30 CFR 551 Regulations

Ocean Energy Management, Interior

§ 551.1

§ 550.1497 When will BOEM monitor
my financial solvency?
(a) If you are presumptively financially solvent under § 550.1496(b), BOEM
will determine your net worth as described under §§ 550.1496(b) and (c) to
evaluate your financial solvency at
least annually on the date we first determined that you demonstrated financial solvency as long as you have active appeals and each time you appeal
a new order.
(b) If you ask us to consult a business-information or credit-reporting
service or program under § 550.1496(c),
we will consult a service or program
annually as long as you have active appeals and each time you appeal a new
order.
(c) If our bond-approving officer determines that you are no longer financially solvent, you must post a bond or
other BOEM-specified surety instrument under §§ 550.1490 and 550.1491.

Subparts O–S [Reserved]

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PART
551—GEOLOGICAL
AND
GEOPHYSICAL (G&G) EXPLORATIONS OF THE OUTER CONTINENTAL SHELF
Sec.
551.1 Definitions.
551.2 Purpose of this part.
551.3 Authority and applicability of this
part.
551.4 Types of G&G activities that require
permits or Notices.
551.5 Applying for permits or filing Notices.
551.6 Obligations and rights under a permit
or a Notice.
551.7 Test drilling activities under a permit.
551.8 Inspection and reporting requirements
for activities under a permit.
551.9 Temporarily stopping, canceling, or
relinquishing activities approved under a
permit.
551.10 Penalties and appeals.
551.11 Submission, inspection, and selection
of geological data and information collected under a permit and processed by
permittees or third parties.
551.12 Submission, inspection, and selection
of geophysical data and information collected under a permit and processed by
permittees or third parties.
551.13 Reimbursement for the costs of reproducing data and information and certain
processing costs.

551.14 Protecting and disclosing data and
information submitted to BOEM under a
permit.
551.15 Authority for information collection.
AUTHORITY: Section 104, Public Law 97–451,
96 Stat. 2451 (30 U.S.C. 1714), Public Law 109–
432, Div C, Title I, 120 Stat. 3000; 30 U.S.C.
1751; 31 U.S.C. 9701; 43 U.S.C. 1334; 33 U.S.C.
2704, 2716; E.O. 12777, as amended; 43 U.S.C.
1331 et seq., 43 U.S.C. 1337.
SOURCE: 76 FR 64623, Oct. 18, 2011, unless
otherwise noted.

§ 551.1 Definitions.
Terms used in this part have the following meaning:
Act means the Outer Continental
Shelf Lands Act (OCSLA), as amended
(43 U.S.C. 1331 et seq.).
Analyzed geological information means
data collected under a permit or a lease
that have been analyzed. Analysis may
include, but is not limited to, identification of lithologic and fossil content, core analyses, laboratory analyses of physical and chemical properties, well logs or charts, results from
formation fluid tests, and descriptions
of hydrocarbon occurrences or hazardous conditions.
Archaeological interest means capable
of providing scientific or humanistic
understanding of past human behavior,
cultural adaptation, and related topics
through the application of scientific or
scholarly techniques, such as controlled observation, contextual measurements, controlled collection, analysis, interpretation, and explanation.
Archaeological resources mean any material remains of human life or activities that are at least 50 years of age
and of archaeological interest.
Coastal environment means the physical, atmospheric, and biological components, conditions, and factors that
interactively determine the productivity, 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 waters therein and thereunder), strongly influenced
by each other and in proximity to the
shorelines of the several coastal States
and extends seaward to the outer limit
of the U.S. territorial sea.

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§ 551.1

30 CFR Ch. V (7–1–17 Edition)

Coastal Zone Management Act means
the Coastal Zone Management Act of
1972, as amended (16 U.S.C. 1451 et seq.).
Data means facts, statistics, measurements, or samples that have not
been analyzed, processed, or interpreted.
Deep stratigraphic test means drilling
that involves the penetration into the
sea bottom of more than 500 feet (152
meters).
Director means the Director of the
Bureau of Ocean Energy Management,
U.S. Department of the Interior, or a
subordinate authorized to act on the
Director’s behalf.
Exploration means the commercial
search for oil, gas, and sulphur. Activities classified as exploration include,
but are not limited to:
(1) Geological and geophysical marine and airborne surveys where magnetic, gravity, seismic reflection, seismic refraction, gas sniffers, coring, or
other systems are used to detect or
imply the presence of oil, gas, or sulphur; and
(2) Any drilling, whether on or off a
geological structure.
Geological and geophysical scientific research means any oil, gas, or sulphur
related investigation conducted in the
OCS for scientific and/or research purposes. Geological, geophysical, and
geochemical data and information
gathered and analyzed are made available to the public for inspection and reproduction at the earliest practicable
time. The term does not include commercial geological or geophysical exploration or research.
Geological exploration means exploration that uses geological and geochemical techniques (e.g., coring and
test drilling, well logging, and bottom
sampling) to produce data and information on oil, gas, and sulphur resources
in support of possible exploration and
development activities. The term does
not include geological scientific research.
Geological information means geological or geochemical data that have been
analyzed, processed, or interpreted.
Geophysical data means measurements that have not been processed or
interpreted.
Geophysical exploration means exploration that utilizes geophysical tech-

niques (e.g., gravity, magnetic, electromagnetic, or seismic) to produce data
and information on oil, gas, and sulphur resources in support of possible
exploration and development activities. The term does not include geophysical scientific research.
Geophysical information means geophysical data that have been processed
or interpreted.
Governor means the Governor of a
State or the person or entity lawfully
designated to exercise the powers
granted to a Governor pursuant to the
Act.
Human environment means the physical, social, and economic components,
conditions, and factors which 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.
Hydrocarbon occurrence means the direct or indirect detection during drilling operations of any liquid or gaseous
hydrocarbons by examination of well
cuttings, cores, gas detector readings,
formation fluid tests, wireline logs, or
by any other means. The term does not
include background gas, minor accumulations of gas, or heavy oil residues
on cuttings and cores.
Interpreted
geological
information
means knowledge, often in the form of
schematic cross sections, 3-dimensional representations, and maps, developed by determining the geological
significance of geological data and analyzed and processed geologic information.
Interpreted geophysical information
means knowledge, often in the form of
seismic cross sections, 3-dimensional
representations, and maps, developed
by determining the geological significance of geophysical data and processed geophysical information.
Lease means an agreement which is
issued under section 8 or maintained
under section 6 of the Act and which
authorizes exploration for, and development and production of, minerals or
the area covered by that authorization,
whichever is required by the context.
Lessee means a person who has entered into, or is the BOEM approved assignee of, a lease with the United
States to explore for, develop, and

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Ocean Energy Management, Interior

§ 551.1

produce the leased minerals. The term
‘‘lessee’’ also includes an owner of operating rights.
Marine environment means the physical, atmospheric, and biological components, conditions, and factors that
interactively determine the quality of
the marine ecosystem in the coastal
zone and in the OCS.
Material remains mean physical evidence of human habitation, occupation,
use, or activity, including the site, location, or context in which such evidence is situated.
Minerals mean oil, gas, sulphur,
geopressured-geothermal and associated resources, and all other minerals
which are authorized by an Act of Congress to be produced from public lands
as defined in section 103 of the Federal
Land Policy and Management Act of
1976 (43 U.S.C. 1702).
Notice means a written statement of
intent to conduct geological or geophysical scientific research related to
oil, gas, and sulphur in the OCS other
than under a permit.
Oil, gas, and sulphur means oil, gas,
sulphur, geopressured-geothermal, and
associated resources.
Outer Continental Shelf (OCS) means
all submerged lands lying seaward and
outside the area of lands beneath navigable waters as defined in section 2 of
the Submerged Lands Act (43 U.S.C.
1301), and of which the subsoil and seabed appertain to the United States and
are subject to its jurisdiction and control.
Permit means the contract or agreement, other than a lease, issued pursuant to this part, under which a person
acquires the right to conduct on the
OCS, in accordance with appropriate
statutes, regulations, and stipulations:
(1) Geological exploration for mineral
resources;
(2) Geophysical exploration for mineral resources;
(3) Geological scientific research; or
(4) Geophysical scientific research.
Permittee means the person authorized by a permit issued pursuant to
this part to conduct activities on the
OCS.
Person means a citizen or national of
the United States; an alien lawfully admitted for permanent residence in the
United States as defined in section 8

U.S.C. 1101(a)(20); a private, public, or
municipal corporation organized under
the laws of the United States or of any
State or territory thereof; and associations of such citizens, nationals, resident aliens, or private, public, or municipal corporations, States, or political subdivisions of States or anyone
operating in a manner provided for by
treaty or other applicable international agreements. The term does
not include Federal agencies.
Processed geological or geophysical information means data collected under a
permit and later processed or reprocessed. Processing involves changing the
form of data so as to facilitate interpretation. Processing operations may
include, but are not limited to, applying corrections for known perturbing
causes, rearranging or filtering data,
and combining or transforming data
elements. Reprocessing is the additional processing other than ordinary
processing used in the general course of
evaluation. Reprocessing operations
may include varying identified parameters for the detailed study of a specific
problem area. Reprocessing may occur
several years after the original processing date. Reprocessing is determined
to be completed on the date that the
reprocessed information is first available in a useable format for in-house
interpretation by BOEM or the permittee, or becomes first available to
third parties via sale, trade, license
agreement, or other means.
Secretary means the Secretary of the
Interior or a subordinate authorized to
act on the Secretary’s behalf.
Shallow test drilling means drilling
into the sea bottom to depths less than
those specified in the definition of a
deep stratigraphic test.
Significant
archaeological
resource
means those archaeological resources
that meet the criteria of significance
for eligibility to the National Register
of Historic Places as defined in 36 CFR
60.4.
Third Party means any person other
than the permittee or a representative
of the United States, including all persons who obtain data or information
acquired under a permit from the permittee, or from another third party, by
sale, trade, license agreement, or other
means.

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§ 551.2

30 CFR Ch. V (7–1–17 Edition)

Violation means a failure to comply
with any provision of the Act, or a provision of a regulation or order issued
under the Act, or any provision of a
lease, license, or permit issued under
the Act.
You means a person who applies for
and/or obtains a permit, or files a Notice to conduct geological or geophysical exploration or scientific research related to oil, gas, and sulphur
in the OCS.
§ 551.2

Purpose of this part.

(a) To allow you to conduct G&G activities in the OCS related to oil, gas,
and sulphur on unleased lands or on
lands under lease to a third party.
(b) To ensure that you carry out G&G
activities in a safe and environmentally sound manner so as to prevent harm or damage to, or waste of,
any natural resources (including any
mineral deposit in areas leased or not
leased), any life (including fish and
other aquatic life), property, or the
marine, coastal, or human environment.
(c) To inform you and third parties of
your legal and contractual obligations.
(d) To inform you and third parties of
the U.S. Government’s rights to access
G&G data and information collected
under permit in the OCS, reimbursement for submittal of data and information, and the proprietary terms of
data and information submitted to, and
retained by, BOEM.

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§ 551.3 Authority and applicability of
this part.
BOEM authorizes you to conduct exploration or scientific research activities under this part in accordance with
the Act, the regulations in this part,
orders of the Director/Regional Director, and other applicable statutes, regulations, and amendments.
(a) This part does not apply to G&G
exploration conducted by or on behalf
of the lessee on a lease in the OCS.
Refer to 30 CFR part 250 if you plan to
conduct G&G activities related to oil,
gas, or sulphur under terms of a lease.
(b) Federal agencies are exempt from
the regulations in this part.
(c) G&G exploration or G&G scientific research related to minerals

other than oil, gas, and sulphur is covered by regulations at 30 CFR part 580.
§ 551.4 Types of G&G activities that require permits or Notices.
(a) Exploration. You must have a
BOEM-approved permit to conduct
G&G exploration, including deep stratigraphic tests, for oil, gas, or sulphur
resources. If you conduct both geological and geophysical exploration, you
must have a separate permit for each.
(b) Scientific research. You may only
conduct G&G scientific research related to oil, gas, and sulphur in the
OCS after you obtain a BOEM-approved
permit or file a Notice.
(1) Permit. You must obtain a permit
if the research activities you propose
to conduct involve:
(i) Using solid or liquid explosives;
(ii) Drilling a deep stratigraphic test;
or
(iii) Developing data and information
for proprietary use or sale.
(2) Notice. Any other G&G scientific
research that you conduct related to
oil, gas, and sulphur in the OCS requires you to file a Notice with the Regional Director at least 30 days before
you begin. If circumstances preclude a
30-day Notice, you must provide oral
notification and followup in writing.
You must also inform BOEM in writing
when you conclude your work.
§ 551.5 Applying for permits or filing
Notices.
(a) Permits. You must submit a signed
original and three copies of the BOEM
permit application form (Form BOEM–
0327). The form includes names of persons; the type, location, purpose, and
dates of activity; and environmental
and other information. A nonrefundable service fee of $2,012 must be paid
electronically through Pay.gov at:
https://www.pay.gov/paygov/, and you
must include a copy of the Pay.gov confirmation receipt page with your application.
(b) Disapproval of permit application. If
BOEM disapproves your application for
a permit, the Regional Director will
state the reasons for the denial and
will advise you of the changes needed
to obtain approval.
(c) Notices. You must sign and date a
Notice and state:

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Ocean Energy Management, Interior

§ 551.7

(1) The name(s) of the person(s) who
will conduct the proposed research;
(2) The name(s) of any other person(s)
participating in the proposed research,
including the sponsor;
(3) The type of research and a brief
description of how you will conduct it;
(4) The location in the OCS, indicated
on a map, plat, or chart, where you will
conduct research;
(5) The proposed dates you project for
your research activity to start and end;
(6) The name, registry number, registered owner, and port of registry of
vessels used in the operation;
(7) The earliest practicable time you
expect to make the data and information resulting from your research activity available to the public;
(8) Your plan of how you will make
the data and information you collected
available to the public;
(9) That you and others involved will
not sell or withhold for exclusive use
the data and information resulting
from your research; and
(10) At your option, you may submit
(as a substitute for the material required in paragraphs (c)(7), (c)(8), and
(c)(9) of this section) the nonexclusive
use agreement for scientific research
attachment to Form BOEM–0327.
(d) Filing locations. You must apply
for a permit or file a Notice at one of
the following locations:
(1) For the OCS off the State of Alaska—the Regional Supervisor for Resource Evaluation, Bureau of Ocean
Energy Management, Alaska OCS Region, 3801 Centerpoint Drive, Suite 500,
Anchorage, Alaska 99503.
(2) For the OCS off the Atlantic
Coast and in the Gulf of Mexico—the
Regional Supervisor for Resource Evaluation, Bureau of Ocean Energy Management, Gulf of Mexico OCS Region,
1201 Elmwood Park Boulevard, New Orleans, Louisiana 70123–2394.
(3) For the OCS off the coast of the
States of California, Oregon, Washington, or Hawaii—the Regional Supervisor for Resource Evaluation, Bureau
of Ocean Energy Management, Pacific
OCS Region, 760 Paseo Camarillo, Suite
102 (CM 102), Camarillo, California
93010.
[76 FR 64623, Oct. 18, 2011, as amended at 80
FR 57096, Sept. 22, 2015]

§ 551.6 Obligations and rights under a
permit or a Notice.
While conducting G&G exploration or
scientific research activities under
BOEM permit or Notice:
(a) You must not:
(1) Interfere with or endanger operations under any lease, right-of-way,
easement, right-of-use, Notice, or permit issued or maintained under the
Act;
(2) Cause harm or damage to life (including fish and other aquatic life),
property, or to the marine, coastal, or
human environment;
(3) Cause harm or damage to any
mineral resource (in areas leased or not
leased);
(4) Cause pollution;
(5) Disturb archaeological resources;
(6) Create hazardous or unsafe conditions; or
(7) Unreasonably interfere with or
cause harm to other uses of the area.
(b) You must immediately report to
the Regional Director if you:
(1) Detect hydrocarbon occurrences;
(2) Detect environmental hazards
which imminently threaten life and
property; or
(3) Adversely affect the environment,
aquatic life, archaeological resources,
or other uses of the area where you are
conducting exploration or scientific research activities.
(c) You must also consult and coordinate your G&G activities with other
users of the area for navigation and
safety purposes.
(d) Any persons conducting shallow
test drilling or deep stratigraphic test
drilling activities under a permit must
use the best available and safest technologies that the Regional Director determines to be economically feasible.
(e) You may not claim any oil, gas,
sulphur, or other minerals you discover
while conducting operations under a
permit or Notice.
§ 551.7 Test drilling activities under a
permit.
(a) Shallow test drilling. Before you
begin shallow test drilling under a permit, the Regional Director may require
you to:
(1) Gather and submit seismic, bathymetric, sidescan sonar, magnetometer,

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§ 551.7

30 CFR Ch. V (7–1–17 Edition)

or other geophysical data and information to determine shallow structural
detail across and in the vicinity of the
proposed test.
(2) Submit information for coastal
zone consistency certification according to paragraphs (b)(3) and (4) of this
section, and for protecting archaeological resources according to paragraph (b)(5) of this section.
(3) Allow all interested parties the
opportunity to participate in the shallow test according to paragraph (c) of
this section, and meet bonding requirements according to paragraph (d) of
this section.
(b) Deep stratigraphic tests. You must
submit to the appropriate BOEM or
BSEE Regional Director, at the address
in § 551.7(d), a drilling plan (submitted
to BOEM), an environmental report
(submitted to BOEM), an Application
for Permit to Drill (Form BSEE–0123)
(submitted to BSEE), and a Supplemental APD Information Sheet (Form
BSEE–0123S) (submitted to BSEE) as
follows:
(1) Drilling plan. The drilling plan
must include:
(i) The proposed type, sequence, and
timetable of drilling activities;
(ii) A description of your drilling rig,
indicating the important features with
special attention to safety, pollution
prevention, oil-spill containment and
cleanup plans, and onshore disposal
procedures;
(iii) The location of each deep stratigraphic test you will conduct, including the location of the surface and projected bottomhole of the borehole;
(iv) The types of geological and geophysical survey instruments you will
use before and during drilling;
(v) Seismic, bathymetric, sidescan
sonar, magnetometer, or other geophysical data and information sufficient to evaluate seafloor characteristics, shallow geologic hazards, and
structural detail across and in the vicinity of the proposed test to the total
depth of the proposed test well; and
(vi) Other relevant data and information that the BOEM Regional Director
requires.
(2) Environmental report. The environmental report must include all of the
following material:

(i) A summary with data and information available at the time you submitted the related drilling plan. BOEM
will consider site-specific data and information developed since the most recent environmental impact statement
or other environmental impact analysis in the immediate area. The summary must meet the following requirements:
(A) You must concentrate on the
issues specific to the site(s) of drilling
activity. However, you only need to
summarize data and information discussed in any environmental reports,
analyses, or impact statements prepared for the geographic area of the
drilling activity.
(B) You must list referenced material. Include brief descriptions and a
statement of where the material is
available for inspection.
(C) You must refer only to data that
are available to BOEM.
(ii) Details about your project such
as:
(A) A list and description of new or
unusual technologies;
(B) The location of travel routes for
supplies and personnel;
(C) The kinds and approximate levels
of energy sources;
(D) The environmental monitoring
systems; and
(E) Suitable maps and diagrams
showing details of the proposed project
layout.
(iii) A description of the existing environment. For this section, you must
include the following information on
the area:
(A) Geology;
(B) Physical oceanography;
(C) Other uses of the area;
(D) Flora and fauna;
(E) Existing environmental monitoring systems; and
(F) Other unusual or unique characteristics that may affect or be affected
by the drilling activities.
(iv) A description of the probable impacts of the proposed action on the environment and the measures you propose for mitigating these impacts.
(v) A description of any unavoidable
or irreversible adverse effects on the
environment that could occur.
(vi) Other relevant data that the
BOEM Regional Director requires.

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Ocean Energy Management, Interior

§ 551.7

(3) Copies for coastal States. You must
submit copies of the drilling plan and
environmental report to the BOEM Regional Director for transmittal to the
Governor of each affected coastal State
and the coastal zone management
agency of each affected coastal State
that has an approved program under
the Coastal Zone Management Act.
(BOEM Regional Director will make
the drilling plan and environmental report available to appropriate Federal
agencies and the public according to
the Department of the Interior’s policies and procedures).
(4) Certification of coastal zone management program consistency and State concurrence. When required under an approved coastal zone management program of an affected State, your drilling
plan must include a certification that
the proposed activities described in the
plan comply with enforceable policies
of, and will be conducted in a manner
consistent with such State’s program.
BOEM Regional Director may not approve any of the activities described in
the drilling plan unless the State concurs with the consistency certification
or the Secretary of Commerce makes
the finding authorized by section
307(c)(3)(B)(iii) of the Coastal Zone
Management Act.
(5) Protecting archaeological resources.
If the Regional Director believes that
an archaeological resource may exist
in the area that may be affected by
drilling, the Regional Director will notify you of the need to prepare an archaeological report.
(i) If the evidence suggests that an
archaeological
resource
may
be
present, you must:
(A) Locate the site of the drilling so
as to not adversely affect the area
where the archaeological resources
may be, or
(B) Establish to the satisfaction of
the BOEM Regional Director that an
archaeological resource does not exist
or will not be adversely affected by
drilling. This must be done by further
archaeological
investigation,
conducted by an archaeologist and a geophysicist, using survey equipment and
techniques deemed necessary by the
Regional Director. A report on the investigation must be submitted to the
BOEM Regional Director for review.

(ii) If the BOEM Regional Director
determines that an archaeological resource is likely to be present in the
area that may be affected by drilling,
and may be adversely affected by drilling, the BOEM Regional Director will
notify you immediately. You must
take no action that may adversely affect the archaeological resource unless
an investigation by BOEM determines
that
the
resource
is
not
archaeologically significant.
(iii) If you discover any archaeological resource while drilling, you
must immediately halt drilling and report the discovery to the BOEM Regional Director. If investigations determine that the resource is significant,
the BOEM Regional Director will inform you how to protect it.
(6) [Reserved]
(7) Revising an approved drilling plan.
Before you revise an approved drilling
plan, you must obtain the BOEM Regional Director’s approval.
(8) [Reserved]
(9) Deadline for completing a deep stratigraphic test. If your deep stratigraphic
test well is within 50 geographic miles
of a tract that BOEM has identified for
a future lease sale, as listed on the currently approved OCS leasing schedule,
you must complete all drilling activities and submit the data and information to the BOEM Regional Director at
least 60 days before the first day of the
month in which BOEM schedules the
lease sale. However, the BOEM Regional Director may extend your permit duration to allow you to complete
drilling activities and submit data and
information if the extension is in the
National interest.
(c) Group participation in test drilling.
BOEM encourages group participation
for deep stratigraphic tests.
(1) Purpose of group participation. The
purpose is to minimize duplicative
G&G activities involving drilling into
the seabed of the OCS.
(2) Providing opportunity for participation in a deep stratigraphic test. When
you propose to drill a deep stratigraphic test, you must give all interested persons an opportunity to participate in the test drilling through a
signed agreement on a cost-sharing
basis. You may include a penalty for
late participation of not more than 100

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§ 551.8

30 CFR Ch. V (7–1–17 Edition)

percent of the cost to each original
participant in addition to the original
share cost.
(i) The participants must assess and
distribute late participation penalties
in accordance with the terms of the
agreement.
(ii) For a significant hydrocarbon occurrence that the Regional Director
announces to the public, the penalty
for subsequent late participants may
be raised to not more than 300 percent
of the cost of each original participant
in addition to the original share cost.
(3) Providing opportunity for participation in a shallow test drilling project.
When you apply to conduct shallow
test drilling activities, you must, if ordered by the Regional Director or required by the permit, give all interested persons an opportunity to participate in the test activity on a costsharing basis. You may include a penalty provision for late participation of
not more than 50 percent of the cost to
each original participant in addition to
the original share cost.
(4) Procedures for group participation
in drilling activities. You must:
(i) Publish a summary statement
that describes the approved activity in
a relevant trade publication;
(ii) Forward a copy of the published
statement to the Regional Director;
(iii) Allow at least 30 days from the
summary statement publication date
for other persons to join as original
participants;
(iv) Compute the estimated cost by
dividing the estimated total cost of the
program by the number of original participants; and
(v) Furnish the Regional Director
with a complete list of all participants
before starting operations, or at the
end of the advertising period if you
begin operations before the advertising
period is over. The names of any subsequent or late participants must also be
furnished to the Regional Director.
(5) Changes to the original application
for test drilling. If you propose changes
to the original application and the Regional Director determines that the
changes are significant, the Regional
Director will require you to publish the
changes for an additional 30 days to
give other persons a chance to join as
original participants.

(d) Bonding requirements. You must
submit a bond under this part before
you may start a deep stratigraphic
test.
(1) Before BOEM issues a permit authorizing the drilling of a deep stratigraphic test, you must either:
(i) Furnish to BOEM a bond of not
less than $200,000 that guarantees compliance with all the terms and conditions of the permit; or
(ii) Maintain a $1 million bond that
guarantees compliance with all the
terms and conditions of the permit you
hold for the OCS area where you propose to drill.
(2) You must provide additional security to BOEM if the Regional Director
determines that it is necessary for the
permit or area.
(3) The Regional Director may require you to provide a bond, in an
amount the Regional Director prescribes, before authorizing you to drill
a shallow test well.
(4) Your bond must be on a form approved by the Deputy Director.
[76 FR 64623, Oct. 18, 2011, as amended at 80
FR 57097, Sept. 22, 2015]

§ 551.8 Inspection and reporting requirements for activities under a
permit.
(a) Inspection of permit activities. You
must allow BOEM representatives to
inspect your exploration or scientific
research activities under a permit.
They will determine whether operations are adversely affecting the environment, aquatic life, archaeological
resources, or other uses of the area.
BOEM will reimburse you for food,
quarters, and transportation that you
provide for BOEM representatives if
you send in your reimbursement request to the Region that issued the
permit within 90 days of the inspection.
(b) Approval for modifications. Before
you begin modified operations, you
must submit a written request describing the modifications and receive the
Regional Director’s oral or written approval. If circumstances preclude a
written request, you must make an
oral request and follow up in writing.
(c) Reports. (1) You must submit status reports on a schedule specified in
the permit and include a daily log of
operations.

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§ 551.10

(2) You must submit a final report of
exploration or scientific research activities under a permit within 30 days
after the completion of acquisition activities under the permit. You may
combine the final report with the last
status report and must include each of
the following:
(i) A description of the work performed.
(ii) Charts, maps, plats, and digital
navigational data in a format specified
by the Regional Director, showing the
areas and blocks in which any exploration or permitted scientific research
activities were conducted. Identify the
lines of geophysical traverses and their
locations including a reference sufficient to identify the data produced during each activity.
(iii) The dates on which you conducted the actual exploration or scientific research activities.
(iv) A summary of any:
(A) Hydrocarbon or sulphur occurrences encountered;
(B) Environmental hazards; and
(C) Adverse effects of the exploration
or scientific research activities on the
environment, aquatic life, archaeological resources, or other uses of the
area in which the activities were conducted.
(v) Other descriptions of the activities conducted as specified by the Regional Director.

(3) Stopping the activities is in the
interest of National security or defense.
(b) Procedures to temporarily stop activities. (1) The Regional Director will
advise you either orally or in writing.
BOEM will confirm an oral notification
in writing and deliver all written notifications by courier or certified or registered mail. You must halt all activities under a permit as soon as you receive an oral or written notification.
(2) The Regional Director will advise
you when you may start your permit
activities again.
(c) Procedure to cancel or relinquish a
permit. The Regional Director may cancel, or a permittee may relinquish, a
permit at any time.
(1) If BOEM cancels your permit, the
Regional Director will advise you by
certified or registered mail 30 days before the cancellation date and will
state the reason.
(2) You may relinquish the permit by
advising the Regional Director by certified or registered mail 30 days in advance.
(3) After BOEM cancels your permit
or you relinquish it, you are still responsible for proper abandonment of
any drill sites in accordance with the
requirements of 30 CFR 251.7(b)(8). You
must also comply with all other obligations specified in this part or in the
permit.

§ 551.9 Temporarily
stopping,
canceling, or relinquishing activities
approved under a permit.

§ 551.10 Penalties and appeals.
(a) Penalties for noncompliance under a
permit issued by BOEM. You are subject
to the penalty provisions of:
(1) Section 24 of the Act (43 U.S.C.
1350); and
(2) The procedures contained in 30
CFR part 550, subpart N, for noncompliance with:
(i) Any provision of the Act;
(ii) Any provision of a G&G or drilling permit; or
(iii) Any regulation or order issued
under the Act.
(b) Penalties under other laws and regulations. The penalties prescribed in
this section are in addition to any
other penalty imposed by any other
law or regulation.
(c) Procedures to appeal orders or decisions BOEM issues. See 30 CFR part 590
for instructions on how to appeal any

(a) BOEM may temporarily stop exploration or scientific research activities under a permit when the Regional
Director determines that:
(1) Activities pose a threat of serious,
irreparable, or immediate harm. This
includes damage to life (including fish
and other aquatic life), property, any
mineral deposit (in areas leased or not
leased), to the marine, coastal, or
human environment, or to an archaeological resource;
(2) You failed to comply with any applicable law, regulation, order, or provision of the permit. This would include BOEM’s required submission of
reports, well records or logs, and G&G
data and information within the time
specified; or

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30 CFR Ch. V (7–1–17 Edition)

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order or decision that we issue under
this part.
§ 551.11 Submission, inspection, and
selection of geological data and information collected under a permit
and processed by permittees or
third parties.
(a) Availability of geological data and
information collected under a permit. (1)
You must notify the Regional Director,
in writing, when you complete the initial analysis, processing, or interpretation of any geological data and information. Initial analysis and processing
are the stages of analysis or processing
where the data and information first
become available for in-house interpretation by the permittee, or become
available commercially to third parties
via sale, trade, license agreement, or
other means.
(2) The Regional Director may ask if
you have further analyzed, processed,
or interpreted any geological data and
information. When so asked, you must
respond to BOEM in writing within 30
days.
(b) Submission, inspection, and selection of geological data and information.
The Regional Director may request the
permittee or third party to submit the
analyzed, processed, and interpreted
geologic data and information for inspection and/or permanent retention by
BOEM. The data and information must
be submitted within 30 days after such
request.
(c) Requirements for submission of geological data and information collected
under a permit. Unless the Regional Director specifies otherwise, geological
data and information must include:
(1) An accurate and complete record
of all geological (including geochemical) data and information describing each operation of analysis,
processing, and interpretation;
(2) Paleontological reports identifying microscopic fossils by depth, including the reference datum to which
paleontological sample depths are related and, if the Regional Director requests, washed samples that you maintain for paleontological determinations;
(3) Copies of well logs or charts in a
digital format, if available;
(4) Results and data obtained from
formation fluid tests;

(5) Analyses of core or bottom samples and/or a representative cut or split
of the core or bottom sample;
(6) Detailed descriptions of any hydrocarbons or hazardous conditions encountered during operations, including
near losses of well control, abnormal
geopressures, and losses of circulation;
and
(7) Other geological data and information that the Regional Director may
specify.
(d) Obligations when geological data
and information collected under permit
are obtained by a third party. A third
party may obtain geological data and
information from a permittee, or from
another third party, by sale, trade, license agreement, or other means. If
this happens:
(1) The third party recipient of the
data and information assumes the obligations under this section, except for
the notification provisions of paragraph (a)(1), and is subject to the penalty provisions of 30 CFR part 550, subpart N; and
(2) A permittee or third party that
sells, trades, licenses, or otherwise provides data and information to a third
party must advise the recipient, in
writing, that accepting these obligations is a condition precedent of the
sale, trade, license, or other agreement; and
(3) Except for license agreements, a
permittee or third party that sells,
trades, or otherwise provides data and
information to a third party must advise the Regional Director, in writing
and within 30 days, of the sale, trade,
or other agreement, including the identity of the recipient of the data and information; or
(4) For license agreements a permittee or third party that licenses data
and information to a third party must,
within 30 days of a request by the Regional Director, advise the Regional
Director, in writing, of the license
agreement, including the identity of
the recipient of the data and information.

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§ 551.12

§ 551.12 Submission, inspection, and
selection of geophysical data and
information collected under a permit and processed by permittees or
third parties.
(a) Availability of geophysical data and
information collected under a permit. (1)
You must notify the Regional Director,
in writing, when you complete the initial processing and interpretation of
any geophysical data and information.
Initial processing is the stage of processing where the data and information
become available for in-house interpretation by the permittee, or become
available commercially to third parties
via sale, trade, license agreement, or
other means.
(2) The Regional Director may ask if
you have further processed or interpreted any geophysical data and information. When so asked, you must respond to BOEM in writing within 30
days.
(b) Submission, inspection and selection
of geophysical data and information collected under a permit. The Regional Director may request that the permittee
or third party submit geophysical data
and information before making a final
selection for retention. BOEM representatives may inspect and select the
data and information on your premises,
or the Regional Director can request
delivery of the data and information to
the appropriate BOEM regional office
for review.
(1) You must submit the geophysical
data and information within 30 days of
receiving the request, unless the Regional Director extends the delivery
time.
(2) At any time before final selection,
the Regional Director may return any
or all geophysical data and information
following review. You will be notified
in writing of all or portions of those
data the Regional Director decides to
retain.
(c) Requirements for submission of geophysical data and information collected
under a permit. Unless the Regional Director specifies otherwise, you must include:
(1) An accurate and complete record
of each geophysical survey conducted
under the permit, including digital
navigational data and final location
maps;

(2) All seismic data collected under a
permit presented in a format and of a
quality suitable for processing;
(3) Processed geophysical information derived from seismic data with extraneous signals and interference removed, presented in a quality format
suitable for interpretive evaluation, reflecting
state-of-the-art
processing
techniques; and
(4) Other geophysical data, processed
geophysical information, and interpreted geophysical information including, but not limited to, shallow and
deep subbottom profiles, bathymetry,
sidescan sonar, gravity and magnetic
surveys, and special studies such as refraction and velocity surveys.
(d) Obligations when geophysical data
and information collected under a permit
are obtained by a third party. A third
party may obtain geophysical data,
processed geophysical information, or
interpreted geophysical information
from a permittee, or from another
third party, by sale, trade, license
agreement, or other means. If this happens:
(1) The third party recipient of the
data and information assumes the obligations under this section, except for
the notification provisions of paragraph (a)(1), and is subject to the penalty provisions of 30 CFR part 550, subpart N; and
(2) A permittee or third party that
sells, trades, licenses, or otherwise provides data and information to a third
party must advise the recipient, in
writing, that accepting these obligations is a condition precedent of the
sale, trade, license, or other agreement; and
(3) Except for license agreements, a
permittee or third party that sells,
trades, or otherwise provides data and
information to a third party must advise the Regional Director, in writing
and within 30 days, of the sale, trade,
or other agreement, including the identity of the recipient of the data and information; or
(4) For license agreements, a permittee or third party that licenses data
and information to a third party must,
within 30 days of a request by the Regional Director, advise the Regional
Director, in writing, of the license
agreement, including the identity of

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§ 551.13

30 CFR Ch. V (7–1–17 Edition)

the recipient of the data and information.
§ 551.13 Reimbursement for the costs
of reproducing data and information and certain processing costs.
(a) BOEM will reimburse you or a
third party for reasonable costs of reproducing data and information that
the Regional Director requests if:
(1) You deliver G&G data and information to BOEM for the Regional Director to inspect or select and retain
(according to § 551.11 or § 551.12);
(2) BOEM receives your request for
reimbursement and the Regional Director determines that the requested reimbursement is proper; and
(3) The cost is at your lowest rate (or
a third party’s) or at the lowest commercial rate established in the area,
whichever is less.
(b) BOEM will reimburse you or the
third party for the reasonable costs of
processing geophysical information
(which does not include cost of data acquisition):
(1) If, at the request of the Regional
Director, you processed the geophysical data or information in a form
or manner other than that used in the
normal conduct of business; or
(2) If you collected the information
under a permit that BOEM issued to
you before October 1, 1985, and the Regional Director requests and retains
the information.
(c) When you request reimbursement,
you must identify reproduction and
processing costs separately from acquisition costs.
(d) BOEM will not reimburse you or a
third party for data acquisition costs
or for the costs of analyzing or processing geological information or interpreting geological or geophysical information.

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§ 551.14 Protecting and disclosing data
and
information
submitted
to
BOEM under a permit.
(a) Disclosure of data and information
to the public by BOEM. (1) In making

data and information available to the
public, the Regional Director will follow the applicable requirements of:
(i) The Freedom of Information Act
(5 U.S.C. 552);
(ii) The implementing regulations at
43 CFR part 2;
(iii) The Act; and
(iv) The regulations at 30 CFR parts
550 and 552.
(2) Except as specified in this section
or in 30 CFR parts 550 and 552, if the
Regional Director determines any data
or information is exempt from public
disclosure under this paragraph (a),
BOEM will not provide the data and information to any State or to the executive of any local government or to the
public, unless you and all third parties
agree to the disclosure.
(3) BOEM will keep confidential the
identity of third party recipients of
data and information collected under a
permit. BOEM will not release the
identity unless you and the third parties agree to the disclosure.
(4) When you detect any significant
hydrocarbon occurrences or environmental hazards on unleased lands during drilling operations, the Regional
Director will immediately issue a public announcement. The announcement
must further the National interest, but
without unduly damaging your competitive position.
(b) Timetable for release of G&G data
and information related to oil, gas, and
sulphur that BOEM acquires. Except for
high-resolution data and information
released under 30 CFR 550.197(b)(2),
BOEM will release or disclose acquired
data and information in accordance
with paragraphs (b)(1) through (7) of
this section.
(1) If the data and information are
not related to a deep stratigraphic test,
BOEM will release them to the public
in accordance with the following table:

If you or a third party submit and BOEM retains . . .

The Regional Director will release them to the public . . .

(i) Geological data and information,
(ii) Geophysical data,
(iii) Geophysical information processed or reprocessed less
than 20 years after BOEM issued the germane permit,

10 years after BOEM issued the permit.
50 years after BOEM issued the permit.
25 years after BOEM issued the permit.

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§ 551.14

If you or a third party submit and BOEM retains . . .

The Regional Director will release them to the public . . .

(iv) Geophysical information processed or reprocessed 20 or
more years after BOEM issued the germane permit,

25 years after BOEM issued the permit; or, if you or a third
party applied for an extension of the proprietary term, 5
years after BOEM approved the application for an extension.
In any case BOEM will release the information no later than
50 years after BOEM issued the permit.

(2) Permittees and third parties may
apply to BOEM for an extension of the
25-year proprietary term for geophysical information reprocessed 20 or
more years after BOEM issued the germane permit. You must submit the application to BOEM within 90 days after
completion of the reprocessing, except
during the initial 1-year grace period
as provided in paragraph (b)(5) below.
Filing locations are listed in § 551.5(d).
Your application must include:
(i) Name and address of the permittee
or third party;
(ii) Product name;
(iii) Identification of the geophysical
information area;
(iv) Identification of originating permit number and date;
(v) Description of reprocessing performed;
(vi) Identification of the date of completion of reprocessing the geophysical
information;
(vii) Certification that the product
meets the definition of processed geophysical information and that all other
information in the application is accurate; and
(viii) Signature and date.
(3) With each new reprocessing of permitted data, you may apply for an extension of up to 5 years. However, the
maximum proprietary term for geophysical information is 50 years after
the permit was issued. Once the maximum term is reached, the BOEM Regional Director will release the information to the public.
(4) Geophysical information processed or reprocessed 20 or more years
after the germane permit was issued
and granted the extension will be subject to submission, inspection, and selection criteria under § 551.12 and reimbursement criteria identified under
§ 551.13.
(5) There was a 1-year grace period,
that started September 14, 2009, that
allowed permittees and third parties
sufficient time to meet the above re-

quirements and apply for all eligible
extensions. During that time, BOEM
did not release geophysical information which was reprocessed 20 or more
years after the date that the germane
permit was issued.
(6) Since September 14, 2010, BOEM
has resumed releasing eligible reprocessed information. If an application for
extension was not filed, not filed on
time, or not approved by BOEM, the
original 25-year proprietary term applies to the release date of the reprocessed geophysical information.
(7) If the data and information are related to a deep stratigraphic test,
BOEM will release them to the public
at the earlier of the following times:
(i) Twenty-five years after you complete the test; or
(ii) If a lease sale is held after you
complete a test well, 60-calendar days
after BOEM issues the first lease, any
portion of which is located within 50
geographic miles (92.7 kilometers) of
the test.
(8) BOEM may allow limited inspection, but only by persons with a direct
interest in related BOEM decisions and
issues in specific geographic areas, and
who agree in writing to its confidentiality, of G&G data and information
submitted under this part that BOEM
uses to:
(i) Make unitization determinations
on two or more leases;
(ii) Make competitive reservoir determinations;
(iii) Ensure proper plans of development for competitive reservoirs;
(iv) Promote operational safety;
(v) Protect the environment;
(vi) Make field determinations; or
(vii) Determine eligibility for royalty
relief.
(c) Procedure that BOEM follows to disclose acquired data and information to a
contractor for reproduction, processing,
and interpretation. (1) When practical,
the Regional Director will advise the

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§ 551.15

30 CFR Ch. V (7–1–17 Edition)

person who submitted data and information under § 551.11 or § 551.12 of the
intent to disclose the data or information to an independent contractor or
agent.
(2) The person so notified will have at
least 5 working days to comment on
the action.
(3) When the Regional Director advises the person who submitted the
data and information, all other owners
of the data or information will be considered to have been so notified.
(4) Before disclosure, the contractor
or agent must sign a written commitment not to sell, trade, license, or disclose data or information to anyone
without the Regional Director’s consent.
(d) Sharing data and information with
coastal States. (1) When BOEM solicits
nominations for leasing lands located
within 3 geographic miles (5.6 kilometers) of the seaward boundary of any
coastal State, the Regional Director, in
accordance with 30 CFR 552.7(a)(4) and
(b) and subsections 8(g) and 26(e) of the
Act (43 U.S.C. 1337(g) and 1352(e)), will
provide the Governor with:
(i) All information on the geographical, geological, and ecological
characteristics of the areas and regions
BOEM proposes to offer for lease;
(ii) An estimate of the oil and gas reserves in the areas proposed for leasing; and
(iii) An identification of any field, geological structure, or trap on the OCS
within 3 geographic miles (5.6 kilometers) of the seaward boundary of the
State.
(2) After receiving nominations for
leasing an area of the OCS within 3 geographic miles of the seaward boundary of any coastal State, BOEM will
carry out a tentative area identification according to 30 CFR part 556, subparts D and E. At that time, the Regional Director will consult with the
Governor to determine whether any
tracts further considered for leasing
may contain any oil or gas reservoirs
that underlie both the OCS and lands
subject to the jurisdiction of the State.
(3) Before a sale, if a Governor requests, the Regional Director, in accordance with 30 CFR 552.7(a)(4) and (b)
and sections 8(g) and 26(e) of the Act
(43 U.S.C. 1337(g) and 1352(e)), will share

with the Governor information that
identifies potential and/or proven common hydrocarbon bearing areas within
3 geographic miles of the seaward
boundary of that State.
(4) Information received and knowledge gained by a State official under
paragraph (d) of this section is subject
to applicable confidentiality requirements of:
(i) The Act; and
(ii) The regulations at 30 CFR parts
550, 551, and 552.
§ 551.15 Authority for information collection.
(a) The Office of Management and
Budget has approved the information
collection requirements in this part
under 44 U.S.C. 3501 et seq. and assigned
OMB control number 1010–0048. The
title of this information collection is
‘‘30 CFR part 551, Geological and Geophysical (G&G) Explorations of the
OCS.’’
(b) We 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.
(c) We use the information collected
under this part to:
(1) Evaluate permit applications and
monitor scientific research activities
for environmental and safety reasons.
(2) Determine that explorations do
not harm resources, result in pollution,
create hazardous or unsafe conditions,
or interfere with other users in the
area.
(3) Approve reimbursement of certain
expenses.
(4) Monitor the progress and activities carried out under an OCS G&G permit.
(5) Inspect and select G&G data and
information collected under an OCS
G&G permit.
(d) Respondents are Federal OCS permittees and Notice filers. Responses
are mandatory or are required to obtain or retain a benefit. We will protect
information considered proprietary
under applicable law and under regulations at § 551.14 and part 550 of this
chapter.
(e) Send comments regarding any aspect of the collection of information
under this part, including suggestions

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Ocean Energy Management, Interior

§ 552.2

for reducing the burden, to the Information Collection Clearance Officer,
Bureau of Ocean Energy Management,
45600 Woodland Road, Sterling, VA
20166.
[76 FR 64623, Oct. 18, 2011, as amended at 80
FR 57097, Sept. 22, 2015]

PART 552—OUTER CONTINENTAL
SHELF (OCS) OIL AND GAS INFORMATION PROGRAM
Sec.
552.1 Purpose.
552.2 Definitions.
552.3 Oil and gas data and information to be
provided for use in the OCS Oil and Gas
Information Program.
552.4 Summary Report to affected States.
552.5 Information to be made available to
affected States.
552.6 Freedom of Information Act requirements.
552.7 Privileged and proprietary data and
information to be made available to affected States.
AUTHORITY: OCS Lands Act, 43 U.S.C. 1331
et seq., as amended, 92 Stat. 629; Freedom of
Information Act, 5 U.S.C. 552; § 252.3 also
issued under Pub. L. 99–190 making continuing appropriations for Fiscal Year 1986,
and for other purposes.
SOURCE: 76 FR 64623, Oct. 18, 2011, unless
otherwise noted.

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§ 552.1

Purpose.

The purpose of this part is to implement the provisions of section 26 of the
Act (43 U.S.C. 1352). This part supplements the procedures and requirements
contained in 30 CFR parts 250, 251, 550,
and 551 and provides procedures and requirements for the submission of oil
and gas data and information resulting
from exploration, development, and
production operations on the Outer
Continental Shelf (OCS) to the Director, Bureau of Ocean Energy Management. In addition, this part establishes
procedures for the Director to make
available certain information to the
Governors of affected States and, upon
request, to the executives of affected
local governments in accordance with
the provisions of the Freedom of Information Act and the Act.

§ 552.2 Definitions.
When used in the regulations in this
part, the following terms shall have
the meanings given below:
Act refers to the Outer Continental
Shelf Lands Act, as amended (43 U.S.C.
1331 et seq.).
Affected local government means the
principal governing body of a locality
which is in an affected State and is
identified by the Governor of that
State as a locality which will be significantly affected by oil and gas activities on the OCS.
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 declared,
pursuant to section 4(a)(2)(A) of the
Act, 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 installations and other devices permanently, or temporarily attached to the
seabed;
(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 Director 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
(5) In which the Director finds that
because of such activity there is, or
will be, a significant risk of serious
damage, due to factors such as prevailing winds and currents, to the marine or coastal environment in the
event of any oilspill, blowout, or release of oil or gas from vessels, pipelines, or other transshipment facilities.

429

VerDate Sep<11>2014

12:15 Sep 08, 2017

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