30 Cfr 582

jstallworth on DSK7TPTVN1PROD with CFR

Pt. 582

30 CFR Ch. V (7–1–16 Edition)

defense, or to the marine, coastal, or
human environment;
(ii) The threat of harm or damage
will not disappear or decrease to an acceptable extent within a reasonable period of time; and
(iii) The advantages of cancellation
outweigh the advantages of continuing
such lease in force;
(2) Cancellation shall not occur unless and until operations under such
lease shall have been under suspension
or temporary prohibition by the Secretary, with due extension of any lease
term continuously for a period of 5
years, or for a lesser period upon request of the lessee; and
(3) Cancellation shall entitle the lessee to receive such compensation as is
shown to the Secretary as being equal
to the lesser of:
(i) The fair value of the canceled
rights as of the date of cancellation,
taking into account both anticipated
revenues from the lease and anticipated costs, including costs of compliance with all applicable regulations
and operating orders, liability for
cleanup costs or damages, or both, and
all other costs reasonably anticipated
on the lease, or
(ii) The excess, if any, over the lessee’s revenues from the lease (plus interest thereon from the date of receipt
to date of reimbursement) of all consideration paid for the lease and all direct expenditures made by the lessee
after the date of issuance of such lease
and in connection with exploration or
development, or both, pursuant to the
lease (plus interest on such consideration and such expenditures from date
of payment to date of reimbursement),
except that in the case of joint leases
which are canceled due to the failure of
one or more partners to exercise due
diligence, the innocent parties shall
have the right to seek damages for
such loss from the responsible party or
parties and the right to acquire the interests of the negligent party or parties and be issued the lease in question.
(iii) The lessee shall not be entitled
to compensation where one of the following circumstances exists when a
lease is canceled:
(A) A producing lease is forfeited or
is canceled pursuant to section (5)(d) of
the Act;

(B) A Testing Plan or Mining Plan is
disapproved because of the lessee’s failure to demonstrate compliance with
the requirements of applicable Federal
Law; or
(C) The lessee(s) of a nonproducing
lease fails to comply with a provision
of the Act, the lease, or regulations
issued under the Act, and the noncompliance continues for a period of 30
days or more after the mailing of a notice of noncompliance by registered or
certified letter to the lessee(s).

PART 582—OPERATIONS IN THE
OUTER CONTINENTAL SHELF FOR
MINERALS OTHER THAN OIL,
GAS, AND SULPHUR
Subpart A—General
Sec.
582.0 Authority for information collection.
582.1 Purpose and authority.
582.2 Scope.
582.3 Definitions.
582.4 Opportunities for review and comment.
582.5 Disclosure of data and information to
the public.
582.6 Disclosure of data and information to
an adjacent State.
582.7 Jurisdictional controversies.

Subpart B—Jurisdiction and Responsibilities
of Director
582.10 Jurisdiction and responsibilities of
Director.
582.11 Director’s authority.
582.12 Director’s responsibilities.
582.13 [Reserved]
582.14 Noncompliance, remedies, and penalties.
582.15 Cancellation of leases.

Subpart C—Obligations and
Responsibilities of Lessees
582.20 Obligations and responsibilities of
lessees.
582.21 Plans, general.
582.22 Delineation Plan.
582.23 Testing Plan.
582.24 Mining Plan.
582.25 Plan modification.
582.26 Contingency Plan.
582.27 Conduct of operations.
582.28 Environmental protection measures.
582.29 Reports and records.
582.30 Right of use and easement.
582.31 [Reserved]

524

VerDate Sep<11>2014

14:55 Oct 12, 2016

Jkt 238126

PO 00000

Frm 00534

Fmt 8010

Sfmt 8010

Y:\SGML\238126.XXX

238126

Ocean Energy Management, Interior

§ 582.3

Subpart D—Payments
582.40
582.41
582.42

this part shall be administered by the
Director of BOEM.

Bonds.
Method of royalty calculation.
Payments.

§ 582.2

Subpart E—Appeals
582.50

Appeals.

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.

Subpart A—General
§ 582.0 Authority for information collection.
The information collection requirements in this part have been approved
by the Office of Management and Budget under 44 U.S.C. 3507 and assigned
clearance number 1010–0081. The information is being collected to inform the
Bureau of Ocean Energy Management
(BOEM) of general mining operations
in the Outer Continental Shelf (OCS).
The information will be used to ensure
that operations are conducted in a safe
and environmentally responsible manner in compliance with governing laws
and regulations. The requirement to
respond is mandatory.

jstallworth on DSK7TPTVN1PROD with CFR

§ 582.1

Purpose and authority.

(a) The Act authorizes the Secretary
to prescribe such rules and regulations
as may be necessary to carry out the
provisions of the Act (43 U.S.C. 1334).
The Secretary is authorized to prescribe and amend regulations that the
Secretary determines to be necessary
and proper in order to provide for the
prevention of waste, conservation of
the natural resources of the OCS, and
the protection of correlative rights
therein. In the enforcement of safety,
environmental, and conservation laws
and regulations, the Secretary is authorized to cooperate with adjacent
States and other Departments and
Agencies of the Federal Government.
(b) Subject to the supervisory authority of the Secretary, and unless
otherwise specified, the regulations in

Scope.

The rules and regulations in this part
apply as of their effective date to all
operations conducted under a mineral
lease for OCS minerals other than oil,
gas, or sulphur issued under the provisions of section 8(k) of the Act.
§ 582.3

Definitions.

When used in this part, the following
terms shall have the meaning given
below:
Act means the OCS Lands Act, as
amended (43 U.S.C. 1331 et seq.).
Adjacent State means with respect to
any activity proposed, conducted, or
approved under this part, any coastal
State:
(1) That is, or is proposed to be, receiving for processing, refining, or
transshipment OCS mineral resources
commercially recovered from the seabed;
(2) That is used, or is scheduled to be
used, as a support base for prospecting,
exploration, testing, or mining activities; or
(3) In which there is a reasonable
probability of significant effect on land
or water uses from such activity.
Contingency Plan means a plan for action to be taken in emergency situations.
Data means geological and geophysical (G&G) facts and statistics or
samples which have not been analyzed,
processed, or interpreted.
Development means those activities
which take place following the discovery of minerals in paying quantities
including geophysical activities, drilling, construction of offshore facilities,
and operation of all onshore support facilities, which are for the purpose of ultimately producing the minerals discovered.
Director means the Director of BOEM
of the U.S. Department of the Interior
or an official authorized to act on the
Director’s behalf.
Exploration means the process of
searching for minerals on a lease including:

525

VerDate Sep<11>2014

14:55 Oct 12, 2016

Jkt 238126

PO 00000

Frm 00535

Fmt 8010

Sfmt 8010

Y:\SGML\238126.XXX

238126

jstallworth on DSK7TPTVN1PROD with CFR

§ 582.3

30 CFR Ch. V (7–1–16 Edition)

(1) Geophysical surveys where magnetic, gravity, seismic, or other systems are used to detect or imply the
presence of minerals;
(2) Any drilling including the drilling
of a borehole in which the discovery of
a mineral other than oil, gas, or sulphur is made and the drilling of any additional boreholes needed to delineate
any mineral deposits; and
(3) The taking of sample portions of a
mineral deposit to enable the lessee to
determine whether to proceed with development and production.
Geological sample means a collected
portion of the seabed, the subseabed, or
the overlying waters (when obtained
for geochemical analysis) acquired
while conducting postlease mining activities.
Governor means the Governor of a
State or the person or entity designated by, or pursuant to, State law
to exercise the power granted to a Governor.
Information means G&G data that
have been analyzed, processed, or interpreted.
Lease means one of the following,
whichever is required by the context:
Any form of authorization which is
issued under section 8 or maintained
under section 6 of the Acts and which
authorizes exploration for, and development and production of, specific
minerals; or the area covered by that
authorization.
Lessee means the person authorized
by a lease, or an approved assignment
thereof, to explore for and develop and
produce the leased deposits in accordance with the regulations in this chapter. The term includes all parties holding that authority by or through the
lessee.
Major Federal action means any action or proposal by the Secretary
which is subject to the provisions of
section 102(2)(C) of the National Environmental Policy Act (NEPA) (i.e., an
action which will have a significant
impact on the quality of the human environment requiring preparation of an
Environmental
Impact
Statement
(EIS) pursuant to section 102(2)(C) of
NEPA).
Marine environment means the physical, atmospheric, and biological components, conditions, and factors which

interactively determine the productivity, state, condition, 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.
Minerals include 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.
OCS mineral means any mineral deposit or accretion found on or below
the surface of the seabed but does not
include oil, gas, or sulphur; salt or sand
and gravel intended for use in association with the development of oil, gas,
or sulphur; or source materials essential to production of fissionable materials which are reserved to the United
States pursuant to section 12(e) of the
Act.
Operator means the individual, partnership, firm, or corporation having
control or management of operations
on the lease or a portion thereof. The
operator may be a lessee, designated
agent of the lessee, or holder of rights
under an approved operating agreement.
Outer Continental Shelf means all submerged lands lying seaward and outside of the area of lands beneath navigable waters as defined in section 2 of
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.
Person means a citizen or national of
the United States; an alien lawfully admitted for permanent residency in the
United States as defined in 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; an association 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.

526

VerDate Sep<11>2014

14:55 Oct 12, 2016

Jkt 238126

PO 00000

Frm 00536

Fmt 8010

Sfmt 8010

Y:\SGML\238126.XXX

238126

Ocean Energy Management, Interior

§ 582.4

jstallworth on DSK7TPTVN1PROD with CFR

Secretary means the Secretary of the
Interior or an official authorized to act
on the Secretary’s behalf.
Testing means removing bulk samples
for processing tests and feasibility
studies and/or the testing of mining
equipment to obtain information needed to develop a detailed Mining Plan.
§ 582.4 Opportunities for review and
comment.
(a) In carrying out BOEM’s responsibilities under the Act and regulations
in this part, the Director shall provide
opportunities for Governors of adjacent
States, State/Federal task forces, lessees and operators, other Federal Agencies, and other interested parties to review proposed activities described in a
Delineation, Testing, or Mining Plan
together with an analysis of potential
impacts on the environment and to
provide comments and recommendations for the disposition of the proposed plan.
(b)(1) For Delineation Plans, the adjacent State Governor(s) shall be notified by the Director within 15 days following the submission of a request for
approval of a Delineation Plan. Notification shall include a copy of the proposed Delineation Plan and the accompanying environmental information.
The adjacent State Governor(s) who
wishes to comment on a proposed Delineation Plan may do so within 30
days of the receipt of the proposed plan
and the accompanying information.
(2) In cases where an Environmental
Assessment is to be prepared, the Director’s invitation to provide comments may allow the adjacent State
Governor(s) more than 30 days following receipt of the proposed plan to
provide comments.
(3) The Director shall notify Federal
Agencies, as appropriate, with a copy
of the proposed Delineation Plan and
the accompanying environmental information within 15 days following the
submission of the request. Agencies
that wish to comment on a proposed
Delineation Plan shall do so within 30
days following receipt of the plan and
the accompanying information.
(c)(1) For Testing Plans, the adjacent
State Governor(s) shall be notified by
the Director within 20 days following
submission of a request for approval of

a proposed Testing Plan. Notification
shall include a copy of the proposed
Testing Plan and the accompanying environmental information. The adjacent
State Governor(s) who wishes to comment on a proposed Testing Plan may
do so within 60 days of the receipt of a
plan and the accompanying information.
(2) In cases where an EIS is to be prepared, the Director’s invitation to provide comments may allow the adjacent
State Governor(s) more than 60 days
following receipt of the proposed plan
to provide comments.
(3) The Director shall notify Federal
Agencies, as appropriate, with a copy
of the proposed Testing Plan and the
accompanying environmental information within 20 days following the submission of the request. Agencies that
wish to comment on a proposed Testing
Plan shall do so within 60 days following receipt of the plan and the accompanying information.
(d)(1) For Mining Plans, the adjacent
State Governor(s) shall be notified by
the Director within 20 days following
the submission of a request for approval of a proposed Mining Plan. Notification shall include a copy of the proposed Mining Plan and the accompanying environmental information.
The adjacent State Governor(s) who
wishes to comment on a proposed Mining Plan may do so within 60 days of
the receipt of a plan and the accompanying information.
(2) In cases where an EIS is to be prepared, the Director’s invitation to provide comments may allow the adjacent
State Governor(s) more than 60 days
following receipt of the proposed plan
to provide comments.
(3) The Director shall notify Federal
Agencies, as appropriate, with a copy
of the proposed Mining Plan and the
accompanying environmental information within 20 days following the submission of the request. Agencies that
wish to comment on a proposed Mining
Plan shall do so within 60 days following receipt of the plan and the accompanying information.
(e) When an adjacent State Governor(s) has provided comments pursuant to paragraphs (b), (c), and (d) of
this section, the Governor(s) shall be

527

VerDate Sep<11>2014

14:55 Oct 12, 2016

Jkt 238126

PO 00000

Frm 00537

Fmt 8010

Sfmt 8010

Y:\SGML\238126.XXX

238126

§ 582.5

30 CFR Ch. V (7–1–16 Edition)

given, in writing, a list of recommendations which are adopted and the reasons for rejecting any of the recommendations of the Governor(s) or for
implementing any alternative means
identified during consultations with
the Governor(s).

jstallworth on DSK7TPTVN1PROD with CFR

§ 582.5 Disclosure of data and information to the public.
(a) The Director shall make data, information, and samples available in accordance with the requirements and
subject to the limitations of the Act,
the Freedom of Information Act (5
U.S.C. 552), and the implementing regulations (43 CFR part 2).
(b) Geophysical data, processed G&G
information, interpreted G&G information, and other data and information
submitted pursuant to the requirements of this part shall not be available for public inspection without the
consent of the lessee so long as the
lease remains in effect, unless the Director determines that earlier limited
release of such information is necessary for the unitization of operations
on two or more leases, to ensure proper
Mining Plans for a common orebody, or
to promote operational safety. When
the Director determines that early limited release of data and information is
necessary, the data and information
shall be shown only to persons with a
direct interest in the affected lease(s),
unitization agreement, or joint Mining
Plan.
(c) Geophysical data, processed geophysical information, and interpreted
geophysical information collected on a
lease with high resolution systems (including, but not limited to, bathymetry, side-scan sonar, subbottom profiler, and magnetometer) in compliance
with stipulations or orders concerning
protection of environmental aspects of
the lease may be made available to the
public 60 days after submittal to the
Director, unless the lessee can demonstrate to the satisfaction of the Director that release of the information
or data would unduly damage the lessee’s competitive position.
§ 582.6 Disclosure of data and information to an adjacent State.
(a) Proprietary data, information,
and samples submitted to BOEM pursu-

ant to the requirements of this part
shall be made available for inspection
by representatives of adjacent State(s)
upon request by the Governor(s) in accordance with paragraphs (b), (c), and
(d) of this section.
(b) Disclosure shall occur only after
the Governor has entered into an
agreement with the Secretary providing that:
(1) The confidentiality of the information shall be maintained;
(2) In any action commenced against
the Federal Government or the State
for failure to protect the confidentiality of proprietary information, the
Federal Government or the State, as
the case may be, may not raise as a defense any claim of sovereign immunity
or any claim that the employee who revealed the proprietary information,
which is the basis of the suit, was acting outside the scope of the person’s
employment in revealing the information;
(3) The State agrees to hold the
United States harmless for any violation by the State or its employees or
contractors of the agreement to protect the confidentiality of proprietary
data, information, and samples; and
(c) The data, information, and samples available for inspection by representatives of adjacent State(s) pursuant to an agreement shall be related to
leased lands.
§ 582.7

Jurisdictional controversies.

In the event of a controversy between
the United States and a State as to
whether certain lands are subject to
Federal or State jurisdiction, either
the Governor of the State or the Secretary may initiate negotiations in an
attempt to settle the jurisdictional
controversy. With the concurrence of
the Attorney General, the Secretary
may enter into an agreement with a
State with respect to OCS mineral activities and to payment and impounding of rents, royalties, and other sums
and with respect to the issuance or
nonissuance of new leases pending settlement of the controversy.

528

VerDate Sep<11>2014

14:55 Oct 12, 2016

Jkt 238126

PO 00000

Frm 00538

Fmt 8010

Sfmt 8010

Y:\SGML\238126.XXX

238126

Ocean Energy Management, Interior

§ 582.11

Subpart B—Jurisdiction and
Responsibilities of Director

jstallworth on DSK7TPTVN1PROD with CFR

§ 582.10 Jurisdiction and responsibilities of Director.
Subject to the authority of the Secretary, the following activities are subject to the regulations in this part and
are under the jurisdiction of the Director: Exploration, testing, and mining
operations together with the associated environmental protection measures needed to permit those activities
to be conducted in an environmentally
responsible manner; handling, measurement, and transportation of OCS
minerals; and other operations and activities conducted pursuant to a lease
issued under 30 CFR part 581, or pursuant to a right of use and easement
granted under this part, by or on behalf
of a lessee or the holder of a right of
use and easement.
§ 582.11 Director’s authority.
(a) In the exercise of jurisdiction
under § 582.10, the Director is authorized and directed to act upon the requests, applications, and notices submitted under the regulations in this
part; to issue either written or oral orders to govern lease operations; and to
require compliance with applicable
laws, regulations, and lease terms so
that all operations conform to sound
conservation practices and are conducted in a manner which is consistent
with the following:
(1) Make such OCS minerals available
to meet the nation’s needs in a timely
manner;
(2) Balance OCS mineral resource development with protection of the
human, marine, and coastal environments;
(3) Ensure the public a fair and equitable return on OCS minerals leased on
the OCS; and
(4) Foster and encourage private enterprise.
(b)(1) The Director is to be provided
ready access to all OCS mineral resource data and all environmental data
acquired by the lessee or holder of a
right of use and easement in the course
of operations on a lease or right of use
and easement and may require a lessee
or holder to obtain additional environmental data when deemed necessary to

assure adequate protection of the
human, marine, and coastal environments.
(2) The Director is to be provided an
opportunity to inspect, cut, and remove representative portions of all
samples acquired by a lessee in the
course of operations on the lease.
(c) In addition to the rights and
privileges granted to a lessee under any
lease issued or maintained under the
Act, on request, the Director may
grant a lessee, subject to such conditions as the Director may prescribe, a
right of use and easement to construct
and maintain platforms, artificial islands, and/or other installations and
devices which are permanently or temporarily attached to the seabed and
which are needed for the conduct of
leasehold exploration, testing, development, production, and processing activities or other leasehold related operations whether on or off the lease.
(d)(1) The Director may approve the
consolidation of two or more OCS mineral leases or portions of two or more
OCS mineral leases into a single mining unit requested by lessees, or the Director may require such consolidation
when the operation of those leases or
portions of leases as a single mining
unit is in the interest of conservation
of the natural resources of the OCS or
the prevention of waste. A mining unit
may also include all or portions of one
or more OCS mineral leases with all or
portions of one or more adjacent State
leases for minerals in a common
orebody. A single unit operator shall be
responsible for submission of required
Delineation, Testing, and Mining Plans
covering OCS mineral operations for an
approved mining unit.
(2) Operations such as exploration,
testing, and mining activities conducted in accordance with an approved
plan on any lease or portion of a lease
which is subject to an approved mining
unit shall be considered operations on
each of the leases that is made subject
to the approved mining unit.
(3) Minimum royalty paid pursuant
to a Federal lease, which is subject to
an approved mining unit, is creditable
against the production royalties allocated to that Federal lease during the
lease year for which the minimum royalty is paid.

529

VerDate Sep<11>2014

14:55 Oct 12, 2016

Jkt 238126

PO 00000

Frm 00539

Fmt 8010

Sfmt 8010

Y:\SGML\238126.XXX

238126

§ 582.12

30 CFR Ch. V (7–1–16 Edition)

jstallworth on DSK7TPTVN1PROD with CFR

(4) Any OCS minerals produced from
State and Federal leases which are subject to an approved mining unit shall
be accounted for separately unless a
method of allocating production between State and Federal leases has
been approved by the Director and the
appropriate State official.
§ 582.12 Director’s responsibilities.
(a) The Director is responsible for the
regulation of activities to assure that
all operations conducted under a lease
or right of use and easement are conducted in a manner that protects the
environment and promotes orderly development of OCS mineral resources.
Those activities are to be designed to
prevent serious harm or damage to, or
waste of, any natural resource (including OCS mineral deposits and oil, gas,
and sulphur resources in areas leased
or not leased), any life (including fish
and other aquatic life), property, or the
marine, coastal, or human environment.
(b)(1) In the evaluation of a Delineation Plan, the Director shall consider
whether the plan is consistent with:
(i) The provisions of the lease;
(ii) The provisions of the Act;
(iii) The provisions of the regulations
prescribed under the Act;
(iv) Other applicable Federal law; and
(v) Requirements for the protection
of the environment, health, and safety.
(2) Within 30 days following the completion of an environmental assessment or other NEPA document prepared pursuant to the regulations implementing NEPA or within 30 days following the comment period provided in
§ 582.4(b) of this part, the Director
shall:
(i) Approve any Delineation Plan
which is consistent with the criteria in
paragraph (b)(1) of this section;
(ii) Require the lessee to modify any
Delineation Plan that is inconsistent
with the criteria in paragraph (b)(1) of
this section; or
(iii) Disapprove a Delineation Plan
when it is determined that an activity
proposed in the plan would probably
cause serious harm or damage to life
(including fish and other aquatic life);
to property; to natural resources of the
OCS including mineral deposits (in
areas leased or not leased); or to the

marine, coastal, or human environment, and the proposed activity cannot
be modified to avoid the conditions.
(3) The Director shall notify the lessee in writing of the reasons for disapproving a Delineation Plan or for requiring modification of a plan and the
conditions that must be met for plan
approval.
(c)(1) In the evaluation of a Testing
Plan, the Director shall consider
whether the plan is consistent with:
(i) The provisions of the lease;
(ii) The provisions of the Act;
(iii) The provisions of the regulations
prescribed under the Act;
(iv) Other applicable Federal law;
(v) Environmental, safety, and health
requirements; and
(vi) The statutory requirement to
protect property, natural resources of
the OCS, including mineral deposits (in
areas leased or not leased), and the National security or defense.
(2) Within 60 days following the release of a final EIS prepared pursuant
to NEPA or within 60 days following
the comment period provided in
§ 582.4(c) of this part, the Director
shall:
(i) Approve any Testing Plan which is
consistent with the criteria in paragraph (c)(1) of this section;
(ii) Require the lessee to modify any
Testing Plan which is inconsistent
with the criteria in paragraph (c)(1) of
this section; or
(iii) Disapprove any Testing Plan
when the Director determines the existence of exceptional geological conditions in the lease area, exceptional resource values in the marine or coastal
environment, or other exceptional circumstances and that (A) implementation of the activities described in the
plan would probably cause serious
harm and damage to life (including fish
and other aquatic life), to property, to
any mineral deposit (in areas leased or
not leased), to the National security or
defense, or to the marine, coastal, or
human environments; (B) that the
threat of harm or damage will not disappear or decrease to an acceptable extent within a reasonable period of
time; and (C) the advantages of disapproving the Testing Plan outweigh
the advantages of development and

530

VerDate Sep<11>2014

14:55 Oct 12, 2016

Jkt 238126

PO 00000

Frm 00540

Fmt 8010

Sfmt 8010

Y:\SGML\238126.XXX

238126

jstallworth on DSK7TPTVN1PROD with CFR

Ocean Energy Management, Interior

§ 582.14

production of the OCS mineral resources.
(3) The Director shall notify the lessee in writing of the reason(s) for disapproving a Testing Plan or for requiring modification of a Testing Plan and
the conditions that must be met for approval of the plan.
(d)(1) In the evaluation of a Mining
Plan, the Director shall consider
whether the plan is consistent with:
(i) The provisions of the lease;
(ii) The provisions of the Act;
(iii) The provisions of the regulations
prescribed under the Act;
(iv) Other applicable Federal law;
(v) Environmental, safety, and health
requirements; and
(vi) The statutory requirements to
protect property, natural resources of
the OCS, including mineral deposits (in
areas leased or not leased), and the National security or defense.
(2) Within 60 days following the release of a final EIS prepared pursuant
to NEPA or within 60 days following
the comment period provided in
§ 582.4(d) of this part, the Director
shall:
(i) Approve any Mining Plan which is
consistent with the criteria in paragraph (d)(1) of this section;
(ii) Require the lessee to modify any
Mining Plan which is inconsistent with
the criteria in paragraph (d)(1) of this
section; or
(iii) Disapprove any Mining Plan
when the Director determines the existence of exceptional geological conditions in the lease area, exceptional resource values in the marine or coastal
environment, or other exceptional circumstances, and that:
(A) Implementation of the activities
described in the plan would probably
cause serious harm and damage to life
(including fish and other aquatic life),
to property, to any mineral deposit (in
areas leased or not leased), to the National security or defense, or to the
marine, coastal, or human environments;
(B) That the threat of harm or damage will not disappear or decrease to an
acceptable extent within a reasonable
period of time; and
(C) The advantages of disapproving
the Mining Plan outweigh the advan-

tages of development and production of
the OCS mineral resources.
(3) The Director shall notify the lessee in writing of the reason(s) for disapproving a Mining Plan or for requiring modification of a Mining Plan and
the conditions that must be met for approval of the plan.
(e)–(f) [Reserved]
(g) The Director shall establish practices and procedures to govern the collection of all rents, royalties, and other
payments due the Federal Government
in accordance with terms of the leasing
notice, the lease, and the applicable
Royalty Management regulations listed in § 581.26(i) of this chapter.
(h) [Reserved]
§ 582.13

[Reserved]

§ 582.14 Noncompliance, remedies, and
penalties.
(a)(1) If the Director determines that
a lessee has failed to comply with applicable provisions of law; the regulations in this part; other applicable regulations; the lease; the approved Delineation, Testing, or Mining Plan; or the
Director’s orders or instructions, and
the Director determines that such noncompliance poses a threat of immediate, serious, or irreparable damage to
the environment, the mine or the deposit being mined, or other valuable
mineral deposits or other resources,
the Director shall order the lessee to
take immediate and appropriate remedial action to alleviate the threat. Any
oral orders shall be followed up by
service of a notice of noncompliance
upon the lessee by delivery in person to
the lessee or agent, or by certified or
registered mail addressed to the lessee
at the last known address.
(2) If the Director determines that
the lessee has failed to comply with applicable provisions of law; the regulations in this part; other applicable regulations; the lease; the requirements of
an approved Delineation, Testing, or
Mining Plan; or the Director’s orders
or instructions, and such noncompliance does not pose a threat of immediate, serious, or irreparable damage to
the environment, the mine or the deposit being mined, or other valuable
mineral deposits or other resources,
the Director shall serve a notice of

531

VerDate Sep<11>2014

14:55 Oct 12, 2016

Jkt 238126

PO 00000

Frm 00541

Fmt 8010

Sfmt 8010

Y:\SGML\238126.XXX

238126

§ 582.15

30 CFR Ch. V (7–1–16 Edition)

jstallworth on DSK7TPTVN1PROD with CFR

noncompliance upon the lessee by delivery in person to the lessee or agent
or by certified or registered mail addressed to the lessee at the last known
address.
(b) A notice of noncompliance shall
specify in what respect(s) the lessee
has failed to comply with the provisions of applicable law; regulations; the
lease; the requirements of an approved
Delineation, Testing, or Mining Plan;
or the Director’s orders or instructions, and shall specify the action(s)
which must be taken to correct the
noncompliance and the time limits
within which such action must be
taken.
(c) Failure of a lessee to take the actions specified in the notice of noncompliance within the time limit specified shall be grounds for a suspension
of operations and other appropriate actions, including but not limited to the
assessment of a civil penalty of up to
$10,000 per day for each violation that
is not corrected within the time period
specified (43 U.S.C. 1350(b)).
(d) Whenever the Director determines
that a violation of or failure to comply
with any provision of the Act; or any
provision of a lease, license, or permit
issued pursuant to the Act; or any provision of any regulation promulgated
under the Act probably occurred and
that such apparent violation continued
beyond notice of the violation and the
expiration of the reasonable time period allowed for corrective action, the
Director shall follow the procedures
concerning remedies and penalties in
subpart N, Remedies and Penalties, of
30 CFR part 550 to determine and assess
an appropriate penalty.
(e) The remedies and penalties prescribed in this section shall be concurrent and cumulative, and the exercise
of one shall not preclude the exercise of
the other. Further, the remedies and
penalties prescribed in this section
shall be in addition to any other remedies and penalties afforded by any
other law or regulation (43 U.S.C.
1350(e)).
§ 582.15 Cancellation of leases.
(a) Whenever the owner of a nonproducing lease fails to comply with any
of the provisions of the Act, the lease,
or the regulations issued under the

Act, and the default continues for a period of 30 days after mailing of notice
by registered or certified letter to the
lease owner at the owner’s record post
office address, the Secretary may cancel the lease pursuant to section 5(c) of
the Act, and the lessee shall not be entitled to compensation. Any such cancellation is subject to judicial review
as provided by section 23(b) of the Act.
(b) Whenever the owner of any producing lease fails to comply with any
of the provisions of the Act, the lease,
or the regulations issued under the
Act, the Secretary may cancel the
lease only after judicial proceedings
pursuant to section 5(d) of the Act, and
the lessee shall not be entitled to compensation.
(c) Any lease issued under the Act,
whether producing or not, may be canceled by the Secretary upon proof that
it was obtained by fraud or misrepresentation and after notice and opportunity to be heard has been afforded to
the lessee.
(d) The Secretary may cancel a lease
in accordance with the following:
(1) Cancellation may occur at any
time if the Secretary determines after
a hearing that:
(i) Continued activity pursuant to
such lease would probably cause serious harm or damage to life (including
fish and other aquatic life), to property, to any mineral (in areas leased or
not leased), to the National security or
defense, or to the marine, coastal, or
human environment;
(ii) The threat of harm or damage
will not disappear or decrease to an acceptable extent within a reasonable period of time; and
(iii) The advantages of cancellation
outweigh the advantages of continuing
such lease in force.
(2) Cancellation shall not occur unless and until operations under such
lease shall have been under suspension
or temporary prohibition by the Secretary, with due extension of any lease
term continuously for a period of 5
years or for a lesser period upon request of the lessee;
(3) Cancellation shall entitle the lessee to receive such compensation as is
shown to the Secretary as being equal
to the lesser of:

532

VerDate Sep<11>2014

14:55 Oct 12, 2016

Jkt 238126

PO 00000

Frm 00542

Fmt 8010

Sfmt 8010

Y:\SGML\238126.XXX

238126

Ocean Energy Management, Interior

§ 582.20

(i) The fair value of the canceled
rights as of the date of cancellation,
taking account of both anticipated revenues from the lease and anticipated
costs, including costs of compliance
with all applicable regulations and operating orders, liability for cleanup
costs or damages, or both, and all other
costs reasonably anticipated on the
lease, or
(ii) The excess, if any, over the lessee’s revenue from the lease (plus interest thereon from the date of receipt
to date of reimbursement) of all consideration paid for the lease and all direct expenditures made by the lessee
after the date of issuance of such lease
and in connection with exploration or
development, or both, pursuant to the
lease (plus interest on such consideration and such expenditures from date
of payment to date of reimbursement),
except that in the case of joint leases
which are canceled due to the failure of
one or more partners to exercise due
diligence, the innocent parties shall
have the right to seek damages for
such loss from the responsible party or
parties and the right to acquire the interests of the negligent party or parties and be issued the lease in question.
(iii) The lessee shall not be entitled
to compensation where one of the following circumstances exists when a
lease is canceled:
(A) A producing lease is forfeited or
is canceled pursuant to section (5)(d) of
the Act;
(B) A Testing Plan or Mining Plan is
disapproved because the lessee’s failure
to demonstrate compliance with the requirements of applicable Federal law;
or
(C) The lessee of a nonproducing
lease fails to comply with a provision
of the Act, the lease, or regulations
issued under the Act, and the noncompliance continues for a period of 30
days or more after the mailing of a notice of noncompliance by registered or
certified letter to the lessee.

jstallworth on DSK7TPTVN1PROD with CFR

Subpart C—Obligations and
Responsibilities of Lessees
§ 582.20 Obligations and responsibilities of lessees.
(a) The lessee shall comply with the
provisions of applicable laws; regula-

tions; the lease; the requirements of
the approved Delineation, Testing, or
Mining Plans; and other written or oral
orders or instructions issued by the Director when performing exploration,
testing, development, and production
activities pursuant to a lease issued
under 30 CFR part 581. The lessee shall
take all necessary precautions to prevent waste and damage to oil, gas, sulphur, and other OCS mineral-bearing
formations and shall conduct operations in such manner that does not
cause or threaten to cause harm or
damage to life (including fish and other
aquatic life); to property; to the National security or defense; or to the
marine, coastal, or human environment (including onshore air quality).
The lessee shall make all mineral resource data and information and all environmental data and information acquired by the lessee in the course of exploration, testing, development, and
production operations on the lease
available to the Director for examination and copying at the lease site or an
onshore location convenient to the Director.
(b) In all cases where there is more
than one lease owner of record, one
person shall be designated payor for
the lease. The payor shall be responsible for making all rental, minimum
royalty, and royalty payments.
(c) In all cases where lease operations
are not conducted by the sole lessee, a
‘‘designation of operator’’ shall be submitted to and accepted by the Director
prior to the commencement of leasehold operations. This designation when
accepted will be recognized as authority for the designee to act on behalf of
the lessees and to fulfill the lessees’ obligations under the Act, the lease, and
the regulations of this part. All
changes of address and any termination of a designation of operator
shall be reported immediately, in writing, to the Director. In the case of a
termination of a designation of operator or in the event of a controversy
between the lessee and the designated
operator, both the lessee and the designated operator will be responsible for
the protection of the interests of the
lessor.
(d) When required by the Director or
at the option of the lessee, the lessee

533

VerDate Sep<11>2014

14:55 Oct 12, 2016

Jkt 238126

PO 00000

Frm 00543

Fmt 8010

Sfmt 8010

Y:\SGML\238126.XXX

238126

§ 582.21

30 CFR Ch. V (7–1–16 Edition)

jstallworth on DSK7TPTVN1PROD with CFR

shall submit to the Director the designation of a local representative empowered to receive notices, provide access to OCS mineral and environmental
data and information, and comply with
orders issued pursuant to the regulations of this part. If there is a change
in the designated representative, the
Director shall be notified immediately.
(e) Before beginning operations, the
lessee shall inform the Director in
writing of any designation of a local
representative under paragraph (d) of
this section and the address of the
mine office responsible for the exploration, testing, development, or production activities; the lessee’s temporary and permanent addresses; or the
name and address of the designated operator who will be responsible for the
operations, and who will act as the
local representative of the lessee. The
Director shall also be informed of each
change thereafter in the address of the
mine office or in the name or address of
the local representative.
(f) The holder of a right-of-use and
easement shall exercise its rights
under the right of use and easement in
accordance with the regulations of this
part.
(g) A lessee shall submit reports and
maintain records in accordance with
§ 582.29 of this part.
(h) When an oral approval is given by
BOEM in response to an oral request
under these regulations, the oral request shall be confirmed in writing by
the lessee or holder of a right of use
and easement within 72 hours.
(i) The lessee is responsible for obtaining all permits and approvals from
BOEM, BSEE or other Agencies needed
to carry out exploration, testing, development, and production activities
under a lease issued under 30 CFR part
581 of this title.
§ 582.21 Plans, general.
(a) No exploration, testing, development, or production activities, except
preliminary activities, shall be commenced or conducted on any lease except in accordance with a plan submitted by the lessee and approved by
the Director. Plans will not be approved before completion of comprehensive technical and environmental evaluations to assure that the

activities described will be carried out
in a safe and environmentally responsible manner. Prior to the approval of
a plan, the Director will assure that
the lessee is prepared to take adequate
measures to prevent waste; conserve
natural resources of the OCS; and protect the environment, human life, and
correlative rights. The lessee shall
demonstrate to the satisfaction of the
Director that the lease is in good
standing, the lessee is authorized and
capable of conducting the activities described in the plan, and that an acceptable bond has been provided.
(b) Plans shall be submitted to the
Director for approval. The lessee shall
submit the number of copies prescribed
by the Director. Such plans shall describe in detail the activities that are
to be conducted and shall demonstrate
that the proposed exploration, testing,
development, and production activities
will be conducted in an operationally
safe and environmentally responsible
manner that is consistent with the provisions of the lease, applicable laws,
and regulations. The Governor of an affected State and other Federal Agencies shall be provided an opportunity
to review and provide comments on
proposed Delineation, Testing, and
Mining Plans and any proposal for a
significant modification to an approved
plan. Following review, including the
technical and environmental evaluations, the Director shall either approve, disapprove, or require the lessee
to modify its proposed plan.
(c) Lessees are not required to submit
a Delineation or Testing Plan prior to
submittal of a proposed Testing or
Mining Plan if the lessee has sufficient
data and information on which to base
a Testing or Mining Plan without carrying out postlease exploration and/or
testing activities. A Mining Plan may
include proposed exploration or testing
activities where those activities are
needed to obtain additional data and
information on which to base plans for
future mining activities. A Testing
Plan may include exploration activities when those activities are needed to
obtain additional data or information
on which to base plans for future testing or mining activities.

534

VerDate Sep<11>2014

14:55 Oct 12, 2016

Jkt 238126

PO 00000

Frm 00544

Fmt 8010

Sfmt 8010

Y:\SGML\238126.XXX

238126

Ocean Energy Management, Interior

§ 582.22

(d) Preliminary activities are bathymetric, geological, geophysical, mapping, and other surveys necessary to
develop a comprehensive Delineation,
Testing, or Mining Plan. Such activities are those which have no significant adverse impact on the natural resources of the OCS. The lessee shall
give notice to the Director at least 30
days prior to initiating the proposed
preliminary activities on the lease.
The notice shall describe in detail
those activities that are to be conducted and the time schedule for conducting those activities.
(e) Leasehold activities shall be carried out with due regard to conservation of resources, paying particular attention to the wise management of
OCS mineral resources, minimizing
waste of the leased resource(s) in mining and processing, and preventing
damage to unmined parts of the mineral deposit and other resources of the
OCS.

jstallworth on DSK7TPTVN1PROD with CFR

§ 582.22

Delineation Plan.

All exploration activities shall be
conducted in accordance with a Delineation Plan submitted by the lessee
and approved by the Director. The Delineation Plan shall describe the proposed activities necessary to locate
leased OCS minerals, characterize the
quantity and quality of the minerals,
and generate other information needed
for the development of a comprehensive Testing or Mining Plan. A Delineation Plan at a minimum shall include
the following:
(a) The OCS mineral(s) or primary interest.
(b) A brief narrative description of
the activities to be conducted and how
the activities will lead to the discovery
and evaluation of a commercially minable deposit on the lease.
(c) The name, registration, and type
of equipment to be used, including vessel types as well as their navigation
and mobile communication systems,
and transportation corridors to be used
between the lease and shore.
(d) Information showing that the
equipment to be used (including the
vessel) is capable of performing the intended operation in the environment
which will be encountered.

(e) Maps showing the proposed locations of test drill holes, the anticipated
depth of penetration of test drill holes,
the locations where surficial samples
were taken, and the location of proposed geophysical survey lines for each
surveying method being employed.
(f) A description of measures to be
taken to avoid, minimize, or otherwise
mitigate air, land, and water pollution
and damage to aquatic and wildlife species and their habitats; any unique or
special features in the lease area;
aquifers; other natural resources of the
OCS; and hazards to public health,
safety, and navigation.
(g) A schedule indicating the starting
and completion dates for each proposed
exploration activity.
(h) A list of any known archaeological resources on the lease and
measures to assure that the proposed
exploration activities do not damage
those resources.
(i) A description of any potential conflicts with other uses and users of the
area.
(j) A description of measures to be
taken to monitor the effects of the proposed exploration activities on the environment in accordance with § 582.28(c)
of this part.
(k) A detailed description of practices and procedures to effect the abandonment of exploration activities, e.g.,
plugging of test drill holes. The proposed procedures shall indicate the
steps to be taken to assure that test
drill holes and other testing procedures
which penetrate the seafloor to a significant depth are properly sealed and
that the seafloor is left free of obstructions or structures that may present a
hazard to other uses or users of the
OCS such as navigation or commercial
fishing.
(l) A detailed description of the cycle
of all materials, the method for discharge and disposal of waste and
refuse, and the chemical and physical
characteristics of waste and refuse.
(m) A description of the potential environmental impacts of the proposed
exploration activities including the following:
(1) The location of associated port,
transport, processing, and waste disposal facilities and affected environment (e.g., maps, land use, and layout);

535

VerDate Sep<11>2014

14:55 Oct 12, 2016

Jkt 238126

PO 00000

Frm 00545

Fmt 8010

Sfmt 8010

Y:\SGML\238126.XXX

238126

§ 582.23

30 CFR Ch. V (7–1–16 Edition)

jstallworth on DSK7TPTVN1PROD with CFR

(2) A description of the nature and
degree of environmental impacts and
the domestic socioeconomic effects of
construction and operation of the associated facilities, including waste characteristics and toxicity;
(3) Any proposed mitigation measures to avoid or minimize adverse impacts on the environment;
(4) A certificate of consistency with
the federally approved State coastal
zone management program, where applicable; and
(5) Alternative sites and technologies
considered by the lessee and the reasons why they were not chosen.
(n) Any other information needed for
technical evaluation of the planned activity, such as sample analyses to be
conducted at sea, and the evaluation of
potential environmental impacts.
§ 582.23 Testing Plan.
All testing activities shall be conducted in accordance with a Testing
Plan submitted by the lessee and approved by the Director. Where a lessee
needs more information to develop a
detailed Mining Plan than is obtainable under an approved Delineation
Plan, to prepare feasibility studies, to
carry out a pilot program to evaluate
processing techniques or technology or
mining equipment, or to determine environmental effects by a pilot test mining operation, the lessee shall submit a
comprehensive Testing Plan for the Director’s approval. Any OCS minerals
acquired during activities conducted
under an approved Testing Plan will be
subject to the payment of royalty pursuant to the governing lease terms. A
Testing Plan at a minimum shall include the following:
(a) The nature and purpose of the
proposed testing program.
(b) A comprehensive description of
the activities to be performed including descriptions of the proposed methods for analysis of samples taken.
(c) A narrative description and maps
showing water depths and the locations
of the proposed pilot mining or other
testing activities.
(d) A comprehensive description of
the method and manner in which testing activities will be conducted and the
results the lessee expects to obtain as a
result of those activities.

(e) The name, registration, and type
of equipment to be used, including vessel types together with their navigation and mobile communication systems, and transportation corridors to
be used between the lease and shore.
(f) Information showing that the
equipment to be used (including the
vessel) is capable of performing the intended operation in the environment
which will be encountered.
(g) A schedule specifying the starting
and completion dates for each of the
testing activities.
(h) A list of known archaeological resources on the lease and measures to be
used to assure that the proposed testing activities do not damage those resources.
(i) A description of any potential conflicts with other uses and users of the
area.
(j) A description of measures to be
taken to avoid, minimize, or otherwise
mitigate air, land, and water pollution
and damage to aquatic and wildlife species and their habitat; any unique or
special features in the lease area, other
natural resources of the OCS; and hazards to public health, safety, and navigation.
(k) A description of the measures to
be taken to monitor the impacts of the
proposed testing activities in accordance with § 582.28(c) of this part.
(l) A detailed description of the cycle
of all materials including samples and
wastes, the method for discharge and
disposal of waste and refuse, and the
chemical and physical characteristics
of such waste and refuse.
(m) A detailed description of practices and procedures to effect the abandonment of testing activities, e.g.,
abandonment of a pilot mining facility.
The proposed procedures shall indicate
the steps to be taken to assure that
mined areas do not pose a threat to the
environment and that the seafloor is
left free of obstructions and structures
that may present a hazard to other
uses or users of the OCS such as navigation or commercial fishing.
(n) A description of potential environmental impacts of testing activities
including the following:

536

VerDate Sep<11>2014

14:55 Oct 12, 2016

Jkt 238126

PO 00000

Frm 00546

Fmt 8010

Sfmt 8010

Y:\SGML\238126.XXX

238126

Ocean Energy Management, Interior

§ 582.24

jstallworth on DSK7TPTVN1PROD with CFR

(1) The location of associated port,
transport, processing, and waste disposal facilities and affected environment (e.g., maps, land use, and layout);
(2) A description of the nature and
degree of potential environmental impacts of the proposed testing activities
and the domestic socioeconomic effects
of construction and operation of the
proposed testing facilities, including
waste characteristics and toxicity;
(3) Any proposed mitigation measures to avoid or minimize adverse impacts on the environment;
(4) A certificate of consistency with
the federally approved State coastal
zone management program, where applicable; and
(5) Alternate sites and technologies
considered by the lessee and the reasons why they were not selected.
(o) Any other information needed for
technical evaluation of the planned activities and for evaluation of the impact of those activities on the human,
marine, and coastal environments.
§ 582.24 Mining Plan.
All OCS mineral development and
production activities shall be conducted in accordance with a Mining
Plan submitted by the lessee and approved by the Director. A Mining Plan
shall include comprehensive detailed
descriptions, illustrations, and explanations of the proposed OCS mineral
development, production, and processing
activities
and
accurately
present the lessee’s proposed plan of
operation. A Mining Plan at a minimum shall include the following:
(a) A narrative description of the
mining activities including:
(1) The OCS mineral(s) or material(s)
to be recovered;
(2) Estimates of the number of tons
and grade(s) of ore to be recovered;
(3) Anticipated annual production;
(4) Volume of ocean bottom expected
to be disturbed (area and depth of disruption) each year; and
(5) All activities of the mining cycle
from extraction through processing
and waste disposal.
(b) Maps of the lease showing water
depths, the outline of the mineral deposit(s) to be mined with cross sections
showing thickness, and the area(s) anticipated to be mined each year.

(c) The name, registration, and type
of equipment to be used, including vessel types as well as their navigation
and mobile communication systems,
and transportation corridors to be used
between the lease and shore.
(d) Information showing that the
equipment to be used (including the
vessel) is capable of performing the intended operation in the environment
which will be encountered.
(e) A description of equipment to be
used in mining, processing, and transporting of the ore.
(f) A schedule indicating the anticipated starting and completion dates for
each activity described in the plan.
(g) For onshore processing, a description of how OCS minerals are to be
processed and how the produced OCS
minerals will be weighed, assayed, and
royalty determinations made.
(h) For at-sea processing, additional
information including type and size of
installation or structures and the
method of tailings disposal.
(i) A list of known archaeological resources on the lease and the measures
to be taken to assure that the proposed
mining activities do not damage those
resources.
(j) Description of any potential conflicts with other uses and users of the
area.
(k) A detailed description of the nature and occurrence of the OCS mineral
deposit(s) in the leased area with adequate maps and sections.
(l) A detailed description of development and mining methods to be used,
the proposed sequence of mining or development, the expected production
rate, the method and location of the
proposed processing operation, and the
method of measuring production.
(m) A detailed description of the
method of transporting the produced
OCS minerals from the lease to shore
and adequate maps showing the locations of pipelines, conveyors, and other
transportation facilities and corridors.
(n) A detailed description of the cycle
of all materials including samples and
wastes, the method of discharge and
disposal of waste and refuse, and the
chemical and physical characteristics
of the waste and refuse.
(o) A description of measures to be
taken to avoid, minimize, or otherwise

537

VerDate Sep<11>2014

14:55 Oct 12, 2016

Jkt 238126

PO 00000

Frm 00547

Fmt 8010

Sfmt 8010

Y:\SGML\238126.XXX

238126

jstallworth on DSK7TPTVN1PROD with CFR

§ 582.25

30 CFR Ch. V (7–1–16 Edition)

mitigate air, land, and water pollution
and damage to aquatic and wildlife species and their habitats; any unique or
special features in the lease area,
aquifers, or other natural resources of
the OCS; and hazards to public health,
safety, and navigation.
(p) A detailed description of measures to be taken to monitor the impacts of the proposed mining and processing activities on the environment in
accordance with § 582.28(c) of this part.
(q) A detailed description of practices
and procedures to effect the abandonment of mining and processing activities. The proposed procedures shall indicate the steps to be taken to assure
that mined areas on tailing deposits do
not pose a threat to the environment
and that the seafloor is left free of obstructions and structures that present
a hazard to other users or uses of the
OCS such as navigation or commercial
fishing.
(r) A description of potential environmental impacts of mining activities including the following:
(1) The location of associated port,
transport, processing, and waste disposal facilities and the affected environment (e.g., maps, land use, and layout);
(2) A description of the nature and
degree of potential environmental impacts of the proposed mining activities
and the domestic socioeconomic effects
of construction and operation of the associated facilities, including waste
characteristics and toxicity;
(3) Any proposed mitigation measures to avoid or minimize adverse impacts on the environment;
(4) A certificate of consistency with
the federally approved State coastal
zone management program, where applicable; and
(5) Alternative sites and technologies
considered by the lessee and the reasons why they were not chosen.
(s) Any other information needed for
technical evaluation of the proposed
activities and for the evaluation of potential impacts on the environment.

rant, the Director may direct the lessee to modify an approved plan to adjust to changed conditions. If the lessee
requests the change, the lessee shall
submit a detailed, written statement of
the proposed modifications, potential
impacts, and the justification for the
proposed changes. Revision of an approved plan whether initiated by the
lessee or ordered by the Director shall
be submitted to the Director for approval. When the Director determines
that a proposed revision could result in
significant change in the impacts previously identified and evaluated or requires additional permits, the proposed
plan revision shall be subject to the applicable review and approval procedures of §§ 582.21, 582.22, 582.23, and
582.24 of this part.

§ 582.25 Plan modification.
Approved Delineation, Testing, and
Mining Plans may be modified upon
the Director’s approval of the changes
proposed. When circumstances war-

§ 582.28 Environmental
measures.

§ 582.26

Contingency Plan.

(a) When required by the Director, a
lessee shall include a Contingency Plan
as part of its request for approval of a
Delineation, Testing, or Mining Plan.
The Contingency Plan shall comply
with the requirements of § 582.28(e) of
this part.
(b) The Director may order or the lessee may request the Director’s approval of a modification of the Contingency Plan when such a change is necessary to reflect any new information
concerning the nature, magnitude, and
significance of potential equipment or
procedural failures or the effectiveness
of the corrective actions described in
the Contingency Plan.
§ 582.27

Conduct of operations.

(a)–(h) [Reserved]
(i) Any bulk sampling or testing that
is necessary to be conducted prior to
submission of a Mining Plan shall be in
accordance with an approved Testing
Plan. The sale of any OCS minerals acquired under an approved Testing Plan
shall be subject to the payment of the
royalty specified in the lease to the
United States.
(j)–(m) [Reserved]
protection

(a) Exploration, testing, development, production, and processing activities proposed to be conducted under

538

VerDate Sep<11>2014

14:55 Oct 12, 2016

Jkt 238126

PO 00000

Frm 00548

Fmt 8010

Sfmt 8010

Y:\SGML\238126.XXX

238126

jstallworth on DSK7TPTVN1PROD with CFR

Ocean Energy Management, Interior

§ 582.29

a lease will only be approved by the Director upon the determination that the
adverse impacts of the proposed activities can be avoided, minimized, or otherwise mitigated. The Director shall
take into account the information contained in the sale-specific environmental evaluation prepared in association with the lease offering as well as
the site- and operational-specific environmental evaluations prepared in association with the review and evaluation of the approved Delineation, Testing, or Mining Plan. The Director’s review of the air quality consequences of
proposed OCS activities will follow the
practices and procedures specified in 30
CFR 250.194, §§ 550.194, 550.218, 550.249,
and 550.303.
(b) If the baseline data available are
judged by the Director to be inadequate to support an environmental
evaluation of a proposed Delineation,
Testing, or Mining Plan, the Director
may require the lessee to collect additional environmental baseline data
prior to the approval of the activities
proposed.
(c)(1) [Reserved]
(2) Monitoring of environmental effects shall include determination of the
spatial and temporal environmental
changes induced by the exploration,
testing, development, production, and
processing activities on the flora and
fauna of the sea surface, the water column, and/or the seafloor.
(3)–(4) [Reserved]
(5) When prototype test mining is
proposed, the lessee shall include a
monitoring strategy for assessing the
impacts of the testing activities and
for developing a strategy for monitoring commercial-scale recovery and
mitigating the impacts of commercialscale recovery more effectively. At a
minimum, the proposed monitoring activities shall address specific concerns
expressed in the lease-sale environmental analysis.
(6) When required, the monitoring
plan shall specify:
(i) The sampling techniques and procedures to be used to acquire the needed data and information;
(ii) The format to be used in analysis
and presentation of the data and information;

(iii) The equipment, techniques, and
procedures to be used in carrying out
the monitoring program; and
(iv) The name and qualifications of
person(s) designated to be responsible
for carrying out the environmental
monitoring.
(d) [Reserved]
(e) In the event that equipment or
procedural failure might result in significant additional damage to the environment, the lessee shall submit a Contingency Plan which specifies the procedures to be followed to institute corrective actions in response to such a
failure and to minimize adverse impacts on the environment. Such procedures shall be designed for the site and
mining activities described in the approved Delineation, Testing, or Mining
Plan.
§ 582.29 Reports and records.
(a) A report of the amount and value
of each OCS mineral produced from
each lease shall be made by the payor
for the lease for each calendar month,
beginning with the month in which approved testing, development, or production activities are initiated and
shall be filed in duplicate with the Director on or before the 20th day of the
succeeding month, unless an extension
of time for the filing of such report is
granted by the Director. The report
shall disclose accurately and in detail
all operations conducted during each
month and present a general summary
of the status of leasehold activities.
The report shall be submitted each
month until the lease is terminated or
relinquished unless the Director authorizes omission of the report during
an approved suspension of production.
The report shall show for each calendar
month the location of each mining and
processing activity; the number of days
operations were conducted; the identity, quantity, quality, and value of
each OCS mineral produced, sold,
transferred, used or otherwise disposed
of; identity, quantity, and quality of an
inventory maintained prior to the
point of royalty determination; and
other information as may be required
by the Director.
(b) The lessee shall submit a status
report on exploration and/or testing activities under an approved Delineation

539

VerDate Sep<11>2014

14:55 Oct 12, 2016

Jkt 238126

PO 00000

Frm 00549

Fmt 8010

Sfmt 8010

Y:\SGML\238126.XXX

238126

jstallworth on DSK7TPTVN1PROD with CFR

§ 582.29

30 CFR Ch. V (7–1–16 Edition)

or Testing Plan to the Director within
30 days of the close of each calendar
quarter which shall include:
(1) A summary of activities conducted;
(2) A listing of all geophysical and
geochemical data acquired and developed such as acoustic or seismic
profiling records;
(3) A map showing location of holes
drilled and where bottom samples were
taken; and
(4) Identification of samples analyzed.
(c) Each lessee shall submit to the
Director a report of exploration and/or
testing activities within 3 months after
the completion of operations. The final
report of exploration and/or testing activities conducted on the lease shall include:
(1) A description of work performed;
(2) Charts, maps, or plats depicting
the area and leases in which activities
were conducted specifically identifying
the lines of geophysical traverses and/
or the locations where geological activity was conducted and/or the locations
of other exploration and testing activities;
(3) The dates on which the actual operations were performed;
(4) A narrative summary of any mineral occurrences; environmental hazards; and effects of the activities on
the environment, aquatic life, archaeological resources, or other uses and
users of the area in which the activities were conducted;
(5) Such other descriptions of the activities conducted as may be specified
by the Director; and
(6) Records of all samples from core
drilling or other tests made on the
lease. The records shall be in such form
that the location and direction of the
samples can be accurately located on a
map. The records shall include logs of
all strata penetrated and conditions
encountered, such as minerals, water,
gas, or unusual conditions, and copies
of analyses of all samples analyzed.
(d) The lessee shall report the results
of environmental monitoring activities
required in § 582.28 of this part and
shall submit such other environmental
data as the Director may require to
conform with the requirements of these
regulations.

(e)(1) All maps shall be appropriately
marked with reference to official lease
boundaries and elevations marked with
reference to sea level. When required
by the Director, vertical projections
and cross sections shall accompany
plan views. The maps shall be kept current and submitted to the Director annually, or more often when required by
the Director. The accuracy of maps furnished shall be certified by a professional engineer or land surveyor.
(2) The lessee shall prepare such
maps of the leased lands as are necessary to show the geological conditions as determined from G&G surveys,
bottom sampling, drill holes, trenching, dredging, or mining. All excavations shall be shown in such manner
that the volume of OCS minerals produced during a royalty period can be
accurately ascertained.
(f) Any lessee who acquires rock,
mineral, and core samples under a
lease shall keep a representative split
of each geological sample and a quarter
longitudinal segment of each core for 5
years during which time the samples
shall be available for inspection at the
convenience of the Director who may
take cuts of such cores, cuttings, and
samples.
(g)(1) The lessee shall keep all original data and information available for
inspection or duplication, by the Director at the expense of the lessor, as long
as the lease continues in force. Should
the lessee choose to dispose of original
data and information once the lease
has expired, said data and information
shall be offered to the lessor free of
costs and shall, if accepted, become the
property of the lessor.
(2) Navigation tapes showing the location(s) where samples were taken
and test drilling conducted shall be retained for as long as the lease continues in force.
(h) Lessees shall maintain records in
which will be kept an accurate account
of all ore and rock mined; all ore put
through a mill; all mineral products
produced; all ore and mineral products
sold, transferred, used, or otherwise
disposed of and to whom sold or transferred, and the inventory weight, assay
value, moisture content, base sales
price, dates, penalties, and price received. The percentage of each of the

540

VerDate Sep<11>2014

14:55 Oct 12, 2016

Jkt 238126

PO 00000

Frm 00550

Fmt 8010

Sfmt 8010

Y:\SGML\238126.XXX

238126

Ocean Energy Management, Interior

§ 582.40

mineral products recovered and the
percentages lost shall be shown. The
records associated with activities on a
lease shall be available to the Director
for auditing.
(i) When special forms or reports
other than those referred to in the regulations in this part may be necessary,
instructions for the filing of such forms
or reports will be given by the Director.
§ 582.30 Right of use and easement.
(a) A right of use and easement that
includes any area subject to a lease
issued or maintained under the Act
shall be granted only after the lessee
has been notified by the requestor and
afforded the opportunity to comment
on the request. A holder of a right
under a right of use and easement shall
exercise that right in accordance with
the requirements of the regulations in
this part. A right of use and easement
shall be exercised only in a manner
which does not interfere unreasonably
with operations of any lessee on its
lease.
(b) Once a right of use and easement
has been exercised, the right shall continue, beyond the termination of any
lease on which it may be situated, as
long as it is demonstrated to the Director that the right of use and easement
is being exercised by the holder of the
right and that the right of use and
easement continues to serve the purpose specified in the grant. If the right
of use and easement extends beyond
the termination of any lease on which
the right may be situated or if it is situated on an unleased portion of the
OCS, the rights of all subsequent lessees shall be subject to such right.
Upon termination of a right of use and
easement, the holder of the right shall
abandon the premises in the same manner that a lessee abandons activities on
a lease to the satisfaction of the Director.
§ 582.31

[Reserved]

jstallworth on DSK7TPTVN1PROD with CFR

Subpart D—Payments
§ 582.40 Bonds.
(a) Pursuant to the requirements for
a bond in § 581.33 of this title, prior to
the commencement of any activity on

a lease, the lessee shall submit a surety
or personal bond to cover the lessee’s
royalty and other obligations under
the lease as specified in this section.
(b) All bonds furnished by a lessee or
operator must be in a form approved by
the Deputy Director. A single copy of
the required form is to be executed by
the principal or, in the case of surety
bonds, by both the principal and an acceptable surety.
(c) Only those surety bonds issued by
qualified surety companies approved by
the Department of the Treasury shall
be accepted (see Department of Treasury Circular No. 570 and any supplemental or replacement circulars).
(d) Personal bonds shall be accompanied by a cashier’s check, certified
check, or negotiable U.S. Treasury
bonds of an equal value to the amount
specified in the bond. Negotiable Treasury bonds shall be accompanied by a
proper conveyance of full authority to
the Director to sell such securities in
case of default in the performance of
the terms and conditions of the lease.
(e) A bond in the minimum amount
of $50,000 to cover the lessee’s obligations under the lease shall be submitted prior to the commencement of
any activity on a leasehold. A $50,000
bond shall not be required on a lease if
the lessee already maintains or furnishes a $300,000 bond conditioned on
compliance with the terms of leases for
OCS minerals other than oil, gas, and
sulphur held by the lessee on the OCS
for the area in which the lease is located. A bond submitted pursuant to
§ 556.58(a) of this chapter may be
amended to include the aforementioned
condition for compliance. Prior to approval of a Delineation, Testing, or
Mining Plan, the bond amount shall be
adjusted, if appropriate, to cover the
operations and activities described in
the proposed plan.
(f) For the purposes of this section
there are three areas:
(1) The Gulf of Mexico and the area
offshore the Atlantic Ocean;
(2) The area offshore the Pacific
Coast States of California, Oregon,
Washington, and Hawaii; and
(3) The area offshore the coast of
Alaska.
(g) A separate bond shall be required
for each area. An operator’s bond may

541

VerDate Sep<11>2014

14:55 Oct 12, 2016

Jkt 238126

PO 00000

Frm 00551

Fmt 8010

Sfmt 8010

Y:\SGML\238126.XXX

238126

§ 582.41

30 CFR Ch. V (7–1–16 Edition)

be submitted for a specific lease(s) in
the same amount as the lessee’s
bond(s) applicable to the lease(s) involved.
(h) Where, upon a default, the surety
makes a payment to the United States
of an obligation incurred under a lease,
the face amount of the surety bond and
the surety’s liability thereunder shall
be reduced by the amount of such payment.
(i) After default, the principal shall,
within 6 months after notice or within
such shorter period as may be fixed by
the Director, either post a new bond or
increase the existing bond to the
amount previously held. In lieu thereof, the principal may, within that time,
file separate or substitute bonds for
each lease. Failure to meet these requirements may result in a suspension
of operations including production on
leases covered by such bonds.
(j) The Director shall not consent to
termination of the period of liability of
any bond unless an acceptable alternative bond has been filed or until all
the terms and conditions of the lease
covered by the bond have been met.
[76 FR 64623, Oct. 18, 2011, as amended at 80
FR 57098, Sept. 22, 2015]

§ 582.41

Method of royalty calculation.

In the event that the provisions of
royalty management regulations in
part 1206 of chapter XII do not apply to
the specific commodities produced
under regulations in this part, the lessee shall comply with procedures specified in the leasing notice.
§ 582.42

Payments.

Rentals, royalties, and other payments due the Federal Government on
leases for OCS minerals shall be paid
and reports submitted by the payor for
a lease in accordance with § 581.26.

Subpart E—Appeals

jstallworth on DSK7TPTVN1PROD with CFR

§ 582.50

Appeals.

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

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

Subpart B—Issuance of OCS Renewable
Energy Leases
GENERAL LEASE INFORMATION
585.200 What rights are granted with a lease
issued under this part?
585.201 How will BOEM issue leases?
585.202 What types of leases will BOEM
issue?
585.203 With whom will BOEM consult before issuance of a lease?
585.204 What areas are available for leasing
consideration?
585.205 How will leases be mapped?
585.206 What is the lease size?
585.207–585.209 [Reserved]

542

VerDate Sep<11>2014

14:55 Oct 12, 2016

Jkt 238126

PO 00000

Frm 00552

Fmt 8010

Sfmt 8010

Y:\SGML\238126.XXX

238126