30 Cfr 560

Pt. 560

30 CFR Ch. V (7–1–18 Edition)

quality and productivity of such environments, to establish trends in the
area studies, and to design experiments
identifying the causes of such changes.
Findings from such studies will be used
to recommend modifications in practices that are employed to mitigate the
effects of OCS activities and to enhance the data/information base for
predicting impacts which might result
from a single lease sale or cumulative
OCS activities.
(e) Information available or collected
by the studies program will, to the extent practicable, be provided in a form
and in a timeframe that can be used in
the decision-making process associated
with a specific leasing action or with
longer term OCS minerals management
responsibilities.

BIDDING SYSTEM SELECTION CRITERIA
560.230 What criteria does BOEM use for selecting bidding systems and bidding system components?

Subpart C—Operating Allowances
560.300

Operating allowances.

Subpart D [Reserved]
Subpart E—Electronic Filings

PART 560—OUTER CONTINENTAL
SHELF OIL AND GAS LEASING
Subpart A—General Provisions
560.100 Authority
560.100 What is the purpose of this part?
560.102 What definitions apply to this part?
560.103 What is BOEM’s authority to collect
information?

Subpart B—Bidding Systems
GENERAL PROVISIONS
560.200 What is the purpose of this subpart?
560.201 What definitions apply to this subpart?
560.202 What bidding systems may BOEM
use?
560.203 What conditions apply to the bidding
systems that BOEM uses?

560.500 Electronic document and data transmissions.
560.501 How long will the confidentiality of
electronic document and data transmissions be maintained?
560.502 Are electronically filed document
transmissions legally binding?
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 Provisions
§ 560.100

ELIGIBLE LEASES
560.210 How do royalty suspension volumes
apply to eligible leases?
560.211 When does an eligible lease qualify
for a royalty suspension volume?
560.212 How does BOEM assign and monitor
royalty suspension volumes for eligible
leases?
560.213 How long will a royalty suspension
volume for an eligible lease be effective?
550.214 How do I measure natural gas production on my eligible lease?
ROYALTY SUSPENSIONS (RS) LEASES

jstallworth on DSKBBY8HB2PROD with CFR

560.222 How long will a royalty suspension
volume be effective for a lease issued in
a sale held after November 2000?
560.223 How do I measure natural gas production for a lease issued in a sale held
after November 2000?
560.224 How will royalty suspension apply if
BOEM assigns a lease issued in a sale
held after November 2000 to a field that
has a pre-Act lease?

560.220 How does royalty suspension apply
to leases issued in a sale held after November 2000?
560.221 When does a lease issued in a sale
held after November 2000 get a royalty
suspension?

Authority.

(a) The Outer Continental Shelf
Lands Act (OCSLA) (43 U.S.C. 1334)
(‘‘Outer Continental Shelf Lands Act
Amendments of 1978’’).
(b) The Federal Oil and Gas Royalty
Management
Act,
as
amended
(FOGRMA) (30 U.S.C. 1711), including
the Federal Oil and Gas Royalty Simplification and Fairness Act of 1996, (30
U.S.C. 1701 note).
(c) The Independent Offices Appropriations Act of 1952 (31 U.S.C. 9701).
(d) Public Law 89–554, 1966 (5 U.S.C.
301).
[81 FR 18175, Mar. 30, 2016]

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Ocean Energy Management, Interior

§ 560.103

§ 560.101 What is the purpose of this
part?
This part 560 implements the Outer
Continental Shelf Lands Act (OCSLA),
43 U.S.C. 1331 et seq., as amended, by
providing regulations to foster competition including, but not limited to:
(a) Implementing alternative bidding
systems;
(b) Prohibiting joint bidding for development rights by certain types of
joint ventures; and
(c) Establishing diligence requirements for Federal OCS leases.
[76 FR 64623, Oct. 18, 2011. Redesignated at 81
FR 18175, Mar. 30, 2016]

jstallworth on DSKBBY8HB2PROD with CFR

§ 560.102 What definitions apply to this
part? What definitions apply to
this part?
(a) Terms used in this part have the
meaning given in the Act and as defined in this part.
(b) The following definitions apply to
this part:
Area or region means the geographic
area or region over which the BOEM
authorized officer has jurisdiction, unless the context in which those words
are used indicates that a different
meaning is intended.
BOEM means Bureau of Ocean Energy Management.
Designated official means a representative of DOI subject to the direction
and supervisory authority of the Directors, BOEM, and the appropriate Regional Manager of the BOEM authorized and empowered to supervise and
direct all oil and gas operations and to
perform other duties prescribed in this
chapter.
Director means Director, BOEM, DOI.
DOI means the Department of the Interior, including the Secretary of the
Interior, or his or her delegate.
Federal lease means an agreement
which, for consideration, including, but
not limited to, bonuses, rents or royalties conferred, and covenants to be observed, authorizes a person to explore
for, or develop, or produce (or to do any
or all of these) oil and gas, coal, oil
shale, tar sands, and geothermal resources on lands or interests in lands
under Federal jurisdiction.
Gas or Natural Gas means a mixture
of hydrocarbons and varying quantities

of non-hydrocarbons that exist in the
gaseous phase.
Oil means a mixture of hydrocarbons
that exists in a liquid or gaseous phase
in an underground reservoir and which
remains or becomes liquid at atmospheric pressure after passing through
surface separating facilities, including
condensate recovered by means other
than a manufacturing process.
Outer Continental Shelf (OCS) means
all submerged lands lying seaward and
outside of the area of lands beneath
navigable waters as defined in the Submerged Lands Act (43 U.S.C. 1301–1315)
and of which the subsoil and seabed appertain to the United States and are
subject to its jurisdiction and control.
OCSLA means the Outer Continental
Shelf Lands Act, as amended (Act of
August 7, 1953, Ch. 345, 67 Stat. 462, 43
U.S.C. 1331–1356a, as amended by Pub.
L. 95–372, 92 Stat. 629).
Person means a natural person, where
so designated, or an entity, such as a
partnership, association, State, political subdivision of a State or territory,
or a private, public, or municipal corporation.
We means the Bureau of Ocean Energy Management (BOEM).
You means the lessee or operating
rights owner.
[81 FR 18175, Mar. 30, 2016]

§ 560.103 What is BOEM’s authority to
collect information?
(a) The Paperwork Reduction Act of
1995 (PRA) requires us to inform you
that 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. The information collection
under 30 CFR part 560 is either exempt
from the PRA (5 CFR 1320.4(a)(2), (c)) or
refers to requirements covered under 30
CFR parts 203 and 556.
(b) You may send comments regarding any aspect of the collection of information under this part, including
suggestions for reducing the burden, to
the Information Collection Clearance
Officer, Bureau of Ocean Energy Management, 45600 Woodland Road, Sterling, VA 20166.
[76 FR 64623, Oct. 18, 2011, as amended at 80
FR 57097, Sept. 22, 2015. Redesignated at 81
FR 18175, Mar. 30, 2016]

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§ 560.200

30 CFR Ch. V (7–1–18 Edition)

Subpart B—Bidding Systems
GENERAL PROVISIONS
§ 560.200 What is the purpose of this
subpart?
This subpart establishes the bidding
systems that we may use to offer and
sell Federal leases for the exploration,
development, and production of oil and
gas resources located on the OCS.

jstallworth on DSKBBY8HB2PROD with CFR

[76 FR 64623, Oct. 18, 2011. Redesignated at 81
FR 18175, Mar. 30, 2016]

§ 560.201 What definitions apply to this
subpart?
Act means the Outer Continental
Shelf Deep Water Royalty Relief Act,
Pub. L. 104–58, 43 U.S.C. 1337(3).
Eligible lease means a lease that:
(1) Is issued as part of an OCS lease
sale held after November 28, 1995, and
before November 28, 2000;
(2) Is located in the Gulf of Mexico in
water depths of 200 meters or deeper;
(3) Lies wholly west of 87 degrees, 30
minutes West longitude; and
(4) Is offered subject to a royalty suspension volume.
Field means an area consisting of a
single reservoir or multiple reservoirs
all grouped on, or related to, the same
general geological structural feature
and/or stratigraphic trapping condition. Two or more reservoirs may be in
a field, separated vertically by intervening impervious strata, or laterally
by local geologic barriers, or by both.
Highest responsible qualified bidder
means a person who has met the appropriate requirements of 30 CFR part 556,
subpart G, and has submitted a bid
higher than any other bids by qualified
bidders on the same tract.
Highest royalty rate means the highest
percent rate payable to the United
States, as specified in the lease, in the
amount or value of the production
saved, removed, or sold.
Lease period means the time from
lease issuance until relinquishment,
expiration, or termination.
Lowest royalty rate means the lowest
percent rate payable to the United
States, as specified in the lease, in the
amount or value of the production
saved, removed, or sold.
OCS lease sale means the Department
of the Interior (DOI) proceeding by

which leases for certain OCS tracts are
offered for sale by competitive bidding
and during which bids are received, announced, and recorded.
Pre-Act lease means a lease that:
(1) Is issued as part of an OCS lease
sale held before November 28, 1995;
(2) Is located in the Gulf of Mexico in
water depths of 200 meters or deeper;
and
(3) Lies wholly west of 87 degrees, 30
minutes West longitude (see 30 CFR
part 203).
Production period means the period
during which the amount of oil and gas
produced from a tract (or, if the tract
is unitized, the amount of oil and gas
as allocated under a unitization formula) will be measured for purposes of
determining the amount of royalty
payable to the United States.
Qualified bidder means a person who
has met the appropriate requirements
of 30 CFR part 556, subpart G.
Royalty rate means the percentage of
the amount or value of the production
saved, removed, or sold that is due and
payable to the United States Government.
Royalty suspension (RS) lease means a
lease that:
(1) Is issued as part of an OCS lease
sale held after November 28, 2000;
(2) Is in locations or planning areas
specified in a particular Notice of OCS
Lease Sale; and
(3) Is offered subject to a royalty suspension specified in a Notice of OCS
Lease Sale published in the FEDERAL
REGISTER.
Tract means a designation assigned
solely for administrative purposes to a
block or combination of blocks that
are identified by a leasing map or an
official protraction diagram prepared
by the DOI.
Value of production means the value
of all oil and gas production saved, removed, or sold from a tract (or, if the
tract is unitized, the value of all oil
and gas production saved, removed, or
sold and credited to the tract under a
unitization formula) during a period of
production. The value of production is
determined under 30 CFR part 1206.
[76 FR 64623, Oct. 18, 2011. Redesignated at 81
FR 18175, Mar. 30, 2016]

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Ocean Energy Management, Interior

§ 560.202

jstallworth on DSKBBY8HB2PROD with CFR

§ 560.202 What bidding systems may
BOEM use?
We will apply a single bidding system
selected from those listed in this sec-

tion to each tract included in an OCS
lease sale. The following table lists bidding systems, the bid variables, and
characteristics.

For the bidding system . . .

The bid variable is the . . .

And the characteristics are . . .

(a) Cash bonus bid with a fixed
royalty rate of not less than
12.5 percent,

Cash bonus,

(b) Royalty rate bid with fixed
cash bonus,

Royalty rate,

(c) Cash bonus bid with a sliding royalty rate of not less
than 12.5 percent at the beginning of the lease period,

Cash bonus,

(d) Cash bonus bid with fixed
share of the net profits of no
less than 30 percent,

Cash bonus,

(e) Cash bonus with variable
royalty rate(s) during one or
more periods of production,

Cash bonus,

(f) Cash bonus with royalty
rate(s) based on formula(s)
or schedule(s) during one or
more periods of production,
(g) Cash bonus with a fixed
royalty rate of not less than
12.5 percent, at the beginning of the lease period, suspension of royalties for a period, volume, or value of production, or depending upon
selected characteristics of
extraction, and with suspensions that may vary based
on the price of production,

Cash bonus,

The highest responsible qualified bidder will pay a royalty
rate of not less than 12.5 percent at the beginning of the
lease period. We will specify the royalty rate for each tract
offered in the Notice of OCS Lease Sale published in the
FEDERAL REGISTER.
We will specify the fixed amount of cash bonus the highest
responsible qualified bidder must pay in the Notice of OCS
Lease Sale published in the FEDERAL REGISTER.
(1) We will calculate the royalty rate the highest responsible
qualified bidder must pay using either:
(i) A sliding-scale formula, which relates the royalty rate to
the adjusted value or volume of production, or
(ii) A schedule that establishes the royalty rate that we will
apply to specified ranges of the adjusted value or volume
of production.
(2) We will determine the adjusted value of production by applying an inflation factor to the actual value of production.
(3) If you are the successful high bidder, your lease will include the sliding-scale formula or schedule and will specify
the lowest and highest royalty rates that will apply.
(4) You will pay a royalty rate of not less than 12.5 percent at
the beginning of the lease period.
(5) We will include the sliding-scale royalty formula or schedule, inflation factor and procedures for making the inflation
adjustment and determining the value or amount of production in the Notice of OCS Lease Sale published in the FEDERAL REGISTER.
(1) If we award you a lease as the highest responsible qualified bidder, you will determine the amount of the net profit
share payment to the United States for each month by multiplying the net profit share base times the net profit share
rate, according to 30 CFR 1220.022. You will calculate the
net profit share base according to 30 CFR 1220.021.
(2) You will pay a net profit share of not less than 30 percent.
(3) We will specify the capital recovery factor, as described in
30 CFR 1220.020, and the net profit share rate, both of
which may vary from tract to tract, in the Notice of OCS
Lease Sale published in the FEDERAL REGISTER.
(1) We may suspend or defer royalty for a period, volume, or
value of production. Notwithstanding suspensions or deferrals, we may impose a minimum royalty. The suspensions
or deferrals may vary based on prices or price changes of
oil and/or gas.
(2) You may pay a royalty rate less than 12.5 percent on production but not less than zero percent.
(3) We will specify the applicable royalty rates(s) and suspension or deferral magnitudes, formulas, or relationships in
the Notice of OCS Lease Sale published in the FEDERAL
REGISTER.
We will base the royalty rate on formula(s) or schedule(s)
specified in the Notice of OCS Lease Sale published in the
FEDERAL REGISTER.

Cash bonus,

Except for periods of royalty suspension, you will pay a fixed
royalty rate of not less than 12.5 percent. If we award to
you a lease under this system, you must calculate the royalty due during the designated period using the rate, formula, or schedule specified in the lease. We will specify
the royalty rate, formula, or schedule in the Notice of OCS
Lease Sale published in the FEDERAL REGISTER.

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§ 560.203

30 CFR Ch. V (7–1–18 Edition)

[76 FR 64623, Oct. 18, 2011. Redesignated at 81
FR 18175, Mar. 30, 2016]

§ 560.203 What conditions apply to the
bidding systems that BOEM uses?
(a) For each of the bidding systems in
§ 560.110, we will include an annual
rental fee. Other fees and provisions
may apply as well. The Notice of OCS
Lease Sale published in the FEDERAL
REGISTER will specify the annual rental
and any other fees the highest responsible qualified bidder must pay and any
other provisions.
(b) If we use any deferment or schedule of payments for the cash bonus bid,
we will specify and include it in the
Notice of OCS Lease Sale published in
the FEDERAL REGISTER.
(c) For the bidding systems listed in
this subpart, if the bid variable is a
cash bonus bid, the highest bid by a
qualified bidder determines the amount
of cash bonus to be paid. We will include the minimum bid level(s) in the
Notice of OCS Lease Sale published in
the FEDERAL REGISTER.
(d) For the bidding systems listed in
this subpart, if the bid variable is the
royalty rate, the highest bid by a
qualified bidder determines the royalty
rate to be paid. We will include the
minimum royalty rate(s) in the Notice
of OCS Lease Sale published in the
FEDERAL REGISTER.
(e) We may, by rule, add to or modify
the bidding systems listed in § 560.110,
according to the procedural requirements of the OCSLA, 43 U.S.C. 1331 et
seq., as amended by Public Law 95–372,
92 Stat. 629.

(b) Production includes volumes allocated to a lease under an approved unit
agreement.
[76 FR 64623, Oct. 18, 2011. Redesignated at 81
FR 18175, Mar. 30, 2016]

§ 560.211 When does an eligible lease
qualify for a royalty suspension volume?
(a) Your eligible lease will receive a
royalty suspension volume as specified
in the Act. The bidding system in
§ 560.110(g) applies.
(b) Your eligible lease may receive a
royalty suspension volume only if your
entire lease is west of 87 degrees, 30
minutes West longitude.
[76 FR 64623, Oct. 18, 2011. Redesignated at 81
FR 18175, Mar. 30, 2016]

§ 560.212 How does BOEM assign and
monitor royalty suspension volumes
for eligible leases?
(a) We have specified the water depth
category for each eligible lease in the
final Notice of OCS Lease Sale Package. The Final Notice of Sale is published in the FEDERAL REGISTER and
the complete Final Notice of OCS
Lease Sale Package is available on the
BOEM Web site. Our determination of
water depth for each lease became final
when we issued the lease.
(b) We have specified in the Notice of
OCS Lease Sale the royalty suspension
volume applicable to each water depth.
The following table shows the royalty
suspension volumes for each eligible
lease in million barrels of oil equivalent (MMBOE):

[76 FR 64623, Oct. 18, 2011. Redesignated at 81
FR 18175, Mar. 30, 2016]

ELIGIBLE LEASES

jstallworth on DSKBBY8HB2PROD with CFR

§ 560.210 How do royalty suspension
volumes apply to eligible leases?
Royalty suspension volumes, as specified in section 304 of the Act, apply to
eligible leases that meet the criteria in
§ 560.113. For purposes of this section
and §§ 560.113 through 560.117:
(a) Any volumes of production that
are not normally royalty-bearing under
the lease or the regulations (e.g., fuel
gas) do not count against royalty suspension volumes; and

Water depth
(1) 200 to less than 400 meters
(2) 400 to less than 800 meters
(3) 800 meters or more ............

Minimum royalty suspension volume
17.5 MMBOE.
52.5 MMBOE.
87.5 MMBOE.

[76 FR 64623, Oct. 18, 2011. Redesignated at 81
FR 18175, Mar. 30, 2016]

§ 560.213 How long will a royalty suspension volume for an eligible lease
be effective?
A royalty suspension volume for an
eligible lease will continue through the
end of the month in which cumulative
production from the leases in a field

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Ocean Energy Management, Interior

§ 560.222

entitled to share the royalty suspension volume reaches that volume or the
lease period ends.
[76 FR 64623, Oct. 18, 2011. Redesignated at 81
FR 18175, Mar. 30, 2016]

§ 560.214 How do I measure natural
gas production on my eligible lease?
You must measure natural gas production on your eligible lease subject
to the royalty suspension volume as
follows: 5.62 thousand cubic feet of natural gas, measured according to 30 CFR
part 250, subpart L, equals one barrel of
oil equivalent.
[76 FR 64623, Oct. 18, 2011. Redesignated at 81
FR 18175, Mar. 30, 2016]

ROYALTY SUSPENSION (RS) LEASES
§ 560.220 How does royalty suspension
apply to leases issued in a sale held
after November 2000?
We may issue leases with suspension
of royalties for a period, volume or
value of production, as authorized in
section 303 of the Act. For purposes of
this section and §§ 560.121 through
560.124:
(a) Any volumes of production that
are not normally royalty-bearing under
the lease or the regulations (e.g., fuel
gas) do not count against royalty suspension volumes; and
(b) Production includes volumes allocated to a lease under an approved unit
agreement.

jstallworth on DSKBBY8HB2PROD with CFR

[76 FR 64623, Oct. 18, 2011. Redesignated at 81
FR 18175, Mar. 30, 2016]

§ 560.221 When does a lease issued in a
sale held after November 2000 get a
royalty suspension?
(a) We will specify any royalty suspension for your RS lease in the Notice
of OCS Lease Sale published in the
FEDERAL REGISTER for the sale in
which you acquire the RS lease and
will repeat it in the lease document. In
addition:
(1) Your RS lease may produce royalty-free the royalty suspension we
specify for your lease, even if the field
to which we assign it is producing.
(2) The royalty suspension we specify
in the Notice of OCS Lease Sale for
your lease does not apply to any other
leases in the field to which we assign
your RS lease.

(b) You may apply for a supplemental
royalty suspension for a project under
30 CFR part 203, if your lease is located:
(1) In the Gulf of Mexico, in water 200
meters or deeper, and wholly west of 87
degrees, 30 minutes West longitude; or
(2) Offshore of Alaska.
(c) Your RS lease retains the royalty
suspension with which we issued it
even if we deny your application for
more relief.
[76 FR 64623, Oct. 18, 2011. Redesignated at 81
FR 18175, Mar. 30, 2016]

§ 560.222 How long will a royalty suspension volume be effective for a
lease issued in a sale held after November 2000?
(a) The royalty suspension volume
for your RS lease will continue
through the end of the month in which
cumulative production from your lease
reaches the applicable royalty suspension volume or the lease period ends.
(b)(1) Notwithstanding any royalty
suspension volume under this subpart,
you must pay royalty at the lease stipulated rate on:
(i) Any oil produced for any period
stipulated in the lease during which
the arithmetic average of the daily
closing price on the New York Mercantile Exchange (NYMEX) for light
sweet crude oil exceeds the applicable
threshold price of $36.39 per barrel, adjusted annually after calendar year
2007 for inflation unless the lease terms
prescribe a different price threshold.
(ii) Any natural gas produced for any
period stipulated in the lease during
which the arithmetic average of the
daily closing price on the NYMEX for
natural gas exceeds the applicable
threshold price of $4.55 per MMBtu, adjusted annually after calendar year
2007 for inflation unless the lease terms
prescribe a different price threshold.
(iii) Determine the threshold price
for any calendar year after 2007 by adjusting the threshold price in the previous year by the percentage that the
implicit price deflator for the gross domestic product, as published by the Department of Commerce, changed during
the calendar year.
(2) You must pay any royalty due
under this paragraph, plus late payment interest under 30 CFR 1218.54, no

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§ 560.223

30 CFR Ch. V (7–1–18 Edition)

later than 90 days after the end of the
period for which royalty is owed.
(3) Any production on which you
must pay royalty under this paragraph
will count toward the production volume
determined
under
§§ 560.120
through 560.124.
(c) If you must pay royalty on any
product (either oil or natural gas) for
any period under paragraph (b) of this
section, you must continue to pay royalty on that product during the next
succeeding period of the same length
until the arithmetic average of the
daily closing NYMEX prices for that
product for that period can be determined. If the arithmetic average of the
daily closing prices for that product for
that period is less than the threshold
price stipulated in the lease, you are
entitled to a credit or refund of royalties paid for that period with interest
under applicable law.
[76 FR 64623, Oct. 18, 2011. Redesignated at 81
FR 18175, Mar. 30, 2016]

§ 560.223 How do I measure natural
gas production for a lease issued in
a sale held after November 2000?
You must measure natural gas production subject to the royalty suspension volume for your lease as follows:
5.62 thousand cubic feet of natural gas,
measured according to 30 CFR part 250,
subpart L, equals one barrel of oil
equivalent.

jstallworth on DSKBBY8HB2PROD with CFR

[76 FR 64623, Oct. 18, 2011. Redesignated at 81
FR 18175, Mar. 30, 2016]

§ 560.224 How will royalty suspension
apply if BOEM assigns a lease
issued in a sale held after November 2000 to a field that has a preAct lease?
(a) We will assign your lease that has
a qualifying well (under 30 CFR part
250, subpart A) to an existing field or
designate a new field and will notify
you and other affected lessees and operating rights holders in the field of
that assignment.
(1) Within 15 days of the final notification, you or any of the other affected
lessees or operating rights holders may
file a written request with the Director
for reconsideration, accompanied by a
Statement of Reasons.
(2) The Director will respond in writing either affirming or reversing the

assignment decision. The Director’s decision is the final action of the Department of the Interior and is not subject
to appeal to the Interior Board of Land
Appeals under 30 CFR part 590 and 43
CFR part 4.
(b) If we establish a royalty suspension volume for a field as a result of an
approved application for royalty relief
submitted for a pre-Act lease under 30
CFR part 203, then:
(1) Royalty-free production from
your RS lease shares from and counts
as part of any royalty suspension volume under § 560.114(d) for the field to
which we assign your lease; and
(2) Your RS lease may continue to
produce royalty-free up to the royalty
suspension we specified for your lease,
even if the field to which we assign
your RS lease has produced all of its
royalty suspension volume.
(c) Your lease may share in a suspension volume larger than the royalty
suspension with which we issued it and
to the extent we grant a larger volume
in response to an application by a preAct lease submitted under 30 CFR part
203. To share in any larger royalty suspension volume, you must file an application described in 30 CFR part 203
(§§ 203.71 and 203.83). In no case will royalty-free production for your RS lease
be less than the royalty suspension
specified for your lease.
[76 FR 64623, Oct. 18, 2011. Redesignated at 81
FR 18175, Mar. 30, 2016]

BIDDING SYSTEM SELECTION CRITERIA
§ 560.230 What criteria does BOEM use
for selecting bidding systems and
bidding system components?
In analyzing the application of one of
the bidding systems listed in § 560.110 to
tracts selected for any OCS lease sale,
we may, at our discretion, consider the
following purposes and policies. We
recognize that each of the purposes and
policies may not be specifically applicable to the selection process for a particular bidding system or tract, or may
present a conflict that we will have to
resolve in the process of bidding system selection. The order of listing does
not denote a ranking.
(a) Providing fair return to the Federal Government;
(b) Increasing competition;

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Ocean Energy Management, Interior

§ 560.500

(c) Ensuring competent and safe operations;
(d) Avoiding undue speculation;
(e) Avoiding unnecessary delays in
exploration, development, and production;
(f) Discovering and recovering oil and
gas;
(g) Developing new oil and gas resources in an efficient and timely manner;
(h) Limiting the administrative burdens on Government and industry; and
(i) Providing an opportunity to experiment with various bidding systems
to enable us to identify those most appropriate for the satisfaction of the objectives of the United States in OCS
lease sales.

Subpart C—Operating Allowances
§ 560.300 Operating allowances.
Notwithstanding any other provision
in the regulations in this part, BOEM
may issue a lease containing an operating allowance when so specified in
the final notice of sale and the lease.
The allowance amount or formula will
be specified in the final notice of sale
and in the lease.
[81 FR 18175, Mar. 10, 2016]

Subpart D [Reserved]
Subpart E—Electronic Filings

jstallworth on DSKBBY8HB2PROD with CFR

SOURCE: 81 FR 18176, Mar. 30, 2016, unless
otherwise noted.

§ 560.500 Electronic
document
and
data transmissions.
(a) BOEM may notify you that it will
allow or request you to submit the following
information
electronically
through BOEM’s secure electronic filing system, through an alternate secure electronic filing system supported
and maintained by the Department, or
through some other electronic filing
system that BOEM has approved for
this purpose:
(1) Any document(s) or information
described in the Qualifications section
of part 556 of this chapter, as specified
in subpart E. Such information would
include, but not be limited to, the official name of the qualifying person, its

legal and business address or addresses,
its legal form and status, and the
names and contact information of a
person or organization authorized to
act on the person’s behalf.
(2) Any document(s) or information
required to obtain BOEM’s approval of
an assignment or sublease, including
any form or instrument that creates or
transfers ownership of a lease interest.
(3) Any document(s) or information
required to obtain BOEM’s approval of
your relinquishment of all, or any aliquot part of your lease, as specified in
§ 556.1101 of this chapter.
(4) Any document(s) creating, transferring or assigning economic interests, as specified in §§ 556.715 and 556.808
of this chapter.
(5) Any document(s) related to a
bond, U.S. Treasury note or other security provided to BOEM, which is required to guarantee your compliance
with terms and conditions of a lease.
(6) Any document(s) or information
necessary to bid for an OCS lease.
(7) Any forms, document(s) or information necessary to determine worst
case oil-spill discharge volume(s), or to
provide evidence demonstrating oil
spill financial responsibility, or to
guarantee such financial responsibility
or to comply with any other requirements of the Oil Spill Financial Responsibility Program, as described in
part 553 of this chapter.
(b) BOEM reserves the right to require the electronic filing of any document(s) or information addressed in
paragraph (a)(5) of this section upon a
90-day notice published in the FEDERAL
REGISTER; if BOEM mandates that you
transmit such document(s) or information electronically, the FEDERAL REGISTER notice will specify the filing details necessary to comply with this
regulation.
(c) In the event BOEM sends documents to you in a secure electronic format, you may either return the document(s) in an electronic format utilizing the same secure transmission
mechanism or print the document(s)
and return them.
(d) BOEM may electronically acknowledge, approve, sign, or execute
any document(s) referenced in this section.

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§ 560.501

30 CFR Ch. V (7–1–18 Edition)

§ 560.501 How long will the confidentiality of electronic document and
data transmissions be maintained?
The confidentiality of any electronically submitted information will be
maintained for the same proprietary
term that would apply to the corresponding non-electronic confidential
submission, pursuant to § 556.104(b) of
this chapter.
§ 560.502 Are electronically filed document transmissions legally binding?
Any document or information referenced in § 560.500 which is submitted
to BOEM through a secure electronic
filing system that is approved by
BOEM will be legally binding, without
the need for a paper copy thereof.

PART 570—NONDISCRIMINATION
IN THE OUTER CONTINENTAL SHELF
Sec.
570.1 Purpose.
570.2 Application of this part.
570.3 Definitions.
570.4 Discrimination prohibited.
570.5 Complaint.
570.6 Process.
570.7 Remedies.
AUTHORITY: 43 U.S.C. 1863.
SOURCE: 76 FR 64623, Oct. 18, 2011, unless
otherwise noted.

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§ 570.1 Purpose.
The purpose of this part is to implement the provisions of section 604 of
the OCSLA of 1978 which provides that
‘‘no person shall, on the grounds of
race, creed, color, national origin, or
sex, be excluded from receiving or participating in any activity, sale, or employment, conducted pursuant to the
provisions of * * * the Outer Continental Shelf Lands Act.’’
§ 570.2 Application of this part.
This part applies to any contract or
subcontract entered into by a lessee or
by a contractor or subcontractor of a
lessee after the effective date of these
regulations to provide goods, services,
facilities, or property in an amount of
$10,000 or more in connection with any
activity related to the exploration for
or development and production of oil,
gas, or other minerals or materials in
the OCS under the Act.

§ 570.3

Definitions.

As used in this part, the following
terms shall have the following meaning:
Contract means any business agreement or arrangement (in which the
parties do not stand in the relationship
of employer and employee) between a
lessee and any person which creates an
obligation to provide goods, services,
facilities, or property.
Lessee means the party authorized by
a lease, grant of right-of-way, or an approved assignment thereof to explore,
develop, produce, or transport oil, gas,
or other minerals or materials in the
OCS pursuant to the Act and this part.
Person means a person or company,
including but not limited to, a corporation, partnership, association, joint
stock venture, trust, mutual fund, or
any receiver, trustee in bankruptcy, or
other official acting in a similar capacity for such company.
Subcontract means any business
agreement or arrangement (in which
the parties do not stand in the relationship of employer and employee) between a lessee’s contractor and any
person other than a lessee that is in
any way related to the performance of
any one or more contracts.
§ 570.4

Discrimination prohibited.

No contract or subcontract to which
this part applies shall be denied to or
withheld from any person on the
grounds of race, creed, color, national
origin, or sex.
§ 570.5

Complaint.

(a) Whenever any person believes
that he or she has been denied a contract or subcontract to which this part
applies on the grounds of race, creed,
color, national origin, or sex, such person may complain of such denial or
withholding to the Regional Director
of the OCS Region in which such action
is alleged to have occurred. Any complaint filed under this part must be
submitted in writing to the appropriate
Regional Director not later than 180
days after the date of the alleged unlawful denial of a contract or subcontract which is the basis of the complaint.

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