.
.............................................................

The SAP must meet the requirements of
§§ 585.605 through 585.613. The
SAP/COP must meet the requirements
of §§ 585.605 through 585.613 and
§§ 585.620 through 585.629.

.............................................................

NOTE: BOEM may also order or grant a
suspension of the operations term, as
provided
in
§§ 585.415
through
585.421 thereby effectively extending
the term of the lease.

(2) A commercial lease will have a site
assessment term of five years to conduct site assessment activities and to
submit a COP, if a SAP/COP has not
been submitted. Your site assessment
term begins when BOEM approves your
SAP or SAP/COP.
(3) A commercial lease will have an operations term of 25 years, unless a longer
term is negotiated by the parties. A request for lease renewal must be submitted two years before the end of the
operations term. If you submit a COP,
your operations term begins on the date
that BOEM approves the COP. If you
submit a SAP/COP, your operations
term begins on the earliest of the following dates: five years after BOEM approves the SAP/COP; when fabrication
begins; or, when installation commences.
(4) A commercial lease may have additional time added to the operations term
through a lease renewal. The term of
the lease renewal will not exceed the
original term of the lease, unless a
longer term is negotiated by the parties.
The lease renewal term begins upon
expiration of the original operations
term.

pmangrum on DSK3GDR082PROD with CFR

acquisition
fee
as
specified
in
§ 585.502(a).
(c) After receiving the acquisition
fee, BOEM will follow the process outlined in § 585.231(d) through (i).

(b) If you do not timely submit a
SAP, COP, or SAP/COP, as appropriate,
you may request additional time to extend the preliminary or site assess-

The COP must meet the requirements of
§§ 585.620 through 585.629 of this
part.

The lease renewal request must meet
the
requirements
in
§§ 585.425
through 585.429.

ment term of your commercial lease

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§ 585.236

30 CFR Ch. V (7–1–17 Edition)

that includes a revised schedule for
submission of the plan, as appropriate.
[76 FR 64623, Oct. 18, 2011, as amended at 79
FR 21622, Apr. 17, 2014]
Lease term

Extension or suspension

Requirements

(1) Each limited lease has a preliminary
term of 12 months to submit a GAP.
The preliminary term begins on the effective date of the lease.

If we receive a GAP that satisfies the requirements of §§ 585.640 through
585.648 of this part, the preliminary
term will be automatically extended for
the period of time necessary for us to
conduct a technical and environmental
review of the plans.
We may order or grant a suspension of
the operations term as provided in
§§ 585.415 through 585.421.

The GAP must meet the requirements of
§§ 585.640 through 585.648.

(2) Each limited lease has an operations
term of five years for conducting site
assessment, technology testing, or
other activities. The operations term begins on the date that we approve your
GAP.

(b) If you do not timely submit a
GAP, you may request additional time
to extend the preliminary term of your
limited lease that includes a revised
schedule for submission of a GAP.
[76 FR 64623, Oct. 18, 2011, as amended at 79
FR 21622, Apr. 17, 2014]

§ 585.237 What is the effective date of a
lease?
(a) A lease issued under this part
must be dated and becomes effective as
of the first day of the month following
the date a lease is signed by the lessor.
(b) If the lessee submits a written request and BOEM approves, a lease may
be dated and become effective the first
day of the month in which it is signed
by the lessor.

pmangrum on DSK3GDR082PROD with CFR

§ 585.236 If I have a limited lease, how
long will my lease remain in effect?
(a) For limited leases, the lease
terms are as shown in the following
table:

§ 585.238 Are there any other renewable energy research activities that
will be allowed on the OCS?
(a) The Director may issue OCS
leases, ROW grants, and RUE grants to
a Federal agency or a State for renewable energy research activities that
support the future production, transportation, or transmission of renewable
energy.
(b) In issuing leases, ROW grants, and
RUE grants to a Federal agency or a
State on the OCS for renewable energy
research activities under this provision, BOEM will coordinate and consult
with other relevant Federal agencies,
any other affected State(s), affected
local government executives, and affected Indian Tribes.

(c) BOEM may issue leases, RUEs,
and ROWs for research activities managed by a Federal agency or a State
only in areas for which the Director
has determined, after public notice and
opportunity to comment, that no competitive interest exists.
(d) The Director and the head of the
Federal agency or the Governor of a requesting State, or their authorized representatives, will negotiate the terms
and conditions of such renewable energy leases, RUEs, or ROWs under this
provision on a case-by-case basis. The
framework for such negotiations, and
standard terms and conditions of such
leases, RUEs, or ROWs may be set
forth in a memorandum of agreement
(MOA) or other agreement between
BOEM and a Federal agency or a State.
The MOA must include the agreement
of the head of the Federal agency or
the Governor to assure that all subcontractors comply with these regulations, other applicable laws, and terms
and conditions of such leases or grants.
(e) Any lease, RUE, or ROW that
BOEM issues to a Federal agency or to
a State that authorizes access to an
area of the OCS for research activities
managed by a Federal agency or a
State must include:
(1) Requirements to comply with all
applicable Federal laws; and
(2) Requirements to comply with
these regulations, except as otherwise
provided in the lease or grant.

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Ocean Energy Management, Interior

§ 585.303

(f) BOEM will issue a public notice of
any lease, RUE, ROW issued to a Federal agency or to a State, or an approved MOA for such research activities.
(g) BOEM will not charge any fees for
the purpose of ensuring a fair return
for the use of such research areas on
the OCS.

Subpart C—Rights-of-Way Grants
and Rights-of-Use and Easement Grants for Renewable
Energy Activities
ROW GRANTS AND RUE GRANTS

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§ 585.300 What types of activities are
authorized by ROW grants and RUE
grants issued under this part?
(a) An ROW grant authorizes the
holder to install on the OCS cables,
pipelines, and associated facilities that
involve the transportation or transmission of electricity or other energy
product
from
renewable
energy
projects.
(b) An RUE grant authorizes the
holder to construct and maintain facilities or other installations on the
OCS that support the production,
transportation, or transmission of electricity or other energy product from
any renewable energy resource.
(c) You do not need an ROW grant or
RUE grant for a project easement authorized under § 585.200(b) to serve your
lease.
§ 585.301 What do ROW grants and
RUE grants include?
(a) An ROW grant:
(1) Includes the full length of the corridor on which a cable, pipeline, or associated facility is located;
(2) Is 200 feet (61 meters) in width,
centered on the cable or pipeline, unless safety and environmental factors
during construction and maintenance
of the associated cable or pipeline require a greater width; and
(3) For the associated facility, is limited to the area reasonably necessary
for a power or pumping station or
other accessory facility.
(b) An RUE grant includes the site on
which a facility or other structure is
located and the areal extent of anchors, chains, and other equipment as-

sociated with a facility or other structure. The specific boundaries of an
RUE will be determined by BOEM on a
case-by-case basis and set forth in each
RUE grant.
§ 585.302 What are the general requirements for ROW grant and RUE
grant holders?
(a) To acquire an ROW grant or RUE
grant you must provide evidence that
you meet the qualifications as required
in § 585.107.
(b) An ROW grant or RUE grant is
subject to the following conditions:
(1) The rights granted will not prevent the granting of other rights by
the United States, either before or
after the granting of the ROW or RUE,
provided that any subsequent authorization issued by BOEM in the area of
a previously issued ROW grant or RUE
grant may not unreasonably interfere
with activities approved or impede existing operations under such a grant;
and
(2) The holder agrees that the United
States, its lessees, or other ROW grant
or RUE grant holders may use or occupy any part of the ROW grant or
RUE grant not actually occupied or
necessarily incident to its use for any
necessary activities.
§ 585.303 How long will my ROW grant
or RUE grant remain in effect?
(a) Each ROW or RUE grant will have
a preliminary term of 12 months from
the date of issuance of the ROW or
RUE grant within which to submit a
GAP. The preliminary term begins on
the effective date of the grant. You
must submit a GAP no later than the
end of the preliminary term for your
grant to remain in effect. However, you
may submit a GAP prior to the
issuance of your ROW or RUE grant.
(b) Except as described in paragraph
(a) of this section, your ROW grant or
RUE grant will remain in effect for as
long as the associated activities are
properly maintained and used for the
purpose for which the grant was made,
unless otherwise expressly stated in
the grant.
[79 FR 21623, Apr. 17, 2014]

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§ 585.304
§ 585.304

30 CFR Ch. V (7–1–17 Edition)
[Reserved]

§ 585.307 How will BOEM determine
whether competitive interest exists
for ROW grants and RUE grants?

OBTAINING ROW GRANTS AND RUE
GRANTS

pmangrum on DSK3GDR082PROD with CFR

§ 585.305 How do I request an ROW
grant or RUE grant?
You must submit to BOEM one paper
copy and one electronic copy of a request for a new or modified ROW grant
or RUE grant. You must submit a separate request for each ROW grant or
RUE grant you are requesting. The request must contain the following information:
(a) The area you are requesting for a
ROW grant or RUE grant.
(b) A general description of your objectives and the facilities that you
would use to achieve those objectives.
(c) A general schedule of proposed activities.
(d) Pertinent information concerning
environmental conditions in the area
of interest.
§ 585.306 What action will BOEM take
on my request?
BOEM will consider requests for ROW
grants and RUE grants on a case-bycase basis and may issue a grant competitively, as provided in § 585.308, or
noncompetitively if we determine after
public notice that there is no competitive interest. BOEM will coordinate
and consult with relevant Federal
agencies, with the Governor of any affected State, and the executive of any
affected local government.
(a) In response to an unsolicited request for a ROW grant or RUE grant,
the BOEM will first determine if there
is competitive interest, as provided in
§ 585.307.
(b) If BOEM determines that there is
no competitive interest in a ROW grant
or RUE grant, we will publish a notice
in the FEDERAL REGISTER of such determination. After BOEM publishes this
notice, you will be responsible for submitting any required consistency certification and necessary data and information pursuant to 15 CFR part 930,
subpart D to the applicable State
CZMA agency or agencies and BOEM.
We will establish terms and conditions
for the grant in consultation with you.
[76 FR 64623, Oct. 18, 2011, as amended at 79
FR 21623, Apr. 17, 2014]

To determine whether or not there is
competitive interest:
(a) We will publish a public notice,
describing the parameters of the
project, to give affected and interested
parties an opportunity to comment on
the proposed ROW grant or RUE grant
area.
(b) We will evaluate any comments
received on the notice and make a determination of the level of competitive
interest.
§ 585.308 How will BOEM conduct an
auction for ROW grants and RUE
grants?
(a) If BOEM determines that there is
competitive interest, we will:
(1) Publish a notice of each grant
auction in the FEDERAL REGISTER describing auction procedures, allowing
interested persons 30 days to comment;
and
(2) Conduct a competitive auction for
issuing the ROW grant or RUE grant.
The auction process for ROW grants
and RUE grants will be conducted following the same process for leases set
forth in §§ 585.211 through 585.225.
(b) If you are the successful bidder in
an auction, you must pay the first
year’s rent, as provided in § 585.316.
§ 585.309 When will BOEM issue a noncompetitive ROW grant or RUE
grant?
After completing the review of your
grant request, BOEM may offer you a
noncompetitive grant.
(a) If you accept the terms and conditions of the grant, then we will issue
the grant, and you must comply with
all terms and conditions of your grant
and all applicable provisions of this
part.
(b) If you do not accept the terms and
conditions, BOEM will not issue a
grant.
[76 FR 64623, Oct. 18, 2011, as amended at 79
FR 21623, Apr. 17, 2014]

§ 585.310 What is the effective date of
an ROW grant or RUE grant?
Your ROW grant or RUE grant becomes effective on the date established

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Ocean Energy Management, Interior

§ 585.401

by BOEM on the ROW grant or RUE
grant instrument.
§§ 585.311–585.314

[Reserved]

FINANCIAL REQUIREMENTS FOR ROW
GRANTS AND RUE GRANTS
§ 585.315 What deposits are required
for a competitive ROW grant or
RUE grant?
(a) You must make a deposit, as required in § 585.501(a), regardless of
whether the auction is a sealed-bid,
oral, electronic, or other auction format. BOEM will specify in the sale notice the official to whom you must submit the payment, the time by which
the official must receive the payment,
and the forms of acceptable payment.
(b) If your high bid is rejected, we
will provide a written statement of reasons.
(c) For all rejected bids, we will refund, without interest, any money deposited with your bid.
§ 585.316 What payments are required
for ROW grants or RUE grants?
Before we issue the ROW grant or
RUE grant, you must pay:
(a) Any balance on accepted high bids
to BOEM, as provided in the sale notice.
(b) An annual rent for the first year
of the grant, as specified in § 585.508.

Subpart D—Lease and Grant
Administration

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NONCOMPLIANCE AND CESSATION ORDERS
§ 585.400 What happens if I fail to comply with this part?
(a) BOEM may take appropriate corrective action under this part if you
fail to comply with applicable provisions of Federal law, the regulations in
this part, other applicable regulations,
any order of the Director, the provisions of a lease or grant issued under
this part, or the requirements of an approved plan or other approval under
this part.
(b) BOEM may issue to you a notice
of noncompliance if we determine that
there has been a violation of the regulations in this part, any order of the
Director, or any provision of your
lease, grant or other approval issued

under this part. When issuing a notice
of noncompliance, BOEM will serve
you at your last known address.
(c) A notice of noncompliance will
tell you how you failed to comply with
this part, any order of the Director,
and/or the provisions of your lease,
grant or other approval, and will specify what you must do to correct the
noncompliance and the time limits
within which you must act.
(d) Failure of a lessee, operator, or
grant holder under this part to take
the actions specified in a notice of noncompliance within the time limit specified provides the basis for BOEM to
issue a cessation order as provided in
§ 585.401, and/or a cancellation of the
lease or grant as provided in § 585.437.
(e) If BOEM determines that any incident of noncompliance poses an imminent threat of serious or irreparable
damage to natural resources; life (including human and wildlife); property;
the marine, coastal, or human environment; or sites, structures, or objects of
historical or archaeological significance, BOEM may include with its notice of noncompliance an order directing you to take immediate remedial
action to alleviate threats and to abate
the violation and, when appropriate, a
cessation order.
(f) The BOEM may assess civil penalties, as authorized by section 24 of
the OCS Lands Act, if you fail to comply with any provision of this part or
any term of a lease, grant, or order
issued under the authority of this part,
after notice of such failure and expiration of any reasonable period allowed
for corrective action. Civil penalties
will be determined and assessed in accordance with the procedures set forth
in 30 CFR part 550, subpart N.
(g) You may be subject to criminal
penalties as authorized by section 24 of
the OCS Lands Act.
§ 585.401 When may BOEM issue a cessation order?
(a) BOEM may issue a cessation order
during the term of your lease or grant
when you fail to comply with an applicable law; regulation; order; or provision of a lease, grant, plan, or other
BOEM approval under this part. Except
as provided in § 585.400(e), BOEM will
allow you a period of time to correct

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§ 585.402

30 CFR Ch. V (7–1–17 Edition)

any noncompliance before issuing an
order to cease activities.
(b) A cessation order will set forth
what measures you are required to
take, including reports you are required to prepare and submit to BOEM,
to receive approval to resume activities on your lease or grant.
§ 585.402 What is the effect of a cessation order?
(a) Upon receiving a cessation order,
you must cease all activities on your
lease or grant, as specified in the order.
BOEM may authorize certain activities
during the period of the cessation
order.
(b) A cessation order will last for the
period specified in the order or as otherwise specified by BOEM. If BOEM determines that the circumstances giving
rise to the cessation order cannot be
resolved within a reasonable time period, the Secretary may initiate cancellation of your lease or grant, as provided in § 585.437.
(c) A cessation order does not extend
the term of your lease or grant for the
period you are prohibited from conducting activities.
(d) You must continue to make all
required payments on your lease or
grant during the period a cessation
order is in effect.
§§ 585.403–585.404

[Reserved]

DESIGNATION OF OPERATOR

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§ 585.405 How do I designate an operator?
(a) If you intend to designate an operator who is not the lessee or grant
holder, you must identify the proposed
operator
in
your
SAP
(under
§ 585.610(a)(3)),
COP
(under
§ 585.626(b)(2)),
or
GAP
(under
§ 585.645(b)(3)), as applicable. If no operator is designated in a SAP, COP, or
GAP, BOEM will deem the lessee or
grant holder to be the operator.
(b) An operator must be designated in
any SAP, COP, or GAP if there is more
than one lessee or grant holder for any
individual lease or grant.
(c) Once approved in your plan, the
designated operator is authorized to
act on your behalf and required to perform activities necessary to comply

with the OCS Lands Act, the lease or
grant, and the regulations in this part.
(d) You, or your designated operator,
must immediately provide BOEM with
a written notification of change of address of the lessee or operator.
(e) If there is a change in the designated operator, you must provide
written notice to BOEM and identify
the new designated operator within 72
hours on a form approved by BOEM.
The lessee(s) or grantee(s) is the operator and responsible for compliance
until BOEM approves designation of
the new operator.
(f) Designation of an operator under
any lease or grant issued under this
part does not relieve the lessee or
grant holder of its obligations under
this part or its lease or grant.
(g) A designated operator performing
activities on the lease must comply
with all regulations governing those
activities and may be held liable or penalized for any noncompliance during
the time it was operator, notwithstanding its subsequent resignation.
§ 585.406 Who is responsible for fulfilling lease and grant obligations?
(a) When you are not the sole lessee
or grantee, you and your co-lessee(s) or
co-grantee(s) are jointly and severally
responsible for fulfilling your obligations under the lease or grant and the
provisions of this part, unless otherwise provided in these regulations.
(b) If your designated operator fails
to fulfill any of your obligations under
the lease or grant and this part, BOEM
may require you or any or all of your
co-lessees or co-grantees to fulfill
those obligations or other operational
obligations under the OCS Lands Act,
the lease, grant, or the regulations.
(c) Whenever the regulations in this
part require the lessee or grantee to
conduct an activity in a prescribed
manner, the lessee or grantee and operator (if one has been designated) are
jointly and severally responsible for
complying with the regulations.

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Ocean Energy Management, Interior
§ 585.407

§ 585.411
notify BOEM of these events under
§ 585.109.

[Reserved]

LEASE OR GRANT ASSIGNMENT

pmangrum on DSK3GDR082PROD with CFR

§ 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, 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.
(b) You may assign a lease or grant
interest by submitting one paper copy
and one electronic copy of an assignment application to BOEM. The assignment application must include:
(1) BOEM-assigned lease or grant
number;
(2) A description of the geographic
area or undivided interest you are assigning;
(3) The names of both the assignor
and the assignee, if applicable;
(4) The names and telephone numbers
of the contacts for both the assignor
and the assignee;
(5) The names, titles, and signatures
of the authorizing officials for both the
assignor and the assignee;
(6) A statement that the assignee
agrees to comply with and to be bound
by the terms and conditions of the
lease or grant;
(7) The qualifications of the assignee
to hold a lease or grant under § 585.107;
and
(8) A statement on how the assignee
will comply with the financial assurance requirements of §§ 585.515 through
585.537. No assignment will be approved
until the assignee provides the required
financial assurance.
(c) 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.
(d) The assignment takes effect on
the date BOEM approves your application.
(e) You do not need to request an assignment for mergers, name changes,
or changes of business form. You must

§ 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
§§ 585.515 through 585.537.
(c) The assignee must submit proof of
eligibility and other qualifications
specified in § 585.107.
(d) Persons executing on behalf of the
assignor and assignee must furnish evidence of authority to execute the assignment.
§ 585.410 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.
§ 585.411 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 subpart I
of this part.
(b) Assignees are bound to comply
with each term or condition of the
lease or grant and the regulations in

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§§ 585.412–585.414

30 CFR Ch. V (7–1–17 Edition)

this subchapter. You are jointly and
severally liable for the performance of
all obligations under the lease or grant
and under the regulations in this part
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.
§§ 585.412–585.414

[Reserved]

LEASE OR GRANT SUSPENSION
§ 585.415 What is a lease or grant suspension?
(a) A suspension is an interruption of
the term of your lease or grant that
may occur:
(1) As approved by BOEM at your request, as provided in § 585.416; or
(2) As ordered by BOEM, as provided
in § 585.417.
(b) A suspension extends the term of
your lease or grant for the length of
time the suspension is in effect.
(c) Activities may not be conducted
on your lease or grant during the period of a suspension except as expressly
authorized by BOEM under the terms
of the suspension.

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§ 585.416 How do I request a lease or
grant suspension?
You must submit a written request
to BOEM that includes the following
information no later than 90 days prior
to the expiration of your appropriate
lease or grant term:
(a) The reasons you are requesting
suspension of your lease or grant term,
and the length of additional time requested.
(b) An explanation of why the suspension is necessary in order to ensure full
enjoyment of your lease or grant and
why it is in the lessor’s or grantor’s interest to approve the suspension.
(c) If you do not timely submit a
SAP, COP, or GAP, as required, you
may request a suspension to extend the
preliminary or site assessment term of
your lease or grant that includes a revised schedule for submission of a SAP,
COP, or GAP, as appropriate.
(d) Any other information BOEM
may require.

§ 585.417 When may BOEM order a
suspension?
(a) BOEM may order a suspension
under the following circumstances:
(1) When necessary to comply with
judicial decrees prohibiting some or all
activities under your lease;
(2) When continued activities pose an
imminent threat of serious or irreparable harm or damage to natural resources; life (including human and
wildlife); property; the marine, coastal,
or human environment; or sites, structures, or objects of historical or archaeological significance; or
(3) When the suspension is necessary
for reasons of National security or defense.
(b) If BOEM orders a suspension
under paragraph (a)(2) of this section,
and if you wish to resume activities,
we may require you to conduct a sitespecific study that evaluates the cause
of the harm, the potential damage, and
the available mitigation measures.
Other requirements and actions may
occur:
(1) You may be required to pay for
the study;
(2) You must furnish one paper copy
and one electronic copy of the study
and results to us;
(3) We will make the results available
to other interested parties and to the
public; and
(4) We will use the results of the
study and any other information that
become available:
(i) To decide if the suspension order
can be lifted; and
(ii) To determine any actions that
you must take to mitigate or avoid any
damage to natural resources; life (including human and wildlife); property;
the marine, coastal, or human environment; or sites, structures, or objects of
historical or archaeological significance.
§ 585.418 How will BOEM issue a suspension?
(a) BOEM will issue a suspension
order orally or in writing.
(b) BOEM will send you a written
suspension order as soon as practicable
after issuing an oral suspension order.
(c) The written order will explain the
reasons for its issuance and describe
the effect of the suspension order on

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Ocean Energy Management, Interior

§ 585.428

your lease or grant and any associated
activities. BOEM may authorize certain activities during the period of the
suspension, as set forth in the suspension order.
§ 585.419 What are my immediate responsibilities if I receive a suspension order?
You must comply with the terms of a
suspension order upon receipt and take
any action prescribed within the time
set forth therein.
§ 585.420 What effect does a suspension order have on my payments?
(a) While BOEM evaluates your request for a suspension under § 585.416,
you must continue to fulfill your payment obligation until the end of the
original term of your lease or grant. If
our evaluation goes beyond the end of
the original term of your lease or
grant, the term of your lease or grant
will be extended for the period of time
necessary for BOEM to complete its
evaluation of your request, but you
will not be required to make payments
during the time of the extension.
(b) If BOEM approves your request
for a suspension, as provided in
§ 585.416, we may suspend your payment
obligation, as appropriate for the term
that is suspended, depending on the
reasons for the requested suspension.
(c) If BOEM orders a suspension, as
provided in § 585.417, your payments, as
appropriate for the term that is suspended, will be waived during the suspension period.

pmangrum on DSK3GDR082PROD with CFR

§ 585.421 How long will a suspension
be in effect?
A suspension will be in effect for the
period specified by BOEM.
(a) BOEM will not approve a suspension request pursuant to § 585.416 for a
period longer than 2 years.
(b) If BOEM determines that the circumstances giving rise to a suspension
ordered under § 585.417 cannot be resolved within 5 years, the Secretary
may initiate cancellation of the lease
or grant, as provided in § 585.437.

§§ 585.422–585.424

[Reserved]

LEASE OR GRANT RENEWAL
§ 585.425 May I obtain a renewal of my
lease or grant before it terminates?
You may request renewal of the operations term of your lease or the original authorized term of your grant.
BOEM, at its discretion, may approve a
renewal request to conduct substantially similar activities as were originally authorized under the lease or
grant. BOEM will not approve a renewal request that involves development of a type of renewable energy not
originally authorized in the lease or
grant. BOEM may revise or adjust payment terms of the original lease, as a
condition of lease renewal.
§ 585.426 When must I submit my request for renewal?
(a) You must request a renewal from
BOEM:
(1) No later than 180 days before the
termination date of your limited lease
or grant.
(2) No later than 2 years before the
termination date of the operations
term of your commercial lease.
(b) You must submit to BOEM all information we request pertaining to
your lease or grant and your renewal
request.
§ 585.427

How long is a renewal?

BOEM will set the term of a renewal
at the time of renewal on a case-bycase basis.
(a) For commercial leases, a renewal
term will not exceed the original operations term unless a longer term is negotiated by the applicable parties.
(b) For limited leases, a renewal term
will not exceed the original operations
term.
(c) For RUE and ROW grants, a renewal will continue for as long as the
associated activities are conducted and
facilities properly maintained and used
for the purpose for which the grant was
made, unless otherwise expressly stated.
§ 585.428 What effect does applying for
a renewal have on my activities and
payments?
If you timely request a renewal:

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§ 585.429

30 CFR Ch. V (7–1–17 Edition)

(a) You may continue to conduct activities approved under your lease or
grant under the original terms and
conditions for as long as your request
is pending decision by BOEM.
(b) You may request a suspension of
your lease or grant, as provided in
§ 585.416, while we consider your request.
(c) For the period BOEM considers
your request for renewal, you must
continue to make all payments in accordance with the original terms and
conditions of your lease or grant.
§ 585.429 What criteria will BOEM consider in deciding whether to renew
a lease or grant?
BOEM will consider the following criteria in deciding whether to renew a
lease or grant:
(a) Design life of existing technology.
(b) Availability and feasibility of new
technology.
(c) Environmental and safety record
of the lessee or grantee.
(d) Operational and financial compliance record of the lessee or grantee.
(e) Competitive interest and fair return considerations.
(f) Effects of the lease or grant on
generation capacity and reliability
within the regional electrical distribution and transmission system.
§§ 585.430–585.431

[Reserved]

LEASE OR GRANT TERMINATION

pmangrum on DSK3GDR082PROD with CFR

§ 585.432 When does my lease or grant
terminate?
Your lease or grant terminates on
whichever of the following dates occurs
first:
(a) The expiration of the applicable
term of your lease or grant, unless
your term is automatically extended
under § 585.235 or § 585.236, a request for
renewal of your lease or grant is pending a decision by BOEM, or your lease
or grant is suspended or renewed as
provided in this subpart;
(b) A cancellation, as set forth in
§ 585.437; or
(c) Relinquishment, as set forth in
§ 585.435.

§ 585.433 What must I do after my
lease or grant terminates?
(a) After your lease or grant terminates, you must:
(1) Make all payments due, including
any accrued rentals and deferred bonuses; and
(2) Perform any other outstanding
obligations under the lease or grant
within 6 months.
(b) Within 2 years following termination of a lease or grant, you must remove or dispose of all facilities, installations, and other devices permanently
or temporarily attached to the seabed
on the OCS in accordance with a plan
or application approved by BOEM
under subpart I of this part.
(c) If you fail to comply with your
approved decommissioning plan or application:
(1) BOEM may call for the forfeiture
of your financial assurance; and
(2) You remain liable for removal or
disposal costs and responsible for accidents or damages that might result
from such failure.
§ 585.434

[Reserved]

LEASE OR GRANT RELINQUISHMENT
§ 585.435 How can I relinquish a lease
or a grant or parts of a lease or
grant?
(a) You may surrender the lease or
grant, or an officially designated subdivision thereof, by filing one paper
copy and one electronic copy of a relinquishment application with BOEM. A
relinquishment takes effect on the date
we approve your application, subject to
the continued obligation of the lessee
and the surety to:
(1) Make all payments due on the
lease or grant, including any accrued
rent and deferred bonuses;
(2) Decommission all facilities on the
lease or grant to be relinquished to the
satisfaction of BOEM; and
(3) Perform any other outstanding
obligations under the lease or grant.
(b) Your relinquishment application
must include:
(1) Name;
(2) Contact name;
(3) Telephone number;
(4) Fax number;
(5) E-mail address;

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Ocean Energy Management, Interior

§ 585.500

(6) BOEM-assigned lease or grant
number, and, if applicable, the name of
any facility;
(7) A description of the geographic
area you are relinquishing;
(8) The name, title, and signature of
your authorizing official (the name,
title, and signature must match exactly the name, title, and signature in
BOEM qualification records); and
(9) A statement that you will adhere
to the requirements of subpart I of this
part.
(c) If you have submitted an application to relinquish a lease or grant, you
will be billed for any outstanding payments that are due before the relinquishment takes effect, as provided in
paragraph (a) of this section.
LEASE OR GRANT CONTRACTION
§ 585.436 Can BOEM require lease or
grant contraction?

pmangrum on DSK3GDR082PROD with CFR

At an interval no more frequent than
every 5 years, the BOEM may review
your lease or grant area to determine
whether the lease or grant area is larger than needed to develop the project
and manage activities in a manner that
is consistent with the provisions of this
part. BOEM will notify you of our proposal to contract the lease or grant
area.
(a) BOEM will give you the opportunity to present orally or in writing
information demonstrating that you
need the area in question to manage
lease or grant activities consistent
with these regulations.
(b) Prior to taking action to contract
the lease or grant area, BOEM will
issue a decision addressing your contentions that the area is needed.
(c) You may appeal this decision
under § 585.118 of this part.

(b) The Secretary may cancel any
lease or grant issued under this part
when:
(1) The Secretary determines after
notice and opportunity for a hearing
that, with respect to the lease or grant
that would be canceled, the lessee or
grantee has failed to comply with any
applicable provision of the OCS Lands
Act or these regulations; any order of
the Director; or any term, condition or
stipulation contained in the lease or
grant, and that the failure to comply
continued 30 days (or other period
BOEM specifies) after you receive notice from BOEM. The Secretary will
mail a notice by registered or certified
letter to the lessee or grantee at its
record post office address;
(2) The Secretary determines after
notice and opportunity for a hearing
that you have terminated commercial
operations under your COP, as provided
in § 585.635, or other approved activities
under your GAP, as provided in
§ 585.656;
(3) Required by National security or
defense; or
(4) The Secretary determines after
notice and opportunity for a hearing
that continued activity under the lease
or grant:
(i) Would cause serious harm or damage to natural resources; life (including
human and wildlife); property; the marine, coastal, or human environment;
or sites, structures, or objects of historical or archaeological significance;
and
(ii) That the threat of harm or damage would not disappear or decrease to
an acceptable extent within a reasonable period of time; and
(iii) The advantages of cancellation
outweigh the advantages of continuing
the lease or grant in force.

LEASE OR GRANT CANCELLATION

Subpart E—Payments and
Financial Assurance Requirements

§ 585.437 When can my lease or grant
be canceled?

PAYMENTS

(a) The Secretary will cancel any
lease or grant issued under this part
upon proof that it was obtained by
fraud or misrepresentation, and after
notice and opportunity to be heard has
been afforded to the lessee or grant
holder.

§ 585.500 How do I make payments
under this part?
(a) For acquisition fees or the initial
12-months’ rent paid for the preliminary term of your lease, you must
make
your
electronic
payments
through the Fees for Services page on

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§ 585.501

30 CFR Ch. V (7–1–17 Edition)

the
BOEM
Web
site
at
http://
www.boem.gov, and you must include
one copy of the Pay.gov confirmation
receipt page with your unsolicited request.
(b) For all other required rent payments and for operating fee payments,
Payment

you must make your payments as required in 30 CFR 1218.51.
(c) This table summarizes payments
you must make for leases and grants,
unless otherwise specified in the Final
Sale Notice:

Amount

Due date

Payment mechanism

Section reference

Initial payments for leases
(1) If your lease is
issued competitively,

(2) If your lease is
issued non-competitively.

Bid Deposit ..........

Bonus Balance ....
Acquisition Fee ....

(3) All leases ...............

Initial Rent ...........

(4) All leases ...............

Subsequent Rent

(5) If you have a
project easement.

Rent .....................

(7) If your commercial
lease is producing,

Operating Fee .....

As set in Final
Sale Notice/depends on bid.
..............................
$0.25 per acre,
unless otherwise set by the
Director.
$3 per acre per
year.

With bid ...............

Pay.Gov ...............

§ 585.501.

Lease issuance ...
With application ...

30 CFR 1218.51.
Pay.gov ................

§ 585.502.

45 days after
lease issuance.

Pay.gov ................

§ 585.503.

Subsequent payments for leases and project easements
$3 per acre per
year.
Greater of $5 per
acre per year or
$450 per year.

Determined by the
formula in
§ 585.506.

Annually ...............

30 CFR 1218.51 ..

When operations
term for associated lease
starts, then annually.
Annually ...............

30 CFR 1218.51 ..

§§ 585.503 and
585.504.
§ 585.507.

30 CFR 1218.51 ..

§ 585.506.

Grant Issuance ....

Pay.gov ................

§ 585.508.

Annually or in 5year batches.

30 CFR 1218.51.

Payments for ROW grants and RUE grants*
(8) All ROW grants and
RUE grants.

Initial Rent ...........

Subsequent Rent

$70 per statute
mile, and the
greater of $5
per acre per
year or $450
per year.
..............................

* There is no acquisition fee for ROW grants or RUE grants.

[76 FR 64623, Oct. 18, 2011, as amended at 79
FR 21623, Apr. 17, 2014]

pmangrum on DSK3GDR082PROD with CFR

§ 585.501 What deposits must I submit
for a competitively issued lease,
ROW grant, or RUE grant?
(a) For a competitive lease or grant
that we offer through sealed bidding,
you must submit a deposit of 20 percent of the total bid amount, unless
some other amount is specified in the
Final Sale Notice.
(b) For a competitive lease that we
offer through ascending bidding, you
must submit a deposit as established in
the Final Sale Notice.
(c) You must pay any balances on accepted high bids in accordance with the

Final Sale Notice, this part, and your
lease or grant instrument.
(d) The deposit will be forfeited for
any successful bidder who fails to execute the lease within the prescribed
time, or otherwise does not comply
with the regulations concerning acquisition of a lease or grant or stipulations in the Final Sale Notice.
§ 585.502 What initial payment requirements must I meet to obtain a
noncompetitive lease, ROW grant,
or RUE grant?
When requesting a noncompetitive
lease, you must meet the initial payment (acquisition fee) requirements of
this section, unless specified otherwise

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Ocean Energy Management, Interior

§ 585.505

in your lease instrument. No initial
payment is required when requesting
noncompetitive ROW grants and RUE
grants.
(a) If you request a noncompetitive
lease, you must submit an acquisition
fee of $0.25 per acre, unless otherwise
set by the Director, as provided in
§ 585.500.
(b) If BOEM determines there is no
competitive interest, we will then:
(1) Retain your acquisition fee if we
issue you a lease; or
(2) Refund your acquisition fee, without interest, if we do not issue your requested lease.
(c) If we determine that there is a
competitive interest in an area you requested, then we will proceed with a
competitive lease sale process provided
for in subpart B of this part, and we
will:
(1) Apply your acquisition fee to the
required deposit for your bid amount if
you submit a bid;
(2) Apply your acquisition fee to your
bonus bid if you acquire the lease; or
(3) Retain your acquisition fee if you
do not bid for or acquire the lease.

pmangrum on DSK3GDR082PROD with CFR

§ 585.503 What are the rent and operating fee requirements for a commercial lease?
(a) The rent for a commercial lease is
$3 per acre per year, unless otherwise
established in the Final Sale Notice or
lease.
(1) You must pay ONRR the initial
12-months’ rent 45 days after you receive the lease copies from BOEM in
accordance with the requirements provided in § 585.500(a).
(2) You must pay ONRR, under the
regulations at 30 CFR part 1218, rent at
the beginning of each subsequent 1year period in accordance with the regulations at 30 CFR 1218.51 for the entire
lease area until the facility begins to
generate commercially, as specified in
§ 585.506 or as otherwise specified in the
Final Sale Notice or lease instrument:
(i) For leases issued competitively,
the BOEM will specify in the Final
Sale Notice and lease any adjustment
to the rent fee to take effect during the
operations term and prior to the commercial generation.
(ii) For leases issued noncompetitively, the BOEM will specify in the

lease any adjustment to the rent fee to
take effect during the operations term
and prior to the commercial generation.
(3) You must pay ONRR, under the
regulations at 30 CFR part 1218, the
rent for a project easement in addition
to the lease rent, as provided in
§ 585.507. You must commence rent payments for your project easement upon
our approval of your COP or GAP.
(b) After your lease begins commercial generation of electricity or on the
date specified by BOEM, you must pay
operating fees in the amount specified
in § 585.506:
(1) For leases issued competitively,
BOEM will specify in the Final Sale
Notice and lease the date when operating fees commence; and
(2) For leases issued noncompetitively, BOEM will specify in the lease
the date when operating fee commences.
[76 FR 64623, Oct. 18, 2011, as amended at 79
FR 21623, Apr. 17, 2014]

§ 585.504 How are my payments affected if I develop my lease in
phases?
If you develop your commercial lease
in phases, as approved by us in your
COP under § 585.629, you must pay
ONRR, under the regulations at 30 CFR
part 1218:
(a) Rent on the portion of the lease
that is not authorized for commercial
operations.
(b) Operating fees on the portion of
the lease that is authorized for commercial operations, in the amount
specified in § 585.506 and as described in
§ 585.503(b).
(c) Rent for a project easement in addition to lease rent, as provided in
§ 585.507. You must commence rent payments for your project easement upon
our approval of your COP.
§ 585.505 What are the rent and operating fee requirements for a limited
lease?
(a) The rent for a limited lease is $3
per acre per year, unless otherwise established in the Final Sale Notice and
your lease instrument.
(b) You must pay ONRR the initial
12-months’ rent 45 days after you receive the lease copies from BOEM in

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§ 585.506

30 CFR Ch. V (7–1–17 Edition)

accordance with the requirements provided in § 585.500(a).
(c) You must pay ONRR, under the
regulations at 30 CFR part 1218, rent at
the beginning of each subsequent 1year period on the entire lease area for
the duration of your operations term in
accordance with the regulations at 30
CFR 1218.51.
(d) BOEM will not charge an operating fee for the authorized sale of
power from a limited lease.

the generation of electricity on your
lease based on the following formula,
F = M * H * c * P * r,
Where:
(1) F is the dollar amount of the annual operating fee;
(2) M is the nameplate capacity expressed in
megawatts;
(3) H is the number of hours in a year, equal
to 8,760, used to calculate an annual payment;
(4) c is the ‘‘capacity factor’’ representing
the anticipated efficiency of the facility’s operation expressed as a decimal between zero and one;
(5) P is a measure of the annual average
wholesale electric power price expressed
in dollars per megawatt hour, as provided in paragraph (c)(2) of this section;
and
(6) r is the operating fee rate expressed as a
decimal between zero and one.

[76 FR 64623, Oct. 18, 2011, as amended at 79
FR 21623, Apr. 17, 2014]

§ 585.506 What operating fees must I
pay on a commercial lease?
If you are generating electricity, you
must pay ONRR, under the regulations
at 30 CFR part 1218, operating fees on
your commercial lease when you begin
commercial generation, as described in
§ 585.503.
(a) BOEM will determine the annual
operating fee for activities relating to

pmangrum on DSK3GDR082PROD with CFR

F
(annual operating fee)

=

M
(nameplate
capacity)

*

H
(hours per
year)

(b) The annual operating fee formula
relating to the value of annual electricity generation is restated as:
c
(capacity factor)

*

(c) BOEM will specify operating fee
parameters in the Final Sale Notice for
commercial leases issued competitively
and in the lease for those issued noncompetitively.
(1) Unless BOEM specifies otherwise,
in the operating fee rate, ‘‘r’’ is 0.02 for
each year the operating fee applies
when you begin commercial generation
of electricity. We may apply a different
fee rate for new projects (i.e., a new
generation based on new technology)
after considering factors such as program objectives, state of the industry,
project type, and project potential.
Also, we may agree to reduce or waive
the fee rate under § 585.510.
(2) The power price ‘‘P,’’ for each
year when the operating fee applies,
will be determined annually. The process by which the power price will be determined will be specified in the Final
Sale Notice and/or in the lease. BOEM:
(i) Will use the most recent annual
average wholesale power price in the
State in which a project’s transmission
cables make landfall, as published by

*

P
(power price)

*

r
(operating fee
rate)

the DOE, Energy Information Administration (EIA), or other publicly available wholesale power price indices; and
(ii) May adjust the published average
wholesale power price to reflect documented variations by State or within a
region and recent market conditions.
(3) BOEM will select the capacity factor ‘‘c’’ based upon applicable analogs
drawn from present and future domestic and foreign projects that operate in
comparable conditions and on comparable scales.
(i) Upon the completion of the first
year of commercial operations on the
lease, BOEM may adjust the capacity
factor as necessary (to accurately represent a comparison of actual production over a given period of time with
the amount of power a facility would
have produced if it had run at full capacity) in a subsequent year.
(ii) After the first adjustment, BOEM
may adjust the capacity factor (to accurately represent a comparison of actual generation over a given period of

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Ocean Energy Management, Interior

§ 585.509

time with the amount of power a facility would have generated if it had run
at full capacity) no earlier than in 5year intervals from the most recent
year that BOEM adjusts the capacity
factor.
(iii) The process by which BOEM will
adjust the capacity factor, including
any calculations (incorporating an average capacity factor reflecting actual
operating experience), will be specified
in the lease. The operator or lessee
may request review and adjustment of
the capacity factor under § 585.510.
(4) Ten days after the anniversary
date of when you began to commercially generate electricity, you must
submit to BOEM documentation of the
gross annual generation of electricity
produced by the generating facility on
the lease. You must use the same information collection form as authorized
by the EIA for this information.
(5) For the nameplate capacity ‘‘M,’’
BOEM will use the total installed capacity of the equipment you install, as
specified in your approved COP.
(d) You must submit all operating fee
payments to BOEM in accordance with
the provisions under 30 CFR 1218.51.
(e) BOEM will establish the operating
fee in the Final Sale Notice or in the
lease on a case-by-case basis for:
(1) Activities that do not relate to
the generation of electricity (e.g., hydrogen production), and
(2) Leases issued for hydrokinetic activities requiring a FERC license.

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§ 585.507 What rent payments must I
pay on a project easement?
(a) You must pay ONRR, under the
regulations at 30 CFR part 1218, a rent
fee for your project easement of $5 per
acre, subject to a minimum of $450 per
year, unless specified otherwise in the
Final Sale Notice or lease:
(1) The size of the project easement
area for a cable or a pipeline is the full
length of the corridor and a width of
200 feet (61 meters), centered on the
cable or pipeline; and
(2) The size of a project easement
area for an accessory platform is limited to the aerial extent of anchor
chains and other facilities and devices
associated with the accessory.

(b) You must commence rent payments for your project easement upon
our approval of your COP or GAP:
(1) You must make the first rent payment when the operations term begins,
as provided in § 585.500;
(2) You must submit all subsequent
rent payments in accordance with the
regulations at 30 CFR 1218.51; and
(3) You must continue to pay annual
rent for your project easement until
your lease is terminated.
§ 585.508 What rent payments must I
pay on ROW grants or RUE grants
associated with renewable energy
projects?
(a) For each ROW grant BOEM approves under subpart C of this part,
you must pay ONRR, under the regulations at 30 CFR part 1218, an annual
rent as follows, unless specified otherwise in the Final Sale Notice:
(1) A fee of $70 for each nautical mile
or part of a nautical mile of the OCS
that your ROW crosses; and
(2) An additional $5 per acre, subject
to a minimum of $450 for use of the entire affected area, if you hold a ROW
grant that includes a site outside the
corridor of a 200-foot width (61 meters),
centered on the cable or pipeline. The
affected area includes the areal extent
of anchor chains, risers, and other devices associated with a site outside the
corridor.
(b) For each RUE grant BOEM approves under subpart C of this part,
you must pay ONRR, under the regulations at 30 CFR part 1218, a rent of:
(1) $5 per acre per year; or
(2) A minimum of $450 per year.
(c) You must make the rent payments required by paragraphs (a) and
(b) of this section on:
(1) An annual basis;
(2) For a 5-year period; or
(3) For multiples of 5 years.
(d) You must make the first annual
rent payment upon approval of your
ROW grant or RUE grant request, as
provided in § 585.500, and all subsequent
rent payments to ONRR in accordance
with the regulations at 30 CFR 1218.51.
§ 585.509 Who is responsible for submitting lease or grant payments to
BOEM?
(a) For each lease, ROW grant, or
RUE grant issued under this part, you

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§ 585.510

30 CFR Ch. V (7–1–17 Edition)

must identify one person who is responsible for all payments due and payable under the provisions of the lease
or grant. The responsible person identified is designated as the payor, and you
must document acceptance of such responsibilities, as provided in 30 CFR
1218.52.
(b) All payors must submit payments
and maintain auditable records in accordance with guidance we issue or any
applicable regulations in subchapter A
of this chapter. In addition, the lessee
or grant holder must also maintain
such auditable records.
§ 585.510 May BOEM reduce or waive
my lease or grant payments?

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(a) BOEM Director may reduce or
waive the rent or operating fee or components of the operating fee, such as
the fee rate or capacity factor, when
the Director determines that it is necessary to encourage continued or additional activities.
(b) When requesting a reduction or
waiver, you must submit an application to us that includes all of the following:
(1) The number of the lease, ROW
grant, or RUE grant involved;
(2) Name of each lessee or grant holder of record;
(3) Name of each operator;
(4) A demonstration that:
(i) Continued activities would be uneconomic without the requested reduction or waiver, or
(ii) A reduction or waiver is necessary to encourage additional activities; and
(5) Any other information required
by the Director.
(c) No more than 6 years of your operations term will be subject to a full
waiver of the operating fee.

§§ 585.511–585.514

[Reserved]

FINANCIAL ASSURANCE REQUIREMENTS
FOR COMMERCIAL LEASES
§ 585.515 What
financial
assurance
must I provide when I obtain my
commercial lease?
(a) Before BOEM will issue your commercial lease or approve an assignment
of an existing commercial lease, you
(or, for an assignment, the proposed assignee) must guarantee compliance
with all terms and conditions of the
lease by providing either:
(1) A $100,000 minimum, lease-specific
bond; or
(2) Another approved financial assurance instrument guaranteeing performance up to $100,000, as specified in
§§ 585.526 through 585.529.
(b) You meet the financial assurance
requirements under this subpart if
your designated lease operator provides
a $100,000 minimum, lease-specific bond
or other approved financial assurance
that guarantees compliance with all
terms and conditions of the lease.
(1) The dollar amount of the minimum, lease-specific financial assurance in paragraphs (a)(1) and (b) of this
section will be adjusted to reflect
changes in the Consumer Price IndexAll Urban Consumers (CPI–U) or a substantially equivalent index if the CPI–
U is discontinued; and
(2) The first CPI–U-based adjustment
can be made no earlier than the 5-year
anniversary of the adoption of this
rule. Subsequent CPI–U-based adjustments may be made every 5 years
thereafter.
§ 585.516 What are the financial assurance requirements for each stage of
my commercial lease?
(a) The basic financial assurance requirements for each stage of your commercial lease are as follows:

Before BOEM will . . .

You must provide . . .

(1) Issue a commercial lease or approve an assignment of an
existing commercial lease.
(2) Approve your SAP .................................................................

A $100,000 minimum, lease-specific financial assurance.
A supplemental bond or other financial assurance, in an
amount determined by BOEM, if upon reviewing your SAP,
BOEM determines that a supplemental bond is required in
addition to your minimum lease-specific bond, due to the
complexity, number, and location of any facilities involved in
your site assessment activities.

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Ocean Energy Management, Interior

§ 585.520

Before BOEM will . . .

You must provide . . .

(3) Approve your COP .................................................................

A supplemental bond or other financial assurance, in an
amount determined by BOEM based on the complexity,
number, and location of all facilities involved in your planned
activities and commercial operation. The supplemental financial assurance requirement is in addition to your lease-specific bond and, if applicable, the previous supplement associated with SAP approval.
A decommissioning bond or other financial assurance, in an
amount determined by BOEM based on anticipated decommissioning costs. BOEM will allow you to provide your financial assurance for decommissioning in accordance with the
number of facilities installed or being installed. BOEM must
approve the schedule for providing the appropriate financial
assurance coverage.

(4) Allow you to install facilities approved in your COP ..............

(b) Each bond or other financial assurance must guarantee compliance
with all terms and conditions of the
lease. You may provide a new bond or
increase the amount of your existing
bond, to satisfy any additional financial assurance requirements.
(c) For hydrokinetic commercial
leases, supplemental financial assurance may be required in an amount determined by BOEM before FERC issues
a license.

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§ 585.517 How will BOEM determine
the amounts of the supplemental
and decommissioning financial assurance requirements associated
with commercial leases?
(a) BOEM will base the determination for the amounts of the SAP, COP,
and decommissioning financial assurance requirements on estimates of the
cost to meet all accrued lease obligations.
(b) We determine the amount of the
supplemental and decommissioning financial assurance requirements on a
case-by-case basis. The amount of the
financial assurance must be no less
than the amount required to meet all
lease obligations, including:
(1) The projected amount of rent and
other payments due the Government
over the next 12 months;
(2) Any past due rent and other payments;
(3) Other monetary obligations; and
(4) The estimated cost of facility decommissioning, as required by subpart
I of this part.
(c) If your cumulative potential obligations and liabilities increase or decrease, we may adjust the amount of

supplemental or the decommissioning
financial assurance.
(1) If we propose adjusting your financial assurance amount, we will notify you of the proposed adjustment
and give you an opportunity to comment; and
(2) We may approve a reduced financial assurance amount if you request it
and if the reduced amount that you request continues to be greater than the
sum of:
(i) The projected amount of rent and
other payments due the Government
over the next 12 months;
(ii) Any past due rent and other payments;
(iii) Other monetary obligations; and
(iv) The estimated cost of facility decommissioning.
§§ 585.518–585.519
FINANCIAL
LEASES,
GRANTS

[Reserved]

ASSURANCE FOR LIMITED
ROW GRANTS, AND RUE

§ 585.520 What
financial
assurance
must I provide when I obtain my
limited lease, ROW grant, or RUE
grant?
(a) Before BOEM will issue your limited lease, ROW grant, or RUE grant,
you or a proposed assignee must guarantee compliance with all terms and
conditions of the lease or grant by providing either:
(1) A $300,000 minimum, lease- or
grant-specific bond; or
(2) Another approved financial assurance instrument of such minimum
level as specified in §§ 585.526 through
585.529.
(b) You meet the financial assurance
requirements under this subpart if

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§ 585.521

30 CFR Ch. V (7–1–17 Edition)

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your designated lease or grant operator
provides a minimum limited lease-specific or grant-specific bond in an
amount sufficient to guarantee compliance with all terms and conditions of
the limited lease or grant.
(1) The dollar amount of the minimum, lease- or grant-specific financial
assurance in paragraph (a)(1) of this
section will be adjusted to reflect
changes in the CPI–U or a substantially equivalent index if the CPI–U is
discontinued; and
(2) The first CPI–U-based adjustment
can be made no earlier than the 5-year
anniversary of the adoption of this
rule. Subsequent CPI–U-based adjustments may be made every 5 years
thereafter.
§ 585.521 Do my financial assurance
requirements change as activities
progress on my limited lease or
grant?
(a) BOEM may require you to increase the level of your financial assurance as activities progress on your limited lease or grant. We will base the determination for the amount of financial assurance requirements on our estimate of the cost to meet all accrued
lease or grant obligations, including:
(1) The projected amount of rent and
other payments due the Government
over the next 12 months;
(2) Any past due rent and other payments;
(3) Other monetary obligations; and
(4) The estimated cost of facility decommissioning.
(b) You may satisfy the requirement
for increased financial assurance levels
for the limited lease or grant by increasing the amount of your existing
bond or replacing your existing bond.
(c) BOEM will authorize you to establish a separate decommissioning bond
or other financial assurance for your
limited lease or grant.
(1) The separate decommissioning
bond or other financial assurance instrument must meet the requirements
specified in §§ 585.525 through 585.529.
(2) BOEM will allow you to provide
your financial assurance for decommissioning in accordance with the number
of facilities installed or being installed.
BOEM must approve the schedule for
providing the appropriate financial assurance coverage.

§§ 585.522–585.524

[Reserved]

REQUIREMENTS FOR FINANCIAL
ASSURANCE INSTRUMENTS
§ 585.525 What general requirements
must a financial assurance instrument meet?
(a) Any bond or other acceptable financial assurance instrument that you
provide must:
(1) Be payable to BOEM upon demand; and
(2) Guarantee compliance of all lessees, grant holders, operators, and
payors with all terms and conditions of
the lease or grant, any subsequent approvals and authorizations, and all applicable regulations.
(b) All bonds and other forms of financial assurance must be on or in a
form approved by BOEM. You may submit this on an approved form that you
have reproduced or generated by use of
a computer. If the document you submit omits any terms and conditions
that are included on the BOEM-approved form, your bond is deemed to
contain the omitted terms and conditions.
(c) Surety bonds must be issued by an
approved surety listed in the current
Treasury Circular 570, as required by 31
CFR 223.16. You may obtain a copy of
Circular 570 from the Treasury Web
site at http://www.fms.treas.gov/c570/.
(d) Your surety bond cannot exceed
the underwriting limit listed in the
current Treasury Circular 570, except
as permitted therein.
(e) You and a qualified surety must
execute your bond. When the surety is
a corporation, an authorized corporate
officer must sign the bond and attest
to it over the corporate seal.
(f) You may not terminate the period
of liability of your bond or cancel your
bond, except as provided in this subpart. Bonds must continue in full force
and effect even though an event has occurred that could diminish or terminate a surety’s obligation under State
law.
(g) Your surety must notify you and
BOEM within 5 business days after:
(1) It initiates any judicial or administrative proceeding alleging its insolvency or bankruptcy; or
(2) The Treasury decertifies the surety.

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Ocean Energy Management, Interior

§ 585.527

§ 585.526 What instruments other than
a surety bond may I use to meet the
financial assurance requirement?
(a) You may use other types of security instruments, if BOEM determines
that such security protects BOEM to
the same extent as the surety bond.
BOEM will consider pledges of the following:
(1) U.S. Department of Treasury securities identified in 31 CFR part 225;
(2) Cash in an amount equal to the
required dollar amount of the financial
assurance, to be deposited and maintained in a Federal depository account
of the U.S. Treasury by BOEM;
(3) Certificates of deposit or savings
accounts in a bank or financial institution organized or authorized to transact business in the United States with:
(i) Minimum net assets of $500,000,000;
and
(ii) Minimum Bankrate.com Safe &
Sound rating of 3 Stars, and Capitalization, Assets, Equity and Liquidity
(CAEL) rating of 3 or less;
(4) Negotiable U.S. Government,
State, and municipal securities or
bonds having a market value of not
less than the required dollar amount of
the financial assurance and maintained
in a Securities Investors Protection
Corporation insured trust account by a
licensed securities brokerage firm for
the benefit of the BOEM;
(5) Investment-grade rated securities
having a Standard and Poor’s rating of
AAA or an equivalent rating from a nationally recognized securities rating
service having a market value of not
less than the required dollar amount of
the financial assurance and maintained
in a Securities Investors Protection
Corporation insured trust account by a
licensed securities brokerage firm for
the benefit of BOEM; and
(6) Insurance, if its form and function
is such that the funding or enforceable
pledges of funding are used to guarantee performance of regulatory obligations in the event of default on such
obligations by the lessee. Insurance
must have an A.M. Best rating of ‘‘superior’’ or an equivalent rating from a
nationally recognized insurance rating
service.
(b) If you use a Treasury security:
(1) You must post 115 percent of your
financial assurance amount;

(2) You must monitor the collateral
value of your security. If the collateral
value of your security as determined in
accordance with the 31 CFR part 203
Collateral Margins Table (which can be
found at http://www.treasurydirect.gov)
falls below the required level of coverage, you must pledge additional security to provide 115 percent of the required amount; and
(3) You must include with your
pledge authority for us to sell the security and use the proceeds if we determine that you have failed to comply
with any of the terms and conditions of
your lease or grant, any subsequent approval or authorization, or applicable
regulations.
(c) If you use the instruments described in paragraphs (a)(4) or (a)(5) of
this section, you must provide BOEM
by the end of each calendar year a certified statement describing the nature
and market value of the instruments
maintained in that account, and including any current statements or reports furnished by the brokerage firm
to the lessee concerning the asset value
of the account.
§ 585.527 May I demonstrate financial
strength and reliability to meet the
financial assurance requirement for
lease or grant activities?
BOEM may allow you to use your financial strength and reliability to
meet financial assurance requirements.
We will make this determination based
on audited financial statements, business stability, reliability, and compliance with regulations.
(a) You must provide the following
information if you want to demonstrate financial strength and reliability to meet your financial assurance requirements:
(1) Audited financial statements (including auditor’s certificate, balance
sheet, and profit and loss sheet) that
show you have financial capacity substantially in excess of existing and anticipated lease and other obligations;
(2) Evidence that shows business stability based on 5 years of continuous
operation and generation of renewable
energy on the OCS or onshore;
(3) Evidence that shows reliability in
meeting obligations based on credit
ratings or trade references, including

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§ 585.528

30 CFR Ch. V (7–1–17 Edition)

names and addresses of other lessees,
contractors, and suppliers with whom
you have dealt; and
(4) Evidence that shows a record of
compliance with laws, regulations, and
lease, ROW, or RUE terms.
(b) If we approve your request to use
your financial strength and reliability
to meet your financial assurance requirements, you must submit annual
updates to the information required by
paragraph (a) of this section. You must
submit this information no later than
March 31 of each year.
(c) If the annual updates to the information required by paragraph (a) of
this section do not continue to demonstrate financial strength and reliability or BOEM has reason to believe
that you are unable to meet the financial assurance requirements of this section, after notice and opportunity for a
hearing, BOEM will terminate your
ability to use financial strength and reliability for financial assurance and require you to provide another type of financial assurance. You must provide
this new financial assurance instrument within 90 days after we terminate
your use of financial strength and reliability.
§ 585.528 May I use a third-party guaranty to meet the financial assurance requirement for lease or grant
activities?
(a) You may use a third-party guaranty if the guarantor meets the criteria prescribed in paragraph (b) of this
section and submits an agreement
meeting the criteria prescribed in paragraph (c) of this section. The agreement must guarantee compliance with
the obligations of all lessees and operators and grant holders.
Your guarantor must submit . . .

That . . .

(i) Financial statements for the most recently completed FY .....

Include a report by an independent certified public accountant
containing the accountant’s audit or review opinion of the
statements. The report must be prepared in conformance
with generally accepted accounting principles and contain no
adverse opinion.
Your guarantor’s financial officer certifies to be correct.
Your guarantor’s financial officer certifies to be correct.

(ii) Financial statement for completed quarter in the current FY
(iii) Additional information related to bonds, if requested by the
Director.
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(b) BOEM will consider the following
factors in deciding whether to accept
an agreement:
(1) The length of time that your
guarantor has been in continuous operation as a business entity. You may exclude periods of interruption that are
beyond the guarantor’s control by demonstrating, to the satisfaction of the
Director, that the interruptions do not
affect the likelihood of your guarantor
remaining in business during the SAP,
COP, and decommissioning stages of
activities covered by the indemnity
agreement.
(2) Financial information available in
the public record or submitted by your
guarantor in sufficient detail to show
us that your guarantor meets the criterion stated in paragraph (b)(4) of this
section. Such detail includes:
(i) The current rating for your guarantor’s most recent bond issuance by a
generally recognized bond rating service such as Moody’s Investor Service or
Standard and Poor’s Corporation;
(ii) Your guarantor’s net worth, taking into account liabilities for compliance with all terms and conditions of
your lease, regulations, and other guarantees;
(iii) Your guarantor’s ratio of current
assets to current liabilities, taking
into account liabilities for compliance
with all terms and conditions of your
lease, regulations, and other guarantees; and
(iv) Your guarantor’s unencumbered
domestic fixed assets.
(3) If the information in paragraph
(b)(2) of this section is not publicly
available, your guarantor must submit
the information in the following table,
to be updated annually within 90 days
of the end of the fiscal year (FY) or as
otherwise prescribed.

(4) Your guarantor’s total outstanding and proposed guarantees must

not
exceed
25
percent
of
unencumbered domestic net worth.

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Ocean Energy Management, Interior

§ 585.530

(c) Your guarantor must submit an
agreement executed by the guarantor
and all parties bound by the agreement. All parties are bound jointly and
severally and must meet the qualifications set forth in § 585.107.
(1) When any party is a corporation,
two corporate officers authorized to
execute the guaranty agreement on behalf of the corporation must sign the
agreement.
(2) When any party is a partnership,
joint venture, or syndicate, the guaranty agreement must bind each party
who has a beneficial interest in your
guarantor and provide that, upon
BOEM demand under your guaranty,
each party is jointly and severally liable for compliance with all terms and
conditions of your lease(s) or grant(s)
covered by the agreement.
(3) When forfeiture of the guaranty is
called for, the agreement must provide
that your guarantor will either bring
your lease(s) or grant(s) into compliance or provide, within 7 days, sufficient funds to permit BOEM to complete corrective action.
(4) The guaranty agreement must
contain a confession of judgment, providing that, if we determine that you
are, or your operator or operating
rights owner is, in default, the guarantor must not challenge the determination and must remedy the default.
(5) If you fail, or your operator or operating rights owner fails, to comply
with any law, term, or regulation, your
guarantor must either take corrective
action or provide, within 7 days or
other agreed upon time period, sufficient funds for BOEM to complete corrective action. Such compliance must
not reduce your guarantor’s liability.
(6) If your guarantor wants to terminate the period of liability, your guarantor must notify you and us at least
90 days before the proposed termination date, obtain our approval for
termination of all or a specified portion of the guarantee for liabilities
arising after that date, and remain liable for all your work performed during
the period the agreement is in effect.
(7) Each guaranty submitted pursuant to this section is deemed to contain all the above terms, even if they
are not actually in the agreement.

(d) Before the termination of your
guaranty, you must provide an acceptable replacement in the form of a bond
or other security.
§ 585.529 Can I use a lease- or grantspecific decommissioning account
to meet the financial assurance requirements related to decommissioning?
(a) In lieu of a surety bond, BOEM
may authorize you to establish a lease, ROW grant-, or RUE grant-specific decommissioning account in a federallyinsured institution. The funds may not
be withdrawn from the account without our written approval.
(1) The funds must be payable to
BOEM and pledged to meet your lease
or grant decommissioning and site
clearance obligations; and
(2) You must fully fund the account
within the time BOEM prescribes to
cover all costs of decommissioning including site clearance. BOEM will estimate the cost of decommissioning, including site clearance.
(b) Any interest paid on the account
will be treated as account funds unless
we authorize in writing that any interest be paid to the depositor.
(c) We may allow you to pledge
Treasury securities, payable to BOEM
on demand, to satisfy your obligation
to make payments into the account.
Acceptable Treasury securities and
their collateral value are determined
in accordance with 31 CFR part 203,
Collateral Margins Table (which can be
found at http://www.treasurydirect.gov).
(d) We may require you to commit a
specified stream of revenues as payment into the account so that the account will be fully funded, as prescribed in paragraph (a)(2) of this section. The commitment may include
revenue from other operations.
CHANGES IN FINANCIAL ASSURANCE
§ 585.530 What must I do if my financial assurance lapses?
(a) If your surety is decertified by the
Treasury, becomes bankrupt or insolvent, or if your surety’s charter or license is suspended or revoked, or if any
other approved financial assurance expires for any reason, you must:

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§ 585.531

30 CFR Ch. V (7–1–17 Edition)

(1) Inform BOEM within 3 business
days about the financial assurance
lapse; and
(2) Provide new financial assurance
in the amount set by BOEM, as provided in this subpart.
(b) You must notify BOEM within 3
business days after you learn of any action filed alleging that you, your surety, or third-party guarantor, is insolvent or bankrupt.
§ 585.531 What happens if the value of
my financial assurance is reduced?
If the value of your financial assurance is reduced below the required financial assurance amount because of a
default or any other reason, you must
provide additional financial assurance
sufficient to meet the requirements of
this subpart within 45 days or within a
different period as specified by BOEM.

pmangrum on DSK3GDR082PROD with CFR

§ 585.532 What happens if my surety
wants to terminate the period of liability of my bond?
(a) Terminating the period of liability of a bond ends the period during
which surety liability continues to accrue. The surety continues to be responsible for obligations and liabilities
that accrued during the period of liability and before the date on which
BOEM terminates the period of liability under paragraph (b) of this section.
The liabilities that accrue during a period of liability include:
(1) Obligations that started to accrue
before the beginning of the period of liability and have not been met; and
(2) Obligations that began accruing
during the period of liability.
(b) Your surety must submit to
BOEM its request to terminate the period of liability under its bond and notify you of that request. If you intend
to continue activities, or have not met
all obligations of your lease or grant,
you must provide a replacement bond
or alternative form of financial assurance of equivalent or greater value.
BOEM will terminate that period of liability within 90 days after BOEM receives the request.
§ 585.533 How does my surety obtain
cancellation of my bond?
(a) BOEM will release a bond or allow
a surety to cancel a bond, and will re-

lieve the surety from accrued obligations only if:
(1) BOEM determines that there are
no outstanding obligations covered by
the bond; or
(2) The following occurs:
(i) BOEM accepts a replacement bond
or an alternative form of financial assurance in an amount equal to or
greater than the bond to be cancelled
to cover the terminated period of liability;
(ii) The surety issuing the new bond
has expressly agreed to assume all outstanding liabilities under the original
bond that accrued during the period of
liability that was terminated; and
(iii) The surety issuing the new bond
has agreed to assume that portion of
the outstanding liabilities that accrued
during the terminated period of liability that exceeds the coverage of the
bond prescribed under §§ 585.515, 585.516,
585.520, or 585.521, and of which you
were notified.
(b) When your lease or grant ends,
your surety(ies) remain(s) responsible,
and BOEM will retain any financial assurance as follows:
(1) The period of liability ends when
you cease all operations and activities
under the lease or grant, including decommissioning and site clearance;
(2) Your surety or collateral financial
assurance will not be released until 7
years after the lease ends, or a longer
period as necessary to complete any
appeals or judicial litigation related to
your bonded obligation, or for BOEM to
determine that all of your obligations
under the lease or grant have been satisfied; and
(3) BOEM will reduce the amount of
your bond or return a portion of your
financial assurance if we determine
that we need less than the full amount
of the bond or financial assurance to
meet any possible future obligations.
§ 585.534 When may BOEM cancel my
bond?
When your lease or grant ends, your
surety(ies) remain(s) responsible, and
BOEM will retain any pledged security
as shown in the following table:

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Ocean Energy Management, Interior

§ 585.537

Bond

The period of liability ends . . .

Your bond will not be released until . . .

(a) Bonds for commercial leases submitted under § 585.515.

When BOEM determines that you have
met all of your obligations under the
lease.

(b) Supplemental or decommissioning
bonds submitted under § 585.516.

When BOEM determines that you have
met all your decommissioning, site
clearance, and other obligations.

(c) Bonds submitted under §§ 585.520
and 585.521 for limited leases, ROW
grants, or RUE grants.

When BOEM determines that you have
met all of your obligations under the
limited lease or grant.

Seven years after the lease ends, or a
longer period as necessary to complete any appeals or judicial litigation
related to your bond obligation. BOEM
will reduce the amount of your bond or
return a portion of your security if
BOEM determines that you need less
than the full amount of the bond to
meet any possible future obligations.
(1) Seven years after the lease ends, or
a longer period as necessary to complete any appeals or judicial litigation
related to your bond obligation. BOEM
will reduce the amount of your bond or
return a portion of your security if
BOEM determines that you need less
than the full amount of the bond to
meet any possible future obligations;
and
(2) BOEM determines that the potential
liability resulting from any undetected
noncompliance is not greater than the
amount of the lease base bond.
Seven years after the limited lease,
ROW, or RUE grant or a longer period
as necessary to complete any appeals
or judicial litigation related to your
bond obligation. BOEM will reduce the
amount of your bond or return a portion of your security if BOEM determines that you need less than the full
amount of the bond to meet any possible future obligations.

pmangrum on DSK3GDR082PROD with CFR

§ 585.535 Why might BOEM call for forfeiture of my bond?
(a) BOEM may call for forfeiture of
all or part of the bond, pledged security, or other form of guaranty if:
(1) After notice and demand for performance by BOEM, you refuse or fail,
within the timeframe we prescribe, to
comply with any term or condition of
your lease or grant, other authorization or approval, or applicable regulations; or
(2) You default on one of the conditions under which we accepted your
bond.
(b) We may pursue forfeiture without
first making demands for performance
against any co-lessee or holder of an
interest in your ROW or RUE, or other
person approved to perform obligations
under your lease or grant.
§ 585.536 How will I be notified of a
call for forfeiture?
(a) BOEM will notify you and your
surety, including any provider of financial assurance, in writing of the call for
forfeiture and provide the reasons for
the forfeiture and the amount to be

forfeited. We will base the amount
upon an estimate of the total cost of
corrective action to bring your lease or
grant into compliance.
(b) We will advise you and your surety that you may avoid forfeiture if,
within 10 business days:
(1) You agree to and demonstrate in
writing to BOEM that you will bring
your lease or grant into compliance
within the timeframe we prescribe, and
you do so; or
(2) Your surety agrees to and demonstrates that it will bring your lease
or grant into compliance within the
timeframe we prescribe, even if the
cost of compliance exceeds the face
amount of the bond.
§ 585.537 How will BOEM proceed once
my bond or other security is forfeited?
(a) If BOEM determines that your
bond or other security is forfeited, we
will collect the forfeited amount and
use the funds to bring your lease or
grant(s) into compliance and correct
any default.

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§§ 585.538–585.539

30 CFR Ch. V (7–1–17 Edition)

(b) If the amount collected under
your bond or other security is insufficient to pay the full cost of corrective
action, BOEM may take or direct action to obtain full compliance and recover all costs in excess of the forfeited
bond from you or any co-lessee or cograntee.
(c) If the amount collected under
your bond or other security exceeds the
full cost of corrective action to bring
your lease or grant(s) into compliance,
we will return the excess funds to the
party from whom the excess was collected.

for a qualified project, BOEM will use
the inverse distance formula, which apportions shares according to the relative proximity of the nearest point on
the coastline of each eligible State to
the geographic center of the qualified
project area. If Si is equal to the nearest distance from the geographic center
of the project area to the i = 1, 2, * * *
nth eligible State’s coastline, then eligible State i would be entitled to the
fraction Fi of the 27-percent aggregate
revenue share due to all the eligible
States according to the formula:
Fi= (1/Si) ÷ (Si=1* * *n(1/Si)).

§§ 585.538–585.539

§ 585.541 What is a qualified project
for revenue sharing purposes?
A qualified project for the purpose of
revenue sharing with eligible coastal
States is one authorized under subsection 8(p) of the OCS Lands Act,
which includes acreage within the area
extending 3 nautical miles seaward of
State submerged lands. A qualified
project is subject to revenue sharing
with those States that are eligible for
revenue sharing under § 585.542. The entire area within a lease or grant for the
qualified project, excluding project
easements, is considered the qualified
project area.

[Reserved]

pmangrum on DSK3GDR082PROD with CFR

REVENUE SHARING WITH STATES
§ 585.540 How will BOEM equitably
distribute revenues to States?
(a) BOEM will distribute among the
eligible coastal States 27 percent of the
following revenues derived from qualified projects, where a qualified project
and qualified project area is determined in § 585.541 and an eligible State
is determined in § 585.542, with each
term defined in § 585.112. Revenues subject to distribution to eligible States
include all bonuses, acquisition fees,
rentals, and operating fees derived
from the entire qualified project area
and associated project easements not
limited to revenues attributable to the
portion of the project area within 3
miles of the seaward boundary of a
coastal State. The revenues to be
shared do not include administrative
fees such as service fees and those assessed for civil penalties and forfeiture
of bond or other surety obligations.
(b) The project area is the area included within a single lease or grant.
For each qualified project, BOEM will
determine and announce the project
area and its geographic center at the
time it grants or issues a lease, easement, or right-of-way on the OCS. If a
qualified project lease or grant’s
boundaries change significantly due to
actions pursuant to §§ 585.435 or 585.436,
BOEM will re-evaluate the project area
to determine whether the geographic
center has changed. If it has, BOEM
will re-determine State eligibility and
shares accordingly.
(c) To determine each eligible State’s
share of the 27 percent of the revenues

§ 585.542 What makes a State eligible
for payment of revenues?
A State is eligible for payment of
revenues if any part of the State’s
coastline is located within 15 miles of
the announced geographic center of the
project area of a qualified project. A
State is not eligible for revenue sharing if all parts of that State’s coastline
are more than 15 miles from the announced geographic center of the qualified project area. This is the case even
if the qualified project area is located
wholly or partially within an area extending 3 nautical miles seaward of the
submerged lands of that State or if
there are no States with a coastline
less than 15 miles from the announced
geographic center of the qualified
project area.
§ 585.543 Example of how the inverse
distance formula works.
(a) Assume that the geographic center of the project area lies 12 miles
from the closest coastline point of

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Ocean Energy Management, Interior

§ 585.602

State A and 4 miles from the closest
coastline point of State B. BOEM will
round dollar shares to the nearest
whole dollar. The proportional share
due each State would be calculated as
follows:
(1) State A’s share = [(1⁄12) ÷ (1⁄12 + 1⁄4)]
= 1⁄4.
(2) State B’s share = [(1⁄4) ÷ (1⁄12 + 1⁄4)]
= 3⁄4.
(b) Therefore, State B would receive
a share of revenues that is three times
as large as that awarded to State A,
based on the finding that State B’s
nearest coastline is one-third the dis-

tance to the geographic center of the
qualified project area as compared to
State A’s nearest coastline. Eligible
States share the 27 percent of the total
revenues from the qualified project as
mandated under the OCS Lands Act.
Hence, if the qualified project generates $1,000,000 of Federal revenues in
a given year, the Federal Government
would distribute the States’ 27-percent
share as follows:
(1) State A’s share = $270,000 × 1⁄4 =
$67,500.
(2) State B’s share = $270,000 × 3⁄4 =
$202,500.

Subpart F—Plans and Information Requirements
§ 585.600 What plans and information must I submit to BOEM before I conduct
activities on my lease or grant?
You must submit a SAP, COP, or GAP and receive BOEM approval as set forth
in the following table:
Before you:

you must:

(a) conduct any site assessment activities on your commercial
lease,
(b) conduct any activities pertaining to construction of facilities
for commercial operations on your commercial lease,
(c) conduct any activities on your limited lease, ROW grant, or
RUE grant in any OCS area,

submit and
§§ 585.605
submit and
§§ 585.620
submit and
§§ 585.640

pmangrum on DSK3GDR082PROD with CFR

§ 585.601 When am I required to submit my plans to BOEM?
You must submit your plans as follows:
(a) You may submit your SAP or
GAP prior to lease or grant issuance,
but must submit your SAP or your
GAP no later than 12 months from the
date of lease or grant issuance.
(b) If you intend to continue your
commercial lease with an operations
term, you must submit a COP, or a
FERC license application, at least 6
months before the end of your site assessment term.
(c) You may submit your COP or
FERC license application with your
SAP.
(1) You must provide sufficient data
and information with your COP for
BOEM to complete the needed reviews
and NEPA analysis; and
(2) BOEM may need to conduct additional reviews, including NEPA analysis, if significant new information becomes available after you complete

obtain approval for your SAP according to
through 585.613.
obtain approval for your COP, according to
through 585.629.
obtain approval for your GAP according to
through 585.648.

your site assessment activities or you
revise your COP. As a result of the additional reviews, we may require modification of your COP.
[76 FR 64623, Oct. 18, 2011, as amended at 79
FR 21623, Apr. 17, 2014]

§ 585.602 What records must I maintain?
Until BOEM releases your financial
assurance under § 585.534, you must
maintain and provide to BOEM, upon
request, all data and information related to compliance with required
terms and conditions of your SAP,
COP, or GAP.

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§§ 585.603–585.604
§§ 585.603–585.604

30 CFR Ch. V (7–1–17 Edition)

[Reserved]

SITE ASSESSMENT PLAN AND INFORMATION REQUIREMENTS FOR COMMERCIAL
LEASES
§ 585.605 What is a Site Assessment
Plan (SAP)?
(a) A SAP describes the activities
(e.g., installation of meteorological
towers, meteorological buoys) you plan
to perform for the characterization of
your commercial lease, including your
project easement, or to test technology
devices.
(1) Your SAP must describe how you
will conduct your resource assessment
(e.g.,
meteorological
and
oceanographic data collection) or technology
testing activities; and
(2) BOEM will withhold trade secrets
and commercial or financial information that is privileged or confidential
from public disclosure under exemption
4 of the FOIA and as provided in
§ 585.113.
(b) Your SAP must include data
from:
(1) Physical characterization surveys
(e.g., geological and geophysical surveys or hazards surveys); and
(2) Baseline environmental surveys
(e.g., biological or archaeological surveys).
(c) You must receive BOEM approval
of your SAP before you can begin any
of the approved activities on your
lease, as provided in § 585.613.
(d) If you propose to construct a facility or combination of facilities
deemed by BOEM to be complex or significant, as provided in § 585.613(a)(1),
you must also comply with the requirements of subpart G of this part and
submit your Safety Management System as required by § 585.810.
§ 585.606 What must I demonstrate in
my SAP?
(a) Your SAP must demonstrate that
you have planned and are prepared to

§ 585.607

How do I submit my SAP?

You must submit one paper copy and
one electronic version of your SAP to
BOEM at the address listed in
§ 585.110(a).
§§ 585.608–585.609

[Reserved]

CONTENTS OF THE SITE ASSESSMENT
PLAN
§ 585.610 What must I include in my
SAP?
Your SAP must include the following
information, as applicable.
(a) For all activities you propose to
conduct under your SAP, you must
provide the following information:

Project information

Including

(1) Contact information ................................................................

The name, address, e-mail address, and phone number of an
authorized representative.
A discussion of the objectives; description of the proposed activities, including the technology you will use; and proposed
schedule from start to completion.
As provided in § 585.405.

(2) The site assessment or technology testing concept .............
pmangrum on DSK3GDR082PROD with CFR

conduct the proposed site assessment
activities in a manner that conforms to
your
responsibilities
listed
in
§ 585.105(a) and:
(1) Conforms to all applicable laws,
regulations, and lease provisions of
your commercial lease;
(2) Is safe;
(3) Does not unreasonably interfere
with other uses of the OCS, including
those involved with National security
or defense;
(4) Does not cause undue harm or
damage to natural resources; life (including human and wildlife); property;
the marine, coastal, or human environment; or sites, structures, or objects of
historical or archaeological significance;
(5) Uses best available and safest
technology;
(6) Uses best management practices;
and
(7) Uses properly trained personnel.
(b) You must also demonstrate that
your site assessment activities will
collect the necessary information and
data required for your COP, as provided
in § 585.626(a).

(3) Designation of operator, if applicable ....................................

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Ocean Energy Management, Interior

§ 585.610

Project information

Including

(4) Commercial lease stipulations and compliance ....................

A description of the measures you took, or will take, to satisfy
the conditions of any lease stipulations related to your proposed activities.
The surface location and water depth for all proposed and existing structures, facilities, and appurtenances located both
offshore and onshore.
Information for each type of facility associated with your
project.
A description of the safety, prevention, and environmental protection features or measures that you will use.
A description of the measures you will use to avoid or minimize adverse effects and any potential incidental take, before you conduct activities on your lease, and how you will
mitigate environmental impacts from your proposed activities, including a description of the measures you will use as
required by subpart H of this part.
CVA nominations for reports in subpart G of this part, as required by § 585.706, or a request to waive the CVA requirement, as required by § 585.705(c).
A list of any document or published source that you cite as
part of your plan. You may reference information and data
discussed in other plans you previously submitted or that are
otherwise readily available to BOEM.
A discussion of methodologies.
Information as described in § 585.659 of this section.
A statement indicating whether such authorization or approval
has been applied for or obtained.

(5) A location plat ........................................................................

(6) General structural and project design, fabrication, and installation.
(7) Deployment activities .............................................................
(8) Your proposed measures for avoiding, minimizing, reducing, eliminating, and monitoring environmental impacts.

(9) CVA nomination, if required ...................................................

(10) Reference information ..........................................................

pmangrum on DSK3GDR082PROD with CFR

(11) Decommissioning and site clearance procedures ...............
(12) Air quality information ..........................................................
(13) A listing of all Federal, State, and local authorizations or
approvals required to conduct site assessment activities on
your lease.
(14) A list of agencies and persons with whom you have communicated, or with whom you will communicate, regarding
potential impacts associated with your proposed activities.
(15) Financial assurance information ..........................................

Contact information and issues discussed.

(16) Other information .................................................................

Statements attesting that the activities and facilities proposed
in your SAP are or will be covered by an appropriate bond
or other approved security, as required in §§ 585.515 and
585.516.
Additional information as requested by BOEM.

(b) You must provide the results of
geophysical and geological surveys,
hazards surveys, archaeological sur-

veys (if required), and baseline collection studies (e.g., biological) with the
supporting data in your SAP:

Information

Report contents

Including

(1) Geotechnical ..............

The results from the geotechnical survey with
supporting data.

(2) Shallow hazards ........

The results from the shallow hazards survey with
supporting data.

(3) Archaeological resources.

The results from the archaeological survey with
supporting data, if required.

A description of all relevant seabed and engineering data and information to allow for the
design of the foundation for that facility. You
must provide data and information to depths
below which the underlying conditions will not
influence the integrity or performance of the
structure. This could include a series of sampling locations (borings and in situ tests) as
well as laboratory testing of soil samples, but
may consist of a minimum of one deep boring
with samples.
A description of information sufficient to determine the presence of the following features
and their likely effects on your proposed facility, including:
(i) Shallow faults;
(ii) Gas seeps or shallow gas;
(ii) Slump blocks or slump sediments;
(iv) Hydrates; and
(v) Ice scour of seabed sediments.
(i) A description of the results and data from
the archaeological survey;
(ii) A description of the historic and prehistoric archaeological resources, as required by the National Historic Preservation Act (NHPA) of 1966, as amended.

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§ 585.611

30 CFR Ch. V (7–1–17 Edition)

Information

Report contents

Including

(4) Geological survey ......

The results from the geological survey with supporting data.

(5) Biological survey ........

The results from the biological survey with supporting data.

A report that describes the results of a geological survey that includes descriptions of:
(i) Seismic activity at your proposed site;
(ii) Fault zones;
(iii) The possibility and effects of seabed
subsidence; and
(iv) The extent and geometry of faulting attenuation effects of geologic conditions
near your site.
A description of the results of a biological survey, including descriptions of the presence of
live bottoms; hard bottoms; topographic features; and surveys of other marine resources
such as fish populations (including migratory
populations), marine mammals, sea turtles,
and sea birds.

(c) If you submit your COP or FERC
license application with your SAP
then:
(1) You must provide sufficient data
and information with your COP or
FERC license application for BOEM
and/or FERC to complete the needed
reviews and NEPA analysis.
(2) You may need to revise your COP
or FERC license application and BOEM
and/or FERC may need to conduct additional reviews, including NEPA analysis, if new information becomes available after you complete your site assessment activities.
§ 585.611 What information and certifications must I submit with my SAP
to assist BOEM in complying with
NEPA and other relevant laws?
You must submit, with your SAP, detailed information to assist BOEM in
complying with NEPA and other relevant laws as appropriate.
(a) A SAP submitted for an area in
which BOEM has not previously reviewed site assessment activities under
NEPA or other applicable Federal laws,
must describe those resources, condiType of information:

Including:

(1) Hazard information ..............

Meteorology, oceanography, sediment transport, geology, and shallow geological or manmade
hazards.
Turbidity and total suspended solids from construction.
Benthic communities, marine mammals, sea turtles, coastal and marine birds, fish and shellfish, plankton, sea grasses, and other plant life.
As required by the Endangered Species Act (ESA) of 1973 (16 U.S.C. 1531 et seq.).

(2) Water quality .......................
(3) Biological resources ............
(4) Threatened or endangered
species.
(5) Sensitive biological resources or habitats.
pmangrum on DSK3GDR082PROD with CFR

tions, and activities listed in the following table that could be affected by
your proposed activities or that could
affect the activities proposed in your
SAP.
(b) For a SAP submitted for an area
in which BOEM has previously considered site assessment activities under
applicable Federal law (e.g., a NEPA
analysis and CZMA consistency determination for site assessment activities), BOEM will review the SAP to determine if its impacts are consistent
with those previously considered. If the
anticipated effects of your proposed
SAP activities are significantly different than those previously anticipated, we may determine that additional NEPA and other relevant Federal reviews are required. In that case,
BOEM will notify you of such determination, and you must submit a SAP
that describes those resources, conditions, and activities listed in the following table that could be affected by
your proposed activities or that could
affect the activities proposed in your
SAP, including:

(6) Archaeological resources ....

Essential fish habitat, refuges, preserves, special management areas identified in coastal management programs, sanctuaries, rookeries, hard bottom habitat, chemosynthetic communities, calving grounds, barrier islands, beaches, dunes, and wetlands.
As required by the NHPA (16 U.S.C. 470 et seq.), as amended.

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Ocean Energy Management, Interior

§ 585.613

Type of information:

Including:

(7) Social and economic conditions.

Employment, existing offshore and coastal infrastructure (including major sources of supplies,
services, energy, and water), land use, subsistence resources and harvest practices, recreation, recreational and commercial fishing (including typical fishing seasons, location, and
type), minority and lower income groups, coastal zone management programs, and
viewshed.
Military activities, vessel traffic, and energy and nonenergy mineral exploration or development.
If required by CZMA, as appropriate: (i) 15 CFR part 930, subpart D, if the SAP is submitted
prior to lease issuance; (ii) 15 CFR part 930, subpart E, if the SAP is submitted after lease
issuance.

(8) Coastal and marine uses ....
(9) Consistency Certification ....

(10) Other resources, conditions, and activities.

As identified by BOEM.

[79 FR 21623, Apr. 17, 2014]

§ 585.612 How will my SAP be processed for Federal consistency under the Coastal Zone Management Act?
Your SAP will be processed based on whether it is submitted before or after
your lease is issued:
If your SAP is submitted:

Consistency review of your SAP will be handled as follows:

(a) Before lease issuance ........

You will furnish a copy of your SAP, consistency certification, and necessary data and information pursuant to 15 CFR part 930, subpart D, to the applicable State CZMA agency or
agencies and BOEM at the same time.
You will submit a copy of your SAP, consistency certification, and necessary data and information pursuant to 15 CFR part 930, subpart E to BOEM. BOEM will forward to the applicable
State CZMA agency or agencies one paper copy and one electronic copy of your SAP, consistency certification, and necessary data and information required under 15 CFR part 930,
subpart E, after BOEM has determined that all information requirements for the SAP are
met.

(b) After lease issuance ...........

[79 FR 21624, Apr. 17, 2014]

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§ 585.613 How will BOEM process my
SAP?
(a) BOEM will review your submitted
SAP, and additional information provided pursuant to § 585.611, to determine if it contains the information
necessary to conduct our technical and
environmental reviews.
(1) We will notify you if we deem
your proposed facility or combination
of facilities to be complex or significant;
(2) We will notify you if your submitted SAP lacks any necessary information;
(b) BOEM will prepare NEPA analysis, as appropriate.
(c) As appropriate, we will coordinate
and consult with relevant Federal and
State agencies, executives of relevant
local governments, and affected Indian
Tribes and will provide to other Federal, State, and local agencies and affected Indian Tribes relevant non-

proprietary data and information pertaining to your proposed activities.
(d) During the review process, we
may request additional information if
we determine that the information provided is not sufficient to complete the
review and approval process. If you fail
to provide the requested information,
BOEM may disapprove your SAP.
(e) Upon completion of our technical
and environmental reviews and other
reviews required by Federal laws (e.g.,
CZMA), BOEM may approve, disapprove, or approve with modifications
your SAP.
(1) If we approve your SAP, we will
specify terms and conditions to be incorporated into your SAP. You must
certify compliance with those terms
and
conditions
required
under
§ 585.615(c); and
(2) If we disapprove your SAP, we
will inform you of the reasons and
allow you an opportunity to submit a
revised plan making the necessary corrections, and may suspend the term of

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§ 585.614

30 CFR Ch. V (7–1–17 Edition)

your lease, as appropriate, to allow
this to occur.

[Reserved]

§ 585.617 What activities require a revision to my SAP, and when will
BOEM approve the revision?

ACTIVITIES UNDER AN APPROVED SAP
§ 585.614 When may I begin conducting
activities under my approved SAP?
(a) You may begin conducting the activities approved in your SAP following BOEM approval of your SAP.
(b) If you are installing a facility or
a combination of facilities deemed by
BOEM to be complex or significant, as
provided in § 585.613(a)(1), you must
comply with the requirements of subpart G of this part and submit your
Safety Management System required
by § 585.810 before construction may
begin.
§ 585.615 What other reports or notices
must I submit to BOEM under my
approved SAP?

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§ 585.616

(a) You must notify BOEM in writing
within 30 days of completing installation activities approved in your SAP.
(b) You must prepare and submit to
BOEM a report annually on November
1 of each year that summarizes your
site assessment activities and the results of those activities. BOEM will
withhold trade secrets and commercial
or financial information that is privileged or confidential from public disclosure under exemption 4 of the FOIA
and as provided in § 585.113.
(c) You must submit a certification
of compliance annually (or other frequency as determined by BOEM) with
certain terms and conditions of your
SAP that BOEM identifies under
§ 585.613(e)(1). Together with your certification, you must submit:
(1) Summary reports that show compliance with the terms and conditions
which require certification; and
(2) A statement identifying and describing any mitigation measures and
monitoring methods and their effectiveness. If you identified measures
that were not effective, you must include your recommendations for new
mitigation measures or monitoring
methods.

(a) You must notify BOEM in writing
before conducting any activities not
described in your approved SAP, describing in detail the type of activities
you propose to conduct. We will determine whether the activities you propose are authorized by your existing
SAP or require a revision to your SAP.
We may request additional information
from you, if necessary, to make this
determination.
(b) BOEM will periodically review the
activities conducted under an approved
SAP. The frequency and extent of the
review will be based on the significance
of any changes in available information and on onshore or offshore conditions affecting, or affected by, the activities conducted under your SAP. If
the review indicates that the SAP
should be revised to meet the requirements of this part, we will require you
to submit the needed revisions.
(c) Activities for which a proposed revision to your SAP will likely be necessary include:
(1) Activities not described in your
approved SAP;
(2) Modifications to the size or type
of facility or equipment you will use;
(3) Changes in the surface location of
a facility or structure;
(4) Addition of a facility or structure
not contemplated in your approved
SAP;
(5) Changes in the location of your
onshore support base from one State to
another, or to a new base requiring expansion;
(6) Changes in the location of bottom
disturbances (anchors, chains, etc.) by
500 feet (152 meters) or greater from the
approved locations. If a specific anchor
pattern was approved as a mitigation
measure to avoid contact with bottom
features, any change in the proposed
bottom disturbances would likely trigger the need for a revision;
(7) Structural failure of one or more
facilities; or
(8) Changes to any other activity
specified by BOEM.

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Ocean Energy Management, Interior

§ 585.621

(d) We may begin the appropriate
NEPA analysis and other relevant consultations when we determine that a
proposed revision could:
(1) Result in a significant change in
the impacts previously identified and
evaluated;
(2) Require any additional Federal
authorizations; or
(3) Involve activities not previously
identified and evaluated.
(e) When you propose a revision, we
may approve the revision if we determine that the revision is:
(1) Designed not to cause undue harm
or damage to natural resources; life
(including human and wildlife); property; the marine, coastal, or human environment; or sites, structures, or objects of historical or archaeological
significance; and
(2) Otherwise consistent with the provisions of subsection 8(p) of the OCS
Lands Act.

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§ 585.618 What must I do upon completion of approved site assessment activities?
(a) If, prior to the expiration of your
site assessment term, you timely submit a COP meeting the requirements of
this subpart, or a complete FERC license application, that describes the
continued use of existing facilities approved in your SAP, you may keep
such facilities in place on your lease
during the time that BOEM reviews
your COP for approval or FERC reviews your license application for approval.
(b) You are not required to initiate
the decommissioning process for facilities that are authorized to remain in
place under your approved COP or approved FERC license.
(c) If, following the technical and environmental review of your submitted
COP, BOEM determines that such facilities may not remain in place, you
must initiate the decommissioning
process, as provided in subpart I of this
part.
(d) If FERC determines that such facilities may not remain in place, you
must initiate the decommissioning
process as provided in subpart I of this
part.
(e) You must initiate the decommissioning process, as set forth in subpart

I of this part, upon the termination of
your lease.
§ 585.619

[Reserved]

CONSTRUCTION AND OPERATIONS PLAN
FOR COMMERCIAL LEASES
§ 585.620 What is a Construction and
Operations Plan (COP)?
The COP describes your construction,
operations, and conceptual decommissioning plans under your commercial
lease, including your project easement.
BOEM will withhold trade secrets and
commercial or financial information
that is privileged or confidential from
public disclosure under exemption 4 of
the FOIA and in accordance with the
terms of § 585.113.
(a) Your COP must describe all
planned facilities that you will construct and use for your project, including onshore and support facilities and
all anticipated project easements.
(b) Your COP must describe all proposed activities including your proposed construction activities, commercial operations, and conceptual decommissioning plans for all planned facilities, including onshore and support facilities.
(c) You must receive BOEM approval
of your COP before you can begin any
of the approved activities on your
lease.
§ 585.621 What must I demonstrate in
my COP?
Your COP must demonstrate that
you have planned and are prepared to
conduct the proposed activities in a
manner that conforms to your responsibilities listed in § 585.105(a) and:
(a) Conforms to all applicable laws,
implementing regulations, lease provisions, and stipulations or conditions of
your commercial lease;
(b) Is safe;
(c) Does not unreasonably interfere
with other uses of the OCS, including
those involved with National security
or defense;
(d) Does not cause undue harm or
damage to natural resources; life (including human and wildlife); property;
the marine, coastal, or human environment; or sites, structures, or objects of
historical or archaeological significance;

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§ 585.622

30 CFR Ch. V (7–1–17 Edition)

(e) Uses best available and safest
technology;
(f) Uses best management practices;
and
(g) Uses properly trained personnel.
§ 585.622

§§ 585.623–585.625

[Reserved]

CONTENTS OF THE CONSTRUCTION AND
OPERATIONS PLAN

How do I submit my COP?

(a) You must submit one paper copy
and one electronic version of your COP
to BOEM at the address listed in
§ 585.110(a).
(b) You may submit information and
a request for any project easement as

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part of your original COP submission
or as a revision to your COP.

§ 585.626 What must I include in my
COP?
(a) You must submit the results of
the following surveys for the proposed
site(s) of your facility(ies). Your COP
must include the following information:

Information:

Report contents:

Including:

(1) Shallow hazards ........

The results of the shallow hazards survey with
supporting data.

(2) Geological survey relevant to the design and
siting of your facility.

The results of the geological survey with supporting data.

(3) Biological ...................

The results of the biological survey with supporting data.

(4) Geotechnical survey ..

The results of your sediment testing program
with supporting data, the various field and laboratory test methods employed, and the applicability of these methods as they pertain to the
quality of the samples, the type of sediment,
and the anticipated design application. You
must explain how the engineering properties of
each sediment stratum affect the design of
your facility. In your explanation, you must describe the uncertainties inherent in your overall
testing program, and the reliability and applicability of each test method.

(5) Archaeological resources.

The results of the archaeological resource survey with supporting data.

(6) Overall site investigation.

An overall site investigation report for your facility that integrates the findings of your shallow
hazards surveys and geologic surveys, and, if
required, your subsurface surveys with supporting data.

Information sufficient to determine the presence
of the following features and their likely effects
on your proposed facility, including:
(i) Shallow faults;
(ii) Gas seeps or shallow gas;
(iii) Slump blocks or slump sediments;
(iv) Hydrates; or
(v) Ice scour of seabed sediments.
Assessment of:
(i) Seismic activity at your proposed site;
(ii) Fault zones;
(iii) The possibility and effects of seabed subsidence; and
(iv) The extent and geometry of faulting attenuation effects of geologic conditions near your
site.
A description of the results of biological surveys
used to determine the presence of live bottoms, hard bottoms, and topographic features,
and surveys of other marine resources such
as fish populations (including migratory populations), marine mammals, sea turtles, and sea
birds.
(i) The results of a testing program used to investigate the stratigraphic and engineering
properties of the sediment that may affect the
foundations or anchoring systems for your facility.
(ii) The results of adequate in situ testing, boring,
and sampling at each foundation location, to
examine all important sediment and rock strata
to determine its strength classification, deformation properties, and dynamic characteristics.
(iii) The results of a minimum of one deep boring
(with soil sampling and testing) at each edge
of the project area and within the project area
as needed to determine the vertical and lateral
variation in seabed conditions and to provide
the relevant geotechnical data required for design.
A description of the historic and prehistoric archaeological resources, as required by the
NHPA (16 U.S.C. 470 et. seq.), as amended.
An analysis of the potential for:
(i) Scouring of the seabed;
(ii) Hydraulic instability;
(iii) The occurrence of sand waves;
(iv) Instability of slopes at the facility location;
(v) Liquefaction, or possible reduction of sediment strength due to increased pore pressures;
(vi) Degradation of subsea permafrost layers;

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Ocean Energy Management, Interior
Information:

§ 585.626

Report contents:

Including:
(vii) Cyclic loading;
(viii) Lateral loading;
(ix) Dynamic loading;
(x) Settlements and displacements;
(xi) Plastic deformation and formation collapse mechanisms; and
(xii) Sediment reactions on the facility foundations or anchoring systems.

(b) Your COP must include the following project-specific information, as applicable.
Project information:

Including:

(1) Contact information ................................................................

The name, address, e-mail address, and phone number of an
authorized representative.
As provided in § 585.405.
A discussion of the objectives, description of the proposed activities, tentative schedule from start to completion, and
plans for phased development, as provided in § 585.629.
A description of the measures you took, or will take, to satisfy
the conditions of any lease stipulations related to your proposed activities.
The surface location and water depth for all proposed and existing structures, facilities, and appurtenances located both
offshore and onshore, including all anchor/mooring data.
Information for each type of structure associated with your
project and, unless BOEM provides otherwise, how you will
use a CVA to review and verify each stage of the project.
Location, design and installation methods, testing, maintenance, repair, safety devices, exterior corrosion protection,
inspections, and decommissioning.
Safety, prevention, and environmental protection features or
measures that you will use.
Disposal methods and locations.
A list of chemical products used; the volume stored on location; their treatment, discharge, or disposal methods used;
and the name and location of the onshore waste receiving,
treatment, and/or disposal facility. A description of how these
products would be brought onsite, the number of transfers
that may take place, and the quantity that that will be transferred each time.
An estimate of the frequency and duration of vessel/vehicle/aircraft traffic.
(i) Under normal conditions.
(ii) In the case of accidents or emergencies, including those
that are natural or manmade.
A discussion of general concepts and methodologies.
(i) The U.S. Coast Guard, U.S. Army Corps Of Engineers, and
any other applicable authorizations, approvals, or permits, including any Federal, State or local authorizations pertaining
to energy gathering, transmission or distribution (e.g., interconnection authorizations).
(ii) A statement indicating whether you have applied for or obtained such authorization, approval, or permit.
A description of the measures you will use to avoid or minimize adverse effects and any potential incidental take before
you conduct activities on your lease, and how you will mitigate environmental impacts from your proposed activities, including a description of the measures you will use as required by subpart H of this part.
A listing of the documents you referenced.
Contact information and issues discussed.

(2) Designation of operator, if applicable ....................................
(3) The construction and operation concept ...............................

(4) Commercial lease stipulations and compliance ....................

(5) A location plat ........................................................................

(6) General structural and project design, fabrication, and installation.
(7) All cables and pipelines, including cables on project easements.
(8) A description of the deployment activities .............................
(9) A list of solid and liquid wastes generated ............................
(10) A listing of chemical products used (if stored volume exceeds Environmental Protection Agency (EPA) Reportable
Quantities).

(11) A description of any vessels, vehicles, and aircraft you will
use to support your activities.
(12) A general description of the operating procedures and
systems.
(13) Decommissioning and site clearance procedures ...............
(14) A listing of all Federal, State, and local authorizations, approvals, or permits that are required to conduct the proposed
activities, including commercial operations.

(15) Your proposed measures for avoiding, minimizing, reducing, eliminating, and monitoring environmental impacts.

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(16) Information you incorporate by reference ............................
(17) A list of agencies and persons with whom you have communicated, or with whom you will communicate, regarding
potential impacts associated with your proposed activities.
(18) Reference .............................................................................

(19) Financial assurance .............................................................

A list of any document or published source that you cite as
part of your plan. You may reference information and data
discussed in other plans you previously submitted or that are
otherwise readily available to BOEM.
Statements attesting that the activities and facilities proposed
in your COP are or will be covered by an appropriate bond
or security, as required by §§ 585.515 and 585.516.

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§ 585.627

30 CFR Ch. V (7–1–17 Edition)

Project information:

Including:

(20) CVA nominations for reports required in subpart G of this
part.

(22) Air quality information ..........................................................
(23) Other information .................................................................

CVA nominations for reports in subpart G of this part, as required by § 585.706, or a request for a waiver under
§ 585.705(c).
A reasonable schedule of construction activity showing significant milestones leading to the commencement of commercial operations.
As described in § 585.659 of this section.
Additional information as required by BOEM.

§ 585.627 What information and certifications must I submit with my COP
to assist the BOEM in complying
with NEPA and other relevant
laws?
(a) You must submit with your COP
detailed information to assist BOEM in

complying with NEPA and other relevant laws. Your COP must describe
those resources, conditions, and activities listed in the following table that
could be affected by your proposed activities, or that could affect the activities proposed in your COP, including:

(21) Construction schedule .........................................................

Type of information:

Including:

(1) Hazard information ..............

Meteorology, oceanography, sediment transport, geology, and shallow geological or manmade
hazards.
Turbidity and total suspended solids from construction.
Benthic communities, marine mammals, sea turtles, coastal and marine birds, fish and shellfish, plankton, seagrasses, and plant life.
As defined by the ESA (16 U.S.C. 1531 et seq.).

(2) Water quality .......................
(3) Biological resources ............
(4) Threatened or endangered
species.
(5) Sensitive biological resources or habitats.
(6) Archaeological resources ....
(7) Social and economic resources.

(8) Coastal and marine uses ....
(9) Consistency Certification ....

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(10) Other resources, conditions, and activities.

Essential fish habitat, refuges, preserves, special management areas identified in coastal management programs, sanctuaries, rookeries, hard bottom habitat, chemosynthetic communities, calving grounds, barrier islands, beaches, dunes, and wetlands.
As required by the NHPA (16 U.S.C. 470 et seq.), as amended.
Employment, existing offshore and coastal infrastructure (including major sources of supplies,
services, energy, and water), land use, subsistence resources and harvest practices, recreation, recreational and commercial fishing (including typical fishing seasons, location, and
type), minority and lower income groups, coastal zone management programs, and
viewshed.
Military activities, vessel traffic, and energy and nonenergy mineral exploration or development.
As required by the CZMA regulations:
(i) 15 CFR part 930, subpart D, if your COP is submitted before lease issuance.
(ii) 15 CFR part 930, subpart E, if your COP is submitted after lease issuance.
As identified by BOEM.

(b) You must submit one paper copy
and one electronic copy of your consistency certification. Your consistency certification must include:
(1) One copy of your consistency certification under either subsection
307(c)(3)(B) of the CZMA (16 U.S.C.
1456(c)(3)(B)) and 15 CFR 930.76 or subsection 307(c)(3)(A) of the CZMA (16
U.S.C. 1456(c)(3)(A)) and 15 CFR 930.57,
stating that the proposed activities described in detail in your plans comply
with the State(s) approved coastal
management program(s) and will be
conducted in a manner that is consistent with such program(s); and
(2) ‘‘Necessary data and information,’’ as required by 15 CFR 930.58.

(c) You must submit your oil spill response plan, as required by 30 CFR part
254.
(d) You must submit your Safety
Management System as required by
§ 585.810.
[76 FR 64623, Oct. 18, 2011, as amended at 79
FR 21624, Apr. 17, 2014]

§ 585.628 How will BOEM process my
COP?
(a) BOEM will review your submitted
COP, and the information provided pursuant to § 585.627, to determine if it
contains all the required information
necessary to conduct our technical and
environmental reviews. We will notify
you if your submitted COP lacks any
necessary information.

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pmangrum on DSK3GDR082PROD with CFR

Ocean Energy Management, Interior

§ 585.633

(b) BOEM will prepare an appropriate
NEPA analysis.
(c) If your COP is submitted after
lease issuance, BOEM will forward one
copy of your COP, consistency certification, and associated data and information under the CZMA to the applicable State CZMA agency or agencies
after all information requirements for
the COP are met.
(d) As appropriate, BOEM will coordinate and consult with relevant Federal,
State, and local agencies and affected
Indian Tribes, and provide to them relevant nonproprietary data and information pertaining to your proposed activities.
(e) During the review process, we
may request additional information if
we determine that the information provided is not sufficient to complete the
review and approval process. If you fail
to provide the requested information,
BOEM may disapprove your COP.
(f) Upon completion of our technical
and environmental reviews and other
reviews required by Federal law (e.g.,
CZMA), BOEM may approve, disapprove, or approve with modifications
your COP.
(1) If we approve your COP, we will
specify terms and conditions to be incorporated into your COP. You must
certify compliance with certain of
those terms and conditions, as required
under § 585.633(b); and
(2) If we disapprove your COP, we will
inform you of the reasons and allow
you an opportunity to resubmit a revised plan addressing the concerns
identified, and may suspend the term
of your lease, as appropriate, to allow
this to occur.
(g) If BOEM approves your project
easement, BOEM will issue an addendum to your lease specifying the terms
of the project easement. A project easement may include off-lease areas that:
(1) Contain the sites on which cable,
pipeline, or associated facilities are located;
(2) Do not exceed 200 feet (61 meters)
in width, unless safety and environmental factors during construction and
maintenance of the associated cables
or pipelines require a greater width;
and
(3) For associated facilities, are limited to the area reasonably necessary

for power or pumping stations or other
accessory facilities.
[76 FR 64623, Oct. 18, 2011, as amended at 79
FR 21625, Apr. 17, 2014]

§ 585.629 May I develop my lease in
phases?
In your COP, you may request development of your commercial lease in
phases. In support of your request, you
must provide details as to what portions of the lease will be initially developed for commercial operations and
what portions of the lease will be reserved for subsequent phased development.
§ 585.630

[Reserved]

ACTIVITIES UNDER AN APPROVED COP
§ 585.631 When must I initiate activities under an approved COP?
After your COP is approved, you
must commence construction by the
date given in the construction schedule
required by § 585.626(b)(21), and included
as a part of your approved COP, unless
BOEM approves a deviation from your
schedule.
§ 585.632 What documents must I submit before I may construct and install facilities under my approved
COP?
(a) You must submit to BOEM the
documents listed in the following
table:
Requirements are
found in:

Document:
(1) Facility Design Report ........................
(2) Fabrication and Installation Report ....

(b) You must submit your Safety
Management System, as required by
§ 585.810 of this part.
(c) These activities must fall within
the scope of your approved COP. If they
do not fall within the scope of your approved COP, you will be required to
submit a revision to your COP, under
§ 585.634, for BOEM approval before
commencing the activity.
§ 585.633 How do I comply with my
COP?
(a) Based on BOEM’s environmental
and technical reviews, we will specify

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§ 585.634

30 CFR Ch. V (7–1–17 Edition)

terms and conditions to be incorporated into your COP.
(b) You must submit a certification
of compliance annually (or other frequency as determined by BOEM) with
certain terms and conditions of your
COP that BOEM identifies. Together
with your certification, you must submit:
(1) Summary reports that show compliance with the terms and conditions
which require certification; and
(2) A statement identifying and describing any mitigation measures and
monitoring methods, and their effectiveness. If you identified measures
that were not effective, then you must
make recommendations for new mitigation measures or monitoring methods.
(c) As provided at § 585.105(i), BOEM
may require you to submit any supporting data and information.

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§ 585.634 What activities require a revision to my COP, and when will
BOEM approve the revision?
(a) You must notify BOEM in writing
before conducting any activities not
described in your approved COP, describing in detail the type of activities
you propose to conduct. We will determine whether the activities you propose are authorized by your existing
COP or require a revision to your COP.
We may request additional information
from you, if necessary, to make this
determination.
(b) BOEM will periodically review the
activities conducted under an approved
COP. The frequency and extent of the
review will be based on the significance
of any changes in available information, and on onshore or offshore conditions affecting, or affected by, the activities conducted under your COP. If
the review indicates that the COP
should be revised to meet the requirement of this part, we will require you
to submit the needed revisions.
(c) Activities for which a proposed revision to your COP will likely be necessary include:
(1) Activities not described in your
approved COP;
(2) Modifications to the size or type
of facility or equipment you will use;
(3) Change in the surface location of
a facility or structure;

(4) Addition of a facility or structure
not described in your approved COP;
(5) Change in the location of your onshore support base from one State to
another or to a new base requiring expansion;
(6) Changes in the location of bottom
disturbances (anchors, chains, etc.) by
500 feet (152 meters) or greater from the
approved locations (e.g., if a specific
anchor pattern was approved as a mitigation measure to avoid contact with
bottom features, any change in the
proposed bottom disturbances would
likely trigger the need for a revision);
(7) Structural failure of one or more
facilities; or
(8) Change in any other activity specified by BOEM.
(d) We may begin the appropriate
NEPA analysis and relevant consultations when we determine that a proposed revision could:
(1) Result in a significant change in
the impacts previously identified and
evaluated;
(2) Require any additional Federal
authorizations; or
(3) Involve activities not previously
identified and evaluated.
(e) When you propose a revision, we
may approve the revision if we determine that the revision is:
(1) Designed not to cause undue harm
or damage to natural resources; life
(including human and wildlife); property; the marine, coastal, or human environment; or sites, structures, or objects of historical or archaeological
significance; and
(2) Otherwise consistent with the provisions of subsection 8(p) of the OCS
Lands Act.
§ 585.635 What must I do if I cease activities approved in my COP before
the end of my commercial lease?
You must notify the BOEM, within 5
business days, any time you cease commercial operations, without an approved suspension, under your approved COP. If you cease commercial
operations for an indefinite period
which extends longer than 6 months,
we may cancel your lease under
§ 585.437 and, you must initiate the decommissioning process as set forth in
subpart I of this part.

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§ 585.642

§ 585.636 What notices must I provide
BOEM following approval of my
COP?
You must notify BOEM in writing of
the following events, within the time
periods provided:
(a) No later than 30 days after commencing activities associated with the
placement of facilities on the lease
area under a Fabrication and Installation Report.
(b) No later than 30 days after completion of construction and installation
activities under a Fabrication and Installation Report.
(c) At least 7 days before commencing commercial operations.
§ 585.637 When may I commence commercial operations on my commercial lease?
If you are conducting activities on
your lease that:
(a) Do not require a FERC license
(i.e., wind), then you may commence
commercial operations 30 days after
the CVA or project engineer has submitted to BOEM the final Fabrication
and Installation Report for the fabrication and installation review, as provided in § 585.708.
(b) Require a FERC license or exemption, then you may commence commercial operations when permitted by the
terms of your license or exemption.
§ 585.638 What must I do upon completion of my commercial operations
as approved in my COP or FERC license?

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(a) Upon completion of your approved
activities under your COP, you must
initiate the decommissioning process
as set forth in subpart I of this part.
You must submit your decommissioning application as provided in
§§ 585.905 and 585.906.
(b) Upon completion of your approved
activities under your FERC license, the
terms of your FERC license will govern
your decommissioning activities.

§ 585.639

[Reserved]

GENERAL

ACTIVITIES PLAN REQUIREMENTS FOR LIMITED LEASES, ROW
GRANTS, AND RUE GRANTS

§ 585.640 What is a General Activities
Plan (GAP)?
(a) A GAP describes your proposed
construction, activities, and conceptual decommissioning plans for all
planned facilities, including testing of
technology devices and onshore and
support facilities that you will construct and use for your project, including any project easements for the assessment and development of your limited lease or grant.
(b) You must receive BOEM approval
of your GAP before you can begin any
of the approved activities on your lease
or grant. You must submit your GAP
no later than 12 months from the date
of the lease or grant issuance.
[76 FR 64623, Oct. 18, 2011, as amended at 79
FR 21625, Apr. 17, 2014]

§ 585.641 What must I demonstrate in
my GAP?
Your GAP must demonstrate that
you have planned and are prepared to
conduct the proposed activities in a
manner that:
(a) Conforms to all applicable laws,
implementing regulations, lease provisions and stipulations;
(b) Is safe;
(c) Does not unreasonably interfere
with other uses of the OCS, including
those involved with National security
or defense;
(d) Does not cause undue harm or
damage to natural resources; life (including human and wildlife); property;
the marine, coastal, or human environment; or sites, structures, or objects of
historical or archaeological significance;
(e) Uses best available and safest
technology;
(f) Uses best management practices;
and
(g) Uses properly trained personnel.
§ 585.642 How do I submit my GAP?
(a) You must submit one paper copy
and one electronic version of your GAP
to BOEM at the address listed in
§ 585.110(a).

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§§ 585.643–585.644

30 CFR Ch. V (7–1–17 Edition)

(b) If you have a limited lease, you
may submit information on any project
easement as part of your original GAP
submission or as a revision to your
GAP.

§§ 585.643–585.644

[Reserved]

CONTENTS OF THE GENERAL ACTIVITIES
PLAN
§ 585.645 What must I include in my
GAP?
(a) You must provide the following
results of geophysical and geological
surveys, hazards surveys, archaeological surveys (if required), and baseline collection studies (e.g., biological)
with the supporting data in your GAP:

Information:

Report contents:

Including:

(1) Geotechnical ..............

The results from the geotechnical survey with
supporting data.

(2) Shallow hazards ........

The results from the shallow hazards survey with
supporting data.

(3) Archaeological resources.

The results from the archaeological survey with
supporting data, if required.

(4) Geological survey ......

The results from the geological survey with supporting data.

(5) Biological survey ........

The results from the biological survey with supporting data.

A description of all relevant seabed and engineering data and information to allow for the
design of the foundation for that facility. You
must provide data and information to depths
below which the underlying conditions will not
influence the integrity or performance of the
structure. This could include a series of sampling locations (borings and in situ tests) as
well as laboratory testing of soil samples, but
may consist of a minimum of one deep boring
with samples.
A description of information sufficient to determine the presence of the following features
and their likely effects on your proposed facility, including:
(i) Shallow faults;
(ii) Gas seeps or shallow gas;
(iii) Slump blocks or slump sediments;
(iv) Hydrates; or
(v) Ice scour of seabed sediments.
(i) A description of the results and data from the
archaeological survey;
(ii) A description of the historic and prehistoric archaeological resources, as required by NHPA (16 U.S.C. 470 et seq.),
as amended.
A report that describes the results of a geological survey that includes descriptions of:
(i) Seismic activity at your proposed site;
(ii) Fault zones;
(iii) The possibility and effects of seabed
subsidence; and
(iv) The extent and geometry of faulting attenuation effects of geologic conditions
near your site.
A description of the results of a biological survey, including the presence of live bottoms,
hard bottoms, and topographic features, and
surveys of other marine resources such as fish
populations (including migratory populations),
marine mammals, sea turtles, and sea birds.

(b) For all activities you propose to conduct under your GAP, you must provide
the following information:
Project information:

Including:

(1) Contact information ................................................................

The name, address, e-mail address, and phone number of an
authorized representative.
A discussion of the objectives; description of the proposed activities, including the technology you will use; and proposed
schedule from start to completion.
As provided in § 585.405.
A description of the measures you took, or will take, to satisfy
the conditions of any lease stipulations related to your proposed activities.

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(2) The site assessment or technology testing concept .............

(3) Designation of operator, if applicable ....................................
(4) ROW, RUE or limited lease grant stipulations, if known .......

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Ocean Energy Management, Interior

§ 585.646

Project information:

Including:

(5) A location plat ........................................................................

The surface location and water depth for all proposed and existing structures, facilities, and appurtenances located both
offshore and onshore.
Information for each type of facility associated with your
project.
A description of the safety, prevention, and environmental protection features or measures that you will use.
Disposal methods and locations.
A list of chemical products used; the volume stored on location; their treatment, discharge, or disposal methods used;
and the name and location of the onshore waste receiving,
treatment, and/or disposal facility. A description of how these
products would be brought onsite, the number of transfers
that may take place, and the quantity that will be transferred
each time.
A list of any document or published source that you cite as
part of your plan. You may reference information and data
discussed in other plans you previously submitted or that are
otherwise readily available to BOEM.
A discussion of methodologies.
As described in § 585.659 of this section.
A statement indicating whether such authorization or approval
has been applied for or obtained.

(6) General structural and project design, fabrication, and installation.
(7) Deployment activities .............................................................
(8) A list of solid and liquid wastes generated ............................
(9) A listing of chemical products used (only if stored volume
exceeds USEPA Reportable Quantities).

(10) Reference information ..........................................................

(11) Decommissioning and site clearance procedures ...............
(12) Air quality information ..........................................................
(13) A listing of all Federal, State, and local authorizations or
approvals required to conduct site assessment activities on
your lease.
(14) A list of agencies and persons with whom you have communicated, or with whom you will communicate, regarding
potential impacts associated with your proposed activities.
(15) Financial assurance information ..........................................

(16) Other information .................................................................

(c) If you are applying for a project
easement or constructing a facility, or
a combination of facilities deemed by
BOEM to be complex or significant,
you must provide the following infor-

Statements attesting that the activities and facilities proposed
in your GAP are or will be covered by an appropriate bond
or other approved security, as required in §§ 585.520 and
585.521.
Additional information as requested by BOEM.

mation in addition to what is required
in paragraphs (a) and (b) of this section
and comply with the requirements of
subpart G of this part:

Project information:

Including:

(1) The construction and operation concept ...............................

A discussion of the objectives, description of the proposed activities, and tentative schedule from start to completion.
The location, design, installation methods, testing, maintenance, repair, safety devices, exterior corrosion protection,
inspections, and decommissioning.
Safety, prevention, and environmental protection features or
measures that you will use.
(i) Under normal conditions.
(ii) In the case of accidents or emergencies, including those
that are natural or manmade.
CVA nominations for reports in subpart G of this part, as required by § 585.706, or a request for a waiver under
§ 585.705(c).
A reasonable schedule of construction activity showing significant milestones leading to the commencement of activities.
Additional information as required by the BOEM.

(2) All cables and pipelines, including cables on project easements.
(3) A description of the deployment activities .............................
(4) A general description of the operating procedures and systems.
(5) CVA nominations for reports required in subpart G of this
part.
(6) Construction schedule ...........................................................
(7) Other information ...................................................................

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Contact information and issues discussed.

(d) BOEM will withhold trade secrets
and commercial or financial information that is privileged or confidential
from public disclosure in accordance
with the terms of § 585.113.

§ 585.646 What information and certifications must I submit with my GAP
to assist BOEM in complying with
NEPA and other relevant laws?
You must submit, with your GAP, detailed information to assist BOEM in

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§ 585.647

30 CFR Ch. V (7–1–17 Edition)

complying with NEPA and other relevant laws as appropriate.
(a) A GAP submitted for an area in
which BOEM has not reviewed GAP activities under NEPA or other applicable Federal laws must describe those
resources, conditions, and activities
listed in the following table that could
be affected by your proposed activities
or that could affect the activities proposed in your GAP.
(b) For a GAP submitted for an area
in which BOEM has considered GAP activities under applicable Federal law
(e.g., a NEPA analysis and CZMA consistency determination for the GAP activities), BOEM will review the GAP to

determine if its impacts are consistent
with those previously considered. If the
anticipated effects of your proposed
GAP activities are significantly different than those previously anticipated, we may determine that additional NEPA and other relevant Federal reviews are required. In that case,
BOEM will notify you of such determination, and you must submit a GAP
that describes those resources, conditions, and activities listed in the following table that could be affected by
your proposed activities or that could
affect the activities proposed in your
GAP, including:

Type of information:

Including:

(1) Hazard information ..............

Meteorology, oceanography, sediment transport, geology, and shallow geological or manmade
hazards.
Turbidity and total suspended solids from construction.
Benthic communities, marine mammals, sea turtles, coastal and marine birds, fish and shellfish, plankton, sea grasses, and other plant life.
As required by the ESA (16 U.S.C. 1531 et seq.).

(2) Water quality .......................
(3) Biological resources ............
(4) Threatened or endangered
species.
(5) Sensitive biological resources or habitats.
(6) Archaeological resources ....
(7) Social and economic conditions.

(8) Coastal and marine uses ....
(9) Consistency Certification ....

(10) Other resources, conditions, and activities.

Essential fish habitat, refuges, preserves, special management areas identified in coastal management programs, sanctuaries, rookeries, hard bottom habitat, chemosynthetic communities, calving grounds, barrier islands, beaches, dunes, and wetlands.
As required by NHPA (16 U.S.C. 470 et seq.), as amended.
Employment, existing offshore and coastal infrastructure (including major sources of supplies,
services, energy, and water), land use, subsistence resources and harvest practices, recreation, recreational and commercial fishing (including typical fishing seasons, location, and
type), minority and lower income groups, coastal zone management programs, and
viewshed.
Military activities, vessel traffic, and energy and non-energy mineral exploration or development.
If required by CZMA, as appropriate: (A) 15 CFR part 930, subpart D, if the GAP is submitted
prior to lease or grant issuance; (B) 15 CFR part 930, subpart E, if the GAP is submitted
after lease or grant issuance.
As required by BOEM.

[79 FR 21625, Apr. 17, 2014]

§ 585.647 How will my GAP be processed for Federal consistency under the Coastal Zone Management Act?
Your GAP will be processed based on whether it is submitted before or after
your lease or grant is issued:
If your GAP is submitted:

Consistency review of your GAP will be handled as follows:

(a) Before lease or grant
issuance.

You will furnish a copy of your GAP, consistency certification, and necessary data and information pursuant to 15 CFR part 930, subpart D, to the applicable State CZMA agency or
agencies and BOEM at the same time.
You will submit a copy of your GAP, consistency certification, and necessary data and information pursuant to 15 CFR 930, subpart E to BOEM. BOEM will forward to the applicable
State CZMA agency or agencies one paper copy and one electronic copy of your GAP, consistency certification, and necessary data and information required under 15 CFR part 930,
subpart E, after BOEM has determined that all information requirements for the GAP are
met.

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(b) After lease or grant
issuance.

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Ocean Energy Management, Interior

§ 585.653

[79 FR 21625, Apr. 17, 2014]

§ 585.649

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§ 585.648 How will BOEM process my
GAP?
(a) BOEM will review your submitted
GAP, along with the information and
certifications provided pursuant to
§ 585.646, to determine if it contains all
the required information necessary to
conduct our technical and environmental reviews.
(1) We will notify you if we deem
your proposed facility or combination
of facilities to be complex or significant; and
(2) We will notify you if your submitted GAP lacks any necessary information.
(b) BOEM will prepare appropriate
NEPA analysis.
(c) When appropriate, we will coordinate and consult with relevant State
and Federal agencies and affected Indian Tribes and provide to other local,
State, and Federal agencies and affected Indian Tribes relevant nonproprietary data and information pertaining to your proposed activities.
(d) During the review process, we
may request additional information if
we determine that the information provided is not sufficient to complete the
review and approval process. If you fail
to provide the requested information,
BOEM may disapprove your GAP.
(e) Upon completion of our technical
and environmental reviews and other
reviews required by Federal law (e.g.,
CZMA), BOEM may approve, disapprove, or approve with modifications
your GAP.
(1) If we approve your GAP, we will
specify terms and conditions to be incorporated into your GAP. You must
certify compliance with certain of
those terms and conditions, as required
under § 585.653(c); and
(2) If we disapprove your GAP, we
will inform you of the reasons and
allow you an opportunity to resubmit a
revised plan making the necessary corrections, and may suspend the term of
your lease or grant, as appropriate, to
allow this to occur.

[Reserved]

ACTIVITIES UNDER AN APPROVED GAP
§ 585.650 When may I begin conducting
activities under my GAP?
After BOEM approves your GAP, you
may begin conducting the approved activities that do not involve a project
easement or the construction of facilities on the OCS that BOEM has deemed
to be complex or significant.
§ 585.651 When may I construct complex or significant OCS facilities on
my limited lease or any facilities on
my project easement proposed
under my GAP?
If you are applying for a project easement, or installing a facility or a combination of facilities on your limited
lease deemed by BOEM to be complex
or
significant,
as
provided
in
§ 585.648(a)(1), you also must comply
with the requirements of subpart G of
this part and submit your Safety Management System description required
by § 585.810 before construction may
begin.
§ 585.652 How long do I have to conduct activities under an approved
GAP?
After BOEM approves your GAP, you
have:
(a) For a limited lease, 5 years to
conduct your approved activities, unless we renew the term under §§ 585.425
through 585.429.
(b) For a ROW grant or RUE grant,
the time provided in the terms of the
grant.
§ 585.653 What other reports or notices
must I submit to BOEM under my
approved GAP?
(a) You must notify BOEM in writing
within 30 days after completing installation activities approved in your GAP.
(b) You must prepare and submit to
BOEM annually a report that summarizes the findings from any activities
you conduct under your approved GAP
and the results of those activities. We
will protect the information from public disclosure as provided in § 585.113.
(c) You must annually (or other frequency as determined by BOEM) submit a certification of compliance with
those terms and conditions of your

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§ 585.654

30 CFR Ch. V (7–1–17 Edition)

GAP that BOEM identifies under
§ 585.648(e)(1). Together with your certification, you must submit:
(1) Summary reports that show compliance with the terms and conditions
which require certification; and
(2) A statement identifying and describing any mitigation measures and
monitoring methods and their effectiveness. If you identified measures
that were not effective, you must include your recommendations for new
mitigation measures or monitoring
methods.
§ 585.654

[Reserved]

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§ 585.655 What activities require a revision to my GAP, and when will
BOEM approve the revision?
(a) You must notify BOEM in writing
before conducting any activities not
described in your approved GAP, describing in detail the type of activities
you propose to conduct. We will determine whether the activities you propose are authorized by your existing
GAP or require a revision to your GAP.
We may request additional information
from you, if necessary, to make this
determination.
(b) BOEM will periodically review the
activities conducted under an approved
GAP. The frequency and extent of the
review will be based on the significance
of any changes in available information and on onshore or offshore conditions affecting, or affected by, the activities conducted under your GAP. If
the review indicates that the GAP
should be revised to meet the requirement of this part, we will require you
to submit the needed revisions.
(c) Activities for which a proposed revision to your GAP will likely be necessary include:
(1) Activities not described in your
approved GAP;
(2) Modifications to the size or type
of facility or equipment you will use;
(3) Change in the surface location of
a facility or structure;
(4) Addition of a facility or structure
not contemplated in your approved
GAP;
(5) Change in the location of your onshore support base from one State to
another or to a new base requiring expansion;

(6) Changes in the locations of bottom disturbances (anchors, chains, etc.)
by 500 feet (152 meters) or greater from
the approved locations. If a specific anchor pattern was approved as a mitigation measure to avoid contact with
bottom features, any change in the
proposed bottom disturbances would
likely trigger the need for a revision;
(7) Structural failure of one or more
facilities; or
(8) Change to any other activity specified by BOEM.
(d) We may begin the appropriate
NEPA analysis and any relevant consultations when we determine that a
proposed revision could:
(1) Result in a significant change in
the impacts previously identified and
evaluated;
(2) Require any additional Federal
authorizations; or
(3) Involve activities not previously
identified and evaluated.
(e) When you propose a revision, we
may approve the revision if we determine that the revision is:
(1) Designed not to cause undue harm
or damage to natural resources; life
(including human and wildlife); property; the marine, coastal, or human environment; or sites, structures, or objects of historical or archaeological
significance; and
(2) Otherwise consistent with the provisions of subsection 8(p) of the OCS
Lands Act.
§ 585.656 What must I do if I cease activities approved in my GAP before
the end of my term?
You must notify the BOEM any time
you cease activities under your approved GAP without an approved suspension. If you cease activities for an
indefinite period that exceeds 6
months, BOEM may cancel your lease
or grant under § 585.437, as applicable,
and you must initiate the decommissioning process, as set forth in subpart
I of this part.
§ 585.657 What must I do upon completion of approved activities under
my GAP?
Upon completion of your approved
activities under your GAP, you must
initiate the decommissioning process
as set forth in subpart I of this part.

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Ocean Energy Management, Interior

§ 585.700

You must submit your decommissioning application as provided in
§§ 585.905 and 585.906.
CABLE AND PIPELINE DEVIATIONS
§ 585.658 Can my cable or pipeline construction deviate from my approved
COP or GAP?
(a) You must make every effort to
ensure that all cables and pipelines are
constructed in a manner that minimizes deviations from the approved
plan under your lease or grant.
(b) If BOEM determines that a significant change in conditions has occurred that would necessitate an adjustment to your ROW, RUE or lease
before the commencement of construction of the cable or pipeline on the
grant or lease, BOEM will consider
modifications to your ROW grant, RUE
grant, or your lease addendum for a
project easement in connection with
your COP or GAP.

§ 585.659 What requirements must I include in my SAP, COP, or GAP regarding air quality?
(a) You must comply with the Clean
Air Act (42 U.S.C. 7409) and its implementing regulations, according to the
following table.

If your project is located . . .

you must . . .

(1) in the Gulf of Mexico west of 87.5° west longitude (western
Gulf of Mexico).

include in your plan any information required for BOEM to
make the appropriate air quality determinations for your
project.
follow the appropriate implementing regulations as promulgated by the EPA under 40 CFR part 55.

(2) anywhere else on the OCS ...................................................

(b) For air quality modeling that you
perform in support of the activities
proposed in your plan, you should contact the appropriate regulatory agency
to establish a modeling protocol to ensure that the agency’s needs are met
and that the meteorological files used
are acceptable before initiating the
modeling work. In the western Gulf of
Mexico (west of 87.5° west longitude),
you must submit to BOEM three copies
of the modeling report and three sets of
digital files as supporting information.
The digital files must contain the formatted meteorological files used in the
modeling runs, the model input file,
and the model output file.
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(c) If, after construction, it is determined that a deviation from the approved plan has occurred, you must:
(1) Notify the operators of all leases
(including mineral leases issued under
this subchapter) and holders of all
ROW grants or RUE grants (including
all grants issued under this subchapter)
which include the area where a deviation has occurred and provide BOEM
with evidence of such notification;
(2) Relinquish any unused portion of
your lease or grant; and
(3) Submit a revised plan for BOEM
approval as necessary.
(d) Construction of a cable or pipeline that substantially deviates from
the approved plan may be grounds for
cancellation of the lease or grant.

Subpart G—Facility Design,
Fabrication, and Installation
REPORTS
§ 585.700 What reports must I submit
to BOEM before installing facilities
described in my approved SAP,
COP, or GAP?
(a) You must submit the following reports to BOEM before installing facilities described in your approved COP
(§ 585.632(a)) and, when required by this
part, your SAP (§ 585.614(b)) or GAP
(§ 585.651):
(1) A Facility Design Report; and
(2) A Fabrication and Installation
Report.
(b) You may begin to fabricate and
install the approved facilities after
BOEM notifies you that it has received
your reports and has no objections. If
BOEM receives the reports, but does

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§ 585.701

30 CFR Ch. V (7–1–17 Edition)

not respond with objections within 60
days of receipt or 60 days after we approve your SAP, COP, or GAP, if you
submitted your report with the plan,
BOEM is deemed not to have objections
to the reports, and you may commence
fabrication and installation of your facility or facilities.
(c) If BOEM has any objections, we
will notify you verbally or in writing
within 60 days of receipt of the report.
Following initial notification of objections, BOEM may follow up with written correspondence outlining its specific objections to the report and request that certain actions be undertaken. You cannot commence activi-

§ 585.701 What must I include in my
Facility Design Report?
(a) Your Facility Design Report provides specific details of the design of
any facilities, including cables and
pipelines that are outlined in your approved SAP, COP, or GAP. Your Facility Design Report must demonstrate
that your design conforms to your responsibilities listed in § 585.105(a). You
must include the following items in
your Facility Design Report:

Required documents

Required contents

Other requirements

(1) Cover letter ..........................................

(i) Proposed facility designations;
(ii) Lease, ROW grant or RUE grant
number;
(iii) Area; name and block numbers; and
(iv) The type of facility.
(i) Latitude and longitude coordinates,
Universal Mercator grid-system coordinates, state plane coordinates in the
Lambert or Transverse Mercator Projection System;
(ii) Distances in feet from the nearest
block lines. These coordinates must
be based on the NAD (North American Datum) 83 datum plane coordinate system; and
(iii) The location of any proposed project
easement.
(i) Facility dimensions and orientation;
(ii) Elevations relative to Mean Lower
Low Water; and
(iii) Pile sizes and penetration.
The approved for construction fabrication
drawings should be submitted including, e.g.,
(i) Cathodic protection systems;
(ii) Jacket design;
(iii) Pile foundations;
(iv) Mooring and tethering systems;
(v) Foundations and anchoring systems;
and
(vi) Associated cable and pipeline designs.
A summary of the environmental data
used in the design or analysis of the
facility. Examples of relevant data include information on:
(i) Extreme weather; .........................
(ii) Seafloor conditions; and .............
(iii) Waves, wind, current, tides,
temperature, snow and ice effects, marine growth, and water
depth..

You must submit 1 paper copy and 1
electronic copy.

(2) Location plat ........................................

(3) Front, Side, and Plan View drawings ..

(4) Complete set of structural drawings ....

(5) Summary of environmental data used
for design.

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ties addressed in such report until you
resolve all objections to BOEM’s satisfaction.

Your plat must be drawn to a scale of 1
inch equals 100 feet and include the
coordinates of the lease, ROW grant,
or RUE grant block boundary lines.
You must submit 1 paper copy and 1
electronic copy.

Your drawing sizes must not exceed 11″
× 17″. You must submit 1 paper copy
and 1 electronic copy.
Your drawing sizes must not exceed 11″
× 17″. You must submit 1 paper copy
and 1 electronic copy.

You must submit 1 paper copy and 1
electronic copy. If you submitted these
data as part of your SAP, COP, or
GAP, you may reference the plan.

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Ocean Energy Management, Interior

§ 585.702

Required documents

Required contents

Other requirements

(6) Summary of the engineering design
data.

(i) Loading information (e.g., live, dead,
environmental);
(ii) Structural information (e.g., designlife; material types; cathodic protection
systems; design criteria; fatigue life;
jacket design; deck design; production
component design; foundation pilings
and templates, and mooring or tethering systems; fabrication and installation guidelines); and
(iii) Location of foundation boreholes and
foundation piles; and
(iv) Foundation information (e.g., soil
stability, design criteria).
Self-explanatory .......................................

You must submit 1 paper copy and 1
electronic copy.

(7) A complete set of design calculations
(8) Project-specific studies used in the facility design or installation.

(9) Description of the loads imposed on
the facility.

(10) Geotechnical Report ..........................

All studies pertinent to facility design or
installation, e.g., oceanographic and
soil reports including the results of the
surveys required in §§ 585.610(b),
585.627(a), or 585.645(a).
(i) Loads imposed by jacket;
(ii) Decks;
(iii) Production components;
(iv) Foundations, foundation pilings and
templates, and anchoring systems;
and
(v) Mooring or tethering systems.
A list of all data from borings and recommended design parameters.

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(b) For any floating facility, your design must meet the requirements of the
U.S. Coast Guard for structural integrity and stability (e.g., verification of
center of gravity). The design must
also consider:
(1) Foundations, foundation pilings
and templates, and anchoring systems;
and
(2) Mooring or tethering systems.
(c) You must provide the location of
records, as required in § 585.714(c).
(d) If you are required to use a CVA,
the Facility Design Report must include one paper copy of the following
certification statement: ‘‘The design of
this structure has been certified by a
BOEM approved CVA to be in accordance with accepted engineering practices and the approved SAP, GAP, or
COP as appropriate. The certified design and as-built plans and specifications will be on file at (given location).’’

You must submit 1 paper copy and 1
electronic copy.
You must submit 1 paper copy and 1
electronic copy.

You must submit 1 paper copy and 1
electronic copy.

You must submit 1 paper copy and 1
electronic copy.

(e) BOEM will withhold trade secrets
and commercial or financial information that is privileged or confidential
from public disclosure under exemption
4 of the FOIA and in accordance with
the terms of § 585.113.
§ 585.702 What must I include in my
Fabrication and Installation Report?
(a) Your Fabrication and Installation
Report must describe how your facilities will be fabricated and installed in
accordance with the design criteria
identified in the Facility Design Report; your approved SAP, COP, or GAP;
and generally accepted industry standards and practices. Your Fabrication
and Installation Report must demonstrate how your facilities will be fabricated and installed in a manner that
conforms to your responsibilities listed
in § 585.105(a). You must include the following items in your Fabrication and
Installation Report:

Required documents

Required contents

Other requirements

(1) Cover letter ..........................................

(i) Proposed facility designation, lease,
ROW grant, or RUE grant number;
(ii) Area, name, and block number; and
(iii) The type of facility.

You must submit 1 paper copy and 1
electronic copy.

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§ 585.703

30 CFR Ch. V (7–1–17 Edition)

Required documents

Required contents

Other requirements

(2) Schedule ..............................................

Fabrication and installation .....................

(3) Fabrication information ........................

The industry standards you will use to
ensure the facilities are fabricated to
the design criteria identified in your
Facility Design Report.
Details associated with the deployment
activities, equipment, and materials,
including onshore and offshore equipment and support, and anchoring and
mooring patterns.
Either 1 copy of the permit or information on the status of the application.
(i) Water discharge;
(ii) Waste disposal;
(iii) Vessel information; and
(iv) Onshore waste receiving treatment
or disposal facilities.
Design of any cables, pipelines, or facilities. Information on burial methods
and vessels.

You must submit 1 paper copy and 1
electronic copy.
You must submit 1 paper copy and 1
electronic copy.

(4) Installation process information ...........

(5) Federal, State, and local permits (e.g.,
EPA, Army Corps of Engineers).
(6) Environmental information ...................

(7) Project easement .................................

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(b) You must provide the location of
records, as required in § 585.714(c).
(c) If you are required to use a CVA,
the Fabrication and Installation Report must include one paper copy of
the following certification statement:
‘‘The fabrication and installation of
this structure has been certified by a
BOEM approved CVA to be in accordance with accepted engineering practices and the approved SAP, GAP, or
COP as appropriate. The certified design and as-built plans and specifications will be on file at (given location).’’
(d) BOEM will withhold trade secrets
and commercial or financial information that is privileged or confidential
from public disclosure under exemption
4 of the FOIA and in accordance with
the terms of § 585.113.
§ 585.703 What reports must I submit
for project modifications and repairs?
(a) You must verify and, in a report
to us, certify that major repairs and
major modifications to the project conform to accepted engineering practices.
(1) A major repair is a corrective action involving structural members affecting the structural integrity of a
portion of or all the facility.
(2) A major modification is an alteration involving structural members affecting the structural integrity of a
portion of or all the facility.

You must submit 1 paper copy and 1
electronic copy.

You must submit 1 paper copy and 1
electronic copy.
You must submit 1 paper copy and 1
electronic copy. If you submitted these
data as part of your SAP, COP, or
GAP, you may reference the plan.
You must submit 1 paper copy and 1
electronic copy.

(b) The report must also identify the
location of all records pertaining to the
major repairs or major modifications,
as required in § 585.714(c).
(c) BOEM may require you to use a
CVA for project modifications and repairs.
§ 585.704

[Reserved]

CERTIFIED VERIFICATION AGENT
§ 585.705 When must I use a Certified
Verification Agent (CVA)?
You must use a CVA to review and
certify the Facility Design Report, the
Fabrication and Installation Report,
and the Project Modifications and Repairs Report.
(a) You must use a CVA to:
(1) Ensure that your facilities are designed, fabricated, and installed in conformance with accepted engineering
practices and the Facility Design Report and Fabrication and Installation
Report;
(2) Ensure that repairs and major
modifications are completed in conformance with accepted engineering
practices; and
(3) Provide BOEM immediate reports
of all incidents that affect the design,
fabrication, and installation of the
project and its components.
(b) BOEM may waive the requirement
that you use a CVA if you can demonstrate the following:

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Ocean Energy Management, Interior

§ 585.707

If you demonstrate that . . .

Then BOEM may waive the requirement for a CVA for the following:

(1) The facility design conforms to a standard design that has
been used successfully in a similar environment, and the installation design conforms to accepted engineering practices.
(2) The manufacturer has successfully manufactured similar facilities, and the facility will be fabricated in conformance with
accepted engineering practices.
(3) The installation company has successfully installed similar
facilities in a similar offshore environment, and your structure(s) will be installed in conformance with accepted engineering practices.
(4) Repairs and major modifications will be completed in conformance with accepted engineering practices.

The design of your structure(s).

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(c) You must submit a request to
waive the requirement to use a CVA to
BOEM in writing, along with your SAP
under
§ 585.610(a)(9),
COP
under
§ 585.626(b)(20),
or
GAP
under
§ 585.645(c)(5).
(1) BOEM will review your request to
waive the use of the CVA and notify
you of our decision along with our decision on your SAP, COP, or GAP.
(2) If BOEM does not waive the requirement for a CVA, you may file an
appeal under § 585.118.
(3) If BOEM waives the requirement
that you use a CVA, your project engineer must perform the same duties and
responsibilities as the CVA, except as
otherwise provided.
§ 585.706 How do I nominate a CVA for
BOEM approval?
(a) As part of your COP (as provided
in § 585.626(b)(20) and, when required by
this part, your SAP (§ 585.610(a)(9)) or
GAP (§ 585.645(c)(5)), you must nominate a CVA for BOEM approval. You
must specify whether the nomination
is for the Facility Design Report, Fabrication and Installation Report, Modification and Repair Report, or for any
combination of these.
(b) For each CVA that you nominate,
you must submit to BOEM a list of
documents used in your design that
you will forward to the CVA and a
qualification statement that includes
the following:
(1) Previous experience in third-party
verification or experience in the design, fabrication, installation, or major
modification of offshore energy facilities;
(2) Technical capabilities of the individual or the primary staff for the specific project;

The fabrication of your structure(s).

The installation of your structure(s).

The repair or major modification of your structure(s).

(3) Size and type of organization or
corporation;
(4) In-house availability of, or access
to, appropriate technology (including
computer programs, hardware, and
testing materials and equipment);
(5) Ability to perform the CVA functions for the specific project considering current commitments;
(6) Previous experience with BOEM
requirements and procedures, if any;
and
(7) The level of work to be performed
by the CVA.
(c) Individuals or organizations acting as CVAs must not function in any
capacity that will create a conflict of
interest, or the appearance of a conflict
of interest.
(d) The verification must be conducted by or under the direct supervision of registered professional engineers.
(e) BOEM will approve or disapprove
your CVA as part of its review of the
COP or, when required, of your SAP or
GAP.
(f) You must nominate a new CVA for
BOEM approval if the previously approved CVA:
(1) Is no longer able to serve in a CVA
capacity for the project; or
(2) No longer meets the requirements
for a CVA set forth in this subpart.
§ 585.707 What are the CVA’s primary
duties for facility design review?
If you are required to use a CVA:
(a) The CVA must use good engineering judgment and practices in conducting an independent assessment of
the design of the facility. The CVA
must certify in the Facility Design Report to BOEM that the facility is designed to withstand the environmental

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§ 585.708

30 CFR Ch. V (7–1–17 Edition)

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and functional load conditions appropriate for the intended service life at
the proposed location.
(b) The CVA must conduct an independent assessment of all proposed:
(1) Planning criteria;
(2) Operational requirements;
(3) Environmental loading data;
(4) Load determinations;
(5) Stress analyses;
(6) Material designations;
(7) Soil and foundation conditions;
(8) Safety factors; and
(9) Other pertinent parameters of the
proposed design.
(c) For any floating facility, the CVA
must ensure that any requirements of
the U.S. Coast Guard for structural integrity and stability (e.g., verification
of center of gravity), have been met.
The CVA must also consider:
(1) Foundations, foundation pilings
and templates, and anchoring systems;
and
(2) Mooring or tethering systems.
§ 585.708 What are the CVA’s or project
engineer’s primary duties for fabrication and installation review?
(a) The CVA or project engineer must
do all of the following:
(1) Use good engineering judgment
and practice in conducting an independent assessment of the fabrication
and installation activities;
(2) Monitor the fabrication and installation of the facility as required by
paragraph (b) of this section;
(3) Make periodic onsite inspections
while fabrication is in progress and
verify the items required by § 585.709;
(4) Make periodic onsite inspections
while installation is in progress and
satisfy the requirements of § 585.710;
and
(5) Certify in a report that project
components are fabricated and installed in accordance with accepted engineering practices; your approved
COP, SAP, or GAP (as applicable); and
the Fabrication and Installation Report.
(i) The report must also identify the
location of all records pertaining to
fabrication and installation, as required in § 585.714(c); and
(ii) You may commence commercial
operations or other approved activities
30 days after BOEM receives that certification report, unless BOEM notifies

you within that time period of its objections to the certification report.
(b) To comply with paragraph (a)(5)
of this section, the CVA or project engineer must monitor the fabrication
and installation of the facility to ensure that it has been built and installed according to the Facility Design Report and Fabrication and Installation Report.
(1) If the CVA or project engineer
finds that fabrication and installation
procedures have been changed or design
specifications have been modified, the
CVA or project engineer must inform
you; and
(2) If you accept the modifications,
then you must also inform BOEM.
§ 585.709 When conducting onsite fabrication inspections, what must the
CVA or project engineer verify?
(a) To comply with § 585.708(a)(3), the
CVA or project engineer must make
periodic onsite inspections while fabrication is in progress and must verify
the following fabrication items, as appropriate:
(1) Quality control by lessee (or grant
holder) and builder;
(2) Fabrication site facilities;
(3) Material quality and identification methods;
(4) Fabrication procedures specified
in the Fabrication and Installation Report, and adherence to such procedures;
(5) Welder and welding procedure
qualification and identification;
(6) Structural tolerances specified,
and adherence to those tolerances;
(7) Nondestructive examination requirements and evaluation results of
the specified examinations;
(8) Destructive testing requirements
and results;
(9) Repair procedures;
(10) Installation of corrosion-protection systems and splash-zone protection;
(11) Erection procedures to ensure
that overstressing of structural members does not occur;
(12) Alignment procedures;
(13) Dimensional check of the overall
structure, including any turrets, turret-and-hull interfaces, any mooring
line and chain and riser tensioning line
segments; and

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Ocean Energy Management, Interior

§ 585.714

(14) Status of quality-control records
at various stages of fabrication.
(b) For any floating facilities, the
CVA or project engineer must ensure
that any requirements of the U.S.
Coast Guard for structural integrity
and stability (e.g., verification of center of gravity) have been met. The CVA
or project engineer must also consider:
(1) Foundations, foundation pilings
and templates, and anchoring systems;
and
(2) Mooring or tethering systems.

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§ 585.710 When conducting onsite installation inspections, what must
the CVA or project engineer do?
To comply with § 585.708(a)(4), the
CVA or project engineer must make
periodic onsite inspections while installation is in progress and must, as
appropriate, verify, witness, survey, or
check, the installation items required
by this section.
(a) The CVA or project engineer must
verify, as appropriate, all of the following:
(1) Loadout and initial flotation procedures;
(2) Towing operation procedures to
the specified location, and review the
towing records;
(3) Launching and uprighting activities;
(4) Submergence activities;
(5) Pile or anchor installations;
(6) Installation of mooring and tethering systems;
(7) Final deck and component installations; and
(8) Installation at the approved location according to the Facility Design
Report and the Fabrication and Installation Report.
(b) For a fixed or floating facility,
the CVA or project engineer must
verify that proper procedures were used
during the following:
(1) The loadout of the jacket, decks,
piles, or structures from each fabrication site; and
(2) The actual installation of the facility or major modification and the
related installation activities.
(c) For a floating facility, the CVA or
project engineer must verify that proper procedures were used during the following:
(1) The loadout of the facility;

(2) The installation of foundation pilings and templates, and anchoring systems; and
(3) The installation of the mooring
and tethering systems.
(d) The CVA or project engineer must
conduct an onsite survey of the facility
after transportation to the approved
location.
(e) The CVA or project engineer must
spot-check the equipment, procedures,
and recordkeeping as necessary to determine compliance with the applicable documents incorporated by reference and the regulations under this
part.
§ 585.711

[Reserved]

§ 585.712 What are the CVA’s or project
engineer’s reporting requirements?
(a) The CVA or project engineer must
prepare and submit to you and BOEM
all reports required by this subpart.
The CVA or project engineer must also
submit interim reports to you and
BOEM, as requested by the BOEM.
(b) For each report required by this
subpart, the CVA or project engineer
must submit one electronic copy and
one paper copy of each final report to
BOEM. In each report, the CVA or
project engineer must:
(1) Give details of how, by whom, and
when the CVA or project engineer activities were conducted;
(2) Describe the CVA’s or project engineer’s
activities
during
the
verification process;
(3) Summarize the CVA’s or project
engineer’s findings; and
(4) Provide any additional comments
that the CVA or project engineer
deems necessary.
§ 585.713 What must I do after the CVA
or project engineer confirms conformance with the Fabrication and
Installation Report on my commercial lease?
After the CVA or project engineer
files the certification report, you must
notify BOEM within 10 business days
after commencing commercial operations.
§ 585.714 What records relating to
SAPs, COPs, and GAPs must I keep?
(a) Until BOEM releases your financial assurance under § 585.534, you must

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§ 585.800

30 CFR Ch. V (7–1–17 Edition)

compile, retain, and make available to
BOEM representatives, within the time
specified by BOEM, all of the following:
(1) The as-built drawings;
(2) The design assumptions and analyses;
(3) A summary of the fabrication and
installation examination records;
(4) The inspection results from the
inspections and assessments required
by §§ 585.820 through 585.825; and
(5) Records of repairs not covered in
the inspection report submitted under
§ 585.824(b)(3).
(b) You must record and retain the
original material test results of all primary structural materials during all
stages of construction until BOEM releases your financial assurance under
§ 585.534. Primary material is material
that, should it fail, would lead to a significant reduction in facility safety,
structural reliability, or operating capabilities. Items such as steel brackets,
deck stiffeners and secondary braces or
beams would not generally be considered primary structural members (or
materials).
(c) You must provide BOEM with the
location of these records in the certification statement, as required in
§§ 585.701(c),
585.703(b),
and
585.708(a)(5)(i).

Subpart H—Environmental and
Safety Management, Inspections, and Facility Assessments for Activities Conducted Under SAPs, COPs and
GAPs

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§ 585.800 How must I conduct my activities to comply with safety and
environmental requirements?
(a) You must conduct all activities
on your lease or grant under this part
in a manner that conforms with your
responsibilities in § 585.105(a), and
using:
(1) Trained personnel; and
(2) Technologies, precautions, and
techniques that will not cause undue
harm or damage to natural resources,
including their physical, atmospheric,
and biological components.
(b) You must certify compliance with
those terms and conditions identified
in your approved SAP, COP, or GAP, as

required under § 585.615(c), § 585.633(b),
or § 585.653(c).
§ 585.801 How must I conduct my approved activities to protect marine
mammals, threatened and endangered species, and designated critical habitat?
(a) You must not conduct any activity under your lease or grant that may
affect threatened or endangered species
or that may affect designated critical
habitat of such species until the appropriate level of consultation is conducted, as required under the ESA, as
amended (16 U.S.C. 1531 et seq.), to ensure that your actions are not likely to
jeopardize a threatened or endangered
species and are not likely to destroy or
adversely modify designated critical
habitat.
(b) You must not conduct any activity under your lease or grant that may
result in an incidental taking of marine mammals until the appropriate
authorization has been issued under
the Marine Mammal Protection Act of
1972 (MMPA) as amended (16 U.S.C. 1361
et seq.).
(c) If there is reason to believe that a
threatened or endangered species may
be present while you conduct your
BOEM approved activities or may be
affected by the direct or indirect effects of your actions:
(1) You must notify us that endangered or threatened species may be
present in the vicinity of the lease or
grant or may be affected by your actions; and
(2) We will consult with appropriate
State and Federal fish and wildlife
agencies and, after consultation, shall
identify whether, and under what conditions, you may proceed.
(d) If there is reason to believe that
designated critical habitat of a threatened or endangered species may be affected by the direct or indirect effects
of your BOEM approved activities:
(1) You must notify us that designated critical habitat of a threatened
or endangered species in the vicinity of
the lease or grant may be affected by
your actions; and
(2) We will consult with appropriate
State and Federal fish and wildlife
agencies and, after consultation, shall
identify whether, and under what conditions, you may proceed.

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Ocean Energy Management, Interior

§ 585.803

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(e) If there is reason to believe that
marine mammals may be incidentally
taken as a result of your proposed activities:
(1) You must agree to secure an authorization from National Oceanic and
Atmospheric Administration (NOAA)
or the U.S. Fish and Wildlife Service
(FWS) for incidental taking, including
taking by harassment, that may result
from your actions; and
(2) You must comply with all measures required by the NOAA or FWS, including measures to affect the least
practicable impact on such species and
its habitat and to ensure no immitigable adverse impact on the availability of the species for subsistence
use.
(f) Submit to us:
(1) Measures designed to avoid or
minimize adverse effects and any potential incidental take of the endangered or threatened species or marine
mammals;
(2) Measures designed to avoid likely
adverse modification or destruction of
designated critical habitat of such endangered or threatened species; and
(3) Your agreement to monitor for
the incidental take of the species and
adverse effects on the critical habitat,
and provide the results of the monitoring to BOEM as required; and
(4) Your agreement to perform any
relevant terms and conditions of the
Incidental Take Statement that may
result from the ESA consultation.
(5) Your agreement to perform any
relevant mitigation measures under an
MMPA incidental take authorization.
§ 585.802 What must I do if I discover a
potential archaeological resource
while conducting my approved activities?
(a) If you, your subcontractors, or
any agent acting on your behalf discovers a potential archaeological resource while conducting construction
activities, or any other activity related
to your project, you must:
(1) Immediately halt all seafloor-disturbing activities within the area of
the discovery;
(2) Notify BOEM of the discovery
within 72 hours; and
(3) Keep the location of the discovery
confidential and not take any action
that may adversely affect the archae-

ological resource until we have made
an evaluation and instructed you on
how to proceed.
(b) We may require you to conduct
additional investigations to determine
if the resource is eligible for listing in
the National Register of Historic
Places under 36 CFR 60.4. We will do
this if:
(1) The site has been impacted by
your project activities; or
(2) Impacts to the site or to the area
of potential effect cannot be avoided.
(c) If investigations under paragraph
(b) of this section indicate that the resource is potentially eligible for listing
in the National Register of Historic
Places, we will tell you how to protect
the resource, or how to mitigate adverse effects to the site.
(d) If we incur costs in protecting the
resource, under section 110(g) of the
NHPA, we may charge you reasonable
costs for carrying out preservation responsibilities under the OCS Lands
Act.
§ 585.803 How must I conduct my approved activities to protect essential fish habitats identified and described under the Magnuson-Stevens Fishery Conservation and
Management Act?
(a) If, during the conduct of your approved activities, BOEM finds that essential fish habitat or habitat areas of
particular concern may be adversely
affected by your activities, BOEM must
consult with National Marine Fisheries
Service.
(b) Any conservation recommendations adopted by BOEM to avoid or
minimize adverse affects on Essential
Fish Habitat will be incorporated as
terms and conditions in the lease and
must be adhered to by the applicant.
BOEM may require additional surveys
to define boundaries and avoidance distances.
(c) If required, BOEM will specify the
survey methods and instrumentations
for conducting the biological survey
and will specify the contents of the biological report.

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§§ 585.804–585.809
§§ 585.804–585.809

30 CFR Ch. V (7–1–17 Edition)

[Reserved]

SAFETY MANAGEMENT SYSTEMS
§ 585.810 What must I include in my
Safety Management System?
You must submit a description of the
Safety Management System you will
use with your COP (provided under
§ 585.627(d)) and, when required by this
part, your SAP (as provided in
§ 585.614(b)) or GAP (as provided in
§ 585.651). You must describe:
(a) How you will ensure the safety of
personnel or anyone on or near your facilities;
(b) Remote monitoring, control, and
shut down capabilities;
(c) Emergency response procedures;
(d) Fire suppression equipment, if
needed;
(e) How and when you will test your
Safety Management System; and
(f) How you will ensure personnel
who operate your facilities are properly trained.
§ 585.811 When must I follow my Safety Management System?
Your Safety Management System
must be fully functional when you
begin activities described in your approved COP, SAP, or GAP. You must
conduct all activities described in your
approved COP, SAP, or GAP in accordance with the Safety Management System you described, as required by
§ 585.810.
§ 585.812

[Reserved]

MAINTENANCE AND SHUTDOWNS

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§ 585.813 When do I have to report removing equipment from service?
(a) The removal of any equipment
from service may result in BOEM applying remedies, as provided in this
part, when such equipment is necessary
for implementing your approved plan.
Such remedies may include an order
from BOEM requiring you to replace or
remove such equipment or facilities.
(b)(1) You must report within 24
hours when equipment necessary for
implementing your approved plan is removed from service for more than 12
hours. If you provide an oral notification, you must submit a written con-

firmation of this notice within 3 business days, as required by § 585.105(c);
(2) You do not have to report removing equipment necessary for implementing your plan if the removal is
part of planned maintenance or repair
activities; and
(3) You must notify BOEM when you
return the equipment to service.
§ 585.814

[Reserved]

EQUIPMENT FAILURE AND ADVERSE
ENVIRONMENTAL EFFECTS
§ 585.815 What must I do if I have facility damage or an equipment failure?
(a) If you have facility damage or the
failure of a pipeline, cable, or other
equipment necessary for you to implement your approved plan, you must
make repairs as soon as practicable. If
you have a major repair, you must submit a report of the repairs to BOEM, as
required in § 585.711.
(b) If you are required to report any
facility damage or failure under
§ 585.831, BOEM may require you to revise your SAP, COP, or GAP to describe how you will address the facility
damage or failure as required by
§ 585.634 (COP), § 585.617 (SAP), § 585.655
(GAP). You must submit a report of
the repairs to BOEM, as required in
§ 585.703.
(c) BOEM may require that you analyze cable, pipeline, or facility damage
or failure to determine the cause. If requested by BOEM, you must submit a
comprehensive written report of the
failure or damage to BOEM as soon as
available.
§ 585.816 What must I do if environmental or other conditions adversely affect a cable, pipeline, or
facility?
If environmental or other conditions
adversely affect a cable, pipeline, or facility so as to endanger the safety or
the environment, you must:
(a) Submit a plan of corrective action
to BOEM within 30 days of the discovery of the adverse effect.
(b) Take remedial action as described
in your corrective action plan.
(c) Submit to the BOEM a report of
the remedial action taken within 30
days after completion.

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Ocean Energy Management, Interior
§§ 585.817–585.819

§ 585.825

[Reserved]

INSPECTIONS AND ASSESSMENT
§ 585.820 Will BOEM conduct inspections?
BOEM will inspect OCS facilities and
any vessels engaged in activities authorized under this part. We conduct
these inspections:
(a) To verify that you are conducting
activities in compliance with subsection 8(p) of the OCS Lands Act; the
regulations in this part; the terms,
conditions, and stipulations of your
lease or grant; approved plans; and
other applicable laws and regulations.
(b) To determine whether proper safety equipment has been installed and is
operating properly according to your
Safety Management System, as required in § 585.810.
§ 585.821 Will BOEM conduct scheduled and unscheduled inspections?
BOEM will conduct both scheduled
and unscheduled inspections.
§ 585.822 What must I do when BOEM
conducts an inspection?

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(a) When BOEM conducts an inspection, you must:
(1) Provide access to all facilities on
your lease (including your project easement) or grant; and
(2) Make the following available for
BOEM to inspect:
(i) The area covered under a lease,
ROW grant, or RUE grant;
(ii) All improvements, structures,
and fixtures on these areas; and
(iii) All records of design, construction, operation, maintenance, repairs,
or investigations on or related to the
area.
(b) You must retain these records in
paragraph (a)(2)(iii) of this section
until BOEM releases your financial assurance under § 585.534 and provide
them to BOEM upon request, within
the time period specified by BOEM.
(c) You must demonstrate to the inspector how you are in compliance
with your Safety Management System.
§ 585.823 Will BOEM reimburse me for
my expenses related to inspections?
Upon request, BOEM will reimburse
you for food, quarters, and transpor-

tation that you provide for our representatives while they inspect your
lease or grant facilities and associated
activities. You must send us your reimbursement request within 90 days of
the inspection.
§ 585.824 How must I conduct self-inspections?
(a) You must develop a comprehensive annual self-inspection plan covering all of your facilities. You must
keep this plan wherever you keep your
records and make it available to BOEM
inspectors upon request. Your plan
must specify:
(1) The type, extent, and frequency of
in-place inspections that you will conduct for both the above-water and the
below-water structures of all facilities
and pertinent components of the mooring systems for any floating facilities;
and
(2) How you are monitoring the corrosion protection for both the abovewater and below-water structures.
(b) You must submit a report annually to us no later than November 1
that must include:
(1) A list of facilities inspected in the
preceding 12 months;
(2) The type of inspection employed,
(i.e., visual, magnetic particle, ultrasonic testing); and
(3) A summary of the inspection indicating what repairs, if any, were needed and the overall structural condition
of the facility.
§ 585.825
ties?

When must I assess my facili-

(a) You must perform an assessment
of the structure, when needed, based on
the platform assessment initiators listed in sections 17.2.1–17.2.5 of API RP
2A–WSD, Recommended Practice for
Planning, Designing and Constructing
Fixed Offshore Platforms—Working
Stress Design (as incorporated by reference in § 585.115).
(b) You must initiate mitigation actions for structures that do not pass
the assessment process of API RP 2A–
WSD.
(c) You must perform other assessments as required by BOEM.

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§§ 585.826–585.829
§§ 585.826–585.829

30 CFR Ch. V (7–1–17 Edition)

[Reserved]

INCIDENT REPORTING AND INVESTIGATION
§ 585.830 What are my incident reporting requirements?
(a) You must report all incidents listed in § 585.831 to BOEM, according to
the reporting requirements for these
incidents in §§ 585.832 and 585.833.
(b) These reporting requirements
apply to incidents that occur on the
area covered by your lease or grant
under this part and that are related to
activities resulting from the exercise
of your rights under your lease or
grant under this part.
(c) Nothing in this subpart relieves
you from providing notices and reports
of incidents that may be required by
other regulatory agencies.
(d) You must report all spills of oil or
other liquid pollutants in accordance
with 30 CFR 254.46.

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§ 585.831 What incidents must I report,
and when must I report them?
(a) You must report the following incidents to us immediately via oral
communication, and provide a written
follow-up report (paper copy or electronically transmitted) within 15 business days after the incident:
(1) Fatalities;
(2) Incidents that require the evacuation of person(s) from the facility to
shore or to another offshore facility;
(3) Fires and explosions;
(4) Collisions that result in property
or equipment damage greater than
$25,000 (Collision means the act of a
moving vessel (including an aircraft)
striking another vessel, or striking a
stationary vessel or object. Property or
equipment damage means the cost of
labor and material to restore all affected items to their condition before
the damage, including, but not limited
to, the OCS facility, a vessel, a helicopter, or the equipment. It does not
include the cost of salvage, cleaning,
dry docking, or demurrage);
(5) Incidents involving structural
damage to an OCS facility that is severe enough so that activities on the
facility cannot continue until repairs
are made;
(6) Incidents involving crane or personnel/material handling activities, if

they result in a fatality, injury, structural damage, or significant environmental damage;
(7) Incidents that damage or disable
safety systems or equipment (including
firefighting systems);
(8) Other incidents resulting in property or equipment damage greater than
$25,000; and
(9) Any other incidents involving significant environmental damage, or
harm.
(b) You must provide a written report
of the following incidents to us within
15 days after the incident:
(1) Any injuries that result in the injured person not being able to return to
work or to all of their normal duties
the day after the injury occurred; and
(2) All incidents that require personnel on the facility to muster for
evacuation for reasons not related to
weather or drills.
§ 585.832 How do I report incidents requiring immediate notification?
For an incident requiring immediate
notification under § 585.831(a), you must
notify BOEM verbally after aiding the
injured and stabilizing the situation.
Your verbal communication must provide the following information:
(a) Date and time of occurrence;
(b) Identification and contact information for the lessee, grant holder, or
operator;
(c) Contractor, and contractor representative’s name and telephone number (if a contractor is involved in the
incident or injury/fatality);
(d) Lease number, OCS area, and
block;
(e) Platform/facility name and number, or cable or pipeline segment number;
(f) Type of incident or injury/fatality;
(g) Activity at time of incident; and
(h) Description of the incident, damage, or injury/fatality.
§ 585.833 What are the reporting requirements for incidents requiring
written notification?
(a) For any incident covered under
§ 585.831, you must submit a written report within 15 days after the incident
to BOEM. The report must contain the
following information:
(1) Date and time of occurrence;

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Ocean Energy Management, Interior

§ 585.902

(2) Identification and contact information for each lessee, grant holder, or
operator;
(3) Name and telephone number of
the contractor and the contractor’s
representative, if a contractor is involved in the incident or injury;
(4) Lease number, OCS area, and
block;
(5) Platform/facility name and number, or cable or pipeline segment number;
(6) Type of incident or injury;
(7) Activity at time of incident;
(8) Description of incident, damage,
or injury (including days away from
work, restricted work, or job transfer),
and any corrective action taken; and
(9) Property or equipment damage estimate (in U.S. dollars).
(b) You may submit a report or form
prepared for another agency in lieu of
the written report required by paragraph (a) of this section if the report or
form contains all required information.
(c) BOEM may require you to submit
additional information about an incident on a case-by-case basis.

Subpart I—Decommissioning
DECOMMISSIONING OBLIGATIONS AND
REQUIREMENTS

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§ 585.900 Who must meet the decommissioning obligations in this subpart?
(a) Lessees are jointly and severally
responsible for meeting decommissioning obligations for facilities on
their leases, including all obstructions,
as the obligations accrue and until
each obligation is met.
(b) Grant holders are jointly and severally liable for meeting decommissioning obligations for facilities on
their grant, including all obstructions,
as the obligations accrue and until
each obligation is met.
§ 585.901 When do I accrue decommissioning obligations?
You accrue decommissioning obligations when you are or become a lessee
or grant holder, and you either install,
construct, or acquire by a BOEM-approved assignment a facility, cable, or
pipeline, or you create an obstruction
to other uses of the OCS.

§ 585.902 What are the general requirements for decommissioning for facilities authorized under my SAP,
COP, or GAP?
(a) Except as otherwise authorized by
BOEM under § 585.909, within 2 years
following termination of a lease or
grant, you must:
(1) Remove or decommission all facilities, projects, cables, pipelines, and
obstructions;
(2) Clear the seafloor of all obstructions created by activities on your
lease, including your project easement,
or grant, as required by the BOEM.
(b) Before decommissioning the facilities under your SAP, COP, or GAP,
you must submit a decommissioning
application and receive approval from
the BOEM.
(c) The approval of the decommissioning concept in the SAP, COP, or
GAP is not an approval of a decommissioning application. However, you may
submit your complete decommissioning application simultaneously
with the SAP, COP, or GAP so that it
may undergo appropriate technical and
regulatory reviews at that time.
(d) Following approval of your decommissioning application, you must
submit a decommissioning notice
under § 585.908 to BOEM at least 60 days
before commencing decommissioning
activities.
(e) If you, your subcontractors, or
any agent acting on your behalf discover any archaeological resource
while conducting decommissioning activities, you must immediately halt
bottom-disturbing activities within
1,000 feet of the discovery and report
the discovery to us within 72 hours. We
will inform you how to conduct investigations to determine if the resource
is significant and how to protect it.
You, your subcontractors, or any agent
acting on your behalf must keep the location of the discovery confidential
and must not take any action that may
adversely affect the archaeological resource until we have made an evaluation and told you how to proceed.
(f) Provide BOEM with documentation of any coordination efforts you
have made with the affected States,
local, and Tribal governments.

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§ 585.903

30 CFR Ch. V (7–1–17 Edition)

§ 585.906 What must my decommissioning application include?

(b) Identification and description of
the facilities, cables, or pipelines you
plan to remove or propose to leave in
place, as provided in § 585.909.
(c) A proposed decommissioning
schedule for your lease, ROW grant, or
RUE grant, including the expiration or
relinquishment date and proposed
month and year of removal.
(d) A description of the removal
methods and procedures, including the
types of equipment, vessels, and moorings (i.e., anchors, chains, lines, etc.)
you will use.
(e) A description of your site clearance activities.
(f) Your plans for transportation and
disposal (including as an artificial reef)
or salvage of the removed facilities, cables, or pipelines and any required approvals.
(g) A description of those resources,
conditions, and activities that could be
affected by or could affect your proposed decommissioning activities. The
description must be as detailed as necessary to assist BOEM in complying
with the NEPA and other relevant Federal laws.
(h) The results of any recent biological surveys conducted in the vicinity of
the structure and recent observations
of turtles or marine mammals at the
structure site.
(i) Mitigation measures you will use
to protect archaeological and sensitive
biological features during removal activities.
(j) A description of measures you will
take to prevent unauthorized discharge
of pollutants, including marine trash
and debris, into the offshore waters.
(k) A statement of whether or not
you will use divers to survey the area
after removal to determine any effects
on marine life.

You must provide one paper copy and
one electronic copy of the application.
Include the following information in
the application, as applicable.
(a) Identification of the applicant including:
(1) Lease operator, ROW grant holder, or RUE grant holder;
(2) Address;
(3) Contact person and telephone
number; and
(4) Shore base.

§ 585.907 How will BOEM process my
decommissioning application?
(a) Based upon your inclusion of all
the information required by § 585.906,
BOEM will compare your decommissioning application with the decommissioning general concept in your approved SAP, COP, or GAP to determine
what technical and environmental reviews are needed.
(b) You will likely have to revise
your SAP, COP, or GAP, and BOEM

§ 585.903 What are the requirements
for decommissioning FERC-licensed
hydrokinetic facilities?
You must comply with the decommissioning
requirements
in
your
BOEM-issued lease. If you fail to comply with the decommissioning requirements of your lease then:
(a) BOEM may call for the forfeiture
of your bond or other financial assurance;
(b) You remain liable for removal or
disposal costs and responsible for accidents or damages that might result
from such failure; and
(c) BOEM may take enforcement action under § 585.400 of this part.
§ 585.904 Can I request a departure
from the decommissioning requirements?
You may request a departure from
the
decommissioning
requirements
under § 585.103.
DECOMMISSIONING APPLICATIONS
§ 585.905 When must I submit my decommissioning application?

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You must submit your decommissioning application upon the earliest of
the following dates:
(a) 2 years before the expiration of
your lease.
(b) 90 days after completion of your
commercial activities on a commercial
lease.
(c) 90 days after completion of your
approved activities under a limited
lease on a ROW grant or RUE grant.
(d) 90 days after cancellation, relinquishment, or other termination of
your lease or grant.

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Ocean Energy Management, Interior

§ 585.910

will begin the appropriate NEPA analysis and other regulatory reviews as required, if BOEM determines that your
decommissioning application would:
(1) Result in a significant change in
the impacts previously identified and
evaluated in your SAP, COP, or GAP;
(2) Require any additional Federal
permits; or
(3) Propose activities not previously
identified and evaluated in your SAP,
COP, or GAP.
(c) During the review process, we
may request additional information if
we determine that the information provided is not sufficient to complete the
review and approval process.
(d) Upon completion of the technical
and environmental reviews, we may approve, approve with conditions, or disapprove your decommissioning application.
(e) If BOEM disapproves your decommissioning application, you must resubmit your application to address the
concerns identified by BOEM.

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§ 585.908 What must I include in my
decommissioning notice?
(a) The decommissioning notice is
distinct from your decommissioning
application and may only be submitted
following approval of your decommissioning application, as described in
§§ 585.905 through 585.907. You must submit a decommissioning notice at least
60 days before you plan to begin decommissioning activities.
(b) Your decommissioning notice
must include:
(1) A description of any changes to
the approved removal methods and procedures in your approved decommissioning application, including changes
to the types of vessels and equipment
you will use; and
(2) An updated decommissioning
schedule.
(c) We will review your decommissioning notice and may require you to
resubmit a decommissioning application if BOEM determines that your decommissioning activities would:
(1) Result in a significant change in
the impacts previously identified and
evaluated;
(2) Require any additional Federal
permits; or

(3) Propose activities not previously
identified and evaluated.
FACILITY REMOVAL
§ 585.909 When may BOEM authorize
facilities to remain in place following termination of a lease or
grant?
(a) In your decommissioning application, you may request that certain facilities authorized in your lease or
grant remain in place for other activities authorized in this part, elsewhere
in this subchapter, or by other applicable Federal laws.
(b) BOEM may approve such requests
on a case-by-case basis considering the
following:
(1) Potential impacts to the marine
environment;
(2) Competing uses of the OCS;
(3) Impacts on marine safety and National defense;
(4) Maintenance of adequate financial
assurance; and
(5) Other factors determined by the
Director.
(c) Except as provided in paragraph
(d) of this section, if BOEM authorizes
facilities to remain in place, the
former lessee or grantee under this
part remains jointly and severally liable for decommissioning the facility
unless satisfactory evidence is provided
to BOEM showing that another party
has assumed that responsibility and
has secured adequate financial assurances.
(d) In your decommissioning application, you may request that certain facilities authorized in your lease or
grant be converted to an artificial reef
or otherwise toppled in place. BOEM
will evaluate all such requests.
§ 585.910 What must I do when I remove my facility?
(a) You must remove all facilities to
a depth of 15 feet below the mudline,
unless otherwise authorized by BOEM.
(b) Within 60 days after you remove a
facility, you must verify to BOEM that
you have cleared the site.

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§ 585.911
§ 585.911

30 CFR Ch. V (7–1–17 Edition)
[Reserved]

DECOMMISSIONING REPORT
§ 585.912 After I remove a facility,
cable, or pipeline, what information
must I submit?
Within 60 days after you remove a facility, cable, or pipeline, you must submit a written report to BOEM that includes the following:
(a) A summary of the removal activities, including the date they were completed;
(b) A description of any mitigation
measures you took; and
(c) If you used explosives, a statement signed by your authorized representative that certifies that the
types and amount of explosives you
used in removing the facility were consistent with those in the approved decommissioning application.

§ 585.913 What happens if I fail to comply with my approved decommissioning application?
If you fail to comply with your approved decommissioning plan or application:
(a) BOEM may call for the forfeiture
of your bond or other financial assurance;
(b) You remain liable for removal or
disposal costs and responsible for accidents or damages that might result
from such failure; and
(c) BOEM may take enforcement action under § 585.400.

Subpart J—Rights of Use and
Easement for Energy- and
Marine-Related
Activities
Using Existing OCS Facilities
REGULATED ACTIVITIES

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does

§§ 585.1001–585.1003

[Reserved]

REQUESTING AN ALTERNATE USE RUE

COMPLIANCE WITH AN APPROVED
DECOMMISSIONING APPLICATION

§ 585.1000 What activities
subpart regulate?

or any other applicable Federal statute. Activities authorized under any
other part of this subchapter or under
any other Federal law that use (or propose to use) an existing OCS facility
are not subject to this subpart.
(b) BOEM will issue an Alternate Use
RUE for activities authorized under
this subpart.
(c) At the discretion of the Director,
an Alternate Use RUE may:
(1) Permit alternate use activities to
occur at an existing facility that is
currently in use under an approved
OCS lease; or
(2) Limit alternate use activities at
the existing facility until after previously authorized activities at the facility have ceased and the OCS lease
terminates.

this

(a) This subpart provides the general
provisions for authorizing and regulating activities that use (or propose to
use) an existing OCS facility for
energy- or marine-related purposes,
that are not otherwise authorized
under any other part of this subchapter

§ 585.1004 What must I do before I request an Alternate Use RUE?
If you are not the owner of the existing facility on the OCS and the lessee
of the area in which the facility is located, you must contact the lessee and
owner of the facility and reach a preliminary agreement as to the proposed
activity for the use of the existing facility.
§ 585.1005 How do I request an Alternate Use RUE?
To request an Alternate Use RUE,
you must submit to BOEM all of the
following:
(a) The name, address, e-mail address, and phone number of an authorized representative.
(b) A summary of the proposed activities for the use of an existing OCS
facility, including:
(1) The type of activities that would
involve the use of the existing OCS facility;
(2) A description of the existing OCS
facility, including a map providing its
location on the lease block;
(3) The names of the owner of the existing OCS facility, the operator, the
lessee, and any owner of operating
rights on the lease at which the facility is located;

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Ocean Energy Management, Interior

§ 585.1007

(4) A description of additional structures or equipment that will be required to be located on or in the vicinity of the existing OCS facility in connection with the proposed activities;
(5) A statement indicating whether
any of the proposed activities are intended to occur before existing activities on the OCS facility have ceased;
and
(6) A statement describing how existing activities at the OCS facility will
be affected if proposed activities are to
occur at the same time as existing activities at the OCS facility.
(c) A statement affirming that the
proposed activities sought to be approved under this subpart are not otherwise authorized by other provisions
in this subchapter or any other Federal
law.
(d) Evidence that you meet the requirements of § 585.106, as required by
§ 585.107.
(e) The signatures of the applicant,
the owner of the existing OCS facility,
and the lessee of the area in which the
existing facility is located.

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§ 585.1006 How will BOEM decide
whether to issue an Alternate Use
RUE?
(a) We will consider requests for an
Alternate Use RUE on a case-by-case
basis. In considering such requests, we
will consult with relevant Federal
agencies and evaluate whether the proposed activities involving the use of an
existing OCS facility can be conducted
in a manner that:
(1) Ensures safety and minimizes adverse effects to the coastal and marine
environments, including their physical,
atmospheric, and biological components, to the extent practicable;
(2) Does not inhibit or restrain orderly development of OCS mineral or
energy resources; and
(3) Avoids serious harm or damage to,
or waste of, any natural resource (including OCS mineral deposits and oil,
gas, and sulphur resources in areas
leased or not leased), any life (including fish and other aquatic life), or property (including sites, structures, or objects of historical or archaeological
significance);
(4) Is otherwise consistent with subsection 8(p) of the OCS Lands Act; and

(5) BOEM can effectively regulate.
(b) Based on the evaluation that we
perform under paragraph (a) of this
section, the BOEM may authorize or
reject, or authorize with modifications
or stipulations, the proposed activity.
§ 585.1007 What process will BOEM use
for competitively offering an Alternate Use RUE?
(a) An Alternate Use RUE must be
issued on a competitive basis unless
BOEM determines, after public notice
of the proposed Alternate Use RUE,
that there is no competitive interest.
(b) We will issue a public notice in
the FEDERAL REGISTER to determine if
there is competitive interest in using
the proposed facility for alternate use
activities. BOEM will specify a time
period for members of the public to express competitive interest.
(c) If we receive indications of competitive interest within the published
timeframe, we will proceed with a competitive offering. As part of such competitive offering, each competing applicant must submit a description of the
types of activities proposed for the existing facility, as well as satisfactory
evidence that the competing applicant
qualifies to hold a lease or grant on the
OCS, as required in §§ 585.106 and
585.107, by a date we specify. We may
request additional information from
competing applicants, as necessary, to
adequately evaluate the competing
proposals.
(d) We will evaluate all competing
proposals to determine whether:
(1) The proposed activities are compatible with existing activities at the
facility; and
(2) We have the expertise and resources available to regulate the activities effectively.
(e) We will evaluate all proposals
under the requirements of NEPA,
CZMA, and other applicable laws.
(f) Following our evaluation, we will
select one or more acceptable proposals
for activities involving the alternate
use of an existing OCS facility, notify
the competing applicants, and submit
each acceptable proposal to the lessee
and owner of the existing OCS facility.
If the lessee and owner of the facility
agree to accept a proposal, we will proceed to issue an Alternate Use RUE. If

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§§ 585.1008–585.1009

30 CFR Ch. V (7–1–17 Edition)

the lessee and owner of the facility are
unwilling to accept any of the proposals that we deem acceptable, we will
not issue an Alternate Use RUE.
§§ 585.1008–585.1009

[Reserved]

ALTERNATE USE RUE ADMINISTRATION
§ 585.1010 How long may I conduct activities under an Alternate Use
RUE?
(a) We will establish on a case-bycase basis, and set forth in the Alternate Use RUE, the length of time for
which you are authorized to conduct
activities approved in your Alternate
Use RUE instrument.
(b) In establishing this term, BOEM
will consider the size and scale of the
proposed alternate use activities, the
type of alternate use activities, and
any other relevant considerations.
(c) BOEM may authorize renewal of
Alternate Use RUEs at its discretion.
§ 585.1011 What payments are required
for an Alternate Use RUE?
We will establish rental or other payments for an Alternate Use RUE on a
case-by-case basis, as set forth in the
Alternate Use RUE grant, depending on
our assessment of the following factors:
(a) The effect on the original OCS
Lands Act approved activity;
(b) The size and scale of the proposed
alternate use activities;
(c) The income, if any, expected to be
generated from the proposed alternate
use activities; and
(d) The type of alternate use activities.

pmangrum on DSK3GDR082PROD with CFR

§ 585.1012 What financial assurance is
required for an Alternate Use RUE?
(a) The holder of an Alternate Use
RUE will be required to secure financial assurances in an amount determined by BOEM that is sufficient to
cover all obligations under the Alternate Use RUE, including decommissioning obligations, and must retain
such financial assurance amounts until
all obligations have been fulfilled, as
determined by BOEM.
(b) We may revise financial assurance
amounts, as necessary, to ensure that
there is sufficient financial assurance

to secure all obligations under the Alternate Use RUE.
(c) We may reduce the amount of the
financial assurance that you must retain if it is not necessary to cover existing obligations under the Alternate
Use RUE.
§ 585.1013 Is an Alternate Use RUE assignable?
(a) BOEM may authorize assignment
of an Alternate Use RUE.
(b) To request assignment of an Alternate Use RUE, you must submit a
written request for assignment that includes the following information:
(1) BOEM-assigned Alternate Use
RUE number;
(2) The names of both the assignor
and the assignee, if applicable;
(3) The names and telephone numbers
of the contacts for both the assignor
and the assignee;
(4) The names, titles, and signatures
of the authorizing officials for both the
assignor and the assignee;
(5) A statement affirming that the
owner of the existing OCS facility and
lessee of the lease in which the facility
is located approve of the proposed assignment and assignee;
(6) A statement that the assignee
agrees to comply with and to be bound
by the terms and conditions of the Alternate Use RUE;
(7) Evidence required by § 585.107 that
the assignee satisfies the requirements
of § 585.106; and
(8) A statement on how the assignee
will comply with the financial assurance requirements set forth in the Alternate Use RUE.
(c) The assignment takes effect on
the date we approve your request.
(d) The assignor is liable for all obligations that accrue under an Alternate
Use RUE before the date we approve
your assignment request. An assignment approval by BOEM does not relieve the assignor of liability for accrued obligations that the assignee, or
a subsequent assignee, fails to perform.
(e) The assignee and each subsequent
assignee are liable for all obligations
that accrue under an Alternate Use
RUE after the date we approve the assignment request.

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§ 585.1018

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§ 585.1014 When will BOEM suspend
an Alternate Use RUE?
(a) BOEM may suspend an Alternate
Use RUE if:
(1) Necessary to comply with judicial
decrees;
(2) Continued activities pursuant to
the Alternate Use RUE pose an imminent threat of serious or irreparable
harm or damage to natural resources;
life (including human and wildlife);
property; the marine, coastal, or
human environment; or sites, structures, or objects of historical or archaeological significance;
(3) The suspension is necessary for
reasons of National security or defense;
or
(4) We have suspended or temporarily
prohibited operation of the existing
OCS facility that is subject to the Alternate Use RUE, and have determined
that continued activities under the Alternate Use RUE are unsafe or cause
undue interference with the operation
of the original OCS Lands Act approved
activity.
(b) A suspension will extend the term
of your Alternate Use RUE grant for
the period of the suspension.
§ 585.1015 How do I relinquish an Alternate Use RUE?
(a) You may voluntarily surrender an
Alternate Use RUE by submitting a
written request to us that includes the
following:
(1) The name, address, e-mail address,
and phone number of an authorized
representative;
(2) The reason you are requesting relinquishment of the Alternate Use
RUE;
(3) BOEM-assigned Alternate Use
RUE number;
(4) The name of the associated OCS
facility, its owner, and the lessee for
the lease in which the OCS facility is
located;
(5) The name, title, and signature of
your authorizing official (which must
match exactly the name, title, and signature in the BOEM qualification
records); and
(6) A statement that you will adhere
to the decommissioning requirements
in the Alternate Use RUE.
(b) We will not approve your relinquishment request until you have paid

all outstanding rentals (or other payments) and fines.
(c) The relinquishment takes effect
on the date we approve your request.
§ 585.1016 When will an Alternate Use
RUE be cancelled?
The Secretary may cancel an Alternate Use RUE if it is determined, after
notice and opportunity to be heard:
(a) You no longer qualify to hold an
Alternate Use RUE;
(b) You failed to provide any additional financial assurance required by
BOEM, replace or provide additional
coverage for a de-valued bond, or replace a lapsed or forfeited bond within
the prescribed time period;
(c) Continued activity under the Alternate Use RUE is likely to cause serious harm or damage to natural resources; life (including human and
wildlife); property; the marine, coastal,
or human environment; or sites, structures, or objects of historical or archaeological significance;
(d) Continued activity under the Alternate Use RUE is determined to be
adversely impacting the original OCS
Lands Act approved activities on the
existing OCS facility;
(e) You failed to comply with any of
the terms and conditions of your approved Alternate Use RUE or your approved plan; or
(f) You otherwise failed to comply
with applicable laws or regulations.
§ 585.1017

[Reserved]

DECOMMISSIONING AN ALTERNATE USE
RUE
§ 585.1018 Who is responsible for decommissioning an OCS facility subject to an Alternate Use RUE?
(a) The holder of an Alternate Use
RUE is responsible for all decommissioning obligations that accrue following the issuance of the Alternate
Use RUE and which pertain to the Alternate Use RUE.
(b) The lessee under the lease originally issued under 30 CFR part 250 will
remain responsible for decommissioning obligations that accrued before
issuance of the Alternate Use RUE, as
well as for decommissioning obligations that accrue following issuance of
the Alternate Use RUE to the extent

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§ 585.1019

30 CFR Ch. V (7–1–17 Edition)

associated with continued activities
authorized under other parts of this
title.

pmangrum on DSK3GDR082PROD with CFR

§ 585.1019 What are the decommissioning requirements for an Alternate Use RUE?
(a) Decommissioning requirements
will be determined by BOEM on a caseby-case basis, and will be included in
the terms of each Alternate Use RUE.

(b) Decommissioning activities must
be completed within 1 year of termination of the Alternate Use RUE.
(c) If you fail to satisfy all decommissioning requirements within the
prescribed time period, we will call for
the forfeiture of your bond or other financial guarantee, and you will remain
liable for all accidents or damages that
might result from such failure.

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