30 Cfr 553

Ocean Energy Management, Interior

Pt. 553

to the penalties described in section 24
of the Act (43 U.S.C. 1350).
(2) In any action commenced against
the Federal Government or a State
pursuant to paragraph (b)(1) of this section, the Federal Government or such
State, as the case may be, may not
raise as a defense any claim of sovereign immunity, or any claim that the
employee who revealed the privileged
or proprietary data or information
which is the basis of such suit was acting outside the scope of the person’s
employment in revealing such data or
information.
(c) If the Director finds that any
State cannot or does not comply with
the conditions described in the agreement entered into pursuant to paragraph (a)(4) of this section, the Director shall thereafter withhold transmittal and deny access for inspection
of privileged or proprietary data or information to such State until the Director finds that such State can and
will comply with those conditions.

553.22 How do I apply to use self-insurance
as OSFR evidence?
553.23 What information must I submit to
support my net worth demonstration?
553.24 When I submit audited annual financial statements to verify my net worth,
what standards must they meet?
553.25 What financial test procedures must I
use to determine the amount of self-insurance allowed as OSFR evidence based
on net worth?
553.26 What information must I submit to
support my unencumbered assets demonstration?
553.27 When I submit audited annual financial
statements
to
verify
my
unencumbered assets, what standards
must they meet?
553.28 What financial test procedures must I
use to evaluate the amount of self-insurance allowed as OSFR evidence based on
unencumbered assets?
553.29 How can I use insurance as OSFR evidence?
553.30 How can I use an indemnity as OSFR
evidence?
553.31 How can I use a surety bond as OSFR
evidence?
553.32 Are there alternative methods to
demonstrate OSFR?

PART 553—OIL SPILL FINANCIAL
RESPONSIBILITY FOR OFFSHORE
FACILITIES

Subpart D—Requirements for Submitting
OSFR Information

Subpart A—General
Sec.
553.1 What is the purpose of this part?
553.3 How are the terms used in this regulation defined?
553.5 What is the authority for collecting
Oil
Spill
Financial
Responsibility
(OSFR) information?

Subpart B—Applicability and Amount of
OSFR
553.10 What facilities does this part cover?
553.11 Who must demonstrate OSFR?
553.12 May I ask BOEM for a determination
of whether I must demonstrate OSFR?
553.13 How much OSFR must I demonstrate?
553.14 How do I determine the worst case
oil-spill discharge volume?
553.15 What are my general OSFR compliance responsibilities?

553.40 What OSFR evidence must I submit
to BOEM?
553.41 What terms must I include in my
OSFR evidence?
553.42 How can I amend my list of COFs?
553.43 When is my OSFR demonstration or
the amendment to my OSFR demonstration effective?
553.44 [Reserved]
553.45 Where do I send my OSFR evidence?

Subpart E—Revocation and Penalties
553.50 How can BOEM refuse or invalidate
my OSFR evidence?
553.51 What are the penalties for not complying with this part?

Subpart F—Claims for Oil-Spill Removal
Costs and Damages
553.60 To whom may I present a claim?
553.61 When is a guarantor subject to direct
action for claims?
553.62 What are the designated applicant’s
notification obligations regarding a
claim?

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Subpart C—Methods for Demonstrating
OSFR
553.20 What methods may I use to demonstrate OSFR?
553.21 How can I use self-insurance as OSFR
evidence?

Subpart G—Limit of Liability for Offshore
Facilities
553.700 What is the scope of this subpart?
553.701 To which entities does this subpart
apply?

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§ 553.1

30 CFR Ch. V (7–1–21 Edition)

553.702 What limit of liability applies to my
offshore facility?
553.703 What is the procedure for calculating the limit of liability adjustment
for inflation?
553.704 How will BOEM publish the offshore
facility limit of liability adjustment?
APPENDIX TO PART 553—LIST OF U.S. GEOLOGICAL SURVEY TOPOGRAPHIC MAPS
AUTHORITY: 33 U.S.C. 2704, 2716; E.O. 12777,
as amended.
SOURCE: 76 FR 64623, Oct. 18, 2011, unless
otherwise noted.

Subpart A—General
§ 553.1 What is the purpose of this
part?
This part establishes the requirements for demonstrating Oil Spill Financial Responsibility for covered offshore facilities (COF), sets forth the
procedures for claims against COF
guarantors, and sets forth the limit of
liability for offshore facilities, as adjusted, un der Title I of the Oil Pollution Act of 1990, as amended, 33 U.S.C.
2701 et seq. (OPA).
[79 FR 73839, Dec. 12, 2014]

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§ 553.3 How are the terms used in this
regulation defined?
Terms used in this part have the following meaning:
Advertise means publication of the
notice of designation of the source of
the incident and the procedures by
which the claims may be presented, according to 33 CFR part 136, subpart D.
Annual CPI–U means the annual
‘‘Consumer Price Index-All Urban Consumers, Not Seasonally Adjusted, U.S.
City Average, All items, 1982 ¥ 84 =
100,’’ published by the U.S. Department
of Labor, Bureau of Labor Statistics.
Bay means a body of water included
in the Geographic Names Information
System (GNIS) bay feature class. A
GNIS bay includes an arm, bay, bight,
cove, estuary, gulf, inlet, or sound.
Claim means a written request, for a
specific sum, for compensation for
damages or removal costs resulting
from an oil-spill discharge or a substantial threat of the discharge of oil.
Claimant means any person or government who presents a claim for compensation under OPA.

Coastline means the line of ordinary
low water along that portion of the
coast that is in direct contact with the
open sea which marks the seaward
limit of inland waters.
Covered offshore facility (COF) means
a facility:
(1) That includes any structure and
all its components (including wells
completed at the structure and the associated pipelines), equipment, pipeline, or device (other than a vessel or
other than a pipeline or deepwater port
licensed under the Deepwater Port Act
of 1974 (33 U.S.C. 1501 et seq.)) used for
exploring for, drilling for, or producing
oil or for transporting oil from such facilities. This includes a well drilled
from a mobile offshore drilling unit
(MODU) and the associated riser and
well control equipment from the moment a drill shaft or other device first
touches the seabed for purposes of exploring for, drilling for, or producing
oil, but it does not include the MODU;
and
(2) That is located:
(i) Seaward of the coastline; or
(ii) In any portion of a bay that is:
(A) Connected to the sea, either directly or through one or more other
bays; and
(B) Depicted in whole or in part on
any USGS map listed in the Appendix
to this part, or on any map published
by the USGS that is a successor to and
covers all or part of the same area as a
listed map. Where any portion of a bay
is included on a listed map, this rule
applies to the entire bay; and
(3) That has a worst case oil-spill discharge potential of more than 1,000 bbls
of oil, or a lesser volume if the Director
determines in writing that the oil-spill
discharge risk justifies the requirement to demonstrate OSFR.
Current period means the year in
which the Annual CPI–U was most recently published by the U.S. Department of Labor, Bureau of Labor Statistics.
Designated applicant means a person
the responsible parties designate to
demonstrate OSFR for a COF on a
lease, permit, or right-of-use and easement.
Director means the Director of the
Bureau of Ocean Energy Management.

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Ocean Energy Management, Interior

§ 553.3

Fund means the Oil Spill Liability
Trust Fund established by section 9509
of the Internal Revenue Code of 1986 as
amended (26 U.S.C. 9509).
Geographic Names Information System
(GNIS) means the database developed
by the USGS in cooperation with the
U.S. Board of Geographic Names which
contains the federally-recognized geographic names for all known places,
features, and areas in the United
States that are identified by a proper
name. Each feature is located by state,
county, and geographic coordinates
and is referenced to the appropriate
1:24,000-scale or 1:63,360-scale USGS
topographic map on which it is shown.
Guarantor means a person other than
a responsible party who provides OSFR
evidence for a designated applicant.
Guaranty means any acceptable form
of OSFR evidence provided by a guarantor including an indemnity, insurance, or surety bond.
Incident means any occurrence or series of occurrences having the same origin that results in the discharge or
substantial threat of the discharge of
oil.
Indemnity means an agreement to indemnify a designated applicant upon
its satisfaction of a claim.
Indemnitor means a person providing
an indemnity for a designated applicant.
Independent accountant means a certified public accountant who is certified by a state, or a chartered accountant certified by the government
of jurisdiction within the country of
incorporation of the company proposing to use one of the self-insurance
evidence methods specified in this subpart.
Insolvent has the meaning set forth in
11 U.S.C. 101, and generally refers to a
financial condition in which the sum of
a person’s debts is greater than the
value of the person’s assets.
Lease means any form of authorization issued under the Outer Continental Shelf Lands Act or state law
which allows oil and gas exploration
and production in the area covered by
the authorization.
Lessee means a person holding a
leasehold interest in an oil or gas lease
including an owner of record title or a

holder of operating rights (working interest owner).
Oil means oil of any kind or in any
form, except as excluded by paragraph
(2) of this definition.
(1) Oil includes:
(i) Petroleum, fuel oil, sludge, oil
refuse, and oil mixed with wastes other
than dredged spoil;
(ii) Hydrocarbons produced at the
wellhead in liquid form;
(iii) Gas condensate that has been
separated from gas before pipeline injection.
(2) Oil does not include petroleum, including crude oil or any fraction thereof, which is specifically listed or designated as a hazardous substance under
subparagraphs (A) through (F) of section 101(14) of the Comprehensive Environmental Response, Compensation,
and Liability Act (CERCLA) (42 U.S.C.
9601).
Oil
Spill
Financial
Responsibility
(OSFR) means the capability and
means by which a responsible party for
a covered offshore facility will meet removal costs and damages for which it
is liable under Title I of the Oil Pollution Act of 1990, as amended (33 CFR
2701 et seq.), with respect to both oilspill discharges and substantial threats
of the discharge of oil.
Outer Continental Shelf (OCS) has the
same meaning as the term ‘‘Outer Continental Shelf’’ defined in section 2(a)
of the OCS Lands Act (OCSLA) (43
U.S.C. 1331(a)).
Permit means an authorization, license, or permit for geological exploration issued under section 11 of the
OCSLA (43 U.S.C. 1340) or applicable
state law.
Person means an individual, corporation, partnership, association (including a trust or limited liability company), state, municipality, commission
or political subdivision of a state, or
any interstate body.
Pipeline means the pipeline segments
and any associated equipment or appurtenances used or intended for use in
the transportation of oil or natural
gas.
Previous period means the year in
which the previous limit of liability
was established, or last adjusted by
statute or regulation, whichever is
later.

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§ 553.5

30 CFR Ch. V (7–1–21 Edition)

Responsible party, for purposes of subparts B through F, has the following
meanings:
(1) For a COF that is a pipeline, responsible party means any person owning or operating the pipeline;
(2) For a COF that is not a pipeline,
responsible party means either the lessee or permittee of the area in which
the COF is located, or the holder of a
right-of-use and easement granted
under applicable State law or the
OCSLA (43 U.S.C. 1301–1356) for the area
in which the COF is located (if the
holder is a different person than the
lessee or permittee). A Federal agency,
State, municipality, commission, or
political subdivision of a State, or any
interstate body that as owner transfers
possession and right to use the property to another person by lease, assignment, or permit is not a responsible
party; and
(3) For an abandoned COF, responsible party means any person who
would have been a responsible party for
the COF immediately before abandonment.
Responsible party, for purposes of subpart G, has the meaning in 33 U.S.C.
2701(32)(C), (E) and (F). This definition
includes, as applicable, lessees as defined in this subpart, permittees, rightof-use and easement holders, and pipeline owners and operators.
Right-of-use and easement (RUE)
means any authorization to use the
OCS or submerged land for purposes
other than those authorized by a lease
or permit, as defined herein. It includes
pipeline rights-of-way.
Source of the incident means the facility from which oil was discharged or
which poses a substantial threat of discharging oil, as designated by the Director, National Pollution Funds Center, according to 33 CFR part 136, subpart D.
State means the several States of the
United States, the District of Columbia, the Commonwealth of Puerto Rico,
Guam, American Samoa, the United
States Virgin Islands, the Commonwealth of the Northern Marianas, and
any other territory or possession of the
United States.
[76 FR 64623, Oct. 18, 2011, as amended at 79
FR 73839, Dec. 12, 2014]

§ 553.5 What is the authority for collecting Oil Spill Financial Responsibility (OSFR) information?
(a) The Office of Management and
Budget (OMB) has approved the information collection requirements in this
part 553 under 44 U.S.C. 3501 et seq., and
assigned OMB control number 1010–
0106.
(b) BOEM collects the information to
ensure that the designated applicant
for a COF has the financial resources
necessary to pay for cleanup and damages that could be caused by oil discharges from the COF. BOEM uses the
information to ensure compliance of
offshore lessees, owners, and operators
of covered facilities with OPA; to establish eligibility of designated applicants for OSFR certification (OSFRC);
and to establish a reference source of
names, addresses, and telephone numbers of responsible parties for covered
facilities and their designated agents,
guarantors, and U.S. agents for service
of process for claims associated with
oil pollution from designated covered
facilities. The requirement to provide
the information is mandatory. No information submitted for OSFRC is confidential or proprietary.
(c) An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
OMB control number.
(d) Send comments regarding any aspect of the collection of information
under this part, including suggestions
for reducing the burden, to the Information Collection Clearance Officer,
Bureau of Ocean Energy Management,
45600 Woodland Road, Sterling, VA
20166.
[76 FR 64623, Oct. 18, 2011, as amended at 80
FR 57097, Sept. 22, 2015]

Subpart B—Applicability and
Amount of OSFR
§ 553.10 What facilities does this part
cover?
(a) This part applies to any COF on
any lease or permit issued or on any
RUE granted under the OCSLA or applicable State law.

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Ocean Energy Management, Interior

§ 553.13

(b) For a pipeline COF that extends
onto land, this part applies to that portion of the pipeline lying seaward of
the first accessible flow shut-off device
on land.
§ 553.11 Who must demonstrate OSFR?
(a) A designated applicant must demonstrate OSFR. A designated applicant
may be a responsible party or another
person authorized under this section.
Each COF must have a single designated applicant.
(1) If there is more than one responsible party, those responsible parties
must use Form BOEM–1017 to select a
designated applicant. The designated
applicant must submit Form BOEM–
1016 and agree to demonstrate OSFR on
behalf of all the responsible parties.
(2) If you are a designated applicant
who is not a responsible party, you
must agree to be liable for claims made
under OPA jointly and severally with
the responsible parties.
(b) The designated applicant for a
COF on a lease must be either:
(1) A lessee; or
(2) The designated operator for the
OCS lease under 30 CFR 550.143 or the
unit operator designated under a Federally approved unit including the OCS
lease. For a lease or unit not in the
OCS, the operator designated under the
lease or unit operating agreement for
the lease may be the designated applicant only if the operator has agreed to
be responsible for compliance with all
the laws and regulations applicable to
the lease or unit.

(c) The designated applicant for a
COF on a permit must be the permittee.
(d) The designated applicant for a
COF on a RUE must be the holder of
the RUE or, if there is a pipeline on the
RUE, the owner or operator of the pipeline.
(e) BOEM may require the designated
applicant for a lease, permit, or RUE to
be a person other than a person identified in paragraphs (b) through (d) of
this section if BOEM determines that a
person identified in paragraphs (b)
through (d) cannot adequately demonstrate OSFR.
(f) If you are a responsible party and
you fail to designate an applicant, then
you must demonstrate OSFR under the
requirements of this part.
§ 553.12 May I ask BOEM for a determination of whether I must demonstrate OSFR?
You may submit to BOEM a request
for a determination of OSFR applicability. Address the request to the office
identified in § 553.45. You must include
in your request any information that
will assist BOEM in making the determination. BOEM may require you to
submit other information before making a determination of OSFR applicability.
§ 553.13 How much OSFR must I demonstrate?
(a) The following general parameters
apply to the amount of OSFR that you
must demonstrate:

If you are the designated applicant for . . .

Then you must demonstrate . . .

Only one COF,
More than one COF,

The amount of OSFR that applies to the COF.
The highest amount of OSFR that applies to any one of the
COFs.

(b) You must demonstrate OSFR in
the amounts specified in this section:
(1) For a COF located wholly or partially in the OCS you must dem-

onstrate OSFR in accordance with the
following table:

Applicable
amount of
OSFR

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COF worst case oil-spill discharge volume
Over
Over
Over
Over

1,000 bbls but not more than 35,000 bbls .......................................................................................................
35,000 but not more than 70,000 bbls .............................................................................................................
70,000 but not more than 105,000 bbls ...........................................................................................................
105,000 bbls .....................................................................................................................................................

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$35,000,000
70,000,000
105,000,000
150,000,000

§ 553.14

30 CFR Ch. V (7–1–21 Edition)

(2) For a COF not located in the OCS
you must demonstrate OSFR in accordance with the following table:
Applicable
amount of
OSFR

COF worst case oil-spill discharge volume
Over
Over
Over
Over
Over

1,000 bbls but not more than 10,000 bbls .......................................................................................................
10,000 but not more than 35,000 bbls .............................................................................................................
35,000 but not more than 70,000 bbls .............................................................................................................
70,000 but not more than 105,000 bbls ...........................................................................................................
105,000 bbls .....................................................................................................................................................

(3) The Director may determine that
you must demonstrate an amount of
OSFR greater than the amount in
paragraphs (b)(1) and (2) of this section
based on the relative operational, environmental, human health, and other
risks that your COF poses. The Director may require an amount that is one
or more levels higher than the amount
indicated in paragraph (b)(1) or (2) of
this section for your COF. The Director
will not require an OSFR demonstration that exceeds $150 million.
(4) You must demonstrate OSFR in
the lowest amount specified in the applicable table in paragraph (b)(1) or (2)
of this section for a facility with a potential worst case oil-spill discharge of
1,000 bbls or less if the Director notifies
you in writing that the demonstration
is justified by the risks of the potential
oil-spill discharge.

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§ 553.14 How do I determine the worst
case oil-spill discharge volume?
(a) To calculate the amount of OSFR
you must demonstrate for a facility
under § 553.13(b), you must use the
worst case oil-spill discharge volume
that you determined under whichever
of the following regulations applies:
(1) 30 CFR part 254—Response Plans
for Facilities Located Seaward of the
Coast Line, except that the volume of
the worst case oil-spill discharge for a
well must be four times the uncontrolled flow volume that you estimate
for the first 24 hours.
(2) 40 CFR part 112—Oil Pollution
Prevention; or
(3) 49 CFR part 194—Response Plans
for Onshore Oil Pipelines.
(b) If you are a designated applicant
and you choose to demonstrate $150
million in OSFR, you are not required
to determine any worst case oil-spill

discharge volumes, since that is the
maximum amount of OSFR required
under this part.
§ 553.15 What are my general OSFR
compliance responsibilities?
(a) You must maintain continuous
OSFR coverage for all your leases, permits, and RUEs with COFs for which
you are the designated applicant.
(b) You must ensure that new OSFR
evidence is submitted before your current evidence lapses or is canceled and
that coverage for your new COF is submitted before the COF goes into operation.
(c) If you use self-insurance to demonstrate OSFR and find that you no
longer qualify to self-insure the required OSFR amount based upon your
latest audited annual financial statements, then you must demonstrate
OSFR using other methods acceptable
to BOEM by whichever of the following
dates comes first:
(1) Sixty calendar days after you receive your latest audited annual financial statement; or
(2) The first calendar day of the 5th
month after the close of your fiscal
year.
(d) You may use a surety bond to
demonstrate OSFR. If you find that
your bonding company has lost its
state license or has had its U.S. Treasury Department certification revoked,
then you must replace the surety bond
within 15 calendar days using a method
of OSFR that is acceptable to BOEM.
(e) You must notify BOEM in writing
within 15 calendar days after a change
occurs that would prevent you from
meeting your OSFR obligations (e.g., if
you or your indemnitor petition for
bankruptcy under chapters 7 or 11 of
Title 11, U.S.C.). You must take any

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Ocean Energy Management, Interior

§ 553.24

action BOEM directs to ensure an acceptable OSFR demonstration.
(f) If you deny payment of a claim
presented to you under § 553.60, then
you must give the claimant a written
explanation for your denial.

Subpart C—Methods for
Demonstrating OSFR
§ 553.20 What methods may I use to
demonstrate OSFR?
As the designated applicant, you may
satisfy your OSFR requirements by
using one or a combination of the following methods to demonstrate OSFR:
(a) Self-insurance under §§ 553.21
through 553.28;
(b) Insurance under § 553.29;
(c) An indemnity under § 553.30;
(d) A surety bond under § 553.31; or
(e) An alternative method the Director approves under § 553.32.
§ 553.21 How can I use self-insurance
as OSFR evidence?
(a) If you use self-insurance to satisfy
all or part of your obligation to demonstrate OSFR, you must annually
pass either a net worth test under
§ 553.25 or an unencumbered net asset
test under § 553.28.
(b) To establish the amount of selfinsurance allowed, you must submit
evidence of your net worth under
§ 553.23
or
evidence
of
your
unencumbered assets under § 553.26.
(c) You must identify a U.S. agent for
service of process.

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§ 553.22 How do I apply to use self-insurance as OSFR evidence?
(a) You must submit a complete
Form BOEM–1018 with each application
to demonstrate OSFR using self-insurance.
(b) You must submit your application
to renew OSFR using self-insurance by
the first calendar day of the 5th month
after the close of your fiscal year. You
may submit to BOEM your initial application to demonstrate OSFR using
self-insurance at any time.
§ 553.23 What information must I submit to support my net worth demonstration?
You must support your net worth
evaluation with information contained

in your previous fiscal year’s audited
annual financial statement.
(a) Audited annual financial statements must be in the form of:
(1) An annual report, prepared in accordance with the generally accepted
accounting practices (GAAP) of the
United States or other international
accounting practices determined to be
equivalent by BOEM; or
(2) A Form 10–K or Form 20–F, prepared in accordance with Securities
and Exchange Commission regulations.
(b) Audited annual financial statements must be submitted together
with a letter signed by your treasurer
highlighting:
(1) The State or the country of incorporation;
(2) The total amount of the stockholders’ equity as shown on the balance sheet;
(3) The net amount of the plant,
property, and equipment shown on the
balance sheet; and
(4) The net amount of the identifiable
U.S. assets and the identifiable total
assets in the auditor’s notes to the financial statement (i.e., a geographic
segmented business note).
§ 553.24 When I submit audited annual
financial statements to verify my
net worth, what standards must
they meet?
(a) Your audited annual financial
statements must be bound.
(b) Your audited annual financial
statements must include the unqualified opinion of an independent accountant that states:
(1) The financial statements are free
from material misstatement, and
(2) The audit was conducted in accordance with the generally accepted
auditing standards (GAAS) of the
United States, or other international
auditing standards that BOEM determines to be equivalent.
(c) The financial information you
submit must be expressed in U.S. dollars. If this information was originally
reported in another form of currency,
you must convert it to U.S. dollars
using the conversion factor that was
effective on the last day of the fiscal
year pertinent to your financial statements. You also must identify the
source of the currency exchange rate.

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§ 553.25

30 CFR Ch. V (7–1–21 Edition)

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§ 553.25 What financial test procedures
must I use to determine the amount
of self-insurance allowed as OSFR
evidence based on net worth?
(a) Divide the total amount of the
stockholders’/owners’ equity listed on
the balance sheet by ten.
(b) Divide the net amount of the
identifiable U.S. assets by the net
amount of the identifiable total assets.
(c) Multiply the net amount of plant,
property, and equipment shown on the
balance sheet by the number calculated
under paragraph (b) of this section and
divide the resultant product by ten.
(d) The smaller of the numbers calculated under paragraphs (a) or (c) of
this section is the maximum allowable
amount you may use to demonstrate
OSFR under this method.
§ 553.26 What information must I submit to support my unencumbered
assets demonstration?
You
must
support
your
unencumbered assets evaluation with
the information required by § 553.23(a)
and a list of reserved, unencumbered,
and unimpaired U.S. assets whose
value will not be affected by an oil discharge from a COF. The assets must be
plant, property, or equipment held for
use. You must submit a letter signed
by your treasurer:
(a) Identifying which assets are reserved;
(b) Certifying that the assets are
unencumbered, including contingent
encumbrances;
(c) Promising that the identified assets will not be sold, subjected to a security interest, or otherwise encumbered throughout the specified fiscal
year; and
(d) Specifying:
(1) The State or the country of incorporation;
(2) The total amount of the stockholders’/owners’ equity listed on the
balance sheet;
(3) The identification and location of
the reserved U.S. assets; and
(4) The value of the reserved U.S. assets less accumulated depreciation and
amortization, using the same valuation
method used in your audited annual financial statement and expressed in
U.S. dollars. The net value of the reserved assets must be at least two

times the self-insurance amount requested for demonstration.
§ 553.27 When I submit audited annual
financial statements to verify my
unencumbered assets, what standards must they meet?
Any audited annual financial statements that you submit must:
(a) Meet the standards in § 553.24; and
(b) Include a certification by the
independent accountant who audited
the financial statements that states:
(1) The value of the unencumbered
assets is reasonable and uses the same
valuation method used in your audited
annual financial statements;
(2) Any existing encumbrances are
noted;
(3) The assets are long-term assets
held for use; and
(4) The valuation method used in the
audited annual financial statements is
for long-term assets held for use.
§ 553.28 What financial test procedures
must I use to evaluate the amount
of self-insurance allowed as OSFR
evidence based on unencumbered
assets?
(a) Divide the total amount of the
stockholders’/owners’ equity listed on
the balance sheet by 4.
(b)
Divide
the
value
of
the
unencumbered U.S. assets by 2.
(c) The smaller number calculated
under paragraphs (a) or (b) of this section is the maximum allowable amount
you may use to demonstrate OSFR
under this method.
§ 553.29 How can I use insurance as
OSFR evidence?
(a) If you use insurance to satisfy all
or part of your obligation to demonstrate OSFR, you may use only insurance certificates issued by insurers
that have achieved a ‘‘Secure’’ rating
for claims paying ability in their latest
review by A.M. Best’s Insurance Reports, Standard & Poor’s Insurance
Rating Services, or other equivalent
rating made by a rating service acceptable to BOEM.
(b) You must submit information
about your insurers to BOEM on a
completed and unaltered Form BOEM–
1019. The information you submit
must:

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Ocean Energy Management, Interior

§ 553.31

(1) Include all the information required by § 553.41 and
(2) Be executed on one original insurance certificate (i.e., Form BOEM–1019)
for each OSFR layer (see paragraph (c)
of this section), showing all participating insurers and their proportion
(quota share) of this risk. The certificate must bear the original signatures
of each insurer’s underwriter or of
their lead underwriters, underwriting
managers, or delegated brokers, depending on who is authorized to bind
the underwriter.
(3) For each insurance company on
the insurance certificate, indicate the
insurer’s claims-paying-ability rating
and the rating service that issued the
rating.
(c) The insurance evidence you provide to BOEM as OSFR evidence may
be divided into layers, subject to the
following restrictions:
(1) The total amount of OSFR evidence must equal the total amount you
must demonstrate under § 553.13;
(2) No more than one insurance certificate may be used to cover each
OSFR layer specified in § 553.13(b) (i.e.,
four layers for an OCS COF, and five
layers for a non-OCS COF);
(3) You may use one insurance certificate to cover any number of consecutive OSFR layers;
(4) Each insurer’s participation in the
covered insurance risk must be on a
proportional (quota share) basis, must
be expressed as a percentage of a whole
layer, and the certificate must not contain intermediate, horizontal layers;
(5) You may use an insurance deductible. If you use more than one insurance certificate, the deductible amount
must apply only to the certificate that
covers the base OSFR amount layer.
To satisfy an insurance deductible, you
may use only those methods that are
acceptable as evidence of OSFR under
this part; and
(6) You must identify a U.S. agent for
service of process on each insurance
certificate you submit to BOEM. The
agent may be different for each insurance certificate.
(d) You may submit to BOEM a temporary insurance confirmation (fax
binder) for each insurance certificate
you use as OSFR evidence. Submit
your fax binder on Form BOEM–1019,

and each form must include the signature of an underwriter for at least one
of the participating insurers. BOEM
will accept your fax binder as OSFR
evidence during a period that ends 90
days after the date that you need the
insurance to demonstrate OSFR.
§ 553.30 How can I use an indemnity as
OSFR evidence?
(a) You may use only one indemnity
issued by only one indemnitor to satisfy all or part of your obligation to
demonstrate OSFR.
(b) Your indemnitor must be your
corporate parent or affiliate.
(c) Your indemnitor must complete a
Form BOEM–1018 and provide an indemnity that:
(1) Includes all the information required by § 553.41; and
(2) Does not exceed the amounts calculated using the net worth or
unencumbered assets tests specified
under §§ 553.21 through 553.28.
(d) You must submit your application
to renew OSFR using an indemnity by
the first calendar day of the 5th month
after the close of your indemnitor’s fiscal year. You may submit to BOEM
your initial application to demonstrate
OSFR using an indemnity at any time.
(e) Your indemnitor must identify a
U.S. agent for service of process.
§ 553.31 How can I use a surety bond
as OSFR evidence?
(a) Each bonding company that
issues a surety bond that you submit to
BOEM as OSFR evidence must:
(1) Be licensed to do business in the
State in which the surety bond is executed;
(2) Be certified by the U.S. Treasury
Department as an acceptable surety for
Federal obligations and listed in the
current Treasury Circular No. 570;
(3) Provide the surety bond on Form
BOEM–1020; and
(4) Be in compliance with applicable
statutes regulating surety company
participation in insurance-type risks.
(b) A surety bond that you submit as
OSFR evidence must include all the information required by § 553.41.

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§ 553.32

30 CFR Ch. V (7–1–21 Edition)

§ 553.32 Are there alternative methods
to demonstrate OSFR?
The Director may accept other methods to demonstrate OSFR that provide
equivalent assurance of timely satisfaction of claims. This may include
pooling, letters of credit, pledges of
treasury notes, or other comparable
methods. Submit your proposal, together with all the supporting documents, to the Director at the address
listed in § 553.45. The Director’s decision whether to approve your alternative method to evidence OSFR is by
this rule committed to the Director’s
sole discretion and is not subject to administrative appeal under 30 CFR part
590 or 43 CFR part 4.

Subpart D—Requirements for
Submitting OSFR Information

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§ 553.40 What OSFR evidence must I
submit to BOEM?
(a) You must submit to BOEM:
(1) A single demonstration of OSFR
that covers all the COFs for which you
are the designated applicant;
(2) A completed and unaltered Form
BOEM–1016;
(3) BOEM forms that identify your
COFs (Form BOEM–1021, Form BOEM–
1022), and the methods you will use to
demonstrate OSFR (Form BOEM–1018,
Form BOEM–1019, Form BOEM–1020).
Forms are available from the address
listed in § 553.45;
(4) Any insurance certificates, indemnities, and surety bonds used as OSFR
evidence for the COFs for which you
are the designated applicant;
(5) A completed Form BOEM–1017 for
each responsible party, unless you are
the only responsible party for the COFs
covered by your OSFR demonstration;
and
(6) Other financial instruments and
information the Director requires to
support your OSFR demonstration
under § 553.32.
(b) Each BOEM form you submit to
BOEM as part of your OSFR demonstration must be signed. You also
must attach to Form BOEM–1016 proof
of your authority to sign.

§ 553.41 What terms must I include in
my OSFR evidence?
(a) Each instrument you submit as
OSFR evidence must specify:
(1) The effective date, and except for
a surety bond, the expiration date;
(2) That termination of the instrument will not affect the liability of the
instrument issuer for claims arising
from an incident (i.e., oil-spill discharge or substantial threat of the discharge of oil) that occurred on or before the effective date of termination;
(3) That the instrument will remain
in force until the termination date or
until the earlier of:
(i) Thirty calendar days after BOEM
and the designated applicant receive
from the instrument issuer a notification of intent to cancel; or
(ii) BOEM receives from the designated applicant other acceptable
OSFR evidence; or
(iii) All the COFs to which the instrument applies are permanently
abandoned in compliance with 30 CFR
part 250 or equivalent State requirements;
(4) That the instrument issuer agrees
to direct action for claims made under
OPA up to the guaranty amount, subject to the defenses in paragraph (a)(6)
of this section and following the procedures in § 553.60 of this part;
(5) An agent in the United States for
service of process; and
(6) That the instrument issuer will
not use any defenses against a claim
made under OPA except:
(i) The rights and defenses that
would be available to a designated applicant or responsible party for whom
the guaranty was provided; and
(ii) The incident (i.e., oil-spill discharge or a substantial threat of the
discharge of oil) leading to the claim
for removal costs or damages was
caused by willful misconduct of a responsible party for whom the designated applicant demonstrated OSFR.
(b) You may not change, omit, or add
limitations or exceptions to the terms
and conditions in a BOEM form that
you submit as part of your OSFR demonstration. If you attempt to do this,
BOEM will disregard the changes,
omissions, additions, limitations, or
exceptions and by operation of this
rule BOEM will consider the form to

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Ocean Energy Management, Interior

§ 553.51

contain all the terms and conditions
included on the original BOEM form.
§ 553.42 How can I amend my list of
COFs?
(a) If you want to add a COF that is
not identified in your current OSFR
demonstration, you must submit to
BOEM a completed Form BOEM–1022. If
applicable, you also must submit any
additional indemnities, surety bonds,
insurance certificates, or other instruments required to extend the coverage
of your original OSFR demonstration
to the COFs to be added. You do not
need to resubmit previously accepted
audited annual financial statements
for the current fiscal year.
(b) If you want to drop a COF identified in your current OSFR demonstration, you must submit to BOEM a completed Form BOEM–1022. You must
continue to demonstrate OSFR for the
COF until BOEM approves OSFR evidence for the COF from another designated applicant, or OSFR is no
longer required (e.g., until a well that
is a COF is properly plugged and abandoned).
§ 553.43 When is my OSFR demonstration or the amendment to my OSFR
demonstration effective?
(a) BOEM will notify you in writing
when we approve your OSFR demonstration. If we find that you have not
submitted all the information needed
to demonstrate OSFR, we may require
you to provide additional information
before we determine whether your
OSFR evidence is acceptable.
(b) Except in the case of self-insurance or an indemnity, BOEM acceptance of OSFR evidence is valid until
the surety bond, insurance certificate,
or other accepted OSFR instrument expires or is canceled. In the case of selfinsurance or indemnity, acceptance is
valid until the first day of the 5th
month after the close of your or your
indemnitor’s current fiscal year.

mtcarroll on DSK6VXHR33PROD with CFR

§ 553.44

[Reserved]

§ 553.45 Where do I send my OSFR evidence?
Address all correspondence and required submissions related to this part
to: U.S. Department of the Interior,
Bureau of Ocean Energy Management,

Gulf of Mexico Region, Oil Spill Financial Responsibility Program, 1201 Elmwood Park Boulevard, New Orleans,
Louisiana 70123.

Subpart E—Revocation and
Penalties
§ 553.50 How can BOEM refuse or invalidate my OSFR evidence?
(a) If BOEM determines that any
OSFR evidence you submit fails to
comply with the requirements of this
part, we may not accept it. If we do not
accept your OSFR evidence, then we
will send you a written notification
stating:
(1) That your evidence is not acceptable;
(2) Why your evidence is unacceptable; and
(3) The amount of time you are allowed to submit acceptable evidence
without being subject to civil penalty
under § 553.51.
(b) BOEM may immediately and
without prior notice invalidate your
OSFR demonstration if you:
(1) Are no longer eligible to be the
designated applicant for a COF included in your demonstration; or
(2) Permit the cancellation or termination of the insurance policy, surety
bond, or indemnity upon which the
continued validity of the demonstration is based.
(c) If BOEM determines you are not
complying with the requirements of
this part for any reason other than
paragraph (b) of this section, we will
notify you of our intent to invalidate
your OSFR demonstration and specify
the corrective action needed. Unless
you take the corrective action BOEM
specifies within 15 calendar days from
the date you receive such a notice, we
will invalidate your OSFR demonstration.
§ 553.51 What are the penalties for not
complying with this part?
(a) If you fail to comply with the financial responsibility requirements of
OPA at 33 U.S.C. 2716 or with the requirements of this part, then you may
be liable for a civil penalty of up to
$48,762 per COF per day of violation
(that is, each day a COF is operated
without acceptable evidence of OSFR).

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§ 553.60

30 CFR Ch. V (7–1–21 Edition)

(b) BOEM will determine the date of
a noncompliance. BOEM will assess
penalties in accordance with an OSFR
penalty schedule using the procedures
found at 30 CFR part 550, subpart N.
You may obtain a copy of the penalty
schedule from BOEM at the address in
§ 553.45.
(c) BOEM may assess a civil penalty
against you that is greater or less than
the amount in the penalty schedule
after taking into account the factors in
section 4303(a) of OPA (33 U.S.C. 2716a).
(d) If you fail to correct a deficiency
in the OSFR evidence for a COF, then
the Director may suspend operation of
a COF in the OCS under 30 CFR 250.170
or seek judicial relief, including an
order suspending the operation of any
COF.
[76 FR 64623, Oct. 18, 2011, as amended at 81
FR 43069, July 1, 2016; 82 FR 10711, Feb. 15,
2017; 83 FR 8933, Mar. 2, 2018; 84 FR 11224,
Mar. 26, 2019; 85 FR 7221, Feb. 7, 2020; 86 FR
19784, Apr. 15, 2021]

§ 553.60 To whom may I present a
claim?
(a) If you are a claimant, you must
present your claim first to the designated applicant for the COF that is
the source of the incident resulting in
your claim. If, however, the designated
applicant has filed a petition for bankruptcy under 11 U.S.C. chapter 7 or 11,
you may present your claim first to
any of the designated applicant’s guarantors.
(b) If the claim you present to the
designated applicant or guarantor is
denied or not paid within 90 days after
you first present it or advertising begins, whichever is later, then you may
seek any of the following remedies that
apply:

If the reason for denial or nonpayment is . . .

Then you may elect to . . .

(1) Not an assertion of insolvency or petition in bankruptcy
under 11 U.S.C. chapter 7 or 11,

(i) Present your claim to any of the responsible parties for the
COF; or
(ii) Initiate a lawsuit against the designated applicant and/or
any of the responsible parties for the COF; or
(iii) Present your claim to the Fund using the procedures at 33
CFR part 136.
(i) Pursue any of the remedies in items (1)(i) through (iii) of this
table; or
(ii) Present your claim to any of the designated applicant’s
guarantors; or
(iii) Initiate a lawsuit against any of the designated applicant’s
guarantors.

(2) An assertion of insolvency or petition in bankruptcy under
11 U.S.C. chapter 7 or 11,

mtcarroll on DSK6VXHR33PROD with CFR

Subpart F—Claims for Oil-Spill
Removal Costs and Damages

(c) If no one has resolved your claim
to your satisfaction using the remedy
that you elected under paragraph (b) of
this section, then you may pursue another available remedy, unless the
Fund has denied your claim or a court
of competent jurisdiction has ruled
against your claim. You may not pursue more than one remedy at a time.
(d) You may ask BOEM to assist you
in determining whether a guarantor
may be liable for your claim. Send
your request for assistance to the address listed in § 553.45. You must include any information you have regarding the existence or identity of possible
guarantors.

§ 553.61 When is a guarantor subject to
direct action for claims?
(a) If you are a guarantor, then you
are subject to direct action for any
claim asserted by:
(1) The United States for any compensation paid by the Fund under OPA,
including compensation claim processing costs; and
(2) A claimant other than the United
States if the designated applicant has:
(i) Denied or failed to pay a claim because of being insolvent; or
(ii) Filed a petition in bankruptcy
under 11 U.S.C. chapters 7 or 11.
(b) If you participate in an insurance
guaranty for a COF incident (i.e., oilspill discharge or substantial threat of
the discharge of oil) that is subject to

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Ocean Energy Management, Interior

§ 553.703

claims under this part, then your maximum, aggregate liability for those
claims is equal to your quota share of
the insurance guaranty.

plus $137.6595 million for damages with
respect to each incident.

§ 553.62 What are the designated applicant’s notification obligations regarding a claim?

§ 553.703 What is the procedure for
calculating the limit of liability adjustment for inflation?

If you are a designated applicant, and
you receive a claim for removal costs
and damages, then within 15 calendar
days of receipt of a claim you must notify:
(a) Your guarantors; and
(b) The responsible parties for whom
you are acting as the designated applicant.

The procedure for calculating limit
of liability adjustments for inflation is
as follows:
(a) Formula for calculating a cumulative percent change in the Annual CPI–
U. BOEM calculates the cumulative
percent change in the Annual CPI–U
from the year the limit of liability was
established by statute, or last adjusted
by regulation, whichever is later (i.e.,
the Previous Period), to the year in
which the Annual CPI–U is most recently published (i.e., the Current Period), using the following formula: Percent change in the Annual CPI–U =
[(Annual CPI–U for Current Period ¥
Annual CPI–U for Previous Period) ÷
Annual CPI–U for Previous Period] ×
100. This cumulative percent change
value is rounded to one decimal place.
(b) Significance threshold. (1) A cumulative increase in the Annual CPI–U
equal to three percent or more constitutes a significant increase in the
Consumer Price Index within the
meaning of 33 U.S.C. 2704(d)(4).
(2) Not later than every three years
from the year the limit of liability was
last adjusted for inflation, BOEM will
evaluate whether the cumulative percent change in the Annual CPI–U since
that year has reached a significance
threshold of three percent or greater.
(3) For any three-year period evaluated under paragraph (b)(2) of this section in which the cumulative percent
increase in the Annual CPI–U is less
than three percent, if BOEM has not
issued an inflation adjustment during
that period, BOEM will publish a notice of no inflation adjustment to the
offshore facility limit of liability for
damages in the FEDERAL REGISTER.
(4) Once the three-percent threshold
is reached, BOEM will increase by final
rule the offshore facility limit of liability for damages in § 553.702 by an
amount equal to the cumulative percent change in the Annual CPI–U from
the year the limit was established by
statute, or last adjusted by regulation,

Subpart G—Limit of Liability for
Offshore Facilities
SOURCE: 79 FR 73840, Dec. 12, 2014, unless
otherwise noted.

§ 553.700 What is the scope of this subpart?
This subpart sets forth the limit of
liability for damages for offshore facilities under Title I of the Oil Pollution
Act of 1990, as amended (33 U.S.C. 2701
et seq.) (OPA), as adjusted, under section 1004(d) of OPA (33 U.S.C. 2704(d)).
This subpart also sets forth the method
for adjusting the limit of liability for
damages for offshore facilities for inflation, by regulation, under section
1004(d) of OPA (33 U.S.C. 2704(d)).
§ 553.701 To which entities does this
subpart apply?
This subpart applies to you if you are
a responsible party for an offshore facility, other than a deepwater port
under the Deepwater Port Act of 1974
(33 U.S.C. 1501–1524), but including an
offshore pipeline, or an abandoned offshore facility, including any abandoned
offshore pipeline, unless your liability
is unlimited under OPA 90 (33 U.S.C.
2704(c)).

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§ 553.702 What limit of liability applies
to my offshore facility?
Except as provided in 33 U.S.C.
2704(c), the limit of liability under OPA
for a responsible party for any offshore
facility, including any offshore pipeline, is the total of all removal costs

[83 FR 2542, Jan. 18, 2018]

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§ 553.704

30 CFR Ch. V (7–1–21 Edition)

whichever is later. After this adjustment is made, BOEM will resume its
process of conducting a review every
three years.
(5) Nothing in this section will prevent BOEM, in BOEM’s sole discretion,
from adjusting the offshore facility
limit of liability for damages for inflation by regulation issued more frequently than every three years.
(c) Formula for calculating inflation
adjustments. BOEM calculates adjustments to the offshore facility limit of
liability in 30 CFR 553.702 for inflation
using the following formula:
New limit of liability = Previous limit of liability + (Previous limit of liability ×
the decimal equivalent of the percent
change in the Annual CPI–U calculated under paragraph (a) of this
section), then rounded to the closest
$100.
§ 553.704 How will BOEM publish the
offshore facility limit of liability adjustment?
BOEM will publish the inflation-adjusted limit of liability, and any statutory amendments to that limit of liability in the FEDERAL REGISTER, as
amendments to § 553.702. Updates to the
limit of liability under this section are
effective on the 90th day after publication in the FEDERAL REGISTER of the
amendments to § 553.702, unless otherwise specified by statute (in the event
of a statutory amendment to the limit
of liability), or in the FEDERAL REGISTER rule amending § 553.702.

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APPENDIX TO PART 553—LIST OF U.S.
GEOLOGICAL SURVEY TOPOGRAPHIC
MAPS
Alabama (1:24,000 scale): Bellefontaine; Bon
Secour Bay; Bridgehead; Coden; Daphne;
Fort Morgan; Fort Morgan NW; Grand Bay;
Grand Bay SW; Gulf Shores; Heron Bay;
Hollingers Island; Isle Aux Herbes; Kreole;
Lillian; Little Dauphin Island; Little Point
Clear; Magnolia Springs; Mobile; Orange
Beach; Perdido Beach; Petit Bois Island;
Petit Bois Pass; Pine Beach; Point Clear;
Saint Andrews Bay; West Pensacola.
Alaska (1:63,360 scale): Afognak (A–1, A–2,
A–3, A–4, A–5, A–0&B–0, B–1, B–2, B–3, C–1&2,
C–2&3, C–5, C–6, D–1, D–4, D–5); Anchorage
(A–1, A–2, A–3, A–4, A–8, B–7, B–8); Barrow
(A–1, A–2, A–3, A–4, A–5, B–3, B–4); Baird Mts.
(A–6); Barter Island (A–3, A–4, A–5); Beechy
Point (A–1, A–2, B–1, B–2, B–3, B–4, B–5, C–4,
C–5); Bering Glacier (A–1, A–2, A–3, A–4, A–5,

A–6, A–7, A–8); Black (A–1, A–2, B–1, C–1);
Blying Sound (C–7, C–8, D–1&2, D–3, D–4, D–5,
D–6, D–7, D–8); Candle (D–6); Cordova (A–1, A–
2, A–3, A–4, A–7&8, B–2, B–3, B–4, B–5, B–6, B–
7, B–8, C–5, C–6, C–7, C–8, D–6, D–7, D–8); De
Long Mts. (D–4, D–5); Demarcation Point (C–
1, C–2, D–2, D–3); Flaxman Island (A–1, A–3,
A–4, A–5, B–5); Harrison Bay (B–1, B–2, B–3,
B–4, C–1, C–3, C–4, C–5, D–4, D–5); Icy Bay (D1,
D–2&3); Iliamna (A–2, A–3, A–4, B–2, B–3, C–1,
C–2, D–1); Karluk (A–1, A–2, B–2, B–3, C–1, C–
2, C–4&5, C–6); Kenai (A–4, A–5, A–7, A–8, B–
4, B–6, B–7, B–8, C–4, C–5, C–6, C–7, D–1, D–2,
D–3, D–4, D–5); Kodiak (A–3, A–4, A–5, A–6, B–
1&2, B–3, B–4, B–6, C–1, C–2, C–3, C–5, C–6, D–
1, D–2, D–3, D–4, D–5, D–6); Kotzebue (A–1, A–
2, A–3, A–4, B–4, B–6, C–1, C–4, C–5, C–6, D–1,
D–2); Kwiguk (C–6, D–6); Meade River (D–1,
D–3, D–4, D–5); Middleton Island (B–7, D–1&2);
Mt. Katmai (A–1, A–2, A–3; B–1); Mt.
Michelson (D–1, D–2, D–3); Mt. St. Elias (A–
5); Noatak (A–1, A–2, A–3, A–4, B–4, C–4, C–5,
D–6, D–7); Nome (B–1, C–1, C–2, C–3, D–3, D–4,
D–7); Norton Bay (A–4, B–4, B–5, B–6, C–4, C–
5, C–6, D–4, D–5, D–6); Point Hope (A–1, A–2,
B–2, B–3, C–2, C–3, D–1, D–2); Point Lay (A–
3&4, B–2&3, C–2, D–1, D–2); Selawik (A–5, A–
6, B–5, B–6, C–5, C–6, D–6); Seldovia (A–3, A–
4, A–5, A–6, B–1, B–2, B–3, B–4, B–5, B–6, C–1,
C–2, C–3, C–4, C–5, D–1, D–3, D–4, D–5, D–8);
Seward (A–1, A–2, A–3, A–4, A–5, A–6, A–7, B–
1, B–2, B–3, B–4, B–5, C–1, C–2, C–3, C–4, C–5,
D–1, D–2, D–3, D–4, D–5, D–6, D–7, D–8);
Shishmaref (A–2, A–3, A–4, B–1, B–2, B–3);
Solomon (B–2, B–3, B–6, C–1, C–2, C–3, C–4, C–
5, C–6); St. Michael (A–2, A–3, A–4, A–5, A–6,
B–1, B–2, C–1, C–2); Teller (A–2, A–3, A–4, B–
3, B–4, B–5, B–6, C–6, C–7, D–4, D–5, D–6, D–8);
Teshekpuk (D–1, D–2, D–3, D–4, D–5); Tyonek
(A–1, A–2, A–3, A–4, B–1, B–2); Unalakleet (B–
5, B–6, C–4, C–5, D–4); Valdez (A–7, A–8); Wainwright (A–5, A–6&7, B–2, B–3, B–4, B–5&6, C–
2, C–3, D–1, D–2; Yakutat (A–1, A–2, A–2, B–3,
B–4, B–5, C–4, C–5, C–6, C–7, C–8, D–3, D–4, D–
5, D–6, D–8).
California (1:24,000 scale): Arroyo Grande
NE; Beverly Hills; Carpinteria; Casmalia;
Dana Point; Del Mar; Dos Pueblos Canyon;
Encinitas; Gaviota; Goleta; Guadalupe; Imperial Beach; Laguna Beach; La Jolla; Las
Pulgas Canyon; Lompoc Hills; Long Beach;
Los Alamitos; Malibu Beach; Morro Bay
South; National City; Newport Beach;
Oceano; Oceanside; Oxnard; Pismo Beach;
Pitas Point; Point Arguello; Point Conception; Point Dune; Point Loma; Point Mugu;
Point Sal; Port San Luis; Rancho Santa Fe;
Redondo Beach; Sacate; San Clemente; San
Juan Capistrano; San Luis Rey; San Onofre
Bluff; San Pedro; Santa Barbara; Saticoy;
Seal Beach; Surf; Tajiguas; Topanga; Torrance; Tranquillon Mountain; Triunfo Pass;
Tustin; Venice; Ventura; White Ledge Peak.
Florida (1:24,000 scale): Allanton; Alligator
Bay; Anna Maria; Apalachicola; Aripeka;
Bayport; Beacon Beach; Beacon Hill; Bee

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mtcarroll on DSK6VXHR33PROD with CFR

Ocean Energy Management, Interior

Pt. 553, App.

Ridge; Belle Meade; Belle Meade NW; Beverly; Big Lostmans Bay; Bird Keys; Bokeelia;
Bonita
Springs;
Bradenton;
Bradenton
Beach; Bruce; Bunker; Cape Romano; Cape
Saint George; Cape San Blas; Captiva;
Carrabelle; Cedar Key; Chassahowitzka;
Chassahowitzka Bay; Chiefland SW; Choctaw
Beach; Chokoloskee; Clearwater; Clive Key;
Cobb Rocks; Cockroach Bay; Crawfordville
East; Crooked Island; Crooked Point; Cross
City SW; Crystal River; Destin; Dog Island;
Dunedin; East Pass; Egmont Key; El Jobean;
Elfers; Englewood; Englewood NW; Estero;
Everglades City; Fivay Junction; Flamingo;
Fort Barrancas; Fort Myers Beach; Fort
Myers SW; Fort Walton Beach; Freeport;
Gandy Bridge; Garcon Point; Gator Hook
Swamp; Gibsonton; Goose Island; Grayton
Beach; Green Point; Gulf Breeze; Harney
River; Harold SE; Holley; Holt SW;
Homosassa; Horseshoe Beach; Indian Pass;
Jackson River; Jena; Keaton Beach; Laguna
Beach; Lake Ingraham East; Lake Ingraham
West; Lake Wimico; Laurel; Lebanon Station; Lighthouse Point; Lillian; Long Point;
Lostmans River Ranger Station; Manlin
Hammock; Marco Island; Mary Esther;
Matlacha; McIntyre; Milton South; Miramar
Beach; Myakka River; Naples North; Naples
South; Navarre; New Inlet; Niceville; Nutall
Rise; Ochopee; Okefenokee Slough; Oldsmar;
Orange Beach; Oriole Beach; Overstreet;
Ozello; Pace; Palmetto; Panama City; Panama City Beach; Panther Key; Pass-A-Grille
Beach; Pavillion Key; Pensacola; Perdido
Bay; Pickett Bay; Pine Island Center;
Placida; Plover Key; Point Washington; Port
Boca Grande; Port Richey; Port Richey NE;
Port Saint Joe; Port Tampa; Punta Gorda;
Punta Gorda SE; Punta Gorda SW; Red Head;
Red Level; Rock Islands; Royal Palm Hammock; Safety Harbor; Saint Joseph Point;
Saint Joseph Spit; Saint Marks; Saint Marks
NE; Saint Petersburg; Saint Teresa Beach;
Salem SW; Sandy Key; Sanibel; Sarasota;
Seahorse Key; Seminole; Seminole Hills;
Shark Point; Shark River Island; Shired Island; Snipe Island; Sopchoppy; South of
Holley; Southport; Sprague Island; Spring
Creek;
Springfield;
Steinhatchee;
Steinhatchee SE; Steinhatchee SW; Sugar
Hill; Sumner; Suwannee; Tampa; Tarpon
Springs;
Valparaiso;
Venice;
Vista;
Waccassasa Bay; Ward Basin; Warrior
Swamp; Weavers Station; Weeki Wachee
Spring; West Bay; West Pass; West Pensacola; Whitewater Bay West; Withlacoochee
Bay; Wulfert; Yankeetown.
Louisiana (1:24,000 scale): Alligator Point;
Barataria Pass; Bastian Bay; Bay Batiste;
Bay Coquette; Bay Courant; Bay Dosgris;
Bay Ronquille; Bay Tambour; Bayou Blanc;
Bayou Lucien; Belle Isle; Belle Pass; Big
Constance Lake; Black Bay North; Black
Bay South; Breton Islands; Breton Islands
SE; Buras; Burrwood Bayou East; Burwood
Bayou West; Calumet Island; Cameron;

Caminada Pass; Cat Island; Cat Island Pass;
Central Isles Dernieres; Chandeleur Light;
Chef Mentur; Cheniere Au Tigre; Cocodrie;
Coquille
Point;
Cow
Island;
Creole;
Cypremort Point; Deep Lake; Dixon Bay;
Dog Lake; Door Point; East Bay Junop;
Eastern Isles; Dernieres; Ellerslie; Empire;
English Lookout; False Mouth Bayou;
Fearman Lake; Floating Turf Bayou;
Fourleague Bay; Franklin; Freemason Island; Garden Island Pass; Grand Bayou;
Grand Bayou du Large; Grand Chenier;
Grand Gosier Islands; Grand Isle; Hackberry
Beach; Hammock Lake; Happy Jack; Hebert
Lake; Hell Hole Bayou; Hog Bayou; Holly
Beach; Intercoastal City; Isle Au Pitre;
Jacko Bay; Johnson Bayou; Kemper; Lake
Athanasio; Lake Cuatro Caballo; Lake Eloi;
Lake Eugene; Lake Felicity; Lake La
Graisse; Lake Merchant; Lake Point; Lake
Salve; Lake Tambour; Leeville; Lena Lagoon; Lost Lake; Main Pass; Malheureux
Point; Marone Point; Martello Castle; Mink
Bayou; Mitchell Key; Morgan City SW; Morgan Harbor; Mound Point; Mulberry Island
East; Mulberry Island West; New Harbor Islands; North Islands; Oak Mound Bayou; Oyster Bayou; Pass A Loutre East; Pass A
Loutre West; Pass du Bois; Pass Tante
Phine; Pecan Island; Pelican Pass; Peveto
Beach; Pilottown; Plumb Bayou; Point Au
Fer; Point Au Fer NE; Point Chevreuil;
Point Chicot; Port Arthur South; Port Sulphur; Pte. Aux Marchuttes; Proctor Point;
Pumpkin Islands; Redfish Point; Rollover
Lake; Sabine Pass; Saint Joe Pass; Smith
Bayou; South of South Pass; South Pass;
Stake Islands; Taylor Pass; Texas Point;
Three Mile Bay; Tigre Lagoon; Timbalier Island; Triumph; Venice; Weeks; West of Johnson
Bayou;
Western
Isles
Dernieres;
Wilkinson Bay; Yscloskey.
Mississippi (1:24,000 scale): Bay Saint Louis;
Biloxi; Cat Island; Chandeleur Light; Deer Island; Dog Keys Pass; English Lookout;
Gautier North; Gautier South; Grand Bay
SW; Gulfport North; Gulfport NW; Gulfport
South; Horn Island East; Horn Island West;
Isle Au Pitre; Kreole; Ocean Springs;
Pascagoula North; Pascagoula South; Pass
Christian; Petit Bois Island; Saint Joe Pass;
Ship Island; Waveland.
Texas (1:24,000 scale): Allyns Bright; Anahuac; Aransas Pass; Austwell; Bacliff;
Bayside; Big Hill Bayou; Brown Cedar Cut;
Caplen; Carancahua Pass; Cedar Lakes East;
Cedar Lakes West; Cedar Lane NE; Christmas Point; Clam Lake; Corpus Christi; Cove;
Crane Islands NW; Crane Islands SW; Decros
Point; Dressing Point; Estes; Flake; Freeport; Frozen Point; Galveston; Green Island;
Hawk Island; High Island; Hitchcock; Hoskins Mound; Jones Creek; Keller Bay;
Kleberg Point; La Comal; La Leona; La
Parra Ranch NE; Laguna Vista; Lake Austin;
Lake Como; Lake Stephenson; Lamar; Long
Island; Los Amigos; Windmill; Maria Estella

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Pt. 556

30 CFR Ch. V (7–1–21 Edition)

Well; Matagorda; Matagorda SW; Mesquite
Bay; Mission Bay; Morgans Point; Mosquito
Point; Mouth of Rio Grande; Mud Lake;
North of Port Isabel NW; North of Port Isabel SW; Oak Island; Olivia; Oso Creek NE;
Oyster Creek; Palacios; Palacios NE;
Palacios Point; Palacios SE; Panther Point;
Panther Point NE; Pass Cavallo SW; Pita Island; Point Comfort; Point of Rocks; Port
Aransas; Port Arthur South; Port Bolivar;
Port Ingleside; Port Isabel; Port Isabel NW;
Port Lavaca East; Port Mansfield; Port
O’Connor;
Portland;
Potrero
Cortado;
Potrero Lopeno NW; Potrero Lopeno SE;
Potrero Lopeno SW; Rockport; Sabine Pass;
San Luis Pass; Sargent; Sea Isle; Seadrift;
Seadrift NE; Smith Point; South Bird Island;
South Bird Island NW; South Bird Island SE;
South of Palacios Point; South of Potrero
Lopeno NE; South of Potrero Lopeno NW;
South of Potrero Lopeno SE; South of Star
Lake; St. Charles Bay; St. Charles Bay SE;
St. Charles Bay SW; Star Lake; Texas City;
Texas Point; The Jetties; Three Islands; Tivoli SE; Turtle Bay; Umbrella Point; Virginia
Point; West of Johnson Bayou; Whites
Ranch; Yarborough Pass.

PART 556—LEASING OF SULFUR OR
OIL AND GAS AND BONDING
REQUIREMENTS IN THE OUTER
CONTINENTAL SHELF
Subpart A—General Provisions
Sec.
556.100 Statement of policy.
556.101 Purpose.
556.102 Authority.
556.103 Cross references.
556.104 Information collection and proprietary information.
556.105 Acronyms and definitions.
556.106 Service fees.
556.107 Corporate seal requirements.

mtcarroll on DSK6VXHR33PROD with CFR

Subpart B—Oil and Gas Five Year Leasing
Program
556.200 What is the Five Year leasing program?
556.201 Does BOEM consider multiple uses
of the OCS?
556.202 How does BOEM start the Five Year
program preparation process?
556.203 What does BOEM do before publishing a proposed Five Year program?
556.204 How do Governments and citizens
comment on a proposed Five Year program?
556.205 What does BOEM do before approving a proposed final Five Year program
or a significant revision of a previouslyapproved Five Year program?

Subpart C—Planning and Holding a Lease
Sale
556.300 What reports may BOEM and other
Federal agencies prepare before a lease
sale?
556.301 What is a Call for Information and
Nominations?
556.302 What does BOEM do with the information from the Call?
556.303 What does BOEM do if an area proposed for leasing is within three nautical
miles of the seaward boundary of a coastal State?
556.304 How is a proposed notice of sale prepared?
556.305 How does BOEM coordinate and consult with States regarding a proposed notice of sale?
556.306 What if a potentially oil or gas bearing area underlies both the OCS and
lands subject to State jurisdiction?
556.307 What does BOEM do with comments
and recommendations received on the
proposed notice of sale?
556.308 How does BOEM conduct a lease
sale?
556.309 Does BOEM offer blocks in a sale
that is not on the Five Year program
schedule (called a Supplemental Sale)?

Subpart D—Qualifications
556.400 When must I demonstrate that I am
qualified to hold a lease on the OCS?
556.401 What do I need to show to become
qualified to hold a lease on the OCS and
obtain a qualification number?
556.402 How do I make the necessary showing to qualify and obtain a qualification
number?
556.403 Under what circumstances may I be
disqualified from holding a lease on the
OCS?
556.404 What do the non-procurement debarment rules require that I do?
556.405 When must I notify BOEM of mergers, name changes, or changes of business
form?

Subpart E—Issuance of a Lease
HOW TO BID
556.500 Once qualified, how do I submit a
bid?
556.501 What information do I need to submit with my bid?
RESTRICTIONS ON JOINT BIDDING
556.511 Are there restrictions on bidding
with others and do those restrictions affect my ability to bid?
556.512 What bids may be disqualified?
556.513 When must I file a statement of production?

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