[Federal Register Volume 88, Number 20 (Tuesday, January 31, 2023)]
[Rules and Regulations]
[Pages 6376-6476]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-00871]



[[Page 6375]]

Vol. 88

Tuesday,

No. 20

January 31, 2023

Part II





Department of the Interior





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Bureau of Safety and Environmental Enforcement





Bureau of Ocean Energy Management





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30 CFR Parts 285, 585, and 586





Reorganization of Title 30--Renewable Energy and Alternate Uses of 
Existing Facilities on the Outer Continental Shelf; Final Rule

  Federal Register / Vol. 88 , No. 20 / Tuesday, January 31, 2023 / 
Rules and Regulations  

[[Page 6376]]


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DEPARTMENT OF THE INTERIOR

Bureau of Safety and Environmental Enforcement

30 CFR Part 285

[Docket No. BSEE-2022-0015; EEEE500000 223E1700D2 ET1SF0000.EAQ000]
RIN 1082-AA03

Bureau of Ocean Energy Management

30 CFR Parts 585 and 586

[Docket No. BOEM-2022-0042]


Reorganization of Title 30--Renewable Energy and Alternate Uses 
of Existing Facilities on the Outer Continental Shelf

AGENCY:  Bureau of Safety and Environmental Enforcement (BSEE) and 
Bureau of Ocean Energy Management (BOEM), Interior.

ACTION: Final rule.

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SUMMARY: This rule of agency organization reassigns responsibilities 
for the administration of certain regulations governing renewable 
energy development and alternate uses of existing facilities on the 
Outer Continental Shelf (OCS), consistent with the Secretary of the 
Interior's orders and the Departmental Manual. This final rule 
transfers the applicable renewable energy Departmental regulations from 
BOEM to BSEE. Furthermore, this final rule reassigns renewable energy 
regulations pertaining to safety, environmental oversight, and 
enforcement from BOEM to BSEE. This rule does not make substantive 
changes to current regulatory requirements and does not impose 
additional regulatory burdens on the public or the regulated community.

DATES: This final rule is effective January 31, 2023. The incorporation 
by reference of certain material listed in the rule is approved by the 
Director of the Federal Register as of January 31, 2023.

FOR FURTHER INFORMATION CONTACT: For questions regarding BSEE's 
provisions under this rule, contact: Dennis Yang, Regulations and 
Standards Branch, BSEE, 45600 Woodland Road, Sterling, VA 20166; email: 
[email protected]; telephone: 713-220-9203. For questions regarding BOEM's 
provisions under this rule, contact: Georgeann Smale, Office of 
Regulations, BOEM, 1849 C Street NW, Mailstop 5243, Washington, DC 
20240; email: [email protected]; telephone: 703-544-9246.

SUPPLEMENTARY INFORMATION: 

Preamble Table of Contents

I. Preamble Glossary of Abbreviations, Terms, and Acronyms
II. Background
    A. Statutory Authority
    B. MMS Reorganization
    C. Need for Rulemaking
III. Overview of the Rule
    A. Final Rulemaking Effective Upon Publication
    B. Reorganization of 30 CFR Parts 285, 585, and 586
    1. Description of the Transfer of Regulations to BSEE
    2. Future Rulemakings
    3. Technical Changes and Corrections
    4. Information Collection and Forms
    5. Incorporation by Reference
    C. Derivation Table for 30 CFR Parts 285, 585, and 586
IV. Procedural Matters
    A. Statutes
    1. Data Quality Act
    2. National Environmental Policy Act
    3. Paperwork Reduction Act
    4. Regulatory Flexibility Act
    5. Congressional Review Act (CRA)
    6. Unfunded Mandates Reform Act
    7. Administrative Procedure Act
    B. Executive Orders
    1. Executive Order 12630--Takings Implication Assessment
    2. Executive Order 12866--Regulatory Planning and Review, and 
Executive Order 13563--Improving Regulation and Regulatory Review
    3. Executive Order 12988--Civil Justice Reform
    4. Executive Order 13132--Federalism
    5. Executive Order 13175--Consultation and Coordination With 
Indian Tribal Governments
    6. Executive Order 13211--Effects on the Nation's Energy Supply
    7. Presidential Memorandum of June 1, 1998, on Regulation 
Clarity

I. Preamble Glossary of Abbreviations, Terms, and Acronyms

    The following are abbreviations, terms, and acronyms used in the 
preamble:

APA Administrative Procedure Act
ASLM Assistant Secretary for Land and Minerals Management
BOEM Bureau of Ocean Energy Management
BSEE Bureau of Safety and Environmental Enforcement
CFR Code of Federal Regulations
COP Construction and Operations Plan
CRA Congressional Review Act
CVA Certified Verification Agent
CZMA Coastal Zone Management Act
DOE Department of Energy
DOI or Department of the Interior Department
EIA Energy Information Administration
ESA Endangered Species Act
FDR Facility Design Report
FERC Federal Energy Regulatory Commission
FIR Fabrication and Installation Report
GAP General Activities Plan
IC Information Collection
MMPA Marine Mammal Protection Act
MMS Minerals Management Service (former DOI agency)
NARA National Archives and Records Administration
NEPA National Environmental Policy Act
OCS Outer Continental Shelf
OCSLA Outer Continental Shelf Lands Act
OIG Office of Inspector General
OMB Office of Management and Budget
ONRR Office of Natural Resources Revenue
Pub. L. Public Law
RIN Regulation Identifier Number
ROCIS Regulatory Information Service Center (RISC) and Office of 
Information & Regulatory Affairs (OIRA) Consolidated Information 
System
ROW Right-of-way
RUE Right-of-use and easement
SAP Site Assessment Plan
Secretary Secretary of the Interior
SMS Safety Management System
Stat. U.S. Statutes at Large
U.S.C. United States Code

II. Background

A. Statutory Authority

    In the Energy Policy Act of 2005 (2005 Act), Congress authorized 
the Secretary to grant OCS leases for renewable energy activities.\1\ 
Specifically, the 2005 Act amended OCSLA to add a new subsection 
8(p).\2\ Under subsection 8(p), the Secretary has the authority to 
issue leases, easements, and ROWs for activities that produce, or that 
support the production, transportation, or transmission of, energy from 
sources other than oil and gas. The 2005 Act also allows the Secretary 
to authorize the use of existing OCS facilities for energy- and marine-
related activities. The Secretary is required to award any lease, ROW, 
or RUE competitively unless the Secretary determines, after public 
notice, that competitive interest does not exist.\3\ The Secretary also 
has authority to issue regulations to implement OCSLA section 8(p).\4\
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    \1\ Public Law 109-58, 119 Stat. 594.
    \2\ OCSLA is codified at 43 U.S.C. 1331 et seq. Subsection 8(p) 
of OCSLA is codified at 43 U.S.C. 1337(p).
    \3\ 43 U.S.C. 1337(p)(3).
    \4\ Id. 1337(p)(8).
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    On March 20, 2006, the Secretary delegated the responsibility for 
regulating OCS renewable energy activities to MMS, the predecessor 
agency to BOEM and BSEE. On April 29, 2009, the Department published 
the final rule establishing MMS's program to grant leases, easements, 
and ROWs for OCS renewable energy activities and for alternate uses of 
existing OCS facilities. The 2009 rule also established the methods for 
sharing certain revenues generated by this program with nearby coastal 
States.

[[Page 6377]]

B. MMS Reorganization

    Between May 19, 2010, and August 29, 2011, Secretary Salazar issued 
Secretary's Order 3299 and two amendments that ultimately divided MMS 
into three separate agencies: BOEM, BSEE, and ONRR. The Secretary 
emphasized the importance of separate and independent safety and 
environmental oversight when testifying before Congress on May 26, 
2010:

    The Deepwater Horizon tragedy and the massive spill have made 
the importance and urgency of a reorganization of this nature ever 
more clear, particularly the creation of a separate and independent 
safety and environmental enforcement entity. We will responsibly and 
thoughtfully move to establish independence and separation for this 
critical mission so that the American people know they have a strong 
and independent organization ensuring that energy companies comply 
with their safety and environmental protection obligations.\5\
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    \5\ Minerals Management Service Reorganization: Special Hearing 
Before the Subcomm. on Dept. of the Interior, Environment & Related 
Agencies of the S. Comm. On Appropriations, S. Hrg. 111-1035, at 12 
(2010) (statement of Ken Salazar, Sec'y of the Interior).

    Pursuant to section 3 of Secretary's Order 3299, Amendment No. 2, 
BOEM ``exercise[s] the conventional (e.g., oil and gas) and renewable 
energy-related management functions of the [MMS] not otherwise 
transferred pursuant to this Order including, but not limited to, 
activities involving resource evaluation, planning, and leasing.'' \6\ 
Under section 4 of Secretary's Order 3299, Amendment No. 2, BSEE 
exercises ``safety and environmental enforcement functions,'' including 
``the authority to inspect, investigate, summon witnesses and produce 
evidence, levy penalties, cancel or suspend activities, and oversee 
safety, response, and removal preparedness.'' \7\ Under section 5 of 
Secretary's Order 3299, Amendment 2, ONRR exercises the royalty and 
revenue management functions of the former MMS, including ``royalty and 
revenue collection, distribution, auditing and compliance, 
investigation and enforcement, and asset management for both onshore 
and offshore activities.'' \8\
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    \6\ Sec'y of the Interior Order 3299, as amended and issued Aug. 
29, 2011, available at https://www.doi.gov/sites/doi.gov/files/elips/documents/3299a2-establishment_of_the_bureau_of_ocean_energy_management_the_bureau_of_safety_and_environmental_enforcement_and_the_office_of_natural_resources_revenue.pdf.
    \7\ Id.
    \8\ Id.
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    Section 4 of Secretary's Order 3299, Amendment 2, assigned the 
renewable energy program to BOEM ``until such time that the [ASLM] 
determines that an increase in activity justifies transferring the 
inspection and enforcement functions to [BSEE].'' \9\ On October 18, 
2011, in connection with the reorganization of the former MMS into BOEM 
and BSEE and the associated redistribution of the existing regulations 
at 30 CFR Chapter II, the offshore renewable energy regulations 
previously located in part 285 were assigned to BOEM and recodified in 
a newly created 30 CFR part 585.\10\
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    \9\ Id. This arrangement was noted in the final rule 
reorganizing and reassigning the former MMS regulations between BOEM 
and BSEE in October 2011. ``At this time, the renewable energy 
program will be managed under BOEM. At a later date, the renewable 
energy program will be reorganized and a determination will be made 
regarding what functions will be administered by which agency.'' 
Reorganization of Title 30, 76 FR 64432, 64434 Table A (Oct. 18, 
2011) (, discussion of then-current part 285).
    \10\ 76 FR 64432 (Oct. 18, 2011).
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C. Need for Rulemaking

    In September 2013, the DOI OIG issued a report supporting the 
policy of independent regulatory oversight and enforcement in the 
renewable energy program and recommending implementation of that policy 
through a transfer of those responsibilities from BOEM to BSEE.\11\ The 
OIG noted that ``allowing the bureau responsible for planning and 
leasing renewable energy projects [i.e., BOEM] to also formulate the 
policies for inspection and enforcement is contrary to the independent 
oversight and separation of duties envisioned in [Secretary's Order 
3299] as originally issued.'' \12\
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    \11\ Office of Inspector Gen., Dep't of Interior, U.S. 
Department of the Interior's Offshore Renewable Energy Program 9 
(2013) (Report No. CR-EV-BOEM-0001-2013).
    \12\ Id.
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    In December 2020, pursuant to Secretary's Order 3299, Amendment 2, 
section 4, the Principal Deputy Assistant Secretary for Land and 
Minerals Management, acting with the authority of the Assistant 
Secretary for Land and Minerals Management, determined that OCS 
renewable energy activities have ``reached the threshold envisioned by 
SO 3299, as amended.'' The Secretary has since executed the necessary 
redelegation of authorities through the Departmental Manual.\13\ This 
rulemaking reassigns certain regulations from BOEM to BSEE consistent 
with the authorities identified in the Departmental Manual, and to 
further Secretary's Order 3299 Amendment 2 and the Assistant 
Secretary's direction to ``transfer . . . the safety and environmental 
oversight and compliance functions, including inspection and 
enforcement, for the Department's Offshore Renewable Energy Program 
from BOEM to BSEE.''
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    \13\ DOI Departmental Manual 218 DM 1, as amended and issued 
Sept. 14, 2022, available at chrome-extension://
efaidnbmnnnibpcajpcglclefindmkaj/https://www.doi.gov/sites/doi.gov/files/elips/documents/218-dm-1_2.pdf.
    DOI Departmental Manual 219 DM 1, as amended and issued Sept. 
14, 2022, available at chrome-extension://
efaidnbmnnnibpcajpcglclefindmkaj/https://www.doi.gov/sites/doi.gov/files/elips/documents/219-dm-1_0.pdf
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III. Overview of the Rule

A. Final Rulemaking Effective Upon Publication

    This rule reassigns existing regulations governing safety and 
environmental oversight and enforcement of OCS renewable energy 
activities from BOEM to BSEE. This rulemaking is neither substantive 
nor controversial because it merely reorganizes provisions in the Code 
of Federal Regulations and, therefore, does not affect the legal 
rights, obligations, and interests of any interested parties.
    This rule implements Secretary's Order 3299--which reflects the 
Secretary's prudent and considered policy judgment that independent 
oversight and enforcement is in the national interest to best address 
the organizational concerns highlighted by the Deepwater Horizon 
incident--and revisions made to the Departmental Manual implementing 
that direction. Specifically, this rule transfers existing safety and 
environmental oversight and enforcement regulations governing OCS 
renewable energy activities from 30 CFR part 585, under BOEM's purview, 
to 30 CFR part 285, under BSEE's purview. This reorganization parallels 
the bureaus' oversight of oil and gas activities. This transfer 
includes a reassignment of authority to: oversee facility design, 
fabrication, installation, and safety management systems; ensure the 
safety of operations, including inspection programs and incident 
reporting and investigations; enforce compliance with all applicable 
safety, environmental, and other laws and regulations through 
enforcement actions (such as noncompliance notices, cessation orders, 
and lease suspensions); and oversee decommissioning activities. This 
rule also moves certain sections pertaining to Alternate Use RUEs from 
30 CFR part 585 to a new 30 CFR part 586.
    This rule is a ``rule[ ] of agency organization, procedure, or 
practice,'' 5 U.S.C. 553(b)(A), because it implements the Department's 
reassignment of responsibility for administering existing regulatory 
provisions from BOEM to BSEE. This rule reorganizes current regulations 
to be consistent with Departmental delegations without making 
substantive changes to those

[[Page 6378]]

regulations or modifying substantive rights or interests. Nor does the 
rule impose new rights or duties or change the legal status of 
regulated parties. No statute requires notice or hearing for this rule. 
Therefore, this rule is exempt from notice-and-comment rulemaking 
requirements under 5 U.S.C. 553(b)(A). Additionally, for the same 
reasons, the Department finds for good cause shown that notice and 
comment on this rule are unnecessary and contrary to the public 
interest under 5 U.S.C. 553(b)(B). Further, because this rule makes no 
changes to the legal obligations or rights of nongovernmental entities, 
the relevant responsibilities have already been delegated to BSEE, and 
it is in the public interest for the regulations to reflect that 
delegation to provide clarity, the Department further finds that good 
cause exists to make this rule effective upon publication in the 
Federal Register per 5 U.S.C. 553(d)(3).\14\
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    \14\ BOEM and BSEE intend to issue further guidance to help 
industry to understand the transfer of functions reflected in this 
rule.
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B. Reorganization of 30 CFR Parts 285 and 585

1. Description of the Transfer of Regulations to BSEE
    This rule transfers existing regulations governing safety and 
environmental oversight and enforcement for OCS renewable energy 
activities from BOEM's responsibility to BSEE's responsibility by 
moving the relevant BOEM provisions, currently in 30 CFR part 585, to 
become BSEE provisions in 30 CFR part 285.
    Among the regulations transferred to BSEE through this rulemaking 
are provisions related to oversight of facility design, fabrication, 
installation, and safety management systems; ensuring the safety of 
operations, including inspection programs and incident reporting and 
investigations; enforcing compliance with all applicable safety, 
environmental, and other laws and regulations through enforcement 
actions (such as noncompliance notices, cessation orders, and certain 
lease suspensions); and overseeing decommissioning activities.
    Renewable energy regulations transferred to BSEE's responsibility 
include enforcement provisions under the existing part 585 Subpart D, 
various information submittal requirements under Subpart F, as well as 
provisions governing activities conducted under an approved plan, 
including the design, construction, operation, and decommissioning of 
facilities under Subparts G, H, and I. The requirements for and 
standards of review regarding the Facility Design Report (FDR) and the 
Fabrication and Installation Report (FIR) are unchanged: the FDR and 
FIR will continue to be evaluated for consistency with the approved 
Plan and applicable engineering standards.
    BOEM will continue to identify areas that may be leased and 
authorize renewable energy development on the OCS, as well as alternate 
uses of existing OCS facilities. BOEM retains its authority to 
administer the renewable energy regulations pertaining to the issuance 
and administration of leases and grants, the requirements of payments 
and financial assurance, and plan review and approval, approval with 
modifications, or disapproval. Because oversight over environmental 
requirements for BOEM-approved plans has been retained by BOEM, these 
requirements were moved to Subpart F, from Subpart H, and renumbered 
accordingly. As a result, the renewable energy regulations that BOEM 
administers will now end with Subpart F, the title of which has been 
changed to ``Plan Requirements.''
    In addition, because the existing regulations in part 585 Subpart J 
relate to the alternate uses of existing facilities on the OCS, which 
require the existence of a previously or currently authorized facility, 
these regulations have been moved into a separate part 586 to enhance 
clarity.
    This rule also reallocates the regulations pertaining to 
suspensions. In the context of the renewable energy regulations, a 
lease or grant suspension as described in Subpart D of part 585 is used 
primarily to manage the running of the lease term, not to address 
noncompliance or respond to the kind of operational concerns that 
predominate lease suspensions in the conventional energy context. 
Therefore, consistent with BOEM's role as the leasing agency, BOEM will 
retain the authority to grant a suspension of a lease or grant if the 
lessee or grantee requests one. BOEM will also retain the authority to 
order a lease or grant suspension to comply with a judicial decree or 
when a suspension is necessary for reasons of National security or 
defense.
    However, in keeping with BSEE's mission, BSEE is assigned the 
regulations for ordering a lease or grant suspension when continued 
activities pose an imminent threat of serious or irreparable harm or 
damage to natural resources; life; property; the marine, coastal, or 
human environment; or sites, structures, or objects of historical or 
archaeological significance. BSEE may also order a suspension when 
necessary to comply with a judicial decree. Under the rule, BSEE is 
also assigned the regulations relating to issuance of cessation orders 
to address noncompliance on the part of the grantee or lessee.
    Regarding suspensions for Alternate Use RUEs, the Department does 
not suspend such grants upon the grantee's request, but only by order. 
BOEM will retain authority to order suspensions required for National 
security, and BSEE will assume authority to order suspensions to 
address a threat of harm from continued operations. Either bureau may 
order a suspension when necessary to comply with a judicial decree. 
BSEE may order a suspension of an Alternate Use RUE when operation of 
the existing OCS facility has been suspended or temporarily prohibited 
and BSEE has determined that continued activities under the Alternate 
Use RUE are unsafe or cause undue interference with the original OCSLA-
approved activity.
    The Secretary of the Interior retains authority to cancel any 
renewable energy lease or grant for reasons outlined in the existing 
regulations under Subpart D. Because either BOEM or BSEE may have 
information relevant to the Secretary's decision to cancel a lease or 
grant, this rule allocates to both BOEM and BSEE responsibility under 
the regulations related to bureau recommendations for Secretarial 
cancellation of a lease or grant. Similarly, both bureaus retain 
responsibility under the regulations related to cancellation of an 
Alternate Use RUE.
    Enforcement functions transferred to BSEE in the new part 285 
Subpart D, entitled Lease and Grant Administration, include authority 
to issue notices of noncompliance and cessation orders and to pursue 
civil penalties and recommend criminal penalties. BSEE assumes 
authority for oversight and enforcement of the design, construction, 
operation, and decommissioning phases of offshore wind development, as 
well as enforcement of requirements related to Alternate Use RUEs. BOEM 
remains responsible for ensuring requirements are met during the 
leasing, site characterization, and plan review stages, as well as for 
ensuring financial assurance requirements are met. BOEM has relocated 
its enforcement authority to Subpart A, General Provisions, from part 
585 Subpart D, Lease and Grant Administration, to focus the remaining 
Subpart D provisions on lease and grant administrative actions that 
include, but are not limited to, designations of operator, assignments, 
renewals,

[[Page 6379]]

relinquishments, contractions, and terminations.
2. Future Rules
    The Department has initiated additional rulemaking related to OCS 
renewable energy development. In the Renewable Energy Modernization 
Rule, the Department has proposed updates to the regulations based on 
the experience it has gained over the last decade of managing offshore 
wind energy development on the OCS. In addition, the Department has 
begun work on a rule (Renewable Energy Safety and Assurance Rule, RIN 
Number 1014-AA59) to modernize, streamline, and clarify certain 
provisions that this rule is moving to part 285. The reorganization of 
the renewable energy regulations in this rule will be reflected in the 
regulatory structure of any future final OCS renewable energy 
development rule. Any final rule that includes revisions to both part 
285 and part 585 regulations will reflect the division of authorities 
among BOEM and BSEE.
3. Technical Changes and Corrections
    In addition to the organizational changes noted in the derivation 
table, this rule makes minor technical changes and corrections 
necessitated by the reassignment of responsibilities and makes non-
substantive corrections to previous errors. The substantive regulatory 
requirements are not changed. These technical changes and corrections 
generally fall under the following categories:
    [rtarr8] Updated cross-references to reflect the reorganized 
regulations and the division of responsibilities between BOEM and BSEE.
    [rtarr8] Changed references from BOEM to BSEE as applicable.
    [rtarr8] Changed references from ``subchapter'' to ``part'' where 
appropriate.
    [rtarr8] Corrected spelling and grammar.
    [rtarr8] Changed physical and website addresses.
    [rtarr8] Updated organizational titles.
    [rtarr8] Replaced ``BOEM'' with ``ONRR'' in provisions related to 
lease and grant payments to reflect that ONRR is the correct payee for 
lease and grant payments.
4. Information Collection and Forms
    This rule does not affect the information collection burdens on the 
regulated community other than redirecting the submittal of certain 
required reports to BSEE rather than to BOEM. BSEE expects that OMB 
will issue an IC control number to BSEE shortly after publication of 
this rule. See the analysis and burden table infra Section IV.3, 
Paperwork Reduction Act. BOEM continues to use its current renewable 
energy information collection forms previously approved by OMB; those 
forms are unchanged by this rule. Presently, BSEE is not issuing new 
forms to manage the reporting requirements reassigned to it, though it 
may in the future.
5. Incorporation by Reference
    This rule transfers one regulation that incorporates a document by 
reference from the former part 585 to the new part 285. Under the rules 
of the Office of the Federal Register, material incorporated by 
reference in a rule published in the Federal Register is approved by 
the Director of the Federal Register for a specific section in that 
rule. Consequently, transferring a regulation that incorporates a 
document by reference from the existing part 585 to the new part 285 
required that BSEE request a new approval to incorporate the document 
by reference. Following the submittal of BSEE's request, approval to 
incorporate this document by reference in the new part 285 will be made 
effective by the Director of the Federal Register as of January 31, 
2023. The document incorporated by reference in part 285 is:

    API RP 2A-WSD, Recommended Practice for Planning, Designing and 
Constructing Fixed Offshore Platforms--Working Stress Design; 
Twenty-first Edition, December 2000; Errata and Supplement 1, 
December 2002; Errata and Supplement 2, September 2005; Errata and 
Supplement 3, October 2007; Product No. G2AWSD.

    The American Petroleum Institute (API) published this document, 
which outlines best practices for the design and construction of new 
fixed offshore platforms and for the relocation of existing platforms. 
The reference to the twenty-first edition of this document is retained 
in this rule to avoid any substantive effect on the regulated community 
that might arise if BSEE were to incorporate the newer twenty-second 
edition. BSEE may update the regulations to incorporate newer editions 
of the documents incorporated by reference in a future rulemaking.
    The recommended practices described in this document are legally 
binding to the extent the regulatory text incorporates relevant 
material. BSEE will refer to this document to hold lessees, grantees, 
operators, and other regulated parties accountable for complying with 
the material incorporated by reference in the regulations.
    This document is available for free viewing online by visiting 
https://publications.api.org. Once there, either log-in or create a new 
account, accept the terms and conditions, click ``Browse read only 
documents now,'' and select ``Exploration and Production.'' RP 2A-WSD 
should be one of the documents listed. Hardcopies and printable digital 
versions are available for purchase at www.api.org/publications-standards-and-statistics/publications/government-cited-safety-documents. Additionally, the document may be reviewed at BSEE's office, 
45600 Woodland Road, Sterling, Virginia 20166, phone: 703-787-1665.
    Though the same API document is incorporated in the regulation 
transferred from the former Sec.  585.115 to the new Sec.  285.115, the 
regulatory text differs between the two sections. The Office of the 
Federal Register mandated that the language introduced to part 285 
conform to its formatting and content requirements; part 585 had been 
exempted previously. The formatting and language changes do not affect 
the substance of the regulatory requirement.
    Under this rulemaking, BOEM does not incorporate by reference any 
material into part 585. BOEM may decide in the future to incorporate 
material by reference through notice-and-comment rulemaking as 
appropriate. Section 585.115 is reserved in this rulemaking for that 
purpose.

C. Derivation Table for 30 CFR Parts 285, 585, and 586

[[Page 6380]]



                        Table A--Derivation Table
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 BSEE Part 285 section  BOEM Part 585 section        Description of
     (new section)        (existing section)      reorganized sections
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                      Subpart A--General Provisions
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The general regulatory requirements in this subpart are relevant to both
 BOEM and BSEE. Between the two parts, subpart A includes some sections
 that are identical, some that are similar, and others that are unique
 to one bureau, as explained below. Subpart A in both the BOEM and BSEE
 parts refers to a ``BOEM lease.''
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285.100 Authority       585.100 Authority      This section remains in
                                                part 585, the OCSLA
                                                authority is updated and
                                                limited to the renewable
                                                energy program. The full
                                                authority is now at Sec.
                                                  285.100 in part 285.
285.101 What is the     585.101 What is the    In part 585, references
 purpose of this part?   purpose of this        to the alternate use
                         part?                  RUEs are removed.
                                                Existing paragraphs (b)
                                                and (c) of Sec.
                                                585.101 are included in
                                                Sec.   285.101. The
                                                paragraphs are
                                                renumbered accordingly.
285.102 What are        585.102 What are       This section remains in
 BSEE's                  BOEM's                 part 585. In part 285,
 responsibilities        responsibilities       paragraphs (a)(8)-(11)
 under this part?        under this part?       and (e) of Sec.
                                                585.102 are not included
                                                in Sec.   285.102. The
                                                paragraphs are
                                                renumbered accordingly.
285.103 When may BSEE   585.103 When may BOEM  This section remains in
 prescribe or approve    prescribe or approve   existing part 585 and is
 departures from these   departures from        included in part 285.
 regulations?            these regulations?
285.104 [Reserved]      585.104 Do I need a    This section remains in
                         BOEM lease or other    part 585 only. Section
                         authorization to       285.104 is reserved in
                         produce or support     part 285.
                         the production of
                         electricity or other
                         energy product from
                         a renewable energy
                         resource on the OCS?
285.105 What are my     585.105 What are my    This section remains in
 responsibilities        responsibilities       part 585 and is included
 under this part?        under this part?       in part 285.
285.106 [Reserved]      585.106 Who can hold   This section is replaced
                         a lease or grant       with a new Sec.
                         under this part?       585.106 What happens if
                                                I fail to comply with
                                                this part?, formerly
                                                numbered Sec.   585.400.
                                                In the new 585.106,
                                                paragraph (d) of 585.400
                                                is modified by replacing
                                                ``BOEM'' with ``BSEE,''
                                                paragraph (e) of 585.400
                                                is omitted, and the
                                                remaining paragraphs are
                                                renumbered accordingly.
                                                Existing Sec.   585.106
                                                is renumbered to
                                                585.107. Section 285.106
                                                is reserved in part 285.
285.107 [Reserved]      585.107 How do I show  This section is
                         that I am qualified    renumbered to 585.108.
                         to be a lessee or      Section 285.107 is
                         grant holder?          reserved in part 285.
285.108 [Reserved]      585.108 When must I    This section is
                         notify BOEM if an      renumbered to 585.109.
                         action has been        Section 285.108 is
                         filed alleging that    reserved in part 285.
                         I am insolvent or
                         bankrupt?
285.109 [Reserved]      585.109 When must I    This section is
                         notify BOEM of         renumbered to 585.110.
                         mergers, name          Section 285.109 is
                         changes, or changes    reserved in part 285.
                         of business form?
285.110 How do I        585.110 How do I       This section is
 submit applications,    submit plans,          renumbered to 585.111
 reports, or notices     applications, or       and is included in part
 required by this        notices required by    285.
 part?                   this part?
285.111 When and how    585.111 When and how   This section is
 does BSEE charge me     does BOEM charge me    renumbered to 585.112
 processing fees on a    processing fees on a   and is included in part
 case-by-case basis?     case-by-case basis?    285.
285.112 Definitions     585.112 Definitions    This section is
                                                renumbered to 585.113
                                                and is included in part
                                                285. In the new 585.113,
                                                definitions related to
                                                Alternate Use RUEs were
                                                moved to part 586.113
                                                Definitions.
285.113 How will data   585.113 How will data  This section is
 and information         and information        renumbered to 585.114
 obtained by BSEE        obtained by BOEM       and is included in part
 under this part be      under this part be     285.
 disclosed to the        disclosed to the
 public?                 public?
285.114 Paperwork       585.114 Paperwork      This section is
 Reduction Act           Reduction Act          renumbered to 585.115
 statements--informati   statements--informat   and is included in part
 on collection           ion collection         285.
285.115 Documents       585.115 Documents      The content of existing
 incorporated by         incorporated by        585.115 is removed from
 reference               reference              part 585 and moved to
                                                285.115. The revisions
                                                made to conform to the
                                                Office of the Federal
                                                Register requirements
                                                result in no substantive
                                                changes.

[[Page 6381]]

 
285.116 Requests for    585.116 Requests for   This section remains in
 information on the      information on the     part 585.116 and is
 state of the offshore   state of the           included in part 285.
 renewable energy        offshore renewable     Paragraph (b) of
 industry                energy industry        existing 585.116 was not
                                                moved to 285.116. The
                                                paragraphs in Sec.
                                                285.116 are renumbered
                                                accordingly.
285.117 [Reserved]      585.117 [Reserved]     This section remains
                                                reserved in part 585 and
                                                is included as reserved
                                                in part 285.
285.118 What are my     585.118 What are my    This section remains in
 appeal rights?          appeal rights?         part 585 and is included
                                                in part 285. Only
                                                paragraphs (a) and (b)
                                                are moved to Sec.
                                                285.118.
------------------------------------------------------------------------
           Subpart B--Issuance of OCS Renewable Energy Leases
------------------------------------------------------------------------
The regulatory requirements in this subpart are administered by BOEM;
 therefore, the subpart remains in part 585 only. Subpart B is reserved
 in part 285.
------------------------------------------------------------------------
                        General Lease Information
------------------------------------------------------------------------
                        585.200 What rights    This section remains in
                         are granted with a     part 585 only.
                         lease issued under
                         this part?
------------------------------------------------------------------------
                        585.201 How will BOEM  This section remains in
                         issue leases?          part 585 only.
                        585.202 What types of  This section remains in
                         leases will BOEM       part 585 only.
                         issue?
                        585.203 With whom      This section remains in
                         will BOEM consult      part 585 only.
                         before issuance of a
                         lease?
                        585.204 What areas     This section remains in
                         are available for      part 585 only.
                         leasing
                         consideration?
                        585.205 How will       This section remains in
                         leases be mapped?      part 585 only.
                        585.206 What is the    This section remains in
                         lease size?            part 585 only.
                        585.207-585.209        These sections remain
                         [Reserved]             reserved in part 585.
------------------------------------------------------------------------
                        Competitive Lease Process
------------------------------------------------------------------------
                        585.210 How does BOEM  This section remains in
                         initiate the           part 585 only.
                         competitive leasing
                         process?
                        585.211 What is the    This section remains in
                         process for            part 585 only.
                         competitive issuance
                         of leases?
                        585.212 What is the    This section remains in
                         process BOEM will      part 585 only.
                         follow if there is
                         reason to believe
                         that competitors
                         have withdrawn
                         before the Final
                         Sale Notice is
                         issued?
                        585.213 What must I    This section remains in
                         submit in response     part 585 only.
                         to a Request for
                         Interest or a Call
                         for Information and
                         Nominations?
                        585.214 What will      This section remains in
                         BOEM do with           part 585 only.
                         information from the
                         Requests for
                         Information or Calls
                         for Information and
                         Nominations?
                        585.215 What areas     This section remains in
                         will BOEM offer in a   part 585 only.
                         lease sale?
                        585.216 What           This section remains in
                         information will       part 585 only.
                         BOEM publish in the
                         Proposed Sale Notice
                         and Final Sale
                         Notice?
                        585.217-585.219        These sections remain
                         [Reserved]             reserved in part 585.
------------------------------------------------------------------------
                     Competitive Lease Award Process
------------------------------------------------------------------------
                        585.220 What auction   This section remains in
                         format may BOEM use    part 585 only.
                         in a lease sale?
                        585.221 What bidding   This section remains in
                         systems may BOEM use   part 585 only.
                         for commercial
                         leases and limited
                         leases?

[[Page 6382]]

 
                        585.222 What does      This section remains in
                         BOEM do with my bid?   part 585 only.
                        585.223 What does      This section remains in
                         BOEM do if there is    part 585 only.
                         a tie for the
                         highest bid?
                        585.224 What happens   This section remains in
                         if BOEM accepts my     part 585 only.
                         bid?
                        585.225 What happens   This section remains in
                         if my bid is           part 585 only.
                         rejected, and what
                         are my appeal
                         rights?
                        585.226-585.229        These sections remain
                         [Reserved]             reserved in part 585.
------------------------------------------------------------------------
                   Noncompetitive Lease Award Process
------------------------------------------------------------------------
                        585.230 May I request  This section remains in
                         a lease if there is    part 585 only.
                         no Call?
                        585.231 How will BOEM  This section remains in
                         process my             part 585 only.
                         unsolicited request
                         for a noncompetitive
                         lease?
                        585.232 May I acquire  This section remains in
                         a lease                part 585 only.
                         noncompetitively
                         after responding to
                         a Request for
                         Interest or Call for
                         Information and
                         Nominations?
                        585.233 and 585.234    These sections remain
                         [Reserved]             reserved in part 585.
------------------------------------------------------------------------
                   Commercial and Limited Lease Terms
------------------------------------------------------------------------
                        585.235 If I have a    This section remains in
                         commercial lease,      part 585 only.
                         how long will my
                         lease remain in
                         effect?
                        585.236 If I have a    This section remains in
                         limited lease, how     part 585 only.
                         long will my lease
                         remain in effect?
                        585.237, What is the   This section remains in
                         effective date of a    part 585 only.
                         lease?
                        585.238, Are there     This section is
                         any other renewable    renumbered to Sec.
                         energy research        585.239 and replaced
                         activities that will   with Sec.   585.238 May
                         be allowed on the      I develop my commercial
                         OCS?                   lease in phases?,
                                                formerly 585.629 May I
                                                develop my lease in
                                                phases?
------------------------------------------------------------------------
   Subpart C--Rights-of-Way (ROW) and Rights-of-Use and Easement (RUE)
                 Grants for Renewable Energy Activities
------------------------------------------------------------------------
The regulatory requirements related to ROW grants and RUE grants in this
 subpart are administered by BOEM and remain in part 585 only. Subpart C
 is reserved in part 285.
------------------------------------------------------------------------
                        ROW Grants and RUE Grants
------------------------------------------------------------------------
                        585.300 What types of  This section remains in
                         activities are         part 585 only.
                         authorized by ROW
                         grants and RUE
                         grants issued under
                         this part?
                        585.301 What do ROW    This section remains in
                         grants and RUE         part 585 only.
                         grants include?
                        585.302 What are the   This section remains in
                         general requirements   part 585 only.
                         for ROW grant and
                         RUE grant holders?
                        585.303 How long will  This section remains in
                         my ROW grant or RUE    part 585 only.
                         grant remain in
                         effect?
                        585.304 [Reserved]     This section remains
                                                reserved in part 585.
------------------------------------------------------------------------
                   Obtaining ROW Grants and RUE Grants
------------------------------------------------------------------------
                        585.305 How do I       This section remains in
                         request a ROW grant    part 585 only.
                         or RUE grant?

[[Page 6383]]

 
                        585.306 What action    This section remains in
                         will BOEM take on my   part 585 only.
                         request?
                        585.307 How will BOEM  This section remains in
                         determine whether      part 585 only.
                         competitive interest
                         exists for ROW
                         grants and RUE
                         grants?
                        585.308 How will BOEM  This section remains in
                         conduct an auction     part 585 only.
                         for ROW grants and
                         RUE grants?
                        585.309 When will      This section remains in
                         BOEM issue a           part 585 only.
                         noncompetitive ROW
                         grant or RUE grant?
                        585.310 What is the    This section remains in
                         effective date of a    part 585 only.
                         ROW grant or RUE
                         grant?
                        585.311-585.314        These sections remain
                         [Reserved]             reserved in part 585.
------------------------------------------------------------------------
          Financial Requirements for ROW Grants and RUE Grants
------------------------------------------------------------------------
                        585.315 What deposits  This section remains in
                         are required for a     part 585 only.
                         competitive ROW
                         grant or RUE grant?
                        585.316 What payments  This section remains in
                         are required for ROW   part 585 only. The
                         grants or RUE          reference to BOEM in
                         grants?                subparagraph (a) is
                                                changed to ONRR, to
                                                reflect the fact that
                                                bid payments are
                                                submitted to ONRR rather
                                                than BOEM.
------------------------------------------------------------------------
          Subpart D--Lease and Grant Administration (Part 585)
          Subpart D--Lease and Grant Administration (Part 285)
------------------------------------------------------------------------
 
Some regulatory requirements in subpart D are relevant to both BOEM and
 BSEE; thus, they appear in both parts. Subpart D is entitled, ``Lease
 and Grant Administration'' in both part 285 and part 585.
------------------------------------------------------------------------
                              Noncompliance
------------------------------------------------------------------------
 
 The phrase ``and Cessation Orders'' is removed in part 285. The heading
 ``Noncompliance and Cessation Orders'' is removed in part 585. A new
 undesignated center heading ``Cessation Orders'' is added before Sec.
 285.401 only.)
------------------------------------------------------------------------
285.400 What happens    585.400 What happens   This part is included in
 if I fail to comply     if I fail to comply    part 285. In part 585,
 with this part?         with this part?        this section is removed
                                                from subpart D and moved
                                                to subpart A as 585.106,
                                                paragraph (d) is
                                                modified by replacing
                                                ``BOEM'' with ``BSEE'',
                                                paragraph (e) of
                                                existing 585.400 is not
                                                included, and the
                                                paragraphs are
                                                renumbered accordingly.
------------------------------------------------------------------------
                            Cessation Orders
------------------------------------------------------------------------
 
285.401 When may BSEE   585.401 When may BOEM  This section is removed
 issue a cessation       issue a cessation      and reserved in part 585
 order?                  order?                 and is included in part
                                                285.
285.402 What is the     585.402 What is the    This section is removed
 effect of a cessation   effect of a            and reserved in part 585
 order?                  cessation order?       and is included in part
                                                285.
285.403 and 285.404     585.403 and 585.404    These sections remain
 [Reserved]              [Reserved]             reserved in part 585 and
                                                are included as reserved
                                                in part 285.
------------------------------------------------------------------------
      Responsibility for Fulfilling Obligations (used in part 285)
------------------------------------------------------------------------
               Designation of Operator (used in part 585)
------------------------------------------------------------------------
285.405 [Reserved]      585.405 How do I       This section remains in
                         designate an           part 585 and is included
                         operator?              as reserved in part 285.

[[Page 6384]]

 
285.406 Who is          585.406 Who is         This section remains in
 responsible for         responsible for        part 585 and is included
 fulfilling lease and    fulfilling lease and   in part 285. Existing
 grant obligations?      grant obligations?     paragraph (b) is
                                                modified in Sec.
                                                285.406 by replacing
                                                ``BOEM'' with ``BSEE.''
285.407 [Reserved]      585.407 [Reserved]     This section remains
                                                reserved in part 585 and
                                                is included as reserved
                                                in part 285.
------------------------------------------------------------------------
                        Lease or Grant Assignment
------------------------------------------------------------------------
285.408 [Reserved]      585.408 May I assign   This section remains in
                         my lease or grant      part 585 and is included
                         interest?              as reserved in part 285.
285.409 [Reserved]      585.409 How do I       This section remains in
                         request approval of    part 585 and is included
                         a lease or grant       as reserved in part 285.
                         assignment?
285.410 [Reserved]      585.410 How does an    This section remains in
                         assignment affect      part 585 and is included
                         the assignor's         as reserved in part 285.
                         liability?
285.411 [Reserved]      585.411 How does an    This section remains in
                         assignment affect      part 585 and is included
                         the assignee's         as reserved in part 285.
                         liability?
285.412-285.414         585.412-585.414        These sections remain
 [Reserved]              [Reserved]             reserved in part 585 and
                                                are included as reserved
                                                in part 285.
------------------------------------------------------------------------
                        Lease or Grant Suspension
------------------------------------------------------------------------
285.415 What is a       585.415 What is a      This section remains in
 lease or grant          lease or grant         part 585 and is included
 suspension?             suspension?            in part 285.
285.416 [Reserved]      585.416 How do I       This section remains in
                         request a lease or     part 585 and is included
                         grant suspension?      as reserved in part 285.
285.417 When may BSEE   585.417 When may BOEM  This section remains in
 order a suspension?     order a suspension?    part 585 and is included
                                                in part 285. Section
                                                585.417 is revised to
                                                combine only existing
                                                paragraphs (a)(1) and
                                                (a)(3) into a single
                                                paragraph. Section
                                                285.417 includes similar
                                                content from current
                                                585.417 but combines
                                                only existing paragraphs
                                                (a)(1) and (a)(2) of
                                                Sec.   585.417 into a
                                                single paragraph.
285.418 How will BSEE   585.418 How will BOEM  This section remains in
 issue a suspension?     issue a suspension?    part 585 and is included
                                                in part 285.
285.419 What are my     585.419 What are my    This section remains in
 immediate               immediate              part 585 and is included
 responsibilities if I   responsibilities if    in part 285.
 receive a suspension    I receive a
 order?                  suspension order?
285.420 What effect     585.420 What effect    This section remains in
 does a suspension       does a suspension      part 585 and is included
 order have on my        order have on my       in part 285. Only
 payments?               payments?              existing paragraph (c)
                                                is included in part 285.
285.421 How long will   585.421 How long will  This section remains in
 a suspension be in      a suspension be in     part 585 and is included
 effect?                 effect?                in part 285.
285.422-285.424         585.422- 585.424       Existing section 585.437
 [Reserved]              [Reserved]             is moved to Sec.
                                                585.422 and is included
                                                under heading Lease or
                                                Grant Cancellation.
                                                Sections 585.423 and
                                                585.424 remain reserved
                                                in part 585. These
                                                sections are included as
                                                reserved in part 285.
------------------------------------------------------------------------
                         Lease or Grant Renewal
------------------------------------------------------------------------
285.425 [Reserved]      585.425 May I obtain   This section remains in
                         a renewal of my        part 585 and is included
                         lease or grant         as reserved in part 285.
                         before it
                         terminates?
285.426 [Reserved]      585.426 When must I    This section remains in
                         submit my request      part 585 and is included
                         for renewal?           as reserved in part 285.
285.427 [Reserved]      585.427 How long is a  This section remains in
                         renewal?               part 585 and is included
                                                as reserved in part 285.
285.428 [Reserved]      585.428 What effect    This section remains in
                         does applying for a    part 585 and is included
                         renewal have on my     as reserved in part 285.
                         activities and
                         payments?
285.429 [Reserved]      585.429 What criteria  This section remains in
                         will BOEM consider     part 585 and is included
                         in deciding whether    as reserved in part 285.
                         to renew a lease or
                         grant?
285.430 and 285.431     585.430 and 585.431    These sections remain
 [Reserved]              [Reserved]             reserved in part 585 and
                                                are included as reserved
                                                in part 285.
------------------------------------------------------------------------
                       Lease or Grant Termination
------------------------------------------------------------------------
285.432 [Reserved]      585.432 When does my   This section remains in
                         lease or grant         part 585 and is included
                         terminate?             as reserved in part 285.
285.433 What must I do  585.433 What must I    This section remains in
 after my lease or       do after my lease or   part 585 and is included
 grant terminates?       grant terminates?      in part 285.

[[Page 6385]]

 
285.434 [Reserved]      585.434 [Reserved]     Existing section 585.909
                                                is moved to Sec.
                                                585.434. This section is
                                                included as reserved in
                                                part 285.
------------------------------------------------------------------------
                      Lease or Grant Relinquishment
------------------------------------------------------------------------
285.435 [Reserved]      585.435 How can I      This section remains in
                         relinquish a lease     part 585 and is included
                         or a grant or parts    as reserved in part 285.
                         of a lease or grant?
------------------------------------------------------------------------
                       Lease or Grant Contraction
------------------------------------------------------------------------
285.436 [Reserved]      585.436 Can BOEM       This section remains in
                         require lease or       part 585 and is included
                         grant contraction?     as reserved in part 285.
------------------------------------------------------------------------
                       Lease or Grant Cancellation
------------------------------------------------------------------------
285.437 When can my     585.437 When can my    This section is moved in
 lease or grant be       lease or grant be      part 585 to 585.422 and
 cancelled?              cancelled?             is included in part 285.
------------------------------------------------------------------------
        Subpart E--Payments and Financial Assurance Requirements
------------------------------------------------------------------------
 
The regulatory requirements in this subpart are administered by BOEM and
 remain in part 585 only. Subpart E is reserved in part 285.
------------------------------------------------------------------------
                                Payments
------------------------------------------------------------------------
                        585.500 How do I make  This section remains in
                         payments under this    part 585 only.
                         part?
                        585.501 What deposits  This section remains in
                         must I submit for a    part 585 only.
                         competitively issued
                         lease, ROW grant, or
                         RUE grant?
                        585.502 What initial   This section remains in
                         payment requirements   part 585 only.
                         must I meet to
                         obtain a
                         noncompetitive
                         lease, ROW grant, or
                         RUE grant?
                        585.503 What are the   This section remains in
                         rent and operating     part 585 only.
                         fee requirements for
                         a commercial lease?
                        585.504 How are my     This section remains in
                         payments affected if   part 585 only.
                         I develop my lease
                         in phases?
                        585.505 What are the   This section remains in
                         rent and operating     part 585 only.
                         fee requirements for
                         a limited lease?
                        585.506 What           This section remains in
                         operating fees must    part 585 only.
                         I pay on a
                         commercial lease?
                        585.507 What rent      This section remains in
                         payments must I pay    part 585 only.
                         on a project
                         easement?
                        585.508 What rent      This section remains in
                         payments must I pay    part 585 only.
                         on ROW grants or RUE
                         grants associated
                         with renewable
                         energy projects?
                        585.509 Who is         This section remains in
                         responsible for        part 585 only.
                         submitting lease or
                         grant payments to
                         BOEM?
                        585.510 May BOEM       This section remains in
                         reduce or waive my     part 585 only.
                         lease or grant
                         payments?
                        585.511-585.514        These sections remain
                         [Reserved]             reserved in part 585.
------------------------------------------------------------------------
         Financial Assurance Requirements for Commercial Leases
------------------------------------------------------------------------
                        585.515 What           This section remains in
                         financial assurance    part 585 only.
                         must I provide when
                         I obtain my
                         commercial lease?

[[Page 6386]]

 
                        585.516 What are the   This section remains in
                         financial assurance    part 585 only.
                         requirements for
                         each stage of my
                         commercial lease?
                        585.517 How will BOEM  This section remains in
                         determine the          part 585 only.
                         amounts of the
                         supplemental and
                         decommissioning
                         financial assurance
                         requirements
                         associated with
                         commercial leases?
                        585.518 and 585.519    These sections remain
                         [Reserved]             reserved in part 585.
------------------------------------------------------------------------
   Financial Assurance for Limited Leases, ROW Grants, and RUE Grants
------------------------------------------------------------------------
                        585.520 What           This section remains in
                         financial assurance    part 585 only.
                         must I provide when
                         I obtain my limited
                         lease, ROW grant, or
                         RUE grant?
                        585.521 Do my          This section remains in
                         financial assurance    part 585 only.
                         requirements change
                         as activities
                         progress on my
                         limited lease or
                         grant?
                        585.522-585.524        These sections remain
                         [Reserved]             reserved in part 585.
------------------------------------------------------------------------
            Requirements for Financial Assurance Instruments
------------------------------------------------------------------------
                        585.525 What general   This section remains in
                         requirements must a    part 585 only.
                         financial assurance
                         instrument meet?
                        585.526 What           This section remains in
                         instruments other      part 585 only.
                         than a surety bond
                         may I use to meet
                         the financial
                         assurance
                         requirement?
                        585.527 May I          This section remains in
                         demonstrate            part 585 only.
                         financial strength
                         and reliability to
                         meet the financial
                         assurance
                         requirement for
                         lease or grant
                         activities?
                        585.528 May I use a    This section remains in
                         third-party guaranty   part 585 only.
                         to meet the
                         financial assurance
                         requirement for
                         lease or grant
                         activities?
                        585.529 Can I use a    This section remains in
                         lease- or grant-       part 585 only.
                         specific
                         decommissioning
                         account to meet the
                         financial assurance
                         requirements related
                         to decommissioning?
------------------------------------------------------------------------
                     Changes in Financial Assurance
------------------------------------------------------------------------
                        585.530 What must I    This section remains in
                         do if my financial     part 585 only.
                         assurance lapses?
                        585.531 What happens   This section remains in
                         if the value of my     part 585 only.
                         financial assurance
                         is reduced?
                        585.532 What happens   This section remains in
                         if my surety wants     part 585 only.
                         to terminate the
                         period of liability
                         of my bond?
                        585.533 How does my    This section remains in
                         surety obtain          part 585 only.
                         cancellation of my
                         bond?
                        585.534 When may BOEM  This section remains in
                         cancel my bond?        part 585 only.
                        585.535 Why might      This section remains in
                         BOEM call for          part 585 only.
                         forfeiture of my
                         bond?
                        585.536 How will I be  This section remains in
                         notified of a call     part 585 only.
                         for forfeiture?
                        585.537 How will BOEM  This section remains in
                         proceed once my bond   part 585 only.
                         or other security is
                         forfeited?
                        585.538 and 585.539    These sections remain
                         [Reserved]             reserved in part 585.
------------------------------------------------------------------------

[[Page 6387]]

 
                       Revenue Sharing With States
------------------------------------------------------------------------
                        585.540 How will BOEM  This section remains in
                         equitably distribute   part 585 only.
                         revenues to the
                         States?
                        585.541 What is a      This section remains in
                         qualified project      part 585 only.
                         for revenue sharing
                         purposes?
                        585.542 What makes a   This section remains in
                         State eligible for     part 585 only.
                         payment of revenues?
                        585.543 Example of     This section remains in
                         how the inverse        part 585 only.
                         distance formula
                         works
------------------------------------------------------------------------
                 Subpart F--Plan Requirements (Part 585)
             Subpart F--Information Requirements (Part 285)
------------------------------------------------------------------------
 
Some regulatory requirements in this subpart are relevant to both BOEM
 and BSEE; therefore, they appear in both parts. In part 285, subpart F
 is entitled, ``Information Requirements''; in part 585, it is entitled,
 ``Plan Requirements.''
------------------------------------------------------------------------
285.600 [Reserved]      585.600 What plans     This section remains in
                         and information must   part 585 and is included
                         I submit to BOEM       as reserved in part 285.
                         before I conduct
                         activities on my
                         lease or grant?
285.601 [Reserved]      585.601 When am I      This section remains in
                         required to submit     part 585 and is included
                         my plans to BOEM?      as reserved in part 285.
285.602 What records    585.602 What records   This section is reserved
 must I maintain?        must I maintain?       in part 585 and is
                                                included in part 285.
285.603 and 285.604     585.603 and 585.604    These sections remain
 [Reserved]              [Reserved]             reserved in part 585 and
                                                are included as reserved
                                                in part 285.
------------------------------------------------------------------------
 Site Assessment Plan and Information Requirements for Commercial Leases
------------------------------------------------------------------------
285.605 [Reserved]      585.605 What is a      This section remains in
                         Site Assessment Plan   part 585 and is included
                         (SAP)?                 as reserved in part 285.
285.606 [Reserved]      585.606 What must I    This section remains in
                         demonstrate in my      part 585 and is included
                         SAP?                   as reserved in part 285.
285.607 [Reserved]      585.607 How do I       This section remains in
                         submit my SAP?         part 585 and is included
                                                as reserved in part 285.
285.608 and 285.609     585.608 and 585.609    These sections remain
 [Reserved]              [Reserved]             reserved in part 585 and
                                                are included as reserved
                                                in part 285.
------------------------------------------------------------------------
                  Contents of the Site Assessment Plan
------------------------------------------------------------------------
285.610 [Reserved]      585.610 What must I    This section remains in
                         include in my SAP?     part 585 and is included
                                                as reserved in part 285.
285.611 [Reserved]      585.611 What           This section remains in
                         information and        part 585 and is included
                         certifications must    as reserved in part 285.
                         I submit with my SAP
                         to assist BOEM in
                         complying with NEPA
                         and other relevant
                         laws?
285.612 [Reserved]      585.612 How will my    This section remains in
                         SAP be processed for   part 585 and is included
                         Federal consistency    as reserved in part 285.
                         under the Coastal
                         Zone Management Act?
285.613 [Reserved]      585.613 How will BOEM  This section remains in
                         process my SAP?        part 585 and is included
                                                as reserved in part 285.
------------------------------------------------------------------------
                    Activities Under an Approved SAP
------------------------------------------------------------------------
285.614 When may I      585.614 When may I     This section remains in
 begin conducting        begin conducting       part 585 and is included
 activities under my     activities under my    in part 285.
 approved SAP?           approved SAP?
285.615 What other      585.615 What other     This section remains in
 reports or notices      reports or notices     part 585 and is included
 must I submit to BSEE   must I submit to       in part 285. Only
 under my approved       BOEM under my          existing paragraph (b)
 SAP?                    approved SAP?          remains in part 585.

[[Page 6388]]

 
285.616 [Reserved]      585.616 [Reserved]     This section remains
                                                reserved in part 585 and
                                                is included as reserved
                                                in part 285.
285.617 [Reserved]      585.617 What           This section remains in
                         activities require a   part 585 and is included
                         revision to my SAP,    as reserved in part 285.
                         and when will BOEM
                         approve the
                         revision?
285.618 [Reserved]      585.618 What must I    This section remains in
                         do upon completion     part 585 and is included
                         of approved site       as reserved in part 285.
                         assessment
                         activities?
285.619 [Reserved]      585.619 [Reserved]     This section remains
                                                reserved in part 585 and
                                                is included as reserved
                                                in part 285.
------------------------------------------------------------------------
         Construction and Operations Plan for Commercial Leases
------------------------------------------------------------------------
285.620 [Reserved]      585.620 What is a      This section remains in
                         Construction and       part 585 and is included
                         Operations Plan?       as reserved in part 285.
285.621 [Reserved]      585.621 What must I    This section remains in
                         demonstrate in my      part 585 and is included
                         COP?                   as reserved in part 285.
285.622 [Reserved]      585.622 How do I       This section remains in
                         submit my COP?         part 585 and is included
                                                as reserved in part 285.
285.623-285.625         585.623-585.625        These sections remain
 [Reserved]              [Reserved]             reserved in part 585 and
                                                are included as reserved
                                                in part 285.
------------------------------------------------------------------------
            Contents of the Construction and Operations Plan
------------------------------------------------------------------------
285.626 [Reserved]      585.626 What must I    This section remains in
                         include in my COP?     part 585 and is included
                                                as reserved in part 285.
285.627 [Reserved]      585.627 What           This section remains in
                         information and        part 585 and is included
                         certificates must I    as reserved in part 285.
                         submit with my COP     Existing paragraph (c)
                         to assist the BOEM     is modified to read,
                         in complying with      ``You must submit your
                         NEPA and other         oil spill response plan
                         relevant laws?         to BSEE'' Existing
                                                paragraph (d) is
                                                modified to read, ``You
                                                must submit your safety
                                                management system to
                                                BSEE''
285.628 [Reserved]      585.628 How will BOEM  This section remains in
                         process my COP?        part 585 and is included
                                                as reserved in part 285.
285.629 [Reserved]      585.629 May I develop  This content of this
                         my lease in phases?    section is moved to
                                                585.238, under the
                                                leasing provisions, and
                                                is included as reserved
                                                in parts 285 and 585.
285.630 [Reserved]      585.630 [Reserved]     This section remains
                                                reserved in part 585 and
                                                is included as reserved
                                                in part 285.
------------------------------------------------------------------------
                    Activities Under an Approved COP
------------------------------------------------------------------------
285.631 When must I     585.631 When must I    This section remains in
 initiate activities     initiate activities    part 585 and is included
 under an approved       under an approved      in part 285.
 COP?                    COP?
285.632 What documents  585.632 What           This section remains in
 must I submit before    documents must I       part 585 and is included
 I may construct and     submit before I may    in part 285.
 install facilities      construct and
 under my approved       install facilities
 COP?                    under my approved
                         COP?
285.633 How do I        585.633 How do I       This section is removed
 comply with my COP?     comply with my COP?    and reserved in part 585
                                                and is included in part
                                                285.
285.634 [Reserved]      585.634 What           This section remains in
                         activities require a   part 585 and is included
                         revision to my COP,    as reserved in part 285.
                         and when will BOEM
                         approve the
                         revision?
285.635 [Reserved]      585.635 What must I    This section remains in
                         do if I cease          part 585 and is included
                         activities approved    as reserved in part 285.
                         in my COP before the
                         end of my commercial
                         lease?
285.636 What notices    585.636 What notices   This section is removed
 must I provide BSEE     must I provide BOEM    and reserved in part 585
 following approval of   following approval     and is included in part
 my COP?                 of my COP?             285.
285.637 When may I      585.637 When may I     This section is removed
 commence commercial     commence commercial    and reserved in part 585
 operations on my        operations on my       and is included in part
 commercial lease?       commercial lease?      285.
285.638 What must I do  585.638 What must I    This section is removed
 upon completion of my   do upon completion     and reserved in part 585
 commercial operations   of my commercial       and is included in part
 as approved in my COP   operations as          285.
 or FERC license?        approved in my COP
                         or FERC license?
285.639 [Reserved]      585.639 [Reserved]     This section remains
                                                reserved in part 585 and
                                                is included as reserved
                                                in part 285.
------------------------------------------------------------------------

[[Page 6389]]

 
General Activities Plan Requirements for Limited Leases, ROW Grants, and
                               RUE Grants
------------------------------------------------------------------------
285.640 [Reserved]      585.640 What is a      This section remains in
                         General Activities     part 585 and is included
                         Plan (GAP)?            as reserved in part 285.
285.641 [Reserved]      585.641 What must I    This section remains in
                         demonstrate in my      part 585 and is included
                         GAP?                   as reserved in part 285.
285.642 [Reserved]      585.642 How do I       This section remains in
                         submit my GAP?         part 585 and is included
                                                as reserved in part 285.
285.643 and 285.644     585.643 and 585.644    These sections remain
 [Reserved]              [Reserved]             reserved in part 585 and
                                                are included as reserved
                                                in part 285.
------------------------------------------------------------------------
                 Contents of the General Activities Plan
------------------------------------------------------------------------
285.645 [Reserved]      585.645 What must I    This section remains in
                         include in my GAP?     part 585 and is included
                                                as reserved in part 285.
285.646 [Reserved]      585.646 What           This section remains in
                         information and        part 585 and is included
                         certifications must    as reserved in part 285.
                         I submit with my GAP
                         to assist BOEM in
                         complying with NEPA
                         and other relevant
                         laws?
285.647 [Reserved]      585.647 How will my    This section remains in
                         GAP be processed for   part 585 and is included
                         Federal consistency    as reserved in part 285.
                         under the Coastal
                         Zone Management Act?
285.648 [Reserved]      585.648 How will BOEM  This section remains in
                         process my GAP?        part 585 and is included
                                                as reserved in part 285.
285.649 [Reserved]      585.649 [Reserved]     This section remains
                                                reserved in part 585 and
                                                is included as reserved
                                                in part 285.
------------------------------------------------------------------------
                    Activities Under an Approved GAP
------------------------------------------------------------------------
285.650 When may I      585.650 When may I     This section remains in
 begin conducting        begin conducting       part 585 and is included
 activities under my     activities under my    in part 285.
 GAP?                    GAP?
285.651 When may I      585.651 When may I     This section remains in
 construct complex or    construct complex or   part 585 and is included
 significant OCS         significant OCS        in part 285.
 facilities on my        facilities on my
 limited lease or any    limited lease or any
 facilities on my        facilities on my
 project easement        project easement
 proposed under my       proposed under my
 GAP?                    GAP?
285.652 [Reserved]      285.652 How long do I  This section remains in
                         have to conduct        part 585 and is included
                         activities under an    as reserved in part 285.
                         approved GAP?
285.653 What other      585.653 What other     This section remains in
 reports or notices      reports or notices     part 585 and is included
 must I submit to BSEE   must I submit to       in part 285. Only
 under my approved       BOEM under my          existing paragraph (b)
 GAP?                    approved GAP?          remains in part 585.
285.654 [Reserved]      585.654 [Reserved]     This section remains
                                                reserved in part 585 and
                                                is included as reserved
                                                in part 285.
285.655 [Reserved]      585.655 What           This section remains in
                         activities require a   part 585 and is included
                         revision to my GAP,    as reserved in part 285.
                         and when will BOEM
                         approve the
                         revision?
285.656 [Reserved]      585.656 What must I    This section remains in
                         do if I cease          part 585 and is included
                         activities approved    as reserved in part 285.
                         in my GAP before the
                         end of my term?
285.657 [Reserved]      585.657 What must I    This section remains in
                         do upon completion     part 585 and is included
                         of approved            as reserved in part 285.
                         activities under my
                         GAP?
------------------------------------------------------------------------
                      Cable and Pipeline Deviations
------------------------------------------------------------------------
285.658 [Reserved]      585.658 Can my cable   This section remains in
                         or pipeline            part 585 and is included
                         construction deviate   as reserved in part 285.
                         from my approved COP
                         or GAP?
285.659 [Reserved]      585.659 What           This section is moved to
                         requirements must I    585.700 in part 585,
                         include in my SAP,     under the heading
                         COP, or GAP            Environmental Protection
                         regarding air          Requirements Under
                         quality?               Approved Plans. Part
                                                585.659 is reserved in
                                                part 585 and part 285.
------------------------------------------------------------------------

[[Page 6390]]

 
        Subpart G--Facility Design, Fabrication, and Installation
------------------------------------------------------------------------
 
The regulatory requirements in this subpart are administered by BSEE and
 are included in part 285 only. Subpart G is removed and reserved in
 part 585.
------------------------------------------------------------------------
                                 Reports
------------------------------------------------------------------------
285.700 What reports    585.700 What reports   This section is included
 must I submit to BSEE   must I submit to       in part 285. In part
 before installing       BOEM before            585, the contents of
 facilities described    installing             existing section 585.659
 in my approved SAP,     facilities described   are relocated to
 COP, or GAP?            in my approved SAP,    585.700, under the
                         COP, or GAP?           heading Environmental
                                                Protection Requirements
                                                Under Approved Plans.
285.701 What must I     585.701 What must I    This section is included
 include in my           include in my          in part 285. In part
 Facility Design         Facility Design        585, the contents of
 Report?                 Report?                existing section 585.801
                                                are relocated to
                                                585.701, under the
                                                heading Environmental
                                                Protection Requirements
                                                Under Approved Plans.
285.702 What must I     585.702 What must I    This section is included
 include in my           include in my          in part 285. In part
 Fabrication and         Fabrication and        585, the contents of
 Installation Report?    Installation Report?   existing section 585.802
                                                are relocated to
                                                585.702, under the
                                                heading Environmental
                                                Protection Requirements
                                                Under Approved Plans and
285.703 What reports    585.703 What reports   This section is included
 must I submit for       must I submit for      in part 285. In part
 project modifications   project                585, the contents of
 and repairs?            modifications and      existing section 585.803
                         repairs?               are relocated to Sec.
                                                585.703, under the
                                                heading Environmental
                                                Protection Requirements
                                                Under Approved Plans.
285.704 [Reserved]      585.704 [Reserved]     This section is removed
                                                and reserved in part 585
                                                and is included as
                                                reserved in part 285.
------------------------------------------------------------------------
                      Certified Verification Agent
------------------------------------------------------------------------
285.705 When must I     585.705 When must I    This section is removed
 use a Certified         use a Certified        and reserved in part 585
 Verification Agent      Verification Agent     and is included in part
 (CVA)?                  (CVA)?                 285.
285.706 How do I        585.706 How do I       This section is removed
 nominate a CVA for      nominate a CVA for     and reserved in part 585
 BSEE approval?          BOEM approval?         and is included in part
                                                285.
285.707 What are the    585.707 What are the   This section is removed
 CVA's primary duties    CVA's primary duties   and reserved in part 585
 for facility design     for facility design    and is included in part
 review?                 review?                285.
285.708 What are the    585.708 What are the   This section is removed
 CVA's or project        CVA's or project       and reserved in part 585
 engineer's primary      engineer's primary     and is included in part
 duties for              duties for             285.
 fabrication and         fabrication and
 installation review?    installation review?
285.709 When            585.709 When           This section is removed
 conducting onsite       conducting onsite      and reserved in part 585
 fabrication             fabrication            and is included in part
 inspections, what       inspections, what      285.
 must the CVA or         must the CVA or
 project engineer        project engineer
 verify?                 verify?
285.710 When            585.710 When           This section is removed
 conducting onsite       conducting onsite      and reserved in part 585
 installation            installation           and is included in part
 inspections, what       inspections, what      285.
 must the CVA or         must the CVA or
 project engineer do?    project engineer do?
285.711 [Reserved]      585.711 [Reserved]     This section remains
                                                reserved in part 585 and
                                                is included as reserved
                                                in part 285.
285.712 What are the    585.712 What are the   This section is removed
 CVA's or project        CVA's or project       and reserved in part 585
 engineer's reporting    engineer's reporting   and is included in part
 requirements?           requirements?          285.
285.713 What must I do  585.713 What must I    This section is removed
 after the CVA or        do after the CVA or    and reserved in part 585
 project engineer        project engineer       and is included in part
 confirms conformance    confirms conformance   285.
 with the Fabrication    with the Fabrication
 and Installation        and Installation
 Report on my            Report on my
 commercial lease?       commercial lease?
285.714 What records    585.714 What records   This section is removed
 relating to SAPs,       relating to SAPs,      and reserved in part 585
 COPs, and GAPs must I   COPs, and GAPs must    and is included in part
 keep?                   I keep?                285.
------------------------------------------------------------------------

[[Page 6391]]

 
    Subpart H--Environmental and Safety Management, Inspections, and
Facility Assessments for Activities Conducted Under SAPs, COPs, and GAPs
                               (Part 285)
                    Subpart H--[Reserved] (Part 585)
------------------------------------------------------------------------
 
Most regulatory requirements in this subpart are administered by BSEE
 and are included in part 285 only; requirements administered by BOEM
 are moved to other sections in BOEM's part 585. In part 285, subpart H
 is entitled, ``Environmental and Safety Management, Inspections, and
 Facility Assessments for Activities Conducted under SAPS, COPs, and
 GAPs.'' In part 585, subpart H is entitled, ``[Reserved].''
------------------------------------------------------------------------
285.800 How must I      585.800 How must I     This section is removed
 conduct my activities   conduct my             and reserved in part 585
 to comply with safety   activities to comply   and is included in part
 and environmental       with safety and        285.
 requirements?           environmental
                         requirements?
285.801 How must I      585.801 How must I     This section is moved to
 conduct my approved     conduct my approved    585.701 and reserved in
 activities to protect   activities to          subpart H of part 585,
 marine mammals,         protect marine         and is included in part
 threatened and          mammals, threatened    285, as a cross-
 endangered species,     and endangered         reference to 585.701.
 and designated          species, and
 critical habitat?       designated critical
                         habitat?
285.802 What must I do  585.802 What must I    This section is moved to
 if I discover a         do if I discover a     Sec.   585.702 and
 potential               potential              reserved in subpart H of
 archaeological          archaeological         part 585, and is
 resource while          resource while         included in part 285, as
 conducting my           conducting my          a cross-reference to
 approved activities?    approved activities?   585.702.
285.803 How must I      585.803 How must I     This section is moved to
 conduct my approved     conduct my approved    Sec.   585.703 and
 activities to protect   activities to          reserved in subpart H of
 essential fish          protect essential      part 585, and is
 habitats identified     fish habitats          included in part 285, as
 and described under     identified and         a cross-reference to
 the Magnuson-Stevens    described under the    585.703.
 Fishery Conservation    Magnuson-Stevens
 and Management Act?     Fishery Conservation
                         and Management Act?
285.804-285.809         585.804-585.809        These sections remain
 [Reserved]              [Reserved]             reserved in part 585 and
                                                are included as reserved
                                                in part 285.
------------------------------------------------------------------------
                        Safety Management Systems
------------------------------------------------------------------------
285.810 What must I     585.810 What must I    This section is removed
 include in my Safety    include in my Safety   and reserved in part 585
 Management System?      Management System?     and is included in part
                                                285.
285.811 When must I     585.811 When must I    This section is removed
 follow my Safety        follow my Safety       and reserved in part 585
 Management System?      Management System?     and is included in part
                                                285.
285.812 [Reserved]      585.812 [Reserved]     This section remains
                                                reserved in part 585 and
                                                is included as reserved
                                                in part 285.
------------------------------------------------------------------------
                        Maintenance and Shutdowns
------------------------------------------------------------------------
285.813 When do I have  585.813 When do I      This section is removed
 to report removing      have to report         and reserved in part 585
 equipment from          removing equipment     and is included in part
 service?                from service?          285.
285.814 [Reserved]      585.814 [Reserved]     This section remains
                                                reserved in part 585 and
                                                is included as reserved
                                                in part 285.
------------------------------------------------------------------------
           Equipment Failure and Adverse Environmental Effects
------------------------------------------------------------------------
285.815 What must I do  585.815 What must I    This section is removed
 if I have facility      do if I have           and reserved in part 585
 damage or an            facility damage or     and is included in part
 equipment failure?      an equipment           285.
                         failure?
285.816 What must I do  585.816 What must I    This section is removed
 if environmental or     do if environmental    and reserved in part 585
 other conditions        or other conditions    and is included in part
 adversely affect a      adversely affect a     285.
 cable, pipeline, or     cable, pipeline, or
 facility?               facility?
285.817-285.819         585.817-585.819        These sections remain
 [Reserved]              [Reserved]             reserved in part 585 and
                                                are included as reserved
                                                in part 285.
------------------------------------------------------------------------

[[Page 6392]]

 
                       Inspections and Assessment
------------------------------------------------------------------------
285.820 Will BSEE       585.820 Will BOEM      This section is removed
 conduct inspections?    conduct inspections?   and reserved in part 585
                                                and is included in part
                                                285.
285.821 Will BSEE       585.821 Will BOEM      This section is removed
 conduct scheduled and   conduct scheduled      and reserved in part 585
 unscheduled             and unscheduled        and is included in part
 inspections?            inspections?           285.
285.822 What must I do  585.822 What must I    This section is removed
 when BSEE conducts an   do when BOEM           and reserved in part 585
 inspection?             conducts an            and is included in part
                         inspection?            285.
285.823 Will BSEE       585.823 Will BOEM      This section is removed
 reimburse me for my     reimburse me for my    and reserved in part 585
 expenses related to     expenses related to    and is included in part
 inspections?            inspections?           285.
285.824 How must I      585.824 How must I     This section is removed
 conduct self-           conduct self-          and reserved in part 585
 inspections?            inspections?           and is included in part
                                                285.
285.825 When must I     585.825 When must I    This section is removed
 assess my facilities?   assess my              and reserved in part 585
                         facilities?            and is included in part
                                                285.
285.826-285.829         585.826-585.829        These sections remain
 [Reserved]              [Reserved]             reserved in part 585 and
                                                are included as reserved
                                                in part 285.
------------------------------------------------------------------------
                  Incident Reporting and Investigation
------------------------------------------------------------------------
285.830 What are my     585.830 What are my    This section is removed
 incident reporting      incident reporting     and reserved in part 585
 requirements?           requirements?          and is included in part
                                                285.
285.831 What incidents  585.831 What           This section is removed
 must I report, and      incidents must I       and reserved in part 585
 when must I report      report, and when       and is included in part
 them?                   must I report them?    285.
285.832 How do I        585.832 How do I       This section is removed
 report incidents        report incidents       and reserved in part 585
 requiring immediate     requiring immediate    and is included in part
 notification?           notification?          285.
285.833 What are the    585.833 What are the   This section is removed
 reporting               reporting              and reserved in part 585
 requirements for        requirements for       and is included in part
 incidents requiring     incidents requiring    285.
 written notification?   written
                         notification?
------------------------------------------------------------------------
                       Subpart I--Decommissioning
------------------------------------------------------------------------
 
Most regulatory requirements in this subpart are administered by BSEE
 and are included in part 285 only; these requirements are removed from
 BOEM's regulations. BOEM retains decision-making authority on whether
 lease or grant facilities should be allowed to remain in place upon
 decommissioning.
------------------------------------------------------------------------
         Decommissioning Obligations and Requirements (Part 285)
------------------------------------------------------------------------
285.900 Who must meet   585.900 Who must meet  This section is removed
 the decommissioning     the decommissioning    in part 585 and is
 obligations in this     obligations in this    included in part 285.
 subpart?                subpart?
285.901 When do I       585.901 When do I      This section is removed
 accrue                  accrue                 in part 585 and is
 decommissioning         decommissioning        included in part 285.
 obligations?            obligations?
285.902 What are the    585.902 What are the   This section is removed
 general requirements    general requirements   in part 585 and is
 for decommissioning     for decommissioning    included in part 285.
 for facilities          for facilities
 authorized under my     authorized under my
 SAP, COP, or GAP?       SAP, COP, or GAP?
285.903 What are the    585.903 What are the   This section is removed
 requirements for        requirements for       in part 585 and is
 decommissioning FERC-   decommissioning FERC-  included in part 285.
 licensed hydrokinetic   licensed
 facilities?             hydrokinetic
                         facilities?
285.904 Can I request   585.904 Can I request  This section is removed
 a departure from the    a departure from the   in part 585 and is
 decommissioning         decommissioning        included in part 285.
 requirements?           requirements?
------------------------------------------------------------------------
                      Decommissioning Applications
------------------------------------------------------------------------
285.905 When must I     585.905 When must I    This section is removed
 submit my               submit my              in part 585 and is
 decommissioning         decommissioning        included in part 285.
 application?            application?
285.906 What must my    585.906 What must my   This section is removed
 decommissioning         decommissioning        in part 585 and is
 application include?    application include?   included in part 285.

[[Page 6393]]

 
285.907 How will BSEE   585.907 How will BOEM  This section is removed
 process my              process my             in part 585 and is
 decommissioning         decommissioning        included in part 285.
 application?            application?
285.908 What must I     585.908 What must I    This section is removed
 include in my           include in my          in part 585 and is
 decommissioning         decommissioning        included in part 285.
 notice?                 notice?
------------------------------------------------------------------------
                            Facility Removal
------------------------------------------------------------------------
285.909 When may        585.909 When may BOEM  This section is removed
 facilities remain in    authorize facilities   in part 585 and is
 place following         to remain in place     included in part 285.
 termination of a        following              The section heading in
 lease or grant?         termination of a       part 285 is revised.
                         lease or grant?
285.910 What must I do  585.910 What must I    This section is removed
 when I remove my        do when I remove my    in part 585 and is
 facility?               facility?              included in part 285.
585.911 [Reserved]      585.911 [Reserved]     This section is removed
                                                in part 585 and is
                                                included as reserved in
                                                part 285.
------------------------------------------------------------------------
                         Decommissioning Report
------------------------------------------------------------------------
285.912 After I remove  585.912 After I        This section is removed
 a facility, cable, or   remove a facility,     in part 585 and is
 pipeline, what          cable, or pipeline,    included in part 285.
 information must I      what information
 submit?                 must I submit?
------------------------------------------------------------------------
         Compliance with an Approved Decommissioning Application
------------------------------------------------------------------------
285.913 What happens    585.913 What happens   This section is removed
 if I fail to comply     if I fail to comply    in part 585 and is
 with my approved        with my approved       included in part 285.
 decommissioning         decommissioning
 application?            application?
------------------------------------------------------------------------
  Subpart J--Rights of Use and Easement for Energy- and Marine-Related
                Activities Using Existing OCS Facilities
------------------------------------------------------------------------
 
The Department is relocating the regulations related to alternate use
 RUEs to a new part 586, accompanied by certain general authority
 provisions copied from part 585 Subpart A. Some regulatory requirements
 in this subpart are relevant to both BOEM and BSEE; therefore, they
 appear in both parts 285 and 586. BSEE has the administrative
 responsibility for the decommissioning of an alternate use RUE, and
 those sections are included in part 285 only. Subpart J of part 585 is
 removed and is replaced with a new part 586 entitled, Alternate Uses of
 Existing Facilities on the Outer Continental Shelf.
------------------------------------------------------------------------
                          Regulated Activities
------------------------------------------------------------------------
                        585.100 Authority      This section is included
                                                in part 586, the OCSLA
                                                authority is updated and
                                                it is limited to
                                                Alternate Use RUEs.
                                                Section 586.100 is a new
                                                section under a new
                                                Subpart A-General
                                                Provisions in a new part
                                                586.
                        585.101 What is the    Paragraphs (a), (b), (c)
                         purpose of this        and (d) of this section
                         part?                  are included in 586.100,
                                                re-numbered to
                                                accommodate inclusion of
                                                the paragraphs of
                                                585.1000 What activities
                                                does this subpart
                                                regulate? Section
                                                586.101 is a new section
                                                under a new Subpart A-
                                                General Provisions in a
                                                new part 586.
                        585.102 What are       This section is included
                         BOEM's                 in part 586 as 586.103,
                         responsibilities       which is a new section
                         under this part?       under a new Subpart A-
                                                General Provisions in a
                                                new part 586.
                        585.103 When may BOEM  This section is included
                         prescribe or approve   in part 586 as 586.104
                         departures from        which is a new section
                         these regulations      under a new Subpart A-
                                                General Provisions.

[[Page 6394]]

 
                        585.104 Do I need a    This section is removed
                         BOEM lease or other    in the new part 586.
                         authorization to
                         produce or support
                         the production of
                         electricity
                        585.105 What are my    This section is included
                         responsibilities       as 586.105 and the
                         under this part?       undesignated paragraph
                                                references to
                                                ``lessee'', ``ROW
                                                grant'', and ``RUE
                                                grant'' have been
                                                deleted. This is a new
                                                section under a new
                                                Subpart A-General
                                                Provisions of the new
                                                part 586.
                        585.106 Who can hold   This section is included
                         a lease or grant       in part 586 as 586.107,
                         under this part?       with the references to
                                                ``lease'' deleted.
                                                Section 585.106 is now
                                                entitled, What happens
                                                if I fail to comply with
                                                this part?, to mirror
                                                the General Provisions
                                                of the Renewable Energy
                                                part 585 regulations.
                        585.107 How do I show  This section is included
                         that I am qualified    in part 586 and
                         to be a lease or       renumbered 586.108. This
                         grant holder?          is a new section under a
                                                new Subpart A-General
                                                Provisions in a new part
                                                586.
                        585.108 When must I    This section is included
                         notify BOEM if an      as 586.109. This is a
                         action has been        new section under a new
                         filed alleging that    Subpart A-General
                         I am insolvent or      Provisions in a new part
                         bankrupt?              586.
                        585.109 When must I    This section is included
                         notify BOEM of         as 586.110. This is a
                         mergers, name          new section under a new
                         changes, or changes    Subpart A-General
                         of business form?      Provisions in a new part
                                                586.
                        585.110 How do I       This section is included
                         submit plans,          as 586.111. This is a
                         applications,          new section under a new
                         reports, or notices    Subpart A-General
                         required in this       Provisions in a new part
                         part?                  586.
                        585.111 When and how   This section is included
                         does BOEM charge me    as 586.112. This is a
                         processing fees on a   new section under a new
                         case-by-case basis?    Subpart A-General
                                                Provisions in a new part
                                                586.
                        585.112 Definitions    This section is included
                                                as 586.113. Definitions
                                                for terms not included
                                                in part 586 have been
                                                removed. This is a new
                                                section under a new
                                                Subpart A-General
                                                Provisions in a new part
                                                586.
                        585.113 How will data  This section is included
                         and information        as section 586.114. This
                         obtained by BOEM       is a new section under a
                         under this part be     new Subpart A-General
                         disclosed to the       Provisions in a new part
                         public?                586.
                        585.114 Paperwork      This section is included
                         Reduction Act          as section 586.115. This
                         statements-            is a new section under a
                         information            new Subpart A-General
                         collection             Provisions in a new part
                                                586.
                        585.116 Requests for   The content of existing
                         information on the     585.116 is not included
                         state of the           in new part 586. Section
                         offshore renewable     586.116 is reserved.
                         energy industry
                        585.117 [Reserved]     This section is reserved
                                                as section 586.117 under
                                                a new Subpart A-General
                                                Provisions in a new part
                                                586.
                        585.118 What are my    This section is included
                         appeal rights?         as 586.118 under a new
                                                Subpart A-General
                                                Provisions in a new part
                                                586.
285.1000 What           585.1000 What          This section is removed
 activities does this    activities does this   and its contents
 subpart regulate?       subpart regulate?      relocated to Sec.
                                                586.102 under a new
                                                Subpart A-General
                                                Provisions in a new part
                                                586. This section is
                                                also included in part
                                                285.
285.1001-285.1003       585.1001-585.1003      These sections are
 [Reserved]              [Reserved]             removed in part 585 and
                                                are included as reserved
                                                in part 285.
------------------------------------------------------------------------
                     Requesting an Alternate Use RUE
------------------------------------------------------------------------
285.1004 [Reserved]     585.1004 What must I   This section is removed
                         do before I request    and relocated to a new
                         an Alternate Use       part 586, to Sec.
                         RUE?                   586.200 under a new
                                                Subpart B-Issuance of
                                                Alternate Use RUEs for
                                                Energy- and Marine-
                                                Related Activities Using
                                                Existing OCS Facilities.
                                                This section is also
                                                included as reserved in
                                                part 285.
285.1005 [Reserved]     585.1005 How do I      This section is removed
                         request an Alternate   and relocated to a new
                         Use RUE?               part 586, to Sec.
                                                586.201 under a new
                                                Subpart B-Issuance of
                                                Alternate Use RUEs for
                                                Energy- and Marine-
                                                Related Activities Using
                                                Existing OCS Facilities.
                                                This section is also
                                                included as reserved in
                                                part 285.
285.1006 [Reserved]     585.1006 How will      This section is removed
                         BOEM decide whether    and relocated to a new
                         to issue an            part 586, to Sec.
                         Alternate Use RUE?     586.202 under a new
                                                Subpart B-Issuance of
                                                Alternate Use RUEs for
                                                Energy- and Marine-
                                                Related Activities Using
                                                Existing OCS Facilities.
                                                This section is also
                                                included as reserved in
                                                part 285.
285.1007 [Reserved]     585.1007 What process  This section is removed
                         will BOEM use for      and relocated to a new
                         competitively          part 586, to Sec.
                         offering an            586.203 under a new
                         Alternate Use RUE?     Subpart B-Issuance of
                                                Alternate Use RUEs for
                                                Energy- and Marine-
                                                Related Activities Using
                                                Existing OCS Facilities.
                                                This section is also
                                                included as reserved in
                                                part 285.

[[Page 6395]]

 
285.1008 and 285.1009   585.1008 and 585.1009  These sections are
 [Reserved]              [Reserved]             removed in part 585 and
                                                are included as reserved
                                                in part 285. Sections
                                                586.204 through 586.209
                                                are also reserved.
------------------------------------------------------------------------
                    Alternate Use RUE Administration
------------------------------------------------------------------------
285.1010 [Reserved]     585.1010 How long may  This section is removed
                         I conduct activities   and relocated to a new
                         under an Alternate     part 586, to Sec.
                         Use RUE?               586.210 under a new
                                                Subpart B-Issuance of
                                                Alternate Use RUEs for
                                                Energy- and Marine-
                                                Related Activities Using
                                                Existing OCS Facilities.
                                                This section is also
                                                included as reserved in
                                                part 285.
285.1011 [Reserved]     585.1011 What          This section is removed
                         payments are           and relocated to a new
                         required for an        part 586, to Sec.
                         Alternate Use RUE?     586.211 under a new
                                                Subpart B-Issuance of
                                                Alternate Use RUEs for
                                                Energy- and Marine-
                                                Related Activities Using
                                                Existing OCS Facilities.
                                                This section is also
                                                included as reserved in
                                                part 285.
285.1012 [Reserved]     585.1012 What          This section is removed
                         financial assurance    and relocated to a new
                         is required for an     part 586, to Sec.
                         Alternate Use RUE?     586.212 under a new
                                                Subpart B-Issuance of
                                                Alternate Use RUEs for
                                                Energy- and Marine-
                                                Related Activities Using
                                                Existing OCS Facilities.
                                                This section is also
                                                included as reserved in
                                                part 285.
285.1013 [Reserved]     585.1013 Is an         This section is removed
                         Alternate Use RUE      and relocated to a new
                         assignable?            subpart, to Sec.
                                                586.213 under a new
                                                Subpart B-Issuance of
                                                Alternate Use RUEs for
                                                Energy- and Marine-
                                                Related Activities Using
                                                Existing OCS Facilities.
                                                This section is also
                                                included as reserved in
                                                part 285.
285.1014 When will      585.1014 When will     This section is removed
 BSEE suspend an         BOEM suspend an        and relocated to a new
 Alternate Use RUE?      Alternate Use RUE?     subpart 586, to Sec.
                                                586.214 under a new
                                                Subpart B-Issuance of
                                                Alternate Use RUEs for
                                                Energy- and Marine-
                                                Related Activities Using
                                                Existing OCS Facilities.
                                                Paragraphs (a)(1) and
                                                (3) and paragraph (b)
                                                remain BOEM's
                                                responsibility and are
                                                renumbered accordingly.
                                                This section is also
                                                included in part 285;
                                                paragraphs (a)(1), (2),
                                                and (4) and paragraph
                                                (b) are transferred to
                                                BSEE's responsibility.
285.1015 [Reserved]     585.1015 How do I      This section is removed
                         relinquish an          and relocated to a new
                         Alternate Use RUE?     subpart 586, to Sec.
                                                586.215 under a new
                                                Subpart B-Issuance of
                                                Alternate Use RUEs for
                                                Energy- and Marine-
                                                Related Activities Using
                                                Existing OCS Facilities.
                                                This section is also
                                                included as reserved in
                                                part 285.
285.1016 When will an   585.1016 When will an  This section is removed
 Alternate Use RUE be    Alternate Use RUE be   and relocated to a new
 cancelled?              cancelled?             subpart 586, to Sec.
                                                586.216 under a new
                                                Subpart B-Issuance of
                                                Alternate Use RUEs for
                                                Energy- and Marine-
                                                Related Activities Using
                                                Existing OCS Facilities.
                                                This section is also
                                                included in part 285.
285.1017 [Reserved]     585.1017 [Reserved]    This section is removed
                                                from part 585 and is
                                                reserved in part 285.
------------------------------------------------------------------------
                  Decommissioning an Alternate Use RUE
------------------------------------------------------------------------
285.1018 Who is         585.1018 Who is        The content of Sec.
 responsible for         responsible for        585.1018 is removed.
 decommissioning an      decommissioning an     This section is reserved
 OCS facility subject    OCS facility subject   and the content is now
 to an Alternate Use     to an Alternate Use    in new Sec.   586.218,
 RUE?                    RUE?                   under a new Subpart B-
                                                Issuance of Alternate
                                                Use RUEs for Energy- and
                                                Marine-Related
                                                Activities Using
                                                Existing OCS Facilities.
                                                This section is also
                                                included in part 285.
285.1019 What are the   585.1019 What are the  This section is removed
 decommissioning         decommissioning        and relocated to a new
 requirements for an     requirements for an    subpart 586, to Sec.
 Alternate Use RUE?      Alternate Use RUE?     586.219 under a new
                                                Subpart B-Issuance of
                                                Alternate Use RUEs for
                                                Energy- and Marine-
                                                Related Activities Using
                                                Existing OCS Facilities.
                                                This section is also
                                                included in part 285.
------------------------------------------------------------------------


[[Page 6396]]

IV. Procedural Matters

A. Statutes

1. Data Quality Act
    In developing this rule, BOEM and BSEE neither conducted nor used 
studies, experiments, or surveys requiring peer review under the Data 
Quality Act (Pub. L. 106-554, app. C Sec.  515, 114 Stat. 2763, 2763A-
153-154).
2. National Environmental Policy Act
    This rule is not a major Federal action significantly affecting the 
quality of the human environment. A detailed statement under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4332) is not 
required because this rule is administrative and procedural in nature 
and is, therefore, covered by a categorical exclusion (see 43 CFR 
46.210(i)). We also have determined that this rule does not involve any 
of the extraordinary circumstances described in 43 CFR 46.215 that 
would require further analysis under NEPA. Consequently, neither an 
environmental assessment nor an environmental impact statement is 
required.
3. Paperwork Reduction Act
    The Paperwork Reduction Act (44 U.S.C. 3501-3521) provides that 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 OMB control number. Collections of information include 
requests and requirements that an individual, partnership, or 
corporation obtain information and report it to a Federal agency (44 
U.S.C. 3502(3); 5 CFR 1320.3(c) and (k)).
    This rule simply transfers some regulations associated with 
currently approved IC burdens from BOEM's responsibility to BSEE's 
responsibility; this rule contains no substantive changes to current IC 
burdens. In some cases, the requirements are administered by both BOEM 
and BSEE, and for this reason, please consult the burden table for an 
accurate breakdown of responses and burden hours. The regulations 
addressed in this rule are the subject of currently approved IC burdens 
for BOEM under OMB Control Number 1010-0176 (expiration January 31, 
2026). Though OMB has approved the transfer of IC burdens from BOEM to 
BSEE, ROCIS software precludes OMB from issuing a control number to 
BSEE until this rule's publication in the Federal Register. BSEE 
expects to publish a rule correction containing OMB's IC control number 
soon. Under this rule, the regulated community submits some existing 
reports to BSEE that were previously submitted to BOEM. The following 
burden table shows how this rulemaking shifts certain collection of 
information burdens from BOEM to BSEE.

Table B--Burden Table

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[[Page 6412]]

4. Regulatory Flexibility Act
    A final regulatory flexibility analysis is not required for this 
rule because it is exempt from the notice-and-comment provisions of the 
APA (5 U.S.C. 553(b)(A); see supra III.A). Therefore, the requirements 
of the Regulatory Flexibility Act do not apply to this final rule (5 
U.S.C. 604(a)).
5. Congressional Review Act (CRA)
    This final rule does not qualify as a major rule under the CRA (5 
U.S.C. 801-808). This rule reorganizes existing regulations to reflect 
the transfer of responsibility for OCS renewable energy safety and 
environmental oversight and enforcement functions from BOEM to BSEE. 
This rule does not generate an annual economic effect of $100 million 
or more (see below discussion at Executive Order 12866 and Executive 
Order 13563); cause major price increases for consumers, businesses, or 
governments, or geographic regions; or degrade competition, employment, 
investment, productivity, innovation, or the ability of U.S. businesses 
to compete against foreign businesses.
6. Unfunded Mandates Reform Act
    This rule imposes neither an unfunded Federal mandate of more than 
$100 million annually nor significant or unique effects on State, 
local, or Tribal governments. Thus, an Unfunded Mandates Reform Act (2 
U.S.C. 1531) statement is not required.
7. Administrative Procedure Act
    This rule reassigns existing regulations governing safety and 
environmental oversight and enforcement of OCS renewable energy 
activities from BOEM to BSEE. This rulemaking is neither substantive 
nor controversial because it merely reorganizes provisions in the Code 
of Federal Regulations and, therefore, does not affect the legal 
rights, obligations, and interests of any interested parties.
    This rule implements Secretary's Order 3299-- which reflects the 
Secretary's prudent and considered policy judgment that independent 
oversight and enforcement is in the national interest to best address 
the organizational concerns highlighted by the Deepwater Horizon 
incident-- and revisions made to the Departmental Manual implementing 
that direction. Specifically, this rule transfers existing safety and 
environmental oversight and enforcement regulations governing OCS 
renewable energy activities from 30 CFR part 585, under BOEM's purview, 
to 30 CFR part 285, under BSEE's purview. This reorganization parallels 
the bureaus' oversight of oil and gas activities. This transfer 
includes a reassignment of authority to: oversee facility design, 
fabrication, installation, and safety management systems; ensure the 
safety of operations, including inspection programs and incident 
reporting and investigations; enforce compliance with all applicable 
safety, environmental, and other laws and regulations through 
enforcement actions (such as noncompliance notices, cessation orders, 
and lease suspensions); and oversee decommissioning activities. This 
rule also moves certain sections pertaining to Alternate Use RUEs from 
30 CFR part 585 to a new 30 CFR part 586.
    This rule is a ``rule[ ] of agency organization, procedure, or 
practice,'' 5 U.S.C. 553(b)(A), because it implements the Department's 
reassignment of responsibility for administering existing regulatory 
provisions from BOEM to BSEE. This rule reorganizes current regulations 
to be consistent with Departmental delegations without making 
substantive changes to those regulations or modifying substantive 
rights or interests. Nor does the rule impose new rights or duties or 
change the legal status of regulated parties. No statute requires 
notice or hearing for this rule. Therefore, this rule is exempt from 
notice-and-comment rulemaking requirements under 5 U.S.C. 553(b)(A). 
Additionally, for the same reasons, the Department finds for good cause 
shown that notice and comment on this rule are unnecessary and contrary 
to the public interest under 5 U.S.C. 553(b)(B). Further, because this 
rule makes no changes to the legal obligations or rights of 
nongovernmental entities, the relevant responsibilities have already 
been delegated to BSEE, and it is in the public interest for the 
regulations to reflect that delegation to provide clarity, the 
Department further finds that good cause exists to make this rule 
effective upon publication in the Federal Register per 5 U.S.C. 
553(d)(3).

B. Executive Orders

1. Executive Order 12630--Takings Implication Assessment
    Under the criteria in Executive Order 12630 section 2(a)(2), this 
final rule does not have takings implications because it simply 
reassigns current safety and environmental oversight and enforcement 
regulations to BSEE from BOEM. This rulemaking is not a Federal action 
capable of interference with constitutionally protected private 
property rights. A takings implications assessment is not required.
2. Executive Order 12866--Regulatory Planning and Review, and Executive 
Order 13563--Improving Regulation and Regulatory Review
    Executive Order 12866 provides that the Office of Information and 
Regulatory Affairs in OMB will review all significant rules. The Office 
of Information and Regulatory Affairs has determined that this rule is 
not significant. This rule only reassigns current safety and 
environmental oversight and enforcement regulations from BOEM to BSEE. 
This rule does not change the substance of existing regulatory 
requirements.
    Executive Order 13563 reaffirms the principles of Executive Order 
12866 while calling for improvements in the nation's regulatory system 
to promote predictability, to reduce uncertainty, and to use the best, 
most innovative, and least burdensome tools for achieving regulatory 
ends. The executive order directs agencies to consider regulatory 
approaches that reduce burdens and maintain flexibility and freedom of 
choice for the public where these approaches are relevant, feasible, 
and consistent with regulatory objectives. We have developed this rule 
in a manner consistent with these requirements.
3. Executive Order 12988--Civil Justice Reform
    This rule complies with the requirements of Executive Order 12988. 
Specifically, this rule meets the criteria of both section 3(a), which 
requires that all regulations be reviewed to minimize litigation and to 
eliminate errors and ambiguity, and section 3(b)(2), which requires 
that all regulations be written clearly and contain clear legal 
standards.
    This rule simply reassigns current safety and environmental 
oversight and enforcement regulations from BOEM to BSEE. This rule does 
not change the substance of existing regulatory requirements; it 
retains the substance of the existing part 585, which was promulgated 
through notice and comment rulemaking.
4. Executive Order 13132--Federalism
    This rule only transfers current safety and environmental oversight 
and enforcement regulations from BOEM to BSEE. This rule does not 
change the substance of existing regulatory requirements. This rule, 
therefore, does not have substantial direct effects on either the 
States or the relationship between the Federal and State governments, 
nor does it affect the distribution of power and

[[Page 6413]]

responsibilities between various governmental levels. Thus, a 
federalism impact statement is unnecessary.
5. Executive Order 13175--Consultation and Coordination With Indian 
Tribal Governments
    After a review under the policy criteria of both section 5 of 
Executive Order 13175 and section 4(a) of Secretary's Order 3317, the 
BOEM Tribal Consultation Team has determined that this rule will have 
no substantial direct effects on federally recognized Tribal Nations or 
Alaska Native Corporations. This rule only reassigns certain 
regulations from BOEM to BSEE. Thus, consultation under DOI's Tribal 
consultation policy is neither recommended nor required.
6. Executive Order 13211--Effects on the Nation's Energy Supply
    This rule is not a significant energy action under the definition 
in Executive Order 13211 section 4(b) because it likely will not have a 
significant adverse effect on the energy market, because OMB has not 
designated it as a significant energy action, and because it is not a 
significant regulatory action under Executive Order 12866. Thus, a 
statement of energy effects is not required.
7. Presidential Memorandum of June 1, 1998, on Regulation Clarity
    This rule only reassigns certain existing regulatory provisions 
from BOEM to BSEE. This rule does not change the substance of existing 
regulatory requirements. Thus, like existing 30 CFR part 585, which was 
promulgated through notice and comment rulemaking after this 
Presidential Memorandum, this rule satisfies the requirements for 
regulation clarity outlined in this Presidential Memorandum.

List of Subjects

30 CFR Part 285

    Continental shelf, Energy, Environmental protection, Historic 
preservation, Incorporation by reference, Marine resources, Marine 
safety, Natural resources, Ocean resources, Offshore energy, Offshore 
structures, Outer continental shelf, Renewable energy, Reporting and 
recordkeeping requirements, Safety, Wind energy.

30 CFR Part 585

    Administrative practice and procedure, Coastal zone, Continental 
shelf, Electric power, Energy, Environmental protection, Government 
leases, Intergovernmental relations, Marine resources, Marine safety, 
Natural resources, Ocean resources, Offshore energy, Offshore 
structures, Outer continental shelf, Payments, Planning, Power 
resources, Renewable energy, Reporting and recordkeeping requirements, 
Revenue sharing, Rights-of-way, Rights-of-use and easement, Wind 
energy.

30 CFR Part 586

    Coastal zone, Continental shelf, Electric power, Energy, 
Intergovernmental relations, Marine resources, Natural resources, Ocean 
resources, Offshore energy, Offshore structures, Outer continental 
shelf, Power resources, Renewable energy, Rights-of-way, Rights-of-use 
and easement, Wind energy.

Laura Daniel-Davis,
Principal Deputy Assistant Secretary, Land and Minerals Management.
    For the reasons stated in the preamble, the Bureau of Safety and 
Environmental Enforcement (BSEE) amends 30 CFR chapter II, and the 
Bureau of Ocean Energy Management (BOEM) amends 30 CFR chapter V as 
follows:

Chapter II--Bureau of Safety and Environmental Enforcement

0
1. Add part 285 to subchapter B to read as follows:

PART 285--RENEWABLE ENERGY AND ALTERNATE USES OF EXISTING 
FACILITIES ON THE OUTER CONTINENTAL SHELF

Subpart A--General Provisions
Sec.
285.100 Authority.
285.101 What is the purpose of this part?
285.102 What are BSEE's responsibilities under this part?
285.103 When may BSEE prescribe or approve departures from the 
regulations in this part?
285.104 [Reserved]
285.105 What are my responsibilities under this part?
285.106-285.109 [Reserved]
285.110 How do I submit applications, reports, or notices required 
by this part?
285.111 When and how does BSEE charge me processing fees on a case-
by-case basis?
285.112 Definitions.
285.113 How will data and information obtained by BSEE under this 
part be disclosed to the public?
285.114 Paperwork Reduction Act statements--information collection.
285.115 Documents incorporated by reference.
285.116 Requests for information on the state of the offshore 
renewable energy industry.
285.117 [Reserved]
285.118 What are my appeal rights?
Subparts B and C [Reserved]
Subpart D--Lease and Grant Administration

Noncompliance and Cessation Orders

285.400 What happens if I fail to comply with this part?
285.401 When may BSEE issue a cessation order?
285.402 What is the effect of a cessation order?
285.403-285.405 [Reserved]

Responsibility for Fulfilling Obligations

285.406 Who is responsible for fulfilling lease and grant 
obligations?
285.407-285.414 [Reserved]

Lease or Grant Suspension

285.415 What is a lease or grant suspension?
285.416 [Reserved]
285.417 When may BSEE order a suspension?
285.418 How will BSEE issue a suspension?
285.419 What are my immediate responsibilities if I receive a 
suspension order?
285.420 What effect does a suspension order have on my payments?
285.421 How long will a suspension be in effect?
285.422-285.432 [Reserved]

Lease or Grant Termination

285.433 What must I do after my lease or grant terminates?
285.434-285.436 [Reserved]

Lease or Grant Cancellation

285.437 When can my lease or grant be canceled?
Subpart E [Reserved]
Subpart F--Information Requirements
285.600-285.601 [Reserved]
285.602 What records must I maintain?
285.603-285.613 [Reserved]

[[Page 6414]]

Activities Under an Approved SAP

285.614 When may I begin conducting activities under my approved 
SAP?
285.615 What other reports or notices must I submit to BSEE under my 
approved SAP?
285.616-285.630 [Reserved]

Activities Under an Approved COP

285.631 When must I initiate activities under an approved COP?
285.632 What documents must I submit before I may construct and 
install facilities under my approved COP?
285.633 How do I comply with my COP?
285.634-285.635 [Reserved]
285.636 What notices must I provide BSEE following approval of my 
COP?
285.637 When may I commence commercial operations on my commercial 
lease?
285.638 What must I do upon completion of my commercial operations 
as approved in my COP or FERC license?
285.639-285.649 [Reserved]

Activities Under an Approved GAP

285.650 When may I begin conducting activities under my GAP?
285.651 When may I construct complex or significant OCS facilities 
on my limited lease or any facilities on my project easement 
proposed under my GAP?
285.652 [Reserved]
285.653 What other reports or notices must I submit to BSEE under my 
approved GAP?
285.654-285.659 [Reserved]
Subpart G--Facility Design, Fabrication, and Installation

Reports

285.700 What reports must I submit to BSEE before installing 
facilities described in my approved SAP, COP, or GAP?
285.701 What must I include in my Facility Design Report?
285.702 What must I include in my Fabrication and Installation 
Report?
285.703 What reports must I submit for project modifications and 
repairs?
285.704 [Reserved]

Certified Verification Agent

285.705 When must I use a Certified Verification Agent (CVA)?
285.706 How do I nominate a CVA for BSEE approval?
285.707 What are the CVA's primary duties for facility design 
review?
285.708 What are the CVA's or project engineer's primary duties for 
fabrication and installation review?
285.709 When conducting onsite fabrication inspections, what must 
the CVA or project engineer verify?
285.710 When conducting onsite installation inspections, what must 
the CVA or project engineer do?
285.711 [Reserved]
285.712 What are the CVA's or project engineer's reporting 
requirements?
285.713 What must I do after the CVA or project engineer confirms 
conformance with the Fabrication and Installation Report on my 
commercial lease?
285.714 What records relating to SAPs, COPs, and GAPs must I keep?
Subpart H--Environmental and Safety Management, Inspections, and 
Facility Assessments for Activities Conducted Under SAPs, COPs and GAPs
285.800 How must I conduct my activities to comply with safety and 
environmental requirements?
285.801 How must I conduct my approved activities to protect marine 
mammals, threatened and endangered species, and designated critical 
habitat?
285.802 What must I do if I discover a potential archaeological 
resource while conducting my approved activities?
285.803 How must I conduct my approved activities to protect 
essential fish habitats identified and described under the Magnuson-
Stevens Fishery Conservation and Management Act?
285.804-285.809 [Reserved]

Safety Management Systems

285.810 What must I include in my Safety Management System?
285.811 When must I follow my Safety Management System?
285.812 [Reserved]

Maintenance and Shutdowns

285.813 When do I have to report removing equipment from service?
285.814 [Reserved]

Equipment Failure and Adverse Environmental Effects

285.815 What must I do if I have facility damage or an equipment 
failure?
285.816 What must I do if environmental or other conditions 
adversely affect a cable, pipeline, or facility?
285.817-285.819 [Reserved]

Inspections and Assessments

285.820 Will BSEE conduct inspections?
285.821 Will BSEE conduct scheduled and unscheduled inspections?
285.822 What must I do when BSEE conducts an inspection?
285.823 Will BSEE reimburse me for my expenses related to 
inspections?
285.824 How must I conduct self-inspections?
285.825 When must I assess my facilities?
285.826-285.829 [Reserved]

Incident Reporting and Investigation

285.830 What are my incident reporting requirements?
285.831 What incidents must I report, and when must I report them?
285.832 How do I report incidents requiring immediate notification?
285.833 What are the reporting requirements for incidents requiring 
written notification?
Subpart I--Decommissioning

Decommissioning Obligations and Requirements

285.900 Who must meet the decommissioning obligations in this 
subpart?
285.901 When do I accrue decommissioning obligations?
285.902 What are the general requirements for decommissioning for 
facilities authorized under my SAP, COP, or GAP?
285.903 What are the requirements for decommissioning FERC-licensed 
hydrokinetic facilities?
285.904 Can I request a departure from the decommissioning 
requirements?

Decommissioning Applications

285.905 When must I submit my decommissioning application?
285.906 What must my decommissioning application include?
285.907 How will BSEE process my decommissioning application?
285.908 What must I include in my decommissioning notice?

Facility Removal

285.909 When may facilities remain in place following termination of 
a lease or grant?
285.910 What must I do when I remove my facility?
285.911 [Reserved]

Decommissioning Report

285.912 After I remove a facility, cable, or pipeline, what 
information must I submit?

Compliance With an Approved Decommissioning Application

285.913 What happens if I fail to comply with my approved 
decommissioning application?
Subpart J--Rights of Use and Easement for Energy- and Marine-Related 
Activities Using Existing OCS Facilities

Regulated Activities

285.1000 What activities does this subpart regulate?
285.1001-285.1013 [Reserved]

Alternate Use RUE Administration

285.1014 When will BSEE suspend an Alternate Use RUE?
285.1015 [Reserved]
285.1016 When will an Alternate Use RUE be cancelled?
285.1017 [Reserved]

Decommissioning an Alternate Use RUE

285.1018 Who is responsible for decommissioning an OCS facility 
subject to an Alternate Use RUE?
285.1019 What are the decommissioning requirements for an Alternate 
Use RUE?

    Authority: 43 U.S.C. 1331 et seq.

Subpart A--General Provisions


Sec.  285.100  Authority.

    The authority for this part derives from the Outer Continental 
Shelf Lands Act (OCS Lands Act) (43 U.S.C. 1337). The Secretary of the 
Interior delegated to the Bureau of Safety and Environmental 
Enforcement (BSEE) the authority to regulate certain activities. These 
regulations specifically apply to activities that:
    (a) Produce or support production, transportation, or transmission 
of energy from sources other than oil and gas; or

[[Page 6415]]

    (b) Use, for energy-related purposes or for other authorized 
marine-related purposes, facilities currently or previously used for 
activities authorized under the OCS Lands Act.


Sec.  285.101  What is the purpose of this part?

    The purpose of this part is to:
    (a) Inform you and third parties of your obligations when you 
undertake activities authorized in this part and 30 CFR parts 585 and 
586; and
    (b) Ensure that renewable energy activities on the OCS and 
activities involving the alternate use of OCS facilities for energy- or 
marine-related purposes are conducted in a safe and environmentally 
sound manner, in conformance with the requirements of subsection 8(p) 
of the OCS Lands Act, other applicable laws and regulations, and the 
terms of your lease, ROW grant, RUE grant, or Alternate Use RUE grant.


Sec.  285.102  What are BSEE's responsibilities under this part?

    (a) BSEE will ensure that any activities authorized in this part 
and 30 CFR parts 585 and 586 are carried out in a manner that provides 
for:
    (1) Safety;
    (2) Protection of the environment;
    (3) Prevention of waste;
    (4) Conservation of the natural resources of the OCS;
    (5) Coordination with relevant Federal agencies (including, in 
particular, those agencies involved in planning activities that are 
undertaken to avoid conflicts among users and maximize the economic and 
ecological benefits of the OCS, including multifaceted spatial planning 
efforts);
    (6) Protection of national security interests of the United States;
    (7) Protection of the rights of other authorized users of the OCS; 
and
    (8) Oversight, inspection, research, monitoring, and enforcement of 
activities authorized by a lease or grant issued under 30 CFR parts 585 
or 586.
    (b) BSEE will require compliance with all applicable laws, 
regulations, other requirements, and the terms of your lease or grant 
issued under 30 CFR parts 585 or 586, and approved plans. BSEE will 
approve, disapprove, or approve with conditions any applications or 
other documents submitted to BSEE for approval under the provisions of 
this part.
    (c) Unless otherwise provided in this part, BSEE may give oral 
directives or decisions whenever prior BSEE approval is required under 
this part. BSEE will document in writing any such oral directives 
within 10 business days.
    (d) BSEE will establish practices and procedures to govern the 
collection of all payments due under this part to the Federal 
Government, including any cost recovery fees and other fees or 
payments. BSEE will do this in accordance with the terms of this part, 
the leasing notice, the lease or grant under 30 CFR parts 585 or 586, 
and applicable Office of Natural Resources Revenue (ONRR) regulations 
or guidance.


Sec.  285.103  When may BSEE prescribe or approve departures from the 
regulations in this part?

    (a) BSEE may prescribe or approve departures from these regulations 
when departures are necessary to:
    (1) Facilitate the appropriate activities on a lease or grant;
    (2) Conserve natural resources;
    (3) Protect life (including human and wildlife), property, or the 
marine, coastal, or human environment; or
    (4) Protect sites, structures, or objects of historical or 
archaeological significance.
    (b) Any departure approved under this section and its rationale 
must:
    (1) Be consistent with subsection 8(p) of the OCS Lands Act;
    (2) Protect the environment and the public health and safety to the 
same degree as if there was no approved departure from the regulations;
    (3) Not impair the rights of third parties; and
    (4) Be documented in writing.


Sec.  285.104  [Reserved]


Sec.  285.105  What are my responsibilities under this part?

    As a lessee, applicant, operator, or holder of a ROW grant, RUE 
grant, or Alternate Use RUE grant, you must:
    (a) Design your projects and conduct all activities in a manner 
that ensures safety and will not cause undue harm or damage to natural 
resources, including their physical, atmospheric, and biological 
components to the extent practicable; and take measures to prevent 
unauthorized discharge of pollutants including marine trash and debris 
into the offshore environment.
    (b) Submit requests, applications, notices, modifications, and 
supplemental information to BSEE as required by this part;
    (c) Follow up, in writing, any oral request or notification you 
made, within 3 business days;
    (d) Comply with the terms, conditions, and provisions of all 
reports and notices submitted to BSEE, and of all plans, revisions, and 
other approvals, as provided in this part and in 30 CFR parts 585 and 
586;
    (e) Make all applicable payments on time;
    (f) Comply with the DOI's nonprocurement debarment regulations at 2 
CFR part 1400;
    (g) Include the requirement to comply with 2 CFR part 1400 in all 
contracts and transactions related to a lease or grant under this part;
    (h) Conduct all activities authorized by the lease or grant in a 
manner consistent with the provisions of subsection 8(p) of the OCS 
Lands Act;
    (i) Compile, retain, and make available to BSEE representatives, 
within the time specified by BSEE, any data and information related to 
the site assessment, design, and operations of your project; and
    (j) Respond to requests from the Director in a timely manner.


Sec.  Sec.  285.106-285.109  [Reserved]


Sec.  285.110  How do I submit applications, reports, or notices 
required by this part?

    (a) You must submit all applications, reports, or notices required 
by this part to BSEE at the following address: Renewable Energy Program 
Coordinator, Bureau of Safety and Environmental Enforcement, 45600 
Woodland Road, Sterling, VA 20166.
    (b) Unless otherwise stated, you must submit one paper copy and one 
electronic copy of all applications, reports, or notices required by 
this part.


Sec.  285.111  When and how does BSEE charge me processing fees on a 
case-by-case basis?

    (a) BSEE will charge a processing fee on a case-by-case basis under 
the procedures in this section with regard to any application or 
request under this part if we decide at any time that the preparation 
of a particular document or study is necessary for the application or 
request and it will have a unique processing cost.
    (1) Processing costs will include contract oversight and efforts to 
review and approve documents prepared by contractors, whether the 
contractor is paid directly by the applicant or through BSEE.
    (2) We may apply a standard overhead rate to direct processing 
costs.
    (b) We will assess the ongoing processing fee for each individual 
application or request according to the following procedures:
    (1) Before we process your application or request, we will give you 
a written estimate of the proposed fee based on reasonable processing 
costs.
    (2) You may comment on the proposed fee.
    (3) You may:
    (i) Ask for our approval to perform, or to directly pay a 
contractor to perform, all or part of any document, study, or

[[Page 6416]]

other activity according to standards we specify, thereby reducing our 
costs for processing your application or request; or
    (ii) Ask to pay us to perform, or contract for, all or part of any 
document, study, or other activity.
    (4) We will then give you the final estimate of the processing fee 
amount with payment terms and instructions after considering your 
comments and any BSEE-approved work you will do.
    (i) If we encounter higher or lower processing costs than 
anticipated, we will re-estimate our reasonable processing costs 
following the procedures in paragraphs (b)(1) through (4) of this 
section, but we will not stop ongoing processing unless you do not pay 
in accordance with paragraph (b)(5) of this section.
    (ii) Once processing is complete, we will refund to you the amount 
of money that we did not spend on processing costs.
    (5)(i) Consistent with the payment and billing terms provided in 
the final estimate, we will periodically estimate what our reasonable 
processing costs will be for a specific period and will bill you for 
that period. Payment is due to us 30 days after you receive your bill. 
We will stop processing your document if you do not pay the bill by the 
date payment is due.
    (ii) If a periodic payment turns out to be more or less than our 
reasonable processing costs for the period, we will adjust the next 
billing accordingly or make a refund. Do not deduct any amount from a 
payment without our prior written approval.
    (6) You must pay the entire fee before we will issue the final 
document or take final action on your application or request.
    (7) You may appeal our estimated processing costs in accordance 
with the regulations in 43 CFR part 4. We will not process the document 
further until the appeal is resolved, unless you pay the fee under 
protest while the appeal is pending. If the appeal results in a 
decision changing the proposed fee, we will adjust the fee in 
accordance with paragraph (b)(5)(ii) of this section. If we adjust the 
fee downward, we will not pay interest.


Sec.  285.112  Definitions.

    Terms used in this part have the meanings as defined in this 
section:
    Affected State means with respect to any activities proposed, 
conducted, or approved under this part, any coastal State--
    (1) That is, or is proposed to be, the site of gathering, 
transmitting, or distributing energy or is otherwise receiving, 
processing, refining, or transshipping products, or services derived 
from activities approved under this part;
    (2) That is used, or is scheduled to be used, as a support base for 
activities approved under this part; or
    (3) In which there is a reasonable probability of significant 
effect on land or water uses from activities approved under this part.
    Alternate Use refers to the energy- or marine-related use of an 
existing OCS facility for activities not otherwise authorized by this 
title or other applicable law.
    Alternate Use RUE means a right-of-use and easement issued for 
activities authorized under subpart J of this part or part 586.
    Archaeological resource means any material remains of human life or 
activities that are at least 50 years of age and that are of 
archaeological interest (i.e., which are capable of providing 
scientific or humanistic understanding of past human behavior, cultural 
adaptation, and related topics through the application of scientific or 
scholarly techniques, such as controlled observation, contextual 
measurement, controlled collection, analysis, interpretation, and 
explanation).
    BOEM means the Bureau of Ocean Energy Management of the Department 
of the Interior.
    BSEE means the Bureau of Safety and Environmental Enforcement of 
the Department of the Interior.
    Certified Verification Agent (CVA) means an individual or 
organization, experienced in the design, fabrication, and installation 
of offshore marine facilities or structures, who will conduct specified 
third-party reviews, inspections, and verifications in accordance with 
this part.
    Commercial activities mean, for renewable energy leases and grants, 
all activities associated with the generation, storage, or transmission 
of electricity or other energy product from a renewable energy project 
on the OCS, and for which such electricity or other energy product is 
intended for distribution, sale, or other commercial use, except for 
electricity or other energy product distributed or sold pursuant to 
technology-testing activities on a limited lease. This term also 
includes activities associated with all stages of development, 
including initial site characterization and assessment, facility 
construction, and project decommissioning.
    Commercial lease means a lease issued under 30 CFR part 585 that 
specifies the terms and conditions under which a person can conduct 
commercial activities.
    Commercial operations mean the generation of electricity or other 
energy product for commercial use, sale, or distribution on a 
commercial lease.
    Decommissioning means removing BOEM and BSEE approved facilities 
and returning the site of the lease or grant to a condition that meets 
the requirements under subpart I of this part and 30 CFR part 585.
    Director means the Director of the Bureau of Safety and 
Environmental Enforcement (BSEE), of the U.S. Department of the 
Interior, or an official authorized to act on the Director's behalf.
    Facility means an installation that is permanently or temporarily 
attached to the seabed of the OCS. Facilities include any structures; 
devices; appurtenances; gathering, transmission, and distribution 
cables; pipelines; and permanently moored vessels. Any group of OCS 
installations interconnected with walkways, or any group of 
installations that includes a central or primary installation with one 
or more satellite or secondary installations, is a single facility. 
BOEM and BSEE may decide that the complexity of the installations 
justifies their classification as separate facilities.
    Grant means a right-of-way, right-of-use and easement, or alternate 
use right-of-use and easement issued under the provisions of 30 CFR 
parts 585 or 586.
    Human environment means the physical, social, and economic 
components, conditions, and factors that interactively determine the 
state, condition, and quality of living conditions, employment, and 
health of those affected, directly or indirectly, by activities 
occurring on the OCS.
    Lease means an agreement authorizing the use of a designated 
portion of the OCS for activities allowed under this part or 30 CFR 
part 585. The term also means the area covered by that agreement, when 
the context requires.
    Lessee means the holder of a lease, a BOEM-approved assignee, and, 
when describing the conduct required of parties engaged in activities 
on the lease, it also refers to the operator and all persons authorized 
by the holder of the lease or operator to conduct activities on the 
lease.
    Limited lease means a lease issued under 30 CFR part 585 that 
specifies the terms and conditions under which a person may conduct 
activities on the OCS that support the production of energy, but do not 
result in the production of electricity or other energy product for 
sale, distribution, or other

[[Page 6417]]

commercial use exceeding a limit specified in the lease.
    Natural resources include, without limiting the generality thereof, 
renewable energy, oil, gas, and all other minerals (as defined in 
section 2(q) of the OCS Lands Act), and marine animal and marine plant 
life.
    Operator means the individual, corporation, or association having 
control or management of activities on the lease or grant issued under 
30 CFR parts 585 or 586. The operator may be a lessee, grant holder, or 
a contractor designated by the lessee or holder of a grant issued under 
30 CFR parts 585 or 586.
    Outer Continental Shelf (OCS) means all submerged lands lying 
seaward and outside of the area of lands beneath navigable waters, as 
defined in section 2 of the Submerged Lands Act (43 U.S.C. 1301), whose 
subsoil and seabed appertain to the United States and are subject to 
its jurisdiction and control.
    Person means, in addition to a natural person, an association 
(including partnerships and joint ventures); a Federal agency; a State; 
a political subdivision of a State; a Native American Tribal 
government; or a private, public, or municipal corporation.
    Project, for the purposes of defining the source of revenues to be 
shared, means a lease ROW, RUE, or Alternate Use RUE on which the 
activities authorized under this part or 30 CFR parts 585 or 586 are 
conducted on the OCS. The term ``project'' may be used elsewhere in 
this rule to refer to these same authorized activities, the facilities 
used to conduct these activities, or to the geographic area of the 
project, i.e., the project area.
    Project easement means an easement to which, upon approval of your 
Construction and Operations Plan (COP) or General Activities Plan 
(GAP), you are entitled as part of the lease for the purpose of 
installing, gathering, transmission, and distribution cables, 
pipelines, and appurtenances on the OCS as necessary for the full 
enjoyment of the lease.
    Renewable energy means energy resources other than oil and gas and 
minerals as defined in 30 CFR part 580. Such resources include, but are 
not limited to, wind, solar, and ocean waves, tides, and current.
    Revenues mean bonuses, rents, operating fees, and similar payments 
made in connection with a project or project area. It does not include 
administrative fees such as those assessed for cost recovery, civil 
penalties, and forfeiture of financial assurance.
    Right-of-use and easement (RUE) grant means an easement issued by 
BOEM under 30 CFR parts 585 or 586 that authorizes use of a designated 
portion of the OCS to support activities on a lease or other use 
authorization for renewable energy activities. The term also means the 
area covered by the authorization.
    Right-of-way (ROW) grant means an authorization issued by BOEM 
under 30 CFR part 585 to use a portion of the OCS for the construction 
and use of a cable or pipeline for the purpose of gathering, 
transmitting, distributing, or otherwise transporting electricity or 
other energy product generated or produced from renewable energy, but 
does not constitute a project easement under 30 CFR part 585. The term 
also means the area covered by the authorization.
    Secretary means the Secretary of the Interior or an official 
authorized to act on the Secretary's behalf.
    Significant archaeological resource means an archaeological 
resource that meets the criteria of significance for eligibility for 
listing in the National Register of Historic Places, as defined in 36 
CFR 60.4, or its successor.
    Site assessment activities mean those initial activities conducted 
to characterize a site on the OCS, such as resource assessment surveys 
(e.g., meteorological and oceanographic) or technology testing, 
involving the installation of bottom-founded facilities.
    We, us, and our refer to the Bureau of Safety and Environmental 
Enforcement of the Department of the Interior, or its possessive, 
depending on the context.
    You and your means an applicant, lessee, the operator, or 
designated operator, ROW grant holder, RUE grant holder, or Alternate 
Use RUE grant holder under 30 CFR parts 585 or 586, or the designated 
agent of any of these, or the possessive of each, depending on the 
context. The terms you and your also include contractors and 
subcontractors of the entities specified in the preceding sentence.


Sec.  285.113  How will data and information obtained by BSEE under 
this part be disclosed to the public?

    (a) BSEE will make data and information available in accordance 
with the requirements and subject to the limitations of the Freedom of 
Information Act (FOIA) (5 U.S.C. 552) and the regulations contained in 
43 CFR part 2.
    (b) BSEE will not release such data and information that we have 
determined is exempt from disclosure under exemption 4 of FOIA. We will 
review such data and information and objections of the submitter by the 
following schedule to determine whether release at that time will 
result in substantial competitive harm or disclosure of trade secrets.

------------------------------------------------------------------------
                                             Then BSEE will review data
            If you have a . . .             and information for possible
                                                      release:
------------------------------------------------------------------------
(1) Commercial lease......................  At the earlier of:
                                            (i) 3 years after the
                                             initiation of commercial
                                             generation; or
                                            (ii) 3 years after the lease
                                             terminates.
(2) Limited lease.........................  At 3 years after the lease
                                             terminates.
(3) ROW or RUE grant......................  At the earliest of:
                                            (i) 10 years after the
                                             approval of the grant;
                                            (ii) Grant termination; or
                                            (iii) 3 years after the
                                             completion of construction
                                             activities.
------------------------------------------------------------------------

    (c) After considering any objections from the submitter, if we 
determine that release of such data and information will result in:
    (1) No substantial competitive harm or disclosure of trade secrets, 
then the data and information will be released.
    (2) Substantial competitive harm or disclosure of trade secrets, 
then the data and information will not be released at that time but 
will be subject to further review every 3 years thereafter.


Sec.  285.114  Paperwork Reduction Act statements--information 
collection.

    (a) The Office of Management and Budget (OMB) has approved the 
information collection requirements in this part under 44 U.S.C. 3501, 
et seq., and assigned OMB Control Number xxxx-xxxx (expiration MONTH 
xx, xxxx). The table in paragraph (e) of this section lists the 
subparts in the rule requiring the information and its title, 
summarizes the reasons for collecting the information, and summarizes 
how BSEE uses the information.
    (b) Respondents are primarily renewable energy applicants, lessees, 
ROW grant holders, RUE grant holders, Alternate Use RUE grant holders, 
and operators. The requirement to respond to the information collection 
in this part is mandated under subsection 8(p) of the OCS Lands Act. 
Some responses are also required to obtain or retain a benefit, or may 
be voluntary.
    (c) The Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) 
requires us to inform the public that an agency 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.
    (d) Comments regarding any aspect of the collections of information 
under this

[[Page 6418]]

part, including suggestions for reducing the burden, should be sent to 
the Information Collection Clearance Officer, Bureau of Safety and 
Environmental Enforcement, 45600 Woodland Road, Sterling, VA 20166.
    (e) BSEE is collecting this information for the reasons given in 
the following table:

------------------------------------------------------------------------
                                     Reasons for collecting information
   30 CFR 285 subpart and title                 and how used
------------------------------------------------------------------------
(1) Subpart A--General Provisions.  To inform BSEE of actions taken to
                                     comply with general operational
                                     requirements on the OCS. To ensure
                                     that operations on the OCS meet
                                     statutory and regulatory
                                     requirements, are safe and protect
                                     the environment, and result in
                                     diligent development on OCS leases.
(2) Subpart D--Lease and Grant      To ensure compliance with
 Administration.                     regulations pertaining to a lease
                                     or grant, and suspension of leases
                                     and grants.
(3)Subpart F--Information           To enable BSEE to comply with
 Requirements.                       Federal laws to ensure the safety
                                     of the environment on the OCS.
(4) Subpart G--Facility Design,     To enable BSEE to review the final
 Fabrication, and Installation.      design, fabrication, and
                                     installation of facilities on a
                                     lease or grant to ensure that these
                                     facilities are designed,
                                     fabricated, and installed according
                                     to appropriate standards in
                                     compliance with BSEE provisions,
                                     and where applicable, the approved
                                     plan.
(5) Subpart H--Environmental and    To ensure that lease and grant
 Safety Management, Inspections,     operations are conducted in a
 and Facility Assessments for        manner that is safe and protects
 Activities Conducted Under SAPs,    the environment. To ensure
 COPs, and GAPs.                     compliance with other Federal laws,
                                     these regulations, the lease or
                                     grant, and approved plans.
(6) Subpart I--Decommissioning....  To determine that decommissioning
                                     activities comply with regulatory
                                     requirements and approvals. To
                                     ensure that site clearance and
                                     platform or pipeline removal are
                                     properly performed to protect
                                     marine life and the environment and
                                     do not conflict with other users of
                                     the OCS.
(7) Subpart J--Rights of Use and    To enable BSEE to review information
 Easement for Energy- and Marine-    regarding the design, installation,
 Related Activities Using Existing   and operation of RUEs on the OCS,
 OCS Facilities.                     to ensure that RUE operations are
                                     safe and protect the human, marine,
                                     and coastal environment. To ensure
                                     compliance with other Federal laws,
                                     these regulations, the RUE grant,
                                     and where applicable, the approved
                                     plan.
------------------------------------------------------------------------

Sec.  285.115  Documents incorporated by reference.

    Certain material is incorporated by reference into this part with 
the approval of the Director of the Federal Register under 5 U.S.C. 
552(a) and 1 CFR part 51. All approved incorporation by reference (IBR) 
material is available for inspection at BSEE and at the National 
Archives and Records Administration (NARA). Contact BSEE at: BSEE, 
45600 Woodland Road, Sterling, Virginia 20166, phone: 703-787-1665. For 
information on the availability of this material at NARA, visit 
www.archives.gov/federal-register/cfr/ibr-locations.html or email 
[email protected]. The material is available from the American 
Petroleum Institute (API), 200 Massachusetts Avenue NW, Suite 1100, 
Washington, DC 20001-5571; phone (202) 682-8000; website: www.api.org 
or https://publications.api.org.
    (a) API RP 2A-WSD, Recommended Practice for Planning, Designing and 
Constructing Fixed Offshore Platforms--Working Stress Design; Twenty-
first Edition, December 2000; Errata and Supplement 1, December 2002; 
Errata and Supplement 2, September 2005; Errata and Supplement 3, 
October 2007. IBR approved for Sec.  285.825(a), (b).
    (b) [Reserved]


Sec.  285.116  Requests for information on the state of the offshore 
renewable energy industry.

    (a) The Director may, from time to time, and at the Director's 
discretion, solicit information from industry and other relevant 
stakeholders (including State and local agencies), as necessary, to 
evaluate the state of the offshore renewable energy industry, including 
the identification of potential challenges or obstacles to its 
continued development. Such requests for information may relate to the 
identification of environmental, technical, regulatory, or economic 
matters that promote or detract from continued development of renewable 
energy technologies on the OCS. From the information received, the 
Director may evaluate potential refinements to the OCS alternative 
energy program that promote development of the industry in a safe and 
environmentally responsible manner.
    (b) BSEE will publish such requests for information by the Director 
in the Federal Register.


Sec.  285.117  [Reserved]


Sec.  285.118  What are my appeal rights?

    (a) Any party adversely affected by a BSEE official's final 
decision or order issued under the regulations of this part may appeal 
that decision or order to the Interior Board of Land Appeals. The 
appeal must conform with the procedures found in 30 CFR part 290 and 43 
CFR part 4, subpart E.
    (b) A decision will remain in full force and effect during the 
period in which an appeal may be filed and during an appeal, unless a 
stay is granted pursuant to 43 CFR part 4.

Subparts B and C [Reserved]

Subpart D--Lease and Grant Administration

    Noncompliance and Cessation Orders


Sec.  285.400  What happens if I fail to comply with this part?

    (a) BSEE may take appropriate corrective action under this part if 
you fail to comply with applicable provisions of Federal law, the 
regulations in this part, other applicable regulations, any order of 
the Director, the provisions of a lease or grant issued under 30 CFR 
parts 585 or 586, or the requirements of an approved plan or other 
approval under this part or 30 CFR parts 585 or 586.
    (b) BSEE may issue to you a notice of noncompliance if we determine 
that there has been a violation of the regulations in this part, any 
order of the Director, or any provision of your lease, grant or other 
approval issued under this part or 30 CFR parts 585 or 586. When 
issuing a notice of noncompliance, BSEE will serve you at your last 
known address.
    (c) A notice of noncompliance will tell you how you failed to 
comply with this part, any order of either Director, and/or the 
provisions of your lease, grant or other approval, and will specify 
what you must do to correct the noncompliance and the time limits 
within which you must act.
    (d) Failure of a lessee, operator, or grant holder under this part 
to take the actions specified in a notice of

[[Page 6419]]

noncompliance within the time limit specified provides the basis for 
BSEE to issue a cessation order as provided in Sec.  285.401, and/or a 
cancellation of the lease or grant as provided in Sec.  285.437.
    (e) If BSEE determines that any incident of noncompliance poses an 
imminent threat of serious or irreparable damage to natural resources; 
life (including human and wildlife); property; the marine, coastal, or 
human environment; or sites, structures, or objects of historical or 
archaeological significance, BSEE may include with its notice of 
noncompliance an order directing you to take immediate remedial action 
to alleviate threats and to abate the violation and, when appropriate, 
a cessation order.
    (f) BSEE may assess civil penalties, as authorized by section 24 of 
the OCS Lands Act, if you fail to comply with any provision of this 
part, or any term of a lease, grant, or order issued under the 
authority of this part or 30 CFR parts 585 or 586, after notice of such 
failure and expiration of any reasonable period allowed for corrective 
action. Civil penalties will be determined and assessed in accordance 
with the procedures set forth in 30 CFR part 550, subpart N.
    (g) You may be subject to criminal penalties as authorized by 
section 24 of the OCS Lands Act.


Sec.  285.401  When may BSEE issue a cessation order?

    (a) BSEE may issue a cessation order during the term of your lease 
or grant when you fail to comply with an applicable law; regulation; 
order; or provision of a lease, grant, plan, or BSEE or BOEM approval. 
Except as provided in Sec.  285.400(e), BSEE will allow you a period of 
time to correct any noncompliance before issuing an order to cease 
activities.
    (b) A cessation order will set forth what measures you are required 
to take, including reports you are required to prepare and submit to 
BSEE, to receive approval to resume activities on your lease or grant.


Sec.  285.402  What is the effect of a cessation order?

    (a) Upon receiving a cessation order, you must cease all activities 
on your lease or grant, as specified in the order. BSEE may authorize 
certain activities during the period of the cessation order.
    (b) A cessation order will last for the period specified in the 
order or as otherwise specified by BSEE. If BSEE determines that the 
circumstances giving rise to the cessation order cannot be resolved 
within a reasonable time period, the Secretary may initiate 
cancellation of your lease or grant, as provided in Sec.  285.437.
    (c) A cessation order does not extend the term of your lease or 
grant for the period you are prohibited from conducting activities.
    (d) You must continue to make all required payments on your lease 
or grant during the period a cessation order is in effect.


Sec.  285.403-285.405  [Reserved]

Responsibility for Fulfilling Obligations


Sec.  285.406  Who is responsible for fulfilling lease and grant 
obligations?

    (a) When you are not the sole lessee or grantee, you and your co-
lessee(s) or co-grantee(s) are jointly and severally responsible for 
fulfilling your obligations under the lease or grant and the provisions 
of this part or 30 CFR parts 585 or 586, unless otherwise provided in 
this part.
    (b) If your designated operator fails to fulfill any of your 
obligations under the lease or grant and this part or 30 CFR parts 585 
or 586, BSEE may require you or any or all of your co-lessees or co-
grantees to fulfill those obligations or other operational obligations 
under the OCS Lands Act, the lease, grant, or the regulations.
    (c) Whenever the regulations in this part or 30 CFR parts 585 or 
586 require the lessee or grantee to conduct an activity in a 
prescribed manner, the lessee or grantee and operator (if one has been 
designated) are jointly and severally responsible for complying with 
the regulations.


Sec.  285.407-285.414  [Reserved]

Lease or Grant Suspension


Sec.  285.415  What is a lease or grant suspension?

    (a) A suspension is an interruption of the term of your lease or 
grant that may occur as ordered by BSEE, as provided in Sec.  285.417; 
or as approved or ordered by BOEM, as provided in 30 CFR 585.416 and 
585.417.
    (b) A suspension extends the term of your lease or grant for the 
length of time the suspension is in effect.
    (c) Activities may not be conducted on your lease or grant during 
the period of a suspension except as expressly authorized under the 
terms of the suspension.


Sec.  285.416  [Reserved]


Sec.  285.417  When may BSEE order a suspension?

    (a) BSEE may order a suspension under the following circumstances:
    (1) When necessary to comply with judicial decrees prohibiting some 
or all activities under your lease; or
    (2) When continued activities pose an imminent threat of serious or 
irreparable harm or damage to natural resources; life (including human 
and wildlife); property; the marine, coastal, or human environment; or 
sites, structures, or objects of historical or archaeological 
significance.
    (b) If BSEE orders a suspension under paragraph (a)(2) of this 
section, and if you wish to resume activities, we may require you to 
conduct a site-specific study that evaluates the cause of the harm, the 
potential damage, and the available mitigation measures. Other 
requirements and actions may occur:
    (1) You may be required to pay for the study;
    (2) You must furnish one paper copy and one electronic copy of the 
study and results to us;
    (3) We will make the results available to other interested parties 
and to the public; and
    (4) We will use the results of the study and any other information 
that become available:
    (i) To decide if the suspension order can be lifted; and
    (ii) To determine any actions that you must take to mitigate or 
avoid any damage to natural resources; life (including human and 
wildlife); property; the marine, coastal, or human environment; or 
sites, structures, or objects of historical or archaeological 
significance.


Sec.  285.418  How will BSEE issue a suspension?

    (a) BSEE will issue a suspension order orally or in writing.
    (b) BSEE will send you a written suspension order as soon as 
practicable after issuing an oral suspension order.
    (c) The written order will explain the reasons for its issuance and 
describe the effect of the suspension order on your lease or grant and 
any associated activities. BSEE may authorize certain activities during 
the period of the suspension, as set forth in the suspension order.


Sec.  285.419  What are my immediate responsibilities if I receive a 
suspension order?

    You must comply with the terms of a suspension order upon receipt 
and take any action prescribed within the time set forth therein.


Sec.  285.420  What effect does a suspension order have on my payments?

    If BSEE orders a suspension, as provided in Sec.  285.417, your 
payments, as appropriate for the term that is

[[Page 6420]]

suspended, will be waived during the suspension period.


Sec.  285.421  How long will a suspension be in effect?

    A suspension will be in effect for the period specified by BSEE. If 
BSEE determines that the circumstances giving rise to a suspension 
ordered under Sec.  285.417 cannot be resolved within 5 years, the 
Secretary may initiate cancellation of the lease or grant, as provided 
in Sec.  285.437.


Sec.  285.422-285.432  [Reserved]

Lease or Grant Termination


Sec.  285.433  What must I do after my lease or grant terminates?

    (a) After your lease or grant terminates, you must:
    (1) Make all payments due; and
    (2) Perform any other outstanding obligations under the lease or 
grant within 6 months.
    (b) Within 2 years following termination of a lease or grant, you 
must remove or dispose of all facilities, installations, and other 
devices permanently or temporarily attached to the seabed on the OCS in 
accordance with your Plan approved by BOEM under 30 CFR part 585, 
subpart F, and your application approved by BSEE under subpart I of 
this part.
    (c) If you fail to comply with your approved decommissioning plan 
or application:
    (1) BOEM may call for the forfeiture of your financial assurance; 
and
    (2) You remain liable for removal or disposal costs and responsible 
for accidents or damages that might result from such failure.


Sec.  Sec.  285.434-285.436  [Reserved]

Lease or Grant Cancellation


Sec.  285.437  When can my lease or grant be canceled?

    (a) The Secretary will cancel any lease or grant issued under 30 
CFR parts 585 or 586 upon proof that it was obtained by fraud or 
misrepresentation, and after notice and opportunity to be heard has 
been afforded to the lessee or grant holder.
    (b) The Secretary may cancel any lease or grant issued under 30 CFR 
parts 585 or 586 when:
    (1) The Secretary determines after notice and opportunity for a 
hearing that, with respect to the lease or grant that would be 
canceled, the lessee or grantee has failed to comply with any 
applicable provision of the OCS Lands Act or these regulations; any 
order of the Director; or any term, condition or stipulation contained 
in the lease or grant, and that the failure to comply continued 30 days 
(or other period BSEE specifies) after you receive notice from BSEE. 
The Secretary will mail a notice by registered or certified letter to 
the lessee or grantee at its record post office address;
    (2) Required by national security or defense; or
    (3) The Secretary determines after notice and opportunity for a 
hearing that continued activity under the lease or grant:
    (i) Would cause serious harm or damage to natural resources; life 
(including human and wildlife); property; the marine, coastal, or human 
environment; or sites, structures, or objects of historical or 
archaeological significance;
    (ii) That the threat of harm or damage would 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 the lease or grant in force.

Subpart E [Reserved]

Subpart F--Information Requirements


Sec.  Sec.  285.600-285.601  [Reserved]


Sec.  285.602  What records must I maintain?

    Until BOEM releases your financial assurance under 30 CFR 585.534, 
you must maintain and provide to BSEE, upon request, all data and 
information related to compliance with required terms and conditions of 
your SAP, COP, or GAP.


Sec.  Sec.  285.603-285.613  [Reserved]

Activities Under an Approved SAP


Sec.  285.614  When may I begin conducting activities under my approved 
SAP?

    (a) You may begin conducting the activities approved in your SAP 
following BOEM approval of your SAP.
    (b) If you are installing a facility or a combination of facilities 
deemed by BOEM to be complex or significant, as provided in 30 CFR 
585.613(a)(1), you must comply with the requirements of subpart G of 
this part and submit your safety management system required by Sec.  
285.810 before construction may begin.


Sec.  285.615  What other reports or notices must I submit to BSEE 
under my approved SAP?

    (a) You must notify BSEE in writing within 30 days of completing 
installation activities approved in your SAP.
    (b) You must submit a certification of compliance annually (or 
other frequency as determined by BOEM) with those terms and conditions 
of your SAP that BOEM identifies under 30 CFR 585.613(e)(1). Together 
with your certification, you must submit:
    (1) Summary reports that show compliance with the terms and 
conditions which require certification; and
    (2) A statement identifying and describing any mitigation measures 
and monitoring methods and their effectiveness. If you identified 
measures that were not effective, you must include your recommendations 
for new mitigation measures or monitoring methods.


Sec.  Sec.  285.616-285.630  [Reserved]

Activities Under an Approved COP


Sec.  285.631  When must I initiate activities under an approved COP?

    After your COP is approved, you must commence construction by the 
date given in the construction schedule required by 30 CFR 
585.626(b)(21), and included as a part of your approved COP, unless 
BOEM approves a deviation from your schedule.


Sec.  285.632  What documents must I submit before I may construct and 
install facilities under my approved COP?

    (a) You must submit to BSEE the documents listed in the following 
table:

------------------------------------------------------------------------
                                                           Requirements
                        Document:                          are found in:
------------------------------------------------------------------------
(1) Facility Design Report..............................  Sec.   285.701
(2) Fabrication and Installation Report.................  Sec.   285.702
------------------------------------------------------------------------

    (b) You must submit your safety management system, as required by 
Sec.  285.810.
    (c) These activities must fall within the scope of your approved 
COP. If they do not fall within the scope of your approved COP, you 
will be required to submit a revision to your COP, under 30 CFR 
585.634, for BOEM approval before commencing the activity.


Sec.  285.633  How do I comply with my COP?

    (a) You must submit a certification of compliance annually (or 
other frequency as determined by BOEM) with certain terms and 
conditions of your COP that BOEM identifies. Together with your 
certification, you must submit:
    (1) Summary reports that show compliance with the terms and 
conditions which require certification; and
    (2) A statement identifying and describing any mitigation measures 
and monitoring methods, and their

[[Page 6421]]

effectiveness. If you identified measures that were not effective, then 
you must make recommendations for new mitigation measures or monitoring 
methods.
    (b) As provided at Sec.  285.105(i), BSEE may require you to submit 
any supporting data and information.


Sec.  Sec.  285.634-285.635  [Reserved]


Sec.  285.636  What notices must I provide BSEE following approval of 
my COP?

    You must notify BSEE in writing of the following events, within the 
time periods provided:
    (a) No later than 30 days after commencing activities associated 
with the placement of facilities on the lease area under a Fabrication 
and Installation Report.
    (b) No later than 30 days after completion of construction and 
installation activities under a Fabrication and Installation Report.
    (c) At least 7 days before commencing commercial operations.


Sec.  285.637  When may I commence commercial operations on my 
commercial lease?

    If you are conducting activities on your lease that:
    (a) Do not require a FERC license (e.g., wind), then you may 
commence commercial operations 30 days after the CVA or project 
engineer has submitted to BSEE the final Fabrication and Installation 
Report for the fabrication and installation review, as provided in 
Sec.  285.708.
    (b) Require a FERC license or exemption, then you may commence 
commercial operations when permitted by the terms of your license or 
exemption.


Sec.  285.638  What must I do upon completion of my commercial 
operations as approved in my COP or FERC license?

    (a) Upon completion of your approved activities under your COP, you 
must initiate the decommissioning process as set forth in subpart I of 
this part. You must submit your decommissioning application as provided 
in Sec. Sec.  285.905 and 285.906.
    (b) Upon completion of your approved activities under your FERC 
license, the terms of your FERC license will govern your 
decommissioning activities.


Sec.  Sec.  285.639-285.649  [Reserved]

Activities Under an Approved GAP


Sec.  285.650  When may I begin conducting activities under my GAP?

    After BOEM approves your GAP, you may begin conducting the approved 
activities that do not involve a project easement or the construction 
of facilities on the OCS that BOEM has deemed to be complex or 
significant.


Sec.  285.651  When may I construct complex or significant OCS 
facilities on my limited lease or any facilities on my project easement 
proposed under my GAP?

    If you are applying for a project easement, or installing a 
facility or a combination of facilities on your limited lease deemed by 
BOEM to be complex or significant, as provided in 30 CFR 585.648(a)(1), 
you also must comply with the requirements of subpart G of this part 
and submit your safety management system description required by Sec.  
285.810 before construction may begin.


Sec.  285.652  [Reserved]


Sec.  285.653  What other reports or notices must I submit to BSEE 
under my approved GAP?

    (a) You must notify BSEE in writing within 30 days after completing 
installation activities approved in your GAP
    (b) You must annually (or other frequency as determined by BOEM) 
submit a certification of compliance with those terms and conditions of 
your GAP that BOEM identifies under 30 CFR 585.648(e)(1). Together with 
your certification, you must submit:
    (1) Summary reports that show compliance with the terms and 
conditions which require certification; and
    (2) A statement identifying and describing any mitigation measures 
and monitoring methods and their effectiveness. If you identified 
measures that were not effective, you must include your recommendations 
for new mitigation measures or monitoring methods.


Sec.  Sec.  285.654-285.659  [Reserved]

Subpart G--Facility Design, Fabrication, and Installation

Reports


Sec.  285.700  What reports must I submit to BSEE before installing 
facilities described in my approved SAP, COP, or GAP?

    (a) You must submit the following reports to BSEE before installing 
facilities described in your approved COP (Sec.  285.632(a)) and, when 
required by 30 CFR part 585, your SAP (Sec.  285.614(b)), or GAP (Sec.  
285.651):
    (1) A Facility Design Report; and
    (2) A Fabrication and Installation Report.
    (b) You may begin to fabricate and install the approved facilities 
after BSEE notifies you that it has received your reports and has no 
objections. If BSEE receives the reports, but does not respond with 
objections within 60 days of receipt, or 60 days after BOEM approves 
your SAP, COP, or GAP if you submitted your report with the plan, BSEE 
is deemed not to have objections to the reports, and you may commence 
fabrication and installation of your facility or facilities.
    (c) If BSEE has any objections, we will notify you verbally or in 
writing within 60 days of receipt of the report. Following initial 
notification of objections, BSEE may follow-up with written 
correspondence outlining its specific objections to the report and 
request that certain actions be undertaken. You cannot commence 
activities addressed in such report until you resolve all objections to 
BSEE's satisfaction.


Sec.  285.701  What must I include in my Facility Design Report?

    (a) Your Facility Design Report provides specific details of the 
design of any facilities, including cables and pipelines that are 
outlined in your BOEM-approved SAP, COP, or GAP. Your Facility Design 
Report must demonstrate that your design conforms to your 
responsibilities listed in Sec.  285.105(a). You must include the 
following items in your Facility Design Report:

------------------------------------------------------------------------
                                                              Other
      Required documents           Required contents      requirements
------------------------------------------------------------------------
(1) Cover letter..............  (i) Proposed facility   You must submit
                                 designations;.          1 paper copy
                                (ii) Lease, ROW grant    and 1
                                 or RUE grant number;.   electronic
                                (iii) Area; name and     copy.
                                 block numbers; and.
                                (iv) The type of
                                 facility.

[[Page 6422]]

 
(2) Location plat.............  (i) Latitude and        Your plat must
                                 longitude               be drawn to a
                                 coordinates,            scale of 1 inch
                                 Universal Mercator      equals 100 feet
                                 grid-system             and include the
                                 coordinates, State      coordinates of
                                 plane coordinates in    the lease, ROW
                                 the Lambert or          grant, or RUE
                                 Transverse Mercator     grant block
                                 Projection System;.     boundary lines.
                                (ii) Distances in feet   You must submit
                                 from the nearest        1 paper copy
                                 block lines. These      and 1
                                 coordinates must be     electronic
                                 based on the NAD        copy.
                                 (North American
                                 Datum) 83 datum plane
                                 coordinate system;
                                 and.
                                (iii) The location of
                                 any proposed project
                                 easement..
(3) Front, Side, and Plan View  (i) Facility            Your drawing
 drawings.                       dimensions and          sizes must not
                                 orientation;            exceed 11'' x
                                (ii) Elevations          17''. You must
                                 relative to Mean        submit 1 paper
                                 Lower Low Water; and.   copy and 1
                                (iii) Pile sizes and     electronic
                                 penetration..           copy.
(4) Complete set of structural  The approved for        Your drawing
 drawings.                       construction            sizes must not
                                 fabrication drawings    exceed 11'' x
                                 should be submitted     17''. You must
                                 including, e.g.:        submit 1 paper
                                (i) Cathodic             copy and 1
                                 protection systems;.    electronic
                                (ii) Jacket design;...   copy.
                                (iii) Pile
                                 foundations;.
                                (iv) Mooring and
                                 tethering systems;.
                                (v) Foundations and
                                 anchoring systems;
                                 and.
                                (vi) Associated cable
                                 and pipeline designs.
(5) Summary of environmental    A summary of the        You must submit
 data used for design.           environmental data      1 paper copy
                                 used in the design or   and 1
                                 analysis of the         electronic
                                 facility. Examples of   copy. If you
                                 relevant data include   submitted these
                                 information on:         data as part of
                                (i) Extreme weather;..   your SAP, COP,
                                (ii) Seafloor            or GAP, you may
                                 conditions; and.        reference the
                                (iii) Waves, wind,       plan.
                                 current, tides,
                                 temperature, snow and
                                 ice effects, marine
                                 growth, and water
                                 depth.
(6) Summary of the engineering  (i) Loading             You must submit
 design data.                    information (e.g.,      1 paper copy
                                 live, dead,             and 1
                                 environmental);         electronic
                                (ii) Structural          copy.
                                 information (e.g.,
                                 design-life; material
                                 types; cathodic
                                 protection systems;
                                 design criteria;
                                 fatigue life; jacket
                                 design; deck design;
                                 production component
                                 design; foundation
                                 pilings and
                                 templates, and
                                 mooring or tethering
                                 systems; fabrication
                                 and installation
                                 guidelines); and.
                                (iii) Location of
                                 foundation boreholes
                                 and foundation piles;
                                 and.
                                (iv) Foundation
                                 information (e.g.,
                                 soil stability,
                                 design criteria).
(7) A complete set of design    Self-explanatory.       You must submit
 calculations.                                           1 paper copy
                                                         and 1
                                                         electronic
                                                         copy.
(8) Project-specific studies    All studies pertinent   You must submit
 used in the facility design     to facility design or   1 paper copy
 or installation.                installation, e.g.,     and 1
                                 oceanographic and       electronic
                                 soil reports            copy.
                                 including the results
                                 of the surveys
                                 required in 30 CFR
                                 585.610(b),
                                 585.627(a), or
                                 585.645(a).
(9) Description of the loads    (i) Loads imposed by    You must submit
 imposed on the facility.        jacket;                 1 paper copy
                                (ii) Decks;...........   and 1
                                (iii) Production         electronic
                                 components;.            copy.
                                (iv) Foundations,
                                 foundation pilings
                                 and templates, and
                                 anchoring systems;
                                 and.
                                (v) Mooring or
                                 tethering systems..
(10) Geotechnical Report......  A list of all data      You must submit
                                 from borings and        1 paper copy
                                 recommended design      and 1
                                 parameters.             electronic
                                                         copy.
------------------------------------------------------------------------

    (b) For any floating facility, your design must meet the 
requirements of the U.S. Coast Guard for structural integrity and 
stability (e.g., verification of center of gravity). The design must 
also consider:
    (1) Foundations, foundation pilings and templates, and anchoring 
systems; and
    (2) Mooring or tethering systems.
    (c) You must provide the location of records, as required in Sec.  
285.714(c).
    (d) If you are required to use a CVA, the Facility Design Report 
must include one paper copy of the following certification statement: 
``The design of this structure has been certified by a CVA to be in 
accordance with accepted engineering practices and the approved SAP, 
GAP, or COP as appropriate. The certified design and as-built plans and 
specifications will be on file at (given location).''
    (e) BSEE will withhold trade secrets and commercial or financial 
information that is privileged or confidential from public disclosure 
under exemption 4 of the FOIA and in accordance with the terms of Sec.  
285.113.


Sec.  285.702  What must I include in my Fabrication and Installation 
Report?

    (a) Your Fabrication and Installation Report must describe how your 
facilities will be fabricated and installed in accordance with the 
design criteria identified in the Facility Design Report; your BOEM-
approved SAP, COP, or GAP; and generally accepted industry standards 
and practices. Your Fabrication and Installation Report must 
demonstrate how your facilities will be fabricated and installed in a 
manner that conforms to your responsibilities listed in Sec.  
285.105(a). You must include the following items in your Fabrication 
and Installation Report:

[[Page 6423]]



------------------------------------------------------------------------
                                                              Other
      Required documents           Required contents      requirements
------------------------------------------------------------------------
(1) Cover letter..............  (i) Proposed facility   You must submit
                                 designation, lease,     1 paper copy
                                 ROW grant, or RUE       and 1
                                 grant number;           electronic
                                (ii) Area, name, and     copy.
                                 block number; and.
                                (iii) The type of
                                 facility..
(2) Schedule..................  Fabrication and         You must submit
                                 installation.           1 paper copy
                                                         and 1
                                                         electronic
                                                         copy.
(3) Fabrication information...  The industry standards  You must submit
                                 you will use to         1 paper copy
                                 ensure the facilities   and 1
                                 are fabricated to the   electronic
                                 design criteria         copy.
                                 identified in your
                                 Facility Design
                                 Report.
(4) Installation process        Details associated      You must submit
 information.                    with the deployment     1 paper copy
                                 activities,             and 1
                                 equipment, and          electronic
                                 materials, including    copy.
                                 onshore and offshore
                                 equipment and
                                 support, and
                                 anchoring and mooring
                                 patterns.
(5) Federal, State, and local   Either 1 copy of the    You must submit
 permits (e.g., EPA, Army        permit or information   1 paper copy
 Corps of Engineers).            on the status of the    and 1
                                 application.            electronic
                                                         copy.
(6) Environmental information.  (i) Water discharge;    You must submit
                                (ii) Waste disposal;..   1 paper copy
                                (iii) Vessel             and 1
                                 information; and.       electronic
                                (iv) Onshore waste       copy. If you
                                 receiving treatment     submitted these
                                 or disposal             data as part of
                                 facilities..            your SAP, COP,
                                                         or GAP, you may
                                                         reference the
                                                         plan.
(7) Project easement..........  Design of any cables,   You must submit
                                 pipelines, or           1 paper copy
                                 facilities.             and 1
                                 Information on burial   electronic
                                 methods and vessels.    copy.
------------------------------------------------------------------------

    (b) You must provide the location of records, as required in Sec.  
285.714(c).
    (c) If you are required to use a CVA, the Fabrication and 
Installation Report must include one paper copy of the following 
certification statement: ``The fabrication and installation of this 
structure has been certified by an approved CVA to be in accordance 
with accepted engineering practices and the approved SAP, GAP, or COP 
as appropriate. The certified design and as-built plans and 
specifications will be on file at (given location).''
    (d) BSEE will withhold trade secrets and commercial or financial 
information that is privileged or confidential from public disclosure 
under exemption 4 of the FOIA and in accordance with the terms of Sec.  
285.113.


Sec.  285.703  What reports must I submit for project modifications and 
repairs?

    (a) You must verify and, in a report to us, certify that major 
repairs and major modifications to the project conform to accepted 
engineering practices.
    (1) A major repair is a corrective action involving structural 
members affecting the structural integrity of a portion of or all the 
facility.
    (2) A major modification is an alteration involving structural 
members affecting the structural integrity of a portion of or all the 
facility.
    (b) The report must also identify the location of all records 
pertaining to the major repairs or major modifications, as required in 
Sec.  285.714(c).
    (c) BSEE may require you to use a CVA for project modifications and 
repairs.


Sec.  285.704  [Reserved]

Certified Verification Agent


Sec.  285.705  When must I use a Certified Verification Agent (CVA)?

    You must use a CVA to review and certify the Facility Design 
Report, the Fabrication and Installation Report, and the Project 
Modifications and Repairs Report.
    (a) You must use a CVA to:
    (1) Ensure that your facilities are designed, fabricated, and 
installed in conformance with accepted engineering practices and the 
Facility Design Report and Fabrication and Installation Report;
    (2) Ensure that repairs and major modifications are completed in 
conformance with accepted engineering practices; and
    (3) Provide BSEE immediate reports of all incidents that affect the 
design, fabrication, and installation of the project and its 
components.
    (b) BSEE may waive the requirement that you use a CVA if you can 
demonstrate the following:

------------------------------------------------------------------------
                                               Then BSEE may waive the
       If you demonstrate that . . .          requirement for a CVA for
                                                    the following:
------------------------------------------------------------------------
(1) The facility design conforms to a        The design of your
 standard design that has been used           structure(s).
 successfully in a similar environment, and
 the installation design conforms to
 accepted engineering practices.
(2) The manufacturer has successfully        The fabrication of your
 manufactured similar facilities, and the     structure(s).
 facility will be fabricated in conformance
 with accepted engineering practices.
(3) The installation company has             The installation of your
 successfully installed similar facilities    structure(s).
 in a similar offshore environment, and
 your structure(s) will be installed in
 conformance with accepted engineering
 practices.
(4) Repairs and major modifications will be  The repair or major
 completed in conformance with accepted       modification of your
 engineering practices.                       structure(s).
------------------------------------------------------------------------

    (c) You must submit a request to waive the requirement to use a CVA 
to BSEE in writing with your SAP under 30 CFR 585.610(a)(9), COP under 
30 CFR 585.626(b)(20), or GAP under 30 CFR 585.645(c)(5).
    (1) BSEE will review your request to waive the use of the CVA and 
will notify you of its decision along with BOEM's decision on your SAP, 
COP, or GAP.
    (2) If BSEE does not waive the requirement for a CVA, you may file 
an appeal per Sec.  285.118.

[[Page 6424]]

    (3) If BSEE waives the requirement that you use a CVA, your project 
engineer must perform the same duties and responsibilities as the CVA, 
except as otherwise provided.


Sec.  285.706  How do I nominate a CVA for BSEE approval?

    (a) You must nominate a CVA for BSEE approval as part of your COP 
per 30 CFR 585.626(b)(20), and when required, as part of your SAP per 
30 CFR 585.610(a)(9) or GAP per 30 CFR 585.645(c)(5). You must use a 
CVA to review and certify the Facility Design Report, the Fabrication 
and Installation Report, and the Project Modifications and Repairs 
Report per this subpart. You must specify whether the CVA nomination is 
for the Facility Design Report, Fabrication and Installation Report, 
Project Modifications and Repairs Report, or for any combination of 
these.
    (b) For each CVA that you nominate, you must submit to BSEE a list 
of documents used in your design that you will forward to the CVA and a 
qualification statement that includes the following:
    (1) Previous experience in third-party verification or experience 
in the design, fabrication, installation, or major modification of 
offshore energy facilities;
    (2) Technical capabilities of the individual or the primary staff 
for the specific project;
    (3) Size and type of organization or corporation;
    (4) In-house availability of, or access to, appropriate technology 
(including computer programs, hardware, and testing materials and 
equipment);
    (5) Ability to perform the CVA functions for the specific project 
considering current commitments;
    (6) Previous experience with BOEM and BSEE requirements and 
procedures, if any; and
    (7) The level of work to be performed by the CVA.
    (c) Individuals or organizations acting as CVAs must not function 
in any capacity that will create a conflict of interest, or the 
appearance of a conflict of interest.
    (d) The verification must be conducted by or under the direct 
supervision of registered professional engineers.
    (e) BSEE will approve or disapprove your CVA as part of BOEM's 
review of your COP or, when required, of your SAP or GAP.
    (f) You must nominate a new CVA for BSEE approval if the previously 
approved CVA:
    (1) Is no longer able to serve in a CVA capacity for the project; 
or
    (2) No longer meets the requirements for a CVA set forth in this 
subpart.


Sec.  285.707  What are the CVA's primary duties for facility design 
review?

    If you are required to use a CVA:
    (a) The CVA must use good engineering judgment and practices in 
conducting an independent assessment of the design of the facility. The 
CVA must certify in the Facility Design Report to BSEE that the 
facility is designed to withstand the environmental and functional load 
conditions appropriate for the intended service life at the proposed 
location.
    (b) The CVA must conduct an independent assessment of all proposed:
    (1) Planning criteria;
    (2) Operational requirements;
    (3) Environmental loading data;
    (4) Load determinations;
    (5) Stress analyses;
    (6) Material designations;
    (7) Soil and foundation conditions;
    (8) Safety factors; and
    (9) Other pertinent parameters of the proposed design.
    (c) For any floating facility, the CVA must ensure that any 
requirements of the U.S. Coast Guard for structural integrity and 
stability (e.g., verification of center of gravity), have been met. The 
CVA must also consider:
    (1) Foundations, foundation pilings and templates, and anchoring 
systems; and
    (2) Mooring or tethering systems.


Sec.  285.708  What are the CVA's or project engineer's primary duties 
for fabrication and installation review?

    (a) The CVA or project engineer must do all of the following:
    (1) Use good engineering judgment and practice in conducting an 
independent assessment of the fabrication and installation activities;
    (2) Monitor the fabrication and installation of the facility as 
required by paragraph (b) of this section;
    (3) Make periodic onsite inspections while fabrication is in 
progress and verify the items required by Sec.  285.709;
    (4) Make periodic onsite inspections while installation is in 
progress and satisfy the requirements of Sec.  285.710; and
    (5) Certify in a report that project components are fabricated and 
installed in accordance with accepted engineering practices; your BOEM-
approved COP, SAP, or GAP (as applicable); and the Fabrication and 
Installation Report.
    (i) The report must also identify the location of all records 
pertaining to fabrication and installation, as required in Sec.  
285.714(c); and
    (ii) You may commence commercial operations or other approved 
activities 30 days after BSEE receives that certification report, 
unless BSEE notifies you within that time period of its objections to 
the certification report.
    (b) To comply with paragraph (a)(5) of this section, the CVA or 
project engineer must monitor the fabrication and installation of the 
facility to ensure that it has been built and installed according to 
the Facility Design Report and Fabrication and Installation Report.
    (1) If the CVA or project engineer finds that fabrication and 
installation procedures have been changed or design specifications have 
been modified, the CVA or project engineer must inform you; and
    (2) If you accept the modifications, then you must also inform 
BSEE.


Sec.  285.709  When conducting onsite fabrication inspections, what 
must the CVA or project engineer verify?

    (a) To comply with Sec.  285.708(a)(3), the CVA or project engineer 
must make periodic onsite inspections while fabrication is in progress 
and must verify the following fabrication items, as appropriate:
    (1) Quality control by lessee (or grant holder) and builder;
    (2) Fabrication site facilities;
    (3) Material quality and identification methods;
    (4) Fabrication procedures specified in the Fabrication and 
Installation Report, and adherence to such procedures;
    (5) Welder and welding procedure qualification and identification;
    (6) Structural tolerances specified, and adherence to those 
tolerances;
    (7) Nondestructive examination requirements and evaluation results 
of the specified examinations;
    (8) Destructive testing requirements and results;
    (9) Repair procedures;
    (10) Installation of corrosion-protection systems and splash-zone 
protection;
    (11) Erection procedures to ensure that overstressing of structural 
members does not occur;
    (12) Alignment procedures;
    (13) Dimensional check of the overall structure, including any 
turrets, turret-and-hull interfaces, any mooring line and chain and 
riser tensioning line segments; and
    (14) Status of quality-control records at various stages of 
fabrication.
    (b) For any floating facilities, the CVA or project engineer must 
ensure that any requirements of the U.S. Coast Guard for structural 
integrity and stability (e.g., verification of center of gravity) have

[[Page 6425]]

been met. The CVA or project engineer must also consider:
    (1) Foundations, foundation pilings and templates, and anchoring 
systems; and
    (2) Mooring or tethering systems.


Sec.  285.710  When conducting onsite installation inspections, what 
must the CVA or project engineer do?

    To comply with Sec.  285.708(a)(4), the CVA or project engineer 
must make periodic onsite inspections while installation is in progress 
and must, as appropriate, verify, witness, survey, or check, the 
installation items required by this section.
    (a) The CVA or project engineer must verify, as appropriate, all of 
the following:
    (1) Loadout and initial flotation procedures;
    (2) Towing operation procedures to the specified location, and 
review the towing records;
    (3) Launching and uprighting activities;
    (4) Submergence activities;
    (5) Pile or anchor installations;
    (6) Installation of mooring and tethering systems;
    (7) Final deck and component installations; and
    (8) Installation at the approved location according to the Facility 
Design Report and the Fabrication and Installation Report.
    (b) For a fixed or floating facility, the CVA or project engineer 
must verify that proper procedures were used during the following:
    (1) The loadout of the jacket, decks, piles, or structures from 
each fabrication site; and
    (2) The actual installation of the facility or major modification 
and the related installation activities.
    (c) For a floating facility, the CVA or project engineer must 
verify that proper procedures were used during the following:
    (1) The loadout of the facility;
    (2) The installation of foundation pilings and templates, and 
anchoring systems; and
    (3) The installation of the mooring and tethering systems.
    (d) The CVA or project engineer must conduct an onsite survey of 
the facility after transportation to the approved location.
    (e) The CVA or project engineer must spot-check the equipment, 
procedures, and recordkeeping as necessary to determine compliance with 
the applicable documents incorporated by reference in Sec.  285.115 and 
the regulations under this part.


Sec.  285.711  [Reserved]


Sec.  285.712  What are the CVA's or project engineer's reporting 
requirements?

    (a) The CVA or project engineer must prepare and submit to you and 
BSEE all reports required by this subpart. The CVA or project engineer 
must also submit interim reports to you and BSEE, as requested by BSEE.
    (b) For each report required by this subpart, the CVA or project 
engineer must submit one electronic copy and one paper copy of each 
final report to BSEE. In each report, the CVA or project engineer must:
    (1) Give details of how, by whom, and when the CVA or project 
engineer activities were conducted;
    (2) Describe the CVA's or project engineer's activities during the 
verification process;
    (3) Summarize the CVA's or project engineer's findings; and
    (4) Provide any additional comments that the CVA or project 
engineer deems necessary.


Sec.  285.713  What must I do after the CVA or project engineer 
confirms conformance with the Fabrication and Installation Report on my 
commercial lease?

    After the CVA or project engineer files the certification report, 
you must notify BSEE within 10 business days after commencing 
commercial operations.


Sec.  285.714  What records relating to SAPs, COPs, and GAPs must I 
keep?

    (a) Until BOEM releases your financial assurance under 30 CFR 
585.534, you must compile, retain, and make available to BSEE, within 
the time specified by BSEE, all of the following:
    (1) The as-built drawings;
    (2) The design assumptions and analyses;
    (3) A summary of the fabrication and installation examination 
records;
    (4) The inspection results from the inspections and assessments 
required by Sec. Sec.  285.820 through 285.825; and
    (5) Records of repairs not covered in the inspection report 
submitted under Sec.  285.824(b)(3).
    (b) You must record and retain the original material test results 
of all primary structural materials during all stages of construction 
until BOEM releases your financial assurance under 30 CFR 585.534. 
Primary material is material that, should it fail, would lead to a 
significant reduction in facility safety, structural reliability, or 
operating capabilities. Items such as steel brackets, deck stiffeners 
and secondary braces or beams would not generally be considered primary 
structural members (or materials).
    (c) You must provide BSEE with the location of these records in the 
certification statement, as required in Sec. Sec.  285.701(c), 
285.703(b), and 285.708(a)(5)(i).

Subpart H--Environmental and Safety Management, Inspections, and 
Facility Assessments for Activities Conducted Under SAPs, COPs and 
GAPs


Sec.  285.800  How must I conduct my activities to comply with safety 
and environmental requirements?

    (a) You must conduct all activities on your lease or grant under 
this part in a manner that conforms with your responsibilities in Sec.  
285.105(a), and using:
    (1) Trained personnel; and
    (2) Technologies, precautions, and techniques that will not cause 
undue harm or damage to natural resources, including their physical, 
atmospheric, and biological components.
    (b) You must certify compliance with those terms and conditions 
identified in your approved SAP, COP, or GAP, as required under Sec.  
285.615(b), Sec.  285.633(a), or Sec.  285.653(b).


Sec.  285.801  How must I conduct my approved activities to protect 
marine mammals, threatened and endangered species, and designated 
critical habitat?

    You must comply with all measures required under 30 CFR 585.701.


Sec.  285.802  What must I do if I discover a potential archaeological 
resource while conducting my approved activities?

    You must comply with all measures required under 30 CFR 585.702.


Sec.  285.803  How must I conduct my approved activities to protect 
essential fish habitats identified and described under the Magnuson-
Stevens Fishery Conservation and Management Act?

    You must comply with all measures required under 30 CFR 585.703.


Sec. Sec.  285.804-285.809  [Reserved]

Safety Management Systems


Sec.  285.810  What must I include in my Safety Management System?

    You must submit a description of the safety management system you 
will use with your COP (provided under 30 CFR 585.627(d)) and, when 
required by this part, your SAP (as provided in Sec.  285.614(b)) or 
GAP (as provided in Sec.  285.651). You must describe:
    (a) How you will ensure the safety of personnel or anyone on or 
near your facilities;
    (b) Remote monitoring, control, and shut down capabilities;
    (c) Emergency response procedures;
    (d) Fire suppression equipment, if needed;
    (e) How and when you will test your safety management system; and

[[Page 6426]]

    (f) How you will ensure personnel who operate your facilities are 
properly trained.


Sec.  285.811  When must I follow my Safety Management System?

    Your safety management system must be fully functional when you 
begin activities described in your approved COP, SAP, or GAP. You must 
conduct all activities described in your approved COP, SAP, or GAP in 
accordance with the safety management system you described, as required 
by Sec.  285.810.


Sec.  285.812  [Reserved]

Maintenance and Shutdowns


Sec.  285.813  When do I have to report removing equipment from 
service?

    (a) The removal of any equipment from service may result in BSEE 
applying remedies, as provided in this part, when such equipment is 
necessary for implementing your approved plan. Such remedies may 
include an order from BSEE requiring you to replace or remove such 
equipment or facilities.
    (b)(1) You must report within 24 hours when equipment necessary for 
implementing your approved plan is removed from service for more than 
12 hours. If you provide an oral notification, you must submit a 
written confirmation of this notice within 3-business days, as required 
by Sec.  285.105(c);
    (2) You do not have to report removing equipment necessary for 
implementing your plan if the removal is part of planned maintenance or 
repair activities; and
    (3) You must notify BSEE when you return the equipment to service.


Sec.  285.814  [Reserved]

Equipment Failure and Adverse Environmental Effects


Sec.  285.815  What must I do if I have facility damage or an equipment 
failure?

    (a) If you have facility damage or the failure of a pipeline, 
cable, or other equipment necessary for you to implement your approved 
plan, you must make repairs as soon as practicable. If you have a major 
repair, you must submit a report of the repairs to BSEE, as required in 
Sec.  285.703.
    (b) If you are required to report any facility damage or failure 
under Sec.  285.831, BOEM may require you to revise your SAP, COP, or 
GAP to describe how you will address the facility damage or failure as 
required by 30 CFR 585.634 (COP), 585.617 (SAP), or 585.655 (GAP). You 
must submit a report of the repairs to BSEE, as required in Sec.  
285.703.
    (c) BSEE may require that you analyze cable, pipeline, or facility 
damage or failure to determine the cause. If requested by BSEE, you 
must submit a comprehensive written report of the failure or damage to 
BSEE as soon as available.


Sec.  285.816  What must I do if environmental or other conditions 
adversely affect a cable, pipeline, or facility?

    If environmental or other conditions adversely affect a cable, 
pipeline, or facility so as to endanger the safety or the environment, 
you must:
    (a) Submit a plan of corrective action to BSEE within 30 days of 
the discovery of the adverse effect.
    (b) Take remedial action as described in your corrective action 
plan.
    (c) Submit to the BSEE a report of the remedial action taken within 
30 days after completion.


Sec.  Sec.  285.817-285.819  [Reserved]

Inspections and Assessments


Sec.  285.820  Will BSEE conduct inspections?

    BSEE will inspect OCS facilities and any vessels engaged in 
activities authorized under this part. We conduct these inspections:
    (a) To verify that you are conducting activities in compliance with 
subsection 8(p) of the OCS Lands Act; the regulations in this part; the 
terms, conditions, and stipulations of your lease or grant; approved 
plans; and other applicable laws and regulations.
    (b) To determine whether proper safety equipment has been installed 
and is operating properly according to your safety management system, 
as required in Sec.  285.810.


Sec.  285.821  Will BSEE conduct scheduled and unscheduled inspections?

    BSEE will conduct both scheduled and unscheduled inspections.


Sec.  285.822  What must I do when BSEE conducts an inspection?

    (a) When BSEE conducts an inspection, you must:
    (1) Provide access to all facilities on your lease (including your 
project easement) or grant; and
    (2) Make the following available for BSEE to inspect:
    (i) The area covered under a lease, ROW grant, or RUE grant;
    (ii) All improvements, structures, and fixtures on these areas; and
    (iii) All records of design, construction, operation, maintenance, 
repairs, or investigations on or related to the area.
    (b) You must retain these records in paragraph (a)(2)(iii) of this 
section until BOEM releases your financial assurance under 30 CFR 
585.534 and provide them to BSEE upon request, within the time period 
specified by BSEE.
    (c) You must demonstrate to the inspector how you are in compliance 
with your safety management system.


Sec.  285.823  Will BSEE reimburse me for my expenses related to 
inspections?

    Upon request, BSEE will reimburse you for food, quarters, and 
transportation that you provide for our representatives while they 
inspect your lease or grant facilities and associated activities. You 
must send us your reimbursement request within 90 days of the 
inspection.


Sec.  285.824  How must I conduct self-inspections?

    (a) You must develop a comprehensive annual self-inspection plan 
covering all of your facilities. You must keep this plan wherever you 
keep your records and make it available to BSEE inspectors upon 
request. Your plan must specify:
    (1) The type, extent, and frequency of in-place inspections that 
you will conduct for both the above-water and the below-water 
structures of all facilities and pertinent components of the mooring 
systems for any floating facilities; and
    (2) How you are monitoring the corrosion protection for both the 
above-water and below-water structures.
    (b) You must submit a report annually to us no later than November 
1 that must include:
    (1) A list of facilities inspected in the preceding 12 months;
    (2) The type of inspection employed, (i.e., visual, magnetic 
particle, ultrasonic testing); and
    (3) A summary of the inspection indicating what repairs, if any, 
were needed and the overall structural condition of the facility.


Sec.  285.825  When must I assess my facilities?

    (a) You must perform an assessment of the structure, when needed, 
based on the platform assessment initiators listed in sections 17.2.1-
17.2.5 of API RP 2A-WSD (incorporated by reference, see Sec.  285.115).
    (b) You must initiate mitigation actions for structures that do not 
pass the assessment process of API RP 2A-WSD.
    (c) You may comply with a later edition of API RP 2A-WSD only if:
    (1) You show that complying with the later edition provides a 
degree of protection, safety, or performance equal to or better than 
what would be achieved by compliance with the listed edition; and

[[Page 6427]]

    (2) You obtain the prior written approval for alternative 
compliance from the authorized BSEE official.
    (d) You must perform other assessments as required by BSEE.


Sec.  Sec.  285.826-285.829  [Reserved]

Incident Reporting and Investigation


Sec.  285.830  What are my incident reporting requirements?

    (a) You must report all incidents listed in Sec.  285.831 to BSEE, 
according to the reporting requirements for these incidents in 
Sec. Sec.  285.832 through 285.833.
    (b) These reporting requirements apply to incidents that occur on 
the area covered by your lease or grant and that are related to 
activities resulting from the exercise of your rights under your lease 
or grant.
    (c) Nothing in this subpart relieves you from providing notices and 
reports of incidents that may be required by other regulatory agencies.
    (d) You must report all spills of oil or other liquid pollutants in 
accordance with Sec.  254.46 of this chapter.


Sec.  285.831  What incidents must I report, and when must I report 
them?

    (a) You must report the following incidents to us immediately via 
oral communication, and provide a written follow-up report (paper copy 
or electronically transmitted) within 15-business days after the 
incident:
    (1) Fatalities;
    (2) Incidents that require the evacuation of person(s) from the 
facility to shore or to another offshore facility;
    (3) Fires and explosions;
    (4) Collisions that result in property or equipment damage greater 
than $25,000. (Collision means the act of a moving vessel (including an 
aircraft) striking another vessel, or striking a stationary vessel or 
object. Property or equipment damage means the cost of labor and 
material to restore all affected items to their condition before the 
damage, including, but not limited to, the OCS facility, a vessel, a 
helicopter, or the equipment. It does not include the cost of salvage, 
cleaning, dry docking, or demurrage);
    (5) Incidents involving structural damage to an OCS facility that 
is severe enough so that activities on the facility cannot continue 
until repairs are made;
    (6) Incidents involving crane or personnel/material handling 
activities, if they result in a fatality, injury, structural damage, or 
significant environmental damage;
    (7) Incidents that damage or disable safety systems or equipment 
(including firefighting systems);
    (8) Other incidents resulting in property or equipment damage 
greater than $25,000; and
    (9) Any other incidents involving significant environmental damage, 
or harm.
    (b) You must provide a written report of the following incidents to 
us within 15 days after the incident:
    (1) Any injuries that result in the injured person not being able 
to return to work or to all of their normal duties the day after the 
injury occurred; and
    (2) All incidents that require personnel on the facility to muster 
for evacuation for reasons not related to weather or drills.


Sec.  285.832  How do I report incidents requiring immediate 
notification?

    For an incident requiring immediate notification under Sec.  
285.831(a), you must notify BSEE verbally after aiding the injured and 
stabilizing the situation. Your verbal communication must provide the 
following information:
    (a) Date and time of occurrence;
    (b) Identification and contact information for the lessee, grant 
holder, or operator;
    (c) Contractor, and contractor representative's name and telephone 
number (if a contractor is involved in the incident or injury/
fatality);
    (d) Lease number, OCS area, and block;
    (e) Platform/facility name and number, or cable or pipeline segment 
number;
    (f) Type of incident or injury/fatality;
    (g) Activity at time of incident; and
    (h) Description of the incident, damage, or injury/fatality.


Sec.  285.833  What are the reporting requirements for incidents 
requiring written notification?

    (a) For any incident covered under Sec.  285.831, you must submit a 
written report within 15 days after the incident to BSEE. The report 
must contain the following information:
    (1) Date and time of occurrence;
    (2) Identification and contact information for each lessee, grant 
holder, or operator;
    (3) Name and telephone number of the contractor and the 
contractor's representative, if a contractor is involved in the 
incident or injury;
    (4) Lease number, OCS area, and block;
    (5) Platform/facility name and number, or cable or pipeline segment 
number;
    (6) Type of incident or injury;
    (7) Activity at time of incident;
    (8) Description of incident, damage, or injury (including days away 
from work, restricted work, or job transfer), and any corrective action 
taken; and
    (9) Property or equipment damage estimate (in U.S. dollars).
    (b) You may submit a report or form prepared for another agency in 
lieu of the written report required by paragraph (a) of this section if 
the report or form contains all required information.
    (c) BSEE may require you to submit additional information about an 
incident on a case-by-case basis.

Subpart I--Decommissioning

Decommissioning Obligations and Requirements


Sec.  285.900  Who must meet the decommissioning obligations in this 
subpart?

    (a) Lessees are jointly and severally responsible for meeting 
decommissioning obligations for facilities on their leases, including 
all obstructions, as the obligations accrue and until each obligation 
is met.
    (b) Grant holders are jointly and severally liable for meeting 
decommissioning obligations for facilities on their grant, including 
all obstructions, as the obligations accrue and until each obligation 
is met.


Sec.  285.901  When do I accrue decommissioning obligations?

    You accrue decommissioning obligations when you are or become a 
lessee or grant holder, and you either install, construct, or acquire 
by a BOEM-approved assignment a facility, cable, or pipeline, or you 
create an obstruction to other uses of the OCS.


Sec.  285.902  What are the general requirements for decommissioning 
for facilities authorized under my SAP, COP, or GAP?

    (a) Except as otherwise authorized under Sec.  285.909, within 2 
years following termination of a lease or grant, you must:
    (1) Remove or decommission all facilities, projects, cables, 
pipelines, and obstructions;
    (2) Clear the seafloor of all obstructions created by activities on 
your lease, including your project easement, or grant.
    (b) Before decommissioning the facilities under your SAP, COP, or 
GAP, you must submit a decommissioning application to, and receive 
approval from, BSEE.
    (c) The approval of the decommissioning concept in the SAP, COP, or 
GAP is not an approval of a decommissioning application. However, you 
may submit your complete decommissioning application to BSEE

[[Page 6428]]

simultaneously with the SAP, COP, or GAP, so that it may undergo 
appropriate technical and regulatory reviews at that time.
    (d) Following approval of your decommissioning application, you 
must submit a decommissioning notice under Sec.  285.908 to BSEE at 
least 60 days before commencing decommissioning activities.
    (e) If you, your subcontractors, or any agent acting on your behalf 
discovers any archaeological resource while conducting decommissioning 
activities, you must immediately halt bottom-disturbing activities 
within 1,000 feet of the discovery and report the discovery to us 
within 72 hours. BOEM will inform you how to conduct investigations to 
determine if the resource is significant and how to protect it in 
accordance with 30 CFR 585.702. You, your subcontractors, or any agent 
acting on your behalf must keep the location of the discovery 
confidential and must not take any action that may adversely affect the 
archaeological resource until we have made an evaluation and told you 
how to proceed.
    (f) Provide BOEM with documentation of any coordination efforts you 
have made with the affected States, local, and Tribal governments.


Sec.  285.903  What are the requirements for decommissioning FERC-
licensed hydrokinetic facilities?

    You must comply with the decommissioning requirements in your BOEM-
issued lease. If you fail to comply with the decommissioning 
requirements of your lease then:
    (a) BOEM may call for the forfeiture of your bond or other 
financial assurance;
    (b) You remain liable for removal or disposal costs and responsible 
for accidents or damages that might result from such failure; and
    (c) BSEE may take enforcement action under Sec.  285.400.


Sec.  285.904  Can I request a departure from the decommissioning 
requirements?

    You may request a departure from the decommissioning requirements 
under Sec.  285.103.
Decommissioning Applications


Sec.  285.905  When must I submit my decommissioning application?

    You must submit your decommissioning application upon the earliest 
of the following dates:
    (a) Two (2) years before the expiration of your lease.
    (b) Ninety (90) days after completion of your commercial activities 
on a commercial lease.
    (c) Ninety (90) days after completion of your approved activities 
under a limited lease on a ROW grant or RUE grant.
    (d) Ninety (90) days after cancellation, relinquishment, or other 
termination of your lease or grant.


Sec.  285.906  What must my decommissioning application include?

    You must provide one paper copy and one electronic copy of the 
application. Include the following information in the application, as 
applicable.
    (a) Identification of the applicant including:
    (1) Lease operator, ROW grant holder, or RUE grant holder;
    (2) Address;
    (3) Contact person and telephone number; and
    (4) Shore base.
    (b) Identification and description of the facilities, cables, or 
pipelines you plan to remove or propose to leave in place, as provided 
in Sec.  285.909.
    (c) A proposed decommissioning schedule for your lease, ROW grant, 
or RUE grant, including the expiration or relinquishment date and 
proposed month and year of removal.
    (d) A description of the removal methods and procedures, including 
the types of equipment, vessels, and moorings (i.e., anchors, chains, 
lines, etc.) you will use.
    (e) A description of your site clearance activities.
    (f) Your plans for transportation and disposal (including as an 
artificial reef) or salvage of the removed facilities, cables, or 
pipelines and any required approvals.
    (g) A description of those resources, conditions, and activities 
that could be affected by or could affect your proposed decommissioning 
activities. The description must be as detailed as necessary to assist 
BSEE in complying with the NEPA and other relevant Federal laws.
    (h) The results of any recent biological surveys conducted in the 
vicinity of the structure and recent observations of turtles or marine 
mammals at the structure site.
    (i) Mitigation measures you will use to protect archaeological and 
sensitive biological features during removal activities.
    (j) A description of measures you will take to prevent unauthorized 
discharge of pollutants, including marine trash and debris, into the 
offshore waters.
    (k) A statement of whether or not you will use divers to survey the 
area after removal to determine any effects on marine life.


Sec.  285.907  How will BSEE process my decommissioning application?

    (a) Based upon your inclusion of all the information required by 
Sec.  285.906, BSEE will compare your decommissioning application with 
the decommissioning general concept in your approved SAP, COP, or GAP 
to determine what technical and environmental reviews are needed.
    (b) You will likely have to revise your SAP, COP, or GAP, and BOEM 
will begin the appropriate NEPA analysis and other regulatory reviews 
as required, if BSEE determines that your decommissioning application 
would:
    (1) Result in a significant change in the impacts previously 
identified and evaluated in your SAP, COP, or GAP;
    (2) Require any additional Federal permits; or
    (3) Propose activities not previously identified and evaluated in 
your SAP, COP, or GAP.
    (c) During the review process, we may request additional 
information if we determine that the information provided is not 
sufficient to complete the review and approval process.
    (d) Upon completion of the technical and environmental reviews, we 
may approve, approve with conditions, or disapprove your 
decommissioning application.
    (e) If BSEE disapproves your decommissioning application, you must 
resubmit your application to address the concerns identified by BSEE.


Sec.  285.908  What must I include in my decommissioning notice?

    (a) The decommissioning notice is distinct from your 
decommissioning application and may only be submitted following 
approval of your decommissioning application, as described in 
Sec. Sec.  285.905 through 285.907. You must submit a decommissioning 
notice at least 60 days before you plan to begin decommissioning 
activities.
    (b) Your decommissioning notice must include:
    (1) A description of any changes to the approved removal methods 
and procedures in your approved decommissioning application, including 
changes to the types of vessels and equipment you will use; and
    (2) An updated decommissioning schedule.
    (c) BSEE will review your decommissioning notice and may require 
you to resubmit a decommissioning application if BSEE determines that 
your decommissioning activities would:
    (1) Result in a significant change in the impacts previously 
identified and evaluated;

[[Page 6429]]

    (2) Require any additional Federal permits; or
    (3) Propose activities not previously identified and evaluated.
Facility Removal


Sec.  285.909  When may facilities remain in place following 
termination of a lease or grant?

    (a) In your decommissioning application, you may request that 
certain facilities authorized in your lease or grant remain in place 
for other activities authorized in this part, elsewhere in this 
subchapter, or by other applicable Federal law.
    (b) Except as provided in paragraph (c) of this section, if BOEM 
authorizes facilities to remain in place, the former lessee or grantee 
under this part remains jointly and severally liable for 
decommissioning the facility unless satisfactory evidence is provided 
to BOEM showing that another party has assumed that responsibility and 
has secured adequate financial assurances.
    (c) In your decommissioning application, identify facilities 
authorized by BOEM to be converted to an artificial reef or otherwise 
toppled in place.


Sec.  285.910  What must I do when I remove my facility?

    (a) You must remove all facilities to a depth of 15 feet below the 
mudline, unless otherwise authorized by BSEE.
    (b) Within 60 days after you remove a facility, you must verify to 
BSEE that you have cleared the site.


Sec.  285.911  [Reserved]

Decommissioning Report


Sec.  285.912  After I remove a facility, cable, or pipeline, what 
information must I submit?

    Within 60 days after you remove a facility, cable, or pipeline, you 
must submit a written report to BSEE that includes the following:
    (a) A summary of the removal activities, including the date they 
were completed;
    (b) A description of any mitigation measures you took; and
    (c) If you used explosives, a statement signed by your authorized 
representative that certifies that the types and amount of explosives 
you used in removing the facility were consistent with those in the 
approved decommissioning application.
Compliance With an Approved Decommissioning Application


Sec.  285.913  What happens if I fail to comply with my approved 
decommissioning application?

    If you fail to comply with your approved decommissioning plan or 
application:
    (a) BOEM may call for the forfeiture of your bond or other 
financial assurance;
    (b) You remain liable for removal or disposal costs and responsible 
for accidents or damages that might result from such failure; and
    (c) BSEE may take enforcement action under Sec.  285.400.

Subpart J--Rights of Use and Easement for Energy- and Marine-
Related Activities Using Existing OCS Facilities

Regulated Activities


Sec.  285.1000  What activities does this subpart regulate?

    This subpart provides the general provisions for regulating 
activities that use (or propose to use) an existing OCS facility for 
energy- or marine-related purposes, that are not otherwise authorized 
under any other part of this subchapter or any other applicable Federal 
statute. Activities authorized under any other part of this subchapter 
or under any other Federal law that use (or propose to use) an existing 
OCS facility are not subject to this subpart.


Sec.  Sec.  285.1001-285.1013  [Reserved]

Alternate Use RUE Administration


Sec.  285.1014  When will BSEE suspend an Alternate Use RUE?

    (a) BSEE may suspend an Alternate Use RUE if:
    (1) Necessary to comply with judicial decrees;
    (2) Continued activities pursuant to the Alternate Use RUE pose an 
imminent threat of serious or irreparable harm or damage to natural 
resources; life (including human and wildlife); property; the marine, 
coastal, or human environment; or sites, structures, or objects of 
historical or archaeological significance; or
    (3) Operation of the existing OCS facility that is subject to the 
Alternate Use RUE has been suspended or temporarily prohibited and we 
have determined that continued activities under the Alternate Use RUE 
are unsafe or cause undue interference with the operation of the 
original OCS Lands Act approved activity.
    (b) A suspension will extend the term of your Alternate Use RUE 
grant for the period of the suspension.


Sec.  285.1015  [Reserved]


Sec.  285.1016  When will an Alternate Use RUE be cancelled?

    The Secretary may cancel an Alternate Use RUE if it is determined, 
after notice and opportunity to be heard:
    (a) You no longer qualify to hold an Alternate Use RUE;
    (b) You failed to provide any additional financial assurance 
required by BOEM, replace or provide additional coverage for a de-
valued bond, or replace a lapsed or forfeited bond within the 
prescribed time period;
    (c) Continued activity under the Alternate Use RUE is likely to 
cause serious harm or damage to natural resources; life (including 
human and wildlife); property; the marine, coastal, or human 
environment; or sites, structures, or objects of historical or 
archaeological significance;
    (d) Continued activity under the Alternate Use RUE is determined to 
be adversely impacting the original OCS Lands Act approved activities 
on the existing OCS facility;
    (e) You failed to comply with any of the terms and conditions of 
your approved Alternate Use RUE or your approved plan; or
    (f) You otherwise failed to comply with applicable laws or 
regulations.


Sec.  285.1017  [Reserved]

Decommissioning an Alternate Use RUE


Sec.  285.1018  Who is responsible for decommissioning an OCS facility 
subject to an Alternate Use RUE?

    (a) The holder of an Alternate Use RUE is responsible for all 
decommissioning obligations that accrue following the issuance of the 
Alternate Use RUE and which pertain to the Alternate Use RUE.
    (b) The lessee under the lease originally issued under 30 CFR 
chapter V will remain responsible for decommissioning obligations that 
accrued before issuance of the Alternate Use RUE, as well as for 
decommissioning obligations that accrue following issuance of the 
Alternate Use RUE to the extent associated with continued activities 
authorized under other parts of this title.


Sec.  285.1019  What are the decommissioning requirements for an 
Alternate Use RUE?

    (a) Decommissioning requirements will be determined by BOEM and 
BSEE on a case-by-case basis, and will be included in the terms of the 
Alternate Use RUE.
    (b) Decommissioning activities must be completed within 1 year of 
termination of the Alternate Use RUE.

[[Page 6430]]

    (c) If you fail to satisfy all decommissioning requirements within 
the prescribed time period, BOEM will call for the forfeiture of your 
bond or other financial guarantee, and you will remain liable for all 
accidents or damages that might result from such failure.

Chapter V--Bureau of Ocean Energy Management

0
2. Revise part 585 to read as follows:

PART 585--RENEWABLE ENERGY 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 the 
regulations in this part?
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 What happens if I fail to comply with this part?
585.107 Who can hold a lease or grant under this part?
585.108 How do I show that I am qualified to be a lessee or grant 
holder?
585.109 When must I notify BOEM if an action has been filed alleging 
that I am insolvent or bankrupt?
585.110 When must I notify BOEM of mergers, name changes, or changes 
of business form?
585.111 How do I submit plans, applications, reports, or notices 
required by this part?
585.112 When and how does BOEM charge me processing fees on a case-
by-case basis?
585.113 Definitions.
585.114 How will data and information obtained by BOEM under this 
part be disclosed to the public?
585.115 Paperwork Reduction Act Statements--Information Collection.
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]

Competitive Lease Process

585.210 How does BOEM initiate the competitive leasing process?
585.211 What is the process for competitive issuance of leases?
585.212 What is the process BOEM will follow if there is reason to 
believe that competitors have withdrawn before the Final Sale Notice 
is issued?
585.213 What must I submit in response to a Request for Interest or 
a Call for Information and Nominations?
585.214 What will BOEM do with information from the Requests for 
Information or Calls for Information and Nominations?
585.215 What areas will BOEM offer in a lease sale?
585.216 What information will BOEM publish in the Proposed Sale 
Notice and Final Sale Notice?
585.217-585.219 [Reserved]

Competitive Lease Award Process

585.220 What auction format may BOEM use in a lease sale?
585.221 What bidding systems may BOEM use for commercial leases and 
limited leases?
585.222 What does BOEM do with my bid?
585.223 What does BOEM do if there is a tie for the highest bid?
585.224 What happens if BOEM accepts my bid?
585.225 What happens if my bid is rejected, and what are my appeal 
rights?
585.226-585.229 [Reserved]

Noncompetitive Lease Award Process

585.230 May I request a lease if there is no Call?
585.231 How will BOEM process my unsolicited request for a 
noncompetitive lease?
585.232 May I acquire a lease noncompetitively after responding to a 
Request for Interest or Call for Information and Nominations?
585.233-585.234 [Reserved]

Commercial and Limited Lease Terms

585.235 If I have a commercial lease, how long will my lease remain 
in effect?
585.236 If I have a limited lease, how long will my lease remain in 
effect?
585.237 What is the effective date of a lease?
585.238 May I develop my commercial lease in phases?
585.239 Are there any other renewable energy research activities 
that will be allowed on the OCS?
Subpart C--Right-of-Way (ROW) and Right-of-Use and Easement (RUE) 
Grants for Renewable Energy Activities

ROW Grants and RUE Grants

585.300 What types of activities are authorized by ROW grants and 
RUE grants issued under this part?
585.301 What do ROW grants and RUE grants include?
585.302 What are the general requirements for ROW grant and RUE 
grant holders?
585.303 How long will my ROW grant or RUE grant remain in effect?
585.304 [Reserved]

Obtaining ROW Grants and RUE Grants

585.305 How do I request a ROW grant or RUE grant?
585.306 What action will BOEM take on my request?
585.307 How will BOEM determine whether competitive interest exists 
for ROW grants and RUE grants?
585.308 How will BOEM conduct an auction for ROW grants and RUE 
grants?
585.309 When will BOEM issue a noncompetitive ROW grant or RUE 
grant?
585.310 What is the effective date of a ROW grant or RUE grant?
585.311-585.314 [Reserved]

Financial Requirements for ROW Grants and RUE Grants

585.315 What deposits are required for a competitive ROW grant or 
RUE grant?
585.316 What payments are required for ROW grants or RUE grants?
Subpart D--Lease and Grant Administration
585.400-585.404 [Reserved]

Designation of Operator

585.405 How do I designate an operator?
585.406 Who is responsible for fulfilling lease and grant 
obligations?
585.407 [Reserved]

Lease or Grant Assignment

585.408 May I assign my lease or grant interest?
585.409 How do I request approval of a lease or grant assignment?
585.410 How does an assignment affect the assignor's liability?
585.411 How does an assignment affect the assignee's liability?
585.412-585.414 [Reserved]

Lease or Grant Suspension

585.415 What is a lease or grant suspension?
585.416 How do I request a lease or grant suspension?
585.417 When may BOEM order a suspension?
585.418 How will BOEM issue a suspension?
585.419 What are my immediate responsibilities if I receive a 
suspension order?
585.420 What effect does a suspension order have on my payments?
585.421 How long will a lease or grant suspension be in effect?

Lease or Grant Cancellation

585.422 When can my lease or grant be canceled?
585.423-585.424 [Reserved]

Lease or Grant Renewal

585.425 May I obtain a renewal of my lease or grant before it 
terminates?
585.426 When must I submit my request for renewal?
585.427 How long is a renewal?
585.428 What effect does applying for a renewal have on my 
activities and payments?

[[Page 6431]]

585.429 What criteria will BOEM consider in deciding whether to 
renew a lease or grant?
585.430-585.431 [Reserved]

Lease or Grant Termination

585.432 When does my lease or grant terminate?
585.433 What must I do after my lease or grant terminates?
585.434 When may BOEM authorize facilities to remain in place 
following termination of a lease or grant?

Lease or Grant Relinquishment

585.435 How can I relinquish a lease or a grant or parts of a lease 
or grant?

Lease or Grant Contraction

585.436 Can BOEM require lease or grant contraction?
Subpart E--Payments and Financial Assurance Requirements

Payments

585.500 How do I make payments under this part?
585.501 What deposits must I submit for a competitively issued 
lease, ROW grant, or RUE grant?
585.502 What initial payment requirements must I meet to obtain a 
noncompetitive lease, ROW grant, or RUE grant?
585.503 What are the rent and operating fee requirements for a 
commercial lease?
585.504 How are my payments affected if I develop my lease in 
phases?
585.505 What are the rent and operating fee requirements for a 
limited lease?
585.506 What operating fees must I pay on a commercial lease?
585.507 What rent payments must I pay on a project easement?
585.508 What rent payments must I pay on ROW grants or RUE grants 
associated with renewable energy projects?
585.509 Who is responsible for submitting lease or grant payments to 
ONRR?
585.510 May BOEM reduce or waive my lease or grant payments?
585.511-585.514 [Reserved]

Financial Assurance Requirements for Commercial Leases

585.515 What financial assurance must I provide when I obtain my 
commercial lease?
585.516 What are the financial assurance requirements for each stage 
of my commercial lease?
585.517 How will BOEM determine the amounts of the supplemental and 
decommissioning financial assurance requirements associated with 
commercial leases?
585.518-585.519 [Reserved]

Financial Assurance for Limited Leases, ROW Grants, and RUE Grants

585.520 What financial assurance must I provide when I obtain my 
limited lease, ROW grant, or RUE grant?
585.521 Do my financial assurance requirements change as activities 
progress on my limited lease or grant?
585.522-585.524 [Reserved]

Requirements for Financial Assurance Instruments

585.525 What general requirements must a financial assurance 
instrument meet?
585.526 What instruments other than a surety bond may I use to meet 
the financial assurance requirement?
585.527 May I demonstrate financial strength and reliability to meet 
the financial assurance requirement for lease or grant activities?
585.528 May I use a third-party guaranty to meet the financial 
assurance requirement for lease or grant activities?
585.529 Can I use a lease- or grant-specific decommissioning account 
to meet the financial assurance requirements related to 
decommissioning?

Changes in Financial Assurance

585.530 What must I do if my financial assurance lapses?
585.531 What happens if the value of my financial assurance is 
reduced?
585.532 What happens if my surety wants to terminate the period of 
liability of my bond?
585.533 How does my surety obtain cancellation of my bond?
585.534 When may BOEM cancel my bond?
585.535 Why might BOEM call for forfeiture of my bond?
585.536 How will I be notified of a call for forfeiture?
585.537 How will BOEM proceed once my bond or other security is 
forfeited?
585.538-585.539 [Reserved]

Revenue Sharing With States

585.540 How will BOEM equitably distribute revenues to States?
585.541 What is a qualified project for revenue sharing purposes?
585.542 What makes a State eligible for payment of revenues?
585.543 Example of how the inverse distance formula works.
Subpart F--Plan Requirements
585.600 What plans must I submit to BOEM before I conduct activities 
on my lease or grant?
585.601 When am I required to submit my plans to BOEM?
585.602-585.604 [Reserved]

Site Assessment Plan and Information Requirements for Commercial Leases

585.605 What is a Site Assessment Plan (SAP)?
585.606 What must I demonstrate in my SAP?
585.607 How do I submit my SAP?
585.608-585.609 [Reserved]

Contents of the Site Assessment Plan

585.610 What must I include in my SAP?
585.611 What information and certifications must I submit with my 
SAP to assist BOEM in complying with NEPA and other relevant laws?
585.612 How will my SAP be processed for Federal consistency under 
the Coastal Zone Management Act?
585.613 How will BOEM process my SAP?

Activities Under an Approved SAP

585.614 When may I begin conducting activities under my approved 
SAP?
585.615 What other reports or notices must I submit to BOEM under my 
approved SAP?
585.616 [Reserved]
585.617 What activities require a revision to my SAP, and when will 
BOEM approve the revision?
585.618 What must I do upon completion of approved site assessment 
activities?
585.619 [Reserved]

Construction and Operations Plan for Commercial Leases

585.620 What is a Construction and Operations Plan (COP)?
585.621 What must I demonstrate in my COP?
585.622 How do I submit my COP?
585.623-585.625 [Reserved]

Contents of the Construction and Operations Plan

585.626 What must I include in my COP?
585.627 What information and certifications must I submit with my 
COP to assist BOEM in complying with NEPA and other relevant laws?
585.628 How will BOEM process my COP?
585.629-585.630 [Reserved]

Activities Under an Approved COP

585.631 When must I initiate activities under an approved COP?
585.632 What documents must I submit before I may construct and 
install facilities under my approved COP?
585.633 [Reserved]
585.634 What activities require a revision to my COP, and when will 
BOEM approve the revision?
585.635 What must I do if I cease activities approved in my COP 
before the end of my commercial lease?
585.636-585.639 [Reserved]

General Activities Plan Requirements for Limited Leases, ROW Grants, 
and RUE Grants

585.640 What is a General Activities Plan (GAP)?
585.641 What must I demonstrate in my GAP?
585.642 How do I submit my GAP?
585.643-585.644 [Reserved]

Contents of the General Activities Plan

585.645 What must I include in my GAP?
585.646 What information and certifications must I submit with my 
GAP to assist BOEM in complying with NEPA and other relevant laws?
585.647 How will my GAP be processed for Federal consistency under 
the Coastal Zone Management Act?
585.648 How will BOEM process my GAP?
585.649 [Reserved]

Activities Under an Approved GAP

585.650 When may I begin conducting activities under my GAP?
585.651 When may I construct complex or significant OCS facilities 
on my limited lease or any facilities on my project easement 
proposed under my GAP?
585.652 How long do I have to conduct activities under an approved 
GAP?

[[Page 6432]]

585.653 What other reports or notices must I submit to BOEM under my 
approved GAP?
585.654 [Reserved]
585.655 What activities require a revision to my GAP, and when will 
BOEM approve the revision?
585.656 What must I do if I cease activities approved in my GAP 
before the end of my term?
585.657 What must I do upon completion of approved activities under 
my GAP?

Cable and Pipeline Deviations

585.658 Can my cable or pipeline construction deviate from my 
approved COP or GAP?
585.659 [Reserved]

Environmental Protection Requirements Under Approved Plans

585.700 What requirements must I include in my SAP, COP, or GAP 
regarding air quality?
585.701 How must I conduct my approved activities to protect marine 
mammals, threatened and endangered species, and designated critical 
habitat?
585.702 What must I do if I discover a potential archaeological 
resource while conducting my approved activities?
585.703 How must I conduct my approved activities to protect 
essential fish habitats identified and described under the Magnuson-
Stevens Fishery Conservation and Management Act?

    Authority:  43 U.S.C. 1337.

Subpart A--General Provisions


Sec.  585.100  Authority.

    The authority for this part derives from section 8 of the Outer 
Continental Shelf Lands Act (OCS Lands Act) (43 U.S.C. 1337). The 
Secretary of the Interior delegated to the Bureau of Ocean Energy 
Management (BOEM) the authority to manage the development of energy on 
the Outer Continental Shelf (OCS) from sources other than oil and gas, 
including renewable energy, through the issuance of leases, easements, 
and rights-of-way for activities that produce or support the 
production, transportation, or transmission of energy.


Sec.  585.101  What is the purpose of this part?

    The purpose of this part is to:
    (a) Establish procedures for issuance and administration of leases, 
right-of-way (ROW) grants, and right-of-use and easement (RUE) grants 
for renewable energy production on the OCS; and
    (b) Inform you and third parties of your obligations when you 
undertake activities authorized in this part.
    (c) Ensure that renewable energy activities on the OCS are 
conducted in a safe and environmentally sound manner, in conformance 
with the requirements of subsection 8(p) of the OCS Lands Act, other 
applicable laws and regulations, and the terms of your lease, ROW 
grant, or RUE grant.
    (d) This part will not convey access rights for oil, gas, or other 
minerals.


Sec.  585.102  What are BOEM's responsibilities under this part?

    (a) BOEM will ensure that any activities authorized in this part 
are carried out in a manner that provides for:
    (1) Safety;
    (2) Protection of the environment;
    (3) Prevention of waste;
    (4) Conservation of the natural resources of the OCS;
    (5) Coordination with relevant Federal agencies (including, in 
particular, those agencies involved in planning activities that are 
undertaken to avoid conflicts among users and to maximize the economic 
and ecological benefits of the OCS, including multifaceted spatial 
planning efforts);
    (6) Protection of National security interests of the United States;
    (7) Protection of the rights of other authorized users of the OCS;
    (8) A fair return to the United States;
    (9) Prevention of interference with reasonable uses (as determined 
by the Secretary or Director) of the exclusive economic zone, the high 
seas, and the territorial seas;
    (10) Consideration of the location of and any schedule relating to 
a lease or grant under this part for an area of the OCS, and any other 
use of the sea or seabed;
    (11) Public notice and comment on any proposal submitted for a 
lease or grant under this part; and
    (12) Oversight, research, monitoring, and enforcement of activities 
authorized by a lease or grant under this part.
    (b) BOEM will require compliance with all applicable laws, 
regulations, other requirements, and the terms of your lease or grant 
and approved plans under this part. BOEM will approve, disapprove, or 
approve with conditions any plans, applications, or other documents 
submitted to BOEM for approval under the provisions of this part.
    (c) Unless otherwise provided in this part, BOEM may give oral 
directives or decisions whenever prior BOEM approval is required under 
this part. BOEM will document in writing any such oral directives 
within 10 business days.
    (d) BOEM will establish practices and procedures to govern the 
collection of all payments due to the Federal Government required under 
the regulations of this part, including any cost recovery fees, rents, 
operating fees, and other fees or payments. BOEM will do this in 
accordance with the terms of this part, the leasing notice, the lease 
or grant under this part, and applicable Office of Natural Resources 
Revenue (ONRR) regulations or guidance.
    (e) BOEM will provide for coordination and consultation with the 
Governor of any State, the executive of any local government, and the 
executive of any Indian Tribe that may be affected by a lease, 
easement, or ROW under this subsection. BOEM may invite any affected 
State Governor, representative of an affected Indian Tribe, and 
affected local government executive to join in establishing a task 
force or other joint planning or coordination agreement in carrying out 
our responsibilities under this part.


Sec.  585.103  When may BOEM prescribe or approve departures from the 
regulations in this part?

    (a) BOEM may prescribe or approve departures from these regulations 
when departures are necessary to:
    (1) Facilitate the appropriate activities on a lease or grant under 
this part;
    (2) Conserve natural resources;
    (3) Protect life (including human and wildlife), property, or the 
marine, coastal, or human environment; or
    (4) Protect sites, structures, or objects of historical or 
archaeological significance.
    (b) Any departure approved under this section and its rationale 
must:
    (1) Be consistent with subsection 8(p) of the OCS Lands Act;
    (2) Protect the environment and the public health and safety to the 
same degree as if there was no approved departure from the regulations;
    (3) Not impair the rights of third parties; and
    (4) Be documented in writing.


Sec.  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?

    Except as otherwise authorized by law, it will be unlawful for any 
person to construct, operate, or maintain any facility to produce, 
transport, or support generation of electricity or other energy product 
derived from a renewable energy resource on any part of the OCS, except 
under and in accordance with the terms of a lease, easement, or ROW 
issued pursuant to the OCS Lands Act.


Sec.  585.105  What are my responsibilities under this part?

    As a lessee, applicant, operator, or holder of a ROW or RUE grant, 
you must:
    (a) Design your projects and conduct all activities in a manner 
that ensures

[[Page 6433]]

safety and will not cause undue harm or damage to natural resources, 
including their physical, atmospheric, and biological components to the 
extent practicable; and take measures to prevent unauthorized discharge 
of pollutants including marine trash and debris into the offshore 
environment.
    (b) Submit requests, applications, plans, notices, modifications, 
and supplemental information to BOEM as required by this part;
    (c) Follow up, in writing, any oral request or notification you 
made, within 3 business days;
    (d) Comply with the terms, conditions, and provisions of all 
reports and notices submitted to BOEM, and of all plans, revisions, and 
other BOEM approvals, as provided in this part;
    (e) Make all applicable payments on time;
    (f) Comply with the DOI's nonprocurement debarment regulations at 2 
CFR part 1400;
    (g) Include the requirement to comply with 2 CFR part 1400 in all 
contracts and transactions related to a lease or grant under this part;
    (h) Conduct all activities authorized by the lease or grant in a 
manner consistent with the provisions of subsection 8(p) of the OCS 
Lands Act;
    (i) Compile, retain, and make available to BOEM representatives, 
within the time specified by BOEM, any data and information related to 
the site assessment, design, and operations of your project; and
    (j) Respond to requests from the Director in a timely manner.


Sec.  585.106  What happens if I fail to comply with this part?

    (a) BOEM may take appropriate corrective action under this part if 
you fail to comply with applicable provisions of Federal law, the 
regulations in this part, other applicable regulations, any order of 
the Director, the provisions of a lease or grant issued under this 
part, or the requirements of an approved plan or other approval under 
this part.
    (b) BOEM may issue to you a notice of noncompliance if we determine 
that there has been a violation of the regulations in this part, any 
order of the Director, or any provision of your lease, grant, or other 
approval issued under this part. When issuing a notice of 
noncompliance, BOEM will serve you at your last known address.
    (c) A notice of noncompliance will tell you how you failed to 
comply with this part, any order of the Director and/or the provisions 
of your lease, grant or other approval, and will specify what you must 
do to correct the noncompliance and the time limits within which you 
must act.
    (d) Failure of a lessee, operator, or grant holder to take the 
actions specified in a notice of noncompliance issued under this part 
within the time limit specified provides the basis for issuance of a 
cessation order by BSEE, as provided in 30 CFR 285.401 and/or 
cancellation of the lease or grant by the Secretary as provided in 
Sec.  585.422.
    (e) BOEM may assess civil penalties, as authorized by section 24 of 
the OCS Lands Act, if you fail to comply with any provision of this 
part or any term of a lease, grant, or order issued under the authority 
of this part, after notice of such failure and expiration of any 
reasonable period allowed for corrective action. Civil penalties will 
be determined and assessed in accordance with the procedures set forth 
in 30 CFR part 550, subpart N.
    (f) You may be subject to criminal penalties as authorized by 
section 24 of the OCS Lands Act.


Sec.  585.107  Who can hold a lease or grant under this part?

    (a) You may hold a lease or grant under this part if you can 
demonstrate that you have the technical and financial capabilities to 
conduct the activities authorized by the lease or grant and you are 
a(n):
    (1) Citizen or national of the United States;
    (2) Alien lawfully admitted for permanent residence in the United 
States as defined in 8 U.S.C. 1101(a)(20);
    (3) Private, public, or municipal corporations organized under the 
laws of any State of the United States, the District of Columbia, or 
any territory or insular possession subject to U.S. jurisdiction;
    (4) Association of such citizens, nationals, resident aliens, or 
corporations;
    (5) Executive agency of the United States as defined in section 105 
of Title 5 of the U.S. Code;
    (6) State of the United States; or
    (7) Political subdivision of a State of the United States.
    (b) You may not hold a lease or grant under this part or acquire an 
interest in a lease or grant under this part if:
    (1) You or your principals are excluded or disqualified from 
participating in transactions covered by the Federal nonprocurement 
debarment and suspension system (2 CFR part 1400), unless BOEM 
explicitly has approved an exception for this transaction;
    (2) BOEM determines or has previously determined after notice and 
opportunity for a hearing that you or your principals have failed to 
meet or exercise due diligence under any OCS lease or grant; or
    (3) BOEM determines or has previously determined after notice and 
opportunity for a hearing that you:
    (i) Remained in violation of the terms and conditions of any lease 
or grant issued under the OCS Lands Act for a period extending longer 
than 30 days (or such other period allowed for compliance) after BOEM 
or BSEE directed you to comply; and
    (ii) You took no action to correct the noncompliance within that 
time period.


Sec.  585.108  How do I show that I am qualified to be a lessee or 
grant holder?

    (a) You must demonstrate your technical and financial capability to 
construct, operate, maintain, and terminate/decommission projects for 
which you are requesting authorization. Documentation can include:
    (1) Descriptions of international or domestic experience with 
renewable energy projects or other types of electric-energy-related 
projects; and
    (2) Information establishing access to sufficient capital to carry 
out development.
    (b) An individual must submit a written statement of citizenship 
status attesting to U.S. citizenship. It does not need to be notarized 
nor give the age of individual. A resident alien may submit a photocopy 
of the U.S. Citizenship and Immigration Services form evidencing legal 
status of the resident alien.
    (c) A corporation or association must submit evidence, as specified 
in the table in paragraph (d) of this section, acceptable to BOEM that:
    (1) It is qualified to hold leases or grants under this part;
    (2) It is authorized to conduct business under the laws of its 
State;
    (3) It is authorized to hold leases or grants on the OCS under the 
operating rules of its business; and
    (4) The persons holding the titles listed are authorized to bind 
the corporation or association when conducting business with BOEM.
    (d) Acceptable evidence under paragraph (c) of this section 
includes, but is not limited to the following:

[[Page 6434]]



----------------------------------------------------------------------------------------------------------------
 Requirements to qualify to hold leases or
            grants on the OCS:                  Corp.     Ltd. prtnsp.  Gen. prtnsp.       LLC          Trust
----------------------------------------------------------------------------------------------------------------
(1) Original certificate or certified copy           XX   ............  ............  ............  ............
 from the State of incorporation stating
 the name of the corporation exactly as it
 must appear on all legal documents.
(2) Certified statement by Secretary/                XX   ............  ............  ............  ............
 Assistant Secretary over corporate seal,
 certifying that the corporation is
 authorized to hold OCS leases.
(3) Evidence of authority of titled                  XX   ............  ............  ............  ............
 positions to bind corporation, certified
 by Secretary/Assistant Secretary over
 corporate seal, including the following:
    (i) Certified copy of resolution of
     the board of directors with titles of
     officers authorized to bind
     corporation.
    (ii) Certified copy of resolutions
     granting corporate officer authority
     to issue a power of attorney.
    (iii) Certified copy of power of
     attorney or certified copy of
     resolution granting power of
     attorney.
(4) Original certificate or certified copy  ............           XX            XX            XX   ............
 of partnership or organization paperwork
 registering with the appropriate State
 official.
(5) Copy of articles of partnership or      ............           XX            XX            XX   ............
 organization evidencing filing with
 appropriate Secretary of State, certified
 by Secretary/Assistant Secretary of
 partnership or member or manager of LLC.
(6) Original certificate or certified copy  ............           XX            XX            XX   ............
 evidencing State where partnership or LLC
 is registered. Statement of authority to
 hold OCS leases, certified by Secretary/
 Assistant Secretary, OR original
 paperwork registering with the
 appropriate State official.
(7) Statements from each partner or LLC     ............           XX            XX            XX   ............
 member indicating the following:
    (i) If a corporation or partnership,
     statement of State of organization
     and authorization to hold OCS leases,
     certified by Secretary/Assistant
     Secretary over corporate seal, if a
     corporation.
    (ii) If an individual, a statement of
     citizenship.
(8) Statement from general partner,         ............           XX   ............  ............  ............
 certified by Secretary/Assistant
 Secretary that:
    (i) Each individual limited partner is
     a U.S. citizen and;
    (ii) Each corporate limited partner or
     other entity is incorporated or
     formed and organized under the laws
     of a U.S. State or territory.
(9) Evidence of authority to bind           ............           XX            XX            XX   ............
 partnership or LLC, if not specified in
 partnership agreement, articles of
 organization, or LLC regulations, i.e.,
 certificates of authority from Secretary/
 Assistant Secretary reflecting authority
 of officers.
(10) Listing of members of LLC certified    ............  ............  ............           XX   ............
 by Secretary/Assistant Secretary or any
 member or manager of LLC.
(11) Copy of trust agreement or document    ............  ............  ............  ............           XX
 establishing the trust and all
 amendments, properly certified by the
 trustee with reference to where the
 original documents are filed.
(12) Statement indicating the law under     ............  ............  ............  ............           XX
 which the trust is established and that
 the trust is authorized to hold OCS
 leases or grants.
----------------------------------------------------------------------------------------------------------------

    (e) A local, State, or Federal executive entity must submit a 
written statement that:
    (1) It is qualified to hold leases or grants under this part; and
    (2) The person(s) acting on behalf of the entity is authorized to 
bind the entity when conducting business with us.
    (f) BOEM may require you to submit additional information at any 
time considering your bid or request for a noncompetitive lease.


Sec.  585.109  When must I notify BOEM if an action has been filed 
alleging that I am insolvent or bankrupt?

    You must notify BOEM within 3 business days after you learn of any 
action filed alleging that you are insolvent or bankrupt.


Sec.  585.110  When must I notify BOEM of mergers, name changes, or 
changes of business form?

    You must notify BOEM in writing of any merger, name change, or 
change of business form. You must notify BOEM as soon as practicable 
following the merger, name change, or change in business form, but no 
later than 120 days after the earliest of either the effective date, or 
the date of filing the change or action with the Secretary of the State 
or other authorized official in the State of original registry.


Sec.  585.111  How do I submit plans, applications, reports, or notices 
required by this part?

    (a) You must submit all plans, applications, reports, or notices 
required by this part to BOEM at the following address: Office of 
Renewable Energy Programs, 45600 Woodland Road, Sterling, VA 20166.
    (b) Unless otherwise stated, you must submit one paper copy and one 
electronic copy of all plans, applications, reports, or notices 
required by this part.


Sec.  585.112  When and how does BOEM charge me processing fees on a 
case-by-case basis?

    (a) BOEM will charge a processing fee on a case-by-case basis under 
the procedures in this section with regard to any application or 
request under this part if we decide at any time that the preparation 
of a particular document or study is necessary for the application or 
request and it will have a unique processing cost, such as the 
preparation

[[Page 6435]]

of an environmental assessment (EA) or environmental impact statement 
(EIS).
    (1) Processing costs will include contract oversight and efforts to 
review and approve documents prepared by contractors, whether the 
contractor is paid directly by the applicant or through BOEM.
    (2) We may apply a standard overhead rate to direct processing 
costs.
    (b) We will assess the ongoing processing fee for each individual 
application or request according to the following procedures:
    (1) Before we process your application or request, we will give you 
a written estimate of the proposed fee based on reasonable processing 
costs.
    (2) You may comment on the proposed fee.
    (3) You may:
    (i) Ask for our approval to perform, or to directly pay a 
contractor to perform, all or part of any document, study, or other 
activity according to standards we specify, thereby reducing our costs 
for processing your application or request; or
    (ii) Ask to pay us to perform, or contract for, all or part of any 
document, study, or other activity.
    (4) We will then give you the final estimate of the processing fee 
amount with payment terms and instructions after considering your 
comments and any BOEM-approved work you will do.
    (i) If we encounter higher or lower processing costs than 
anticipated, we will re-estimate our reasonable processing costs 
following the procedures in paragraphs (b)(1) through (4) of this 
section, but we will not stop ongoing processing unless you do not pay 
in accordance with paragraph (b)(5) of this section.
    (ii) Once processing is complete, we will refund to you the amount 
of money that we did not spend on processing costs.
    (5)(i) Consistent with the payment and billing terms provided in 
the final estimate, we will periodically estimate what our reasonable 
processing costs will be for a specific period and will bill you for 
that period. Payment is due to us 30 days after you receive your bill. 
We will stop processing your document if you do not pay the bill by the 
date payment is due.
    (ii) If a periodic payment turns out to be more or less than our 
reasonable processing costs for the period, we will adjust the next 
billing accordingly or make a refund. Do not deduct any amount from a 
payment without our prior written approval.
    (6) You must pay the entire fee before we will issue the final 
document or take final action on your application or request.
    (7) You may appeal our estimated processing costs in accordance 
with the regulations in 43 CFR part 4. We will not process the document 
further until the appeal is resolved, unless you pay the fee under 
protest while the appeal is pending. If the appeal results in a 
decision changing the proposed fee, we will adjust the fee in 
accordance with paragraph (b)(5)(ii) of this section. If we adjust the 
fee downward, we will not pay interest.


Sec.  585.113  Definitions.

    Terms used in this part have the meanings as defined in this 
section:
    Affected local government means with respect to any activities 
proposed, conducted, or approved under this part or 30 CFR part 285, 
any locality--
    (1) That is, or is proposed to be, the site of gathering, 
transmitting, or distributing electricity or other energy product, or 
is otherwise receiving, processing, refining, or transshipping product, 
or services derived from activities approved under this part or 30 CFR 
part 285;
    (2) That is used, or is proposed to be used, as a support base for 
activities approved under this part or 30 CFR part 285; or
    (3) In which there is a reasonable probability of significant 
effect on land or water uses from activities approved under this part, 
or 30 CFR part 285.
    Affected State means with respect to any activities proposed, 
conducted, or approved under this part or 30 CFR part 285, any coastal 
State--
    (1) That is, or is proposed to be, the site of gathering, 
transmitting, or distributing energy or is otherwise receiving, 
processing, refining, or transshipping products, or services derived 
from activities approved under this part or 30 CFR part 285;
    (2) That is used, or is scheduled to be used, as a support base for 
activities approved under this part or 30 CFR part 285; or
    (3) In which there is a reasonable probability of significant 
effect on land or water uses from activities approved under this part 
or 30 CFR part 285.
    Archaeological resource means any material remains of human life or 
activities that are at least 50 years of age and that are of 
archaeological interest (i.e., which are capable of providing 
scientific or humanistic understanding of past human behavior, cultural 
adaptation, and related topics through the application of scientific or 
scholarly techniques, such as controlled observation, contextual 
measurement, controlled collection, analysis, interpretation, and 
explanation).
    Best available and safest technology means the best available and 
safest technologies that BOEM determines to be economically feasible 
wherever failure of equipment would have a significant effect on 
safety, health, or the environment.
    Best management practices mean practices recognized within their 
respective industry, or by government, as one of the best for achieving 
the desired output while reducing undesirable outcomes.
    BOEM means Bureau of Ocean Energy Management of the Department of 
the Interior.
    BSEE means Bureau of Safety and Environmental Enforcement of the 
Department of the Interior.
    Certified Verification Agent (CVA) means an individual or 
organization, experienced in the design, fabrication, and installation 
of offshore marine facilities or structures, who will conduct specified 
third-party reviews, inspections, and verifications in accordance with 
30 CFR part 285.
    Coastline means the same as the term ``coast line'' in section 2 of 
the Submerged Lands Act (43 U.S.C. 1301(c)).
    Commercial activities mean, for renewable energy leases and grants, 
all activities associated with the generation, storage, or transmission 
of electricity or other energy product from a renewable energy project 
on the OCS, and for which such electricity or other energy product is 
intended for distribution, sale, or other commercial use, except for 
electricity or other energy product distributed or sold pursuant to 
technology-testing activities on a limited lease. This term also 
includes activities associated with all stages of development, 
including initial site characterization and assessment, facility 
construction, and project decommissioning.
    Commercial lease means a lease issued under this part that 
specifies the terms and conditions under which a person can conduct 
commercial activities.
    Commercial operations mean the generation of electricity or other 
energy product for commercial use, sale, or distribution on a 
commercial lease.
    Decommissioning means removing BOEM and BSEE approved facilities 
and returning the site of the lease or grant to a condition that meets 
the requirements under subpart I of 30 CFR part 285.
    Director means the Director of the Bureau of Ocean Energy 
Management (BOEM), of the Department of the

[[Page 6436]]

Interior, or an official authorized to act on the Director's behalf.
    Distance means the minimum great circle distance.
    Eligible State means a coastal State having a coastline (measured 
from the nearest point) no more than 15 miles from the geographic 
center of a qualified project area.
    Facility means an installation that is permanently or temporarily 
attached to the seabed of the OCS. Facilities include any structures; 
devices; appurtenances; gathering, transmission, and distribution 
cables; pipelines; and permanently moored vessels. Any group of OCS 
installations interconnected with walkways, or any group of 
installations that includes a central or primary installation with one 
or more satellite or secondary installations, is a single facility. 
BOEM and BSEE may decide that the complexity of the installations 
justifies their classification as separate facilities.
    Geographic center of the project means the centroid (geometric 
center point) of a qualified project area. The centroid represents the 
point that is the weighted average of coordinates of the same dimension 
within the mapping system, with the weights determined by the density 
function of the system. For example, in the case of a project area 
shaped as a rectangle or other parallelogram, the geographic center 
would be that point where lines between opposing corners intersect. The 
geographic center of a project could be outside the project area itself 
if that area is irregularly shaped.
    Governor means the Governor of a State or the person or entity 
lawfully designated by or under State law to exercise the powers 
granted to a Governor.
    Grant means a right-of-way or a right-of-use and easement issued 
under the provisions of this part.
    Human environment means the physical, social, and economic 
components, conditions, and factors that interactively determine the 
state, condition, and quality of living conditions, employment, and 
health of those affected, directly or indirectly, by activities 
occurring on the OCS.
    Lease means an agreement authorizing the use of a designated 
portion of the OCS for activities allowed under this part. The term 
also means the area covered by that agreement, when the context 
requires.
    Lessee means the holder of a lease, a BOEM-approved assignee, and, 
when describing the conduct required of parties engaged in activities 
on the lease, it also refers to the operator and all persons authorized 
by the holder of the lease or operator to conduct activities on the 
lease.
    Limited lease means a lease issued under this part that specifies 
the terms and conditions under which a person may conduct activities on 
the OCS that support the production of energy, but do not result in the 
production of electricity or other energy product for sale, 
distribution, or other commercial use exceeding a limit specified in 
the lease.
    Marine environment means the physical, atmospheric, and biological 
components, conditions, and factors that interactively determine the 
productivity, state, condition, and quality of the marine ecosystem. 
These include 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.
    Miles mean nautical miles, as opposed to statute miles.
    Natural resources include, without limiting the generality thereof, 
renewable energy, oil, gas, and all other minerals (as defined in 
section 2(q) of the OCS Lands Act), and marine animal and marine plant 
life.
    Operator means the individual, corporation, or association having 
control or management of activities on a lease or grant issued under 
this part. The operator may be a lessee, grant holder, or a contractor 
designated by the lessee or holder of a grant issued under this part.
    Outer Continental Shelf (OCS) means all submerged lands lying 
seaward and outside of the area of lands beneath navigable waters, as 
defined in section 2 of the Submerged Lands Act (43 U.S.C. 1301), whose 
subsoil and seabed appertain to the United States and are subject to 
its jurisdiction and control.
    Person means, in addition to a natural person, an association 
(including partnerships and joint ventures); a Federal agency; a State; 
a political subdivision of a State; a Native American Tribal 
government; or a private, public, or municipal corporation.
    Project, for the purposes of defining the source of revenues to be 
shared, means a lease ROW, RUE, or Alternate Use RUE on which the 
activities authorized under this part and/or 30 CFR part 285 or 586 are 
conducted on the OCS. The term ``project'' may be used elsewhere in 
this rule to refer to these same authorized activities, the facilities 
used to conduct these activities, or to the geographic area of the 
project, i.e., the project area.
    Project area means the geographic surface leased, or granted, for 
the purpose of a specific project. If OCS acreage is granted for a 
project under some form of agreement other than a lease (i.e., a ROW or 
RUE, the Federal acreage granted would be considered the project area. 
To avoid distortions in the calculation of the geometric center of the 
project area, project easements issued under this part are not 
considered part of the qualified project's area.
    Project easement means an easement to which, upon approval of your 
Construction and Operations Plan (COP) or General Activities Plan 
(GAP), you are entitled as part of the lease for the purpose of 
installing, gathering, transmission, and distribution cables, 
pipelines, and appurtenances on the OCS as necessary for the full 
enjoyment of the lease.
    Renewable Energy means energy resources other than oil and gas and 
minerals as defined in 30 CFR part 580. Such resources include, but are 
not limited to, wind, solar, and ocean waves, tides, and current.
    Revenues mean bonuses, rents, operating fees, and similar payments 
made in connection with a project or project area. It does not include 
administrative fees such as those assessed for cost recovery, civil 
penalties, and forfeiture of financial assurance.
    Right-of-use and easement (RUE) grant means an easement issued by 
BOEM under this part that authorizes use of a designated portion of the 
OCS to support activities on a lease or other use authorization for 
renewable energy activities. The term also means the area covered by 
the authorization.
    Right-of-way (ROW) grant means an authorization issued by BOEM 
under this part to use a portion of the OCS for the construction and 
use of a cable or pipeline for the purpose of gathering, transmitting, 
distributing, or otherwise transporting electricity or other energy 
product generated or produced from renewable energy, but does not 
constitute a project easement under this part. The term also means the 
area covered by the authorization.
    Secretary means the Secretary of the Interior or an official 
authorized to act on the Secretary's behalf.
    Significant archaeological resource means an archaeological 
resource that meets the criteria of significance for eligibility for 
listing in the National Register of Historic Places, as defined in 36 
CFR 60.4 or its successor.
    Site assessment activities mean those initial activities conducted 
to characterize a site on the OCS, such as resource assessment surveys 
(e.g., meteorological and oceanographic) or

[[Page 6437]]

technology testing, involving the installation of bottom-founded 
facilities.
    We, us, and our refer to the Bureau of Ocean Energy Management of 
the Department of the Interior, or its possessive, depending on the 
context.
    You and your means an applicant, lessee, the operator, or 
designated operator, ROW grant holder, or RUE grant holder under this 
part, or the designated agent of any of these, or the possessive of 
each, depending on the context. The terms you and your also include 
contractors and subcontractors of the entities specified in the 
preceding sentence.


Sec.  585.114  How will data and information obtained by BOEM under 
this part be disclosed to the public?

    (a) BOEM will make data and information available in accordance 
with the requirements and subject to the limitations of the Freedom of 
Information Act (FOIA) (5 U.S.C. 552) and the regulations contained in 
43 CFR part 2.
    (b) BOEM will not release such data and information that we have 
determined is exempt from disclosure under exemption 4 of FOIA. We will 
review such data and information and objections of the submitter by the 
following schedule to determine whether release at that time will 
result in substantial competitive harm or disclosure of trade secrets.

------------------------------------------------------------------------
                                       Then BOEM will review data and
        If you have a . . .           information for possible release:
------------------------------------------------------------------------
(1) Commercial lease..............  At the earlier of:
                                      (i) 3 years after the initiation
                                    of commercial generation or
                                      (ii) 3 years after the lease
                                    terminates.
(2) Limited lease.................  At 3 years after the lease
                                     terminates.
(3) ROW or RUE grant..............  At the earliest of:
                                      (i) 10 years after the approval of
                                    the grant;
                                      (ii) Grant termination; or
                                      (iii) 3 years after the completion
                                    of construction activities.
------------------------------------------------------------------------

    (c) After considering any objections from the submitter, if we 
determine that release of such data and information will result in:
    (1) No substantial competitive harm or disclosure of trade secrets, 
then the data and information will be released.
    (2) Substantial competitive harm or disclosure of trade secrets, 
then the data and information will not be released at that time but 
will be subject to further review every 3 years thereafter.


Sec.  585.115  Paperwork Reduction Act statements--information 
collection.

    (a) The Office of Management and Budget (OMB) has approved the 
information collection requirements in this part under 44 U.S.C. 3501, 
et seq., and assigned OMB Control Number 1010-0176. The table in 
paragraph (e) of this section lists the subparts in the rule requiring 
the information and its title, summarizes the reasons for collecting 
the information, and summarizes how BOEM uses the information.
    (b) Respondents are primarily renewable energy applicants, lessees, 
ROW grant holders, RUE grant holders, Alternate Use RUE grant holders, 
and operators. The requirement to respond to the information collection 
in this part is mandated under subsection 8(p) of the OCS Lands Act. 
Some responses are also required to obtain or retain a benefit, or may 
be voluntary.
    (c) The Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) 
requires us to inform the public that an agency 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.
    (d) Comments regarding any aspect of the collections of information 
under this part, including suggestions for reducing the burden, should 
be sent to the Information Collection Clearance Officer, Bureau of 
Ocean Energy Management, 45600 Woodland Road, Sterling, VA 20166.
    (e) BOEM is collecting this information for the reasons given in 
the following table:

------------------------------------------------------------------------
                                              Reasons for collecting
      30 CFR 585 subpart and title           information and how used
------------------------------------------------------------------------
(1) Subpart A--General Provisions......  To inform BOEM of actions taken
                                          to comply with general
                                          operational requirements on
                                          the OCS. To ensure that
                                          operations on the OCS meet
                                          statutory and regulatory
                                          requirements, are safe and
                                          protect the environment, and
                                          result in diligent development
                                          on OCS leases.
(2) Subpart B--Issuance of OCS           To provide BOEM with
 Renewable Energy Leases.                 information needed to
                                          determine when to use a
                                          competitive process for
                                          issuing a renewable energy
                                          lease, to identify auction
                                          formats and bidding systems
                                          and variables that we may use
                                          when that determination is
                                          affirmative, and to determine
                                          the terms under which we will
                                          issue renewable energy leases.
(3) Subpart C--ROW Grants and RUE        To issue ROW grants and RUE
 Grants for Renewable Energy Activities.  grants for OCS renewable
                                          energy activities that are not
                                          associated with a BOEM-issued
                                          renewable energy lease.
(4) Subpart D--Lease and Grant           To ensure compliance with
 Administration.                          regulations pertaining to a
                                          lease or grant; assignment and
                                          designation of operator; and
                                          suspension, renewal,
                                          termination, relinquishment,
                                          and cancellation of leases and
                                          grants.
(5) Subpart E--Payments and Financial    To ensure that payments and
 Assurance Requirements.                  financial assurance payments
                                          for renewable energy leases
                                          comply with subpart E.
(6) Subpart F--Plan Requirements.......  To enable BOEM to comply with
                                          the National Environmental
                                          Policy Act (NEPA), the Coastal
                                          Zone Management Act (CZMA),
                                          and other Federal laws and to
                                          ensure the safety of the
                                          environment on the OCS.
------------------------------------------------------------------------


[[Page 6438]]

Sec.  585.116  Requests for information on the state of the offshore 
renewable energy industry.

    (a) The Director may, from time to time, and at the Director's 
discretion, solicit information from industry and other relevant 
stakeholders (including State and local agencies), as necessary, to 
evaluate the state of the offshore renewable energy industry, including 
the identification of potential challenges or obstacles to its 
continued development. Such requests for information may relate to the 
identification of environmental, technical, regulatory, or economic 
matters that promote or detract from continued development of renewable 
energy technologies on the OCS. From the information received, the 
Director may evaluate potential refinements to the OCS Alternative 
Energy Program that promote development of the industry in a safe and 
environmentally responsible manner, and that ensure fair value for use 
of the nation's OCS.
    (b) BOEM may make such requests for information on a regional basis 
and may tailor the requests to specific types of renewable energy 
technologies.
    (c) BOEM will publish such requests for information by the Director 
in the Federal Register.


Sec.  585.117  [Reserved]


Sec.  585.118  What are my appeal rights?

    (a) Any party adversely affected by a BOEM official's final 
decision or order issued under the regulations of this part may appeal 
that decision or order to the Interior Board of Land Appeals. The 
appeal must conform with the procedures found in 30 CFR part 590 and in 
43 CFR part 4, subpart E. Appeal of a final decision for bid acceptance 
is covered under paragraph (c) of this section.
    (b) A decision will remain in full force and effect during the 
period in which an appeal may be filed and during an appeal, unless a 
stay is granted pursuant to 43 CFR part 4.
    (c) Our decision on a bid is the final action of the Department, 
except that an unsuccessful bidder may apply for reconsideration by the 
Director.
    (1) A bidder whose bid we reject may file a written request for 
reconsideration with the Director within 15 days of the date of the 
receipt of the notice of rejection, accompanied by a statement of 
reasons, with one copy to us. The Director will respond in writing 
either affirming or reversing the decision.
    (2) The delegation of review authority given to the Office of 
Hearings and Appeals does not apply to decisions on high bids for 
leases or grants under this part.

Subpart B--Issuance of OCS Renewable Energy Leases

General Lease Information


Sec.  585.200  What rights are granted with a lease issued under this 
part?

    (a) A lease issued under this part grants the lessee the right, 
subject to obtaining the necessary approvals, including but not limited 
to those required under the FERC hydrokinetic licensing process, and 
complying with all provisions of this part, to occupy, and install and 
operate facilities on, a designated portion of the OCS for the purpose 
of conducting:
    (1) Commercial activities; or
    (2) Other limited activities that support, result from, or relate 
to the production of energy from a renewable energy source.
    (b) A lease issued under this part confers on the lessee the right 
to one or more project easements without further competition for the 
purpose of installing gathering, transmission, and distribution cables; 
pipelines; and appurtenances on the OCS as necessary for the full 
enjoyment of the lease.
    (1) You must apply for the project easement as part of your COP or 
GAP, as provided under subpart F of this part; and
    (2) BOEM will incorporate your approved project easement in your 
lease as an addendum.
    (c) A commercial lease issued under this part may be developed in 
phases, with BOEM approval as provided in Sec.  585.238.


Sec.  585.201  How will BOEM issue leases?

    BOEM will issue leases on a competitive basis, as provided under 
Sec. Sec.  585.210 through 585.225. However, if we determine after 
public notice of a proposed lease that there is no competitive 
interest, we will issue leases noncompetitively, as provided under 
Sec. Sec.  585.230 and 585.232. We will issue leases on forms approved 
by BOEM and will include terms, conditions, and stipulations identified 
and developed through the process set forth in Sec. Sec.  585.211 and 
585.231.


Sec.  585.202  What types of leases will BOEM issue?

    BOEM may issue leases on the OCS for the assessment and production 
of renewable energy and may authorize a combination of specific 
activities. We may issue commercial leases or limited leases.


Sec.  585.203  With whom will BOEM consult before issuance of a lease?

    For leases issued under this part, through either the competitive 
or noncompetitive process, BOEM, prior to issuing the lease, will 
coordinate and consult with relevant Federal agencies (including, in 
particular, those agencies involved in planning activities that are 
undertaken to avoid or minimize conflicts among users and to maximize 
the economic and ecological benefits of the OCS, including multifaceted 
spatial planning efforts), the Governor of any affected State, the 
executive of any affected local government, and any affected Indian 
Tribe, as directed by subsections 8(p)(4) and (7) of the OCS Lands Act 
or other relevant Federal laws. Federal statutes that require BOEM to 
consult with interested parties or Federal agencies or to respond to 
findings of those agencies include the Endangered Species Act (ESA) and 
the Magnuson-Stevens Fishery Conservation and Management Act (MSA). 
BOEM also engages in consultation with State and Tribal historic 
preservation officers pursuant to the National Historic Preservation 
Act (NHPA).


Sec.  585.204  What areas are available for leasing consideration?

    BOEM may offer any appropriately platted area of the OCS, as 
provided in Sec.  585.205, for a renewable energy lease, except any 
area within the exterior boundaries of any unit of the National Park 
System, National Wildlife Refuge System, National Marine Sanctuary 
System, or any National Monument.


Sec.  585.205  How will leases be mapped?

    BOEM will prepare leasing maps and official protraction diagrams of 
areas of the OCS. The areas included in each lease will be in 
accordance with the appropriate leasing map or official protraction 
diagram.


Sec.  585.206  What is the lease size?

    (a) BOEM will determine the size for each lease based on the area 
required to accommodate the anticipated activities. The processes 
leading to both competitive and noncompetitive issuance of leases will 
provide public notice of the lease size adopted. We will delineate 
leases by using mapped OCS blocks or portions, or aggregations of 
blocks.
    (b) The lease size includes the minimum area that will allow the 
lessee sufficient space to develop the project and manage activities in 
a manner that is consistent with the provisions of this part and 30 CFR 
part 285. The lease may include whole lease blocks or portions of a 
lease block.

[[Page 6439]]

Sec. Sec.  585.207-585.209  [Reserved]

Competitive Lease Process


Sec.  585.210  How does BOEM initiate the competitive leasing process?

    BOEM may publish in the Federal Register a public notice of Request 
for Interest to assess interest in leasing all or part of the OCS for 
activities authorized in this part. BOEM will consider information 
received in response to a Request for Interest to determine whether 
there is competitive interest for scheduling sales and issuing leases. 
We may prepare and issue a national, regional, or more specific 
schedule of lease sales pertaining to one or more types of renewable 
energy.


Sec.  585.211  What is the process for competitive issuance of leases?

    BOEM will use auctions to award leases on a competitive basis. We 
will publish details of the process to be employed for each lease sale 
auction in the Federal Register. For each lease sale, we will publish a 
Proposed Sale Notice and a Final Sale Notice. Individual lease sales 
will include steps such as:
    (a) Call for Information and Nominations (Call). BOEM will publish 
in the Federal Register Calls for Information and Nominations for 
leasing in specified areas. The comment period following issuance of a 
Call will be 45 days. In this document, we may:
    (1) Request comments on areas which should receive special 
consideration and analysis;
    (2) Request comments concerning geological conditions (including 
bottom hazards); archaeological sites on the seabed or nearshore; 
multiple uses of the proposed leasing area (including navigation, 
recreation, and fisheries); and other socioeconomic, biological, and 
environmental information; and
    (3) Suggest areas to be considered by the respondents for leasing.
    (b) Area identification. BOEM will identify areas for environmental 
analysis and consideration for leasing. We will do this in consultation 
with appropriate Federal agencies, States, local governments, affected 
Indian Tribes, and other interested parties.
    (1) We may consider for lease those areas nominated in response to 
the Call for Information and Nominations, together with other areas 
that BOEM determines are appropriate for leasing.
    (2) We will evaluate the potential effect of leasing on the human, 
marine, and coastal environments, and develop measures to mitigate 
adverse impacts, including lease stipulations.
    (3) We will consult to develop measures, including lease 
stipulations and conditions, to mitigate adverse impacts on the 
environment; and
    (4) We may hold public hearings on the environmental analysis after 
appropriate notice.
    (c) Proposed Sale Notice. BOEM will publish the Proposed Sale 
Notice in the Federal Register and send it to the Governor of any 
affected State, any Indian Tribe that might be affected, and the 
executive of any local government that might be affected. The comment 
period following issuance of a Proposed Sale Notice will be 60 days.
    (d) Final Sale Notice. BOEM will publish the Final Sale Notice in 
the Federal Register at least 30 days before the date of the sale.


Sec.  585.212  What is the process BOEM will follow if there is reason 
to believe that competitors have withdrawn before the Final Sale Notice 
is issued?

    BOEM may decide to end the competitive process before the Final 
Sale Notice if we have reason to believe that competitors have 
withdrawn and competition no longer exists. We will issue a second 
public notice of Request for Interest and consider comments received to 
confirm that there is no competitive interest.
    (a) If, after reviewing comments in response to the notice of 
Request for Interest, BOEM determines that there is no competitive 
interest in the lease area, and one party wishes to acquire a lease, we 
will discontinue the competitive process and will proceed with the 
noncompetitive process set forth in Sec.  585.231(d) through (i) 
following receipt of the acquisition fee specified in Sec.  585.502(a).
    (b) If, after reviewing comments in response to the notice of 
Request for Interest, BOEM determines that competitive interest in the 
lease area continues to exist, we will continue with the competitive 
process set forth in Sec. Sec.  585.211 through 585.225.


Sec.  585.213  What must I submit in response to a Request for Interest 
or a Call for Information and Nominations?

    If you are a potential lessee, when you respond to a Request for 
Interest or a Call, your response must include the following items:
    (a) The area of interest for a possible lease.
    (b) A general description of your objectives and the facilities 
that you would use to achieve those objectives.
    (c) A general schedule of proposed activities, including those 
leading to commercial operations.
    (d) Available and pertinent data and information concerning 
renewable energy and environmental conditions in the area of interest, 
including energy and resource data and information used to evaluate the 
area of interest. BOEM will withhold trade secrets and commercial or 
financial information that is privileged or confidential from public 
disclosure under exemption 4 of the FOIA and as provided in Sec.  
585.114.
    (e) Documentation showing that you are qualified to hold a lease, 
as specified in Sec.  585.107.
    (f) Any other information requested by BOEM in the Federal Register 
notice.


Sec.  585.214  What will BOEM do with information from the Requests for 
Information or Calls for Information and Nominations?

    BOEM will use the information received in response to the Requests 
or Calls to:
    (a) Identify the lease area;
    (b) Develop options for the environmental analysis and leasing 
provisions (stipulations, payments, terms, and conditions); and
    (c) Prepare appropriate documentation to satisfy applicable Federal 
requirements, such as NEPA, CZMA, the ESA, and the MMPA.


Sec.  585.215  What areas will BOEM offer in a lease sale?

    BOEM will offer the areas for leasing determined through the 
process set forth in Sec.  585.211. We will not accept nominations 
after the Call for Information and Nominations closes.


Sec.  585.216  What information will BOEM publish in the Proposed Sale 
Notice and Final Sale Notice?

    For each competitive lease sale, BOEM will publish a Proposed Sale 
Notice and a Final Sale Notice in the Federal Register. In the Proposed 
Sale Notice, we will request public comment on the items listed in this 
section. We will consider all public comments received in developing 
the final lease sale terms and conditions. We will publish the final 
terms and conditions in the Final Sale Notice. The Proposed Sale Notice 
and Final Sale Notice will include, or describe the availability of, 
information pertaining to:
    (a) The area available for leasing.
    (b) Proposed and final lease provisions and conditions, including, 
but not limited to:
    (1) Lease size;
    (2) Lease term;
    (3) Payment requirements;
    (4) Performance requirements; and
    (5) Site-specific lease stipulations.
    (c) Auction details, including:
    (1) Bidding procedures and systems;
    (2) Minimum bid;
    (3) Deposit amount;
    (4) The place and time for filing bids and the place, date, and 
hour for opening bids;

[[Page 6440]]

    (5) Lease award method; and
    (6) Bidding or application instructions.
    (d) The official BOEM lease form to be used or a reference to that 
form.
    (e) Criteria BOEM will use to evaluate competing bids or 
applications and how the criteria will be used in decision-making for 
awarding a lease.
    (f) Award procedures, including how and when BOEM will award leases 
and how BOEM will handle unsuccessful bids or applications.
    (g) Procedures for appealing the lease issuance decision.
    (h) Execution of the lease instrument.


Sec. Sec.  585.217-585.219  [Reserved]

    Competitive Lease Award Process


Sec.  585.220  What auction format may BOEM use in a lease sale?

    (a) Except as provided in Sec.  585.231, we will hold competitive 
auctions to award renewable energy leases and will use one of the 
following auction formats, as determined through the lease sale process 
and specified in the Proposed Sale Notice and in the Final Sale Notice:

------------------------------------------------------------------------
       Type of auction            Bid variable         Bidding process
------------------------------------------------------------------------
(1) Sealed bidding..........  A cash bonus or an    One sealed bid per
                               operating fee rate.   company per lease
                                                     or packaged bidding
                                                     unit.
(2) Ascending bidding.......  A cash bonus or an    Continuous bidding
                               operating fee rate.   per lease.
(3) Two-stage bidding         An operating fee      Ascending or sealed
 (combination of ascending     rate in one, both,    bidding until:
 and sealed bidding).          or neither stage     (i) Only two bidders
                               and a cash bonus in   remain, or
                               one, both, or        (ii) More than one
                               neither stage.        bidder offers to
                                                     pay the maximum bid
                                                     amount.
                                                    Stage-two sealed or
                                                     ascending bidding
                                                     commences at some
                                                     predetermined time
                                                     after the end of
                                                     stage-one bidding.
(4) Multiple-factor bidding.  Factors may include,  One proposal per
                               but are not limited   company per lease
                               to: technical         or packaged bidding
                               merit, timeliness,    unit.
                               financing and
                               economics,
                               environmental
                               considerations,
                               public benefits,
                               compatibility with
                               State and local
                               needs, cash bonus,
                               rental rate, and an
                               operating fee rate.
------------------------------------------------------------------------

    (b) You must submit your bid and a deposit as specified in 
Sec. Sec.  585.500 and 585.501 to cover the bid for each lease area, 
according to the terms specified in the Final Sale Notice.


Sec.  585.221  What bidding systems may BOEM use for commercial leases 
and limited leases?

    (a) For commercial leases, we will specify minimum bids in the 
Final Sale Notice and use one of the following bidding systems, as 
specified in the Proposed Sale Notice and in the Final Sale Notice:

------------------------------------------------------------------------
               Bid system                          Bid variable
------------------------------------------------------------------------
(1) Cash bonus with a constant fee rate  Cash bonus.
 (decimal).
(2) Constant operating fee rate with     A fee rate used in the formula
 fixed cash bonus.                        found in Sec.   585.506 to set
                                          the operating fee per year
                                          during the operations term of
                                          your lease.
(3) Sliding operating fee rate with a    A fee rate used in the formula
 fixed cash bonus.                        in Sec.   585.506 to set the
                                          operating fee for the first
                                          year of the operations term of
                                          your lease. The fee rate for
                                          subsequent years changes by a
                                          mathematical function we
                                          specify in the Final Sale
                                          Notice.
(4) Cash bonus and constant operating    Cash bonus and operating fee
 fee rate.                                rate as stated in paragraph
                                          (a)(2) of this section (two-
                                          stage auction format only).
(5) Cash bonus and sliding operating     Cash bonus and operating fee
 fee rate.                                rate as stated in paragraph
                                          (a)(3) of this section (two-
                                          stage auction format only).
(6) Multiple-factor combination of       BOEM will identify bidding
 nonmonetary and monetary factors.        variables in the Final Sale
                                          Notice.
                                         Variables may include:
                                          (i) Nonmonetary (e.g.,
                                          technical merit) factors and
                                          (ii) Monetary (e.g., cash
                                          bonus, rental rate, fee rate)
                                          factors.
------------------------------------------------------------------------

    (b) For limited leases, the bid variable will be a cash bonus, with 
a minimum bid as we specify in the Final Sale Notice.


Sec.  585.222  What does BOEM do with my bid?

    (a) If sealed bidding is used:
    (1) We open the sealed bids at the place, date, and hour specified 
in the Final Sale Notice for the sole purpose of publicly announcing 
and recording the bids. We do not accept or reject any bids at that 
time.
    (2) We reserve the right to reject any and all high bids, including 
a bid for any proposal submitted under the multiple-factor bidding 
format, regardless of the amount offered or bidding system used. The 
reasons for the rejection of a winning bid may include, but are not 
necessarily limited to, insufficiency, illegality, anti-competitive 
behavior, administrative error, and the presence of unusual bidding 
patterns. We intend to accept or reject all high bids within 90 days, 
but we may extend that time if necessary.
    (b) If we use ascending bidding, we may, in the Final Sale Notice, 
reserve the right to accept the winning bid solely based on its being 
the highest bid submitted by a qualified bidder (qualified to be an OCS 
lessee under Sec.  585.107).
    (c) If we use two-stage bidding and the auction concludes with:
    (1) An ascending bidding stage, the winning bid will be determined 
as stated in paragraph (b) of this section; or
    (2) A sealed bidding stage, the winning bid will be determined as 
stated in paragraph (a) of this section.

[[Page 6441]]

    (d) If we use multiple-factor bidding, determination of the winning 
bid for any proposal submitted will be made by a panel composed of 
members selected by BOEM. The details of the process will be described 
in the Final Sale Notice.
    (e) We will send a written notice of our decision to accept or 
reject bids to all bidders whose deposits we hold.


Sec.  585.223  What does BOEM do if there is a tie for the highest bid?

    (a) Unless otherwise specified in the Final Sale Notice, except in 
the first stage of a two-stage bidding auction, if more than one bidder 
on a lease submits the same high bid amount, the winning bidder will be 
determined by a further round or stage of bidding as described in the 
Final Sale Notice.
    (b) The winning bidder will be subject to final confirmation 
following determination of bid adequacy.


Sec.  585.224  What happens if BOEM accepts my bid?

    If we accept your bid, we will send you a notice with three copies 
of the lease form.
    (a) Within 10 business days after you receive the lease copies, you 
must:
    (1) Execute the lease;
    (2) File financial assurance as required under Sec. Sec.  585.515 
through 585.537 as applicable; and
    (3) Pay the balance of the bonus bid as specified in the lease sale 
notice.
    (b) Within 45 days after you receive the lease copies, you must pay 
the first 12 months' rent as required in Sec.  585.503.
    (c) When you execute three copies of the lease and return the 
copies to us, we will execute the lease on behalf of the United States 
and send you one fully executed copy.
    (d) You will forfeit your deposit if you do not execute and return 
the lease within 10- business days of receipt, or otherwise fail to 
comply with applicable regulations or terms of the Final Sale Notice.
    (e) We may extend the 10 business day time period for executing and 
returning the lease if we determine the delay to be caused by events 
beyond your control.
    (f) We reserve the right to withdraw an OCS area in which we have 
held a lease sale before you and BOEM execute the lease in that area. 
If we exercise this right, we will refund your bid deposit, without 
interest.
    (g) If the awarded lease is executed by an agent acting on behalf 
of the bidder, the bidder must submit, along with the executed lease, 
written evidence that the agent is authorized to act on behalf of the 
bidder.
    (h) BOEM will consider the highest submitted qualified bid to be 
the winning bid when bidding occurs under the systems described in 
Sec.  585.221(a)(1) through (5). We will determine the winning bid for 
proposals submitted under the multiple-factor bidding format on the 
basis of selection by the panel as specified in Sec.  585.222(d) when 
the bidding system under Sec.  585.221(a)(6) is used. We will refund 
the deposit on all other bids.


Sec.  585.225  What happens if my bid is rejected, and what are my 
appeal rights?

    (a) If we reject your bid, we will provide a written statement of 
the reasons and refund any money deposited with your bid, without 
interest.
    (b) You may ask the BOEM Director for reconsideration, in writing, 
within 15 business days of bid rejection, under Sec.  585.118(c)(1). We 
will send you a written response either affirming or reversing the 
rejection.


Sec. Sec.  585.226-585.229  [Reserved]

Noncompetitive Lease Award Process


Sec.  585.230  May I request a lease if there is no Call?

    You may submit an unsolicited request for a commercial lease or a 
limited lease under this part. Your unsolicited request must contain 
the following information:
    (a) The area you are requesting for lease.
    (b) A general description of your objectives and the facilities 
that you would use to achieve those objectives.
    (c) A general schedule of proposed activities including those 
leading to commercial operations.
    (d) Available and pertinent data and information concerning 
renewable energy and environmental conditions in the area of interest, 
including energy and resource data and information used to evaluate the 
area of interest. BOEM will withhold trade secrets and commercial or 
financial information that is privileged or confidential from public 
disclosure under exemption 4 of the FOIA and as provided in Sec.  
585.114.
    (e) If available from the appropriate State or local government 
authority, a statement that the proposed activity conforms with State 
and local energy planning requirements, initiatives, or guidance.
    (f) Documentation showing that you meet the qualifications to 
become a lessee, as specified in Sec.  585.107.
    (g) An acquisition fee, as specified in Sec.  585.502(a).


Sec.  585.231  How will BOEM process my unsolicited request for a 
noncompetitive lease?

    (a) BOEM will consider unsolicited requests for a lease on a case-
by-case basis and may issue a lease noncompetitively in accordance with 
this part. We will not consider an unsolicited request for a lease 
under this part that is proposed in an area of the OCS that is 
scheduled for a lease sale under this part.
    (b) BOEM will issue a public notice of a request for interest 
relating to your proposal and consider comments received to determine 
if competitive interest exists.
    (c) If BOEM determines that competitive interest exists in the 
lease area:
    (1) BOEM will proceed with the competitive process set forth in 
Sec. Sec.  585.210 through 585.225;
    (2) If you submit a bid for the lease area in a competitive lease 
sale, your acquisition fee will be applied to the deposit for your 
bonus bid; and
    (3) If you do not submit a bid for the lease area in a competitive 
lease sale, BOEM will not refund your acquisition fee.
    (d) If BOEM determines that there is no competitive interest in a 
lease, we will publish in the Federal Register a notice of 
Determination of No Competitive Interest. After BOEM publishes this 
notice, you will be responsible for submitting any required consistency 
certification and necessary data and information pursuant to 15 CFR 
part 930, subpart D, to the applicable State CZMA agency or agencies 
and BOEM.
    (e) BOEM will coordinate and consult with affected Federal 
agencies, State, and local governments, and affected Indian Tribes in 
the review of noncompetitive lease requests.
    (f) After completing the review of your lease request, BOEM may 
offer you a noncompetitive lease.
    (g) If you accept the terms and conditions of the lease, then we 
will issue the lease, and you must comply with all terms and conditions 
of your lease and all applicable provisions of this part and 30 CFR 
part 285. If we issue you a lease, we will send you a notice with 3 
copies of the lease form.
    (1) Within 10 business days after you receive the lease copies you 
must:
    (i) Execute the lease;
    (ii) File financial assurance as required under Sec. Sec.  585.515 
through 585.537; and
    (2) Within 45 days after you receive the lease copies, you must pay 
the first 12 months' rent, as required in Sec.  585.503.

[[Page 6442]]

    (h) BOEM will publish in the Federal Register a notice announcing 
the issuance of your lease.
    (i) If you do not accept the terms and conditions, BOEM will not 
issue a lease and will not refund your acquisition fee.


Sec.  585.232  May I acquire a lease noncompetitively after responding 
to a Request for Interest or Call for Information and Nominations?

    (a) If you submit an area of interest for a possible lease and BOEM 
receives no competing submissions in response to the RFI or Call, we 
may inform you that there does not appear to be competitive interest, 
and ask if you wish to proceed with acquiring a lease.
    (b) If you wish to proceed with acquiring a lease, you must submit 
your acquisition fee as specified in Sec.  585.502(a).
    (c) After receiving the acquisition fee, BOEM will follow the 
process outlined in Sec.  585.231(d) through (i).


Sec. Sec.  585.233-585.234  [Reserved]

Commercial and Limited Lease Terms


Sec.  585.235  If I have a commercial lease, how long will my lease 
remain in effect?

    (a) For commercial leases, the lease terms and applicable automatic 
extensions are as shown in the following table:

------------------------------------------------------------------------
         Lease term           Automatic extensions      Requirements
------------------------------------------------------------------------
(1) Each commercial lease     If BOEM receives a    The SAP must meet
 will have a preliminary       SAP that satisfies    the requirements of
 term of 12 months, within     the requirements of   Sec.  Sec.
 which the lessee must         Sec.  Sec.            585.605-585.613.
 submit: (i) a SAP; or (ii)    585.605-585.613 or    The SAP/COP must
 a combined SAP and            a SAP/COP that        meet the
 Construction and Operations   satisfies the         requirements of
 Plan (COP). The preliminary   requirements of       Sec.  Sec.
 term begins on the            Sec.  Sec.            585.605-585.613 and
 effective date of the lease.  585.605-585.613 and   Sec.  Sec.
                               Sec.  Sec.            585.620-585.628.
                               585.620-585.628,
                               the preliminary
                               term will be
                               extended for the
                               time necessary for
                               us to conduct
                               technical and
                               environmental
                               reviews of the SAP
                               or SAP/COP.
(2) A commercial lease will   If we receive a COP   The COP must meet
 have a site assessment term   that satisfies the    the requirements of
 of five years to conduct      requirements of       Sec.  Sec.
 site assessment activities    Sec.  Sec.            585.620-585.628.
 and to submit a COP, if a     585.620-585.628,
 SAP/COP has not been          the site assessment
 submitted. Your site          term will be
 assessment term begins when   automatically
 BOEM approves your SAP or     extended for the
 SAP/COP.                      period of time
                               necessary for us to
                               conduct technical
                               and environmental
                               reviews of the COP.
(3) A commercial lease will   ....................  The lease renewal
 have an operations term of                          request must meet
 25 years, unless a longer                           the requirements in
 term is negotiated by the                           Sec.  Sec.
 parties. A request for                              585.425-585.429.
 lease renewal must be
 submitted two years before
 the end of the operations
 term. If you submit a COP,
 your operations term begins
 on the date that BOEM
 approves the COP. If you
 submit a SAP/COP, your
 operations term begins on
 the earliest of the
 following dates: five years
 after BOEM approves the SAP/
 COP; when fabrication
 begins; or, when
 installation commences.
(4) A commercial lease may    ....................  NOTE: BOEM may also
 have additional time added                          order or grant a
 to the operations term                              suspension of the
 through a lease renewal.                            operations term, as
 The term of the lease                               provided in Sec.
 renewal will not exceed the                         Sec.   585.415-
 original term of the lease,                         585.421 thereby
 unless a longer term is                             effectively
 negotiated by the parties.                          extending the term
 The lease renewal term                              of the lease.
 begins upon expiration of
 the original operations
 term.
------------------------------------------------------------------------

    (b) If you do not timely submit a SAP, COP, or SAP/COP, as 
appropriate, you may request additional time to extend the preliminary 
or site assessment term of your commercial lease that includes a 
revised schedule for submission of the plan, as appropriate.


Sec.  585.236  If I have a limited lease, how long will my lease remain 
in effect?

    (a) For limited leases, the lease terms are as shown in the 
following table:

------------------------------------------------------------------------
                                  Extension or
         Lease term                suspension           Requirements
------------------------------------------------------------------------
(1) Each limited lease has a  If we receive a GAP   The GAP must meet
 preliminary term of 12        that satisfies the    the requirements of
 months to submit a GAP. The   requirements of       Sec.  Sec.
 preliminary term begins on    Sec.  Sec.            585.640-585.648.
 the effective date of the     585.640-585.648 of
 lease.                        this part, the
                               preliminary term
                               will be
                               automatically
                               extended for the
                               period of time
                               necessary for us to
                               conduct a technical
                               and environmental
                               review of the plans.
(2) Each limited lease has    We may order or       ....................
 an operations term of five    grant a suspension
 years for conducting site     of the operations
 assessment, technology        term as provided in
 testing, or other             Sec.  Sec.
 activities. The operations    585.415-585.421.
 term begins on the date
 that we approve your GAP.
------------------------------------------------------------------------

    (b) If you do not timely submit a GAP, you may request additional 
time to extend the preliminary term of your limited lease that includes 
a revised schedule for submission of a GAP.

[[Page 6443]]

Sec.  585.237  What is the effective date of a lease?

    (a) A lease issued under this part must be dated and becomes 
effective as of the first day of the month following the date a lease 
is signed by the lessor.
    (b) If the lessee submits a written request and BOEM approves, a 
lease may be dated and become effective the first day of the month in 
which it is signed by the lessor.


Sec.  585.238  May I develop my commercial lease in phases?

    In your COP, you may request development of your commercial lease 
in phases. In support of your request, you must provide details as to 
what portions of the lease will be initially developed for commercial 
operations and what portions of the lease will be reserved for 
subsequent phased development.


Sec.  585.239  Are there any other renewable energy research activities 
that will be allowed on the OCS?

    (a) The Director may issue OCS leases, ROW grants, and RUE grants 
to a Federal agency or a State for renewable energy research activities 
that support the future production, transportation, or transmission of 
renewable energy.
    (b) In issuing leases, ROW grants, and RUE grants to a Federal 
agency or a State on the OCS for renewable energy research activities 
under this provision, BOEM will coordinate and consult with other 
relevant Federal agencies, any other affected State(s), affected local 
government executives, and affected Indian Tribes.
    (c) BOEM may issue leases, RUEs, and ROWs for research activities 
managed by a Federal agency or a State only in areas for which the 
Director has determined, after public notice and opportunity to 
comment, that no competitive interest exists.
    (d) The Director and the head of the Federal agency or the Governor 
of a requesting State, or their authorized representatives, will 
negotiate the terms and conditions of such renewable energy leases, 
RUEs, or ROWs under this provision on a case-by-case basis. The 
framework for such negotiations, and standard terms and conditions of 
such leases, RUEs, or ROWs may be set forth in a memorandum of 
agreement (MOA) or other agreement between BOEM and a Federal agency or 
a State. The MOA must include the agreement of the head of the Federal 
agency or the Governor to assure that all subcontractors comply with 
this part and 30 CFR part 285, other applicable laws, and terms and 
conditions of such leases or grants.
    (e) Any lease, RUE, or ROW that BOEM issues to a Federal agency or 
to a State that authorizes access to an area of the OCS for research 
activities managed by a Federal agency or a State must include:
    (1) Requirements to comply with all applicable Federal laws; and
    (2) Requirements to comply with these regulations and 30 CFR part 
285, except as otherwise provided in the lease or grant.
    (f) BOEM will issue a public notice of any lease, RUE, ROW issued 
to a Federal agency or to a State, or an approved MOA for such research 
activities.
    (g) BOEM will not charge any fees for the purpose of ensuring a 
fair return for the use of such research areas on the OCS.

Subpart C--Right-of-Way (ROW) and Right-of-Use and Easement (RUE) 
Grants for Renewable Energy Activities

ROW Grants and RUE Grants


Sec.  585.300  What types of activities are authorized by ROW grants 
and RUE grants issued under this part?

    (a) A ROW grant authorizes the holder to install on the OCS cables, 
pipelines, and associated facilities that involve the transportation or 
transmission of electricity or other energy product from renewable 
energy projects.
    (b) A RUE grant authorizes the holder to construct and maintain 
facilities or other installations on the OCS that support the 
production, transportation, or transmission of electricity or other 
energy product from any renewable energy resource.
    (c) You do not need a ROW grant or RUE grant for a project easement 
authorized under Sec.  585.200(b) to serve your lease.


Sec.  585.301  What do ROW grants and RUE grants include?

    (a) A ROW grant:
    (1) Includes the full length of the corridor on which a cable, 
pipeline, or associated facility is located;
    (2) Is 200 feet (61 meters) in width, centered on the cable or 
pipeline, unless safety and environmental factors during construction 
and maintenance of the associated cable or pipeline require a greater 
width; and
    (3) For the associated facility, is limited to the area reasonably 
necessary for a power or pumping station or other accessory facility.
    (b) A RUE grant includes the site on which a facility or other 
structure is located and the areal extent of anchors, chains, and other 
equipment associated with a facility or other structure. The specific 
boundaries of a RUE will be determined by BOEM on a case-by-case basis 
and set forth in each RUE grant.


Sec.  585.302  What are the general requirements for ROW grant and RUE 
grant holders?

    (a) To acquire a ROW grant or RUE grant you must provide evidence 
that you meet the qualifications as required in Sec.  585.107.
    (b) A ROW grant or RUE grant is subject to the following 
conditions:
    (1) The rights granted will not prevent the granting of other 
rights by the United States, either before or after the granting of the 
ROW or RUE, provided that any subsequent authorization issued by BOEM 
in the area of a previously issued ROW grant or RUE grant may not 
unreasonably interfere with activities approved or impede existing 
operations under such a grant; and
    (2) The holder agrees that the United States, its lessees, or other 
ROW grant or RUE grant holders may use or occupy any part of the ROW 
grant or RUE grant not actually occupied or necessarily incident to its 
use for any necessary activities.


Sec.  585.303  How long will my ROW grant or RUE grant remain in 
effect?

    (a) Each ROW or RUE grant will have a preliminary term of 12 months 
from the date of issuance of the ROW or RUE grant within which to 
submit a GAP. The preliminary term begins on the effective date of the 
grant. You must submit a GAP no later than the end of the preliminary 
term for your grant to remain in effect. However, you may submit a GAP 
prior to the issuance of your ROW or RUE grant.
    (b) Except as described in paragraph (a) of this section, your ROW 
grant or RUE grant will remain in effect for as long as the associated 
activities are properly maintained and used for the purpose for which 
the grant was made, unless otherwise expressly stated in the grant.


Sec.  585.304  [Reserved]

Obtaining ROW Grants and RUE Grants


Sec.  585.305  How do I request a ROW grant or RUE grant?

    You must submit to BOEM one paper copy and one electronic copy of a 
request for a new or modified ROW grant or RUE grant. You must submit a 
separate request for each ROW grant or RUE grant you are requesting. 
The request must contain the following information:
    (a) The area you are requesting for a ROW grant or RUE grant.

[[Page 6444]]

    (b) A general description of your objectives and the facilities 
that you would use to achieve those objectives.
    (c) A general schedule of proposed activities.
    (d) Pertinent information concerning environmental conditions in 
the area of interest.


Sec.  585.306  What action will BOEM take on my request?

    BOEM will consider requests for ROW grants and RUE grants on a 
case-by-case basis and may issue a grant competitively, as provided in 
Sec.  585.308, or noncompetitively if we determine after public notice 
that there is no competitive interest. BOEM will coordinate and consult 
with relevant Federal agencies, with the Governor of any affected 
State, and the executive of any affected local government.
    (a) In response to an unsolicited request for a ROW grant or RUE 
grant, BOEM will first determine if there is competitive interest, as 
provided in Sec.  585.307.
    (b) If BOEM determines that there is no competitive interest in a 
ROW grant or RUE grant, we will publish a notice in the Federal 
Register of such determination. After BOEM publishes this notice, you 
will be responsible for submitting any required consistency 
certification and necessary data and information pursuant to 15 CFR 
part 930, subpart D, to the applicable State CZMA agency or agencies 
and BOEM. We will establish terms and conditions for the grant in 
consultation with you.


Sec.  585.307  How will BOEM determine whether competitive interest 
exists for ROW grants and RUE grants?

    To determine whether or not there is competitive interest:
    (a) We will publish a public notice, describing the parameters of 
the project, to give affected and interested parties an opportunity to 
comment on the proposed ROW grant or RUE grant area.
    (b) We will evaluate any comments received on the notice and make a 
determination of the level of competitive interest.


Sec.  585.308  How will BOEM conduct an auction for ROW grants and RUE 
grants?

    (a) If BOEM determines that there is competitive interest, we will:
    (1) Publish a notice of each grant auction in the Federal Register 
describing auction procedures, allowing interested persons 30 days to 
comment; and
    (2) Conduct a competitive auction for issuing the ROW grant or RUE 
grant. The auction process for ROW grants and RUE grants will be 
conducted following the same process for leases set forth in Sec. Sec.  
585.211 through 585.225.
    (b) If you are the successful bidder in an auction, you must pay 
the first year's rent, as provided in Sec.  585.316.


Sec.  585.309  When will BOEM issue a noncompetitive ROW grant or RUE 
grant?

    After completing the review of your grant request, BOEM may offer 
you a noncompetitive grant.
    (a) If you accept the terms and conditions of the grant, then we 
will issue the grant, and you must comply with all terms and conditions 
of your grant and all applicable provisions of this part and 30 CFR 
part 285.
    (b) If you do not accept the terms and conditions, BOEM will not 
issue a grant.


Sec.  585.310  What is the effective date of a ROW grant or RUE grant?

    Your ROW grant or RUE grant becomes effective on the date 
established by BOEM on the ROW grant or RUE grant instrument.


Sec.  Sec.  585.311-585.314  [Reserved]

Financial Requirements for ROW Grants and RUE Grants


Sec.  585.315  What deposits are required for a competitive ROW grant 
or RUE grant?

    (a) You must make a deposit, as required in Sec.  585.501(a), 
regardless of whether the auction is a sealed-bid, oral, electronic, or 
other auction format. BOEM will specify in the sale notice the official 
to whom you must submit the payment, the time by which the official 
must receive the payment, and the forms of acceptable payment.
    (b) If your high bid is rejected, we will provide a written 
statement of reasons.
    (c) For all rejected bids, we will refund, without interest, any 
money deposited with your bid.


Sec.  585.316  What payments are required for ROW grants or RUE grants?

    Before we issue the ROW grant or RUE grant, you must pay:
    (a) Any balance on accepted high bids to ONRR, as provided in the 
sale notice.
    (b) An annual rent for the first year of the grant, as specified in 
Sec.  585.508.

Subpart D--Lease and Grant Administration


Sec.  Sec.  585.400-585.404  [Reserved]

Designation of Operator


Sec.  585.405  How do I designate an operator?

    (a) If you intend to designate an operator who is not the lessee or 
grant holder, you must identify the proposed operator in your SAP 
(under Sec.  585.610(a)(3)), COP (under Sec.  585.626(b)(2)), or GAP 
(under Sec.  585.645(b)(3)), as applicable. If no operator is 
designated in a SAP, COP, or GAP, BOEM will deem the lessee or grant 
holder to be the operator.
    (b) An operator must be designated in any SAP, COP, or GAP if there 
is more than one lessee or grant holder for any individual lease or 
grant.
    (c) Once approved in your plan, the designated operator is 
authorized to act on your behalf and required to perform activities 
necessary to comply with the OCS Lands Act, the lease or grant, and the 
regulations in this part.
    (d) You, or your designated operator, must immediately provide BOEM 
with a written notification of change of address of the lessee or 
operator.
    (e) If there is a change in the designated operator, you must 
provide written notice to BOEM and identify the new designated operator 
within 72 hours on a form approved by BOEM. The lessee(s) or grantee(s) 
is the operator and responsible for compliance until BOEM approves 
designation of the new operator.
    (f) Designation of an operator under any lease or grant issued 
under this part does not relieve the lessee or grant holder of its 
obligations under this part or its lease or grant.
    (g) A designated operator performing activities on the lease must 
comply with all regulations governing those activities and may be held 
liable or penalized for any noncompliance during the time it was the 
operator, notwithstanding its subsequent resignation.


Sec.  585.406  Who is responsible for fulfilling lease and grant 
obligations?

    (a) When you are not the sole lessee or grantee, you and your co-
lessee(s) or co-grantee(s) are jointly and severally responsible for 
fulfilling your obligations under the lease or grant and the provisions 
of this part and 30 CFR part 285, unless otherwise provided in these 
regulations.
    (b) If your designated operator fails to fulfill any of your 
obligations under the lease or grant and this part, BOEM may require 
you or any or all of your co-lessees or co-grantees to fulfill those 
obligations or other operational obligations under the OCS Lands Act, 
the lease, grant, or the regulations.
    (c) Whenever the regulations in this part require the lessee or 
grantee to conduct an activity in a prescribed manner, the lessee or 
grantee and operator (if one has been designated) are jointly and 
severally responsible for complying with the regulations.

[[Page 6445]]

Sec.  585.407  [Reserved]

Lease or Grant Assignment


Sec.  585.408  May I assign my lease or grant interest?

    (a) You may assign all or part of your lease or grant interest, 
including record title, subject to BOEM approval under this subpart. 
Each instrument that creates or transfers an interest must describe the 
entire tract or describe by officially designated subdivisions the 
interest you propose to create or transfer.
    (b) You may assign a lease or grant interest by submitting one 
paper copy and one electronic copy of an assignment application to 
BOEM. The assignment application must include:
    (1) BOEM-assigned lease or grant number;
    (2) A description of the geographic area or undivided interest you 
are assigning;
    (3) The names of both the assignor and the assignee, if applicable;
    (4) The names and telephone numbers of the contacts for both the 
assignor and the assignee;
    (5) The names, titles, and signatures of the authorizing officials 
for both the assignor and the assignee;
    (6) A statement that the assignee agrees to comply with and to be 
bound by the terms and conditions of the lease or grant;
    (7) The qualifications of the assignee to hold a lease or grant 
under Sec.  585.107; and
    (8) A statement on how the assignee will comply with the financial 
assurance requirements of Sec. Sec.  585.515 through 585.537. No 
assignment will be approved until the assignee provides the required 
financial assurance.
    (c) If you submit an application to assign a lease or grant, you 
will continue to be responsible for payments that are or become due on 
the lease or grant until the date BOEM approves the assignment.
    (d) The assignment takes effect on the date BOEM approves your 
application.
    (e) You do not need to request an assignment for mergers, name 
changes, or changes of business form. You must notify BOEM of these 
events under Sec.  585.109.


Sec.  585.409  How do I request approval of a lease or grant 
assignment?

    (a) You must request approval of each assignment on a form approved 
by BOEM, and submit originals of each instrument that creates or 
transfers ownership of record title or certified copies thereof within 
90 days after the last party executes the transfer agreement.
    (b) Any assignee will be subject to all the terms and conditions of 
your original lease or grant, including the requirement to furnish 
financial assurance in the amount required in Sec. Sec.  585.515 
through 585.537.
    (c) The assignee must submit proof of eligibility and other 
qualifications specified in Sec.  585.107.
    (d) Persons executing on behalf of the assignor and assignee must 
furnish evidence of authority to execute the assignment.


Sec.  585.410  How does an assignment affect the assignor's liability?

    As assignor, you are liable for all obligations, monetary and 
nonmonetary, that accrued under your lease or grant before BOEM 
approves your assignment. Our approval of the assignment does not 
relieve you of these accrued obligations. BOEM may require you to bring 
the lease or grant into compliance to the extent the obligation accrued 
before the effective date of your assignment if your assignee or 
subsequent assignees fail to perform any obligation under the lease or 
grant.


Sec.  585.411  How does an assignment affect the assignee's liability?

    (a) As assignee, you are liable for all lease or grant obligations 
that accrue after BOEM approves the assignment. As assignee, you must 
comply with all the terms and conditions of the lease or grant and all 
applicable regulations, remedy all existing environmental and 
operational problems on the lease or grant, and comply with all 
decommissioning requirements under 30 CFR part 285, subpart I.
    (b) Assignees are bound to comply with each term or condition of 
the lease or grant and the regulations in this part and 30 CFR part 
285. You are jointly and severally liable for the performance of all 
obligations under the lease or grant and under the regulations in this 
part and 30 CFR part 285 with each prior and subsequent lessee who held 
an interest from the time the obligation accrued until it is satisfied, 
unless this part provides otherwise.


Sec.  Sec.  585.412-585.414  [Reserved]

Lease or Grant Suspension


Sec.  585.415  What is a lease or grant suspension?

    (a) A suspension is an interruption of the term of your lease or 
grant that may occur:
    (1) As approved by BOEM at your request, as provided in Sec.  
585.416; or
    (2) As ordered by BOEM, as provided in Sec.  585.417 or by BSEE as 
provided in 30 CFR 285.417.
    (b) A lease or grant suspension extends the term of your lease or 
grant for the length of time the suspension is in effect.
    (c) Activities may not be conducted on your lease or grant during 
the period of a suspension except as expressly authorized under the 
terms of the lease or grant suspension.


Sec.  585.416  How do I request a lease or grant suspension?

    You must submit a written request to BOEM that includes the 
following information no later than 90 days prior to the expiration of 
your appropriate lease or grant term:
    (a) The reasons you are requesting suspension of your lease or 
grant term, and the length of additional time requested.
    (b) An explanation of why the suspension is necessary in order to 
ensure full enjoyment of your lease or grant and why it is in the 
lessor's or grantor's interest to approve the suspension.
    (c) If you do not timely submit a SAP, COP, or GAP, as required, 
you may request a suspension to extend the preliminary or site 
assessment term of your lease or grant that includes a revised schedule 
for submission of a SAP, COP, or GAP, as appropriate.
    (d) Any other information BOEM may require.


Sec.  585.417  When may BOEM order a suspension?

    BOEM may order a suspension under the following circumstances:
    (a) When necessary to comply with judicial decrees prohibiting some 
or all activities under your lease; or
    (b) When the suspension is necessary for reasons of national 
security or defense.


Sec.  585.418  How will BOEM issue a suspension?

    (a) BOEM will issue a suspension order orally or in writing.
    (b) BOEM will send you a written suspension order as soon as 
practicable after issuing an oral suspension order.
    (c) The written order will explain the reasons for its issuance and 
describe the effect of the suspension order on your lease or grant and 
any associated activities. BOEM may authorize certain activities during 
the period of the suspension, as set forth in the suspension order.


Sec.  585.419  What are my immediate responsibilities if I receive a 
suspension order?

    You must comply with the terms of a suspension order upon receipt 
and take any action prescribed within the time set forth therein.

[[Page 6446]]

Sec.  585.420  What effect does a suspension order have on my payments?

    (a) While BOEM evaluates your request for a suspension under Sec.  
585.416, you must continue to fulfill your payment obligation until the 
end of the original term of your lease or grant. If our evaluation goes 
beyond the end of the original term of your lease or grant, the term of 
your lease or grant will be extended for the period of time necessary 
for BOEM to complete its evaluation of your request, but you will not 
be required to make payments during the time of the extension.
    (b) If BOEM approves your request for a suspension, as provided in 
Sec.  585.416, we may suspend your payment obligation, as appropriate 
for the term that is suspended, depending on the reasons for the 
requested suspension.
    (c) If BOEM orders a suspension, as provided in Sec.  585.417, your 
payments, as appropriate for the term that is suspended, will be waived 
during the suspension period.


Sec.  585.421  How long will a lease or grant suspension be in effect?

    A lease or grant suspension will be in effect for the period 
specified by BOEM.
    (a) BOEM will not approve a lease or grant suspension request 
pursuant to Sec.  585.416 for a period longer than 2 years.
    (b) If BOEM determines that the circumstances giving rise to a 
suspension ordered under Sec.  585.417 cannot be resolved within 5 
years, the Secretary may initiate cancellation of the lease or grant.
Lease or Grant Cancellation


Sec.  585.422  When can my lease or grant be canceled?

    (a) The Secretary will cancel any lease or grant issued under this 
part upon proof that it was obtained by fraud or misrepresentation, and 
after notice and opportunity to be heard has been afforded to the 
lessee or grant holder.
    (b) The Secretary may cancel any lease or grant issued under this 
part when:
    (1) The Secretary determines after notice and opportunity for a 
hearing that, with respect to the lease or grant that would be 
canceled, the lessee or grantee has failed to comply with any 
applicable provision of the OCS Lands Act or these regulations; any 
order of the Director; or any term, condition or stipulation contained 
in the lease or grant, and that the failure to comply continued 30 days 
(or other period BOEM specifies) after you receive notice from BOEM. 
The Secretary will mail a notice by registered or certified letter to 
the lessee or grantee at its record post office address;
    (2) The Secretary determines after notice and opportunity for a 
hearing that you have terminated commercial operations under your COP, 
as provided in Sec.  585.635, or other approved activities under your 
GAP, as provided in Sec.  585.656;
    (3) Required by national security or defense; or
    (4) The Secretary determines after notice and opportunity for a 
hearing that continued activity under the lease or grant:
    (i) Would cause serious harm or damage to natural resources; life 
(including human and wildlife); property; the marine, coastal, or human 
environment; or sites, structures, or objects of historical or 
archaeological significance; and
    (ii) That the threat of harm or damage would 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 the lease or grant in force.


Sec.  Sec.  585.423-585.424  [Reserved]

Lease or Grant Renewal


Sec.  585.425  May I obtain a renewal of my lease or grant before it 
terminates?

    You may request renewal of the operations term of your lease or the 
original authorized term of your grant. BOEM, at its discretion, may 
approve a renewal request to conduct substantially similar activities 
as were originally authorized under the lease or grant. BOEM will not 
approve a renewal request that involves development of a type of 
renewable energy not originally authorized in the lease or grant. BOEM 
may revise or adjust payment terms of the original lease, as a 
condition of lease renewal.


Sec.  585.426  When must I submit my request for renewal?

    (a) You must request a renewal from BOEM:
    (1) No later than 180 days before the termination date of your 
limited lease or grant.
    (2) No later than 2 years before the termination date of the 
operations term of your commercial lease.
    (b) You must submit to BOEM all information we request pertaining 
to your lease or grant and your renewal request.


Sec.  585.427  How long is a renewal?

    BOEM will set the term of a renewal at the time of renewal on a 
case-by-case basis.
    (a) For commercial leases, a renewal term will not exceed the 
original operations term unless a longer term is negotiated by the 
applicable parties.
    (b) For limited leases, a renewal term will not exceed the original 
operations term.
    (c) For RUE and ROW grants, a renewal will continue for as long as 
the associated activities are conducted and facilities properly 
maintained and used for the purpose for which the grant was made, 
unless otherwise expressly stated.


Sec.  585.428  What effect does applying for a renewal have on my 
activities and payments?

    If you timely request a renewal:
    (a) You may continue to conduct activities approved under your 
lease or grant under the original terms and conditions for as long as 
your request is pending decision by BOEM.
    (b) You may request a suspension of your lease or grant, as 
provided in Sec.  585.416, while we consider your request.
    (c) For the period BOEM considers your request for renewal, you 
must continue to make all payments in accordance with the original 
terms and conditions of your lease or grant.


Sec.  585.429  What criteria will BOEM consider in deciding whether to 
renew a lease or grant?

    BOEM will consider the following criteria in deciding whether to 
renew a lease or grant:
    (a) Design life of existing technology.
    (b) Availability and feasibility of new technology.
    (c) Environmental and safety record of the lessee or grantee.
    (d) Operational and financial compliance record of the lessee or 
grantee.
    (e) Competitive interest and fair return considerations.
    (f) Effects of the lease or grant on generation capacity and 
reliability within the regional electrical distribution and 
transmission system.


Sec. Sec.  585.430-585.431  [Reserved]

Lease or Grant Termination


Sec.  585.432  When does my lease or grant terminate?

    Your lease or grant terminates on whichever of the following dates 
occurs first:
    (a) The expiration of the applicable term of your lease or grant, 
unless your term is automatically extended under Sec.  585.235 or Sec.  
585.236, a request for renewal of your lease or grant is pending a 
decision by BOEM, or your lease or grant is suspended or renewed as 
provided in this subpart;

[[Page 6447]]

    (b) A cancellation, as set forth in Sec.  585.422; or
    (c) Relinquishment, as set forth in Sec.  585.435.


Sec.  585.433  What must I do after my lease or grant terminates?

    (a) After your lease or grant terminates, you must:
    (1) Make all payments due, including any accrued rentals and 
deferred bonuses; and
    (2) Perform any other outstanding obligations under the lease or 
grant within 6 months.
    (b) Within 2 years following termination of a lease or grant, you 
must remove or dispose of all facilities, installations, and other 
devices permanently or temporarily attached to the seabed on the OCS in 
accordance with a plan approved by BOEM under subpart F of this part or 
an application approved by BSEE under 30 CFR part 285, subpart I.
    (c) If you fail to comply with your approved decommissioning plan 
or application:
    (1) BOEM may call for the forfeiture of your financial assurance; 
and
    (2) You remain liable for removal or disposal costs and responsible 
for accidents or damages that might result from such failure.


Sec.  585.434  When may BOEM authorize facilities to remain in place 
following termination of a lease or grant?

    (a) In your decommissioning application that you submit to BSEE in 
accordance with 30 CFR 285.902, you may request that certain facilities 
authorized in your lease or grant remain in place for activities 
authorized in this part, elsewhere in this subchapter, or by other 
applicable Federal laws.
    (b) BOEM may approve such requests on a case-by-case basis 
considering the following:
    (1) Potential impacts to the marine environment;
    (2) Competing uses of the OCS;
    (3) Impacts on marine safety and National defense;
    (4) Maintenance of adequate financial assurance; and
    (5) Other factors determined by the Director.
    (c) Except as provided in paragraph (d) of this section, if BOEM 
authorizes facilities to remain in place, the former lessee or grantee 
under this part remains jointly and severally liable for 
decommissioning the facility unless satisfactory evidence is provided 
to BOEM showing that another party has assumed that responsibility and 
has secured adequate financial assurances.
    (d) In your decommissioning application, you may request that 
certain facilities authorized in your lease or grant be converted to an 
artificial reef or otherwise toppled in place. BOEM will evaluate all 
such requests.
Lease or Grant Relinquishment


Sec.  585.435  How can I relinquish a lease or a grant or parts of a 
lease or grant?

    (a) You may surrender the lease or grant, or an officially 
designated subdivision thereof, by filing one paper copy and one 
electronic copy of a relinquishment application with BOEM. A 
relinquishment takes effect on the date we approve your application, 
subject to the continued obligation of the lessee and the surety to:
    (1) Make all payments due on the lease or grant, including any 
accrued rent and deferred bonuses;
    (2) Decommission all facilities on the lease or grant to be 
relinquished to the satisfaction of BSEE; and
    (3) Perform any other outstanding obligations under the lease or 
grant.
    (b) Your relinquishment application must include:
    (1) Name;
    (2) Contact name;
    (3) Telephone number;
    (4) Fax number;
    (5) Email address;
    (6) BOEM-assigned lease or grant number, and, if applicable, the 
name of any facility;
    (7) A description of the geographic area you are relinquishing;
    (8) The name, title, and signature of your authorizing official 
(the name, title, and signature must match exactly the name, title, and 
signature in BOEM qualification records); and
    (9) A statement that you will adhere to the requirements of 30 CFR 
part 285, subpart I.
    (c) If you have submitted an application to relinquish a lease or 
grant, you will be billed for any outstanding payments that are due 
before the relinquishment takes effect, as provided in paragraph (a) of 
this section.
Lease or Grant Contraction


Sec.  585.436  Can BOEM require lease or grant contraction?

    At an interval no more frequent than every 5 years, BOEM may review 
your lease or grant area to determine whether the lease or grant area 
is larger than needed to develop the project and manage activities in a 
manner that is consistent with the provisions of this part. BOEM will 
notify you of our proposal to contract the lease or grant area.
    (a) BOEM will give you the opportunity to present orally or in 
writing information demonstrating that you need the area in question to 
manage lease or grant activities consistent with these regulations.
    (b) Prior to taking action to contract the lease or grant area, 
BOEM will issue a decision addressing your contentions that the area is 
needed.
    (c) You may appeal this decision under Sec.  585.118.

Subpart E--Payments and Financial Assurance Requirements

Payments


Sec.  585.500  How do I make payments under this part?

    (a) For acquisition fees or the initial 12 months' rent paid for 
the preliminary term of your lease, you must make your electronic 
payments through the Fees for Services page on the BOEM website at 
http://www.boem.gov, and you must include one copy of the Pay.gov 
confirmation receipt page with your unsolicited request.
    (b) For all other required rent payments and for operating fee 
payments, you must make your payments as required in 30 CFR 1218.51.
    (c) This table summarizes payments you must make for leases and 
grants, unless otherwise specified in the Final Sale Notice:

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                                             Payment                  Amount                Due date         Payment mechanism      Section reference
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                                                               Initial payments for leases
--------------------------------------------------------------------------------------------------------------------------------------------------------
(1) If your lease is issued         Bid Deposit.............  As set in Final Sale   With bid.............  Pay.Gov............  Sec.   585.501.
 competitively.                                                Notice/depends on
                                                               bid.
                                    Bonus Balance...........  .....................  Lease issuance.......  30 CFR 1218.51.....  .......................
(2) If your lease is issued non-    Acquisition Fee.........  $0.25 per acre,        With application.....  Pay.gov............  Sec.   585.502.
 competitively.                                                unless otherwise set
                                                               by the Director.

[[Page 6448]]

 
(3) All leases....................  Initial Rent............  $3 per acre per year.  45 days after lease    Pay.gov............  Sec.   585.503.
                                                                                      issuance.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                  Subsequent payments for leases and project easements
--------------------------------------------------------------------------------------------------------------------------------------------------------
(4) All leases....................  Subsequent Rent.........  $3 per acre per year.  Annually.............  30 CFR 1218.51.....  Sec.  Sec.   585.503
                                                                                                                                  and 585.504.
(5) If you have a project easement  Rent....................  Greater of $5 per      When operations term   30 CFR 1218.51.....  Sec.   585.507.
                                                               acre per year or       for associated lease
                                                               $450 per year.         starts, then
                                                                                      annually.
(6) If your commercial lease is     Operating Fee...........  Determined by the      Annually.............  30 CFR 1218.51.....  Sec.   585.506.
 producing.                                                    formula in Sec.
                                                               585.506.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       Payments for ROW grants and RUE grants \1\
--------------------------------------------------------------------------------------------------------------------------------------------------------
(7) All ROW grants and RUE grants.  Initial Rent............  $70 per statute mile,  Grant Issuance.......  Pay.gov............  Sec.   585.508.
                                                               and the greater of
                                                               $5 per acre per year
                                                               or $450 per year.
                                    Subsequent Rent.........  .....................  Annually or in 5-year  30 CFR 1218.51.....  .......................
                                                                                      batches.
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ There is no acquisition fee for ROW grants or RUE grants.

Sec.  585.501  What deposits must I submit for a competitively issued 
lease, ROW grant, or RUE grant?

    (a) For a competitive lease or grant that we offer through sealed 
bidding, you must submit a deposit of 20 percent of the total bid 
amount, unless some other amount is specified in the Final Sale Notice.
    (b) For a competitive lease that we offer through ascending 
bidding, you must submit a deposit as established in the Final Sale 
Notice.
    (c) You must pay any balances on accepted high bids in accordance 
with the Final Sale Notice, this part, and your lease or grant 
instrument.
    (d) The deposit will be forfeited for any successful bidder who 
fails to execute the lease within the prescribed time, or otherwise 
does not comply with the regulations concerning acquisition of a lease 
or grant or stipulations in the Final Sale Notice.


Sec.  585.502  What initial payment requirements must I meet to obtain 
a noncompetitive lease, ROW grant, or RUE grant?

    When requesting a noncompetitive lease, you must meet the initial 
payment (acquisition fee) requirements of this section, unless 
specified otherwise in your lease instrument. No initial payment is 
required when requesting noncompetitive ROW grants and RUE grants.
    (a) If you request a noncompetitive lease, you must submit an 
acquisition fee of $0.25 per acre, unless otherwise set by the 
Director, as provided in Sec.  585.500.
    (b) If BOEM determines there is no competitive interest, we will 
then:
    (1) Retain your acquisition fee if we issue you a lease; or
    (2) Refund your acquisition fee, without interest, if we do not 
issue your requested lease.
    (c) If we determine that there is a competitive interest in an area 
you requested, then we will proceed with a competitive lease sale 
process provided for in subpart B of this part, and we will:
    (1) Apply your acquisition fee to the required deposit for your bid 
amount if you submit a bid;
    (2) Apply your acquisition fee to your bonus bid if you acquire the 
lease; or
    (3) Retain your acquisition fee if you do not bid for or acquire 
the lease.


Sec.  585.503  What are the rent and operating fee requirements for a 
commercial lease?

    (a) The rent for a commercial lease is $3 per acre per year, unless 
otherwise established in the Final Sale Notice or lease.
    (1) You must pay ONRR the initial 12 months' rent 45 days after you 
receive the lease copies from BOEM in accordance with the requirements 
provided in Sec.  585.500(a).
    (2) You must pay ONRR, under the regulations at 30 CFR part 1218, 
rent at the beginning of each subsequent 1-year period in accordance 
with the regulations at 30 CFR 1218.51 for the entire lease area until 
the facility begins to generate commercially, as specified in Sec.  
585.506 or as otherwise specified in the Final Sale Notice or lease 
instrument:
    (i) For leases issued competitively, BOEM will specify in the Final 
Sale Notice and lease any adjustment to the rent fee to take effect 
during the operations term and prior to the commercial generation.
    (ii) For leases issued noncompetitively, BOEM will specify in the 
lease any adjustment to the rent fee to take effect during the 
operations term and prior to the commercial generation.
    (3) You must pay ONRR, under the regulations at 30 CFR part 1218, 
the rent for a project easement in addition to the lease rent, as 
provided in Sec.  585.507. You must commence rent payments for your 
project easement upon our approval of your COP or GAP.
    (b) After your lease begins commercial generation of electricity or 
on the date specified by BOEM, you must pay operating fees in the 
amount specified in Sec.  585.506:
    (1) For leases issued competitively, BOEM will specify in the Final 
Sale Notice and lease the date when operating fees commence; and
    (2) For leases issued noncompetitively, BOEM will specify in the 
lease the date when operating fee commences.


Sec.  585.504  How are my payments affected if I develop my lease in 
phases?

    If you develop your commercial lease in phases, as approved by us 
in your COP under Sec.  585.238, you must pay ONRR, under the 
regulations at 30 CFR part 1218:
    (a) Rent on the portion of the lease that is not authorized for 
commercial operations.
    (b) Operating fees on the portion of the lease that is authorized 
for commercial operations, in the amount specified in Sec.  585.506 and 
as described in Sec.  585.503(b).
    (c) Rent for a project easement in addition to lease rent, as 
provided in Sec.  585.507. You must commence rent payments for your 
project easement upon our approval of your COP.


Sec.  585.505  What are the rent and operating fee requirements for a 
limited lease?

    (a) The rent for a limited lease is $3 per acre per year, unless 
otherwise established in the Final Sale Notice and your lease 
instrument.
    (b) You must pay ONRR the initial 12 months' rent 45 days after you 
receive the lease copies from BOEM in accordance with the requirements 
provided in Sec.  585.500(a).

[[Page 6449]]

    (c) You must pay ONRR, under the regulations at 30 CFR part 1218, 
rent at the beginning of each subsequent 1-year period on the entire 
lease area for the duration of your operations term in accordance with 
the regulations at 30 CFR 1218.51.
    (d) BOEM will not charge an operating fee for the authorized sale 
of power from a limited lease.


Sec.  585.506  What operating fees must I pay on a commercial lease?

    If you are generating electricity, you must pay ONRR, under the 
regulations at 30 CFR part 1218, operating fees on your commercial 
lease when you begin commercial generation, as described in Sec.  
585.503.
    (a) BOEM will determine the annual operating fee for activities 
relating to the generation of electricity on your lease based on the 
following formula,

F = M * H * c * P * r,

Where:

(1) F is the dollar amount of the annual operating fee;
(2) M is the nameplate capacity expressed in megawatts;
(3) H is the number of hours in a year, equal to 8,760, used to 
calculate an annual payment;
(4) c is the ``capacity factor'' representing the anticipated 
efficiency of the facility's operation expressed as a decimal 
between zero and one;
(5) P is a measure of the annual average wholesale electric power 
price expressed in dollars per megawatt hour, as provided in 
paragraph (c)(2) of this section; and
(6) r is the operating fee rate expressed as a decimal between zero 
and one.

    (b) The annual operating fee formula relating to the value of 
annual electricity generation is restated as:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                         M (nameplate             H (hours per            c (capacity                                   r (operating fee
    F (annual operating fee)      =        capacity)       *         year)         *        factor)        *    P (power price)    *         rate)
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (c) BOEM will specify operating fee parameters in the Final Sale 
Notice for commercial leases issued competitively and in the lease for 
those issued noncompetitively.
    (1) Unless BOEM specifies otherwise, in the operating fee rate, 
``r'' is 0.02 for each year the operating fee applies when you begin 
commercial generation of electricity. We may apply a different fee rate 
for new projects (i.e., a new generation based on new technology) after 
considering factors such as program objectives, state of the industry, 
project type, and project potential. Also, we may agree to reduce or 
waive the fee rate under Sec.  585.510.
    (2) The power price ``P,'' for each year when the operating fee 
applies, will be determined annually. The process by which the power 
price will be determined will be specified in the Final Sale Notice 
and/or in the lease. BOEM:
    (i) Will use the most recent annual average wholesale power price 
in the State in which a project's transmission cables make landfall, as 
published by the DOE, Energy Information Administration (EIA), or other 
publicly available wholesale power price indices; and
    (ii) May adjust the published average wholesale power price to 
reflect documented variations by State or within a region and recent 
market conditions.
    (3) BOEM will select the capacity factor ``c'' based upon 
applicable analogs drawn from present and future domestic and foreign 
projects that operate in comparable conditions and on comparable 
scales.
    (i) Upon the completion of the first year of commercial operations 
on the lease, BOEM may adjust the capacity factor as necessary (to 
accurately represent a comparison of actual production over a given 
period of time with the amount of power a facility would have produced 
if it had run at full capacity) in a subsequent year.
    (ii) After the first adjustment, BOEM may adjust the capacity 
factor (to accurately represent a comparison of actual generation over 
a given period of time with the amount of power a facility would have 
generated if it had run at full capacity) no earlier than in 5-year 
intervals from the most recent year that BOEM adjusts the capacity 
factor.
    (iii) The process by which BOEM will adjust the capacity factor, 
including any calculations (incorporating an average capacity factor 
reflecting actual operating experience), will be specified in the 
lease. The operator or lessee may request review and adjustment of the 
capacity factor under Sec.  585.510.
    (4) Ten days after the anniversary date of when you began to 
commercially generate electricity, you must submit to BOEM 
documentation of the gross annual generation of electricity produced by 
the generating facility on the lease. You must use the same information 
collection form as authorized by the EIA for this information.
    (5) For the nameplate capacity ``M,'' BOEM will use the total 
installed capacity of the equipment you install, as specified in your 
approved COP.
    (d) You must submit all operating fee payments to ONRR in 
accordance with the provisions under 30 CFR 1218.51.
    (e) BOEM will establish the operating fee in the Final Sale Notice 
or in the lease on a case-by-case basis for:
    (1) Activities that do not relate to the generation of electricity 
(e.g., hydrogen production), and
    (2) Leases issued for hydrokinetic activities requiring a FERC 
license.


Sec.  585.507  What rent payments must I pay on a project easement?

    (a) You must pay ONRR, under the regulations at 30 CFR part 1218, a 
rent fee for your project easement of $5 per acre, subject to a minimum 
of $450 per year, unless specified otherwise in the Final Sale Notice 
or lease:
    (1) The size of the project easement area for a cable or a pipeline 
is the full length of the corridor and a width of 200 feet (61 meters), 
centered on the cable or pipeline; and
    (2) The size of a project easement area for an accessory platform 
is limited to the aerial extent of anchor chains and other facilities 
and devices associated with the accessory.
    (b) You must commence rent payments for your project easement upon 
our approval of your COP or GAP:
    (1) You must make the first rent payment when the operations term 
begins, as provided in Sec.  585.500;
    (2) You must submit all subsequent rent payments in accordance with 
the regulations at 30 CFR 1218.51; and
    (3) You must continue to pay annual rent for your project easement 
until your lease is terminated.


Sec.  585.508  What rent payments must I pay on ROW grants or RUE 
grants associated with renewable energy projects?

    (a) For each ROW grant BOEM approves under subpart C of this part, 
you must pay ONRR, under the regulations at 30 CFR part 1218, an annual 
rent as follows, unless specified otherwise in the Final Sale Notice:
    (1) A fee of $70 for each nautical mile or part of a nautical mile 
of the OCS that your ROW crosses; and
    (2) An additional $5 per acre, subject to a minimum of $450 for use 
of the entire affected area, if you hold a ROW grant that includes a 
site outside the

[[Page 6450]]

corridor of a 200-foot width (61 meters), centered on the cable or 
pipeline. The affected area includes the areal extent of anchor chains, 
risers, and other devices associated with a site outside the corridor.
    (b) For each RUE grant BOEM approves under subpart C of this part, 
you must pay ONRR, under the regulations at 30 CFR part 1218, a rent 
of:
    (1) $5 per acre per year; or
    (2) A minimum of $450 per year.
    (c) You must make the rent payments required by paragraphs (a) and 
(b) of this section on:
    (1) An annual basis;
    (2) For a 5-year period; or
    (3) For multiples of 5 years.
    (d) You must make the first annual rent payment upon approval of 
your ROW grant or RUE grant request, as provided in Sec.  585.500, and 
all subsequent rent payments to ONRR in accordance with the regulations 
at 30 CFR 1218.51.


Sec.  585.509  Who is responsible for submitting lease or grant 
payments to ONRR?

    (a) For each lease, ROW grant, or RUE grant issued under this part, 
you must identify one person who is responsible for all payments due 
and payable under the provisions of the lease or grant. The responsible 
person identified is designated as the payor, and you must document 
acceptance of such responsibilities, as provided in 30 CFR 1218.52.
    (b) All payors must submit payments and maintain auditable records 
in accordance with guidance we issue or any applicable regulations in 
subchapter A of this chapter. In addition, the lessee or grant holder 
must also maintain such auditable records.


Sec.  585.510  May BOEM reduce or waive my lease or grant payments?

    (a) The BOEM Director may reduce or waive the rent or operating fee 
or components of the operating fee, such as the fee rate or capacity 
factor, when the Director determines that it is necessary to encourage 
continued or additional activities.
    (b) When requesting a reduction or waiver, you must submit an 
application to us that includes all of the following:
    (1) The number of the lease, ROW grant, or RUE grant involved;
    (2) Name of each lessee or grant holder of record;
    (3) Name of each operator;
    (4) A demonstration that:
    (i) Continued activities would be uneconomic without the requested 
reduction or waiver, or
    (ii) A reduction or waiver is necessary to encourage additional 
activities; and
    (5) Any other information required by the Director.
    (c) No more than 6 years of your operations term will be subject to 
a full waiver of the operating fee.


Sec. Sec.  585.511-585.514  [Reserved]

Financial Assurance Requirements for Commercial Leases


Sec.  585.515  What financial assurance must I provide when I obtain my 
commercial lease?

    (a) Before BOEM will issue your commercial lease or approve an 
assignment of an existing commercial lease, you (or, for an assignment, 
the proposed assignee) must guarantee compliance with all terms and 
conditions of the lease by providing either:
    (1) A $100,000 minimum, lease-specific bond; or
    (2) Another approved financial assurance instrument guaranteeing 
performance up to $100,000, as specified in Sec. Sec.  585.526 through 
585.529.
    (b) You meet the financial assurance requirements under this 
subpart if your designated lease operator provides a $100,000 minimum, 
lease-specific bond or other approved financial assurance that 
guarantees compliance with all terms and conditions of the lease.
    (1) The dollar amount of the minimum, lease-specific financial 
assurance in paragraphs (a)(1) and (b) of this section will be adjusted 
to reflect changes in the Consumer Price Index-All Urban Consumers 
(CPI-U) or a substantially equivalent index if the CPI-U is 
discontinued; and
    (2) The first CPI-U-based adjustment can be made no earlier than 
the 5-year anniversary of the adoption of this rule. Subsequent CPI-U-
based adjustments may be made every 5 years thereafter.


Sec.  585.516  What are the financial assurance requirements for each 
stage of my commercial lease?

    (a) The basic financial assurance requirements for each stage of 
your commercial lease are as follows:

------------------------------------------------------------------------
         Before BOEM will . . .               You must provide . . .
------------------------------------------------------------------------
(1) Issue a commercial lease or approve  A $100,000 minimum, lease-
 an assignment of an existing             specific financial assurance.
 commercial lease.
(2) Approve your SAP...................  A supplemental bond or other
                                          financial assurance, in an
                                          amount determined by BOEM, if
                                          upon reviewing your SAP, BOEM
                                          determines that a supplemental
                                          bond is required in addition
                                          to your minimum lease-specific
                                          bond, due to the complexity,
                                          number, and location of any
                                          facilities involved in your
                                          site assessment activities.
(3) Approve your COP...................  A supplemental bond or other
                                          financial assurance, in an
                                          amount determined by BOEM
                                          based on the complexity,
                                          number, and location of all
                                          facilities involved in your
                                          planned activities and
                                          commercial operation. The
                                          supplemental financial
                                          assurance requirement is in
                                          addition to your lease-
                                          specific bond and, if
                                          applicable, the previous
                                          supplement associated with SAP
                                          approval.
(4) Allow you to install facilities      A decommissioning bond or other
 approved in your COP.                    financial assurance, in an
                                          amount determined by BOEM
                                          based on anticipated
                                          decommissioning costs. BOEM
                                          will allow you to provide your
                                          financial assurance for
                                          decommissioning in accordance
                                          with the number of facilities
                                          installed or being installed.
                                          BOEM must approve the schedule
                                          for providing the appropriate
                                          financial assurance coverage.
------------------------------------------------------------------------

    (b) Each bond or other financial assurance must guarantee 
compliance with all terms and conditions of the lease. You may provide 
a new bond or increase the amount of your existing bond, to satisfy any 
additional financial assurance requirements.
    (c) For hydrokinetic commercial leases, supplemental financial 
assurance may be required in an amount

[[Page 6451]]

determined by BOEM before FERC issues a license.


Sec.  585.517  How will BOEM determine the amounts of the supplemental 
and decommissioning financial assurance requirements associated with 
commercial leases?

    (a) BOEM will base the determination for the amounts of the SAP, 
COP, and decommissioning financial assurance requirements on estimates 
of the cost to meet all accrued lease obligations.
    (b) We determine the amount of the supplemental and decommissioning 
financial assurance requirements on a case-by-case basis. The amount of 
the financial assurance must be no less than the amount required to 
meet all lease obligations, including:
    (1) The projected amount of rent and other payments due the 
Government over the next 12 months;
    (2) Any past due rent and other payments;
    (3) Other monetary obligations; and
    (4) The estimated cost of facility decommissioning, as required by 
30 CFR part 285, subpart I.
    (c) If your cumulative potential obligations and liabilities 
increase or decrease, we may adjust the amount of supplemental or the 
decommissioning financial assurance.
    (1) If we propose adjusting your financial assurance amount, we 
will notify you of the proposed adjustment and give you an opportunity 
to comment; and
    (2) We may approve a reduced financial assurance amount if you 
request it and if the reduced amount that you request continues to be 
greater than the sum of:
    (i) The projected amount of rent and other payments due the 
Government over the next 12 months;
    (ii) Any past due rent and other payments;
    (iii) Other monetary obligations; and
    (iv) The estimated cost of facility decommissioning.


Sec. Sec.  585.518-585.519  [Reserved]

Financial Assurance for Limited Leases, ROW Grants, and RUE Grants


Sec.  585.520  What financial assurance must I provide when I obtain my 
limited lease, ROW grant, or RUE grant?

    (a) Before BOEM will issue your limited lease, ROW grant, or RUE 
grant, you or a proposed assignee must guarantee compliance with all 
terms and conditions of the lease or grant by providing either:
    (1) A $300,000 minimum, lease- or grant-specific bond; or
    (2) Another approved financial assurance instrument of such minimum 
level as specified in Sec. Sec.  585.526 through 585.529.
    (b) You meet the financial assurance requirements under this 
subpart if your designated lease or grant operator provides a minimum 
limited lease-specific or grant-specific bond in an amount sufficient 
to guarantee compliance with all terms and conditions of the limited 
lease or grant.
    (1) The dollar amount of the minimum, lease- or grant-specific 
financial assurance in paragraph (a)(1) of this section will be 
adjusted to reflect changes in the CPI-U or a substantially equivalent 
index if the CPI-U is discontinued; and
    (2) The first CPI-U-based adjustment can be made no earlier than 
the 5-year anniversary of the adoption of this rule. Subsequent CPI-U-
based adjustments may be made every 5 years thereafter.


Sec.  585.521  Do my financial assurance requirements change as 
activities progress on my limited lease or grant?

    (a) BOEM may require you to increase the level of your financial 
assurance as activities progress on your limited lease or grant. We 
will base the determination for the amount of financial assurance 
requirements on our estimate of the cost to meet all accrued lease or 
grant obligations, including:
    (1) The projected amount of rent and other payments due the 
Government over the next 12 months;
    (2) Any past due rent and other payments;
    (3) Other monetary obligations; and
    (4) The estimated cost of facility decommissioning.
    (b) You may satisfy the requirement for increased financial 
assurance levels for the limited lease or grant by increasing the 
amount of your existing bond or replacing your existing bond.
    (c) BOEM will authorize you to establish a separate decommissioning 
bond or other financial assurance for your limited lease or grant.
    (1) The separate decommissioning bond or other financial assurance 
instrument must meet the requirements specified in Sec. Sec.  585.525 
through 585.529.
    (2) BOEM will allow you to provide your financial assurance for 
decommissioning in accordance with the number of facilities installed 
or being installed. BOEM must approve the schedule for providing the 
appropriate financial assurance coverage.


Sec. Sec.  585.522-585.524  [Reserved]

Requirements for Financial Assurance Instruments


Sec.  585.525  What general requirements must a financial assurance 
instrument meet?

    (a) Any bond or other acceptable financial assurance instrument 
that you provide must:
    (1) Be payable to BOEM upon demand; and
    (2) Guarantee compliance of all lessees, grant holders, operators, 
and payors with all terms and conditions of the lease or grant, any 
subsequent approvals and authorizations, and all applicable 
regulations.
    (b) All bonds and other forms of financial assurance must be on or 
in a form approved by BOEM. You may submit this on an approved form 
that you have reproduced or generated by use of a computer. If the 
document you submit omits any terms and conditions that are included on 
the BOEM-approved form, your bond is deemed to contain the omitted 
terms and conditions.
    (c) Surety bonds must be issued by an approved surety listed in the 
current Treasury Circular 570, as required by 31 CFR 223.16. You may 
obtain a copy of Circular 570 from the Treasury website at http://www.fms.treas.gov/c570/.
    (d) Your surety bond cannot exceed the underwriting limit listed in 
the current Treasury Circular 570, except as permitted therein.
    (e) You and a qualified surety must execute your bond. When the 
surety is a corporation, an authorized corporate officer must sign the 
bond and attest to it over the corporate seal.
    (f) You may not terminate the period of liability of your bond or 
cancel your bond, except as provided in this subpart. Bonds must 
continue in full force and effect even though an event has occurred 
that could diminish or terminate a surety's obligation under State law.
    (g) Your surety must notify you and BOEM within 5 business days 
after:
    (1) It initiates any judicial or administrative proceeding alleging 
its insolvency or bankruptcy; or
    (2) The Treasury decertifies the surety.


Sec.  585.526  What instruments other than a surety bond may I use to 
meet the financial assurance requirement?

    (a) You may use other types of security instruments, if BOEM 
determines that such security protects BOEM to the same extent as the 
surety bond. BOEM will consider pledges of the following:
    (1) U.S. Department of Treasury securities identified in 31 CFR 
part 225;

[[Page 6452]]

    (2) Cash in an amount equal to the required dollar amount of the 
financial assurance, to be deposited and maintained in a Federal 
depository account of the U.S. Treasury by BOEM;
    (3) Certificates of deposit or savings accounts in a bank or 
financial institution organized or authorized to transact business in 
the United States with:
    (i) Minimum net assets of $500,000,000; and
    (ii) Minimum Bankrate.com Safe & Sound rating of 3 Stars, and 
Capitalization, Assets, Equity and Liquidity (CAEL) rating of 3 or 
less;
    (4) Negotiable U.S. Government, State, and municipal securities or 
bonds having a market value of not less than the required dollar amount 
of the financial assurance and maintained in a Securities Investors 
Protection Corporation insured trust account by a licensed securities 
brokerage firm for the benefit of BOEM;
    (5) Investment-grade rated securities having a Standard and Poor's 
rating of AAA or an equivalent rating from a nationally recognized 
securities rating service having a market value of not less than the 
required dollar amount of the financial assurance and maintained in a 
Securities Investors Protection Corporation insured trust account by a 
licensed securities brokerage firm for the benefit of BOEM; and
    (6) Insurance, if its form and function is such that the funding or 
enforceable pledges of funding are used to guarantee performance of 
regulatory obligations in the event of default on such obligations by 
the lessee. Insurance must have an A.M. Best rating of ``superior'' or 
an equivalent rating from a nationally recognized insurance rating 
service.
    (b) If you use a Treasury security:
    (1) You must post 115 percent of your financial assurance amount;
    (2) You must monitor the collateral value of your security. If the 
collateral value of your security as determined in accordance with the 
31 CFR part 203 Collateral Margins Table (which can be found at http://www.treasurydirect.gov) falls below the required level of coverage, you 
must pledge additional security to provide 115 percent of the required 
amount; and
    (3) You must include with your pledge authority for us to sell the 
security and use the proceeds if we determine that you have failed to 
comply with any of the terms and conditions of your lease or grant, any 
subsequent approval or authorization, or applicable regulations.
    (c) If you use the instruments described in paragraph (a)(4) or (5) 
of this section, you must provide BOEM by the end of each calendar year 
a certified statement describing the nature and market value of the 
instruments maintained in that account, and including any current 
statements or reports furnished by the brokerage firm to the lessee 
concerning the asset value of the account.


Sec.  585.527  May I demonstrate financial strength and reliability to 
meet the financial assurance requirement for lease or grant activities?

    BOEM may allow you to use your financial strength and reliability 
to meet financial assurance requirements. We will make this 
determination based on audited financial statements, business 
stability, reliability, and compliance with regulations.
    (a) You must provide the following information if you want to 
demonstrate financial strength and reliability to meet your financial 
assurance requirements:
    (1) Audited financial statements (including auditor's certificate, 
balance sheet, and profit and loss sheet) that show you have financial 
capacity substantially in excess of existing and anticipated lease and 
other obligations;
    (2) Evidence that shows business stability based on 5 years of 
continuous operation and generation of renewable energy on the OCS or 
onshore;
    (3) Evidence that shows reliability in meeting obligations based on 
credit ratings or trade references, including names and addresses of 
other lessees, contractors, and suppliers with whom you have dealt; and
    (4) Evidence that shows a record of compliance with laws, 
regulations, and lease, ROW, or RUE terms.
    (b) If we approve your request to use your financial strength and 
reliability to meet your financial assurance requirements, you must 
submit annual updates to the information required by paragraph (a) of 
this section. You must submit this information no later than March 31 
of each year.
    (c) If the annual updates to the information required by paragraph 
(a) of this section do not continue to demonstrate financial strength 
and reliability or BOEM has reason to believe that you are unable to 
meet the financial assurance requirements of this section, after notice 
and opportunity for a hearing, BOEM will terminate your ability to use 
financial strength and reliability for financial assurance and require 
you to provide another type of financial assurance. You must provide 
this new financial assurance instrument within 90 days after we 
terminate your use of financial strength and reliability.


Sec.  585.528  May I use a third-party guaranty to meet the financial 
assurance requirement for lease or grant activities?

    (a) You may use a third-party guaranty if the guarantor meets the 
criteria prescribed in paragraph (b) of this section and submits an 
agreement meeting the criteria prescribed in paragraph (c) of this 
section. The agreement must guarantee compliance with the obligations 
of all lessees and operators and grant holders.
    (b) BOEM will consider the following factors in deciding whether to 
accept an agreement:
    (1) The length of time that your guarantor has been in continuous 
operation as a business entity. You may exclude periods of interruption 
that are beyond the guarantor's control by demonstrating, to the 
satisfaction of the Director, that the interruptions do not affect the 
likelihood of your guarantor remaining in business during the SAP, COP, 
and decommissioning stages of activities covered by the indemnity 
agreement.
    (2) Financial information available in the public record or 
submitted by your guarantor in sufficient detail to show us that your 
guarantor meets the criterion stated in paragraph (b)(4) of this 
section. Such detail includes:
    (i) The current rating for your guarantor's most recent bond 
issuance by a generally recognized bond rating service such as Moody's 
Investor Service or Standard and Poor's Corporation;
    (ii) Your guarantor's net worth, taking into account liabilities 
for compliance with all terms and conditions of your lease, 
regulations, and other guarantees;
    (iii) Your guarantor's ratio of current assets to current 
liabilities, taking into account liabilities for compliance with all 
terms and conditions of your lease, regulations, and other guarantees; 
and
    (iv) Your guarantor's unencumbered domestic fixed assets.
    (3) If the information in paragraph (b)(2) of this section is not 
publicly available, your guarantor must submit the information in the 
following table, to be updated annually within 90 days of the end of 
the fiscal year (FY) or as otherwise prescribed.

[[Page 6453]]



------------------------------------------------------------------------
    Your guarantor must submit . . .                That . . .
------------------------------------------------------------------------
(i) Financial statements for the most    Include a report by an
 recently completed FY.                   independent certified public
                                          accountant containing the
                                          accountant's audit or review
                                          opinion of the statements. The
                                          report must be prepared in
                                          conformance with generally
                                          accepted accounting principles
                                          and contain no adverse
                                          opinion.
(ii) Financial statement for completed   Your guarantor's financial
 quarter in the current FY.               officer certifies to be
                                          correct.
(iii) Additional information related to  Your guarantor's financial
 bonds, if requested by the Director.     officer certifies to be
                                          correct.
------------------------------------------------------------------------

    (4) Your guarantor's total outstanding and proposed guarantees must 
not exceed 25 percent of its unencumbered domestic net worth.
    (c) Your guarantor must submit an agreement executed by the 
guarantor and all parties bound by the agreement. All parties are bound 
jointly and severally and must meet the qualifications set forth in 
Sec.  585.107.
    (1) When any party is a corporation, two corporate officers 
authorized to execute the guaranty agreement on behalf of the 
corporation must sign the agreement.
    (2) When any party is a partnership, joint venture, or syndicate, 
the guaranty agreement must bind each party who has a beneficial 
interest in your guarantor and provide that, upon BOEM demand under 
your guaranty, each party is jointly and severally liable for 
compliance with all terms and conditions of your lease(s) or grant(s) 
covered by the agreement.
    (3) When forfeiture of the guaranty is called for, the agreement 
must provide that your guarantor will either bring your lease(s) or 
grant(s) into compliance or provide, within 7 days, sufficient funds to 
permit BOEM to complete corrective action.
    (4) The guaranty agreement must contain a confession of judgment, 
providing that, if we determine that you are, or your operator or 
operating rights owner is, in default, the guarantor must not challenge 
the determination and must remedy the default.
    (5) If you fail, or your operator or operating rights owner fails, 
to comply with any law, term, or regulation, your guarantor must either 
take corrective action or provide, within 7 days or other agreed upon 
time period, sufficient funds for BOEM to complete corrective action. 
Such compliance must not reduce your guarantor's liability.
    (6) If your guarantor wants to terminate the period of liability, 
your guarantor must notify you and us at least 90 days before the 
proposed termination date, obtain our approval for termination of all 
or a specified portion of the guarantee for liabilities arising after 
that date, and remain liable for all your work performed during the 
period the agreement is in effect.
    (7) Each guaranty submitted pursuant to this section is deemed to 
contain all the above terms, even if they are not actually in the 
agreement.
    (d) Before the termination of your guaranty, you must provide an 
acceptable replacement in the form of a bond or other security.


Sec.  585.529  Can I use a lease- or grant-specific decommissioning 
account to meet the financial assurance requirements related to 
decommissioning?

    (a) In lieu of a surety bond, BOEM may authorize you to establish a 
lease-, ROW grant-, or RUE grant-specific decommissioning account in a 
federally insured institution. The funds may not be withdrawn from the 
account without our written approval.
    (1) The funds must be payable to BOEM and pledged to meet your 
lease or grant decommissioning and site clearance obligations; and
    (2) You must fully fund the account within the time BOEM prescribes 
to cover all costs of decommissioning including site clearance. BOEM 
will estimate the cost of decommissioning, including site clearance.
    (b) Any interest paid on the account will be treated as account 
funds unless we authorize in writing that any interest be paid to the 
depositor.
    (c) We may allow you to pledge Treasury securities, payable to BOEM 
on demand, to satisfy your obligation to make payments into the 
account. Acceptable Treasury securities and their collateral value are 
determined in accordance with 31 CFR part 203, Collateral Margins Table 
(which can be found at http://www.treasurydirect.gov).
    (d) We may require you to commit a specified stream of revenues as 
payment into the account so that the account will be fully funded, as 
prescribed in paragraph (a)(2) of this section. The commitment may 
include revenue from other operations.
Changes in Financial Assurance


Sec.  585.530  What must I do if my financial assurance lapses?

    (a) If your surety is decertified by the Treasury, becomes bankrupt 
or insolvent, or if your surety's charter or license is suspended or 
revoked, or if any other approved financial assurance expires for any 
reason, you must:
    (1) Inform BOEM within 3 business days about the financial 
assurance lapse; and
    (2) Provide new financial assurance in the amount set by BOEM, as 
provided in this subpart.
    (b) You must notify BOEM within 3 business days after you learn of 
any action filed alleging that you, your surety, or third-party 
guarantor, is insolvent or bankrupt.


Sec.  585.531  What happens if the value of my financial assurance is 
reduced?

    If the value of your financial assurance is reduced below the 
required financial assurance amount because of a default or any other 
reason, you must provide additional financial assurance sufficient to 
meet the requirements of this subpart within 45 days or within a 
different period as specified by BOEM.


Sec.  585.532  What happens if my surety wants to terminate the period 
of liability of my bond?

    (a) Terminating the period of liability of a bond ends the period 
during which surety liability continues to accrue. The surety continues 
to be responsible for obligations and liabilities that accrued during 
the period of liability and before the date on which BOEM terminates 
the period of liability under paragraph (b) of this section. The 
liabilities that accrue during a period of liability include:
    (1) Obligations that started to accrue before the beginning of the 
period of liability and have not been met; and
    (2) Obligations that began accruing during the period of liability.
    (b) Your surety must submit to BOEM its request to terminate the 
period of liability under its bond and notify you of that request. If 
you intend to continue activities, or have not met all obligations of 
your lease or grant, you must provide a replacement bond or alternative 
form of financial assurance of equivalent or greater value. BOEM will 
terminate that period of liability within 90 days after BOEM receives 
the request.


Sec.  585.533  How does my surety obtain cancellation of my bond?

    (a) BOEM will release a bond or allow a surety to cancel a bond, 
and will

[[Page 6454]]

relieve the surety from accrued obligations only if:
    (1) BOEM determines that there are no outstanding obligations 
covered by the bond; or
    (2) The following occurs:
    (i) BOEM accepts a replacement bond or an alternative form of 
financial assurance in an amount equal to or greater than the bond to 
be cancelled to cover the terminated period of liability;
    (ii) The surety issuing the new bond has expressly agreed to assume 
all outstanding liabilities under the original bond that accrued during 
the period of liability that was terminated; and
    (iii) The surety issuing the new bond has agreed to assume that 
portion of the outstanding liabilities that accrued during the 
terminated period of liability that exceeds the coverage of the bond 
prescribed under Sec.  585.515, Sec.  585.516, Sec.  585.520, or Sec.  
585.521, and of which you were notified.
    (b) When your lease or grant ends, your surety(ies) remain(s) 
responsible, and BOEM will retain any financial assurance as follows:
    (1) The period of liability ends when you cease all operations and 
activities under the lease or grant, including decommissioning and site 
clearance;
    (2) Your surety or collateral financial assurance will not be 
released until 7 years after the lease ends, or a longer period as 
necessary to complete any appeals or judicial litigation related to 
your bonded obligation, or for BOEM to determine that all of your 
obligations under the lease or grant have been satisfied; and
    (3) BOEM will reduce the amount of your bond or return a portion of 
your financial assurance if we determine that we need less than the 
full amount of the bond or financial assurance to meet any possible 
future obligations.


Sec.  585.534  When may BOEM cancel my bond?

    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:

------------------------------------------------------------------------
                                                     Your bond will not
            Bond                  The period of      be released until .
                              liability ends . . .           . .
------------------------------------------------------------------------
(a) Bonds for commercial      When BOEM determines  Seven years after
 leases submitted under Sec.   that you have met     the lease ends, or
   585.515.                    all of your           a longer period as
                               obligations under     necessary to
                               the lease.            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           When BOEM determines  (1) Seven years
 decommissioning bonds         that you have met     after the lease
 submitted under Sec.          all your              ends, or a longer
 585.516.                      decommissioning,      period as necessary
                               site clearance, and   to complete any
                               other obligations.    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     When BOEM determines  Seven years after
 Sec.  Sec.   585.520 and      that you have met     the limited lease,
 585.521 for limited leases,   all of your           ROW, or RUE grant
 ROW grants, or RUE grants.    obligations under     or a longer period
                               the limited lease     as necessary to
                               or grant.             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.
------------------------------------------------------------------------

Sec.  585.535  Why might BOEM call for forfeiture of my bond?

    (a) BOEM may call for forfeiture of all or part of the bond, 
pledged security, or other form of guaranty if:
    (1) After notice and demand for performance, you refuse or fail, 
within the timeframe prescribed, to comply with any term or condition 
of your lease or grant, other authorization or approval, or applicable 
regulations; or
    (2) You default on one of the conditions under which we accepted 
your bond.
    (b) We may pursue forfeiture without first making demands for 
performance against any co-lessee or holder of an interest in your ROW 
or RUE, or other person approved to perform obligations under your 
lease or grant.


Sec.  585.536  How will I be notified of a call for forfeiture?

    (a) BOEM will notify you and your surety, including any provider of 
financial assurance, in writing of the call for forfeiture and provide 
the reasons for the forfeiture and the amount to be forfeited. We will 
base the amount upon an estimate of the total cost of corrective action 
to bring your lease or grant into compliance.
    (b) We will advise you and your surety that you may avoid 
forfeiture if, within 10 business days:
    (1) You agree to and demonstrate in writing to BOEM that you will 
bring your lease or grant into compliance within the timeframe we 
prescribe, and you do so; or
    (2) Your surety agrees to and demonstrates that it will bring your 
lease or grant into compliance within the timeframe we prescribe, even 
if the cost of compliance exceeds the face amount of the bond.


Sec.  585.537  How will BOEM proceed once my bond or other security is 
forfeited?

    (a) If BOEM determines that your bond or other security is 
forfeited, we will collect the forfeited amount and use the funds to 
bring your lease or grant(s) into compliance and correct any default.
    (b) If the amount collected under your bond or other security is 
insufficient to

[[Page 6455]]

pay the full cost of corrective action, BOEM may take or direct action 
to obtain full compliance and recover all costs in excess of the 
forfeited bond from you or any co-lessee or co-grantee.
    (c) If the amount collected under your bond or other security 
exceeds the full cost of corrective action to bring your lease or 
grant(s) into compliance, we will return the excess funds to the party 
from whom the excess was collected.


Sec. Sec.  585.538-585.539  [Reserved]

Revenue Sharing With States


Sec.  585.540  How will BOEM equitably distribute revenues to States?

    (a) BOEM will distribute among the eligible coastal States 27 
percent of the following revenues derived from qualified projects, 
where a qualified project and qualified project area is determined in 
Sec.  585.541 and an eligible State is determined in Sec.  585.542, 
with each term defined in Sec.  585.113. Revenues subject to 
distribution to eligible States include all bonuses, acquisition fees, 
rentals, and operating fees derived from the entire qualified project 
area and associated project easements not limited to revenues 
attributable to the portion of the project area within 3 miles of the 
seaward boundary of a coastal State. The revenues to be shared do not 
include administrative fees such as service fees and those assessed for 
civil penalties and forfeiture of bond or other surety obligations.
    (b) The project area is the area included within a single lease or 
grant. For each qualified project, BOEM will determine and announce the 
project area and its geographic center at the time it grants or issues 
a lease, easement, or right-of-way on the OCS. If a qualified project 
lease or grant's boundaries change significantly due to actions 
pursuant to Sec.  585.435 or Sec.  585.436, BOEM will re-evaluate the 
project area to determine whether the geographic center has changed. If 
it has, BOEM will re-determine State eligibility and shares 
accordingly.
    (c) To determine each eligible State's share of the 27 percent of 
the revenues for a qualified project, BOEM will use the inverse 
distance formula, which apportions shares according to the relative 
proximity of the nearest point on the coastline of each eligible State 
to the geographic center of the qualified project area. If 
Si is equal to the nearest distance from the geographic 
center of the project area to the i = 1, 2, * * * nth eligible State's 
coastline, then eligible State i would be entitled to the fraction 
Fi of the 27-percent aggregate revenue share due to all the 
eligible States according to the formula:

Fi= (1/Si) / ([Sigma]i=1 * * 
*n(1/Si)).


Sec.  585.541  What is a qualified project for revenue sharing 
purposes?

    A qualified project for the purpose of revenue sharing with 
eligible coastal States is one authorized under subsection 8(p) of the 
OCS Lands Act, which includes acreage within the area extending 3 
nautical miles seaward of State submerged lands. A qualified project is 
subject to revenue sharing with those States that are eligible for 
revenue sharing under Sec.  585.542. The entire area within a lease or 
grant for the qualified project, excluding project easements, is 
considered the qualified project area.


Sec.  585.542  What makes a State eligible for payment of revenues?

    A State is eligible for payment of revenues if any part of the 
State's coastline is located within 15 miles of the announced 
geographic center of the project area of a qualified project. A State 
is not eligible for revenue sharing if all parts of that State's 
coastline are more than 15 miles from the announced geographic center 
of the qualified project area. This is the case even if the qualified 
project area is located wholly or partially within an area extending 3 
nautical miles seaward of the submerged lands of that State or if there 
are no States with a coastline less than 15 miles from the announced 
geographic center of the qualified project area.


Sec.  585.543  Example of how the inverse distance formula works.

    (a) Assume that the geographic center of the project area lies 12 
miles from the closest coastline point of State A and 4 miles from the 
closest coastline point of State B. BOEM will round dollar shares to 
the nearest whole dollar. The proportional share due each State would 
be calculated as follows:

(1) State A's share = [(\1/12\) / (\1/12\ + \1/4\)] = \1/4\.
(2) State B's share = [(\1/4\) / (\1/12\ + \1/4\)] = \3/4\.

    (b) Therefore, State B would receive a share of revenues that is 
three times as large as that awarded to State A, based on the finding 
that State B's nearest coastline is one-third the distance to the 
geographic center of the qualified project area as compared to State 
A's nearest coastline. Eligible States share the 27 percent of the 
total revenues from the qualified project as mandated under the OCS 
Lands Act. Hence, if the qualified project generates $1,000,000 of 
Federal revenues in a given year, the Federal Government would 
distribute the States' 27-percent share as follows:

(1) State A's share = $270,000 x \1/4\ = $67,500.
(2) State B's share = $270,000 x \3/4\ = $202,500.

Subpart F--Plan Requirements


Sec.  585.600  What plans must I submit to BOEM before I conduct 
activities on my lease or grant?

    You must submit a SAP, COP, or GAP and receive BOEM approval as set 
forth in the following table:

------------------------------------------------------------------------
                                            You must submit and obtain
              Before you:                       approval for your:
------------------------------------------------------------------------
(a) Conduct any site assessment          SAP, according to Sec.  Sec.
 activities on your commercial lease.     585.605 through 585.613.
(b) Conduct any activities pertaining    COP, according to Sec.  Sec.
 to construction of facilities for        585.620 through 585.628.
 commercial operations on your
 commercial lease.
(c) Conduct any activities on your       GAP, according to Sec.  Sec.
 limited lease, ROW grant, or RUE grant   585.640 through 585.648.
 in any OCS area.
------------------------------------------------------------------------

Sec.  585.601  When am I required to submit my plans to BOEM?

    You must submit your plans as follows:
    (a) You may submit your SAP or GAP prior to lease or grant 
issuance, but must submit your SAP or GAP no later than 12 months from 
the date of lease or grant issuance.
    (b) If you intend to continue your commercial lease with an 
operations term, you must submit a COP, or a FERC license application, 
at least 6 months before the end of your site assessment term.
    (c) You may submit your COP or FERC license application with your 
SAP.
    (1) You must provide sufficient data and information with your COP 
for BOEM to complete the needed reviews and NEPA analysis; and

[[Page 6456]]

    (2) BOEM may need to conduct additional reviews, including NEPA 
analysis, if significant new information becomes available after you 
complete your site assessment activities or you revise your COP. As a 
result of the additional reviews, we may require modification of your 
COP.


Sec.  Sec.  585.602-585.604  [Reserved]

Site Assessment Plan and Information Requirements for Commercial Leases


Sec.  585.605  What is a Site Assessment Plan (SAP)?

    (a) A SAP describes the activities (e.g., installation of 
meteorological towers, meteorological buoys) you plan to perform for 
the characterization of your commercial lease, including your project 
easement, or to test technology devices.
    (1) Your SAP must describe how you will conduct your resource 
assessment (e.g., meteorological and oceanographic data collection) or 
technology testing activities; and
    (2) BOEM will withhold trade secrets and commercial or financial 
information that is privileged or confidential from public disclosure 
under exemption 4 of the FOIA and as provided in Sec.  585.114.
    (b) Your SAP must include data from:
    (1) Physical characterization surveys (e.g., geological and 
geophysical surveys or hazards surveys); and
    (2) Baseline environmental surveys (e.g., biological or 
archaeological surveys).
    (c) You must receive BOEM approval of your SAP before you can begin 
any of the approved activities on your lease, as provided in Sec.  
585.613.
    (d) If you propose to construct a facility or combination of 
facilities deemed by BOEM to be complex or significant, as provided in 
Sec.  585.613(a)(1), you must also comply with the requirements of 30 
CFR part 285, subpart G, and submit your safety management system as 
required by 30 CFR 285.810.


Sec.  585.606  What must I demonstrate in my SAP?

    (a) Your SAP must demonstrate that you have planned and are 
prepared to conduct the proposed site assessment activities in a manner 
that conforms to your responsibilities listed in Sec.  585.105(a) and:
    (1) Conforms to all applicable laws, regulations, and lease 
provisions of your commercial lease;
    (2) Is safe;
    (3) Does not unreasonably interfere with other uses of the OCS, 
including those involved with national security or defense;
    (4) Does not cause undue harm or damage to natural resources; life 
(including human and wildlife); property; the marine, coastal, or human 
environment; or sites, structures, or objects of historical or 
archaeological significance;
    (5) Uses best available and safest technology;
    (6) Uses best management practices; and
    (7) Uses properly trained personnel.
    (b) You must also demonstrate that your site assessment activities 
will collect the necessary information and data required for your COP, 
as provided in Sec.  585.626(a).


Sec.  585.607  How do I submit my SAP?

    You must submit one paper copy and one electronic version of your 
SAP to BOEM at the address listed in Sec.  585.110.


Sec. Sec.  585.608-585.609  [Reserved]

Contents of the Site Assessment Plan


Sec.  585.610  What must I include in my SAP?

    Your SAP must include the following information, as applicable.
    (a) For all activities you propose to conduct under your SAP, you 
must provide the following information:

------------------------------------------------------------------------
          Project information:                      Including:
------------------------------------------------------------------------
(1) Contact information................  The name, address, e-mail
                                          address, and phone number of
                                          an authorized representative.
(2) The site assessment or technology    A discussion of the objectives;
 testing concept.                         description of the proposed
                                          activities, including the
                                          technology you will use; and
                                          proposed schedule from start
                                          to completion.
(3) Designation of operator, if          As provided in Sec.   585.405.
 applicable.
(4) Commercial lease stipulations and    A description of the measures
 compliance.                              you took, or will take, to
                                          satisfy the conditions of any
                                          lease stipulations related to
                                          your proposed activities.
(5) A location plat....................  The surface location and water
                                          depth for all proposed and
                                          existing structures,
                                          facilities, and appurtenances
                                          located both offshore and
                                          onshore.
(6) General structural and project       Information for each type of
 design, fabrication, and installation.   facility associated with your
                                          project.
(7) Deployment activities..............  A description of the safety,
                                          prevention, and environmental
                                          protection features or
                                          measures that you will use.
(8) Your proposed measures for           A description of the measures
 avoiding, minimizing, reducing,          you will use to avoid or
 eliminating, and monitoring              minimize adverse effects and
 environmental impacts.                   any potential incidental take,
                                          before you conduct activities
                                          on your lease, and how you
                                          will mitigate environmental
                                          impacts from your proposed
                                          activities, including a
                                          description of the measures
                                          you will use as required by 30
                                          CFR part 285, subpart H.
(9) CVA nomination, if required........  CVA nominations for reports in
                                          30 CFR part 285, subpart G, as
                                          required by Sec.   285.706, or
                                          a request to waive the CVA
                                          requirement, as required by
                                          Sec.   285.705.
(10) Reference information.............  A list of any document or
                                          published source that you cite
                                          as part of your plan. You may
                                          reference information and data
                                          discussed in other plans you
                                          previously submitted or that
                                          are otherwise readily
                                          available to BOEM.
(11) Decommissioning and site clearance  A discussion of methodologies.
 procedures.
(12) Air quality information...........  Information as described in
                                          Sec.   585.700.
(13) A listing of all Federal, State,    A statement indicating whether
 and local authorizations or approvals    such authorization or approval
 required to conduct site assessment      has been applied for or
 activities on your lease.                obtained.
(14) A list of agencies and persons      Contact information and issues
 with whom you have communicated, or      discussed.
 with whom you will communicate,
 regarding potential impacts associated
 with your proposed activities.

[[Page 6457]]

 
(15) Financial assurance information...  Statements attesting that the
                                          activities and facilities
                                          proposed in your SAP are or
                                          will be covered by an
                                          appropriate bond or other
                                          approved security, as required
                                          in Sec.  Sec.   585.515 and
                                          585.516.
(16) Other information.................  Additional information as
                                          requested by BOEM.
------------------------------------------------------------------------

    (b) You must provide the results of geophysical and geological 
surveys, hazards surveys, archaeological surveys (if required), and 
baseline collection studies (e.g., biological) with the supporting data 
in your SAP:

------------------------------------------------------------------------
         Information             Report contents          Including
------------------------------------------------------------------------
(1) Geotechnical............  The results from the  A description of all
                               geotechnical survey   relevant seabed and
                               with supporting       engineering data
                               data.                 and information to
                                                     allow for the
                                                     design of the
                                                     foundation for that
                                                     facility. You must
                                                     provide data and
                                                     information to
                                                     depths below which
                                                     the underlying
                                                     conditions will not
                                                     influence the
                                                     integrity or
                                                     performance of the
                                                     structure. This
                                                     could include a
                                                     series of sampling
                                                     locations (borings
                                                     and in situ tests)
                                                     as well as
                                                     laboratory testing
                                                     of soil samples,
                                                     but may consist of
                                                     a minimum of one
                                                     deep boring with
                                                     samples.
(2) Shallow hazards.........  The results from the  A description of
                               shallow hazards       information
                               survey with           sufficient to
                               supporting data.      determine the
                                                     presence of the
                                                     following features
                                                     and their likely
                                                     effects on your
                                                     proposed facility,
                                                     including:
                                                    (i) Shallow faults;
                                                    (ii) Gas seeps or
                                                     shallow gas;
                                                    (iii) Slump blocks
                                                     or slump sediments;
                                                    (iv) Hydrates; and
                                                    (v) Ice scour of
                                                     seabed sediments.
(3) Archaeological resources  The results from the  (i) A description of
                               archaeological        the results and
                               survey with           data from the
                               supporting data, if   archaeological
                               required.             survey;
                                                    (ii) A description
                                                     of the historic and
                                                     prehistoric
                                                     archaeological
                                                     resources, as
                                                     required by the
                                                     National Historic
                                                     Preservation Act
                                                     (NHPA) of 1966, as
                                                     amended.
(4) Geological survey.......  The results from the  A report that
                               geological survey     describes the
                               with supporting       results of a
                               data.                 geological survey
                                                     that includes
                                                     descriptions of:
                                                    (i) Seismic activity
                                                     at your proposed
                                                     site;
                                                    (ii) Fault zones;
                                                    (iii) The
                                                     possibility and
                                                     effects of seabed
                                                     subsidence; and
                                                    (iv) The extent and
                                                     geometry of
                                                     faulting
                                                     attenuation effects
                                                     of geologic
                                                     conditions near
                                                     your site.
(5) Biological survey.......  The results from the  A description of the
                               biological survey     results of a
                               with supporting       biological survey,
                               data.                 including
                                                     descriptions of the
                                                     presence of live
                                                     bottoms; hard
                                                     bottoms;
                                                     topographic
                                                     features; and
                                                     surveys of other
                                                     marine resources
                                                     such as fish
                                                     populations
                                                     (including
                                                     migratory
                                                     populations),
                                                     marine mammals, sea
                                                     turtles, and sea
                                                     birds.
------------------------------------------------------------------------

    (c) If you submit your COP or FERC license application with your 
SAP then:
    (1) You must provide sufficient data and information with your COP 
or FERC license application for BOEM and/or FERC to complete the needed 
reviews and NEPA analysis.
    (2) You may need to revise your COP or FERC license application and 
BOEM and/or FERC may need to conduct additional reviews, including NEPA 
analysis, if new information becomes available after you complete your 
site assessment activities.


Sec.  585.611  What information and certifications must I submit with 
my SAP to assist BOEM in complying with NEPA and other relevant laws?

    You must submit, with your SAP, detailed information to assist BOEM 
in complying with NEPA and other relevant laws as appropriate.
    (a) A SAP submitted for an area in which BOEM has not previously 
reviewed site assessment activities under NEPA or other applicable 
Federal laws, must describe those resources, conditions, and activities 
listed in the following table that could be affected by your proposed 
activities or that could affect the activities proposed in your SAP.
    (b) For a SAP submitted for an area in which BOEM has previously 
considered site assessment activities under applicable Federal law 
(e.g., a NEPA analysis and CZMA consistency determination for site 
assessment activities), BOEM will review the SAP to determine if its 
impacts are consistent with those previously considered. If the 
anticipated effects of your proposed SAP activities are significantly 
different than those previously anticipated, we may determine that 
additional NEPA and other relevant Federal reviews are required. In 
that case, BOEM will notify you of such determination, and you must 
submit a SAP that describes those resources, conditions, and activities 
listed in the following table that could be affected by your proposed 
activities or that could affect the activities proposed in your SAP, 
including:

[[Page 6458]]



------------------------------------------------------------------------
     Type of information:                      Including:
------------------------------------------------------------------------
(1) Hazard information.......  Meteorology, oceanography, sediment
                                transport, geology, and shallow
                                geological or manmade hazards.
(2) Water quality............  Turbidity and total suspended solids from
                                construction.
(3) Biological resources.....  Benthic communities, marine mammals, sea
                                turtles, coastal and marine birds, fish
                                and shellfish, plankton, sea grasses,
                                and other plant life.
(4) Threatened or endangered   As required by the Endangered Species Act
 species.                       (ESA) of 1973 (16 U.S.C. 1531et seq.).
(5) Sensitive biological       Essential fish habitat, refuges,
 resources or habitats.         preserves, special management areas
                                identified in coastal management
                                programs, sanctuaries, rookeries, hard
                                bottom habitat, chemosynthetic
                                communities, calving grounds, barrier
                                islands, beaches, dunes, and wetlands.
(6) Archaeological resources.  As required by the NHPA (16 U.S.C. 470et
                                seq.), as amended.
(7) Social and economic        Employment, existing offshore and coastal
 conditions.                    infrastructure (including major sources
                                of supplies, services, energy, and
                                water), land use, subsistence resources
                                and harvest practices, recreation,
                                recreational and commercial fishing
                                (including typical fishing seasons,
                                location, and type), minority and lower
                                income groups, coastal zone management
                                programs, and viewshed.
(8) Coastal and marine uses..  Military activities, vessel traffic, and
                                energy and non-energy mineral
                                exploration or development.
(9) Consistency Certification  If required by CZMA, as appropriate:
                               (i) 15 CFR part 930, subpart D, if the
                                SAP is submitted prior to lease
                                issuance;
                               (ii) 15 CFR part 930, subpart E, if the
                                SAP is submitted after lease issuance.
(10) Other resources,          As identified by BOEM.
 conditions, and activities.
------------------------------------------------------------------------

Sec.  585.612  How will my SAP be processed for Federal consistency 
under the Coastal Zone Management Act?

    Your SAP will be processed based on whether it is submitted before 
or after your lease is issued:

------------------------------------------------------------------------
                                          Consistency review of your SAP
       If your SAP is submitted:           will be handled as follows:
------------------------------------------------------------------------
(a) Before lease issuance..............  You will furnish a copy of your
                                          SAP, consistency
                                          certification, and necessary
                                          data and information pursuant
                                          to 15 CFR part 930, subpart D,
                                          to the applicable State CZMA
                                          agency or agencies and BOEM at
                                          the same time.
(b) After lease issuance...............  You will submit a copy of your
                                          SAP, consistency
                                          certification, and necessary
                                          data and information pursuant
                                          to 15 CFR part 930, subpart E,
                                          to BOEM. BOEM will forward to
                                          the applicable State CZMA
                                          agency or agencies one paper
                                          copy and one electronic copy
                                          of your SAP, consistency
                                          certification, and necessary
                                          data and information required
                                          under 15 CFR part 930, subpart
                                          E, after BOEM has determined
                                          that all information
                                          requirements for the SAP are
                                          met.
------------------------------------------------------------------------

Sec.  585.613  How will BOEM process my SAP?

    (a) BOEM will review your submitted SAP, and additional information 
provided pursuant to Sec.  585.611, to determine if it contains the 
information necessary to conduct our technical and environmental 
reviews.
    (1) We will notify you if we deem your proposed facility or 
combination of facilities to be complex or significant;
    (2) We will notify you if your submitted SAP lacks any necessary 
information;
    (b) BOEM will prepare NEPA analysis, as appropriate.
    (c) As appropriate, we will coordinate and consult with relevant 
Federal and State agencies, executives of relevant local governments, 
and affected Indian Tribes and will provide to other Federal, State, 
and local agencies and affected Indian Tribes relevant nonproprietary 
data and information pertaining to your proposed activities.
    (d) During the review process, we may request additional 
information if we determine that the information provided is not 
sufficient to complete the review and approval process. If you fail to 
provide the requested information, BOEM may disapprove your SAP.
    (e) Upon completion of our technical and environmental reviews and 
other reviews required by Federal laws (e.g., CZMA), BOEM may approve, 
disapprove, or approve with modifications your SAP.
    (1) If we approve your SAP, we will specify terms and conditions to 
be incorporated into your SAP. You must certify compliance with those 
terms and conditions, required under 30 CFR 285.615(b); and
    (2) If we disapprove your SAP, we will inform you of the reasons 
and allow you an opportunity to submit a revised plan making the 
necessary corrections, and may suspend the term of your lease, as 
appropriate, to allow this to occur.
Activities Under an Approved SAP


Sec.  585.614  When may I begin conducting activities under my approved 
SAP?

    (a) You may begin conducting the activities approved in your SAP 
following BOEM approval of your SAP.
    (b) If you are installing a facility or a combination of facilities 
deemed by BOEM to be complex or significant, as provided in Sec.  
585.613(a)(1), you must comply with the requirements of 30 CFR part 
285, subpart G, and also submit your Safety Management System required 
by 30 CFR 285.810 before construction may begin.

[[Page 6459]]

Sec.  585.615  What other reports or notices must I submit to BOEM 
under my approved SAP?

    You must prepare and submit to BOEM a report annually on November 1 
of each year that summarizes your site assessment activities and the 
results of those activities. BOEM will withhold trade secrets and 
commercial or financial information that is privileged or confidential 
from public disclosure under exemption 4 of the FOIA and as provided in 
Sec.  585.114.


Sec.  585.616  [Reserved]


Sec.  585.617  What activities require a revision to my SAP, and when 
will BOEM approve the revision?

    (a) You must notify BOEM in writing before conducting any 
activities not described in your approved SAP, describing in detail the 
type of activities you propose to conduct. We will determine whether 
the activities you propose are authorized by your existing SAP or 
require a revision to your SAP. We may request additional information 
from you, if necessary, to make this determination.
    (b) BOEM will periodically review the activities under an approved 
SAP. The frequency and extent of the review will be based on the 
significance of any changes in available information and on onshore or 
offshore conditions affecting, or affected by, the activities conducted 
under your SAP. If the review indicates that the SAP should be revised 
to meet the requirements of this part, BOEM will require you to submit 
the needed revisions.
    (c) Activities for which a proposed revision to your SAP will 
likely be necessary include:
    (1) Activities not described in your approved SAP;
    (2) Modifications to the size or type of facility or equipment you 
will use;
    (3) Changes in the surface location of a facility or structure;
    (4) Addition of a facility or structure not contemplated in your 
approved SAP;
    (5) Changes in the location of your onshore support base from one 
State to another, or to a new base requiring expansion;
    (6) Changes in the location of bottom disturbances (anchors, 
chains, etc.) by 500 feet (152 meters) or greater from the approved 
locations. If a specific anchor pattern was approved as a mitigation 
measure to avoid contact with bottom features, any change in the 
proposed bottom disturbances would likely trigger the need for a 
revision;
    (7) Structural failure of one or more facilities; or
    (8) Changes to any other activity specified by BOEM.
    (d) We may begin the appropriate NEPA analysis and other relevant 
consultations when we determine that a proposed revision could:
    (1) Result in a significant change in the impacts previously 
identified and evaluated;
    (2) Require any additional Federal authorizations; or
    (3) Involve activities not previously identified and evaluated.
    (e) When you propose a revision, we may approve the revision if we 
determine that the revision is:
    (1) Designed not to cause undue harm or damage to natural 
resources; life (including human and wildlife); property; the marine, 
coastal, or human environment; or sites, structures, or objects of 
historical or archaeological significance; and
    (2) Otherwise consistent with the provisions of subsection 8(p) of 
the OCS Lands Act.


Sec.  585.618  What must I do upon completion of approved site 
assessment activities?

    (a) If, prior to the expiration of your site assessment term, you 
timely submit a COP meeting the requirements of this subpart, or a 
complete FERC license application, that describes the continued use of 
existing facilities approved in your SAP, you may keep such facilities 
in place on your lease during the time that BOEM reviews your COP for 
approval or FERC reviews your license application for approval.
    (b) You are not required to initiate the decommissioning process 
for facilities that are authorized to remain in place under your 
approved COP or approved FERC license.
    (c) If, following the technical and environmental review of your 
submitted COP, BOEM determines that such facilities may not remain in 
place, you must initiate the decommissioning process, as provided in 30 
CFR part 285, subpart I.
    (d) If FERC determines that such facilities may not remain in 
place, you must initiate the decommissioning process as provided in 30 
CFR part 285, subpart I.
    (e) You must initiate the decommissioning process, as set forth in 
30 CFR part 285, subpart I, upon the termination of your lease.


Sec.  585.619  [Reserved]

Construction and Operations Plan for Commercial Leases


Sec.  585.620  What is a Construction and Operations Plan (COP)?

    The COP describes your construction, operations, and conceptual 
decommissioning plans under your commercial lease, including your 
project easement. BOEM will withhold trade secrets and commercial or 
financial information that is privileged or confidential from public 
disclosure under exemption 4 of the FOIA and in accordance with the 
terms of Sec.  585.114.
    (a) Your COP must describe all planned facilities that you will 
construct and use for your project, including onshore and support 
facilities and all anticipated project easements.
    (b) Your COP must describe all proposed activities including your 
proposed construction activities, commercial operations, and conceptual 
decommissioning plans for all planned facilities, including onshore and 
support facilities.
    (c) You must receive BOEM approval of your COP before you can begin 
any of the approved activities on your lease.


Sec.  585.621  What must I demonstrate in my COP?

    Your COP must demonstrate that you have planned and are prepared to 
conduct the proposed activities in a manner that conforms to your 
responsibilities listed in Sec.  585.105(a) and:
    (a) Conforms to all applicable laws, implementing regulations, 
lease provisions, and stipulations or conditions of your commercial 
lease;
    (b) Is safe;
    (c) Does not unreasonably interfere with other uses of the OCS, 
including those involved with national security or defense;
    (d) Does not cause undue harm or damage to natural resources; life 
(including human and wildlife); property; the marine, coastal, or human 
environment; or sites, structures, or objects of historical or 
archaeological significance;
    (e) Uses best available and safest technology;
    (f) Uses best management practices; and
    (g) Uses properly trained personnel.


Sec.  585.622  How do I submit my COP?

    (a) You must submit one paper copy and one electronic version of 
your COP to BOEM at the address listed in Sec.  585.110.
    (b) You may submit information and a request for any project 
easement as part of your original COP submission or as a revision to 
your COP.

[[Page 6460]]

Sec.  Sec. 585.623-585.625  [Reserved]

Contents of the Construction and Operations Plan


Sec.  585.626  What must I include in my COP?

    (a) You must submit the results of the following surveys for the 
proposed site(s) of your facility(ies). Your COP must include the 
following information:

----------------------------------------------------------------------------------------------------------------
             Information:                     Report contents:                        Including:
----------------------------------------------------------------------------------------------------------------
(1) Shallow hazards..................  The results of the shallow     Information sufficient to determine the
                                        hazards survey with            presence of the following features and
                                        supporting data.               their likely effects on your proposed
                                                                       facility, including:
                                                                       (i) Shallow faults;
                                                                       (ii) Gas seeps or shallow gas;
                                                                       (iii) Slump blocks or slump sediments;
                                                                       (iv) Hydrates; or
                                                                       (v) Ice scour of seabed sediments.
(2) Geological survey relevant to the  The results of the geological  Assessment of:
 design and siting of your facility.    survey with supporting data.   (i) Seismic activity at your proposed
                                                                       site;
                                                                       (ii) Fault zones;
                                                                       (iii) The possibility and effects of
                                                                       seabed subsidence; and
                                                                       (iv) The extent and geometry of faulting
                                                                       attenuation effects of geologic
                                                                       conditions near your site.
(3) Biological.......................  The results of the biological  A description of the results of biological
                                        survey with supporting data.   surveys used to determine the presence of
                                                                       live bottoms, hard bottoms, and
                                                                       topographic features, and surveys of
                                                                       other marine resources such as fish
                                                                       populations (including migratory
                                                                       populations), marine mammals, sea
                                                                       turtles, and sea birds.
(4) Geotechnical survey..............  The results of your sediment   (i) The results of a testing program used
                                        testing program with           to investigate the stratigraphic and
                                        supporting data, the various   engineering properties of the sediment
                                        field and laboratory test      that may affect the foundations or
                                        methods employed, and the      anchoring systems for your facility.
                                        applicability of these        (ii) The results of adequate in situ
                                        methods as they pertain to     testing, boring, and sampling at each
                                        the quality of the samples,    foundation location, to examine all
                                        the type of sediment, and      important sediment and rock strata to
                                        the anticipated design         determine its strength classification,
                                        application. You must          deformation properties, and dynamic
                                        explain how the engineering    characteristics.
                                        properties of each sediment   (iii) The results of a minimum of one deep
                                        stratum affect the design of   boring (with soil sampling and testing)
                                        your facility. In your         at each edge of the project area and
                                        explanation, you must          within the project area as needed to
                                        describe the uncertainties     determine the vertical and lateral
                                        inherent in your overall       variation in seabed conditions and to
                                        testing program, and the       provide the relevant geotechnical data
                                        reliability and                required for design.
                                        applicability of each test
                                        method.
(5) Archaeological resources.........  The results of the             A description of the historic and
                                        archaeological resource        prehistoric archaeological resources, as
                                        survey with supporting data.   required by the NHPA (16 U.S.C. 470et.
                                                                       seq.), as amended.
(6) Overall site investigation.......  An overall site investigation  An analysis of the potential for:
                                        report for your facility       (i) Scouring of the seabed;
                                        that integrates the findings   (ii) Hydraulic instability;
                                        of your shallow hazards        (iii) The occurrence of sand waves;
                                        surveys and geologic           (iv) Instability of slopes at the
                                        surveys, and, if required,     facility location;
                                        your subsurface surveys with   (v) Liquefaction, or possible reduction
                                        supporting data.               of sediment strength due to increased
                                                                       pore pressures;
                                                                       (vi) Degradation of subsea permafrost
                                                                       layers;
                                                                       (vii) Cyclic loading;
                                                                       (viii) Lateral loading;
                                                                       (ix) Dynamic loading;
                                                                       (x) Settlements and displacements;
                                                                       (xi) Plastic deformation and formation
                                                                       collapse mechanisms; and
                                                                       (xii) Sediment reactions on the facility
                                                                       foundations or anchoring systems.
----------------------------------------------------------------------------------------------------------------

    (b) Your COP must include the following project-specific 
information, as applicable.

[[Page 6461]]



------------------------------------------------------------------------
          Project information:                      Including:
------------------------------------------------------------------------
(1) Contact information................  The name, address, e-mail
                                          address, and phone number of
                                          an authorized representative.
(2) Designation of operator, if          As provided in Sec.   585.405.
 applicable.
(3) The construction and operation       A discussion of the objectives,
 concept.                                 description of the proposed
                                          activities, tentative schedule
                                          from start to completion, and
                                          plans for phased development,
                                          as provided in Sec.   585.238.
(4) Commercial lease stipulations and    A description of the measures
 compliance.                              you took, or will take, to
                                          satisfy the conditions of any
                                          lease stipulations related to
                                          your proposed activities.
(5) A location plat....................  The surface location and water
                                          depth for all proposed and
                                          existing structures,
                                          facilities, and appurtenances
                                          located both offshore and
                                          onshore, including all anchor/
                                          mooring data.
(6) General structural and project       Information for each type of
 design, fabrication, and installation.   structure associated with your
                                          project and, unless BSEE
                                          provides otherwise, how you
                                          will use a CVA to review and
                                          verify each stage of the
                                          project.
(7) All cables and pipelines, including  Location, design and
 cables on project easements.             installation methods, testing,
                                          maintenance, repair, safety
                                          devices, exterior corrosion
                                          protection, inspections, and
                                          decommissioning.
(8) A description of the deployment      Safety, prevention, and
 activities.                              environmental protection
                                          features or measures that you
                                          will use.
(9) A list of solid and liquid wastes    Disposal methods and locations.
 generated.
(10) A listing of chemical products      A list of chemical products
 used (if stored volume exceeds           used; the volume stored on
 Environmental Protection Agency (EPA)    location; their treatment,
 reportable quantities).                  discharge, or disposal methods
                                          used; and the name and
                                          location of the onshore waste
                                          receiving, treatment, and/or
                                          disposal facility. A
                                          description of how these
                                          products would be brought
                                          onsite, the number of
                                          transfers that may take place,
                                          and the quantity that will be
                                          transferred each time.
(11) A description of any vessels,       An estimate of the frequency
 vehicles, and aircraft you will use to   and duration of vessel/vehicle/
 support your activities.                 aircraft traffic.
(12) A general description of the        (i) Under normal conditions.
 operating procedures and systems.       (ii) In the case of accidents
                                          or emergencies, including
                                          those that are natural or
                                          manmade.
(13) Decommissioning and site clearance  A discussion of general
 procedures.                              concepts and methodologies.
(14) A listing of all Federal, State,    (i) The U.S. Coast Guard, U.S.
 and local authorizations, approvals,     Army Corps of Engineers, and
 or permits that are required to          any other applicable
 conduct the proposed activities,         authorizations, approvals, or
 including commercial operations.         permits, including any
                                          Federal, State or local
                                          authorizations pertaining to
                                          energy gathering, transmission
                                          or distribution (e.g.,
                                          interconnection
                                          authorizations).
                                         (ii) A statement indicating
                                          whether you have applied for
                                          or obtained such
                                          authorization, approval, or
                                          permit.
(15) Your proposed measures for          A description of the measures
 avoiding, minimizing, reducing,          you will use to avoid or
 eliminating, and monitoring              minimize adverse effects and
 environmental impacts.                   any potential incidental take
                                          before you conduct activities
                                          on your lease, and how you
                                          will mitigate environmental
                                          impacts from your proposed
                                          activities, including a
                                          description of the measures
                                          you will use as required by
                                          this part and 30 CFR part 285,
                                          subpart H.
(16) Information you incorporate by      A listing of the documents you
 reference.                               referenced.
(17) A list of agencies and persons      Contact information and issues
 with whom you have communicated, or      discussed.
 with whom you will communicate,
 regarding potential impacts associated
 with your proposed activities.
(18) Reference.........................  A list of any document or
                                          published source that you cite
                                          as part of your plan. You may
                                          reference information and data
                                          discussed in other plans you
                                          previously submitted or that
                                          are otherwise readily
                                          available to BOEM.
(19) Financial assurance...............  Statements attesting that the
                                          activities and facilities
                                          proposed in your COP are or
                                          will be covered by an
                                          appropriate bond or security,
                                          as required by Sec.  Sec.
                                          585.515 and 585.516.
(20) CVA nominations for reports         CVA nominations for reports in
 required in 30 CFR part 285, subpart G.  30 CFR part 285, subpart G, as
                                          required by Sec.   285.706, or
                                          a request for a waiver under
                                          Sec.   285.705(c).
(21) Construction schedule.............  A reasonable schedule of
                                          construction activity showing
                                          significant milestones leading
                                          to the commencement of
                                          commercial operations.
(22) Air quality information...........  As described in Sec.   585.700.
(23) Other information.................  Additional information as
                                          required by BOEM.
------------------------------------------------------------------------

Sec.  585.627  What information and certifications must I submit with 
my COP to assist BOEM in complying with NEPA and other relevant laws?

    (a) You must submit with your COP detailed information to assist 
BOEM in complying with NEPA and other relevant laws. Your COP must 
describe those resources, conditions, and activities listed in the 
following table that could be affected by your proposed activities, or 
that could affect the activities proposed in your COP, including:

[[Page 6462]]



------------------------------------------------------------------------
          Type of information:                      Including:
------------------------------------------------------------------------
(1) Hazard information.................  Meteorology, oceanography,
                                          sediment transport, geology,
                                          and shallow geological or
                                          manmade hazards.
(2) Water quality......................  Turbidity and total suspended
                                          solids from construction.
(3) Biological resources...............  Benthic communities, marine
                                          mammals, sea turtles, coastal
                                          and marine birds, fish and
                                          shellfish, plankton,
                                          seagrasses, and plant life.
(4) Threatened or endangered species...  As defined by the ESA (16
                                          U.S.C. 1531et seq.).
(5) Sensitive biological resources or    Essential fish habitat,
 habitats.                                refuges, preserves, special
                                          management areas identified in
                                          coastal management programs,
                                          sanctuaries, rookeries, hard
                                          bottom habitat, chemosynthetic
                                          communities, calving grounds,
                                          barrier islands, beaches,
                                          dunes, and wetlands.
(6) Archaeological resources...........  As required by the NHPA (16
                                          U.S.C. 470et seq.), as
                                          amended.
(7) Social and economic resources......  Employment, existing offshore
                                          and coastal infrastructure
                                          (including major sources of
                                          supplies, services, energy,
                                          and water), land use,
                                          subsistence resources and
                                          harvest practices, recreation,
                                          recreational and commercial
                                          fishing (including typical
                                          fishing seasons, location, and
                                          type), minority and lower
                                          income groups, coastal zone
                                          management programs, and
                                          viewshed.
(8) Coastal and marine uses............  Military activities, vessel
                                          traffic, and energy and non-
                                          energy mineral exploration or
                                          development.
(9) Consistency Certification..........  As required by the CZMA
                                          regulations:
                                         (i) 15 CFR part 930, subpart D,
                                          if your COP is submitted
                                          before lease issuance.
                                         (ii) 15 CFR part 930, subpart
                                          E, if your COP is submitted
                                          after lease issuance.
(10) Other resources, conditions, and    As identified by BOEM.
 activities.
------------------------------------------------------------------------

    (b) You must submit one paper copy and one electronic copy of your 
consistency certification. Your consistency certification must include:
    (1) One copy of your consistency certification either under 
subsection 307(c)(3)(B) of the CZMA (16 U.S.C. 1456(c)(3)(B)) and 15 
CFR 930.76, or under subsection 307(c)(3)(A) of the CZMA (16 U.S.C. 
1456(c)(3)(A)) and 15 CFR 930.57, stating that the proposed activities 
described in detail in your plans comply with the State(s) approved 
coastal management program(s) and will be conducted in a manner that is 
consistent with such program(s); and
    (2) ``Necessary data and information,'' as required by 15 CFR 
930.58.
    (c) You must submit your oil spill response plan to BSEE as 
required by 30 CFR part 254.
    (d) You must submit your safety management system to BSEE as 
required by 30 CFR 285.810.


Sec.  585.628  How will BOEM process my COP?

    (a) BOEM will review your submitted COP, and the information 
provided pursuant to Sec.  585.627, to determine if it contains all the 
required information necessary to conduct our technical and 
environmental reviews. We will notify you if your submitted COP lacks 
any necessary information.
    (b) BOEM will prepare an appropriate NEPA analysis.
    (c) If your COP is submitted after lease issuance, BOEM will 
forward one copy of your COP, consistency certification, and associated 
data and information under the CZMA to the applicable State CZMA agency 
or agencies after all information requirements for the COP are met.
    (d) As appropriate, BOEM will coordinate and consult with relevant 
Federal, State, and local agencies and affected Indian Tribes, and 
provide to them relevant nonproprietary data and information pertaining 
to your proposed activities.
    (e) During the review process, we may request additional 
information if we determine that the information provided is not 
sufficient to complete the review and approval process. If you fail to 
provide the requested information, BOEM may disapprove your COP.
    (f) Upon completion of our technical and environmental reviews and 
other reviews required by Federal law (e.g., CZMA), BOEM may approve, 
disapprove, or approve with modifications your COP.
    (1) If we approve your COP, we will specify terms and conditions to 
be incorporated into your COP. You must certify compliance with certain 
of those terms and conditions, as required under 30 CFR 285.633(a); and
    (2) If we disapprove your COP, we will inform you of the reasons 
and allow you an opportunity to resubmit a revised plan addressing the 
concerns identified, and may suspend the term of your lease, as 
appropriate, to allow this to occur.
    (g) If BOEM approves your project easement, BOEM will issue an 
addendum to your lease specifying the terms of the project easement. A 
project easement may include off-lease areas that:
    (1) Contain the sites on which cable, pipeline, or associated 
facilities are located;
    (2) Do not exceed 200 feet (61 meters) in width, unless safety and 
environmental factors during construction and maintenance of the 
associated cables or pipelines require a greater width; and
    (3) For associated facilities, are limited to the area reasonably 
necessary for power or pumping stations or other accessory facilities.


Sec.  Sec.  585.629-585.630  [Reserved]

Activities Under an Approved COP


Sec.  585.631  When must I initiate activities under an approved COP?

    After your COP is approved, you must commence construction by the 
date given in the construction schedule required by Sec.  
585.626(b)(21), and included as a part of your approved COP, unless 
BOEM approves a deviation from your schedule.


Sec.  585.632  What documents must I submit before I may construct and 
install facilities under my approved COP?

    (a) You must submit to BSEE the documents listed in the following 
table:

------------------------------------------------------------------------
                 Document:                   Requirements are found in:
------------------------------------------------------------------------
(1) Facility Design Report................  30 CFR 285.701.
(2) Fabrication and Installation Report...  30 CFR 285.702.
------------------------------------------------------------------------


[[Page 6463]]

    (b) You must submit your Safety Management System, as required by 
30 CFR 285.810.
    (c) These activities must fall within the scope of your approved 
COP. If they do not fall within the scope of your approved COP, you 
will be required to submit a revision to your COP, under Sec.  585.634, 
for BOEM approval before commencing the activity.


Sec.  585.633  [Reserved]


Sec.  585.634  What activities require a revision to my COP, and when 
will BOEM approve the revision?

    (a) You must notify BOEM in writing before conducting any 
activities not described in your approved COP, describing in detail the 
type of activities you propose to conduct. We will determine whether 
the activities you propose are authorized by your existing COP or 
require a revision to your COP. We may request additional information 
from you, if necessary, to make this determination.
    (b) BOEM will periodically review the activities conducted under an 
approved COP. The frequency and extent of the review will be based on 
the significance of any changes in available information, and on 
onshore or offshore conditions affecting, or affected by, the 
activities conducted under your COP. If the review indicates that the 
COP should be revised to meet the requirement of this part, BOEM will 
require you to submit the needed revisions.
    (c) Activities for which a proposed revision to your COP will 
likely be necessary include:
    (1) Activities not described in your approved COP;
    (2) Modifications to the size or type of facility or equipment you 
will use;
    (3) Change in the surface location of a facility or structure;
    (4) Addition of a facility or structure not described in your 
approved COP;
    (5) Change in the location of your onshore support base from one 
State to another or to a new base requiring expansion;
    (6) Changes in the location of bottom disturbances (anchors, 
chains, etc.) by 500 feet (152 meters) or greater from the approved 
locations (e.g., if a specific anchor pattern was approved as a 
mitigation measure to avoid contact with bottom features, any change in 
the proposed bottom disturbances would likely trigger the need for a 
revision);
    (7) Structural failure of one or more facilities; or
    (8) Change in any other activity specified by BOEM.
    (d) We may begin the appropriate NEPA analysis and relevant 
consultations when we determine that a proposed revision could:
    (1) Result in a significant change in the impacts previously 
identified and evaluated;
    (2) Require any additional Federal authorizations; or
    (3) Involve activities not previously identified and evaluated.
    (e) When you propose a revision, we may approve the revision if we 
determine that the revision is:
    (1) Designed not to cause undue harm or damage to natural 
resources; life (including human and wildlife); property; the marine, 
coastal, or human environment; or sites, structures, or objects of 
historical or archaeological significance; and
    (2) Otherwise consistent with the provisions of subsection 8(p) of 
the OCS Lands Act.


Sec.  585.635  What must I do if I cease activities approved in my COP 
before the end of my commercial lease?

    You must notify the BSEE, within 5 business days, any time you 
cease commercial operations, without an approved suspension, under your 
approved COP. If you cease commercial operations for an indefinite 
period which extends longer than 6 months, we may cancel your lease 
under Sec.  585.422 and, you must initiate the decommissioning process 
as set forth in 30 CFR part 285, subpart I.


Sec.  Sec.  585.636-585.639  [Reserved]

General Activities Plan Requirements for Limited Leases, ROW Grants, 
and RUE Grants


Sec.  585.640  What is a General Activities Plan (GAP)?

    (a) A GAP describes your proposed construction, activities, and 
conceptual decommissioning plans for all planned facilities, including 
testing of technology devices and onshore and support facilities that 
you will construct and use for your project, including any project 
easements for the assessment and development of your limited lease or 
grant.
    (b) You must receive BOEM approval of your GAP before you can begin 
any of the approved activities on your lease or grant. You must submit 
your GAP no later than 12 months from the date of the lease or grant 
issuance.


Sec.  585.641  What must I demonstrate in my GAP?

    Your GAP must demonstrate that you have planned and are prepared to 
conduct the proposed activities in a manner that:
    (a) Conforms to all applicable laws, implementing regulations, 
lease provisions and stipulations;
    (b) Is safe;
    (c) Does not unreasonably interfere with other uses of the OCS, 
including those involved with national security or defense;
    (d) Does not cause undue harm or damage to natural resources; life 
(including human and wildlife); property; the marine, coastal, or human 
environment; or sites, structures, or objects of historical or 
archaeological significance;
    (e) Uses best available and safest technology;
    (f) Uses best management practices; and
    (g) Uses properly trained personnel.


Sec.  585.642  How do I submit my GAP?

    (a) You must submit one paper copy and one electronic version of 
your GAP to BOEM at the address listed in Sec.  585.110.
    (b) If you have a limited lease, you may submit information on any 
project easement as part of your original GAP submission or as a 
revision to your GAP.


Sec. Sec.  585.643-585.644  [Reserved]

Contents of the General Activities Plan


Sec.  585.645  What must I include in my GAP?

    (a) You must provide the following results of geophysical and 
geological surveys, hazards surveys, archaeological surveys (if 
required), and baseline collection studies (e.g., biological) with the 
supporting data in your GAP:

[[Page 6464]]



------------------------------------------------------------------------
        Information:            Report contents:         Including:
------------------------------------------------------------------------
(1) Geotechnical............  The results from the  A description of all
                               geotechnical survey   relevant seabed and
                               with supporting       engineering data
                               data.                 and information to
                                                     allow for the
                                                     design of the
                                                     foundation for that
                                                     facility. You must
                                                     provide data and
                                                     information to
                                                     depths below which
                                                     the underlying
                                                     conditions will not
                                                     influence the
                                                     integrity or
                                                     performance of the
                                                     structure. This
                                                     could include a
                                                     series of sampling
                                                     locations (borings
                                                     and in situ tests)
                                                     as well as
                                                     laboratory testing
                                                     of soil samples,
                                                     but may consist of
                                                     a minimum of one
                                                     deep boring with
                                                     samples.
(2) Shallow hazards.........  The results from the  A description of
                               shallow hazards       information
                               survey with           sufficient to
                               supporting data.      determine the
                                                     presence of the
                                                     following features
                                                     and their likely
                                                     effects on your
                                                     proposed facility,
                                                     including:
                                                     (i) Shallow faults;
                                                     (ii) Gas seeps or
                                                     shallow gas;
                                                     (iii) Slump blocks
                                                     or slump sediments;
                                                     (iv) Hydrates; or
                                                     (v) Ice scour of
                                                     seabed sediments.
(3) Archaeological resources  The results from the  (i) A description of
                               archaeological        the results and
                               survey with           data from the
                               supporting data, if   archaeological
                               required.             survey;
                                                    (ii) A description
                                                     of the historic and
                                                     prehistoric
                                                     archaeological
                                                     resources, as
                                                     required by NHPA
                                                     (16 U.S.C. 470et
                                                     seq.), as amended.
(4) Geological survey.......  The results from the  A report that
                               geological survey     describes the
                               with supporting       results of a
                               data.                 geological survey
                                                     that includes
                                                     descriptions of:
                                                     (i) Seismic
                                                     activity at your
                                                     proposed site;
                                                     (ii) Fault zones;
                                                     (iii) The
                                                     possibility and
                                                     effects of seabed
                                                     subsidence; and
                                                    (iv) The extent and
                                                     geometry of
                                                     faulting
                                                     attenuation effects
                                                     of geologic
                                                     conditions near
                                                     your site.
(5) Biological survey.......  The results from the  A description of the
                               biological survey     results of a
                               with supporting       biological survey,
                               data.                 including the
                                                     presence of live
                                                     bottoms, hard
                                                     bottoms, and
                                                     topographic
                                                     features, and
                                                     surveys of other
                                                     marine resources
                                                     such as fish
                                                     populations
                                                     (including
                                                     migratory
                                                     populations),
                                                     marine mammals, sea
                                                     turtles, and sea
                                                     birds.
------------------------------------------------------------------------

    (b) For all activities you propose to conduct under your GAP, you 
must provide the following information:

------------------------------------------------------------------------
          Project information:                      Including:
------------------------------------------------------------------------
(1) Contact information................  The name, address, e-mail
                                          address, and phone number of
                                          an authorized representative.
(2) The site assessment or technology     A discussion of the
 testing concept.                         objectives; description of the
                                          proposed activities, including
                                          the technology you will use;
                                          and proposed schedule from
                                          start to completion.
(3) Designation of operator, if          As provided in Sec.   585.405.
 applicable.
(4) ROW, RUE or limited lease grant      A description of the measures
 stipulations, if known.                  you took, or will take, to
                                          satisfy the conditions of any
                                          lease stipulations related to
                                          your proposed activities.
(5) A location plat....................  The surface location and water
                                          depth for all proposed and
                                          existing structures,
                                          facilities, and appurtenances
                                          located both offshore and
                                          onshore.
(6) General structural and project       Information for each type of
 design, fabrication, and installation.   facility associated with your
                                          project.
(7) Deployment activities..............  A description of the safety,
                                          prevention, and environmental
                                          protection features or
                                          measures that you will use.
(8) A list of solid and liquid wastes    Disposal methods and locations.
 generated.
(9) A listing of chemical products used  A list of chemical products
 (only if stored volume exceeds USEPA     used; the volume stored on
 reportable quantities).                  location; their treatment,
                                          discharge, or disposal methods
                                          used; and the name and
                                          location of the onshore waste
                                          receiving, treatment, and/or
                                          disposal facility. A
                                          description of how these
                                          products would be brought
                                          onsite, the number of
                                          transfers that may take place,
                                          and the quantity that will be
                                          transferred each time.
(10) Reference information.............  A list of any document or
                                          published source that you cite
                                          as part of your plan. You may
                                          reference information and data
                                          discussed in other plans you
                                          previously submitted or that
                                          are otherwise readily
                                          available to BOEM.
(11) Decommissioning and site clearance  A discussion of methodologies.
 procedures.
(12) Air quality information...........  As described in Sec.   585.700.

[[Page 6465]]

 
(13) A listing of all Federal, State,    A statement indicating whether
 and local authorizations or approvals    such authorization or approval
 required to conduct site assessment      has been applied for or
 activities on your lease.                obtained.
(14) A list of agencies and persons      Contact information and issues
 with whom you have communicated, or      discussed.
 with whom you will communicate,
 regarding potential impacts associated
 with your proposed activities.
(15) Financial assurance information...  Statements attesting that the
                                          activities and facilities
                                          proposed in your GAP are or
                                          will be covered by an
                                          appropriate bond or other
                                          approved security, as required
                                          in Sec.  Sec.   585.520-.521.
(16) Other information.................  Additional information as
                                          requested by BOEM.
------------------------------------------------------------------------

    (c) If you are applying for a project easement or constructing a 
facility, or a combination of facilities deemed by BOEM to be complex 
or significant, you must provide the following information in addition 
to what is required in paragraphs (a) and (b) of this section and 
comply with the requirements of 30 CFR part 285, subpart G:

------------------------------------------------------------------------
          Project information:                      Including:
------------------------------------------------------------------------
(1) The construction and operation       A discussion of the objectives,
 concept.                                 description of the proposed
                                          activities, and tentative
                                          schedule from start to
                                          completion.
(2) All cables and pipelines, including  The location, design,
 cables on project easements.             installation methods, testing,
                                          maintenance, repair, safety
                                          devices, exterior corrosion
                                          protection, inspections, and
                                          decommissioning.
(3) A description of the deployment      Safety, prevention, and
 activities.                              environmental protection
                                          features or measures that you
                                          will use.
(4) A general description of the         (i) Under normal conditions.
 operating procedures and systems.        (ii) In the case of accidents
                                          or emergencies, including
                                          those that are natural or
                                          manmade.
(5) CVA nominations for reports          CVA nominations for reports in
 required in 30 CFR part 285, subpart     30 CFR part 285, subpart G, as
 G..                                      required by Sec.   285.706, or
                                          a request for a waiver under
                                          Sec.   285.705.
(6) Construction schedule..............  A reasonable schedule of
                                          construction activity showing
                                          significant milestones leading
                                          to the commencement of
                                          activities.
(7) Other information..................  Additional information as
                                          required by the BOEM.
------------------------------------------------------------------------

    (d) BOEM will withhold trade secrets and commercial or financial 
information that is privileged or confidential from public disclosure 
in accordance with the terms of Sec.  585.114.


Sec.  585.646  What information and certifications must I submit with 
my GAP to assist BOEM in complying with NEPA and other relevant laws?

    You must submit, with your GAP, detailed information to assist BOEM 
in complying with NEPA and other relevant laws as appropriate.
    (a) A GAP submitted for an area in which BOEM has not reviewed GAP 
activities under NEPA or other applicable Federal laws must describe 
those resources, conditions, and activities listed in the following 
table that could be affected by your proposed activities or that could 
affect the activities proposed in your GAP.
    (b) For a GAP submitted for an area in which BOEM has considered 
GAP activities under applicable Federal law (e.g., a NEPA analysis and 
CZMA consistency determination for the GAP activities), BOEM will 
review the GAP to determine if its impacts are consistent with those 
previously considered. If the anticipated effects of your proposed GAP 
activities are significantly different than those previously 
anticipated, we may determine that additional NEPA and other relevant 
Federal reviews are required. In that case, BOEM will notify you of 
such determination, and you must submit a GAP that describes those 
resources, conditions, and activities listed in the following table 
that could be affected by your proposed activities or that could affect 
the activities proposed in your GAP, including:

------------------------------------------------------------------------
     Type of information:                      Including:
------------------------------------------------------------------------
(1) Hazard information.......  Meteorology, oceanography, sediment
                                transport, geology, and shallow
                                geological or manmade hazards.
(2) Water quality............  Turbidity and total suspended solids from
                                construction.
(3) Biological resources.....  Benthic communities, marine mammals, sea
                                turtles, coastal and marine birds, fish
                                and shellfish, plankton, sea grasses,
                                and other plant life.
(4) Threatened or endangered   As required by the ESA (16 U.S.C. 1531et
 species.                       seq.).
(5) Sensitive biological       Essential fish habitat, refuges,
 resources or habitats.         preserves, special management areas
                                identified in coastal management
                                programs, sanctuaries, rookeries, hard
                                bottom habitat, chemosynthetic
                                communities, calving grounds, barrier
                                islands, beaches, dunes, and wetlands.
(6) Archaeological resources.  As required by NHPA (16 U.S.C. 470et
                                seq.), as amended.
(7) Social and economic        Employment, existing offshore and coastal
 conditions.                    infrastructure (including major sources
                                of supplies, services, energy, and
                                water), land use, subsistence resources
                                and harvest practices, recreation,
                                recreational and commercial fishing
                                (including typical fishing seasons,
                                location, and type), minority and lower
                                income groups, coastal zone management
                                programs, and view shed.
(8) Coastal and marine uses..  Military activities, vessel traffic, and
                                energy and non-energy mineral
                                exploration or development.

[[Page 6466]]

 
(9) Consistency Certification  If required by CZMA, as appropriate: (i)
                                15 CFR part 930, subpart D, if the GAP
                                is submitted prior to lease or grant
                                issuance; (ii) 15 CFR part 930, subpart
                                E, if the GAP is submitted after lease
                                or grant issuance.
(10) Other resources,          As required by BOEM.
 conditions, and activities.
------------------------------------------------------------------------

Sec.  585.647  How will my GAP be processed for Federal consistency 
under the Coastal Zone Management Act?

    Your GAP will be processed based on whether it is submitted before 
or after your lease or grant is issued:

------------------------------------------------------------------------
                                 Consistency review of your GAP will be
  If your GAP is submitted:               handled as follows:
------------------------------------------------------------------------
(a) Before lease or grant      You will furnish a copy of your GAP,
 issuance.                      consistency certification, and necessary
                                data and information pursuant to 15 CFR
                                part 930, subpart D, to the applicable
                                State CZMA agency or agencies and BOEM
                                at the same time.
(b) After lease or grant       You will submit a copy of your GAP,
 issuance.                      consistency certification, and necessary
                                data and information pursuant to 15 CFR
                                930, subpart E, to BOEM. BOEM will
                                forward to the applicable State CZMA
                                agency or agencies one paper copy and
                                one electronic copy of your GAP,
                                consistency certification, and necessary
                                data and information required under 15
                                CFR part 930, subpart E, after BOEM has
                                determined that all information
                                requirements for the GAP are met.
------------------------------------------------------------------------

Sec.  585.648  How will BOEM process my GAP?

    (a) BOEM will review your submitted GAP, along with the information 
and certifications provided pursuant to Sec.  585.646, to determine if 
it contains all the required information necessary to conduct our 
technical and environmental reviews.
    (1) We will notify you if we deem your proposed facility or 
combination of facilities to be complex or significant; and
    (2) We will notify you if your submitted GAP lacks any necessary 
information.
    (b) BOEM will prepare appropriate NEPA analysis.
    (c) When appropriate, we will coordinate and consult with relevant 
State and Federal agencies and affected Indian Tribes and provide to 
other local, State, and Federal agencies and affected Indian Tribes 
relevant nonproprietary data and information pertaining to your 
proposed activities.
    (d) During the review process, we may request additional 
information if we determine that the information provided is not 
sufficient to complete the review and approval process. If you fail to 
provide the requested information, BOEM may disapprove your GAP.
    (e) Upon completion of our technical and environmental reviews and 
other reviews required by Federal law (e.g., CZMA), BOEM may approve, 
disapprove, or approve with modifications your GAP.
    (1) If we approve your GAP, we will specify terms and conditions to 
be incorporated into your GAP. You must certify compliance with certain 
of those terms and conditions, as required under 30 CFR 285.653(b); and
    (2) If we disapprove your GAP, we will inform you of the reasons 
and allow you an opportunity to resubmit a revised plan making the 
necessary corrections, and may suspend the term of your lease or grant, 
as appropriate, to allow this to occur.


Sec.  585.649  [Reserved]

Activities Under an Approved GAP


Sec.  585.650  When may I begin conducting activities under my GAP?

    After BOEM approves your GAP, you may begin conducting the approved 
activities that do not involve a project easement or the construction 
of facilities on the OCS that BOEM has deemed to be complex or 
significant.


Sec.  585.651  When may I construct complex or significant OCS 
facilities on my limited lease or any facilities on my project easement 
proposed under my GAP?

    If you are applying for a project easement, or installing a 
facility or a combination of facilities on your limited lease deemed by 
BOEM to be complex or significant, as provided in Sec.  585.648(a)(1), 
you also must comply with the requirements of 30 CFR part 285, subpart 
G, and submit your safety management system description required by 30 
CFR 285.810 before construction may begin.


Sec.  585.652  How long do I have to conduct activities under an 
approved GAP?

    After BOEM approves your GAP, you have:
    (a) For a limited lease, 5 years to conduct your approved 
activities, unless we renew the term under Sec. Sec.  585.425 through 
585.429.
    (b) For a ROW grant or RUE grant, the time provided in the terms of 
the grant.


Sec.  585.653  What other reports or notices must I submit to BOEM 
under my approved GAP?

    You must prepare and submit to BOEM annually a report that 
summarizes the findings from any activities you conduct under your 
approved GAP and the results of those activities. We will protect the 
information from public disclosure as provided in Sec.  585.114.


Sec.  585.654  [Reserved]


Sec.  585.655  What activities require a revision to my GAP, and when 
will BOEM approve the revision?

    (a) You must notify BOEM in writing before conducting any 
activities not described in your approved GAP, describing in detail the 
type of activities you propose to conduct. We will determine whether 
the activities you propose are authorized by your existing GAP or 
require a revision to your GAP. We may request additional information 
from you, if necessary, to make this determination.
    (b) BOEM will periodically review the activities conducted under an 
approved GAP. The frequency and extent of the review will be based on 
the significance

[[Page 6467]]

of any changes in available information and on onshore or offshore 
conditions affecting, or affected by, the activities conducted under 
your GAP. If the review indicates that the GAP should be revised to 
meet the requirement of this part, BOEM will require you to submit the 
needed revisions.
    (c) Activities for which a proposed revision to your GAP will 
likely be necessary include:
    (1) Activities not described in your approved GAP;
    (2) Modifications to the size or type of facility or equipment you 
will use;
    (3) Change in the surface location of a facility or structure;
    (4) Addition of a facility or structure not contemplated in your 
approved GAP;
    (5) Change in the location of your onshore support base from one 
State to another or to a new base requiring expansion;
    (6) Changes in the locations of bottom disturbances (anchors, 
chains,etc.) by 500 feet (152 meters) or greater from the approved 
locations. If a specific anchor pattern was approved as a mitigation 
measure to avoid contact with bottom features, any change in the 
proposed bottom disturbances would likely trigger the need for a 
revision;
    (7) Structural failure of one or more facilities; or
    (8) Change to any other activity specified by BOEM.
    (d) We may begin the appropriate NEPA analysis and any relevant 
consultations when we determine that a proposed revision could:
    (1) Result in a significant change in the impacts previously 
identified and evaluated;
    (2) Require any additional Federal authorizations; or
    (3) Involve activities not previously identified and evaluated.
    (e) When you propose a revision, we may approve the revision if we 
determine that the revision is:
    (1) Designed not to cause undue harm or damage to natural 
resources; life (including human and wildlife); property; the marine, 
coastal, or human environment; or sites, structures, or objects of 
historical or archaeological significance; and
    (2) Otherwise consistent with the provisions of subsection 8(p) of 
the OCS Lands Act.


Sec.  585.656  What must I do if I cease activities approved in my GAP 
before the end of my term?

    You must notify the BOEM any time you cease activities under your 
approved GAP without an approved suspension. If you cease activities 
for an indefinite period that exceeds 6 months, BOEM may cancel your 
lease or grant under Sec.  585.422, as applicable, and you must 
initiate the decommissioning process, as set forth in 30 CFR part 285, 
subpart I.


Sec.  585.657  What must I do upon completion of approved activities 
under my GAP?

    Upon completion of your approved activities under your GAP, you 
must initiate the decommissioning process as set forth in 30 CFR part 
285, subpart I. You must submit your decommissioning application as 
provided in 30 CFR 285.905 and 285.906.
Cable and Pipeline Deviations


Sec.  585.658  Can my cable or pipeline construction deviate from my 
approved COP or GAP?

    (a) You must make every effort to ensure that all cables and 
pipelines are constructed in a manner that minimizes deviations from 
the approved plan under your lease or grant.
    (b) If BOEM determines that a significant change in conditions has 
occurred that would necessitate an adjustment to your ROW, RUE or lease 
before the commencement of construction of the cable or pipeline on the 
grant or lease, BOEM will consider modifications to your ROW grant, RUE 
grant, or your lease addendum for a project easement in connection with 
your COP or GAP.
    (c) If, after construction, it is determined that a deviation from 
the approved plan has occurred, you must:
    (1) Notify the operators of all leases (including mineral leases 
issued under this subchapter) and holders of all ROW grants or RUE 
grants (including all grants issued under this subchapter) which 
include the area where a deviation has occurred and provide BOEM with 
evidence of such notification;
    (2) Relinquish any unused portion of your lease or grant; and
    (3) Submit a revised plan for BOEM approval as necessary.
    (d) Construction of a cable or pipeline that substantially deviates 
from the approved plan may be grounds for cancellation of the lease or 
grant.


Sec.  585.659  [Reserved]

Environmental Protection Requirements Under Approved Plans


Sec.  585.700  What requirements must I include in my SAP, COP, or GAP 
regarding air quality?

    (a) You must comply with the Clean Air Act (42 U.S.C. 7409) and its 
implementing regulations, according to the following table.

------------------------------------------------------------------------
    If your project is located . . .              You must . . .
------------------------------------------------------------------------
(1) in the Gulf of Mexico west of        include in your plan any
 87.5[deg] west longitude (western Gulf   information required for BOEM
 of Mexico).                              to make the appropriate air
                                          quality determinations for
                                          your project.
(2) anywhere else on the OCS...........  follow the appropriate
                                          implementing regulations as
                                          promulgated by the EPA under
                                          40 CFR part 55.
------------------------------------------------------------------------

    (b) For air quality modeling that you perform in support of the 
activities proposed in your plan, you should contact the appropriate 
regulatory agency to establish a modeling protocol to ensure that the 
agency's needs are met and that the meteorological files used are 
acceptable before initiating the modeling work. In the western Gulf of 
Mexico (west of 87.5[deg] west longitude), you must submit to BOEM 
three copies of the modeling report and three sets of digital files as 
supporting information. The digital files must contain the formatted 
meteorological files used in the modeling runs, the model input file, 
and the model output file.


Sec.  585.701  How must I conduct my approved activities to protect 
marine mammals, threatened and endangered species, and designated 
critical habitat?

    (a) You must not conduct any activity under your lease or grant 
that may affect threatened or endangered species or that may affect 
designated critical habitat of such species until the appropriate level 
of consultation is conducted, as required under the ESA, as amended (16 
U.S.C. 1531et seq.), to ensure that your actions are not likely to 
jeopardize a threatened or endangered species and are not likely to 
destroy or adversely modify designated critical habitat.
    (b) You must not conduct any activity under your lease or grant 
that may result in an incidental taking of marine mammals until the 
appropriate authorization has been issued under the Marine Mammal 
Protection Act of 1972

[[Page 6468]]

(MMPA) as amended (16 U.S.C. 1361et seq.).
    (c) If there is reason to believe that a threatened or endangered 
species may be present while you conduct your BOEM-approved activities 
or may be affected by the direct or indirect effects of your actions:
    (1) You must notify us that endangered or threatened species may be 
present in the vicinity of the lease or grant or may be affected by 
your actions; and
    (2) We will consult with appropriate State and Federal fish and 
wildlife agencies and, after consultation, shall identify whether, and 
under what conditions, you may proceed.
    (d) If there is reason to believe that designated critical habitat 
of a threatened or endangered species may be affected by the direct or 
indirect effects of your BOEM-approved activities:
    (1) You must notify us that designated critical habitat of a 
threatened or endangered species in the vicinity of the lease or grant 
may be affected by your actions; and
    (2) We will consult with appropriate State and Federal fish and 
wildlife agencies and, after consultation, shall identify whether, and 
under what conditions, you may proceed.
    (e) If there is reason to believe that marine mammals may be 
incidentally taken as a result of your proposed activities:
    (1) You must agree to secure an authorization from National Oceanic 
and Atmospheric Administration (NOAA) or the U.S. Fish and Wildlife 
Service (FWS) for incidental taking, including taking by harassment, 
that may result from your actions; and
    (2) You must comply with all measures required by the NOAA or FWS, 
including measures to affect the least practicable impact on such 
species and their habitat and to ensure no immitigable adverse impact 
on the availability of the species for subsistence use.
    (f) Submit to us:
    (1) Measures designed to avoid or minimize adverse effects and any 
potential incidental take of the endangered or threatened species or 
marine mammals;
    (2) Measures designed to avoid likely adverse modification or 
destruction of designated critical habitat of such endangered or 
threatened species; and
    (3) Your agreement to monitor for the incidental take of the 
species and adverse effects on the critical habitat, and provide the 
results of the monitoring as required; and
    (4) Your agreement to perform any relevant terms and conditions of 
the Incidental Take Statement that may result from the ESA 
consultation.
    (5) Your agreement to perform any relevant mitigation measures 
under an MMPA incidental take authorization.


Sec.  585.702  What must I do if I discover a potential archaeological 
resource while conducting my approved activities?

    (a) If you, your subcontractors, or any agent acting on your behalf 
discovers a potential archaeological resource while conducting 
construction activities, or any other activity related to your project, 
you must:
    (1) Immediately halt all seafloor-disturbing activities within the 
area of the discovery;
    (2) Notify BOEM of the discovery within 72 hours; and
    (3) Keep the location of the discovery confidential and not take 
any action that may adversely affect the archaeological resource until 
we have made an evaluation and instructed you on how to proceed.
    (b) We may require you to conduct additional investigations to 
determine if the resource is eligible for listing in the National 
Register of Historic Places under 36 CFR 60.4. We will do this if:
    (1) The site has been impacted by your project activities; or
    (2) Impacts to the site or to the area of potential effect cannot 
be avoided.
    (c) If investigations under paragraph (b) of this section indicate 
that the resource is potentially eligible for listing in the National 
Register of Historic Places, we will tell you how to protect the 
resource, or how to mitigate adverse effects to the site.
    (d) If we incur costs in protecting the resource, under section 
110(g) of the NHPA, we may charge you reasonable costs for carrying out 
preservation responsibilities under the OCS Lands Act.


Sec.  585.703  How must I conduct my approved activities to protect 
essential fish habitats identified and described under the Magnuson-
Stevens Fishery Conservation and Management Act?

    (a) If, during the conduct of your approved activities, BOEM finds 
that essential fish habitat or habitat areas of particular concern may 
be adversely affected by your activities, BOEM must consult with 
National Marine Fisheries Service.
    (b) Any conservation recommendations adopted by BOEM to avoid or 
minimize adverse effects on essential fish habitat will be incorporated 
as terms and conditions in the lease and must be adhered to by the 
applicant. BOEM may require additional surveys to define boundaries and 
avoidance distances.
    (c) If required, BOEM will specify the survey methods and 
instrumentations for conducting the biological survey and will specify 
the contents of the biological report.

0
3. Add part 586 to subchapter B to read as follows:

PART 586--ALTERNATE USES OF EXISTING FACILITIES ON THE OUTER 
CONTINENTAL SHELF

Subpart A--General Provisions
Sec.
586.100 Authority.
586.101 What is the purpose of this part?
586.102 What activities does this part regulate?
586.103 What are BOEM's responsibilities under this part?
586.104 When may BOEM prescribe or approve departures from the 
regulations in this part?
586.105 What are my responsibilities under this part?
586.106 What happens if I fail to comply with this part?
586.107 Who can hold a grant under this part?
586.108 How do I show that I am qualified to be a grant holder?
586.109 When must I notify BOEM if an action has been filed alleging 
that I am insolvent or bankrupt?
586.110 When must I notify BOEM of mergers, name changes, or changes 
of business form?
586.111 How do I submit plans, applications, or notices required by 
this part?
586.112 When and how does BOEM charge me processing fees on a case-
by-case basis?
586.113 Definitions.
586.114 How will data and information obtained by BOEM under this 
part be disclosed to the public?
586.115 Paperwork Reduction Act statements--information collection.
586.116--586.117 [Reserved]
586.118 What are my appeal rights?
Subpart B--Issuance of Alternate Use RUEs for Energy- and Marine-
Related Activities Using Existing OCS Facilities

Requesting an Alternate Use RUE

586.200 What must I do before I request an Alternate Use RUE?
586.201 How do I request an Alternate Use RUE?
586.202 How will BOEM decide whether to issue an Alternate Use RUE?
586.203 What process will BOEM use for competitively offering an 
Alternate Use RUE
586.204-586.209 [Reserved]

Alternate Use RUE Administration

586.210 How long may I conduct activities under an Alternate Use 
RUE?
586.211 What payments are required for an Alternate Use RUE?

[[Page 6469]]

586.212 What financial assurance is required for an Alternate Use 
RUE?
586.213 Is an Alternate Use RUE assignable?
586.214 When will BOEM suspend an Alternate Use RUE?
586.215 How do I relinquish an Alternate Use RUE?
586.216 When will an Alternate Use RUE be cancelled?
586.217 [Reserved]
586.218 Who is responsible for decommissioning an OCS facility 
subject to an Alternate Use RUE?
586.219 What are the decommissioning requirements for an Alternate 
Use RUE?

    Authority: 43 U.S.C. 1337.

Subpart A--General Provisions


Sec.  586.100  Authority.

    The authority for this part derives from subsection 8 of the Outer 
Continental Shelf Lands Act (OCS Lands Act) (43 U.S.C. 1337). The 
Secretary of the Interior delegated to the Bureau of Ocean Energy 
Management (BOEM) the authority to regulate activities under section 
1337(p)(1)(D) of OCS Lands Act.


Sec.  586.101  What is the purpose of this part?

    The purpose of this part is to:
    (a) Establish procedures for issuance and administration of right-
of-use and easement (RUE) grants for the alternate use of existing OCS 
facilities for energy or marine-related purposes;
    (b) Inform you and third parties of your obligations when you 
undertake activities authorized in this part; and
    (c) Ensure that activities involving the alternate use of OCS 
facilities for energy or marine-related purposes are conducted in a 
safe and environmentally sound manner, in conformance with the 
requirements of subsection 8(p) of the OCS Lands Act, other applicable 
laws and regulations, and the terms of your Alternate Use RUE grant.
    (d) This part will not convey access rights for oil, gas, or other 
minerals.


Sec.  586.102  What activities does this part regulate?

    (a) This part provides the general provisions for authorizing and 
regulating activities that use, or propose to use, an existing OCS 
facility for energy- or marine-related purposes, that are not otherwise 
authorized under any other part of this subchapter or any other 
applicable Federal statute. Activities authorized under any other part 
of this subchapter or under any other Federal law that use (or propose 
to use) an existing OCS facility are not subject to this part.
    (b) BOEM will issue an Alternate Use RUE for activities authorized 
under this part.
    (c) At the discretion of the Director, an Alternate Use RUE may:
    (1) Permit alternate use activities to occur at an existing 
facility that is currently in use under an approved OCS lease; or
    (2) Limit alternate use activities at the existing facility until 
after previously authorized activities at the facility have ceased and 
the OCS lease terminates.


Sec.  586.103  What are BOEM's responsibilities under this part?

    (a) BOEM will ensure that any activities authorized in this part 
are carried out in a manner that provides for:
    (1) Safety;
    (2) Protection of the environment;
    (3) Prevention of waste;
    (4) Conservation of the natural resources of the OCS;
    (5) Coordination with relevant Federal agencies (including, in 
particular, those agencies involved in planning activities that are 
undertaken to avoid conflicts among users and to maximize the economic 
and ecological benefits of the OCS, including multifaceted spatial 
planning efforts);
    (6) Protection of National security interests of the United States;
    (7) Protection of the rights of other authorized users of the OCS;
    (8) A fair return to the United States;
    (9) Prevention of interference with reasonable uses (as determined 
by the Secretary or Director) of the exclusive economic zone, the high 
seas, and the territorial seas;
    (10) Consideration of the location of and any schedule relating to 
a grant under this part for an area of the OCS, and any other use of 
the sea or seabed;
    (11) Public notice and comment on any proposal submitted for a 
grant under this part; and
    (12) Oversight, research, and monitoring of activities authorized 
by a grant under this part.
    (b) BOEM will require compliance with all applicable laws, 
regulations, other requirements, and the terms of your grant and 
approved plans under this part. BOEM will approve, disapprove, or 
approve with conditions any plans, applications, or other documents 
submitted to BOEM for approval under the provisions of this part.
    (c) Unless otherwise provided in this part, BOEM may give oral 
directives or decisions whenever prior BOEM approval is required under 
this part. BOEM will document in writing any such oral directives 
within 10 business days.
    (d) BOEM will establish practices and procedures to govern the 
collection of all payments due to the Federal Government, including any 
cost recovery fees, rents, operating fees, and other fees or payments. 
BOEM will do this in accordance with the terms of this part, the grant 
under this part, and applicable Office of Natural Resources Revenue 
(ONRR) regulations or guidance.
    (e) BOEM will provide for coordination and consultation with the 
Governor of any State, the executive of any local government, and the 
executive of any Indian Tribe that may be affected by a grant issued 
under this part. BOEM may invite any affected State Governor, 
representative of an affected Indian Tribe, and affected local 
government executive to join in establishing a task force or other 
joint planning or coordination agreement in carrying out our 
responsibilities under this part.


Sec.  586.104  When may BOEM prescribe or approve departures from the 
regulations in this part?

    (a) BOEM may prescribe or approve departures from these regulations 
when departures are necessary to:
    (1) Facilitate the appropriate activities on a grant under this 
part;
    (2) Conserve natural resources;
    (3) Protect life (including human and wildlife), property, or the 
marine, coastal, or human environment; or
    (4) Protect sites, structures, or objects of historical or 
archaeological significance.
    (b) Any departure approved under this section and its rationale 
must:
    (1) Be consistent with subsection 8(p) of the OCS Lands Act;
    (2) Protect the environment and the public health and safety to the 
same degree as if there was no approved departure from the regulations;
    (3) Not impair the rights of third parties; and
    (4) Be documented in writing.


Sec.  586.105  What are my responsibilities under this part?

    As an applicant, operator, or holder of an Alternate Use RUE grant, 
you must:
    (a) Design your projects and conduct all activities in a manner 
that ensures safety and will not cause undue harm or damage to natural 
resources, including their physical, atmospheric, and biological 
components to the extent practicable; and take measures to prevent 
unauthorized discharge of pollutants including marine trash and debris 
into the offshore environment.
    (b) Submit requests, applications, plans, notices, modifications, 
and supplemental information to BOEM as required by this part;

[[Page 6470]]

    (c) Follow-up, in writing, any oral request or notification you 
made, within 3 business days;
    (d) Comply with the terms, conditions, and provisions of all 
reports and notices submitted to BOEM, and of all plans, revisions, and 
other BOEM approvals, as provided in this part;
    (e) Make all applicable payments on time;
    (f) Comply with the DOI's non-procurement debarment regulations at 
2 CFR part 1400;
    (g) Include the requirement to comply with 2 CFR part 1400 in all 
contracts and transactions related to a lease or grant under this part;
    (h) Conduct all activities authorized by the lease or grant in a 
manner consistent with the provisions of subsection 8(p) of the OCS 
Lands Act;
    (i) Compile, retain, and make available to BOEM representatives, 
within the time specified by BOEM, any data and information related to 
the site assessment, design, and operations of your project; and
    (j) Respond to requests from the Director in a timely manner.


Sec.  586.106  What happens if I fail to comply with this part?

    (a) BOEM may take appropriate corrective action under this part if 
you fail to comply with applicable provisions of Federal law, the 
regulations in this part, other applicable regulations, any order of 
the Director, the provisions of a grant issued under this part, or the 
requirements of an approved plan or other approval under this part.
    (b) BOEM may issue to you a notice of noncompliance if we determine 
that there has been a violation of the regulations in this part, any 
order of the Director, or any provision of your grant or other approval 
issued under this part. When issuing a notice of noncompliance, BOEM 
will serve you at your last known address.
    (c) A notice of noncompliance will tell you how you failed to 
comply with this part or any order of the Director, and/or the 
provisions of your grant or other approval, and will specify what you 
must do to correct the noncompliance and the time limits within which 
you must act.
    (d) Failure of an operator or grant holder to take the actions 
specified in a notice of noncompliance issued under this part within 
the time limit specified provides the basis for cancellation of the 
grant by the Secretary (Sec.  586.216).
    (e) BOEM may assess civil penalties, as authorized by section 24 of 
the OCS Lands Act, if you fail to comply with any provision of this 
part or any term of a grant or order issued under the authority of this 
part, after notice of such failure and expirations of any reasonable 
period allowed for corrective action. Civil penalties will be 
determined and assessed in accordance with the procedures set forth in 
30 CFR part 550, subpart N.
    (f) You may be subject to criminal penalties as authorized by 
section 24 of the OCS Lands Act.


Sec.  586.107  Who can hold a grant under this part?

    (a) You may hold a grant under this part if you can demonstrate 
that you have the technical and financial capabilities to conduct the 
activities authorized by the grant and you are a(n):
    (1) Citizen or national of the United States;
    (2) Alien lawfully admitted for permanent residence in the United 
States as defined in 8 U.S.C. 1101(a)(20);
    (3) Private, public, or municipal corporations organized under the 
laws of any State of the United States, the District of Columbia, or 
any territory or insular possession subject to U.S. jurisdiction;
    (4) Association of such citizens, nationals, resident aliens, or 
corporations;
    (5) Executive agency of the United States as defined in section 105 
of Title 5 of the U.S. Code;
    (6) State of the United States; or
    (7) Political subdivision of a State of the United States.
    (b) You may not hold a grant under this part or acquire an interest 
in a grant under this part if:
    (1) You or your principals are excluded or disqualified from 
participating in transactions covered by the Federal non-procurement 
debarment and suspension system (2 CFR part 1400), unless BOEM 
explicitly has approved an exception for this transaction;
    (2) BOEM determines or has previously determined after notice and 
opportunity for a hearing that you or your principals have failed to 
meet or exercise due diligence under any OCS lease or grant; or
    (3) BOEM determines or has previously determined after notice and 
opportunity for a hearing that you:
    (i) Remained in violation of the terms and conditions of any lease 
or grant issued under the OCS Lands Act for a period extending longer 
than 30 days (or such other period allowed for compliance) BSEE 
directed you to comply; and
    (ii) You took no action to correct the noncompliance within that 
time period.


Sec.  586.108  How do I show that I am qualified to be a grant holder?

    (a) You must demonstrate your technical and financial capability to 
construct, operate, maintain, and terminate/decommission projects for 
which you are requesting authorization. Documentation can include:
    (1) Descriptions of international or domestic experience with 
renewable energy projects or other types of electric-energy-related 
projects; and
    (2) information establishing access to sufficient capital to carry 
out development.
    (b) An individual must submit a written statement of citizenship 
status attesting to U.S. citizenship. It does not need to be notarized 
nor give the age of individual. A resident alien may submit a photocopy 
of the U.S. Citizenship and Immigration Services form evidencing legal 
status of the resident alien.
    (c) A corporation or association must submit evidence, as specified 
in the table in paragraph (d) of this section, acceptable to BOEM that:
    (1) It is qualified to hold grants under this part;
    (2) It is authorized to conduct business under the laws of its 
State;
    (3) It is authorized to hold grants on the OCS under the operating 
rules of its business; and
    (4) The persons holding the titles listed are authorized to bind 
the corporation or association when conducting business with BOEM.
    (d) Acceptable evidence under paragraph (c) of this section 
includes, but is not limited to the following:

----------------------------------------------------------------------------------------------------------------
 Requirements to qualify to hold grants on
                 the OCS:                       Corp.     Ltd. prtnsp.  Gen. prtnsp.       LLC          Trust
----------------------------------------------------------------------------------------------------------------
(1) Original certificate or certified copy           XX   ............  ............  ............  ............
 from the State of incorporation stating
 the name of the corporation exactly as it
 must appear on all legal documents.
(2) Certified statement by Secretary/                XX   ............  ............  ............  ............
 Assistant Secretary over corporate seal,
 certifying that the corporation is
 authorized to hold OCS grants.

[[Page 6471]]

 
(3) Evidence of authority of titled                  XX   ............  ............  ............  ............
 positions to bind corporation, certified
 by Secretary/Assistant Secretary over
 corporate seal, including the following:
    (i) Certified copy of resolution of     ............  ............  ............  ............  ............
     the board of directors with titles of
     officers authorized to bind
     corporation.
    (ii) Certified copy of resolutions      ............  ............  ............  ............  ............
     granting corporate officer authority
     to issue a power of attorney.
    (iii) Certified copy of power of        ............  ............  ............  ............  ............
     attorney or certified copy of
     resolution granting power of
     attorney.
(4) Original certificate or certified copy  ............           XX            XX            XX   ............
 of partnership or organization paperwork
 registering with the appropriate State
 official.
(5) Copy of articles of partnership or      ............           XX            XX            XX   ............
 organization evidencing filing with
 appropriate Secretary of State, certified
 by Secretary/Assistant Secretary of
 partnership or member or manager of LLC.
(6) Original certificate or certified copy  ............           XX            XX            XX   ............
 evidencing State where partnership or LLC
 is registered. Statement of authority to
 hold OCS leases, certified by Secretary/
 Assistant Secretary, OR original
 paperwork registering with the
 appropriate State official.
(7) Statements from each partner or LLC     ............           XX            XX            XX   ............
 member indicating the following:
    (i) If a corporation or partnership,    ............  ............  ............  ............  ............
     statement of State of organization
     and authorization to hold OCS grants,
     certified by Secretary/Assistant
     Secretary over corporate seal, if a
     corporation.
    (ii) If an individual, a statement of   ............  ............  ............  ............  ............
     citizenship.
(8) Statement from general partner,         ............           XX   ............  ............  ............
 certified by Secretary/Assistant
 Secretary that:
    (i) Each individual limited partner is  ............  ............  ............  ............  ............
     a U.S. citizen and;
    (ii) Each corporate limited partner or  ............  ............  ............  ............  ............
     other entity is incorporated or
     formed and organized under the laws
     of a U.S. State or territory.
(9) Evidence of authority to bind           ............           XX            XX            XX   ............
 partnership or LLC, if not specified in
 partnership agreement, articles of
 organization, or LLC regulations, i.e.,
 certificates of authority from Secretary/
 Assistant Secretary reflecting authority
 of officers.
(10) Listing of members of LLC certified    ............  ............  ............           XX   ............
 by Secretary/Assistant Secretary or any
 member or manager of LLC.
(11) Copy of trust agreement or document    ............  ............  ............  ............           XX
 establishing the trust and all
 amendments, properly certified by the
 trustee with reference to where the
 original documents are filed.
(12) Statement indicating the law under     ............  ............  ............  ............           XX
 which the trust is established and that
 the trust is authorized to hold OCS
 grants.
----------------------------------------------------------------------------------------------------------------

    (e) A local, State, or Federal executive entity must submit a 
written statement that:
    (1) It is qualified to hold grants under this part; and
    (2) The person(s) acting on behalf of the entity is authorized to 
bind the entity when conducting business with us.
    (f) BOEM may require you to submit additional information at any 
time considering your bid or request for a noncompetitive grant.


Sec.  586.109  When must I notify BOEM if an action has been filed 
alleging that I am insolvent or bankrupt?

    You must notify BOEM within 3-business days after you learn of any 
action filed alleging that you are insolvent or bankrupt.


Sec.  586.110  When must I notify BOEM of mergers, name changes, or 
changes of business form?

    You must notify BOEM in writing of any merger, name change, or 
change of business form. You must notify BOEM as soon as practicable 
following the merger, name change, or change in business form, but no 
later than 120 days after the earliest of either the effective date, or 
the date of filing the change or action with the Secretary of the State 
or other authorized official in the State of original registry.


Sec.  586.111  How do I submit plans, applications, or notices required 
by this part?

    (a) You must submit all plans, applications, or notices required by 
this part to BOEM at the following address: Office of Renewable Energy 
Programs, 45600 Woodland Road, Sterling, VA 20166.
    (b) Unless otherwise stated, you must submit one paper copy and one 
electronic copy of all plans, applications, or notices required by this 
part.


Sec.  586.112  When and how does BOEM charge me processing fees on a 
case-by-case basis?

    (a) BOEM will charge a processing fee on a case-by-case basis under 
the procedures in this section with regard to any application or 
request under this part if we decide at any time that the preparation 
of a particular document or study is necessary for the application or 
request and it will have a unique processing cost, such as the 
preparation of an environmental assessment (EA) or environmental impact 
statement (EIS).
    (1) Processing costs will include contract oversight and efforts to 
review and approve documents prepared by contractors, whether the 
contractor is paid directly by the applicant or through BOEM.
    (2) We may apply a standard overhead rate to direct processing 
costs.
    (b) We will assess the ongoing processing fee for each individual 
application or request according to the following procedures:

[[Page 6472]]

    (1) Before we process your application or request, we will give you 
a written estimate of the proposed fee based on reasonable processing 
costs.
    (2) You may comment on the proposed fee.
    (3) You may:
    (i) Ask for our approval to perform, or to directly pay a 
contractor to perform, all or part of any document, study, or other 
activity according to standards we specify, thereby reducing our costs 
for processing your application or request; or
    (ii) Ask to pay us to perform, or contract for, all or part of any 
document, study, or other activity.
    (4) We will then give you the final estimate of the processing fee 
amount with payment terms and instructions after considering your 
comments and any BOEM-approved work you will do.
    (i) If we encounter higher or lower processing costs than 
anticipated, we will re-estimate our reasonable processing costs 
following the procedures in paragraphs (b)(1) through (4) of this 
section, but we will not stop ongoing processing unless you do not pay 
in accordance with paragraph (b)(5) of this section.
    (ii) Once processing is complete, we will refund to you the amount 
of money that we did not spend on processing costs.
    (5)(i) Consistent with the payment and billing terms provided in 
the final estimate, we will periodically estimate what our reasonable 
processing costs will be for a specific period and will bill you for 
that period. Payment is due to us 30 days after you receive your bill. 
We will stop processing your document if you do not pay the bill by the 
date payment is due.
    (ii) If a periodic payment turns out to be more or less than our 
reasonable processing costs for the period, we will adjust the next 
billing accordingly or make a refund. Do not deduct any amount from a 
payment without our prior written approval.
    (6) You must pay the entire fee before we will issue the final 
document or take final action on your application or request.
    (7) You may appeal our estimated processing costs in accordance 
with the regulations in 43 CFR part 4. We will not process the document 
further until the appeal is resolved, unless you pay the fee under 
protest while the appeal is pending. If the appeal results in a 
decision changing the proposed fee, we will adjust the fee in 
accordance with paragraph (b)(5)(ii) of this section. If we adjust the 
fee downward, we will not pay interest.


Sec.  586.113  Definitions.

    Terms used in this part have the meanings as defined in this 
section:
    Affected local government means with respect to any activities 
proposed, conducted, or approved under this part, any locality--
    (1) That is, or is proposed to be, the site of gathering, 
transmitting, or distributing electricity or other energy product, or 
is otherwise receiving, processing, refining, or transshipping product, 
or services derived from activities approved under this part;
    (2) That is used, or is proposed to be used, as a support base for 
activities approved under this part; or
    (3) In which there is a reasonable probability of significant 
effect on land or water uses from activities approved under this part.
    Affected State means with respect to any activities proposed, 
conducted, or approved under this part, any coastal State--
    (1) That is, or is proposed to be, the site of gathering, 
transmitting, or distributing energy or is otherwise receiving, 
processing, refining, or transshipping products, or services derived 
from activities approved under this part;
    (2) That is used, or is scheduled to be used, as a support base for 
activities approved under this part; or
    (3) In which there is a reasonable probability of significant 
effect on land or water uses from activities approved under this part.
    Alternate Use refers to the energy- or marine-related use of an 
existing OCS facility for activities not otherwise authorized by this 
part.
    Alternate Use RUE means a right-of-use and easement issued for 
activities authorized under this part.
    Archaeological resource means any material remains of human life or 
activities that are at least 50 years of age and that are of 
archaeological interest (i.e., which are capable of providing 
scientific or humanistic understanding of past human behavior, cultural 
adaptation, and related topics through the application of scientific or 
scholarly techniques, such as controlled observation, contextual 
measurement, controlled collection, analysis, interpretation, and 
explanation).
    BOEM means Bureau of Ocean Energy Management of the Department of 
the Interior.
    BSEE means Bureau of Safety and Environmental Enforcement of the 
Department of the Interior.
    Decommissioning means removing BOEM and BSEE approved facilities 
and returning the site of the grant to a condition that meets the 
requirements of this part.
    Director means the Director of the Bureau of Ocean Energy 
Management (BOEM), of the Department of the Interior, or an official 
authorized to act on the Director's behalf.
    Facility means an installation that is permanently or temporarily 
attached to the seabed of the OCS. Facilities include any structures; 
devices; appurtenances; gathering, transmission, and distribution 
cables; pipelines; and permanently moored vessels. Any group of OCS 
installations interconnected with walkways, or any group of 
installations that includes a central or primary installation with one 
or more satellite or secondary installations, is a single facility. 
BOEM and BSEE may decide that the complexity of the installations 
justifies their classification as separate facilities.
    Governor means the Governor of a State or the person or entity 
lawfully designated by or under State law to exercise the powers 
granted to a Governor.
    Grant means an alternate use right-of-use and easement issued under 
the provisions of this part.
    Human environment means the physical, social, and economic 
components, conditions, and factors that interactively determine the 
state, condition, and quality of living conditions, employment, and 
health of those affected, directly or indirectly, by activities 
occurring on the OCS.
    Lease means an agreement authorizing the use of a designated 
portion of the OCS for activities allowed under 30 CFR part 585. The 
term also means the area covered by that agreement, when the context 
requires.
    Lessee means the holder of a lease, a BOEM-approved assignee, and, 
when describing the conduct required of parties engaged in activities 
on the lease, it also refers to the operator and all persons authorized 
by the holder of the lease or operator to conduct activities on the 
lease.
    Income, unless clearly specified to the contrary, refers to the 
money received by the project owner or holder of the lease or grant 
issued under this part. The term does not mean that project receipts 
exceed project expenses.
    Marine environment means the physical, atmospheric, and biological 
components, conditions, and factors that interactively determine the 
productivity, state, condition, and quality of the marine ecosystem. 
These include the waters of the high seas, the contiguous zone, 
transitional and intertidal areas, salt marshes, and

[[Page 6473]]

wetlands within the coastal zone and on the OCS.
    Natural resources include, without limiting the generality thereof, 
renewable energy, oil, gas, and all other minerals (as defined in 
section 2(q) of the OCS Lands Act), and marine animal and marine plant 
life.
    Operator means the individual, corporation, or association having 
control or management of activities on the grant under this part. The 
operator may be a grant holder or a contractor designated by the holder 
of a grant under this part.
    Outer Continental Shelf (OCS) means all submerged lands lying 
seaward and outside of the area of lands beneath navigable waters, as 
defined in section 2 of the Submerged Lands Act (43 U.S.C. 1301), whose 
subsoil and seabed appertain to the United States and are subject to 
its jurisdiction and control.
    Person means, in addition to a natural person, an association 
(including partnerships and joint ventures); a Federal agency; a State; 
a political subdivision of a State; a Native American Tribal 
government; or a private, public, or municipal corporation.
    Project, for the purposes of defining the source of revenues to be 
shared, means an Alternate Use RUE on which the activities authorized 
under this part are conducted on the OCS. The term ``project'' may be 
used elsewhere in this rule to refer to these same authorized 
activities, the facilities used to conduct these activities, or to the 
geographic area of the project, i.e., the project area.
    Project area means the geographic surface leased, or granted, for 
the purpose of a specific project. If OCS acreage is granted for a 
project under some form of agreement other than a lease (i.e., a ROW, 
or RUE, or Alternate Use RUE issued under this part or 30 CFR part 
585), the Federal acreage granted would be considered the project area.
    Renewable Energy means energy resources other than oil and gas and 
minerals as defined in 30 CFR part 580. Such resources include, but are 
not limited to, wind, solar, and ocean waves, tides, and current.
    Revenues mean bonuses, rents, operating fees, and similar payments 
made in connection with a project. It does not include administrative 
fees such as those assessed for cost recovery, civil penalties, and 
forfeiture of financial assurance.
    Secretary means the Secretary of the Interior or an official 
authorized to act on the Secretary's behalf.
    Significant archaeological resource means an archaeological 
resource that meets the criteria of significance for eligibility for 
listing in the National Register of Historic Places, as defined in 36 
CFR 60.4 or its successor.
    We, us, and our refer to the Bureau of Ocean Energy Management of 
the Department of the Interior, or its possessive, depending on the 
context.
    You and your means an applicant, the operator or designated 
operator of an Alternate Use RUE, or an Alternate Use RUE grant holder 
under this part, or the designated agent of any of these, or the 
possessive of each, depending on the context. The terms you and your 
also include contractors and subcontractors of the entities specified 
in the preceding sentence.


Sec.  586.114  How will data and information obtained by BOEM under 
this part be disclosed to the public?

    (a) BOEM will make data and information available in accordance 
with the requirements and subject to the limitations of the Freedom of 
Information Act (FOIA) (5 U.S.C. 552) and the regulations contained in 
43 CFR part 2.
    (b) BOEM will not release such data and information that we have 
determined is exempt from disclosure under exemption 4 of FOIA. We will 
review such data and information and objections of the submitter to 
determine whether release at that time will result in substantial 
competitive harm or disclosure of trade secrets.
    (c) After considering any objections from the submitter, if we 
determine that release of such data and information will result in:
    (1) No substantial competitive harm or disclosure of trade secrets, 
then the data and information will be released.
    (2) Substantial competitive harm or disclosure of trade secrets, 
then the data and information will not be released at that time but 
will be subject to further review every 3 years thereafter.


Sec.  586.115  Paperwork Reduction Act statements--information 
collection.

    (a) The Office of Management and Budget (OMB) has approved the 
information collection requirements in this part under 44 U.S.C. 3501, 
et seq., and assigned OMB Control Number 1010-0176. The table in 
paragraph (e) of this section lists the subparts in the rule requiring 
the information and its title, summarizes the reasons for collecting 
the information, and summarizes how BOEM uses the information.
    (b) Respondents are primarily Alternate Use RUE grant holders and 
operators. The requirement to respond to the information collection in 
this part is mandated under subsection 8(p) of the OCS Lands Act. Some 
responses are also required to obtain or retain a benefit, or may be 
voluntary.
    (c) The Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) 
requires us to inform the public that an agency 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.
    (d) Comments regarding any aspect of the collections of information 
under this part, including suggestions for reducing the burden, should 
be sent to the Information Collection Clearance Officer, Bureau of 
Ocean Energy Management, 45600 Woodland Road, Sterling, VA 20166.
    (e) BOEM is collecting this information for the reasons given in 
the following table:

------------------------------------------------------------------------
                                 Reasons for collecting information and
 30 CFR 586 subpart and title                   how used
------------------------------------------------------------------------
(1) Subpart A--General         To inform BOEM of actions taken to comply
 Provisions.                    with general operational requirements on
                                the OCS. To ensure that operations on
                                the OCS meet statutory and regulatory
                                requirements, are safe and protect the
                                environment, and result in diligent
                                development on OCS leases.
(2) Subpart B--Issuance of     To enable BOEM to review information
 Alternate Use RUEs for         regarding the design, installation, and
 Energy- and Marine-Related     operation of Alternate Use RUEs on the
 Activities Using Existing      OCS, to ensure that Alternate Use RUE
 OCS Facilities.                operations are safe and protect the
                                human, marine, and coastal environment.
                                To ensure adherence with other Federal
                                laws, these regulations, the Alternate
                                Use RUE grant, and, where applicable,
                                the approved plan.
------------------------------------------------------------------------


[[Page 6474]]

Sec. Sec.  586.116-586.117  [Reserved]


Sec.  586.118  What are my appeal rights?

    (a) Any party adversely affected by a BOEM official's final 
decision or order issued under the regulations of this part may appeal 
that decision or order to the Interior Board of Land Appeals. The 
appeal must conform with the procedures found in part 590 of this 
chapter and in 43 CFR part 4, subpart E. Appeal of a final decision for 
bid acceptance is covered under paragraph (c) of this section.
    (b) A decision will remain in full force and effect during the 
period in which an appeal may be filed and during an appeal, unless a 
stay is granted pursuant to 43 CFR part 4.
    (c) Our decision on a bid is the final action of the Department, 
except that an unsuccessful bidder may apply for reconsideration by the 
Director.
    (1) A bidder whose bid we reject may file a written request for 
reconsideration with the Director within 15 days of the date of the 
receipt of the notice of rejection, accompanied by a statement of 
reasons, with one copy to us. The Director will respond in writing 
either affirming or reversing the decision.
    (2) The delegation of review authority given to the Office of 
Hearings and Appeals does not apply to decisions on high bids for 
leases or grants under this part.

Subpart B--Issuance of Alternate Use RUEs for Energy- and Marine-
Related Activities Using Existing OCS Facilities

    Requesting an Alternate Use RUE


Sec.  586.200  What must I do before I request an Alternate Use RUE?

    If you are not the owner of the existing facility on the OCS and 
the lessee of the area in which the facility is located, you must 
contact the lessee and owner of the facility and reach a preliminary 
agreement as to the proposed activity for the use of the existing 
facility.


Sec.  586.201  How do I request an Alternate Use RUE?

    To request an Alternate Use RUE, you must submit to BOEM all of the 
following:
    (a) The name, address, email address, and phone number of an 
authorized representative.
    (b) A summary of the proposed activities for the use of an existing 
OCS facility, including:
    (1) The type of activities that would involve the use of the 
existing OCS facility;
    (2) A description of the existing OCS facility, including a map 
providing its location on the lease block;
    (3) The names of the owner of the existing OCS facility, the 
operator, the lessee, and any owner of operating rights on the lease at 
which the facility is located;
    (4) A description of additional structures or equipment that will 
be required to be located on or in the vicinity of the existing OCS 
facility in connection with the proposed activities;
    (5) A statement indicating whether any of the proposed activities 
are intended to occur before existing activities on the OCS facility 
have ceased; and
    (6) A statement describing how existing activities at the OCS 
facility will be affected if proposed activities are to occur at the 
same time as existing activities at the OCS facility.
    (c) A statement affirming that the proposed activities sought to be 
approved under this subpart are not otherwise authorized by other 
provisions in this subchapter or any other Federal law.
    (d) Evidence that you meet the requirements of Sec.  586.107, as 
required by Sec.  586.108.
    (e) The signatures of the applicant, the owner of the existing OCS 
facility, and the lessee of the area in which the existing facility is 
located.


Sec.  586.202  How will BOEM decide whether to issue an Alternate Use 
RUE?

    (a) We will consider requests for an Alternate Use RUE on a case-
by-case basis. In considering such requests, we will consult with 
relevant Federal agencies and evaluate whether the proposed activities 
involving the use of an existing OCS facility can be conducted in a 
manner that:
    (1) Ensures safety and minimizes adverse effects to the coastal and 
marine environments, including their physical, atmospheric, and 
biological components, to the extent practicable;
    (2) Does not inhibit or restrain orderly development of OCS mineral 
or energy resources;
    (3) Avoids serious harm or damage to, or waste of, any natural 
resource (including OCS mineral deposits and oil, gas, and sulfur 
resources in areas leased or not leased), any life (including fish and 
other aquatic life), or property (including sites, structures, or 
objects of historical or archaeological significance);
    (4) Is otherwise consistent with subsection 8(p) of the OCS Lands 
Act; and
    (5) DOI can effectively regulate.
    (b) Based on the evaluation that we perform under paragraph (a) of 
this section, BOEM may authorize, reject, or authorize with 
modifications or stipulations, the proposed activity.


Sec.  586.203  What process will BOEM use for competitively offering an 
Alternate Use RUE?

    (a) An Alternate Use RUE must be issued on a competitive basis 
unless BOEM determines, after public notice of the proposed Alternate 
Use RUE, that there is no competitive interest.
    (b) We will issue a public notice in the Federal Register to 
determine if there is competitive interest in using the proposed 
facility for alternate use activities. BOEM will specify a time period 
for members of the public to express competitive interest.
    (c) If we receive indications of competitive interest within the 
published timeframe, we will proceed with a competitive offering. As 
part of such competitive offering, each competing applicant must submit 
a description of the types of activities proposed for the existing 
facility, as well as satisfactory evidence that the competing applicant 
qualifies to hold a grant on the OCS, as required in Sec. Sec.  586.107 
and 586.108, by a date we specify. We may request additional 
information from competing applicants, as necessary, to adequately 
evaluate the competing proposals.
    (d) We will evaluate all competing proposals to determine whether:
    (1) The proposed activities are compatible with existing activities 
at the facility; and
    (2) BOEM and BSEE have the expertise and resources available to 
regulate the activities effectively.
    (e) We will evaluate all proposals under the requirements of NEPA, 
CZMA, and other applicable laws.
    (f) Following our evaluation, we will select one or more acceptable 
proposals for activities involving the alternate use of an existing OCS 
facility, notify the competing applicants, and submit each acceptable 
proposal to the lessee and owner of the existing OCS facility. If the 
lessee and owner of the facility agree to accept a proposal, we will 
proceed to issue an Alternate Use RUE. If the lessee and owner of the 
facility are unwilling to accept any of the proposals that we deem 
acceptable, we will not issue an Alternate Use RUE.


Sec.  Sec.  586.204-586.209  [Reserved]

Alternate Use RUE Administration


Sec.  586.210  How long may I conduct activities under an Alternate Use 
RUE?

    (a) We will establish on a case-by-case basis, and set forth in the 
Alternate Use RUE, the length of time for which you are authorized to 
conduct activities approved in your Alternate Use RUE instrument.

[[Page 6475]]

    (b) In establishing this term, BOEM will consider the size and 
scale of the proposed alternate use activities, the type of alternate 
use activities, and any other relevant considerations.
    (c) BOEM may authorize renewal of Alternate Use RUEs at its 
discretion.


Sec.  586.211  What payments are required for an Alternate Use RUE?

    We will establish rental or other payments for an Alternate Use RUE 
on a case-by-case basis, as set forth in the Alternate Use RUE grant, 
depending on our assessment of the following factors:
    (a) The effect on the original OCS Lands Act approved activity;
    (b) The size and scale of the proposed alternate use activities;
    (c) The income, if any, expected to be generated from the proposed 
alternate use activities; and
    (d) The type of alternate use activities.


Sec.  586.212  What financial assurance is required for an Alternate 
Use RUE?

    (a) The holder of an Alternate Use RUE will be required to secure 
financial assurances in an amount determined by BOEM that is sufficient 
to cover all obligations under the Alternate Use RUE, including 
decommissioning obligations, and must retain such financial assurance 
amounts until all obligations have been fulfilled, as determined by 
BOEM.
    (b) We may revise financial assurance amounts, as necessary, to 
ensure that there is sufficient financial assurance to secure all 
obligations under the Alternate Use RUE.
    (c) We may reduce the amount of the financial assurance that you 
must retain if it is not necessary to cover existing obligations under 
the Alternate Use RUE.


Sec.  586.213  Is an Alternate Use RUE assignable?

    (a) BOEM may authorize assignment of an Alternate Use RUE.
    (b) To request assignment of an Alternate Use RUE, you must submit 
a written request for assignment that includes the following 
information:
    (1) BOEM-assigned Alternate Use RUE number;
    (2) The names of both the assignor and the assignee, if applicable;
    (3) The names and telephone numbers of the contacts for both the 
assignor and the assignee;
    (4) The names, titles, and signatures of the authorizing officials 
for both the assignor and the assignee;
    (5) A statement affirming that the owner of the existing OCS 
facility and lessee of the lease in which the facility is located 
approve of the proposed assignment and assignee;
    (6) A statement that the assignee agrees to comply with and to be 
bound by the terms and conditions of the Alternate Use RUE;
    (7) Evidence required by Sec.  586.108 that the assignee satisfies 
the requirements of Sec.  586.107; and
    (8) A statement on how the assignee will comply with the financial 
assurance requirements set forth in the Alternate Use RUE.
    (c) The assignment takes effect on the date we approve your 
request.
    (d) The assignor is liable for all obligations that accrue under an 
Alternate Use RUE before the date we approve your assignment request. 
An assignment approval by BOEM does not relieve the assignor of 
liability for accrued obligations that the assignee, or a subsequent 
assignee, fails to perform.
    (e) The assignee and each subsequent assignee are liable for all 
obligations that accrue under an Alternate Use RUE after the date we 
approve the assignment request.


Sec.  586.214  When will BOEM suspend an Alternate Use RUE?

    (a) BOEM may suspend an Alternate Use RUE if:
    (1) necessary to comply with judicial decrees; or
    (2) necessary for reasons of national security or defense.
    (b) A suspension will extend the term of your Alternate Use RUE 
grant for the period of the suspension.


Sec.  586.215  How do I relinquish an Alternate Use RUE?

    (a) You may voluntarily surrender an Alternate Use RUE by 
submitting a written request to us that includes the following:
    (1) The name, address, email address, and phone number of an 
authorized representative;
    (2) The reason you are requesting relinquishment of the Alternate 
Use RUE;
    (3) BOEM-assigned Alternate Use RUE number;
    (4) The name of the associated OCS facility, its owner, and the 
lessee for the lease in which the OCS facility is located;
    (5) The name, title, and signature of your authorizing official 
(which must match exactly the name, title, and signature in the BOEM 
qualification records); and
    (6) A statement that you will adhere to the decommissioning 
requirements in the Alternate Use RUE.
    (b) We will not approve your relinquishment request until you have 
paid all outstanding rentals (or other payments) and fines.
    (c) The relinquishment takes effect on the date we approve your 
request.


Sec.  586.216  When will an Alternate Use RUE be cancelled?

    The Secretary may cancel an Alternate Use RUE if it is determined, 
after notice and opportunity to be heard:
    (a) You no longer qualify to hold an Alternate Use RUE;
    (b) You failed to provide any additional financial assurance 
required by BOEM, replace or provide additional coverage for a de-
valued bond, or replace a lapsed or forfeited bond within the 
prescribed time period;
    (c) Continued activity under the Alternate Use RUE is likely to 
cause serious harm or damage to natural resources; life (including 
human and wildlife); property; the marine, coastal, or human 
environment; or sites, structures, or objects of historical or 
archaeological significance;
    (d) Continued activity under the Alternate Use RUE is determined to 
be adversely impacting the original OCS Lands Act approved activities 
on the existing OCS facility;
    (e) You failed to comply with any of the terms and conditions of 
your approved Alternate Use RUE or your approved plan; or
    (f) You otherwise failed to comply with applicable laws or 
regulations.


Sec.  586.217  [Reserved]


Sec.  586.218  Who is responsible for decommissioning an OCS facility 
subject to an Alternate Use RUE?

    (a) The holder of an Alternate Use RUE is responsible for all 
decommissioning obligations that accrue following the issuance of the 
Alternate Use RUE and which pertain to the Alternate Use RUE.
    (b) The lessee under the lease originally issued under 30 CFR 
chapter V will remain responsible for decommissioning obligations that 
accrued before issuance of the Alternate Use RUE, as well as for 
decommissioning obligations that accrue following issuance of the 
Alternate Use RUE to the extent associated with continued activities 
authorized under other parts of this title.


Sec.  586.219  What are decommissioning requirements for an Alternate 
Use RUE?

    (a) Decommissioning requirements will be determined by BOEM and 
BSEE on a case-by-case basis and will be included in the terms of the 
Alternate Use RUE.
    (b) Decommissioning activities must be completed within 1 year of 
termination of the Alternate Use RUE.

[[Page 6476]]

    (c) If you fail to satisfy all decommissioning requirements within 
the prescribed time period, BOEM will call for the forfeiture of your 
bond or other financial guarantee, and you will remain liable for all 
accidents or damages that might result from such failure.

[FR Doc. 2023-00871 Filed 1-30-23; 8:45 am]
BILLING CODE 4310-MR-P