30 CFR § 550.1490

30 CFR · Mineral Resources

§ 550.1490 — What standards must my BOEM-specified surety instrument meet?

30 CFR § 550.1490

TitleTitle 30: Mineral Resources PartPart 550: Oil and Gas and Sulfur Operations in the Outer Continental Shelf

SourceeCFR (current through Apr 6, 2026)

This text of 30 C.F.R. § 550.1490 (What standards must my BOEM-specified surety instrument meet?) is published on Counsel Stack Legal Research, covering United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

30 C.F.R. § 550.1490 (2026).

Text

§ 550.1490 What standards must my BOEM-specified surety instrument meet?

(a)A BOEM-specified surety instrument must be in a form specified in BOEM instructions. BOEM will give you written information and standard forms for BOEM-specified surety instrument requirements.

(b)BOEM will use a bank-rating service to determine whether a financial institution has an acceptable rating to provide a surety instrument adequate to indemnify the lessor from loss or damage.

(1)Administrative appeal bonds must be issued by a qualified surety company which the Department of the Treasury has approved.

(2)Irrevocable letters of credit or certificates of deposit must be from a financial institution acceptable to BOEM with a minimum 1-year period of coverage subject to automatic renewal up to 5 years.

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§ 550.1490 What standards must my BOEM-specified surety instrument meet?

(a) A BOEM-specified surety instrument must be in a form specified in BOEM instructions. BOEM will give you written information and standard forms for BOEM-specified surety instrument requirements.

(b) BOEM will use a bank-rating service to determine whether a financial institution has an acceptable rating to provide a surety instrument adequate to indemnify the lessor from loss or damage.

(1) Administrative appeal bonds must be issued by a qualified surety company which the Department of the Treasury has approved.

(2) Irrevocable letters of credit or certificates of deposit must be from a financial institution acceptable to BOEM with a minimum 1-year period of coverage subject to automatic renewal up to 5 years.