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Proposed Rules
Federal Register
Vol. 74, No. 100
Wednesday, May 27, 2009
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF THE TREASURY
Internal Revenue Service
hearing were due on May 15, 2009. The
notice of proposed rulemaking and
notice of public hearing instructed those
interested in testifying at the public
hearing to submit an outline of the
topics to be addressed. As of
Wednesday, May 20, 2009, no one has
requested to speak. Therefore, the
public hearing scheduled for June 4,
2009, is cancelled.
LaNita Van Dyke,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. E9–12167 Filed 5–26–09; 8:45 am]
26 CFR Part 301
[REG–138326–07]
RIN 1545–BH22
BILLING CODE 4830–01–P
Tax Avoidance Transactions; Hearing
Cancellation
Internal Revenue Service (IRS),
Treasury.
ACTION: Cancellation of notice of public
hearing on proposed rulemaking.
AGENCY:
SUMMARY: This document cancels a
public hearing on proposed rulemaking
under section 6231 of the Internal
Revenue Code that allows the IRS to
convert partnership items to
nonpartnership items when the
application of the unified partnership
audit and litigation procedures of
sections 6221 through 6234 (TEFRA
partnership procedures) with respect to
certain tax avoidance transactions
interferes with the effective and efficient
enforcement of the internal revenue
laws.
DATES: The public hearing, originally
scheduled for June 4, 2009, at 10 a.m.,
is cancelled.
FOR FURTHER INFORMATION CONTACT:
Richard A. Hurst of the Publications and
Regulations Branch, Legal Processing
Division, Associate Chief Counsel
(Procedure and Administration), at
[email protected].
A notice
of public hearing that appeared in the
Federal Register on Friday, February 13,
2009 (74 FR 7205), announced that a
public hearing was scheduled for June
4, 2009, at 10 a.m., in the auditorium,
Internal Revenue Building, 1111
Constitution Avenue, NW., Washington,
DC. The subject of the public hearing is
under section 6231 of the Internal
Revenue Code.
The public comment period for these
regulations expired on May 14, 2009.
Outlines of topics to be discussed at the
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SUPPLEMENTARY INFORMATION:
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
30 CFR Parts 250, 256, and 260
RIN 1010–AD06
[Docket ID MMS–2007–OMM–0069]
Leasing of Sulphur or Oil and Gas and
Bonding Requirements in the Outer
Continental Shelf
AGENCY: Minerals Management Service
(MMS), Interior.
ACTION: Proposed rule.
SUMMARY: The MMS proposes to update
and streamline the existing Outer
Continental Shelf leasing regulations,
and to clarify implementation of the
Federal Oil and Gas Royalty
Simplification and Fairness Act of 1996.
The rule would reorganize and reorder
leasing requirements to reflect the
leasing process more efficiently, as it
has evolved over the last 26 years. The
rule also proposes changes to parts 250
and 260 that relate to the proposed
revisions to part 256.
DATES: Submit comments by September
24, 2009. The MMS may not fully
consider comments received after this
date. Submit comments to the Office of
Management and Budget on the
information collection burden in this
proposed rule by June 26, 2009. This
does not affect the deadline for the
public to comment to MMS on the
proposed regulations.
ADDRESSES: You may submit comments
on the rulemaking by any of the
following methods. Please use the
Regulation Identifier Number (RIN)
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1010–AD06 as an identifier in your
message. See also Public Availability of
Comments under Procedural Matters.
• Federal eRulemaking Portal: http://
www.regulations.gov. Under the tab
‘‘More Search Options,’’ click
‘‘Advanced Docket Search,’’ then select
‘‘Minerals Management Service’’ from
the agency drop-down menu, then click
the submit button. In the Docket ID
column, select MMS–2007–OMM–0069
to submit public comments and to view
supporting and related materials
available for this rulemaking.
Information on using Regulations.gov,
including instructions for accessing
documents, submitting comments, and
viewing the docket after the close of the
comment period, is available through
the site’s ‘‘User Tips’’ link. The MMS
will post all comments.
• Mail or hand-carry comments to the
Department of the Interior; Minerals
Management Service; Attention:
Regulations and Standards Branch
(RSB); 381 Elden Street, MS–4024,
Herndon, Virginia 20170–4817. Please
reference ‘‘Leasing of Sulphur or Oil
and Gas and Bonding Requirements in
the Outer Continental Shelf, 1010–
AD06’’ in your comments and include
your name and return address.
• Send comments on the information
collection in this proposed rule to:
Interior Desk Officer 1010–AD06, Office
of Management and Budget; 202–395–
5806 (fax); e-mail:
[email protected]. Please also
send a copy to MMS.
FOR FURTHER INFORMATION CONTACT: For
comments or questions on procedural
issues, contact Kumkum Ray,
Regulations and Standards Branch, at
[email protected], or at (703) 787–
1604. For questions on technical issues,
contact Jane Roberts, Leasing Division,
at [email protected], or at (805)
389–7836.
SUPPLEMENTARY INFORMATION: This
proposed rule completely rewrites the
existing regulations at 30 CFR part 256,
Leasing of Sulphur or Oil and Gas and
Bonding Requirements in the Outer
Continental Shelf (OCS). The major
components of part 256 include: (1) The
5-Year Leasing Program mandated by
section 18 of the OCS Lands Act, 43
U.S.C. 1344; (2) preparing for a lease
sale; (3) issuing, maintaining, and
ending a lease; and (4) bonding
requirements. The MMS is proposing to
reorganize and reorder the regulations
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Federal Register / Vol. 74, No. 100 / Wednesday, May 27, 2009 / Proposed Rules
last rewritten in 1982 to reflect the
leasing process more efficiently, as it
has evolved over the past 26 years. This
proposal would eliminate several
sections of existing text as redundant or
unnecessary. Redundant sections
include subpart D, Joint Bidding, of 30
CFR part 260. We do not intend these
proposed changes to alter existing
requirements concerning joint bidders.
Some new sections would standardize
or clarify practices that may not have
been uniform in all three OCS regional
offices. A new section (§ 256.621) on
lease term pipelines was added using
the language in 30 CFR part 250, subpart
J, final rule at § 256.62(g). Other sections
clarify processes required by legislation,
enacted since these regulations were last
rewritten, such as the Federal Oil and
Gas Royalty Simplification and Fairness
Act of 1996, concerning pro rata liability
for monetary obligations; or by recently
promulgated regulations, such as the
Department of the Interior’s (DOI) nonprocurement debarment rules. There are
also changes that will assist MMS in
meeting its stewardship responsibilities
and its role as a regulator. Other changes
include: (1) Stating in the rule at
§ 256.500(b) that for the purposes of an
area-wide bond, ‘‘area-wide’’ refers to
the limits of a planning area as defined
and administered by MMS; and (2)
information from lessees is now
required to help assess bonding for
decommissioning of OCS facilities and
to assess other liabilities associated with
decommissioning.
The MMS published a final rule in the
Federal Register on September 12, 2008
(73 FR 52917), to implement section
104(c) of the Gulf of Mexico Energy
Security Act of 2006 (GOMESA), Public
Law 109–432. It was designated subpart
N, §§ 256.90 through 256.95. We have
redesignated subpart N to subpart I,
§§ 256.900 through 256.905. We have
added GOMESA definitions for Bonus
or royalty credit, Central planning area,
Coastline, Desoto Canyon OPD, Destin
Dome OPD, Eastern planning area, and
Pensacola OPD. We have included a
table in § 256.401 for ease in
determining what evidence MMS
requires to qualify a bidder and/or
lessee from various entities, including
several additional business
organizational forms that now exist in
the offshore industry.
We propose to retain tables related to
bonding for the same reason. The
following derivation tables track the
current regulations, section by section,
to the proposed rule sections. Most of
the proposed changes clarify regulatory
language. The tables also list other
reasons for changes.
DERIVATION TABLE FOR 30 CFR PART 250—OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER CONTINENTAL
SHELF
Current regulations section
Proposed rule section
Nature of change
250.1717(e) ...................................
New requirement for submission of expense information on plugging
and abandonment.
New requirement for submission of expense information on platform
removal.
New requirement for submission of expense information on site clearance.
250.1729(d) ...................................
250.1743(b)(8) ...............................
DERIVATION TABLE FOR 30 CFR PART 256—LEASING OF SULPHUR OR OIL AND GAS AND BONDING REQUIREMENTS IN
THE OUTER CONTINENTAL SHELF
Current regulations section
Proposed rule section
Subpart A—Outer Continental Shelf
Oil, Gas, and Sulphur Management, General.
256.0 ...............................................
Subpart A—General Provisions ....
Redesignated.
256.100(a) .....................................
256.101 ..........................................
256.102 ..........................................
........................................................
........................................................
256.103 ..........................................
........................................................
Updated.
New section.
Simplified.
Eliminated as unnecessary to state policy from the Act.
Eliminated as redundant to the Act.
Eliminated unnecessary terms.
Eliminated as unnecessary, as any cross-references are included in
the appropriate section.
Simplified language.
Simplified language.
Eliminated as repetitive with 30 CFR part 252.
Simplified language and reorganized.
Simplified language.
Clarified name.
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256.1
256.2
256.4
256.5
256.7
...............................................
...............................................
...............................................
...............................................
...............................................
256.8 ...............................................
256.10(a) .........................................
256.10(b) through (d) ......................
256.11 .............................................
256.12 .............................................
Subpart B—Oil and Gas Leasing
Program.
256.16 .............................................
256.17 .............................................
256.19 .............................................
256.20 .............................................
Subpart C—Reports From Federal
Agencies.
256.22.
Subpart D—Call for Information and
Nominations.
256.23 .............................................
256.25 .............................................
Subpart E—Area Identification and
Tract Size.
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256.202 ..........................................
256.100(b) .....................................
........................................................
256.630 ..........................................
256.206 ..........................................
Subpart B—Oil and Gas 5-Year
Leasing Program.
256.200–202 ..................................
256.203–205 ..................................
256.201 ..........................................
256.202(c) ......................................
........................................................
Subpart
Sale.
256.300
256.302
Subpart
Sale.
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Nature of change
Simplified language and reorganized.
Simplified.
Simplified.
Simplified.
Eliminated as repetitive with the Act.
C—Preparing for a Lease
Reorganized, see below.
..........................................
..........................................
C—Preparing for a Lease
Reorganized.
Simplified.
Reorganized in proposed subpart C.
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DERIVATION TABLE FOR 30 CFR PART 256—LEASING OF SULPHUR OR OIL AND GAS AND BONDING REQUIREMENTS IN
THE OUTER CONTINENTAL SHELF—Continued
Current regulations section
Proposed rule section
256.26 .............................................
256.28 .............................................
Subpart F—Lease Sales .................
256.301 ..........................................
256.306 ..........................................
Subpart C—Preparing for a Lease
Sale.
256.303 ..........................................
256.304, 305 ..................................
256.306 ..........................................
........................................................
Subpart D—Issuance of a Lease.
256.400 ..........................................
256.402(b), (c) ...............................
256.402(a), 403 .............................
256.29 .............................................
256.31 .............................................
256.32 .............................................
256.32(e) .........................................
Subpart G—Issuance of Leases .....
256.35 .............................................
256.35(c) .........................................
256.37(a), (b) ..................................
256.37(c)
256.38 .............................................
256.40 .............................................
256.600,601 ...................................
256.602,603
........................................................
........................................................
256.41 .............................................
256.41(d) .........................................
256.43 .............................................
256.43(a) .........................................
256.44 .............................................
256.46(a), (b) ..................................
256.46(c) through (g) ......................
256.411,412 ...................................
256.414 ..........................................
256.411–413 ..................................
........................................................
256.402 ..........................................
256.410 ..........................................
256.401 ..........................................
256.46(h) .........................................
256.402(b) .....................................
256.402(a), 403 .............................
256.404 ..........................................
256.47 .............................................
256.47(c) .........................................
256.411(c), (d); 416; 420 ...............
256.416(c) ......................................
256.47(e)(1), (e)(3) ..........................
256.417 ..........................................
256.47(f) ..........................................
256.420(b) .....................................
256.47(g) .........................................
256.420(c) ......................................
256.49 .............................................
256.420 ..........................................
256.50 .............................................
Subpart H—Rentals and Royalties
[Reserved].
Subpart I—Bonding .........................
256.421 ..........................................
........................................................
256.52 .............................................
Subpart E—Financial Accountability and Risk Management.
256.500 ..........................................
256.52(e) .........................................
256.521 ..........................................
256.52(f), (g) ...................................
256.502 ..........................................
256.53 .............................................
256.53(d) .........................................
256.501 ..........................................
256.510 ..........................................
256.54 .............................................
256.503 ..........................................
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256.503(b) .....................................
256.504 ..........................................
256.55
256.56
256.57
256.58
.............................................
.............................................
.............................................
.............................................
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256.505
256.520
256.512
256.511
256.522
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..........................................
..........................................
..........................................
..........................................
..........................................
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Nature of change
Reorganized.
Reorganized.
Reorganized in proposed subpart C.
Simplified.
Reorganized.
Simplified language.
Eliminated as relevant time period has passed.
Reorganized, see below.
Simplified language and reorganized.
Simplified language and reorganized.
New sections to require compliance with new government-wide/DOI
non-procurement debarment rules covering principals.
Simplified language, clarified terminology, and reorganized. The 5year requirement codifies provision in Form MMS–2006 (12/87).
Eliminated as unnecessary section title.
Eliminated as redundant. Any definitions will be in § 256.103, Definitions.
Simplified and eliminated unnecessary language, reorganized.
Simplified language.
Simplified language and reorganized.
Eliminated unnecessary definitions.
Simplified language.
Simplified language.
Simplified language, added detail for clarity, and included additional
business organizational forms that exist offshore.
Simplified language.
New sections to require compliance with new government-wide/DOI
non-procurement debarment rules covering transactions at tier
below principals.
New section with timeframe for notification of certain business
changes to keep lease records accurate and up-to-date.
Simplified language and eliminated some as unnecessary.
Simplified language and added two options with respect to high bids,
if tied.
Simplified language and reorganized delegation of authority from the
Secretary to the Director for reconsideration of rejected bids.
Clarified that deferred bonuses must be paid within 5 years per 43
U.S.C. 1337(a)(2).
Clarified that successful bidder may be held liable for full bid amount
under certain circumstances.
Discussion of form for other minerals eliminated as redundant within
30 CFR part 281.
Simplified.
Eliminated as unnecessary as never used.
Reorganized, see below.
The MMS may adjust the amount of general bonds in the future by
using the Implicit Price Deflator for Gross Domestic Product.
Changed period for providing additional bond coverage from 6
months to 45 days.
Requires 115 percent of bond value if using Treasury securities to
meet new value fluctuation requirements from Treasury Department.
Clarified minimum level of bond for specific activity.
Separated provisions concerning supplemental bond from those concerning bond level changes due to leave activity. New provision to
allow MMS to require demonstration of bond sufficiency.
Specified that the bond guarantees all non-monetary lease obligations.
New section to retain right to require electronic filing of bonds after
90-day notice.
New section clarifies whose non-monetary lease obligations must be
covered.
New section clarifies lessee/operator bond.
Simplified.
Simplified.
Clarified language and eliminated imprecise use of term, indemnity.
Clarified and separated termination of period of liability and cancellation of a bond.
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DERIVATION TABLE FOR 30 CFR PART 256—LEASING OF SULPHUR OR OIL AND GAS AND BONDING REQUIREMENTS IN
THE OUTER CONTINENTAL SHELF—Continued
Current regulations section
Proposed rule section
256.59 .............................................
256.59(e) and (g) ............................
Subpart J—Assignments, Transfers, and Extension.
256.523.
256.524, 525 ..................................
256.526.
Subpart F—Maintaining a Lease ...
256.605 ..........................................
256.606 ..........................................
256.610 ..........................................
256.62(a) .........................................
256.611 ..........................................
256.62(b) .........................................
256.62(c) .........................................
256.62(d) .........................................
256.62(e) .........................................
256.62(f) ..........................................
256.62(g) .........................................
256.63 .............................................
256.64, 256.68 ................................
256.64(a) .........................................
256.64(a)(7) .....................................
256.64(a)(8) .....................................
256.64(e) through (h) ......................
256.64(i) ..........................................
256.65 .............................................
256.67 .............................................
256.68 .............................................
256.70 .............................................
256.71 .............................................
256.72 .............................................
256.412 ..........................................
256.617 ..........................................
256.616 ..........................................
256.618 ..........................................
256.616 ..........................................
256.621 ..........................................
256.104 ..........................................
256.613 ..........................................
256.612 ..........................................
256.620(a).
256.620(b).
256.614.
256.619.
256.612(b) .....................................
256.614 ..........................................
256.613(a) .....................................
256.601(a) .....................................
256.601(b) .....................................
256.601(c) ......................................
256.601(d) .....................................
256.601(a) .....................................
Subpart G—Ending a Lease .........
256.700 ..........................................
256.73 .............................................
Subpart K—Termination of Leases
256.76 .............................................
256.77 .............................................
Subpart L—Section 6 Leases .........
256.701 ..........................................
256.702 ..........................................
........................................................
256.79, 256.80
Subpart M—Studies ........................
256.82
........................................................
Subpart N—Bonus or Royalty Credits for Exchange of Certain
Leases.
256.90—256.95 ...............................
Appendix A to part 256—Oil and
Gas Cash Bonus Bid.
Subpart H [RESERVED].
Subpart I—Bonus or Royalty Credits for Exchange of Certain
Leases.
256.900—256.905.
........................................................
Nature of change
Reorganized.
Reorganized, see below.
New section to clarify obligations of record title owners.
New section to clarify obligations of operating rights owners.
New section to iterate statutory requirement for approval prior to sale,
exchange, assignment or transfer of a lease.
Simplified language and clarified that can disapprove assignment if
assignor and/or assignee has unsatisfied obligations.
Included in section on joint bidding.
Simplified language.
Simplified language.
Simplified language.
Simplified language.
New section on lease term pipelines.
Redesignated in Subpart A.
Reorganized and clarified.
Clarified that subleases restricted to 2-depth levels.
Reorganized and clarified.
Reorganized and clarified.
Reorganized and clarified
Reorganized and clarified.
Reorganized and clarified.
Reorganized and clarified.
New section to clarify effect of production from a unitized lease.
Reorganized and clarified.
Reorganized, see below
New section to clarify what happens if you do not take certain actions
to maintain a lease.
Simplified.
Simplified.
Eliminated as unnecessary repetition of 43 U.S.C. 1335(b). Leases of
other minerals covered in 30 CFR part 281.
Eliminated as unnecessary recitation of internal procedures.
Redesignated.
Eliminated as unnecessary repetition of bid form.
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DERIVATION TABLE FOR 30 CFR PART 260—OUTER CONTINENTAL SHELF OIL AND GAS LEASING, SUBPART D
Current regulations section
Proposed rule section
Nature of change
Part 260—Outer Continental Shelf
Leasing, Subpart D—Joint Bidding.
260.301–303
256.411 ..........................................
Removed subpart D from part 260. Proposed § 256.411 simplified
language and eliminated duplicative provisions of current
§§ 256.38–256.44.
Procedural Matters: Regulatory
Planning and Review (Executive Order
(E.O.) 12866)
This proposed rule is not a significant
rule as determined by the Office of
Management and Budget (OMB) and is
not subject to review under E.O. 12866.
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This proposed rule primarily rewrites
existing regulations that govern the
offshore Federal leasing process for
sulphur and oil and gas subject to the
exclusive jurisdiction of the United
States. The rule is rewritten in simple,
clear language, and reorganized to
reflect the steps in the leasing process
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as they have evolved. Minor changes are
proposed to make certain practices
uniform among the three OCS regional
offices.
(1) This proposed rule would not have
an effect of $100 million or more on the
economy. It would not adversely affect
in a material way the economy,
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productivity, competition, jobs, the
environment, public health or safety, or
State, local, or tribal governments or
communities. The proposed rule would
rewrite 30 CFR part 256 in plain
language, and would contain virtually
the same reporting and recordkeeping
requirements and attendant costs as the
current regulations. A cost-benefit and
economic analysis is not required.
(2) This proposed rule would not
create a serious inconsistency or
otherwise interfere with an action taken
or planned by another agency.
(3) This proposed rule would not alter
the budgetary effects of entitlements,
grants, user fees, or loan programs or the
rights or obligations of their recipients.
Nominal user fees are not material in
size or nature. The rule proposes a new
fee for recording certain secondary lease
interests, $27; continues existing fees for
submitting non-required documents,
$27; and for requesting an approval of
the assignments or transfers of certain
lease interests, $186.
(4) This proposed rule would not raise
novel legal or policy issues. The rule
largely rewrites existing regulations.
Regulatory Flexibility Act
The Department of the Interior
certifies that this proposed rule would
not have a significant economic effect
on a substantial number of small entities
under the Regulatory Flexibility Act (5
U.S.C. 601 et seq.).
This proposed rule would affect
lessees and potential lessees, of which
there are approximately 130 different
companies. These companies are
generally classified under the North
American Industry Classification
System (NAICS) Code 211111, which
includes companies that extract crude
petroleum and natural gas. For this
NAICS code classification, a small
company is one with fewer than 500
employees. The MMS estimates that of
the 130 lessees and operators that
explore for and produce oil and gas on
the OCS, approximately 90 are small
businesses (70 percent).
The primary economic effect of this
rule on small businesses would be the
cost associated with information
collection (IC) activities. The rule
proposes to rewrite 30 CFR part 256 and
would add three new requirements for
30 CFR part 250, subpart Q. The
proposed rule contains virtually the
same burden hour requirements and
non-hour cost burdens as the current
regulations. The changes in reporting
requirements would not significantly
increase the IC burden on respondents—
large or small. The MMS estimates an
annual increase of 2,396 hours in the
paperwork burden from that imposed by
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the current regulations. There would
also be one new $27 non-hour cost
burden for recording certain secondary
lease interests resulting in an annual
increase of $18,900 ($27 × an estimated
700 filings). A Regulatory Flexibility
Analysis is not required. Accordingly, a
Small Entity Compliance Guide is not
required.
Your comments are important. The
Small Business and Agriculture
Regulatory Enforcement Ombudsman
and 10 Regional Fairness Boards were
established to receive comments from
small businesses about Federal agency
enforcement actions. The Ombudsman
will annually evaluate the enforcement
activities and rate each agency’s
responsiveness to small business. If you
wish to comment on the actions of
MMS, call 1–888–734–3247. You may
comment to the Small Business
Administration without fear of
retaliation. Allegations of
discrimination/retaliation filed with the
Small Business Administration will be
investigated for appropriate action.
Federalism (E.O. 13132)
Under the criteria in E.O. 13132, this
proposed rule does not have sufficient
Federalism implications to warrant the
preparation of a Federalism Assessment.
This proposed rule would not
substantially and directly affect the
relationship between the Federal and
State governments. To the extent that
State and local governments have a role
in OCS activities, this proposed rule
would not affect that role. A Federalism
Assessment is not required.
Small Business Regulatory Enforcement
Fairness Act
The proposed rule is not a major rule
under 5 U.S.C. 804(2) the Small
Business Regulatory Enforcement
Fairness Act. This proposed rule:
a. Would not have an annual effect on
the economy of $100 million or more.
b. Would not cause a major increase
in costs or prices for consumers,
individual industries, Federal, State, or
local government agencies, or
geographic regions.
c. Would not have significant adverse
effects on competition, employment,
investment, productivity, innovation, or
the ability of U.S.-based enterprises to
compete with foreign-based enterprises.
Consultation With Indian Tribes (E.O.
13175)
Under the criteria in E.O. 13175, we
have evaluated this proposed rule and
determined that it has no potential
effects on Federally recognized Indian
tribes. There are no Indian or tribal
lands in the OCS.
Unfunded Mandates Reform Act
This proposed rule would not impose
an unfunded mandate on State, local, or
tribal governments or the private sector
of more than $100 million per year. The
proposed rule would not have a
significant or unique effect on State,
local, or tribal governments or the
private sector. A statement containing
the information required by Unfunded
Mandates Reform Act (2 U.S.C. 1531 et
seq.) is not required.
Takings Implication Assessment (E.O.
12630)
Under the criteria in E.O. 12630, this
proposed rule does not have significant
takings implications. The proposed rule
is not a governmental action capable of
interference with constitutionally
protected property rights. A Takings
Implication Assessment is not required.
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Civil Justice Reform (E.O. 12988)
This rule complies with the
requirements of E.O. 12988.
Specifically, this rule:
(a) Meets the criteria of section 3(a)
requiring that all regulations be
reviewed to eliminate errors and
ambiguity and be written to minimize
litigation; and
(b) Meets the criteria of section 3(b)(2)
requiring that all regulations be written
in clear language and contain clear legal
standards.
Paperwork Reduction Act (PRA) of
1995
The proposed rule contains a
collection of information that is being
submitted to OMB for review and
approval under 44 U.S.C. 3501 et seq.
As part of our continuing effort to
reduce paperwork and respondent
burdens, MMS invites the public and
other Federal agencies to comment on
any aspect of the reporting and
recordkeeping burden. If you wish to
comment on the Information Collection
(IC) aspects of revised 30 CFR parts 250
and 256, you may send your comments
directly to OMB (see the ADDRESSES
section of this notice). Please identify
your comments with Docket ID: MMS–
2007–OMM–0069 in the subject line.
Send a copy of your comments to the
Regulations and Standards Branch
(RSB), Attn: Comments; 381 Elden
Street, MS–4024; Herndon, Virginia
20170–4817. You may obtain a copy of
the supporting statement for the IC by
contacting the Bureau’s Information
Collection Clearance Officer at (202)
208–7744.
The PRA provides that an agency may
not conduct or sponsor, and a person is
not required to respond to, an IC unless
it displays a currently valid OMB
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control number. The OMB is required to
make a decision concerning the IC
contained in these proposed regulations
between 30 to 60 days after publication
of this document in the Federal
Register. Therefore, a comment to OMB
is best assured of having its full effect
if OMB received it by June 26, 2009.
This does not affect the deadline for the
public to comment to MMS on the
proposed regulations.
The title of the IC for this proposed
rule is 30 CFR Part 256, Leasing of
Sulphur or Oil and Gas and Bonding
Requirements in the Outer Continental
Shelf, 30 CFR Part 250, Subpart Q, and
30 CFR Part 260, Outer Continental
Shelf Oil and Gas Leasing. The MMS
estimates there are approximately 130
respondents (Federal oil and gas or
sulphur lessees and/or operators).
Responses to this IC are required to
obtain or retain a benefit and are
mandatory. The frequency of response
varies, but is primarily on occasion. The
IC does not include questions of a
sensitive nature. The MMS will protect
proprietary information according to
section 26 of the OCS Lands Act; 30
CFR 256.100(b) of the proposed
regulation; the Freedom of Information
Act (5 U.S.C. 552), its implementing
regulations at 43 CFR part 2; and 30 CFR
250.197, Data and information to be
made available to the public or for
limited inspection.
This IC is a total rewrite of 30 CFR
part 256, Leasing of Sulphur or Oil and
Gas and Bonding Requirements in the
Outer Continental Shelf and adds three
new requirements to 30 CFR part 250,
subpart Q, Decommissioning.
The IC required by the current 30 CFR
part 250, subpart Q, Decommissioning,
is approved under OMB Control
Number 1010–0142. There are three
new proposed requirements that affect
subpart Q, for a total of 820 burden
hours. The MMS will use the
information collected for these proposed
requirements to help MMS assess the
abandonment liability for each lease.
This abandonment liability will be used
to set supplemental bond requirements
for each operator, and these
supplemental bonds are used to protect
the Federal Government against defaults
should an operator go into bankruptcy.
When final regulations are promulgated,
the IC burdens for the 30 CFR part 250,
subpart Q requirements will be
incorporated into its respective IC for
that regulation (1010–0142, 17,991
burden hours, expiration 11/30/10).
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The IC required by the current 30 CFR
part 256 regulations is approved under
OMB Control Number 1010–0006. There
are several new requirements that will
impose an additional 1,576 burden
hours and $18,900 in non-hour cost
burdens to the already approved hours
under 1010–0006 (17,103 burden hours,
$603,125 non-hour cost burdens,
expiration 5/31/2010). The MMS will
use the information collected under 30
CFR part 256 to determine if applicants
are qualified to hold leases in the OCS.
Specifically, MMS uses the information
to:
• Verify the qualifications of a bidder
on an OCS lease sale. Once the required
information is filed with MMS, a
qualification number is assigned to the
bidder so that duplicate information is
not required on subsequent filings.
• Develop the semiannual List of
Restricted Joint Bidders. This identifies
parties ineligible to bid jointly with
each other on OCS lease sales, under
limitations established by the Energy
Policy and Conservation Act of 1975.
• Ensure the qualification of
assignees and track operators on
leaseholds. Once a lease is awarded, the
transfer of a lessee’s interest to another
qualified party must be approved by an
MMS regional director, regional
supervisor, or regional manager (Pacific
Region only). Also, a lessee may
designate an operator to act on the
lessee’s behalf. This designation must be
approved by MMS before the designated
operator may begin operations.
• Document that a leasehold or
geographical subdivision has been
surrendered by the record title holder.
• Keep track of who owns which
lease term pipeline since they are not
currently documented on submitted
information. Also, during the
decommissioning process, if operators
have changed since the beginning of the
lease—decommissioning operations are
worked between the companies. But,
after all decommissioning activities are
complete, if a safety hazard still
remains, then MMS will need to know
that the responsibility for compliance
lies with the original operator.
• Update the corporate database that
is used to determine what leases are
available for a lease sale and the
ownership of all OCS leases. Nonproprietary information is also publicly
available from the MMS corporate
database via the Internet.
The MMS also uses various forms
relating to this subpart. The forms allow
lessees to submit the required
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Sfmt 4702
information in a standardized format
that helps MMS process the data in a
more timely and efficient manner. There
are five forms associated with this IC,
MMS–150, MMS–151, MMS–152,
MMS–2028, and MMS–2028A. The first
three forms are used for assignment
purposes and the last two forms are
used to hold the surety liable for the
obligations and liability of the
principal/lessee or operator.
The proposed rule imposes changes to
the existing IC hour burdens. These
changes are:
• Submit expense information on
plugging and abandonment (+520
hours).
• Submit expense information on
platform removal (+150 hours).
• Submit expense information on site
clearance (+150 hours).
• Notify MMS if you or your
principals are excluded, disqualified, or
convicted of a crime—Federal nonprocurement debarment; request
exception (+75 hours).
• Provide acceptable bond for
payment of a deferred bonus (+1⁄4 hour).
• Submit statement excluding
payment obligations of co-lessee or
designated operator (+1 hour).
• Submit report to MMS listing
remaining lease term pipelines,
including decommissioned pipelines on
lease and indicate which pipelines
remain as lease term (+1,500 hours).
When the rule becomes effective, the
new collection will replace the current
one for 30 CFR part 256.
On August 25, 2008 (73 FR 49943), we
also updated cost recovery fees.
Therefore, non-hour cost burdens have
increased by $55,450.
We estimate the total combined (30
CFR parts 250 and 256) annual burden
and non-hour cost burdens for this
proposed rule to be 19,499 burden hours
and $677,475 non-hour cost burdens.
Therefore, the rule adds a net 2,396
burden hours and $18,900 non-hour
cost burdens to the already approved IC
burdens. Except for the items identified
as NEW in the following chart, the
burden estimates shown are those that
are estimated for the current 30 CFR
part 256 regulations. The public has had
numerous opportunities to comment on
the current estimates during the process
to renew the OMB approval of the IC
requirements in current regulations.
The following table details the IC
burden for the proposed rulemaking
requirements.
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30 CFR part 250, subpart Q
Reporting and recordkeeping requirements
Hour burden
Average number of
annual responses
NEW 250.1717(e) .......................
NEW Submit expense information on plugging
and abandonment.
NEW Submit expense information on platform
removal.
NEW Submit expense information on site
clearance.
1 ..................
520 responses ...............
520
1 ..................
150 responses ...............
150
1 ..................
150 responses ...............
150
............................................................................
.....................
820 responses ...............
820
Reporting and recordkeeping requirements
Hour burden
Average number of
annual responses
NEW 250.1729(d) .......................
NEW 250.1743(b)(8) ...................
Total .....................................
Citation 30 CFR part 256 *
Annual burden
hours
Annual burden
hours
Non-Hour Cost Burdens
Subparts A and B
Subpart A 256.104 ......................
Service Fees .....................................................
Fees covered individually throughout
subpart.
0
Subpart B: 201; 202; 203; 204 ...
Submit nominations, suggestions, and relevant
information in response to request for comments on proposed 5-year leasing program,
including information from States & local
governments/industry/Federal agencies and
others.
4 ..................
1 response .....................
4
Subtotal ................................
............................................................................
.....................
1 response .....................
4
Submit response to Calls for Information and
Nominations on areas proposed for leasing
in the 5-year program, including information
from States/local governments.
States or local governments submit comments/
recommendations on size, timing, or location
of proposed lease sale.
4 ..................
1 response .....................
4
4 ..................
10 responses .................
40
............................................................................
.....................
11 responses .................
44
Establish company file for qualification; submit
qualifications for lessee/bidder.
NEW Notify MMS if you or your principals are
excluded, disqualified, or convicted of a
crime—Federal non-procurement debarment
and suspension system; request exception.
2 ..................
104 responses ...............
208
1.5 ...............
50 ...................................
75
404 ..............................................
Notify MMS of all mergers, name changes, or
change of business.
Requirement not considered IC under 5
CFR 1320.3(h)(1)
0
410 ..............................................
Submit bids and required information ...............
5 ..................
10,000
410(d); 417 ..................................
Request reconsideration of bid decision ...........
Requirement not considered IC under 5
CFR 1320.3(h)(9).
0
411(a)(2); 412 .............................
File statement or detailed report of production
2 ..................
200
411(b) ..........................................
Submit appeal due to restricted joint bidders
list.
Request exemption from bidding restrictions;
submit appropriate information.
Requirement not considered IC under 5
CFR 1320.3(h)(9).
Requirement not considered IC under 5
CFR 1320.3(h)(9).
0
Notify MMS of tie bid decision; file agreement
to accept joint lease on tie bids.
Execute lease (includes submission of evidence of authorized agent and request for
dating of leases); submit supporting data.
NEW Provide acceptable bond for payment of
a deferred bonus. We do not expect this to
occur, hence minimal burden.
3.5 ...............
2 agreements ................
7
1 ..................
852 leases .....................
852
15 mins. ......
1 response .....................
15 mins.
Subpart C
300 ..............................................
304(a) ..........................................
Subtotal ................................
Subpart D
400; 401 ......................................
NEW 402(a); 403 ........................
414 ..............................................
mstockstill on PROD1PC66 with PROPOSALS
416(c) ..........................................
420; 421 ......................................
NEW 420(b) ................................
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2,000 bids ......................
100 responses ...............
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Citation 30 CFR part 256 *
Subtotal ................................
Reporting and recordkeeping requirements
Hour burden
Average number of
annual responses
Annual burden
hours
............................................................................
.....................
3,109 responses ............
11,342 (rounded) hours
.25 ...............
124 forms ......................
31
3.5 ...............
165 submissions ............
578 (rounded)
2 ..................
10 submissions ..............
20
1 ..................
1 exclusion statement ...
1
.25 ...............
136 forms ......................
34
19 ................
45 submissions ..............
855
378 requests ..................
189
Subpart E
500(a); 501; 503; .........................
501; 505; 510 ..............................
502 ..............................................
NEW 504 .....................................
510 ..............................................
511 ..............................................
511(c)(6); 522(b); 523 .................
511(d);
520;
523(a)(2);.
521;
522(b);
512 ..............................................
520 ..............................................
525(b) ..........................................
Subtotal ................................
Submit OCS Mineral Lessee’s and Operator’s
Bond (Form MMS–2028), required information, and surety notifications.
Demonstrate financial worth/ability to carry out
present and future financial obligations, request approval of another form of security,
or request reduction in amount of supplemental bond required.
Provide U.S. Treasury securities or other types
of security instruments, including authority
for MMS to sell securities, relevant information, and related or subsequent actions.
NEW Submit statement excluding payment obligations of co-lessee(s) or designated operator(s).
Submit OCS Mineral Lessee’s and Operator’s
Supplemental Plugging and Abandonment
Bond (Form MMS–2028A) w/required information; upon request, demonstrate sufficiency; request reduction.
Provide third-party indemnity; financial information/statements; additional bond info; executed guarantor agreement and supporting
information/documentation.
Notify MMS and others, and request MMS approval to terminate period of liability or cancel bond or other form of security.
⁄
12
................
Furnish replacement bond or provide alternate form of security. Burden included above
with bond or alternate forms of security
0
Request approval to withdraw funds from RUE/
ROW decommissioning account.
Notify MMS and others of bond lapse or action
filed alleging lessee, surety, or guarantor is
insolvent or bankrupt.
Provide information to demonstrate lease will
be brought into compliance.
12 ................
1 abandonment account
12
1 ..................
3 notices ........................
3
16 ................
5 responses ...................
80
............................................................................
.....................
868 responses ...............
1,803
Subpart F
Subparts E and F: 501; 601; 603
Request approval for various operations or submit plans or applications. Burden included
with other approved collections for 30 CFR Part 250 (1010–0114/subpart A, 1010–
0151/subpart B, 1010–0141/subpart D, 1010–0142/subpart Q, and 1010–0149/subpart
I)
0
Subpart F: 610; 611; 613(a);
614; 615; 617; 619.
File application and required information for
assignment of record title interest (Form
MMS–150) (includes sell, exchange, transfer); specify effective date.
2,063
1 hour ..........
2,063 forms ...................
$186 fee × 2,063 forms = $383,718
mstockstill on PROD1PC66 with PROPOSALS
611; 612; 613(a); 614; 615; 617;
619.
File application and required information for
assignment of operating interest (Form
MMS–151) (includes sell, exchange, transfer); specify effective date.
1 hour ..........
937 forms ......................
937
$186 fee × 937 forms = $174,282
620(a) ..........................................
File required instruments creating or transferring working interests, etc., for record purposes.
NEW FEE ....................................................................................................................
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1 hour ..........
700 filings ......................
700
NEW $27 fee × 700 filings = $18,900
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Citation 30 CFR part 256 *
Reporting and recordkeeping requirements
620(b) ..........................................
Submit ‘‘non-required’’ documents, for record
purposes that respondents want MMS to file
with the lease document.
Average number of
annual responses
Hour burden
Accepted on behalf of lessees as a
service, MMS doesn’t require/need.
Annual burden
hours
0
$27 fee × 3,725 filings = $100,575
NEW 256.621 ..............................
NEW After assignment of lease or new designation of operator, submit report to MMS
listing remaining Lease Term P/Ls, including
decommissioned P/Ls, on lease; indicate
which P/Ls remain as Lease Term P/Ls.
1 ..................
1,500 L/T P/L listing reports.
1,500
Subtotal ................................
............................................................................
.....................
5,200 responses ............
5,200
$677,475 non-hour cost burdens
Subpart G
701; 902(a)(5) .............................
240
1 ..................
240 relinquishment
forms.
1 submission .................
.....................
241 responses ...............
241
Request a bonus or royalty credit and submit
supporting documentation.
Request approval to transfer bonus or credit to
another party with supporting information.
1 ..................
30 ...................................
30
1 ..................
15 ...................................
15
Subtotal ................................
............................................................................
.....................
45 responses .................
45
Total Burdens .......................
............................................................................
.....................
10,295 Responses ........
19,499
702 ..............................................
Subtotal ................................
File Form MMS–152 to request relinquishment
of lease.
Comment on lease cancellation (MMS expects
1 in 10 years).
1 ..................
............................................................................
1
Subpart I
902(a) ..........................................
905 ..............................................
$677,475 Non-Hour Cost Burdens
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*A few sections in 30 CFR part 260 also contain references to IC requirements in 30 CFR part 256 that are detailed in this table.
The MMS specifically solicits
comments on the following questions:
(1) Is the IC useful and necessary for
MMS to perform its functions properly?
(2) Are the estimates of the burden
hours of the IC reasonable?
(3) Do you have any suggestions that
would enhance the quality, clarity, or
usefulness of the information to be
collected?
(4) Is there a way to minimize the IC
burden on those who respond,
including the use of appropriate
automated electronic, mechanical, or
other forms of information technology?
In addition, the PRA requires agencies
to estimate the total annual reporting
and recordkeeping non-hour cost
burden resulting from the IC. With the
exception of the two currently approved
service fees—record title and/or
operating rights (transfer), and nonrequired document filing fees—MMS
has identified one new non-hour cost
burden for $27, filing required
instruments creating or transferring
working interests (see the burden table).
This fee would only be a requirement if
respondents want to submit documents
for record purposes to file with the lease
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document. We consider this a service to
the respondent. We have identified no
other non-hour paperwork cost burdens
and we solicit your comments on this
item. For reporting and recordkeeping
only, your response should split the cost
estimate into two components: (a) Total
capital and start-up cost component and
(b) annual operation, maintenance, and
purchase of services component. Your
estimates should consider the costs to
generate, maintain, and disclose or
provide the information. You should
describe the methods you use to
estimate major cost factors, including
system and technology acquisition,
expected useful life of capital
equipment, discount rate(s), and the
period over which you incur costs.
Capital and start-up costs include,
among other items, computers and
software you purchase to prepare for
collecting information; monitoring,
sampling, drilling, and testing
equipment; and record storage facilities.
Generally, your estimates should not
include equipment or services
purchased: (1) Before October 1, 1995;
(2) to comply with requirements not
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Sfmt 4702
associated with the IC; (3) for reasons
other than to provide information or
keep records for the Government; or (4)
as part of customary and usual business
or private practices.
National Environmental Policy Act
This rule does not constitute a major
Federal action significantly affecting the
quality of the human environment. The
MMS has analyzed this proposed rule
under the criteria of the National
Environmental Policy Act and 516
Departmental Manual 15. This proposed
rule meets the criteria set forth in 516
Departmental Manual 2 (Appendix 1.10)
for a Departmental ‘‘Categorical
Exclusion’’ in that this proposed rule is
‘‘* * * of an administrative, financial,
legal, technical, or procedural nature
and whose environmental effects are too
broad, speculative, or conjectural to
lend themselves to meaningful analysis
* * *.’’ This proposed rule also meets
the criteria set forth in 516
Departmental Manual 15.4(C)(1) for an
MMS ‘‘Categorical Exclusion’’ in that its
impacts are limited to administration,
economic or technological effects.
Further, the MMS has analyzed this
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proposed rule to determine if it meets
any of the extraordinary circumstances
that would require an environmental
assessment or an environmental impact
statement as set forth in 516
Departmental Manual 2.3, and
Appendix 2. The MMS concluded that
this rule does not meet any of the
criteria for extraordinary circumstances
as set forth in 516 Departmental Manual
2 (Appendix 2).
Data Quality Act
In developing this proposed rule, we
did not conduct or use a study,
experiment, or survey requiring peer
review under the Data Quality Act (Pub.
L. 106–554, app. C § 515, 114 Stat. 2763,
2763A–153–154).
Effects on the Energy Supply (E.O.
13211)
This rule is not a significant energy
action under the definition in E.O.
13211. A Statement of Energy Effects is
not required.
Clarity of This Regulation
We are required by E.O. 12866, E.O.
12988, and by the Presidential
Memorandum of June 1, 1998, to write
all rules in plain language. This means
that each rule we publish must:
(a) Be logically organized;
(b) Use the active voice to address
readers directly;
(c) Use clear language rather than
jargon;
(d) Be divided into short sections and
sentences; and
(e) Use lists and tables wherever
possible.
If you feel that we have not met these
requirements, send us comments by one
of the methods listed in the ADDRESSES
section. To better help us revise the
rule, your comments should be as
specific as possible. For example, you
should tell us the numbers of the
sections or paragraphs that you find
unclear, which sections or sentences are
too long, the sections where you feel
lists or tables would be useful, etc.
mstockstill on PROD1PC66 with PROPOSALS
Public Availability of Comments
Before including your address, phone
number, e-mail address, or other
personal identifying information in your
comment, you should be aware that
your entire comment—including your
personal identifying information—may
be made publicly available at any time.
While you can ask us in your comment
to withhold your personal identifying
information from public review, we
cannot guarantee that we will be able to
do so.
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List of Subjects
30 CFR Part 250
Administrative practice and
procedure, Continental shelf,
Environmental impact statements,
Environmental protection, Pipelines,
Public lands—mineral resources, Public
lands—rights-of-way, Reporting and
recordkeeping requirements.
30 CFR Part 256
Administrative practice and
procedure, Continental shelf,
Environmental protection, Government
contracts, Intergovernmental relations,
Oil and gas exploration, Public lands—
mineral resources, Public lands—rightsof-way, Reporting and recordkeeping
requirements, Surety bonds.
30 CFR Part 260
Continental shelf, Government
contracts, Mineral royalties, Oil and gas
exploration, Public lands—mineral
resources, Reporting and recordkeeping
requirements.
Dated: May 11, 2009.
Ned Farquhar,
Acting Assistant Secretary—Land and
Minerals Management.
For the reasons stated in the
preamble, MMS proposes to amend 30
CFR parts 250, 256, and 260 as follows:
PART 250—OIL AND GAS AND
SULPHUR OPERATIONS IN THE
OUTER CONTINENTAL SHELF
1. The authority citation for part 250
continues to read as follows:
Authority: 31 U.S.C. 9701, 43 U.S.C. 1334.
2. Amend § 250.1717 by:
(A) Revising paragraphs (c) and (d),
and
(B) Adding paragraph (e) to read as
follows:
§ 250.1717 After I permanently plug a well,
what information must I submit?
*
*
*
*
*
(c) Nature and quantities of material
used in the plugs;
(d) If you cut and pull away any
casing string, you must submit:
(1) A description of the methods used,
including information on explosives
used;
(2) Size and amount of casing
removed; and
(3) Casing removed depth.
(e) Expenses of plugging and
abandonment with supporting
documentation.
3. Amend § 250.1729 by:
(A) Revising paragraphs (b) and (c),
and
(B) Adding paragraph (d) to read as
follows:
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§ 250.1729 After I remove a platform or
other facility, what information must I
submit?
*
*
*
*
*
(b) A description of any mitigation
measures you took;
(c) A statement signed by your
authorized representative that certifies
that the types and amount of explosives
you used in removing the platform or
other facility were consistent with those
set forth in the approved removal
application; and
(d) Expenses of removal of the
platform or other approved
decommissioning of the platform with
supporting documentation.
3. Amend § 250.1743 by:
(A) Revising paragraphs (b)(6) and
(b)(7), and
(B) Adding paragraph (b)(8) to read as
follows:
§ 250.1743 How do I certify that a site is
clear of obstructions?
*
*
*
*
*
(b) * * *
(6) The results of the survey,
including a list of any debris removed
or a statement from the trawling
contractor that no objects were
recovered;
(7) A post-trawling job plot or map
showing the trawled area; and
(8) Expenses of site clearance with
supporting documentation.
4. Revise part 256 to read as follows:
PART 256—LEASING OF SULPHUR OR
OIL AND GAS AND BONDING
REQUIREMENTS IN THE OUTER
CONTINENTAL SHELF
Subpart A—General Provisions
Sec.
256.100 Information collection and
proprietary information.
256.101 What are the consequences if I
provide false information?
256.102 What does this part cover?
256.103 Definitions.
256.104 Service fees.
Subpart B—Oil and Gas 5-Year Leasing
Program
256.200 What is the 5-year program?
256.201 Does MMS consult with interested
parties while preparing the 5-year
program?
256.202 How does MMS start the 5-year
program preparation process?
256.203 What does MMS do before
publishing a proposed program?
256.204 How do Governments and citizens
comment on the proposed program?
256.205 What does MMS do before
approving a final program or a
significant revision?
256.206 Does MMS offer blocks in a sale
that is not on the 5-year program
schedule?
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Subpart C—Preparing for a Lease Sale
256.300 What is a call for information?
256.301 What does MMS do with the
information from the call?
256.302 What does MMS do if identified
areas are within 3 miles of the seaward
boundary of a coastal State?
256.303 What happens with an approved
proposed notice of sale?
256.304 What role do affected States have?
256.305 What does MMS do with
comments and recommendations
received on the proposed notice?
256.306 How does MMS conduct a lease
sale?
Subpart D—Issuance of a Lease
Qualifications
256.400 Who may become a lessee?
256.401 How do I show that I am qualified
to be a lessee?
256.402 Who may not become a lessee or
acquire an interest in a lease?
256.403 What do the non-procurement
debarment rules require that I do?
256.404 When must I notify MMS of
mergers, name changes, or changes of
business form?
How To Bid
256.410
How do I submit a bid?
Restrictions on Joint Bidding
256.411 Are there restrictions on bidding
with others and do they affect my ability
to bid?
256.412 When must I file a statement of
production?
256.413 How do I determine my production
for purposes of the restricted joint
bidders list?
256.414 Are exemptions from the bidding
restrictions possible?
How Does MMS Act on Bids?
256.416 What does MMS do with my bid?
256.417 What may I do if my bid is
rejected?
Awarding the Lease
256.420 What happens if I am the
successful high bidder?
256.421 When is my lease effective?
Subpart E—Financial Accountability and
Risk Management
mstockstill on PROD1PC66 with PROPOSALS
General Bonds
256.500 What security must I provide when
I obtain my lease?
256.501 Do my general bonding
requirements change as activities
progress on my lease?
256.502 What instruments other than a
surety bond may I use to provide the
required security?
256.503 What general requirements must
my bond or other security meet?
256.504 Must my surety bond cover the
payment obligations of my co-lessees
and designated operators?
256.505 What happens if my co-lessees or
designated operators exclude my
payment obligations from their bond?
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Supplemental Bonds
256.510 Can MMS require that I post a
supplemental bond?
256.511 May I use a third-party guaranty to
meet the supplemental bonding
requirement?
256.512 May I use a lease, right-of-way
(ROW), or right-of-use and easement
(RUE)-specific decommissioning account
to meet the supplemental bonding
requirement?
Changes in Bonding or Security
256.520 What do I do if my bond lapses?
256.521 What happens if the value of my
bond or other security is reduced?
256.522 What happens if my surety wants
to terminate the period of liability of my
bond?
256.523 What happens if my surety wants
to cancel my bond?
256.524 Why might MMS call for forfeiture
of my bond?
256.525 How will I know about this
forfeiture?
256.526 What if correcting my default
requires a change in the amount of my
bond?
Subpart F—Maintaining a Lease
Initial Period of a Lease
256.600 What is the initial period of my oil
and gas lease?
256.601 How may I maintain my oil and gas
lease beyond the initial period?
256.602 What is the initial period of my
sulphur lease?
256.603. How may I maintain my sulphur
lease beyond the initial period?
Lease Obligations
256.605 What are my obligations as a record
title holder?
256.606 What are my rights and obligations
as an operating rights owner?
Transferring Interest in All or Part of a
Lease
256.610 May I sell, exchange, assign, or
otherwise transfer my lease?
256.611 May I assign all or part of my lease
interest?
256.612 May I assign operating rights?
256.613 How do I seek approval of an
assignment?
256.614 How do I transfer the interest of a
deceased leaseholder?
256.615 What if I want to assign interests in
more than one lease at the same time?
256.616 What is the effect of an assignment
on an assignor’s liability?
256.617 May I specify an effective date of
the assignment?
256.618 What is the effect of an assignment
on an assignee’s liability?
256.619 As a restricted joint bidder, may I
assign interest to another restricted joint
bidder?
256.620 Are there any interests I may assign
without MMS approval?
256.621 What reports must I submit for
lease term pipelines when MMS
approves a lease assignment?
Helium
256.630 What must a lessee do if MMS
elects to extract helium from a lease?
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Subpart G—Ending a Lease
256.700 How does a lease end?
256.701 May I end the lease myself?
256.702 Will MMS end my lease?
Subpart H—[Reserved]
Subpart I—Bonus or Royalty Credits for
Exchange of Certain Leases
256.900 Which leases may I exchange for a
bonus or royalty credit?
256.901 How much bonus or royalty credit
will MMS grant in exchange for a lease?
256.902 What must I do to obtain a bonus
or royalty credit?
256.903 How is the bonus or royalty credit
allocated among multiple lease owners?
256.904 How may I use the bonus or royalty
credit?
256.905 How do I transfer a bonus or
royalty credit to another person?
Authority: 31 U.S.C. 9701, 42 U.S.C. 6213,
43 U.S.C. 1334, Pub. L. 109–432.
Subpart A—General Provisions
§ 256.100 Information collection and
proprietary information.
(a) Information collection (IC). (1) The
Office of Management and Budget
(OMB) approved the collection of
information under 44 U.S.C. 3501 et
seq., and assigned OMB Control Number
1010–xxxx. The title of this IC is 30 CFR
part 256, Leasing of Sulphur or Oil and
Gas and Bonding Requirements in the
Outer Continental Shelf and 30 CFR part
260, Outer Continental Shelf Oil and
Gas Leasing. The MMS collects the
information to determine if applicants
seeking to obtain a lease on the Outer
Continental Shelf (OCS) are qualified to
hold such a lease and can meet the
monetary and non-monetary
requirements of a lease. Responses to
this collection are required to obtain or
retain a benefit or are mandatory under
43 U.S.C. 1331 et seq. The MMS will
protect proprietary information
collected according to section 26 of the
OCS Lands Act (OCSLA), 43 U.S.C.
1352, and this section.
(2) The Paperwork Reduction Act of
1995 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.
(3) Send comments regarding any
aspect of the collection of information
under this part, including suggestions
for reducing the burden, to the IC
Clearance Officer, Minerals
Management Service, Mail Stop 5438,
1849 C Street, NW., Washington, DC
20240.
(b) Proprietary information. Specific
indications of interest in an area by
industry received in response to a Call
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for Information issued by the Secretary
is proprietary information.
(1) The MMS will handle requests for
indications of interest in an area and
any other proprietary or privileged
information you submit, according to
the regulations in 43 CFR part 2.
(2) Upon request, MMS will provide
relative summary indications of interest
in areas to a Call for Information for a
proposed sale.
§ 256.101 What are the consequences if I
provide false information?
Under 18 U.S.C. 1001, it is a crime to
knowingly and willfully make any false,
fictitious, or fraudulent statements or
representations to any U.S.
governmental entity regarding any
matter within its jurisdiction.
§ 256.102
What does this part cover?
These regulations establish the
procedures the Secretary of the Interior
and MMS will use to administer a
leasing program for minerals on the
submerged lands of the OCS, under the
OCSLA, 43 U.S.C. 1331 et seq.
mstockstill on PROD1PC66 with PROPOSALS
§ 256.103
Definitions.
As used in this part, the term:
Act means the OCS Lands Act as
amended (43 U.S.C. 1331 et seq.).
Affected State means, with respect to
any program, plan, lease sale, or other
activity, proposed, conducted, or
approved pursuant to the provisions of
the Act, any State:
(1) The laws of which are, pursuant to
section 4(a)(2) of the Act, 43 U.S.C.
1333(a)(2), to be the law of the United
States for the portion of the OCS on
which such activity is, or is proposed to
be, conducted;
(2) Which is, or is proposed to be,
directly connected by transportation
facilities to any artificial island or
structure referred to in section 4(a)(1) of
the Act, 43 U.S.C. 1333(a)(1);
(3) Which is receiving, or in
accordance with the proposed activity
will receive, oil for processing, refining,
or transshipment which was extracted
from the OCS and transported directly
to such State by means of vessels or by
a combination of means including
vessels;
(4) Which is designated by the
Secretary of the Interior as a State in
which there is a substantial probability
of significant impact on or damage to
the coastal, marine, or human
environment; or a State in which there
will be significant changes in the social,
governmental, or economic
infrastructure, resulting from the
exploration, development, and
production of oil and gas anywhere on
the OCS; or
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(5) In which the Secretary of the
Interior finds that because of such
activity, there is, or would be, a
significant risk of serious damage to the
marine or coastal environment in the
event of any oil spill, blowout, or
release of oil or gas from vessels,
pipelines, or other transshipment
facilities due to factors such as
prevailing winds and currents.
Bidding Unit means portions of two or
more blocks combined for bidding
purposes that may be bid upon as a
single administrative unit and will
become a single lease. The term tract, as
defined in this section, may also be
used.
Bonus or royalty credit means a legal
instrument or other written
documentation, or an entry in an
account managed by the Secretary that
a bidder or lessee may use in lieu of any
other monetary payment for—
(1) A bonus due for a lease on the
OCS; or
(2) A royalty due on oil or gas
production from any lease located in the
Gulf of Mexico.
Central planning area means the
Central Gulf of Mexico Planning Area of
the OCS, as designated in the document
entitled, ‘‘Draft Proposed Program Outer
Continental Shelf Oil and Gas Leasing
Program 2007–2012,’’ dated February
2006.
Coastal environment means the
physical, atmospheric, and biological
components, conditions, and factors
that interactively determine the state,
condition, and quality of the terrestrial
ecosystem from the shoreline inward to
the boundaries of the coastal zone.
Coastal zone means the coastal waters
(including the lands therein and
thereunder) and the adjacent shorelands
(including the water therein and
thereunder), strongly influenced by each
other and in proximity to the shorelines
of several coastal States, and includes
islands, transition and intertidal areas,
salt marshes, wetlands, and beaches,
whose zone extends seaward to the
outer limit of the U.S. territorial sea and
extends inland from the shore lines to
the extent necessary to control
shorelands; the uses of which have a
direct and significant impact on the
coastal waters, and the inward
boundaries of which may be identified
by several coastal States, under section
305(b)(1) of the Coastal Zone
Management Act (CZMA) of 1972, 16
U.S.C. 1454(b)(1).
Coastline means the line of ordinary
low water along that portion of the coast
in direct contact with the open sea and
the line marking the seaward limit of
inland waters.
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Desoto Canyon OPD means the
official protraction diagram designated
as Desoto Canyon which has a western
edge located at the universal transverse
mercator (UTM) X coordinate 1,346,400
in the North American Datum of 1927
(NAD 27).
Destin Dome OPD means the official
protraction diagram designated as
Destin Dome which has a western edge
located at the universal transverse
mercator (UTM) X coordinate 1,393,920
in the NAD 27.
Director means the Director of MMS
of the U.S. Department of the Interior,
or an official authorized to act on the
Director’s behalf.
Eastern planning area means the
Eastern Gulf of Mexico Planning Area of
the OCS, as designated in the document
entitled ‘‘Draft Proposed Program Outer
Continental Shelf Oil and Gas Leasing
Program 2007–2012,’’ dated February
2006.
General bond means a bond with the
amount fixed by regulations. The
amount of the bond required is
determined by the level of activity on
the lease, right-of-way, or right-of-use
and easement.
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.
Marine environment means the
physical, atmospheric, and biological
components, conditions, and factors
which interactively determine the
productivity, state, conditions, and
quality of the marine ecosystem,
including 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.
Mineral means oil, gas, and sulphur;
it also includes sand, gravel, and salt
used to facilitate the development and
production of oil, gas, or sulphur.
OCS means the Outer Continental
Shelf, as that term is defined in section
2(a) of the Act, 43 U.S.C. 1331(a).
Pensacola OPD means the official
protraction diagram designated as
Pensacola which has a western edge
located at the universal transverse
mercator (UTM) X coordinate 1,393,920
in the NAD 27.
Person means, in addition to a natural
person, an association, a State, a
political subdivision of a State, or a
private, public, or municipal
corporation.
Secretary means the Secretary of the
Interior or a designated employee.
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Supplemental bond means a bond
required by MMS based upon potential
lease decommissioning liabilities and/or
other lease obligations that exceed the
general bond.
Tract means an area of the OCS that
is offered for sale as a single lease. The
area may be a whole block, a portion of
a block, or combined portions from
multiple blocks. The term bidding unit,
as defined previously, may also be used.
We, us, and our means the Minerals
Management Service (MMS) of the
Department of the Interior.
You means a lessee, the holder or
owner of operating rights, a designated
operator or agent of the lessee(s), a right
of use and easement holder, State or
Federal, and a pipeline right-of-way
holder.
§ 256.104
Service fees.
(a) The table in this paragraph shows
the fees that you must pay to MMS for
25189
the services listed. The fees will be
adjusted periodically according to the
Implicit Price Deflator for Gross
Domestic Product by publication of a
document in the Federal Register. If a
significant adjustment is needed to
arrive at the new actual cost for any
reason other than inflation, then a
proposed rule containing the new fees
will be published in the Federal
Register for comment.
SERVICE FEE TABLE
Service—processing of the following:
Fee amount
(1) Assignment of record title or operating rights (transfer) for MMS approval ......................................................
(2) Required document filing for record purpose, but not for MMS approval .........................................................
(3) Non-required document filing for record purposes ............................................................................................
(b) Payment of the fees listed in
paragraph (a) of this section must
accompany the submission of the
document for approval or filing, or be
sent to an office identified by the
Regional Director. Once a fee is paid, it
is nonrefundable, even if your service
request is withdrawn. If your request is
returned to you as incomplete, you are
not required to submit a new fee with
the amended submission.
Subpart B—Oil and Gas 5-Year
Leasing Program
§ 256.200
What is the 5-year program?
Section 18(a) of the Act, 43 U.S.C.
1344(a), requires the Secretary to
prepare an oil and gas leasing program
that consists of a 5-year schedule of
proposed lease sales to best meet
national energy needs, showing the size,
timing, and location of leasing activity
as precisely as possible. The MMS
prepares the schedule to obtain the
proper balance between the potential for
environmental damage, the potential for
discovery of oil and gas, and the
potential for adverse impact on the
coastal zone.
mstockstill on PROD1PC66 with PROPOSALS
§ 256.201 Does MMS consult with
interested parties while preparing the 5-year
program?
In preparing the 5-year program, MMS
will consult with States and local
governments, industry, and any other
interested parties, primarily through
public notice and comment procedures,
as described in the sections that follow.
§ 256.202 How does MMS start the 5-year
program preparation process?
To begin preparation of the 5-year
leasing program, MMS invites and
considers nominations for any areas to
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be included or excluded from leasing,
by doing the following:
(a) The MMS prepares and makes
public, official protraction diagrams and
leasing maps of OCS areas. Any area
properly included on the official 5-year
diagrams and maps may be offered for
lease for any mineral not already leased.
(b) The MMS invites and considers
any other suggestions and relevant
information from Governors of affected
States, local Governments, industry,
Federal agencies, and other interested
parties, through a publication of a
request for information in the Federal
Register. Local Governments must first
submit their comments to their State
Governor, before sending them to MMS.
(c) The MMS sends letters to the
Governor of each affected State asking
them to identify specific laws, goals,
and policies that we should consider.
We ask each State Governor as well as
the Department of Commerce to identify
the relationship between any oil and gas
activity and the State coastal zone
management program under sections
305 and 306 of the CZMA, 16 U.S.C.
1454 and 1455. The MMS will consider
the coastal zone management program
being developed or administered by an
affected State under the CZMA.
(d) The MMS asks the Department of
Energy for information on regional and
national energy markets, OCS
production goals, and transportation
networks.
§ 256.203 What does MMS do before
publishing a proposed program?
After considering the solicited
comments and information described in
§ 256.202, we prepare a proposed
leasing program.
(a) At least 60 days before publication
of a proposed program, we send a draft
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27
27
30 CFR
citation
§ 256.613
§ 256.620(a)
§ 256.620(b)
of the proposed program to the
Governor of each affected State, who
may solicit comments from local
Governments that may be affected by
the proposed program.
(b) The MMS replies in writing to any
comment from a Governor that is
received at least 15 days before
submission of the proposed program to
Congress and its publication for
comment in the Federal Register.
§ 256.204 How do Governments and
citizens comment on the proposed
program?
The MMS publishes the proposed
program in the Federal Register for
comment by the public. At the same
time, we send the proposed program to
the Governors of the affected States and
to Congress and the Attorney General
for review and comment.
(a) Governors are responsible for
providing a copy of the proposed
program to affected local Governments
in their State. Local Governments may
comment directly to us, but must also
send their comments to the Governor of
their State.
(b) All comments from any party are
due within 90 days after publication in
the Federal Register.
§ 256.205 What does MMS do before
approving a final program or a significant
revision?
At least 60 days before approval, we
submit a proposed final program or
significant revision to the President and
Congress. The MMS also submits any
comments received and explains the
reasons why we did not accept any
specific recommendation of the
Attorney General, or of a State or local
Government.
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§ 256.206 Does MMS offer blocks in a sale
that is not on the 5-year program schedule?
(a) The MMS may offer blocks within
a planning area included in the 5-year
program in an otherwise unscheduled
sale, if the block either:
(1) Received a bid that was rejected in
an earlier sale;
(2) Had a high bid that was forfeited
in a scheduled sale; or
(3) Is a development block subject to
drainage.
(b) For an unscheduled sale, we may
disclose the classification of the block as
a development block. However, blocks
in the Central or Western Gulf of Mexico
(GOM) planning areas cannot be offered
in a sale that is not on the schedule.
Subpart C—Preparing for a Lease Sale
§ 256.300
What is a call for information?
The MMS issues a call for information
on areas proposed for leasing in the 5year program, through publication in
the Federal Register and other
publications as desired. A call may
include more than one proposed sale.
We request comments on:
(a) Industry interest in the areas
proposed for leasing;
(b) Geological conditions, including
bottom hazards;
(c) Archaeological sites on the seabed
or near shore;
(d) Multiple uses of the proposed
leasing area including navigation,
recreation, and fisheries;
(e) Other socioeconomic, biological,
and environmental information; and
(f) Industry’s nominations or
indications of interest in specific blocks
within areas proposed for leasing in the
5-year program for each sale.
mstockstill on PROD1PC66 with PROPOSALS
§ 256.301 What does MMS do with the
information from the call?
In consultation with appropriate
Federal agencies, we develop a proposal
to recommend areas to the Secretary for
further consideration for leasing and
environmental analysis.
(a) The MMS considers all available
environmental information, conflicts
with other uses, resource potential,
industry interest, and other relevant
information, including comments
received from State and local
Governments and other interested
parties in response to the call.
(b) The MMS evaluates the area
identified for further consideration for
the potential effects of leasing on the
human, marine, and coastal
environments, and to develop measures
to mitigate adverse impacts for all the
options to be analyzed. We inform the
public of any additions or deletions
from the area proposed for leasing in the
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5-year program that result from the call
process.
(c) The MMS prepares appropriate
documentation under the National
Environmental Policy Act (NEPA).
§ 256.302 What does MMS do if identified
areas are within 3 miles of the seaward
boundary of a coastal State?
For areas proposed for leasing that are
within 3 geographical miles seaward of
the seaward boundary of a coastal State,
as defined in and governed by section
1337(g)(2) of the Act, we provide the
Governor of the coastal State, pursuant
to the confidentiality requirements in
part 251 of this chapter, the following:
(a) A schedule for leasing;
(b) All geographical, geological, and
ecological characteristics of the areas
proposed for leasing;
(c) An estimate of the oil and gas
resources; and
(d) An identification of any field,
geological structure, or trap that lies
within 3 miles of the State’s seaward
boundary.
§ 256.303 What happens with an approved
proposed notice of sale?
The MMS sends an approved
proposed notice of sale to the Governors
of affected States and publishes the
notice of its availability in the Federal
Register. The notice includes
appropriate stipulations and conditions
to mitigate potential adverse impacts on
the environment, the Director’s findings,
and all comments and recommendations
received on the proposal.
§ 256.304
have?
What role do affected States
(a) Within 60 days after receiving the
proposed notice of sale, Governors of
affected States may submit comments
and recommendations to MMS
regarding the size, timing, and location
of the proposed sale. Local Governments
may comment to us directly, but must
also send their comments to the
Governor of their State.
(b) The MMS will provide a
consistency determination to affected
States that will indicate whether the
proposed sale is consistent, to the
maximum extent practicable, with the
enforceable policies of the applicable
coastal zone management programs.
§ 256.305 What does MMS do with
comments and recommendations received
on the proposed notice?
The MMS considers all comments and
recommendations received in response
to the proposed notice of sale. We
accept comments and recommendations
from States and local Governments if we
determine, after providing opportunity
for consultation, that they provide for a
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reasonable balance between the national
interest and the well being of the
citizens of the State or locality. We send
to each Governor written reasons for
rejecting or adopting alternatives on
how to address that Governor’s
recommendations.
§ 256.306
sale?
How does MMS conduct a lease
(a) The MMS publishes a final notice
of sale in the Federal Register and in
other publications, as appropriate, at
least 30 days before the date of the sale.
The notice:
(1) States the place, time, and method
for filing bids and the place, date, and
hour for opening bids; and
(2) Contains or references a
description of the area offered for lease
and any stipulations, terms, and
conditions of the sale.
(b) Tracts are offered for lease by
competitive sealed bid in accordance
with the terms and conditions in the
final notice of sale and applicable laws
and regulations. Tracts comprise an area
not exceeding 5,760 acres, unless we
find that a larger area is necessary for
reasonable economic production.
Subpart D—Issuance of a Lease
Qualifications
§ 256.400
Who may become a lessee?
You may become a lessee if you are:
(a) A citizen or national of the U.S.;
(b) An alien lawfully admitted for
permanent residence in the U.S., as
defined in 8 U.S.C. 1101(a)(20);
(c) A private, public, or municipal
corporation organized under the laws of
any State of the U.S., the District of
Columbia, or any territory or insular
possession subject to U.S. jurisdiction;
(d) An association of such citizens,
nationals, resident aliens, or
corporations;
(e) A State; or
(f) A political subdivision of States.
§ 256.401 How do I show that I am
qualified to be a lessee?
(a) Provide your MMS qualification
number if you have qualified with us, in
which case you will not need to provide
the information in paragraph (b) or (c)
of this section, unless we require it.
(b) An individual must submit a
written statement of citizenship status
attesting to U.S. citizenship. It need not
be notarized nor give the age of the
individual. A resident alien must
submit an original or a photocopy of the
Immigration and Naturalization Service
form evidencing legal status of the
resident alien.
(c) A corporation, association, or other
entity must submit evidence (refer to the
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table in paragraph (d) of this section)
acceptable to MMS that:
(1) It is qualified to hold mineral
leases under this subpart;
(2) It is authorized to conduct
business under the laws of its State;
(3) It is authorized to hold mineral
leases in the OCS under the operating
rules of its business; and
(4) The persons holding the titles
listed are authorized to bind the
Requirements to qualify as a lessee to hold leases in the OCS:
mstockstill on PROD1PC66 with PROPOSALS
(1) Certified statement by Secretary, over corporate seal, certifying that
the corporation is authorized to hold OCS leases ...............................
(2) Evidence of authority of titled positions to bind corporation, certified
by 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.
(3) Certificate of partnership or organization paperwork registering with
the appropriate State official ................................................................
(4) Copy of articles of partnership or organization evidencing filing with
appropriate Secretary of State, certified by Secretary of partnership
or is a member or manager of a LLC ..................................................
(5) Certificate evidencing State where partnership or LLC is registered.
Statement of authority to hold OCS leases, certified by Secretary
OR original paperwork registering with the appropriate State official
(6) 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
over corporate seal, if a corporation.
(ii) If an individual, a statement of citizenship.
(7) Statement from general partner, certified by Secretary that: ............
(i) Each individual limited partner is a U.S. citizen and;
(ii) Each corporate limited partner or other entity is incorporated or
formed and organized under the laws of a U.S. State or territory.
(8) 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 reflecting authority of officers .......................................................................................................
(9) Listing of members of LLC certified by Secretary or any member or
manager of LLC ...................................................................................
(10) 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 ................................................
(11) Statement indicating the law under which the trust is established
and that the trust is authorized to hold OCS leases ...........................
Ltd. prtnsp.
Gen. prtnsp.
LLC
Trust
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under 30 CFR part 250 on any other
OCS lease.
You may not become a lessee or
acquire an interest in a lease if:
(a) You or your principals are
excluded or disqualified from
participating in transactions covered by
the Federal non-procurement debarment
and suspension system (2 CFR parts 180
and 1400), unless MMS explicitly has
approved an exception for this
transaction;
(b) You or your principals fail to meet
or exercise due diligence under section
8(d) of the Act, 43 U.S.C. 1337(d) on any
other OCS lease; or
(c) The MMS determines after notice
and opportunity for a hearing under 30
CFR part 290, subpart A, that your
operating performance is unacceptable
§ 256.403 What do the non-procurement
debarment rules require that I do?
17:44 May 26, 2009
Jkt 217001
corporation or association when
conducting business with us.
(d) Acceptable evidence under
paragraph (c) of this section includes,
but is not limited to:
Corp.
§ 256.402 Who may not become a lessee
or acquire an interest in a lease?
VerDate Nov<24>2008
You must comply with the
Department of the Interior’s nonprocurement debarment regulations at 2
CFR parts 180 and 1400.
(a) You must notify MMS if you know
that you or your principals are
excluded, disqualified, or convicted of
crime as described in 2 CFR part 180
subpart I. You must make this
notification before you sign a lease,
assignment of record title interest, or
transfer (assignment) of operating rights
interest; or become a lease or unit
operator. This paragraph does not apply
if you have previously provided a
statement disclosing this information,
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25191
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and we have received an exception from
the Department of the Interior as
described in 2 CFR 180.135.
(b) If you wish to enter into a covered
transaction with another person at the
next lower tier, you must first:
(1) Verify that the person is not
excluded or disqualified under the
requirements in 2 CFR part 180; and
(2) Require the person to:
(i) Comply with this subpart; and
(ii) Include the obligation to comply
with this subpart in their contracts and
other transactions.
(c) After you enter into a covered
transaction, you must immediately
notify MMS in writing if you learn that:
(1) You failed to disclose information
earlier; or
(2) Due to changed circumstances,
you or your principals now meet any of
the criteria in 2 CFR 180.800.
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§ 256.404 When must I notify MMS of
mergers, name changes, or changes of
business form?
You must immediately notify us of
any merger, name change, or change of
business form. The latest you may make
this notification is 1 year after the
earliest 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.
How to Bid
§ 256.410
How do I submit a bid?
(a) You must submit a separate sealed
bid for each tract or bidding unit to the
address provided and by the time
specified in the notice of sale. You may
not bid on less than an entire tract or
bidding unit.
(b) You must include a deposit to
cover all bids submitted. The notice of
sale specifies the amount and method of
payment.
(c) You may not submit a bid on an
OCS lease if, after notice and hearing
under 30 CFR part 290, the Secretary
finds that you are not meeting the
diligence requirements on any other
OCS lease.
(d) If your high bid is rejected, then
the decision of the authorized officer on
bids must be the final decision of the
Department, subject only to
reconsideration by the Secretary, upon
your written request as set out in
§ 256.417.
mstockstill on PROD1PC66 with PROPOSALS
Restrictions on Joint Bidding
Interior Board of Land Appeals under 30
CFR part 290, subpart A.
(c) If you are listed in the Federal
Register in any group of restricted
bidders, you may not bid:
(1) Jointly with another person in any
other group of restricted bidders for the
applicable 6-month bidding period; or
(2) Separately during the 6-month
bidding period if you have an agreement
with another restricted bidder that
would result in joint ownership in an
OCS lease.
(d) As a bidder, you are prohibited
from unlawful combination with, or
intimidation of, bidders under 18 U.S.C.
1860.
§ 256.412 When must I file a statement of
production?
(a) You must file a statement of
production if you had an average
worldwide daily production of over 1.6
million barrels for the prior production
period (determine your production
using the method in § 256.413). Your
statement must specify that you were
chargeable with an average daily
production in excess of 1.6 million
barrels for the prior production period.
(b) The prior production periods are
as follows:
For the bidding period of . . .
The prior production period is the preceding
. . .
(1) May through
October,
(2) November
through April,
July through December.
January through June.
§ 256.411 Are there restrictions on bidding
with others and do they affect my ability to
bid?
(c) You must file the statement of
production by the following deadlines:
The Energy Policy and Conservation
Act of 1975, 42 U.S.C. 6213, prohibits
joint bidding by major oil and gas
producers under the following
circumstances:
(a) The MMS publishes a restricted
joint bidders list twice yearly in the
Federal Register. Persons appearing on
this list are limited in their ability to
submit joint bids (see paragraph (c) of
this section). The list:
(1) Consists of the persons chargeable
with an average worldwide daily
production in excess of 1.6 million
barrels of crude oil, liquefied petroleum
products, or the Btu equivalent in
natural gas, for the prior production
period; and
(2) Is based upon the statement of
production that you must file as
required by § 256.412.
(b) If we place you on the restricted
joint bidders list, we will send you a
copy of the order placing you on the list.
You may appeal this order to the
For the bidding period of . . .
You must file the statement by . . .
(1) May through
October,
(2) November
through April,
March 17.
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17:44 May 26, 2009
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September 17.
(d) If you file a statement of
production, MMS may require you to
submit a detailed report of production.
(1) The detailed report must list crude
oil, liquefied petroleum products, or Btu
equivalent in natural gas chargeable for
the prior production period.
(2) You must submit this report
within 30 days after receiving the MMS
request.
(3) The MMS may inspect and copy
such documents, records of production,
analyses, and other material to verify
the accuracy of any earlier statements of
production.
(e) If you submit a statement of
production that misrepresents your
chargeable production, we may cancel
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any of your leases that were awarded in
reliance upon such statement.
§ 256.413 How do I determine my
production for purposes of the restricted
joint bidders list?
(a) To determine the amount of
production chargeable to you, add
together:
(1) Your average daily production in
barrels of crude oil, liquefied petroleum
products, or the Btu equivalent in
natural gas worldwide; and
(2) Your proportionate share of the
average daily production owned by any
entity which has an interest in you as
the reporting person, and in which you
have an interest.
(b) For the purpose of this section,
average daily production includes
production owned by:
(1) You;
(2) Every subsidiary of yours;
(3) Every person of which you are a
subsidiary; and
(4) Every subsidiary of any person of
which you are a subsidiary.
(c) For purposes of this section,
interest means at least 5 percent
ownership or control of you or the
reporting person and includes any
interest:
(1) From ownership of securities or
other evidence of ownership; or
(2) By participation in any contract,
agreement, or understanding regarding
control of the person or their production
of crude oil, liquefied petroleum
products, or the Btu equivalent in
natural gas.
(d) For purposes of this section, entity
means a person that meets both of the
following criteria:
(1) The entity is, in addition to a
natural person, a corporation,
partnership, association, joint-stock
company, trust, fund, or any receiver,
trustee in bankruptcy, or similar official
acting for such a company; and
(2) Fifty (50) percent or more of the
entity’s stock or other interest having
power to vote for the election of a
controlling body, such as directors or
trustees, is directly or indirectly owned,
controlled, or held with the power to
vote by another person.
§ 256.414 Are exemptions from the bidding
restrictions possible?
The MMS may exempt you from the
bidding restrictions if, after an
opportunity for a hearing, we find that
extremely high costs in an area would
preclude exploration and development
without an exemption.
How Does MMS Act on Bids?
§ 256.416
What does MMS do with my bid?
(a) The MMS opens the sealed bids at
the place, date, and hour specified in
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the notice of sale for the sole purpose of
publicly announcing and recording the
bids. We do not accept or reject any bids
at that time.
(b) The MMS accepts or rejects all
bids within 90 days, although we may
extend that time if necessary. We
reserve the right to reject any and all
bids, regardless of the amount offered. If
your bid is rejected, we will refund any
money deposited with your bid plus any
interest accrued.
(c) If the highest bids are tied, MMS
will notify the tied bidders. Within 15
days after notification, the tied bidders
may agree to accept the lease jointly, if
not otherwise prohibited from bidding
together. The tied bidders must notify
MMS of their decision and submit a
copy of their agreement to accept the
lease jointly. Or, they may decide
between themselves which bidder(s)
will become the lessee, and notify MMS
of their decision. If there is no such
agreement, we will award the lease to
the high bidder selected by lot.
(d) The MMS offers the Attorney
General the opportunity to review the
results of the sale before we accept the
bids and issue the leases.
§ 256.417 What may I do if my bid is
rejected?
§ 256.421
You may ask MMS in writing for
reconsideration within 15 days of bid
rejection. You will receive a written
response either affirming or reversing
the rejection.
§ 256.420 What happens if I am the
successful high bidder?
If you are the successful bidder, you
will receive the appropriate number of
copies of the lease on a form approved
by MMS.
(a) When you receive the lease copies,
within 11-business days after receipt,
you must:
mstockstill on PROD1PC66 with PROPOSALS
VerDate Nov<24>2008
Subpart E—Financial Accountability
and Risk Management
General Bonds
§ 256.500 What security must I provide
when I obtain my lease?
(a) Before MMS will issue your lease
or approve an assignment of an existing
Amount of
general bond
(a) Before lease exploration activities begin.
17:44 May 26, 2009
$200,000
Jkt 217001
When is my lease effective?
Your lease is effective on the first day
of the month following the date that
MMS executes the lease. You may
request in writing, before we execute the
lease, that your lease be effective as of
the first day of the month in which we
execute it.
Awarding the Lease
Stage of
activity
(1) Execute the lease;
(2) Pay the first year’s rental;
(3) Pay the balance of the bonus,
unless deferred under (b) below; and
(4) File a bond under subpart E of this
part.
(b) If provided for in the notice of
sale, we may defer any part of the bonus
payment for up to 5 years after the sale
according to a schedule included in the
notice of sale. You must provide a bond
acceptable to us for payment of a
deferred bonus.
(c) If you do not execute and return
the lease within 11 business days after
receipt, or if you otherwise fail to
comply with applicable regulations,
your deposit will be forfeited and MMS
may take appropriate action to collect
the full amount bid, if so provided for
in the notice of sale. However, we will
return any deposit with interest if the
tract is withdrawn from leasing before
you execute the lease.
(d) If you use an agent to execute the
lease, you must include evidence with
the executed copies of the lease form
that you authorized the agent to act for
you. After you comply with all
requirements in this section, and after
we have executed the lease, we will
send you an executed copy.
25193
lease, you must provide one of the
following general bonds on Form MMS–
2028:
(1) A lease-specific $50,000 general
bond that guarantees compliance with
all terms and conditions of the lease; or
(2) An area-wide $300,000 general
bond that guarantees compliance with
all terms and conditions of all your
leases in the area where your lease is
located; or
(3) A lease-specific or area-wide
general bond as required for exploration
or development and production
activities as specified in § 256.501.
(b) For the purpose of an area-wide
bond, the areas are each planning area
as administered by MMS.
(c) You have met the bonding
requirement under this section if your
designated lease operator provides a
lease-specific or area-wide general bond
that guarantees compliance with all
terms and conditions of the lease, as
required under § 256.501.
(d) The MMS may adjust the dollar
amount of the general bonds described
in this section by using the Implicit
Price Deflator for Gross Domestic
Product or a substantially equivalent
index.
§ 256.501 Do my general bonding
requirements change as activities progress
on my lease?
The table in this paragraph contains
the general bond requirements for each
stage of activity on your lease. Each
bond must guarantee compliance with
all terms and conditions of the lease.
You may satisfy these bond
requirements with a new bond or by
increasing the amount of your existing
bonds required under § 256.500.
Deadline for submission
Exceptions
Earlier of either of the following: The date you
submit an Exploration Plan (EP) for approval;
or the date you, as an assignee, submit a request for approval of assignment of a lease
with an approved EP
The Regional Director may authorize you to submit the $200,000 bond after you submit an EP,
but before we approve drilling activities under
the EP. You need not submit and maintain a
$200,000 lease exploration bond if you furnish
and maintain either:
(1) A $1 million area-wide bond issued by a certified surety and conditioned on compliance
with all the terms and conditions of all leases
in the area; or
(2) A $3 million area-wide bond under paragraph
(b) of this table.
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Federal Register / Vol. 74, No. 100 / Wednesday, May 27, 2009 / Proposed Rules
Stage of
activity
Amount of
general bond
(b) Before lease development and production activities begin.
$500,000
Deadline for submission
Exceptions
Earlier of either of the following: The date you
submit a Development and Production Plan
(DPP) or Development Operations Coordination Document (DOCD) for approval; or the
date you, as an assignee, submit a request for
approval of assignment of a lease with an approved DPP or DOCD
The Regional Director may authorize you to submit the $500,000 lease development bond
after you submit a DPP or DOCD, but before
we approve the installation of a platform or the
commencement of drilling activities under the
DPP or DOCD. You need not submit and
maintain a $500,000 lease development bond
if you furnish and maintain a $3 million areawide bond that is issued by a certified surety
and conditioned on compliance with all the
terms and conditions of all leases in the area.
We may accept a bond of less than $500,000
if:
(1) You can demonstrate that wells and platforms can be abandoned and removed and
drilling and platform sites cleared of obstructions for less than $500,000; and
(2) The bond is at least equal to the cost of well
abandonment, platform removal, and site
clearance.
§ 256.502 What instruments other than a
surety bond may I use to provide the
required security?
You may pledge U.S. Department of
Treasury securities or other types of
security instruments if MMS determines
that such security protects us to the
same extent as the required bond. If you
use a Treasury security:
(a) You must post 115 percent of your
bonding amount.
(b) You must daily monitor the
collateral value of your security. If the
collateral value of your security, as
determined in accordance with the 31
CFR part 225 Collateral Margins Table
(which can be found at http://
www.treasurydirect.gov) falls below the
required level of coverage, you must
within 10-business days, pledge
additional security to provide the
required amount.
(c) 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, right-of-way
(ROW), or right-of-use and easement
(RUE), any subsequent approval or
authorization, or applicable regulations.
mstockstill on PROD1PC66 with PROPOSALS
§ 256.503 What general requirements must
my bond or other security meet?
(a) Any bond or other security that
you provide must:
(1) Be payable to MMS upon demand;
(2) Guarantee compliance under the
lease and regulations of all of your nonmonetary obligations and those of all
lessees, operating rights owners, and
operators on the lease; and
(3) Guarantee all of your monetary
obligations.
(b) All surety bonds and Treasury
notes must be on an official form
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17:44 May 26, 2009
Jkt 217001
approved by MMS. You may submit a
bond on an approved form that you
have reproduced. If the document you
submit either advertently or
inadvertently omits any terms and
conditions that are included on the
approved form, your bond is deemed to
contain the omitted terms and
conditions of the official form.
(c) The MMS reserves the right to
require electronic filing with a 90-day
notice published in the Federal
Register.
(d) Surety bonds must be issued by a
surety that the Treasury certifies as
acceptable to provide bonds to Federal
agencies by listing 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.
(e) You and a certified 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, and include
the power of attorney authorizing said
officer to bind the security.
(f) You may not terminate the period
of liability of, 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, terminate,
or cancel a surety’s obligation under
State law.
§ 256.504 Must my surety bond cover the
payment obligations of my co-lessees and
designated operators?
You may exclude from coverage the
payment obligations of a co-lessee or
designated operator from your bond by
giving MMS a written statement
specifying which co-lessees and
designated operators are to be excluded.
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The exclusion of payment obligations
from coverage does not exclude the nonpayment obligations of the lease.
§ 256.505 What happens if my co-lessees
or designated operators exclude my
payment obligations from their bond?
You must post a bond at the level
specified in this subpart for the level of
activity on the lease. We may require a
lesser amount if you can demonstrate
that your payment obligations are less
than the bond amounts required.
Supplemental Bonds
§ 256.510 Can MMS require that I post a
supplemental bond?
(a) To ensure coverage of potential
lease, ROW, or RUE decommissioning
liabilities and/or other obligations,
MMS may determine that you need to
provide a supplemental bond as security
in addition to the requirements under
§§ 256.500 and 256.501 for general
bonds. The Regional Director may
require you to demonstrate the
sufficiency of your bond to accomplish
your lease obligations. You must submit
supplemental bonds on Form MMS–
2028A.
(b) A requirement to post a
supplemental bond(s) will be based on
the Regional Director’s determination of
the cost to meet all accrued and
anticipated obligations of your lease(s),
ROW(s), or RUE(s), including those
arising from operating rights interests,
and an evaluation of the probability that
you will be able to carry out present and
future financial obligations as
demonstrated by:
(1) Financial capacity substantially in
excess of existing and anticipated lease
and other obligations, as evidenced by
audited financial statements (including
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auditor’s certificate, balance sheet, and
profit and loss sheet);
(2) Projected financial strength
significantly in excess of existing and
future lease and other obligations based
on the estimated value of your existing
OCS lease production;
(3) Business stability based on 5 years
of continuous operation and production
of oil and gas or sulphur in the OCS or
onshore;
(4) Reliability in meeting obligations
based on credit ratings or trade
references, including names and
addresses of other lessees, drilling
contractors, and suppliers with whom
you have dealt; and
(5) A record of compliance with laws,
regulations, and lease, ROW, or RUE
terms.
(c) The MMS determines the amount
of supplemental bond required to
guarantee compliance. The Regional
Director performs a case-specific
analysis and considers such items as the
potential underpayment of royalties; the
cumulative obligations to abandon wells
and remove platforms and facilities; and
the requirement to clear the seafloor of
obstructions.
(d) If your cumulative potential
obligations and liabilities increase or
decrease, MMS may adjust the amount
of the supplemental bond required.
(1) The MMS will notify you of any
proposed adjustment to your bond
amount and give you an opportunity to
comment.
(2) If you request a reduction, you
must submit evidence to the Regional
Director that the projected amount of
royalties due the Government over the
next 12 months, any past due royalties,
other payment obligations, and the
estimated costs of your required
decommissioning and cleanup, are less
than the required bond amount. If MMS
agrees, we will reduce the amount of the
supplemental bond required.
(e) Your supplemental bond must
meet the requirements specified for
general bonds under § 256.503. You may
utilize U.S. Department of the Treasury
securities or other types of security
instruments that MMS determines
protect us to the same extent as the
required bond. If you use a Treasury
security, you must meet the
requirements specified for general
bonds in § 256.502.
§ 256.511 May I use a third-party guaranty
to meet the supplemental bonding
requirement?
(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,
operating rights owners, and operators
on the lease(s), ROW(s), and RUE(s).
(b) The MMS 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
Regional Director, that the interruptions
do not affect the likelihood of your
guarantor remaining in business during
exploration, development, production,
and decommissioning operations on
your lease(s), ROW(s), and RUE(s)
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 criteria
stated in paragraph (b)(4) of this section.
Such detail includes:
(i) The current rating for its 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.
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 Regional Director
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(4) Your guarantor’s total outstanding
and proposed guarantees must not
exceed 25 percent of its unencumbered
domestic net worth.
(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 §§ 256.400
and 256.401.
(1) When any party is a corporation,
two corporate officers authorized to
execute the indemnity agreement on
behalf of the corporation must sign the
agreement.
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(2) When any party is a partnership,
joint venture, or syndicate, the
indemnity agreement must bind each
party who has a beneficial interest in
your guarantor and provide that, upon
MMS demand under your guaranty,
each party is jointly and severally liable
for compliance with all terms and
conditions of your lease(s), ROW(s), and
RUE(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), ROW(s), and RUE(s) into
compliance or provide, within 7calendar days, sufficient funds to permit
MMS to complete corrective action.
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(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-calendar
days or other agreed upon time period,
sufficient funds for MMS to complete
corrective action. Such compliance
must not reduce your guarantor’s
liability.
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(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) If your guaranty is to be
terminated, you must provide an
acceptable replacement in the form of a
bond or other security before the
termination.
§ 256.512 May I use a lease, right-of-way
(ROW), or right-of-use and easement (RUE)specific decommissioning account to meet
the supplemental bonding requirement?
mstockstill on PROD1PC66 with PROPOSALS
(a) The MMS may authorize you to
establish a lease, ROW, or RUE-specific
decommissioning account in a
Federally-insured institution in lieu of a
supplemental bond. The funds must not
be withdrawn from the account without
written approval by MMS.
(1) The funds must be payable to
MMS and pledged to meet your
decommissioning obligations.
(2) You must fully fund the account
to cover all costs of decommissioning,
including site clearance within the time
we prescribe. The MMS will estimate
the cost of decommissioning and site
clearance.
(b) Any interest paid on the account
will be treated as account funds unless
MMS authorizes in writing that any
interest be paid to the depositor.
(c) The Regional Director may allow
you to pledge Treasury securities
payable to MMS on demand to satisfy
your obligation to make payments into
the account. Acceptable Treasury
securities and their collateral value are
defined in 31 CFR part 380.
(d) The MMS may require you to
create an overriding royalty or
production payment obligation for the
benefit of the account. The obligation
may be associated with production from
another lease.
Changes in Bonding or Security
§ 256.520
What do I do if my bond 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, you
must provide alternate security
immediately. You must promptly
inform MMS about the bond lapse and
provide a new bond to us in the amount
required under this subpart.
(b) You and your surety must notify
MMS within 72 hours after you learn of
any action filed alleging that you are, or
your surety or guarantor is, insolvent or
bankrupt, or has been decertified by the
U.S. Treasury.
§ 256.521 What happens if the value of my
bond or other security is reduced?
If the value of your bond or other
security is reduced because of a default
or any other reason, you must provide
additional bond coverage sufficient to
meet the requirements of this subpart
within 45 days; however, MMS may
specify a shorter period of time.
§ 256.522 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
obligations continue to accrue, but does
not relieve the surety of the
responsibility for obligations and
liabilities that accrued during the period
of liability and before the date on which
MMS 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
prior to the beginning of the period of
liability and had not been met, and
(2) Obligations that began accruing
during the period of liability.
(b) Your surety must submit its
request to MMS to terminate the period
of liability under its bond and notify
you of that request. We will terminate
that period of liability within 90 days
after we receive the request. If you
intend to continue operations, or have
not met all end-of-lease obligations, we
will require you to provide a
replacement bond of equivalent value.
(c) If the period of liability is
terminated but the bond is not cancelled
under § 256.523, the surety that
provided the bond must continue to be
liable for accrued obligations until all
obligations are satisfied.
§ 256.523 What happens if my surety
wants to cancel my bond?
(a) The MMS will cancel or release a
bond and relieve the surety from
accrued obligations only if:
(1) The MMS determines that there
are no outstanding obligations; or
(2) You furnish a replacement bond or
an alternative form of security in an
amount equal to or greater than the
bond to be cancelled to cover the
terminated period of liability and:
(i) Before MMS will cancel a general
bond prescribed under §§ 256.500 or
256.501 on the basis of a replacement
bond, the surety issuing the new bond
must expressly agree to assume all
outstanding liabilities that accrued
during the period of liability that was
terminated.
(ii) Before MMS will cancel a
supplemental bond on the basis of a
replacement bond, the surety issuing the
new bond must agree 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 §§ 256.500 or
256.501 and of which you were notified.
(b) When your lease ends, your
surety(s) remain(s) responsible and
MMS will retain any pledged security as
shown in the table below:
Bond type:
The period of liability ends:
Your bond will be cancelled:
(1) General bonds submitted under
§§ 256.500 or 256.501.
When MMS determines that you
have met all of your obligations
under the lease.
(2) Supplemental bonds submitted
under this subpart.
When MMS determines that you
have met all your obligations
covered by the supplemental
bond.
Seven years after the lease ends, 6 years after completion of all
bonded obligations, or at the conclusion of any appeals or litigation
related to your bonded obligation, whichever is the latest. The
MMS will reduce the amount of your bond or return a portion of
your security, if we determine that you need less than the full
amount of the bond to meet any possible future obligations.
When you meet your bonded obligations, unless MMS:
(i) Determines that the future potential liability resulting from any undetected obligations is greater than the amount of the base bond;
and
(ii) Notifies the provider of the bond that we will wait 7 years before
canceling all or a part of the bond, or a longer period as necessary
to complete any appeals or judicial litigation related to your bond
obligation.
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§ 256.524 Why might MMS call for
forfeiture of my bond?
(a) The MMS may call for forfeiture of
all or part of the bond or pledged
security or performance by your
guarantor if:
(1) After notice and demand for
performance by MMS, you refuse or fail,
within the timeframe we prescribe, to
comply with any term or condition of
your lease; or
(2) You default on one of the
conditions under which we accepted
your bond.
(b) The MMS may pursue forfeiture
without first making demands for
performance against any other lessee,
operating rights owner, or other person
approved to perform lease obligations.
(a) The MMS will notify you and your
surety or guarantor 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
our estimate of the total cost of
corrective action to bring your lease into
compliance.
(b) The MMS would advise you, your
guarantor, and any surety that you may
avoid forfeiture if, within 5 business
days:
(1) You, or your guarantor, agree(s) to
and demonstrate(s) that you will bring
your lease into compliance within the
timeframe we prescribe; or
(2) Your surety agrees to, and
demonstrates that, it will bring your
lease into compliance within the
timeframe we prescribe, even if the cost
of compliance exceeds the face amount
of the bond.
mstockstill on PROD1PC66 with PROPOSALS
§ 256.526 What if correcting my default
requires a change in the amount of my
bond?
(a) If MMS demands forfeiture of your
bond, we will collect the forfeited
amount and use the funds to bring your
lease(s) into compliance and correct any
default.
(b) If the amount collected under your
bond is insufficient to pay the full cost
of corrective action, MMS may take or
direct action to obtain full compliance
and recover all costs in excess of the
forfeited bond from you, any co-lessee,
operating rights owner, or responsible
guarantor.
(c) If the amount collected under your
bond exceeds the full cost of corrective
action to bring your lease(s) into
compliance, MMS will return the excess
funds to the party from whom they were
collected.
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Subpart F—Maintaining a Lease
Lease Obligations
Initial Period of a Lease
§ 256.605 What are my obligations as a
record title owner?
§ 256.600 What is the initial period of my
oil and gas lease?
(a) As a record title owner, you are
responsible for all performance on the
lease, including paying any rent and
royalty due. If there is more than one
record title or operating rights owner,
each of you are jointly and severally
liable for non-monetary lease
obligations, including the obligation to
protect the lease from drainage and to
pay compensatory royalty that may be
owed. You are also jointly and severally
liable for plugging and abandonment
obligations that accrue while you hold
record title interest. For example, this
means that if you own 50 percent record
title interest, MMS may hold you
responsible for 100 percent of the nonmonetary obligations, if your joint
owner(s) default(s).
(b) For monetary obligations, such as
paying rent and royalty, your obligation
is proportionate to your interest. For
example, if you own 25 percent of the
record title interest, you are liable for
only 25 percent of the rent or royalty on
production. As a record title owner, you
also are secondarily liable for monetary
obligations of any operating rights
holders on the lease.
(a) The initial period of your oil and
gas lease may range from 5 to 10 years.
The MMS will specify the initial period
in the notice of sale and in the lease
instrument.
(b) For leases in water depths of 400
to 799 meters, unless otherwise
provided for in the notice of sale, the
initial period will be 8 years but you
must begin an exploratory well within
the first 5 years. Your lease will be
subject to administrative cancellation
after 5 years if you have not begun an
exploratory well.
§ 256.601 How may I maintain my oil and
gas lease beyond the initial period?
§ 256.525 How will I know about this
forfeiture?
25197
(a) You may maintain your oil and gas
lease beyond the initial period as long
as you are producing oil or gas in paying
quantities, you are granted a
suspension, or you are conducting
approved drilling or well reworking
operations, in accordance with 30 CFR
part 250.
(b) You may maintain your oil and gas
lease by producing from, or drilling or
reworking approved directional wells
under your lease that originates from the
surface of the seabed adjacent to or
adjoining your lease.
(c) You may maintain your oil and gas
lease if your lease is being drained by
a well on another lease and you are
paying compensatory royalty.
(d) You may maintain your oil and gas
lease if the lease, or part of the lease, is
part of an MMS-approved unit
agreement, and there either is
production allocated to your lease, a
suspension of unit operations, or the
unit is conducting approved drilling or
well-reworking operations in
accordance with 30 CFR part 250.
§ 256.602 What is the initial period of my
sulphur lease?
Your sulphur lease will have an
initial period of not more than 10 years.
The MMS will announce the initial
period prior to the lease sale. Your lease
will be subject to administrative
cancellation after 5 years if you have not
begun an exploratory well.
§ 256.603 How may I maintain my sulphur
lease beyond the initial period?
You may maintain your sulphur lease
after the initial period as long as you are
producing sulphur in paying quantities;
granted a suspension; or conducting
drilling, reworking, plant construction,
or other operations necessary to the
production of sulphur.
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§ 256.606 What are my rights and
obligations as an operating rights owner?
(a) As an operating rights owner, you
have the right to enter the leased area to
conduct drilling and related operations
including production according to the
lease terms and applicable regulations.
(b) You have the right to authorize
another party to conduct operations on
the lease.
(c) You are jointly and severally liable
with other record title owners and
operating rights holders in the lease for
all non-monetary lease obligations
pertaining to that portion of the lease
subject to your operating rights.
(d) You are liable for monetary
obligations pertaining to that portion of
the lease subject to your operating rights
with other operating rights holders in
proportion to your share of such
operating rights.
Transferring Interest in All or Part of a
Lease
§ 256.610 May I sell, exchange, assign, or
otherwise transfer my lease?
No lease issued under this part may
be sold, exchanged, assigned, or
otherwise transferred except with the
approval of MMS.
§ 256.611 May I assign all or part of my
lease interest?
You may assign all or part of your
lease interest subject to MMS approval.
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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. Officially designated
subdivisions, or aliquot parts, are a half
(1⁄2), a quarter (1⁄4), a quarter of a quarter
(1⁄41⁄4), and a quarter of a quarter of a
quarter (1⁄41⁄41⁄4). We may disapprove an
assignment when the assignor or
assignee has outstanding or unsatisfied
obligations under this chapter.
mstockstill on PROD1PC66 with PROPOSALS
§ 256.612
May I assign operating rights?
(c) You as heir or devisee must submit
statements that you are the person
named as successor in interest along
with evidence of your qualifications to
hold a lease under subpart D of this
part.
(d) If you do not qualify to hold a
lease under subpart D of this part, you
will be recognized as the successor in
interest, but must divest your interest in
the lease within 2 years.
§ 256.615 What if I want to assign interests
in more than one lease at the same time?
§ 256.619 As a restricted joint bidder, may
I assign interest to another restricted joint
bidder?
If you are a restricted joint bidder, you
may assign all or part of your interest in
a lease to another restricted joint bidder.
However, if you want to assign less than
your entire interest to another restricted
joint bidder, you must submit to MMS
a copy of any agreements relating to
your acquisition of the lease or interest.
The MMS may ask the Attorney General
to review your request.
You may assign your operating rights
in all or part of your lease subject to
MMS approval. However, you may
create subleases of only two depth
levels per aliquot part. Operating rights
must be described by officially
designated subdivisions, or aliquot
parts, and limited to specific depths
within those subdivisions.
To assign interests in more than one
lease at the same time, you must file a
separate form and two originals of the
instrument that creates or transfers
ownership for each lease assigned.
However, if all leases are being
transferred to the same entity, you need
submit only one application letter of
request for approval.
§ 256.613 How do I seek approval of an
assignment?
§ 256.616 What is the effect of an
assignment on an assignor’s liability?
(a) You must request approval of each
assignment and submit to MMS two
originals of each instrument that creates
or transfers ownership of record title or
operating rights within 90 days after the
last party executes the transfer
agreement. You must pay the service fee
listed in § 256.104 with your request.
(1) All assignments must be on the
appropriate form approved by MMS.
(i) Form MMS–150 entitled,
Assignment of Record Title Interest in
Federal OCS Oil and Gas Lease.
(ii) Form MMS–151 entitled,
Assignment of Operating Rights Interest
in Federal OCS Oil and Gas Lease.
(2) When an assignment is made of
100 percent of the record title interest in
an officially designated subdivision of
your lease, that assignment creates a
new lease. Your assignee becomes the
leaseholder of the newly segregated
lease that is subject to all the terms and
conditions of your original lease,
including the requirement to furnish a
bond in the amount required in subpart
E of this part.
(b) Before MMS approves an
assignment, we will consult with and
consider the views of the Attorney
General.
As assignor, you are liable for all
obligations, monetary and nonmonetary, that accrued under your lease
before MMS approves your assignment.
Our approval of the assignment does not
relieve you of these accrued obligations
if your assignee, or any subsequent
assignee, fails to perform. In addition,
MMS may require you to bring the lease
into compliance to the extent the
obligation accrued before approval of
your assignment, if your assignee or any
subsequent assignee, fails to perform
any obligation under the lease. You
remain liable for all obligations if you
create a sublease of operating rights
only.
§ 256.618 What is the effect of an
assignment on an assignee’s liability?
§ 256.630 What must a lessee do if MMS
elects to extract helium from a lease?
§ 256.614 How do I transfer the interest of
a deceased leaseholder?
As assignee, you and any subsequent
assignees are liable for all obligations
that have accrued or will accrue after
MMS approves the assignment. As
assignee, you must comply with all the
terms and conditions of the lease and
regulations issued under the Act,
remedy all existing environmental and
operational problems on the lease,
properly abandon all wells, and reclaim
the site as required under 30 CFR part
250.
(a) The MMS reserves the ownership
of, and the right to extract, helium from
all gas produced from your OCS lease.
Under section 12(f) of the Act, 43 U.S.C.
1341(f), upon our request, you must
deliver all or a specified portion of the
gas containing helium to us at a point
on the lease or an onshore processing
facility that we designate.
(b) The MMS will determine
reasonable compensation and pay you
for any loss caused by the extraction of
(a) If any of the leaseholders are
deceased, you as heir or devisee must
provide evidence as to who are the
lawful successors in interest.
(b) You as heir or devisee must submit
a certified copy of an appropriate court
order or decree; or if no court action is
necessary, a certified copy of the will or
the statements of two disinterested
parties with knowledge of the facts.
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§ 256.617 May I specify an effective date of
the assignment?
The MMS will record the assignment
as effective on the date you specify. If
you do not specify a date, the
assignment is effective on the first day
of the month following your request to
assign. Regardless of the effective date,
the date that we approve the assignment
determines when the assignor’s
liabilities cease to accrue.
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§ 256.620 Are there any interests I may
assign without MMS approval?
(a) You may create or transfer carried
working interests, overriding royalty
interests, or payments out of production
without MMS approval. However, you
must send us a copy of each instrument
creating or transferring such interests for
record purposes. For each lease affected,
you must pay the service fee listed in
§ 256.104 with your documents
submitted for record.
(b) If you submit documents for
record purposes that are not required by
these regulations, for each lease
affected, you must pay the service fee
listed in § 256.104 with your document
submissions. The MMS may decline to
accept for filing such documents and
the service fee will not be refunded.
§ 256.621 What reports must I submit for
lease term pipelines when MMS approves a
lease assignment?
Within 30 calendar days after MMS
approves an assignment of a lease, or
approves a new designation of operator
for a lease under § 250.143 or § 250.144,
you (the new lessee or designated lease
operator) must submit a report to the
Regional Supervisor that:
(a) Lists every lease term pipeline (see
definition at § 250.105), including
decommissioned pipelines on the lease;
and
(b) Indicates which pipelines
remained as lease term pipelines after
the lease assignment was approved by
MMS.
Helium
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helium, except for the value of the
helium itself. We may erect, maintain,
and operate on your lease any reduction
work and other equipment necessary for
helium extraction. Our extraction of
helium will be conducted in a manner
to not cause substantial delays in the
delivery of gas to your purchaser.
Subpart G—Ending a Lease
§ 256.700
May I end the lease myself?
You may join with all record title
owners to relinquish all or any officially
designated subdivision of your lease at
any time by filing three original copies
of your request with MMS on Form
MMS–152 entitled, Relinquishment of
Federal OCS Oil and Gas Lease. The
relinquishment is effective on the date
of filing. Relinquishing your lease does
not relieve you of any accrued
obligations, either monetary or nonmonetary.
mstockstill on PROD1PC66 with PROPOSALS
§ 256.702
Will MMS end my lease?
(a) The MMS may cancel your lease
under section 5(a) of the Act, 43 U.S.C.
1334(a), if we find that continued
activity would probably cause serious
harm or damage to life, property, any
mineral, National security or defense, or
to the marine, coastal, or human
environment; that the threat or harm or
damage will not disappear or decrease
to an acceptable level within a
reasonable period of time; and that the
advantages of cancellation outweigh the
advantages of continuing the lease.
Refer to 30 CFR part 250, subpart A, for
procedures on lease cancellation and
compensation.
(b) The MMS may cancel your nonproducing lease if you fail to comply
with any provision of the Act, lease, or
applicable regulations, if the failure
continues for 30 days after we send you
written notice of such failure.
Cancellation is subject to judicial review
under section 23(b) of the Act, 43 U.S.C.
1349(b).
(c) The MMS may cancel your
producing lease if you fail to comply
with any provision of the Act, lease, or
applicable regulations, only after the
judicial proceedings required under
section 5(d) of the Act, 43 U.S.C.
1334(d).
(d) The MMS may cancel your lease
if we find proof that the lease was
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Subpart H—[Reserved]
Subpart I—Bonus or Royalty Credits
for Exchange of Certain Leases
§ 256.900 Which leases may I exchange for
a bonus or royalty credit?
How does a lease end?
Your lease will expire by its own
terms at the end of its initial period, if
you have not taken actions to extend the
lease through production in paying
quantities, drilling operations, workover
operations, or a suspension under 30
CFR part 250.
§ 256.701
obtained by fraud or misrepresentation.
You will have notice and an
opportunity to be heard prior to lease
cancellation.
You may exchange a lease for a bonus
or royalty credit if it:
(a) Was in effect on December 20,
2006, and
(b) Is located in:
(1) The Eastern planning area and
within 125 miles of the coastline of the
State of Florida, or
(2) The Central planning area and
within the Desoto Canyon OPD, the
Destin Dome OPD, or the Pensacola
OPD and within 100 miles of the
coastline of the State of Florida.
§ 256.901 How much bonus or royalty
credit will MMS grant in exchange for a
lease?
The amount of the bonus or royalty
credit for an exchanged lease equals the
sum of:
(a) The amount of the bonus payment;
and
(b) All rental paid for the lease as of
the date the lessee submits the request
to exchange the lease under § 256.902 to
MMS.
§ 256.902 What must I do to obtain a
bonus or royalty credit?
(a) To obtain the bonus or royalty
credit, all of the record title interest
owners in the lease must submit the
following to the MMS Regional
Supervisor for Leasing and Environment
for the GOM on or before October 12,
2010:
(1) A written request to exchange the
lease for the bonus or royalty credit,
signed by all record title interest owners
in the lease.
(2) The name and contact information
for a person who will act as a contact
for each record title interest owner.
(3) Documentation of each record title
interest owner’s percentage share in the
lease.
(4) A list of all bonus and rental
payments for that lease made by, or on
behalf of, each of the current record title
owners.
(5) A written relinquishment of the
lease as described in § 256.701.
Notwithstanding § 256.701, the
relinquishment will become effective
when the credit becomes effective under
paragraph (b) of this section.
(b) The credit becomes effective when
MMS issues a certification to the record
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Fmt 4702
Sfmt 4702
25199
title interest owners that the lease has
qualified for the credit.
§ 256.903 How is the bonus or royalty
credit allocated among multiple lease
owners?
The MMS will allocate the bonus or
royalty credit for an exchanged lease to
the current record title interest owners
in the same percentage share as each
owner has in the lease as of the date of
the request to exchange the lease.
§ 256.904 How may I use the bonus or
royalty credit?
(a) You may use a credit issued under
this part in lieu of a monetary payment
due under any lease in the Gulf of
Mexico not subject to the revenue
distribution provisions of section 8(g)(2)
of the OCSLA (43 U.S.C. 1337(g)(2)) for
either:
(1) A bonus for acquisition of an
interest in a new lease; or
(2) Royalty due on oil and gas
production after October 12, 2010.
(b) You may not use a bonus or
royalty credit in lieu of delivering oil or
gas taken as royalty-in-kind.
(c) If you have any credit that remains
unused after 5 years from the date MMS
issued the credit, MMS reserves the
right to apply the remaining credit to
your ongoing obligations.
§ 256.905 How do I transfer a bonus or
royalty credit to another person?
(a) You may transfer your bonus or
royalty credit to any other person by
submitting to the MMS Adjudication
Unit for the Gulf of Mexico two
originally executed transfer letters of
agreement.
(b) Authorized officers of all
companies involved in transferring and
receiving the credit must sign the
transfer letters of agreement as indicated
on the qualification card filed with
MMS.
(c) A transfer letter of agreement must
include:
(1) The effective date of the transfer,
(2) The OCS–G number for the lease
that originally qualified for the credit,
(3) The amount of the credit being
transferred,
(4) Company names punctuated
exactly as filed on the qualification card
at MMS, and
(5) A corporate seal, only if MMS
used a corporate seal qualification
process for your corporation.
(d) The transferee of a credit
transferred under this section may use
it in accordance with § 256.904 as soon
as MMS sends a confirmation of the
transfer to the transferee.
E:\FR\FM\27MYP1.SGM
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Federal Register / Vol. 74, No. 100 / Wednesday, May 27, 2009 / Proposed Rules
PART 260—OUTER CONTINENTAL
SHELF OIL AND GAS LEASING
5. The authority citation for 30 CFR
part 260 is revised to read as follows:
Authority: 43 U.S.C. 1334.
6. Amend 30 CFR part 260 by
removing Subpart D.
[FR Doc. E9–12155 Filed 5–26–09; 8:45 am]
BILLING CODE 4310–MR–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R09–OAR–2009–0133; FRL–8909–7]
Approval and Promulgation of Air
Quality Implementation Plans;
California; Finding of Attainment of the
1-Hour Ozone Standard for the Ventura
County Area
mstockstill on PROD1PC66 with PROPOSALS
AGENCY: Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
SUMMARY: On April 15, 2009 the
California Air Resources Board (CARB)
requested that EPA find that the Ventura
County ozone nonattainment area has
attained the revoked 1-hour ozone
National Ambient Air Quality Standard
(NAAQS). After a review of this
submission and of the relevant
monitoring data, EPA is proposing to
make such a finding.
This finding would relieve the area of
the requirement to implement
contingency measures for failure to
attain the standard by its attainment
date, as well as Clean Air Act penalty
fee requirements for severe and extreme
ozone nonattainment areas that have not
attained the 1-hour standard by the
applicable attainment date.
DATES: Any comments on this proposal
must arrive by June 26, 2009.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–R09–
OAR–2009–0133, by one of the
following methods:
1. http://www.regulations.gov. Follow
the on-line instructions for submitting
comments.
2. E-mail: [email protected].
3. Fax: (415) 947–3579.
4. Mail or Delivery: Greg Nudd (AIR–
2), U.S. Environmental Protection
Agency Region IX, 75 Hawthorne Street,
San Francisco, CA 94105–3901.
Instructions: Direct your comments to
Docket ID No. EPA–R09–OAR–2009–
0133. EPA’s policy is that all comments
received will be included in the public
docket without change and may be
VerDate Nov<24>2008
17:44 May 26, 2009
Jkt 217001
made available online at http://
www.regulations.gov, including any
personal information provided, unless a
comment includes information claimed
to be Confidential Business Information
(CBI) or other information whose
disclosure is restricted by statute. Do
not submit information that you
consider to be CBI or otherwise
protected through http://
www.regulations.gov or e-mail. The
http://www.regulations.gov Web site is
an ‘‘anonymous access’’ system, which
means EPA will not know your identity
or contact information unless you
provide it in the body of your comment.
If you send an e-mail comment directly
to EPA without going through http://
www.regulations.gov, your e-mail
address will be automatically captured
and included as part of the comment
that is placed in the public docket and
made available on the Internet. If you
submit an electronic comment, EPA
recommends that you include your
name and other contact information in
the body of your comment and with any
disk or CD–ROM you submit. If EPA
cannot read your comment due to
technical difficulties and cannot contact
you for clarification, EPA may not be
able to consider your comment.
Electronic files should avoid the use of
special characters, any form of
encryption, and be free of any defects or
viruses.
Docket: The index to the docket for
this action is available electronically at
www.regulations.gov and in hard copy
at EPA Region IX, 75 Hawthorne Street,
San Francisco, California. While all
documents in the docket are listed in
the index, some information may be
publicly available only at the hard copy
location (e.g., copyrighted material), and
some may not be publicly available at
either location (e.g., confidential
business information). To inspect the
hard copy materials, please schedule an
appointment during normal business
hours with the contact listed in the FOR
FURTHER INFORMATION CONTACT section.
FOR FURTHER INFORMATION CONTACT: Greg
Nudd, Environmental Engineer, EPA
Region IX, (415) 947–4107,
[email protected].
SUPPLEMENTARY INFORMATION:
Throughout this document whenever
‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean
EPA.
This proposal addresses the California
Air Resources Board (CARB) request
that EPA find that the Ventura County
ozone nonattainment area has attained
the revoked 1-hour ozone National
Ambient Air Quality Standard
(NAAQS). In the Rules and Regulations
section of this Federal Register, we are
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Fmt 4702
Sfmt 4702
making this finding as a direct final rule
without prior proposal because we
believe this action is not controversial.
If we receive adverse comments,
however, we will publish a timely
withdrawal of the direct final rule and
address the comments in a subsequent
action based on this proposed rule.
We do not plan to open a second
comment period, so anyone interested
in commenting should do so at this
time. If we do not receive adverse
comments, no further activity is
planned. For further information, please
see the direct final action.
Dated: May 14, 2009.
Jane Diamond,
Acting Regional Administrator, Region IX.
[FR Doc. E9–12137 Filed 5–26–09; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Parts 260 and 261
[EPA–HQ–RCRA–2009–0315; FRL–8905–6]
RIN 2050–AG31
Definition of Solid Waste Public
Meeting
AGENCY: Environmental Protection
Agency.
ACTION: Definition of Solid Waste Notice
of Public Meeting and Request for
Comments.
SUMMARY: The Environmental Protection
Agency (EPA) is announcing a public
meeting regarding the Agency’s recent
regulation on the definition of solid
waste under Subtitle C of the Resource
Conservation and Recovery Act (RCRA).
Specifically, EPA is currently reviewing
a petition filed with the Administrator
under RCRA section 7004(a) requesting
that the Agency reconsider and repeal
the recently promulgated revisions to
the definition of solid waste for
hazardous secondary materials being
reclaimed, and is soliciting comments
and information to assist the agency in
evaluating the petition. EPA does not
plan to repeal the rule, but is interested
in receiving comments on possible
revisions to the rule. Persons may
register to speak at the public meeting
or may submit written comments to the
address below.
DATES: The public meeting will be held
on June 30, 2009, from 9 a.m. to 4:30
p.m. The closing date for advance
registration is June 23, 2009. Persons
may also submit written or electronic
comments by July 14, 2009 (see
ADDRESSES). The administrative record
E:\FR\FM\27MYP1.SGM
27MYP1
| File Type | application/pdf |
| File Modified | 2010-08-26 |
| File Created | 2010-08-26 |