| Get a Surety Bond Quote in Seconds Need Insurance give us a call
Surety Bonds for Outer Continental
Shelf Leases
These revisions are always enclosed within the Federal
Register Notice, "Surety Bonds for Outer Continental
Shelf Leases". The revisions to the surety bond
program provide for the following:
1. Launches December 8, 1997, as the
last date for each and every lessee to get abide by
with the bond coverage requirements that are established
in the rule. It was first published in August 27, 1993.
The three tiers prescribed exclusively by the final
rule are:
- $50,000 lease or $300,000 area wide bond for leases
with no MMS-approved operational activity plan or
leases under an MMS-approved operational activity
plan but with no submittal to MMS of assignment or
operational activity plans on or after November 26,
1993.
- A $200,000 lease or $1,000,000 area wide bond for
leases with submittal on or after November 26, 1993,
of a proposed EP, or a significant revision to an
approved EP, or a proposed assignment of a lease with
an approved EP.
- A $500,000 lease or $3,000,000 area wide bond for
leases with submittal on or after November 26, 1993,
of a proposed DPP, or DOCD, or a significant revision
to an approved DPP or DOCD.
2. Co-lessees and operating rights
owners are jointly liable for compliance and they elucidate
MMS's position with our regulations together with the
terms and conditions for non-monetary obligations of
their OCS oil, gas and sulphur lease.
3. Clarifies MMS's position that
an assignor of an OCS lease remains in charge for compliance
with the lease abandonment obligations who are related
with wells drilled.
4. Establishes regulatory frameworks
for acceptance of lease-specific abandonment accounts
and third-party guarantees.
5. Sets a higher, and more realistic
level of bond coverage to be required of the holder
of a G&G exploration permit to drill a deep stratigraphic
test well and sanctions a demand for a supplemental
bond from the holder of a G&G permit or pipeline
right-of-way.
|
