30 CFR § 585.534
When may BOEM cancel my bond?
July 29, 2020
When your lease or grant ends, your surety(ies) remain(s) responsible, and BOEM will retain any pledged security as shown in the following table:
Open Table
| Bond | The period of liability ends . . . | Your bond will not be released until . . . |
|---|---|---|
| (a) Bonds for commercial leases submitted under §585.515 | When BOEM determines that you have met all of your obligations under the lease | Seven years after the lease ends, or a longer period as necessary to complete any appeals or judicial litigation related to your bond obligation. BOEM will reduce the amount of your bond or return a portion of your security if BOEM determines that you need less than the full amount of the bond to meet any possible future obligations. |
| (b) Supplemental or decommissioning bonds submitted under §585.516 | When BOEM determines that you have met all your decommissioning, site clearance, and other obligations | (1) Seven years after the lease ends, or a longer period as necessary to complete any appeals or judicial litigation related to your bond obligation. BOEM will reduce the amount of your bond or return a portion of your security if BOEM determines that you need less than the full amount of the bond to meet any possible future obligations; and |
| (2) BOEM determines that the potential liability resulting from any undetected noncompliance is not greater than the amount of the lease base bond. | ||
| (c) Bonds submitted under §§585.520 and 585.521 for limited leases, ROW grants, or RUE grants | When BOEM determines that you have met all of your obligations under the limited lease or grant | Seven years after the limited lease, ROW, or RUE grant or a longer period as necessary to complete any appeals or judicial litigation related to your bond obligation. BOEM will reduce the amount of your bond or return a portion of your security if BOEM determines that you need less than the full amount of the bond to meet any possible future obligations. |
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