Surety Bond

Status: Original and derived artifacts are available for this document.

Download: pdf

U.S. Department of the Interior
Bureau of Ocean Energy Management

OMB Control No.: 1010-0106
Expiration Date: 00/00/202#

SURETY BOND
CERTIFICATION OF OIL SPILL FINANCIAL RESPONSIBILITY
IN ACCORDANCE WITH THE REQUIREMENTS OF THE OIL POLLUTION ACT OF 1990
(TYPE OR PRINT ALL INFORMATION EXCEPT SIGNATURES)

1. Designated Applicant:
COMPANY LEGAL NAME

BOEM COMPANY NUMBER

2. Surety Company Bond Number:

.

3. The Designated Applicant and Responsible Parties, identified in form(s) BOEM-1017 on file or attached, and
, a company created under the laws of
, and
NAME OF SURETY COMPANY

STATE

authorized to do business in the United States, as Surety (hereinafter called Surety), are held and firmly bound
unto the United States of America and other claimants for damages and removal cost liability under the Oil
Pollution Act of 1990, 33 U.S.C. §§ 2701-2720. (hereinafter, OPA or the Act), in the sum of $
, for
AMOUNT

which payment, we bind ourselves and our heirs, executors, administrators, successors, and assigns, jointly and
severally, under the terms and conditions of Part 553 of Title 30 of the Code of Federal Regulations. This Surety
Bond is hereby provided on behalf of the Responsible Parties to comply with the requirements of 33 U.S.C. §
2716(c) and is offered to satisfy any claim made under OPA.
The liability of the of the Surety will not be discharged by any payment or succession of payments hereunder,
unless and until such payment or payments will amount in the aggregate to the penalty of the Surety Bond. In
no event will the Surety’s obligation hereunder exceed the amount of the penalty, provided that the Surety
furnishes timely written notice to the Bureau of Ocean Energy Management (BOEM) oil spill financial
responsibility (OSRP) program of all claims filed, judgments rendered, and payments made by the Surety under
this Surety Bond.
4. This Surety Bond is effective the _______day of _______, ___________, 12:01 a.m., Eastern Standard Time
NUMBER

MONTH

YEAR

as stated herein and will continue in force until terminated as hereinafter provided.
The Surety Bond evidenced by this Certificate will be applicable only in relation to each incident (as defined by 33
U.S.C. § 2701(14)) that first occurs on or after the effective date of this Surety Bond and on or before the
termination date of this Surety Bond, and will be applicable only in relation to each incident giving rise to claims
under the Act. Under no circumstance will a Surety Bond Certificate that is terminated prior to or takes effect after
the commencement of an incident apply to that incident.
5. The named Surety may at any time terminate this Surety Bond in accordance with the Act and its implementing
regulations by written notice sent by certified mail to the Designated Applicant with copies (plainly indicating the
original notice was sent by certified mail) to any Responsible Party and to the BOEM oil spill financial
responsibility program. This Surety Bond will remain in force until the earlier of: (1) thirty calendar days after
BOEM and the Designated Applicant receive from the named Surety a written notification of an intent to terminate
this Surety Bond; (2) BOEM receives other acceptable OSFR evidence from the Designated Applicant; or (3) all
the Covered Offshore Facilities to which this Surety Bond applies have been permanently and appropriately
abandoned either in compliance with 30 CFR part 250 or equivalent state requirements.

FORM BOEM-1020 (Month 202#) Previous Editions are Obsolete.
In accordance with 5 CFR 1320.10, BOEM is authorized to continue sponsoring this collection of information
while the renewal submission is pending with OMB.
Page 1 of 4

U.S. Department of the Interior
Bureau of Ocean Energy Management

OMB Control No.: 1010-0106
Expiration Date: 00/00/202#

The undersigned agrees that any termination of this Surety Bond will not affect the liability of the named Surety for
any claims that arise from an incident that first occurs on or after the effective date of this Surety Bond and on or
before the effective date of the termination of this Surety Bond.
6. The named Surety agrees that any suit or claim for which the Responsible Party(ies) that are identified in form(s)
BOEM-1017 (on file or attached) may be liable under the Act may be brought directly against the Surety by the
U.S. government or by other claimants when a Responsible Party denies or fails to pay a claim on the basis of
insolvency or a Responsible Party has petitioned for bankruptcy under Title 11 of the U.S. Code. In any such suit
or claim brought against the named Surety, the Surety’s obligations under the Act and its implementing
regulations arising from this Surety Bond are limited to the amount of Surety Bond identified in this instrument.
7. The undersigned further agrees that in defending a claim brought against the Surety, the Surety may only
invoke all rights and defenses that would be available to the Responsible Party under the Act, including that the
incident was caused by the willful misconduct of the Responsible Party.
8. The undersigned Responsible Party further agrees, pursuant to the requirements of 30 CFR 553.15, that it will
notify the BOEM oil spill financial responsibility program in the event that the Responsible Party is no longer able
to maintain evidence of oil spill financial responsibility to the extent stated in section 3 above.
9. Any changes or modifications reflected in this Surety Bond (Form BOEM-1020) apply prospectively only and do not
affect the validity, applicability, or effect of any previous version(s) of the Surety Bond that a named Surety or
Responsible Party may have signed and do not affect claims that the Department of the Interior or other federal
government agencies or entities may have against a named Surety or Responsible Party based on any previous
version(s) of the Surety Bond that a named Surety or Responsible Party may have signed.
10. In the event of any conflict or inconsistency between the following: (1) Form BOEM-1020; and (2) the Act and the Act’s
applicable promulgated regulations; the applicable provisions of the Act and promulgated regulations will prevail.
11. The Designated Applicant must, no later than the first calendar day of the fifth month after the close of the
named Surety’s fiscal year or termination if earlier, submit either a renewal of this Surety Bond or other
acceptable evidence of financial responsibility.

FORM BOEM-1020 (Month 202#) Previous Editions are Obsolete.
In accordance with 5 CFR 1320.10, BOEM is authorized to continue sponsoring this collection of information
while the renewal submission is pending with OMB.
Page 2 of 4

U.S. Department of the Interior
Bureau of Ocean Energy Management

OMB Control No.: 1010-0106
Expiration Date: 00/00/202#

12. In witness whereof, the Designated Applicant and the Surety have executed this instrument on the
day of
,
.
YEAR

MONTH

Designated Applicant:
SIGNATURE OF AUTHORIZED REPRESENTATIVE

NAME OF AUTHORIZED REPRESENTATIVE

TITLE OF AUTHORIZED REPRESENTATIVE

Surety:
COMPANY NAME

ADDRESS

CITY

STATE

ZIP CODE

SIGNATURE OF AUTHORIZED REPRESENTATIVE

NAME OF AUTHORIZED REPRESENTATIVE

TITLE OF AUTHORIZED REPRESENTATIVE

FORM BOEM-1020 (Month 202#) Previous Editions are Obsolete.
In accordance with 5 CFR 1320.10, BOEM is authorized to continue sponsoring this collection of information
while the renewal submission is pending with OMB.
Page 3 of 4

U.S. Department of the Interior
Bureau of Ocean Energy Management

OMB Control No.: 1010-0106
Expiration Date: 00/00/202#

PAPERWORK REDUCTION ACT STATEMENT
BUREAU OF OCEAN ENERGY MANAGEMENT
OIL POLLUTION ACT OF 1990
OIL SPILL FINANCIAL RESPONSIBILITY FOR OFFSHORE FACILITIES
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) requires us to inform you that the Bureau of
Ocean Energy Management (BOEM) collects this information to:
1.

Provide a standard method for establishing eligibility for oil spill financial responsibility (OSFR) for offshore facilities;

2.

Identify and maintain a record of those offshore facilities that have a potential oil spill liability;

3.

Establish and maintain a continuous record, over the liability term specified in Title I of the Oil Pollution Act of 1990, of
financial evidence and instruments established to pay claims for oil spill cleanup and damages resulting from operations
conducted on offshore facilities and the transportation of oil from offshore platforms and wells;

4.

Establish and maintain a continuous record of Responsible Parties, as defined in Title I of the Oil
Pollution Act of 1990, and their agents or Authorized Representatives for oil spill financial responsibility for offshore facilities;
and

5.

Establish and maintain a continuous record, over the liability term specified in Title I of the Oil Pollution Act of 1990, of
persons to contact and U.S. Agents for Service of Process for claims associated with oil spills from offshore facilities.

The BOEM will routinely use the information to:
1.

Ensure compliance of offshore lessees and owners and operators of offshore facilities with Title I of the Oil Pollution Act of
1990;

2

Establish eligibility of applicants for OSFR; and

3. Establish a reference source of names, addresses, and telephone numbers of Responsible Parties for offshore facilities
and their Authorized Representatives and Guarantors for claims associated with oil pollution from designated offshore
facilities.
Responses are mandatory (33 U.S.C. 2716). No confidential or proprietary information is required to be submitted. The BOEM
considers oil spill financial responsibility demonstrations, including supporting audited financial statements, to be public information
open for review under the Freedom of Information Act (5 U.S.C. 552).
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it
displays a currently valid Office of Management and Budget (OMB) Control Number. The public reporting burden for an
application for certification of oil spill financial responsibility is listed below. The burden includes the time for reviewing
instructions, gathering and maintaining data, and completing and reviewing the application. The average burden for this form
and required information that could comprise a submission is 24 hours.

Comments regarding the burden estimate or any other aspect of this form should be directed to the Information Collection
Clearance Officer, Bureau of Ocean Energy Management, 45600 Woodland Road, Sterling, VA 20166.

FORM BOEM-1020 (Month 202#) Previous Editions are Obsolete.
In accordance with 5 CFR 1320.10, BOEM is authorized to continue sponsoring this collection of information
while the renewal submission is pending with OMB.
Page 4 of 4