CFR 2012 Title30 Vol2 Part550

Subchapter BOFFSHORE
PART 550OIL AND GAS AND SUL- RIGHT-OF-USE AND EASEMENT

PHUR OPERATIONS IN THE OUTER 550.160 When will BOEM grant me a right-
CONTINENTAL SHELF of-use and easement, and what require-
ments must I meet?
550.161 What else must I submit with my ap-
Subpart AGeneral plication?
AUTHORITY AND DEFINITION OF TERMS 550.162 May I continue my right-of-use and
easement after the termination of any
Sec. lease on which it is situated?
550.101 Authority and applicability. 550.163 If I have a State lease, will BOEM
550.102 What does this part do? grant me a right-of-use and easement?
550.103 Where can I find more information 550.164 If I have a State lease, what condi-
about the requirements in this part? tions apply for a right-of-use and ease-
550.104 How may I appeal a decision made ment?
under BOEM regulations? 550.165 If I have a State lease, what fees do
550.105 Definitions. I have to pay for a right-of-use and ease-
ment?
PERFORMANCE STANDARDS 550.166 If I have a State lease, what surety
550.115 How do I determine well bond must I have for a right-of-use and
producibility? easement?
550.116 How do I determine producibility if PRIMARY LEASE REQUIREMENTS, LEASE TERM
my well is in the Gulf of Mexico? EXTENSIONS, AND LEASE CANCELLATIONS
550.117 How does a determination of well
producibility affect royalty status? 550.181 When may the Secretary cancel my
550.118 [Reserved] lease and when am I compensated for
550.119 Will BOEM approve subsurface gas cancellation?
storage? 550.182 When may the Secretary cancel a
550.120550.121 [Reserved] lease at the exploration stage?
550.122 What effect does subsurface storage 550.183 When may BOEM or the Secretary
have on the lease term? extend or cancel a lease at the develop-
550.123 Will BOEM allow gas storage on un- ment and production stage?
leased lands? 550.184 What is the amount of compensation
for lease cancellation?
FEES 550.185 When is there no compensation for a
lease cancellation?
550.125 Service fees.
550.126 Electronic payment instructions. INFORMATION AND REPORTING REQUIREMENTS
INSPECTION OF OPERATIONS 550.186 What reporting information and re-
port forms must I submit?
550.130 [Reserved] 550.187550.193 [Reserved]
550.194 How must I protect archaeological
DISQUALIFICATION
resources?
550.135 What will BOEM do if my operating 550.195 [Reserved]
performance is unacceptable? 550.196 Reimbursements for reproduction
550.136 How will BOEM determine if my op- and processing costs.
erating performance is unacceptable? 550.197 Data and information to be made
available to the public or for limited in-
SPECIAL TYPES OF APPROVALS spection.
550.140 When will I receive an oral approval? REFERENCES
550.141 May I ever use alternate procedures
or equipment? 550.198 [Reserved]
550.142 How do I receive approval for depar- 550.199 Paperwork Reduction Act state-
tures? mentsinformation collection.
550.143 How do I designate an operator?
550.144 How do I designate a new operator Subpart BPlans and Information
when a designation of operator termi-
GENERAL INFORMATION
nates?
550.145 How do I designate an agent or a 550.200 Definitions.
local agent? 550.201 What plans and information must I
550.146 Who is responsible for fulfilling submit before I conduct any activities on
erowe on DSK2VPTVN1PROD with
leasehold obligations? my lease or unit?
297
VerDate Mar<15>2010 13:23 Aug 17, 2012 Jkt 226121 PO 00000 Frm 00307 Fmt 8010 Sfmt 8010 Y:\SGML\226121.XXX 226121
Pt. 550 30 CFR Ch. V (7112 Edition)
550.202 What criteria must the Exploration REVIEW AND DECISION PROCESS FOR THE EP
Plan (EP), Development and Production
550.231 After receiving the EP, what will
Plan (DPP), or Development Operations
BOEM do?
Coordination Document (DOCD) meet?
550.232 What actions will BOEM take after
550.203 Where can wells be located under an
the EP is deemed submitted?
EP, DPP, or DOCD?
550.233 What decisions will BOEM make on
550.204550.205 [Reserved]
the EP and within what timeframe?
550.206 How do I submit the EP, DPP, or
550.234 How do I submit a modified EP or re-
DOCD?
submit a disapproved EP, and when will
ANCILLARY ACTIVITIES BOEM make a decision?
550.235 If a State objects to the EPs coastal
550.207 What ancillary activities may I con- zone consistency certification, what can
duct? I do?
550.208 If I conduct ancillary activities,
what notices must I provide? CONTENT OF DEVELOPMENT AND PRODUCTION
550.209 What is the BOEM review process for PLANS (DPP) AND DEVELOPMENT OPER-
the notice? ATIONS COORDINATION DOCUMENTS (DOCD)
550.210 If I conduct ancillary activities,
what reporting and data/information re- 550.241 What must the DPP or DOCD in-
tention requirements must I satisfy? clude?
550.242 What information must accompany
CONTENTS OF EXPLORATION PLANS (EP) the DPP or DOCD?
550.243 What general information must ac-
550.211 What must the EP include?
company the DPP or DOCD?
550.212 What information must accompany
550.244 What geological and geophysical
the EP?
(G&G) information must accompany the
550.213 What general information must ac-
DPP or DOCD?
company the EP?
550.245 What hydrogen sulfide (H2S) infor-
550.214 What geological and geophysical
mation must accompany the DPP or
(G&G) information must accompany the
DOCD?
EP?
550.246 What mineral resource conservation
550.215 What hydrogen sulfide (H2S) infor-
mation must accompany the EP? information must accompany the DPP or
550.216 What biological, physical, and socio- DOCD?
economic information must accompany 550.247 What biological, physical, and socio-
the EP? economic information must accompany
550.217 What solid and liquid wastes and dis- the DPP or DOCD?
charges information and cooling water 550.248 What solid and liquid wastes and dis-
intake information must accompany the charges information and cooling water
EP? intake information must accompany the
550.218 What air emissions information DPP or DOCD?
must accompany the EP? 550.249 What air emissions information
550.219 What oil and hazardous substance must accompany the DPP or DOCD?
spills information must accompany the 550.250 What oil and hazardous substance
EP? spills information must accompany the
550.220 If I propose activities in the Alaska DPP or DOCD?
OCS Region, what planning information 550.251 If I propose activities in the Alaska
must accompany the EP? OCS Region, what planning information
550.221 What environmental monitoring in- must accompany the DPP?
formation must accompany the EP? 550.252 What environmental monitoring in-
550.222 What lease stipulations information formation must accompany the DPP or
must accompany the EP? DOCD?
550.223 What mitigation measures informa- 550.253 What lease stipulations information
tion must accompany the EP? must accompany the DPP or DOCD?
550.224 What information on support ves- 550.254 What mitigation measures informa-
sels, offshore vehicles, and aircraft you tion must accompany the DPP or DOCD?
will use must accompany the EP? 550.255 What decommissioning information
550.225 What information on the onshore must accompany the DPP or DOCD?
support facilities you will use must ac- 550.256 What related facilities and oper-
company the EP? ations information must accompany the
550.226 What Coastal Zone Management Act DPP or DOCD?
(CZMA) information must accompany 550.257 What information on the support
the EP? vessels, offshore vehicles, and aircraft
550.227 What environmental impact analysis you will use must accompany the DPP or
(EIA) information must accompany the DOCD?
EP? 550.258 What information on the onshore
550.228 What administrative information support facilities you will use must ac-
must accompany the EP? company the DPP or DOCD?
298
Ocean Energy Management, Interior Pt. 550
550.259 What sulphur operations informa- 550.303 Facilities described in a new or re-
tion must accompany the DPP or DOCD? vised Exploration Plan or Development
550.260 What Coastal Zone Management Act and Production Plan.
(CZMA) information must accompany 550.304 Existing facilities.
the DPP or DOCD?
550.261 What environmental impact analysis Subparts D I [Reserved]
(EIA) information must accompany the
DPP or DOCD? Subpart JPipelines and Pipeline Rights of
550.262 What administrative information Way
must accompany the DPP or DOCD?
550.1011 Bond requirements for pipeline
REVIEW AND DECISION PROCESS FOR THE DPP right-of-way holders.
OR DOCD
550.266 After receiving the DPP or DOCD, Subpart KOil and Gas Production
what will BOEM do? Requirements
550.267 What actions will BOEM take after
WELL TESTS AND SURVEYS
the DPP or DOCD is deemed submitted?
550.268 How does BOEM respond to rec- 550.1153 When must I conduct a static
ommendations? bottomhole pressure survey?
550.269 How will BOEM evaluate the envi-
ronmental impacts of the DPP or DOCD? CLASSIFYING RESERVOIRS
550.270 What decisions will BOEM make on 550.1154 How do I determine if my reservoir
the DPP or DOCD and within what time- is sensitive?
frame? 550.1155 What information must I submit for
550.271 For what reasons will BOEM dis- sensitive reservoirs?
approve the DPP or DOCD?
550.272 If a State objects to the DPPs or OTHER REQUIREMENTS
DOCDs coastal zone consistency certifi-
cation, what can I do? 550.1165 What must I do for enhanced recov-
550.273 How do I submit a modified DPP or ery operations?
DOCD or resubmit a disapproved DPP or 550.1166 What additional reporting is re-
DOCD? quired for developments in the Alaska
OCS Region?
POST-APPROVAL REQUIREMENTS FOR THE EP, 550.1167 What information must I submit
DPP, AND DOCD with forms and for approvals?
550.280 How must I conduct activities under Subparts LM [Reserved]
the approved EP, DPP, or DOCD?
550.281 What must I do to conduct activities Subpart NOuter Continental Shelf Civil
under the approved EP, DPP, or DOCD?
Penalties
550.282 Do I have to conduct post-approval
monitoring? OUTER CONTINENTAL SHELF LANDS ACT CIVIL
550.283 When must I revise or supplement PENALTIES
the approved EP, DPP, or DOCD?
550.284 How will BOEM require revisions to 550.1400 How does BOEM begin the civil pen-
the approved EP, DPP, or DOCD? alty process?
550.285 How do I submit revised and supple- 550.1401 Index table.
mental EPs, DPPs, and DOCDs? 550.1402 Definitions.
550.1403 What is the maximum civil pen-
CONSERVATION INFORMATION DOCUMENTS alty?
(CID) 550.1404 Which violations will BOEM review
550.296 When and how must I submit a CID for potential civil penalties?
or a revision to a CID? 550.1405 When is a case file developed?
550.297 What information must a CID con- 550.1406 When will BOEM notify me and pro-
tain? vide penalty information?
550.298 How long will BOEM take to evalu- 550.1407 How do I respond to the letter of
ate and make a decision on the CID? notification?
550.299 What operations require approval of 550.1408 When will I be notified of the Re-
the CID? viewing Officers decision?
550.1409 What are my appeal rights?
Subpart CPollution Prevention and FEDERAL OIL AND GAS ROYALTY MANAGEMENT
Control ACT CIVIL PENALTIES DEFINITIONS
550.300550.301 [Reserved] 550.1450 What definitions apply to this sub-
550.302 Definitions concerning air quality. part?
299
550.101 30 CFR Ch. V (7112 Edition)
PENALTIES AFTER A PERIOD TO CORRECT FINANCIAL SOLVENCY REQUIREMENTS
550.1451 What may BOEM do if I violate a 550.1495 How do I demonstrate financial sol-
statute, regulation, order, or lease term vency?
relating to a Federal oil and gas lease? 550.1496 How will BOEM determine if I am
550.1452 What if I correct the violation? financially solvent?
550.1453 What if I do not correct the viola- 550.1497 When will BOEM monitor my finan-
tion? cial solvency?
550.1454 How may I request a hearing on the
record on a Notice of Noncompliance? Subparts OS [Reserved]
550.1455 Does my request for a hearing on
the record affect the penalties? AUTHORITY: 30 U.S.C. 1751; 31 U.S.C. 9701; 43
550.1456 May I request a hearing on the U.S.C. 1334.
record regarding the amount of a civil SOURCE: 76 FR 64623, Oct. 18, 2011, unless
penalty if I did not request a hearing on otherwise noted.
the Notice of Noncompliance?
PENALTIES WITHOUT A PERIOD TO CORRECT Subpart AGeneral

550.1460 May I be subject to penalties with-
out prior notice and an opportunity to
AUTHORITY AND DEFINITION OF TERMS
correct?
550.101 Authority and applicability.
550.1461 How will BOEM inform me of viola-
tions without a period to correct? The Secretary of the Interior (Sec-
550.1462 How may I request a hearing on the retary) authorized the Bureau of Ocean
record on a Notice of Noncompliance re- Energy Management (BOEM) to regu-
garding violations without a period to late oil, gas, and sulphur exploration,
correct? development, and production oper-
550.1463 Does my request for a hearing on ations on the Outer Continental Shelf
the record affect the penalties?
(OCS). Under the Secretarys author-
550.1464 May I request a hearing on the
record regarding the amount of a civil ity, the Director requires that all oper-
penalty if I did not request a hearing on ations:
the Notice of Noncompliance? (a) Be conducted according to the
OCS Lands Act (OCSLA), the regula-
GENERAL PROVISIONS tions in this part, BOEM orders, the
550.1470 How does BOEM decide what the lease or right-of-way, and other appli-
amount of the penalty should be? cable laws, regulations, and amend-
550.1471 Does the penalty affect whether I ments; and
owe interest? (b) Conform to sound conservation
550.1472 How will the Office of Hearings and practice to preserve, protect, and de-
Appeals conduct the hearing on the velop mineral resources of the OCS to:
record?
(1) Make resources available to meet
550.1473 How may I appeal the Administra-
tive Law Judges decision?
the Nations energy needs;
550.1474 May I seek judicial review of the (2) Balance orderly energy resource
decision of the Interior Board of Land development with protection of the
Appeals? human, marine, and coastal environ-
550.1475 When must I pay the penalty? ments;
550.1476 Can BOEM reduce my penalty once (3) Ensure the public receives a fair
it is assessed? and equitable return on the resources
550.1477 How may BOEM collect the pen- of the OCS;
alty? (4) Preserve and maintain free enter-
CRIMINAL PENALTIES prise competition; and
(5) Minimize or eliminate conflicts
550.1480 May the United States criminally between the exploration, development,
prosecute me for violations under Fed- and production of oil and natural gas
eral oil and gas leases?
and the recovery of other resources.
BONDING REQUIREMENTS
550.102 What does this part do?
550.1490 What standards must my BOEM-
specified surety instrument meet? (a) 30 CFR part 550 contains the regu-
550.1491 How will BOEM determine the lations of the BOEM Offshore program
amount of my bond or other surety in- that govern oil, gas, and sulphur explo-
strument? ration, development, and production
300
Ocean Energy Management, Interior 550.105
operations on the OCS. When you con- (b) The following table of general ref-
duct operations on the OCS, you must erences shows where to look for infor-
submit requests, applications, and no- mation about these processes.
tices, or provide supplemental informa-
tion for BOEM approval.
TABLEWHERE TO FIND INFORMATION FOR CONDUCTING OPERATIONS
For information about Refer to
(1) Applications for permit to drill ................................................ 30 CFR 250, subpart D.

(2) Development and Production Plans (DPP) ........................... 30 CFR 550, subpart B.
(3) Downhole commingling .......................................................... 30 CFR 250, subpart K.
(4) Exploration Plans (EP) ........................................................... 30 CFR 550, subpart B.
(5) Flaring .................................................................................... 30 CFR 250, subpart K.
(6) Gas measurement ................................................................. 30 CFR 250, subpart L.
(7) Off-lease geological and geophysical permits ....................... 30 CFR 551.
(8) Oil spill financial responsibility coverage ............................... 30 CFR 553.
(9) Oil and gas production safety systems ................................. 30 CFR 250, subpart H.
(10) Oil spill response plans ........................................................ 30 CFR 254.
(11) Oil and gas well-completion operations ............................... 30 CFR 250, subpart E.
(12) Oil and gas well-workover operations ................................. 30 CFR 250, subpart F.
(13) Decommissioning Activities ................................................. 30 CFR 250, subpart Q.
(14) Platforms and structures ...................................................... 30 CFR 250, subpart I.
(15) Pipelines and Pipeline Rights-of-Way ................................. 30 CFR 250, subpart J and 30 CFR 550, subpart J.
(16) Sulphur operations ............................................................... 30 CFR 250, subpart P.
(17) Training ................................................................................ 30 CFR 250, subpart O.
(18) Unitization ............................................................................ 30 CFR 250, subpart M.
550.103 Where can I find more infor- tivity is, or is proposed to be, con-
mation about the requirements in ducted;
this part? (2) Which is, or is proposed to be, di-
BOEM may issue Notices to Lessees rectly connected by transportation fa-
and Operators (NTLs) that clarify, sup- cilities to any artificial island or in-
plement, or provide more detail about stallation or other device permanently
certain requirements. NTLs may also or temporarily attached to the seabed;
outline what you must provide as re- (3) Which is receiving, or according
quired information in your various sub- to the proposed activity, will receive
missions to BOEM. oil for processing, refining, or trans-
shipment that was extracted from the
550.104 How may I appeal a decision OCS and transported directly to such
made under BOEM regulations? State by means of vessels or by a com-
bination of means including vessels;
To appeal orders or decisions issued (4) Which is designated by the Sec-
under BOEM regulations in 30 CFR retary as a State in which there is a
parts 550 to 582, follow the procedures substantial probability of significant
in 30 CFR part 590. impact on or damage to the coastal,
550.105 Definitions. marine, or human environment, or a
State in which there will be significant
Terms used in this part will have the changes in the social, governmental, or
meanings given in the Act and as de- economic infrastructure, resulting
fined in this section: from the exploration, development, and
Act means the OCS Lands Act, as production of oil and gas anywhere on
amended (43 U.S.C. 1331 et seq.). the OCS; or
Affected State means with respect to (5) In which the Secretary finds that
any program, plan, lease sale, or other because of such activity there is, or
activity proposed, conducted, or ap- will be, a significant risk of serious
proved under the provisions of the Act, damage, due to factors such as pre-
any State: vailing winds and currents to the ma-
(1) The laws of which are declared, rine or coastal environment in the
under section 4(a)(2) of the Act, to be event of any oil spill, blowout, or re-
the law of the United States for the lease of oil or gas from vessels, pipe-
portion of the OCS on which such ac- lines, or other transshipment facilities.
301
550.105 30 CFR Ch. V (7112 Edition)
Air pollutant means any airborne and other costs. The Regional Director
agent or combination of agents for will verify the BACT on a case-by-case
which the Environmental Protection basis, and it may include reductions
Agency (EPA) has established, under achieved through the application of
section 109 of the Clean Air Act, na- processes, systems, and techniques for
tional primary or secondary ambient the control of each air pollutant.
air quality standards. Coastal environment means the phys-
Analyzed geological information means ical, atmospheric, and biological com-
data collected under a permit or a lease ponents, conditions, and factors that
that have been analyzed. Analysis may interactively determine the produc-
include, but is not limited to, identi- tivity, state, condition, and quality of
fication of lithologic and fossil con- the terrestrial ecosystem from the
tent, core analysis, laboratory analyses shoreline inward to the boundaries of
of physical and chemical properties, the coastal zone.
well logs or charts, results from forma- Coastal zone means the coastal waters
tion fluid tests, and descriptions of hy- (including the lands therein and there-
drocarbon occurrences or hazardous under) and the adjacent shorelands (in-
conditions. cluding the waters therein and there-
Ancillary activities mean those activi- under) strongly influenced by each
ties on your lease or unit that you: other and in proximity to the
(1) Conduct to obtain data and infor- shorelands of the several coastal
mation to ensure proper exploration or States. The coastal zone includes is-
development of your lease or unit; and lands, transition and intertidal areas,
(2) Can conduct without BOEM ap- salt marshes, wetlands, and beaches.
proval of an application or permit. The coastal zone extends seaward to
Archaeological interest means capable the outer limit of the U.S. territorial
of providing scientific or humanistic sea and extends inland from the shore-
understanding of past human behavior, lines to the extent necessary to control
cultural adaptation, and related topics shorelands, the uses of which have a di-
through the application of scientific or rect and significant impact on the
scholarly techniques, such as con- coastal waters, and the inward bound-
trolled observation, contextual meas- aries of which may be identified by the
urement, controlled collection, anal- several coastal States, under the au-
ysis, interpretation, and explanation. thority in section 305(b)(1) of the Coast-
Archaeological resource means any al Zone Management Act (CZMA) of
material remains of human life or ac- 1972.
tivities that are at least 50 years of age Competitive reservoir means a res-
and that are of archaeological interest. ervoir in which there are one or more
Attainment area means, for any air producible or producing well comple-
pollutant, an area that is shown by tions on each of two or more leases or
monitored data or that is calculated by portions of leases, with different lease
air quality modeling (or other methods operating interests, from which the les-
determined by the Administrator of sees plan future production.
EPA to be reliable) not to exceed any Correlative rights when used with re-
primary or secondary ambient air qual- spect to lessees of adjacent leases,
ity standards established by EPA. means the right of each lessee to be af-
Best available and safest technology forded an equal opportunity to explore
(BAST) means the best available and for, develop, and produce, without
safest technologies that the Director waste, minerals from a common source.
determines to be economically feasible Data means facts and statistics,
wherever failure of equipment would measurements, or samples that have
have a significant effect on safety, not been analyzed, processed, or inter-
health, or the environment. preted.
Best available control technology Departures mean approvals granted
(BACT) means an emission limitation by the appropriate BSEE or BOEM rep-
based on the maximum degree of reduc- resentative for operating requirements/
tion for each air pollutant subject to procedures other than those specified
regulation, taking into account energy, in the regulations found in this part.
environmental and economic impacts, These requirements/procedures may be
302
necessary to control a well; properly Existing facility, as used in 550.303,

develop a lease; conserve natural re- means an OCS facility described in an
sources, or protect life, property, or Exploration Plan or a Development and
the marine, coastal, or human environ- Production Plan approved before June
ment. 2, 1980.
Development means those activities Exploration means the commercial
that take place following discovery of search for oil, gas, or sulphur. Activi-
minerals in paying quantities, includ- ties classified as exploration include
ing but not limited to geophysical ac- but are not limited to:
tivity, drilling, platform construction, (1) Geophysical and geological (G&G)
and operation of all directly related on- surveys using magnetic, gravity, seis-
shore support facilities, and which are mic reflection, seismic refraction, gas
for the purpose of producing the min- sniffers, coring, or other systems to de-
erals discovered. tect or imply the presence of oil, gas,
Development geological and geophysical or sulphur; and
(G&G) activities means those G&G and (2) Any drilling conducted for the
related data-gathering activities on purpose of searching for commercial
your lease or unit that you conduct fol- quantities of oil, gas, and sulphur, in-
lowing discovery of oil, gas, or sulphur cluding the drilling of any additional
in paying quantities to detect or imply well needed to delineate any reservoir
the presence of oil, gas, or sulphur in to enable the lessee to decide whether
commercial quantities. to proceed with development and pro-
Director means the Director of BOEM duction.
of the U.S. Department of the Interior, Facility, as used in 550.303, means all
or an official authorized to act on the installations or devices permanently or
Directors behalf. temporarily attached to the seabed.
District Manager means the BSEE of- They include mobile offshore drilling
ficer with authority and responsibility units (MODUs), even while operating in
for operations or other designated pro- the tender assist mode (i.e., with
gram functions for a district within a skid-off drilling units) or other vessels
BSEE Region. engaged in drilling or downhole oper-
Easement means an authorization for ations. They are used for exploration,
a nonpossessory, nonexclusive interest development, and production activities
in a portion of the OCS, whether leased for oil, gas, or sulphur and emit or
or unleased, which specifies the rights have the potential to emit any air pol-
of the holder to use the area embraced lutant from one or more sources. They
in the easement in a manner consistent include all floating production systems
with the terms and conditions of the (FPSs), including column-stabilized-
granting authority. units (CSUs); floating production, stor-
Eastern Gulf of Mexico means all OCS age and offloading facilities (FPSOs);
areas of the Gulf of Mexico the BOEM tension-leg platforms (TLPs); spars,
Director decides are adjacent to the etc. During production, multiple instal-
State of Florida. The Eastern Gulf of lations or devices are a single facility
Mexico is not the same as the Eastern if the installations or devices are at a
Planning Area, an area established for single site. Any vessel used to transfer
OCS lease sales. production from an offshore facility is
Emission offsets mean emission reduc- part of the facility while it is phys-
tions obtained from facilities, either ically attached to the facility.
onshore or offshore, other than the fa- Flaring means the burning of natural
cility or facilities covered by the pro- gas as it is released into the atmos-
posed Exploration Plan (EP) or Devel- phere.
opment and Production Plan (DPP). Gas reservoir means a reservoir that
Enhanced recovery operations mean contains hydrocarbons predominantly
pressure maintenance operations, sec- in a gaseous (single-phase) state.
ondary and tertiary recovery, cycling, Gas-well completion means a well com-
and similar recovery operations that pleted in a gas reservoir or in the asso-
alter the natural forces in a reservoir ciated gas-cap of an oil reservoir.
to increase the ultimate recovery of oil Geological and geophysical (G&G) ex-
or gas. plorations means those G&G surveys on
303
550.105 30 CFR Ch. V (7112 Edition)
your lease or unit that use seismic re- thorizes exploration for, and develop-
flection, seismic refraction, magnetic, ment and production of, minerals. The
gravity, gas sniffers, coring, or other term also means the area covered by
systems to detect or imply the pres- that authorization, whichever the con-
ence of oil, gas, or sulphur in commer- text requires.
cial quantities. Lease term pipelines mean those pipe-
Governor means the Governor of a lines owned and operated by a lessee or
State, or the person or entity des- operator that are completely contained
ignated by, or under, State law to exer- within the boundaries of a single lease,
cise the powers granted to such Gov- unit, or contiguous (not cornering)
ernor under the Act. leases of that lessee or operator.
H2S absent means: Lessee means a person who has en-
(1) Drilling, logging, coring, testing, tered into a lease with the United
or producing operations have con- States to explore for, develop, and
firmed the absence of H2S in concentra- produce the leased minerals. The term
tions that could potentially result in lessee also includes the BOEM-ap-
atmospheric concentrations of 20 ppm proved assignee of the lease, and the
or more of H2S; or owner or the BOEM-approved assignee
(2) Drilling in the surrounding areas of operating rights for the lease.
and correlation of geological and seis- Major Federal action means any ac-
mic data with equivalent stratigraphic tion or proposal by the Secretary that
units have confirmed an absence of H2S is subject to the provisions of section
throughout the area to be drilled. 102(2)(C) of the National Environmental
H2S present means drilling, logging, Policy Act of 1969, 42 U.S.C. (2)(C) (i.e.,
coring, testing, or producing oper- an action that will have a significant
ations have confirmed the presence of impact on the quality of the human en-
H2S in concentrations and volumes vironment requiring preparation of an
that could potentially result in atmos- environmental impact statement under
pheric concentrations of 20 ppm or section 102(2)(C) of the National Envi-
more of H2S. ronmental Policy Act).
H2S unknown means the designation Marine environment means the phys-
of a zone or geologic formation where ical, atmospheric, and biological com-
neither the presence nor absence of H2S ponents, conditions, and factors that
has been confirmed. interactively determine the produc-
Human environment means the phys- tivity, state, condition, and quality of
ical, social, and economic components, the marine ecosystem. These include
conditions, and factors that inter- the waters of the high seas, the contig-
actively determine the state, condi- uous zone, transitional and intertidal
tion, and quality of living conditions, areas, salt marshes, and wetlands with-
employment, and health of those af- in the coastal zone and on the OCS.
fected, directly or indirectly, by activi- Material remains means physical evi-
ties occurring on the OCS. dence of human habitation, occupation,
Interpreted geological information use, or activity, including the site, lo-
means geological knowledge, often in cation, or context in which such evi-
the form of schematic cross sections, 3- dence is situated.
dimensional representations, and maps, Maximum efficient rate (MER) means
developed by determining the geologi- the maximum sustainable daily oil or
cal significance of data and analyzed gas withdrawal rate from a reservoir
geological information. that will permit economic development
Interpreted geophysical information and depletion of that reservoir without
means geophysical knowledge, often in detriment to ultimate recovery.
the form of schematic cross sections, 3- Maximum production rate (MPR)
dimensional representations, and maps, means the approved maximum daily
developed by determining the geologi- rate at which oil or gas may be pro-
cal significance of geophysical data duced from a specified oil-well or gas-
and analyzed geophysical information. well completion.
Lease means an agreement that is Minerals include oil, gas, sulphur,
issued under section 8 or maintained geopressured-geothermal and associ-
under section 6 of the Act and that au- ated resources, and all other minerals
304
that are authorized by an Act of Con- private, public, or municipal corpora-

gress to be produced. tion.
Natural resources include, without Pipelines are the piping, risers, and
limiting the generality thereof, oil, appurtenances installed for trans-
gas, and all other minerals, and fish, porting oil, gas, sulphur, and produced
shrimp, oysters, clams, crabs, lobsters, waters.
sponges, kelp, and other marine animal Processed geological or geophysical in-
and plant life but does not include formation means data collected under a
water power or the use of water for the permit or a lease that have been proc-
production of power. essed or reprocessed. Processing in-
Nonattainment area means, for any air volves changing the form of data to fa-
pollutant, an area that is shown by cilitate interpretation. Processing op-
monitored data or that is calculated by erations may include, but are not lim-
air quality modeling (or other methods ited to, applying corrections for known
determined by the Administrator of perturbing causes, rearranging or fil-
EPA to be reliable) to exceed any pri- tering data, and combining or trans-
mary or secondary ambient air quality forming data elements. Reprocessing is
standard established by EPA. the additional processing other than
Nonsensitive reservoir means a res- ordinary processing used in the general
ervoir in which ultimate recovery is course of evaluation. Reprocessing op-
not decreased by high reservoir produc- erations may include varying identi-
tion rates. fied parameters for the detailed study
of a specific problem area.
Oil reservoir means a reservoir that
Production means those activities
contains hydrocarbons predominantly
that take place after the successful
in a liquid (single-phase) state.
completion of any means for the re-
Oil reservoir with an associated gas cap moval of minerals, including such re-
means a reservoir that contains hydro- moval, field operations, transfer of
carbons in both a liquid and gaseous minerals to shore, operation moni-
(two-phase) state. toring, maintenance, and workover op-
Oil-well completion means a well com- erations.
pleted in an oil reservoir or in the oil Production areas are those areas
accumulation of an oil reservoir with where flammable petroleum gas, vola-
an associated gas cap. tile liquids or sulphur are produced,
Operating rights mean any interest processed (e.g., compressed), stored,
held in a lease with the right to explore transferred (e.g., pumped), or otherwise
for, develop, and produce leased sub- handled before entering the transpor-
stances. tation process.
Operator means the person the les- Projected emissions mean emissions,
see(s) designates as having control or either controlled or uncontrolled, from
management of operations on the a source or sources.
leased area or a portion thereof. An op- Prospect means a geologic feature
erator may be a lessee, the BOEM-ap- having the potential for mineral depos-
proved or BSEE-approved designated its.
agent of the lessee(s), or the holder of Regional Director means the BOEM of-
operating rights under a BOEM-ap- ficer with responsibility and authority
proved operating rights assignment. for a Region within BOEM.
Outer Continental Shelf (OCS) means Regional Supervisor means the BOEM
all submerged lands lying seaward and officer with responsibility and author-
outside of the area of lands beneath ity for operations or other designated
navigable waters as defined in section 2 program functions within a BOEM Re-
of the Submerged Lands Act (43 U.S.C. gion.
1301) whose subsoil and seabed apper- Right-of-use means any authorization
tain to the United States and are sub- issued under this part to use OCS
ject to its jurisdiction and control. lands.
Person includes a natural person, an Right-of-way pipelines are those pipe-
association (including partnerships, lines that are contained within:
joint ventures, and trusts), a State, a (1) The boundaries of a single lease or
political subdivision of a State, or a unit, but are not owned and operated
305
550.115 30 CFR Ch. V (7112 Edition)
by a lessee or operator of that lease or Well-control fluid means drilling mud,

unit; completion fluid, or workover fluid as
(2) The boundaries of contiguous (not appropriate to the particular operation
cornering) leases that do not have a being conducted.
common lessee or operator; Western Gulf of Mexico means all OCS
(3) The boundaries of contiguous (not areas of the Gulf of Mexico except
cornering) leases that have a common those the BOEM Director decides are
lessee or operator but are not owned adjacent to the State of Florida. The
and operated by that common lessee or Western Gulf of Mexico is not the same
operator; or as the Western Planning Area, an area
(4) An unleased block(s). established for OCS lease sales.
Sensitive reservoir means a reservoir Workover operations mean the work
in which the production rate will affect conducted on wells after the initial
ultimate recovery. well-completion operation for the pur-
Significant archaeological resource pose of maintaining or restoring the
means those archaeological resources productivity of a well.
that meet the criteria of significance You means a lessee, the owner or
for eligibility to the National Register holder of operating rights, a designated
of Historic Places as defined in 36 CFR operator or agent of the lessee(s), a
60.4, or its successor. pipeline right-of-way holder, or a State
Suspension means a granted or di- lessee granted a right-of-use and ease-
rected deferral of the requirement to ment.
produce (Suspension of Production
PERFORMANCE STANDARDS
(SOP)) or to conduct leaseholding oper-
ations (Suspension of Operations 550.115 How do I determine well
(SOO)). producibility?
Venting means the release of gas into You must follow the procedures in
the atmosphere without igniting it. this section to determine well
This includes gas that is released un- producibility if your well is not in the
derwater and bubbles to the atmos- GOM. If your well is in the GOM you
phere. must follow the procedures in either
Waste of oil, gas, or sulphur means: this section or in 550.116 of this sub-
(1) The physical waste of oil, gas, or part.
sulphur; (a) You must write to the Regional
(2) The inefficient, excessive, or im- Supervisor asking for permission to de-
proper use, or the unnecessary dissipa- termine producibility.
tion of reservoir energy; (b) You must either:
(3) The locating, spacing, drilling, (1) Allow the Regional Supervisor to
equipping, operating, or producing of witness each test that you conduct
any oil, gas, or sulphur well(s) in a under this section; or
manner that causes or tends to cause a (2) Receive the Regional Supervisor
reduction in the quantity of oil, gas, or prior approval so that you can submit
sulphur ultimately recoverable under either test data with your affidavit or
prudent and proper operations or that third party test data.
causes or tends to cause unnecessary or (c) If the well is an oil well, you must
excessive surface loss or destruction of conduct a production test that lasts at
oil or gas; or least 2 hours after flow stabilizes.
(4) The inefficient storage of oil. (d) If the well is a gas well, you must
Welding means all activities con- conduct a deliverability test that lasts
nected with welding, including hot tap- at least 2 hours after flow stabilizes, or
ping and burning. a four-point back pressure test.
Wellbay is the area on a facility with-
in the perimeter of the outermost 550.116 How do I determine
wellheads. producibility if my well is in the
Well-completion operations mean the Gulf of Mexico?
work conducted to establish production If your well is in the GOM, you must
from a well after the production-casing follow either the procedures in 550.115
string has been set, cemented, and of this subpart or the procedures in
pressure-tested. this section to determine producibility.
306
(a) You must write to the Regional 550.118 [Reserved]

Supervisor asking for permission to de-
termine producibility. 550.119 Will BOEM approve sub-
(b) You must provide or make avail- surface gas storage?
able to the Regional Supervisor, as re- The Regional Supervisor may author-
quested, the following log, core, anal- ize subsurface storage of gas on the
yses, and test criteria that BOEM will OCS, on and off-lease, for later com-
consider collectively: mercial benefit. The Regional Super-
(1) A log showing sufficient porosity visor may authorize subsurface storage
in the producible section. of gas on the OCS, off-lease, for later
(2) Sidewall cores and core analyses commercial benefit. To receive ap-
that show that the section is capable of proval you must:
producing oil or gas. (a) Show that the subsurface storage
of gas will not result in undue inter-
(3) Wireline formation test and/or
ference with operations under existing
mud-logging analyses that show that
leases; and
the section is capable of producing oil
(b) Sign a storage agreement that in-
or gas.
cludes the required payment of a stor-
(4) A resistivity or induction electric age fee or rental.
log of the well showing a minimum of
15 feet (true vertical thickness except 550.120550.121 [Reserved]
for horizontal wells) of producible sand
in one section. 550.122 What effect does subsurface
(c) No section that you count as pro- storage have on the lease term?
ducible under paragraph (b)(4) of this If you use a lease area for subsurface
section may include any interval that storage of gas, it does not affect the
appears to be water saturated. continuance or expiration of the lease.
(d) Each section you count as produc-
ible under paragraph (b)(4) of this sec- 550.123 Will BOEM allow gas storage
on unleased lands?
tion must exhibit:
(1) A minimum true resistivity ratio You may not store gas on unleased
of the producible section to the nearest lands unless the Regional Supervisor
clean or water-bearing sand of at least approves a right-of-use and easement
5:1; and for that purpose, under 550.160
(2) One of the following: through 550.166 of this subpart.
(i) Electrical spontaneous potential FEES
exceeding 20-negative millivolts be-
yond the shale baseline; or 550.125 Service fees.
(ii) Gamma ray log deflection of at (a) The table in this paragraph (a)
least 70 percent of the maximum shows the fees that you must pay to
gamma ray deflection in the nearest BOEM for the services listed. The fees
clean water-bearing sandif mud con- will be adjusted periodically according
ditions prevent a 20-negative millivolt to the Implicit Price Deflator for Gross
reading beyond the shale baseline. Domestic Product by publication of a
document in the FEDERAL REGISTER. If
550.117 How does a determination of a significant adjustment is needed to
well producibility affect royalty sta- arrive at the new actual cost for any
tus? reason other than inflation, then a pro-
A determination of well producibility posed rule containing the new fees will
invokes minimum royalty status on be published in the FEDERAL REGISTER
the lease as provided in 30 CFR 1202.53. for comment.
Serviceprocessing of the following: Fee amount 30 CFR citation
(1) Change in Designation of Operator .................... $164 ......................................................................... 550.143(d).

(2) Right-of-Use and Easement for State lessee ..... $2,569 ...................................................................... 550.165.
(3) [Reserved].
(4) Exploration Plan (EP) .......................................... $3,442 for each surface location; no fee for revi- 550.211(d).
sions.
307
550.126 30 CFR Ch. V (7112 Edition)
Serviceprocessing of the following: Fee amount 30 CFR citation
(5) Development and Production Plan (DPP) or De- $3,971 for each well proposed; no fee for revisions 550.241(e).
velopment Operations Coordination Document
(DOCD).
(6) [Reserved].
(7) Conservation Information Document ................... $25,629 .................................................................... 550.296(a).
(b) Payment of the fees listed in INSPECTION OF OPERATIONS

paragraph (a) of this section must ac-
company the submission of the docu- 550.130 [Reserved]
ment for approval or be sent to an of-
fice identified by the Regional Direc- DISQUALIFICATION
tor. Once a fee is paid, it is nonrefund-
able, even if an application or other re- 550.135 What will BOEM do if my op-
quest is withdrawn. If your application erating performance is unaccept-
able?
is returned to you as incomplete, you
are not required to submit a new fee If your operating performance is un-
when you submit the amended applica- acceptable, BOEM may disapprove or
tion. revoke your designation as operator on
(c) Verbal approvals are occasionally a single facility or multiple facilities.
given in special circumstances. Any ac- We will give you adequate notice and
tion that will be considered a verbal opportunity for a review by BOEM offi-
permit approval requires either a paper cials before imposing a disqualifica-
permit application to follow the verbal tion.
approval or an electronic application
submittal within 72 hours. Payment 550.136 How will BOEM determine if
must be made with the completed my performance is unacceptable?
paper or electronic application. In determining if your operating per-
550.126 Electronic payment instruc- formance is unacceptable, BOEM will
tions. consider, individually or collectively:
(a)(b) [Reserved]
You must file all payments electroni-
cally through Pay.gov. This includes, (c) Incidents of noncompliance;
but is not limited to, all OCS applica- (d) Civil penalties;
tions or filing fee payments. The (e) Failure to adhere to OCS lease ob-
Pay.gov Web site may be accessed ligations; or
through a link on the BOEM Offshore (f) Any other relevant factors.
Web site at: http://www.boem.gov/off-
shore/ homepage or directly through SPECIAL TYPES OF APPROVALS
Pay.gov at: https://www.pay.gov/paygov/.
(a) [Reserved] 550.140 When will I receive an oral
(b) You must use credit card or auto- approval?
mated clearing house (ACH) payments When you apply for BOEM approval
through the Pay.gov Web site, and you of any activity, we normally give you a
must include a copy of the Pay.gov con- written decision. The following table
firmation receipt page with your appli- shows circumstances under which we
cation. may give an oral approval.
When you . . . We may . . . And . . .
(a) Request approval orally, Give you an oral approval, You must then confirm the oral request by sending us a writ-
ten request within 72 hours.
(b) Request approval in writing, Give you an oral approval if We will send you a written approval afterward. It will include
quick action is needed, any conditions that we place on the oral approval.
308
550.141 May I ever use alternate pro- operator forms must be collected by
cedures or equipment? one lessee and submitted to BOEM in a
You may use alternate procedures or single submittal, which is subject to
equipment after receiving approval as only one filing fee.
described in this section.
550.144 How do I designate a new op-
(a) Any alternate procedures or erator when a designation of oper-
equipment that you propose to use ator terminates?
must provide a level of safety and envi-
ronmental protection that equals or (a) When a Designation of Operator
surpasses current BOEM requirements. terminates, the Regional Supervisor
(b) You must receive the Regional must approve a new designated oper-
Supervisors written approval before ator before you may continue oper-
you can use alternate procedures or ations. Each lessee must submit a new
equipment. executed Designation of Operator form.
(c) To receive approval, you must ei- (b) If your Designation of Operator is
ther submit information or give an oral terminated, or a controversy develops
presentation to the appropriate Re- between you and your designated oper-
gional Supervisor. Your presentation ator, you and your designated operator
must describe the site-specific applica- must protect the lessors interests.
tion(s), performance characteristics,
550.145 How do I designate an agent
and safety features of the proposed pro- or a local agent?
cedure or equipment.
(a) You or your designated operator
550.142 How do I receive approval may designate for the Regional Super-
for departures? visors approval, or the Regional Direc-
We may approve departures to the tor may require you to designate an
operating requirements. You may agent empowered to fulfill your obliga-
apply for a departure by writing to the tions under the Act, the lease, or the
Regional Supervisor. regulations in this part.
(b) You or your designated operator
550.143 How do I designate an oper- may designate for the Regional Super-
ator? visors approval a local agent empow-
(a) You must provide the Regional ered to receive notices and submit re-
Supervisor an executed Designation of quests, applications, notices, or supple-
Operator form (Form BOEM1123) un- mental information.
less you are the only lessee and are the
only person conducting lease oper- 550.146 Who is responsible for ful-
ations. When there is more than one filling leasehold obligations?
lessee, each lessee must submit the (a) When you are not the sole lessee,
Designation of Operator form and the you and your co-lessee(s) are jointly
Regional Supervisor must approve the and severally responsible for fulfilling
designation before the designated oper- your obligations under the provisions
ator may begin operations on the lease- of 30 CFR parts 250 through 282 and 30
hold. CFR parts 550 through 582 unless other-
(b) This designation is authority for wise provided in these regulations.
the designated operator to act on your (b) If your designated operator fails
behalf and to fulfill your obligations to fulfill any of your obligations under
under the Act, the lease, and the regu- 30 CFR parts 250 through 282 and 30
lations in this part. CFR parts 550 through 582, the Re-
(c) You, or your designated operator, gional Supervisor may require you or
must immediately provide the Re- any or all of your co-lessees to fulfill
gional Supervisor a written notifica- those obligations or other operational
tion of any change of address. obligations under the Act, the lease, or
(d) If you change the designated oper- the regulations.
ator on your lease, you must pay the (c) Whenever the regulations in 30
service fee listed in 550.125 of this sub- CFR parts 250 through 282 and 30 CFR
part with your request for a change in parts 550 through 582 require the lessee
designation of operator. Should there to meet a requirement or perform an
be multiple lessees, all designation of action, the lessee, operator (if one has
309
550.160 30 CFR Ch. V (7112 Edition)
been designated), and the person actu- (c) You must meet the requirements
ally performing the activity to which at 30 CFR 556.35 (Qualification of les-
the requirement applies are jointly and sees); establish a regional Company
severally responsible for complying File as required by BOEM; and must
with the regulation. meet bonding requirements;
(d) If you apply for a right-of-use and
RIGHT-OF-USE AND EASEMENT
easement on a leased area, you must
550.160 When will BOEM grant me a notify the lessee and give her/him an
right-of-use and easement, and opportunity to comment on your appli-
what requirements must I meet? cation; and
BOEM may grant you a right-of-use (e) You must receive BOEM approval
and easement on leased and unleased for all platforms, artificial islands, and
lands on the OCS, if you meet these re- installations and other devices perma-
quirements: nently or temporarily attached to the
(a) You must need the right-of-use seabed.
and easement to construct and main- (f) You must pay a rental amount as
tain platforms, artificial islands, and required by paragraph (g) of this sec-
installations and other devices at an tion if:
OCS site other than an OCS lease you
(1) You obtain a right-of-use and
own, that are:
easement after January 12, 2004; or
(1) Permanently or temporarily at-
tached to the seabed; and (2) You ask BOEM to modify your
(2) Used for conducting exploration, right-of-use and easement to change
development, and production activities the footprint of the associated plat-
or other operations on or off lease; or form, artificial island, or installation
(3) Used for other purposes approved or device.
by BOEM. (g) If you meet either of the condi-
(b) You must exercise the right-of- tions in paragraph (f) of this section,
use and easement according to the reg- you must pay a rental amount to
ulations of this part; BOEM as shown in the following table:
If . . . Then . . .
(1) Your right-of-use and easement site is located You must pay a rental of $5 per acre per year with a minimum of $450 per
in water depths of less than 200 meters; year. The area subject to annual rental includes the areal extent of an-
chor chains, pipeline risers, and other equipment associated with the
platform, artificial island, installation or device.
(2) Your right-of-use and easement site is located You must pay a rental of $7.50 per acre per year with a minimum of $675
in water depths of 200 meters or greater; per year. The area subject to annual rental includes the areal extent of
anchor chains, pipeline risers, and other equipment associated with the
platform, artificial island, or installation or device.
(h) You may make the rental pay- If you fail to make a payment that is
ments required by paragraph (g)(1) and late after written notice from BOEM,
(g)(2) of this section on an annual BOEM may initiate cancellation of the
basis, for a 5-year period, or for mul- right-of-use grant and easement.
tiples of 5 years. You must make the
first payment electronically through 550.161 What else must I submit with
Pay.gov and you must include a copy of my application?
the Pay.gov confirmation receipt page With your application, you must de-
with your right-of-use and easement scribe the proposed use giving:
application. You must make all subse- (a) Details of the proposed uses and
quent payments before the respective activities including access needs and
time periods begin. special rights of use that you may
(i) Late payments. An interest charge need;
will be assessed on unpaid and under- (b) A description of all facilities for
paid amounts from the date the which you are seeking authorization;
amounts are due, in accordance with (c) A map or plat describing primary
the provisions found in 30 CFR 1218.54. and alternate project locations; and
310
(d) A schedule for constructing any 550.165 If I have a State lease, what
new facilities, drilling or completing fees do I have to pay for a right-of-
any wells, anticipated production use and easement?
rates, and productive life of existing When you apply for a right-of-use and
production facilities. easement, you must pay:
(a) A nonrefundable filing fee as spec-
550.162 May I continue my right-of-
use and easement after the termi- ified in 550.125; and
nation of any lease on which it is (b) The first years rental as specified
situated? in 550.160(g).
If your right-of-use and easement is 550.166 If I have a State lease, what
on a lease, you may continue to exer- surety bond must I have for a right-
cise the right-of-use and easement of-use and easement?
after the lease on which it is situated
terminates. You must only use the (a) Before BOEM issues you a right-
right-of-use and easement for the pur- of-use and easement on the OCS, you
pose that the grant specifies. All future must furnish the Regional Director a
lessees of that portion of the OCS on surety bond for $500,000.
which your right-of-use and easement (b) The Regional Director may re-
is situated must continue to recognize quire additional security from you (i.e.,
the right-of-use and easement for the security above the prescribed $500,000)
purpose that the grant specifies. to cover additional costs and liabilities
for regulatory compliance. This addi-
550.163 If I have a State lease, will tional surety:
BOEM grant me a right-of-use and (1) Must be in the form of a supple-
easement? mental bond or bonds meeting the re-
(a) BOEM may grant a lessee of a quirements of 30 CFR 556.54 (General
State lease located adjacent to or ac- requirements for bonds) or an increase
cessible from the OCS a right-of-use in the coverage of an existing surety
and easement on the OCS. bond.
(b) BOEM will only grant a right-of- (2) Covers additional costs and liabil-
use and easement under this paragraph ities for regulatory compliance, includ-
to enable a State lessee to conduct and ing well abandonment, platform and
maintain a device that is permanently structure removal, and site clearance
or temporarily attached to the seabed from the seafloor of the right-of-use
(i.e., a platform, artificial island, or in- and easement.
stallation). The lessee must use the de-
vice to explore for, develop, and PRIMARY LEASE REQUIREMENTS, LEASE
produce oil and gas from the adjacent TERM EXTENSIONS, AND LEASE CAN-
or accessible State lease and for other CELLATIONS
operations related to these activities.
550.181 When may the Secretary can-
550.164 If I have a State lease, what cel my lease and when am I com-
conditions apply for a right-of-use pensated for cancellation?
and easement? If the Secretary cancels your lease
(a) A right-of-use and easement under this part or under 30 CFR part
granted under the heading of Right- 556, you are entitled to compensation
of-use and easement in this subpart is under 550.184. Section 550.185 states
subject to BOEM regulations, 30 CFR conditions under which you will re-
parts 550 through 582, BSEE regula- ceive no compensation. The Secretary
tions, 30 CFR parts 250 through 282, and may cancel a lease after notice and op-
any terms and conditions that the portunity for a hearing when:
BOEM Regional Director or BSEE Re- (a) Continued activity on the lease
gional Director prescribes. would probably cause harm or damage
(b) For the whole or fraction of the to life (including fish and other aquatic
first calendar year, and annually after life), property, any mineral deposits (in
that, you must pay to BOEM, in ad- areas leased or not leased), or the ma-
vance, an annual rental payment. rine, coastal, or human environment;
311
550.182 30 CFR Ch. V (7112 Edition)
(b) The threat of harm or damage tion, the Secretary will cancel the
will not disappear or decrease to an ac- lease:
ceptable extent within a reasonable pe- (1) When the 5-year period in para-
riod of time; graph (a)(1) of this section expires; or
(c) The advantages of cancellation (2) If you request cancellation at an
outweigh the advantages of continuing earlier time.
the lease in force; and
(d) A suspension has been in effect for 550.184 What is the amount of com-
at least 5 years or you request termi- pensation for lease cancellation?
nation of the suspension and lease can- When the Secretary cancels a lease
cellation. under 550.181, 550.182 or 550.183 of this
subpart, you are entitled to receive
550.182 When may the Secretary can- compensation under 43 U.S.C.
cel a lease at the exploration stage? 1334(a)(2)(C). You must show the Direc-
BOEM may not approve an explo- tor that the amount of compensation
ration plan (EP) under 30 CFR part 550, claimed is the lesser of paragraph (a) or
subpart B, if the Regional Supervisor (b) of this section:
determines that the proposed activities (a) The fair value of the cancelled
may cause serious harm or damage to rights as of the date of cancellation,
life (including fish and other aquatic taking into account both:
life), property, any mineral deposits, (1) Anticipated revenues from the
the National security or defense, or to lease; and
the marine, coastal, or human environ- (2) Costs reasonably anticipated on
ment, and that the proposed activity the lease, including:
cannot be modified to avoid the condi- (i) Costs of compliance with all appli-
tion(s). The Secretary may cancel the cable regulations and operating orders;
lease if: and
(a) The primary lease term has not (ii) Liability for cleanup costs or
expired (or if the lease term has been damages, or both, in the case of an oil
extended) and exploration has been spill.
prohibited for 5 years following the dis- (b) The excess, if any, over your reve-
approval; or nues from the lease (plus interest
(b) You request cancellation at an thereon from the date of receipt to
earlier time. date of reimbursement) of:
(1) All consideration paid for the
550.183 When may BOEM or the Sec- lease (plus interest from the date of
retary extend or cancel a lease at payment to the date of reimburse-
the development and production ment); and
stage? (2) All your direct expenditures (plus
(a) BOEM may extend your lease if interest from the date of payment to
you submit a DPP and the Regional the date of reimbursement):
Supervisor disapproves the plan ac- (i) After the issue date of the lease;
cording to the regulations in 30 CFR and
part 550, subpart B. Following the dis- (ii) For exploration or development,
approval: or both.
(1) BOEM will allow you to hold the (c) Compensation for leases issued be-
lease for 5 years, or less time at your fore September 18, 1978, will be equal to
request; the amount specified in paragraph (a)
(2) Any time within 5 years after the of this section.
disapproval, you may reapply for ap-
proval of the same or a modified plan; 550.185 When is there no compensa-
and tion for a lease cancellation?
(3) The Regional Supervisor will ap- You will not receive compensation
prove, disapprove, or require modifica- from BOEM for lease cancellation if:
tion of the plan under 30 CFR part 550, (a) BOEM disapproves a DPP because
subpart B. you do not receive concurrence by the
(b) If the Regional Supervisor has not State under section 307(c)(3)(B)(i) or (ii)
approved a DPP or required you to sub- of the CZMA, and the Secretary of
mit a DPP for approval or modifica- Commerce does not make the finding
312
authorized by section 307(c)(3)(B)(iii) of the Regional Director will require in

the CZMA; writing that your EP, DOCD, or DPP
(b) You do not submit a DPP under 30 be accompanied by an archaeological
CFR part 550, subpart B or do not com- report. If the archaeological report
ply with the approved DPP; suggests that an archaeological re-
(c) As the lessee of a nonproducing source may be present, you must ei-
lease, you fail to comply with the Act, ther:
the lease, or the regulations issued
(1) Locate the site of any operation
under the Act, and the default con-
so as not to adversely affect the area
tinues for 30 days after BOEM mails
you a notice by overnight mail; where the archaeological resource may
(d) The Regional Supervisor dis- be; or
approves a DPP because you fail to (2) Establish to the satisfaction of
comply with the requirements of appli- the Regional Director that an archae-
cable Federal law; or ological resource does not exist or will
(e) The Secretary forfeits and cancels not be adversely affected by oper-
a producing lease under section 5(d) of ations. This requires further archae-
the Act (43 U.S.C. 1334(d)). ological investigation, conducted by an
archaeologist and a geophysicist, using
INFORMATION AND REPORTING survey equipment and techniques the
REQUIREMENTS Regional Director considers appro-
550.186 What reporting information priate. You must submit the investiga-
and report forms must I submit? tion report to the Regional Director for
(a) You must submit information and review.
reports as BOEM requires. (b) If the Regional Director deter-
(1) You may obtain copies of forms mines that an archaeological resource
from, and submit completed forms to, is likely to be present in the lease area
the Regional Supervisor. and may be adversely affected by oper-
(2) Instead of paper copies of forms ations, the Regional Director will no-
available from the Regional Super- tify you immediately. You must not
visor, you may use your own computer- take any action that may adversely af-
generated forms that are equal in size fect the archaeological resource until
to BOEMs forms. You must arrange the Regional Director has told you how
the data on your form identical to the to protect the resource.
BOEM form. If you generate your own (c) If you discover any archaeological
form and it omits terms and conditions resource while conducting operations
contained on the official BOEM form, in the lease or right-of-way area, you
we will consider it to contain the omit- must immediately halt operations
ted terms and conditions.
within the area of the discovery and re-
(3) You may submit digital data when
port the discovery to the BOEM Re-
the Region is equipped to accept it.
(b) When BOEM specifies, you must gional Director. If investigations deter-
include, for public information, an ad- mine that the resource is significant,
ditional copy of such reports. the Regional Director will tell you how
(1) You must mark it Public Informa- to protect it.
tion.
(2) You must include all required in- 550.195 [Reserved]
formation, except information exempt
550.196 Reimbursements for repro-
from public disclosure under 550.197 or duction and processing costs.
otherwise exempt from public disclo-
sure under law or regulation. (a) BOEM will reimburse you for
costs of reproducing data and informa-
550.187550.193 [Reserved] tion that the Regional Director re-
quests if:
550.194 How must I protect archae-
ological resources? (1) You deliver geophysical and geo-
logical (G&G) data and information to
(a) If the Regional Director has rea-
BOEM for the Regional Director to in-
son to believe that an archaeological
spect or select and retain;

resource may exist in the lease area,
313
550.197 30 CFR Ch. V (7112 Edition)
(2) BOEM receives your request for of analyzing or processing geological

reimbursement and the Regional Direc- information or interpreting geological
tor determines that the requested re- or geophysical information.
imbursement is proper; and
(3) The cost is at your lowest rate or 550.197 Data and information to be
at the lowest commercial rate estab- made available to the public or for
lished in the area, whichever is less. limited inspection.
(b) BOEM will reimburse you for the BOEM will protect data and informa-
costs of processing geophysical infor- tion that you submit under this part,
mation (that does not include cost of
and 30 CFR part 203, as described in
data acquisition):
this section. Paragraphs (a) and (b) of
(1) If, at the request of the Regional
Director, you processed the geo- this section describe what data and in-
physical data or information in a form formation will be made available to the
or manner other than that used in the public without the consent of the les-
normal conduct of business; or see, under what circumstances, and in
(2) If you collected the information what time period. Paragraph (c) of this
under a permit that BOEM issued to section describes what data and infor-
you before October 1, 1985, and the Re- mation will be made available for lim-
gional Director requests and retains ited inspection without the consent of
the information. the lessee, and under what cir-
(c) When you request reimbursement, cumstances.
you must identify reproduction and (a) All data and information you sub-
processing costs separately from acqui- mit on BOEM forms will be made avail-
sition costs. able to the public upon submission, ex-
(d) BOEM will not reimburse you for cept as specified in the following table:
data acquisition costs or for the costs
Data and information not im-
On form . . . Excepted data will be made available . . .
mediately available are . . .
(1) [Reserved]
(2) [Reserved]
(3) [Reserved]
(4) [Reserved]
(5) [Reserved]
(6) BOEM0127, Sensitive Items 124 through 168, 2 years after the effective date of the Sensitive Reservoir In-
Reservoir Information Re- formation Report.
port,
(7) [Reserved]
(8) [Reserved]
(9) BOEM0137 OCS Plan In- Items providing the bottomhole When the well goes on production or according to the table in
formation, location, true vertical depth, paragraph (b) of this section, whichever is earlier.
and measured depth of
wells,
(10) BOEM0140, Bottomhole All items, 2 years after the date of the survey.
Pressure Survey Report,
(b) BOEM will release lease and per- not normally submitted on BOEM
mit data and information that you sub- forms, according to the following table:
mit and BOEM retains, but that are
If . . . BOEM will release . . . At this time . . . Special provisions . . .
(1) The Director determines Geophysical data, Geological At any time, BOEM will release data and
that data and information are data Interpreted G&G infor- information only if release
needed for specific scientific mation, Processed G&G in- would further the National
or research purposes for the formation, Analyzed geo- interest without unduly
Government, logical information, damaging the competitive
position of the lessee.
314
If . . . BOEM will release . . . At this time . . . Special provisions . . .
(2) Data or information is col- Geophysical data, Geological 60 days after BOEM receives BOEM will release the data
lected with high-resolution data, Interpreted G&G infor- the data or information, if and information earlier than
systems (e.g., bathymetry, mation, Processed geologi- the Regional Supervisor 60 days if the Regional Su-
side-scan sonar, subbottom cal information, Analyzed deems it necessary, pervisor determines it is
profiler, and magnetometer) geological information, needed by affected States
to comply with safety or en- to make decisions under
vironmental protection re- subpart B. The Regional
quirements, Supervisor will reconsider
earlier release if you satisfy
him/her that it would unduly
damage your competitive
position.
(3) Your lease is no longer in Geophysical data, Geological When your lease terminates, This release time applies only
effect, data, Processed G&G infor- if the provisions in this table
mation Interpreted G&G in- governing high-resolution
formation, Analyzed geo- systems and the provisions
logical information, in 552.7 do not apply. The
release time applies to the
geophysical data and infor-
mation only if acquired
postlease for a lessees ex-
clusive use.
(4) Your lease is still in effect, Geophysical data, Processed 10 years after you submit the This release time applies only
geophysical information, In- data and information, if the provisions in this table
terpreted G&G information, governing high-resolution
systems and the provisions
in 552.7 do not apply.
This release time applies to
the geophysical data and
information only if acquired
postlease for a lessees ex-
clusive use.
(5) Your lease is still in effect Geological data, Analyzed ge- 2 years after the required These release times apply
and within the primary term ological information, submittal date or 60 days only if the provisions in this
specified in the lease, after a lease sale if any table governing high-resolu-
portion of an offered lease tion systems and the provi-
is within 50 miles of a well, sions in 552.7 do not
whichever is later, apply. If the primary term
specified in the lease is ex-
tended under the heading
of Suspensions in this
subpart, the extension ap-
plies to this provision.
(6) Your lease is in effect and Geological data, Analyzed ge- 2 years after the required None.
beyond the primary term ological information, submittal date,
specified in the lease,
(7) Data or information is sub- Descriptions of downhole lo- When the well goes on pro- Directional survey data may
mitted on well operations, cations, operations, and duction or when geological be released earlier to the
equipment, data is released according owner of an adjacent lease
to 550.197(b)(5) and according to 30 CFR 250
(b)(6), whichever occurs subpart D.
earlier,
(8) Data and information are Any data or information ob- At any time, None.
obtained from beneath un- tained,
leased land as a result of a
well deviation that has not
been approved by the Re-
gional Supervisor,
(9) Except for high-resolution G&G data, analyzed geologi- Geological data and informa- None.
data and information re- cal information, processed tion: 10 years after BOEM
leased under paragraph and interpreted G&G infor- issues the permit; Geo-
(b)(2) of this section data mation, physical data: 50 years
and information acquired by after BOEM issues the per-
a permit under 30 CFR part mit; Geophysical informa-
551 are submitted by a les- tion: 25 years after BOEM
see under part 550, 30 CFR issues the permit,
part 203, or 30 CFR part
250,
(c) BOEM may allow limited inspec- interest in related BOEM decisions and
tion, but only by persons with a direct issues in specific geographic areas, and
315
550.198 30 CFR Ch. V (7112 Edition)
who agree in writing to its confiden- tion collections in this part is man-
tiality, of G&G data and information dated under the Act (43 U.S.C. 1331 et
submitted under this part or 30 CFR seq.) and the Acts Amendments of 1978
part 203 that BOEM uses to: (43 U.S.C. 1801 et seq.). Some responses
(1)-(3) [Reserved] are also required to obtain or retain a
(4) Promote operational safety; benefit or may be voluntary. Propri-
(5) Protect the environment; or etary information will be protected
(6) Make field determinations. under 550.197, Data and information to
(7) [Reserved] be made available to the public or for
limited inspection; parts 551, 552; and
REFERENCES the Freedom of Information Act (5
550.198 [Reserved] U.S.C. 552) and its implementing regu-
lations at 43 CFR part 2.
550.199 Paperwork Reduction Act (c) The Paperwork Reduction Act of
statementsinformation collection. 1995 requires us to inform the public
(a) OMB has approved the informa- that an agency may not conduct or
tion collection requirements in part 550 sponsor, and you are not required to re-
under 44 U.S.C. 3501 et seq. The table in spond to, a collection of information
paragraph (e) of this section lists the unless it displays a currently valid
subpart in the rule requiring the infor- OMB control number.
mation and its title, provides the OMB (d) Send comments regarding any as-
control number, and summarizes the pect of the collections of information
reasons for collecting the information under this part, including suggestions
and how BOEM uses the information. for reducing the burden, to the Infor-
The associated BOEM forms required mation Collection Clearance Officer,
by this part are listed at the end of this Bureau of Ocean Energy Management,
table with the relevant information. 381 Elden Street, Herndon, VA 20170.
(b) Respondents are OCS oil, gas, and (e) BOEM is collecting this informa-
sulphur lessees and operators. The re- tion for the reasons given in the fol-
quirement to respond to the informa- lowing table:
30 CFR subpart, title and/or BOEM Form (OMB Control No.) Reasons for collecting information and how used
(1) Subpart A, General (10100114), including Forms BOEM To inform BOEM of actions taken to comply with general re-
1123, Designation of Operator and BOEM1832, Notification quirements on the OCS. To ensure that operations on the
of Incidents of Noncompliance. OCS meet statutory and regulatory requirements, are safe
and protect the environment, and result in diligent explo-
ration, development, and production on OCS leases. To sup-
port the unproved and proved reserve estimation, resource
assessment, and fair market value determinations.
(2) Subpart B, Exploration and Development and Production To inform BOEM, States, and the public of planned explo-
Plans (10100151), including Forms BOEM0137, OCS Plan ration, development, and production operations on the OCS.
Information Form; BOEM0138, EP Air Quality Screening To ensure that operations on the OCS are planned to com-
Checklist; BOEM0139, DOCD Air Quality Screening Check- ply with statutory and regulatory requirements, will be safe
list; BOEM0141, ROV Survey Report Form; and BOEM and protect the human, marine, and coastal environment,
0142, Environmental Impact Analysis Worksheet. and will result in diligent exploration, development, and pro-
duction of leases.
(3) Subpart C, Pollution Prevention and Control (10100057) ... To inform BOEM of measures to be taken to prevent air pollu-
tion. To ensure that appropriate measures are taken to pre-
vent air pollution.
(4) Subpart J, Pipelines and Pipeline Rights-of-Way (1010 To provide BOEM with information regarding the design, instal-
0050), including Form BOEM2030, Outer Continental Shelf lation, and operation of pipelines on the OCS. To ensure
(OCS) Pipeline Right-of-Way Grant Bond. that pipeline operations are safe and protect the human, ma-
rine, and coastal environment.
(5) Subpart K, Oil and Gas Production Rates (10100041), in- To inform BOEM of production rates for hydrocarbons pro-
cluding Forms BOEM0127, Sensitive Reservoir Information duced on the OCS. To ensure economic maximization of ul-
Report and BOEM0140, Bottomhole Pressure Survey Re- timate hydrocarbon recovery.
port.
(6) Subpart N, Remedies and Penalties ..................................... The requirements in subpart N are exempt from the Paperwork
Reduction Act of 1995 according to 5 CFR 1320.4.
316
Subpart BPlans and Information (1) Have not been used previously or
extensively in a BOEM OCS Region;
GENERAL INFORMATION (2) Have not been used previously
under the anticipated operating condi-
550.200 Definitions. tions; or
Acronyms and terms used in this sub- (3) Have operating characteristics
part have the following meanings: that are outside the performance pa-
(a) Acronyms used frequently in this rameters established by this part.
subpart are listed alphabetically below: Non-conventional production or comple-
BOEM means Bureau of Ocean En- tion technology includes, but is not lim-
ergy Management. ited to, floating production systems,
BSEE means Bureau of Safety and tension leg platforms, spars, floating
Environmental Enforcement. production, storage, and offloading sys-
CID means Conservation Information tems, guyed towers, compliant towers,
Document. subsea manifolds, and other subsea pro-
duction components that rely on a re-
CZMA means Coastal Zone Manage-
mote site or host facility for utility
ment Act.
and well control services.
DOCD means Development Oper-
Offshore vehicle means a vehicle that
ations Coordination Document.
is capable of being driven on ice.
DPP means Development and Produc-
Resubmitted OCS plan means an EP,
tion Plan.
DPP, or DOCD that contains changes
DWOP means Deepwater Operations you make to an OCS plan that BOEM
Plan. has disapproved (see 550.234(b),
EIA means Environmental Impact 550.272(a), and 550.273(b)).
Analysis. Revised OCS plan means an EP, DPP,
EP means Exploration Plan. or DOCD that proposes changes to an
NPDES means National Pollutant approved OCS plan, such as those in
Discharge Elimination System. the location of a well or platform, type
NTL means Notice to Lessees and Op- of drilling unit, or location of the on-
erators. shore support base (see 550.283(a)).
OCS means Outer Continental Shelf. Supplemental OCS plan means an EP,
(b) Terms used in this subpart are DPP, or DOCD that proposes the addi-
listed alphabetically below: tion to an approved OCS plan of an ac-
Amendment means a change you make tivity that requires approval of an ap-
to an EP, DPP, or DOCD that is pend- plication or permit (see 550.283(b)).
ing before BOEM for a decision (see
550.232(d) and 550.267(d)). 550.201 What plans and information
Modification means a change required must I submit before I conduct any
by the Regional Supervisor to an EP, activities on my lease or unit?
DPP, or DOCD (see 550.233(b)(2) and (a) Plans and documents. Before you
550.270(b)(2)) that is pending before conduct the activities on your lease or
BOEM for a decision because the OCS unit listed in the following table, you
plan is inconsistent with applicable re- must submit, and BOEM must approve,
quirements. the listed plans and documents. Your
New or unusual technology means plans and documents may cover one or
equipment or procedures that: more leases or units.
You must submit a(n) . . . Before you . . .
(1) Exploration Plan (EP), Conduct any exploration activities on a lease or unit.
(2) Development and Production Plan Conduct any development and production activities on a lease or unit in any OCS
(DPP), area other than the Western Gulf of Mexico.
(3) Development Operations Coordination Conduct any development and production activities on a lease or unit in the West-
Document (DOCD), ern GOM.
(4) BSEE approved Deepwater Operations Conduct post-drilling installation activities in any water depth associated with a de-
Plan (DWOP), velopment project that will involve the use of a non-conventional production or
completion technology.
(5) Conservation Information Document Commence production from development projects in water depths greater than
(CID), 1,312 feet (400 meters).
(6) EP, DPP, or DOCD, Conduct geological or geophysical (G&G) exploration or a development G&G activ-
ity (see definitions under 550.105) on your lease or unit when:
317
550.202 30 CFR Ch. V (7112 Edition)
You must submit a(n) . . . Before you . . .
(i) It will result in a physical penetration of the seabed greater than 500 feet (152
meters);
(ii) It will involve the use of explosives;
(iii) The Regional Director determines that it might have a significant adverse effect
on the human, marine, or coastal environment; or
(iv) The Regional Supervisor, after reviewing a notice under 550.209, determines
that an EP, DPP, or DOCD is necessary.
(b) Submitting additional information. (d) Does not unreasonably interfere

On a case-by-case basis, the Regional with other uses of the OCS, including
Supervisor may require you to submit those involved with National security
additional information if the Regional or defense; and
Supervisor determines that it is nec- (e) Does not cause undue or serious
essary to evaluate your proposed plan harm or damage to the human, marine,
or document. or coastal environment.
(c) Limiting information. The Regional
Director may limit the amount of in- 550.203 Where can wells be located
under an EP, DPP, or DOCD?
formation or analyses that you other-
wise must provide in your proposed The Regional Supervisor reviews and
plan or document under this subpart approves proposed well location and
when: spacing under an EP, DPP, or DOCD. In
(1) Sufficient applicable information deciding whether to approve a proposed
or analysis is readily available to well location and spacing, the Regional
BOEM; Supervisor will consider factors includ-
(2) Other coastal or marine resources ing, but not limited to, the following:
are not present or affected; (a) Protecting correlative rights;
(3) Other factors such as techno- (b) Protecting Federal royalty inter-
logical advances affect information ests;
needs; or (c) Recovering optimum resources;
(d) Number of wells that can be eco-
(4) Information is not necessary or
nomically drilled for proper reservoir
required for a State to determine con-
management;
sistency with their CZMA Plan.
(e) Location of drilling units and
(d) Referencing. In preparing your platforms;
proposed plan or document, you may (f) Extent and thickness of the res-
reference information and data dis- ervoir;
cussed in other plans or documents you (g) Geologic and other reservoir char-
previously submitted or that are other- acteristics;
wise readily available to BOEM. (h) Minimizing environmental risk;
(i) Preventing unreasonable inter-
550.202 What criteria must the Explo-
ration Plan (EP), Development and ference with other uses of the OCS; and
Production Plan (DPP), or Develop- (j) Drilling of unnecessary wells.
ment Operations Coordination Doc-
ument (DOCD) meet? 550.204550.205 [Reserved]
Your EP, DPP, or DOCD must dem- 550.206 How do I submit the EP,
onstrate that you have planned and are DPP, or DOCD?
prepared to conduct the proposed ac- (a) Number of copies. When you submit
tivities in a manner that: an EP, DPP, or DOCD to BOEM, you
(a) Conforms to the Outer Conti- must provide:
nental Shelf Lands Act as amended (1) Four copies that contain all re-
(Act), applicable implementing regula- quired information (proprietary cop-
tions, lease provisions and stipulations, ies);
and other Federal laws; (2) Eight copies for public distribu-
(b) Is safe; tion (public information copies) that
(c) Conforms to sound conservation omit information that you assert is ex-
practices and protects the rights of the empt from disclosure under the Free-
lessor; dom of Information Act (FOIA) (5
318
U.S.C. 552) and the implementing regu- (3) Provide expected start and com-
lations (43 CFR part 2); and pletion dates and the location of the
(3) Any additional copies that may be activity; and
necessary to facilitate review of the (4) Describe the potential adverse en-
EP, DPP, or DOCD by certain affected vironmental effects of the proposed ac-
States and other reviewing entities. tivity and any mitigation to eliminate
(b) Electronic submission. You may or minimize these effects on the ma-
submit part or all of your EP, DPP, or rine, coastal, and human environment.
DOCD and its accompanying informa- (b) The Regional Supervisor may re-
tion electronically. If you prefer to quire you to:
submit your EP, DPP, or DOCD elec- (1) Give written notice to BOEM at
tronically, ask the Regional Supervisor least 15 calendar days before you con-
for further guidance. duct any other ancillary activity (see
(c) Withdrawal after submission. You 550.207(b) and (c)) in addition to those
may withdraw your proposed EP, DPP, listed in 550.207(a); and
or DOCD at any time for any reason. (2) Notify other users of the OCS be-
Notify the appropriate BOEM OCS Re- fore you conduct any ancillary activ-
gion if you do. ity.
ANCILLARY ACTIVITIES 550.209 What is the BOEM review
process for the notice?
550.207 What ancillary activities may
I conduct? The Regional Supervisor will review
any notice required under 550.208(a)
Before or after you submit an EP, and (b)(1) to ensure that your ancillary
DPP, or DOCD to BOEM, you may activity complies with the performance
elect, the regulations in this part may standards listed in 550.202(a), (b), (d),
require, or the Regional Supervisor and (e). The Regional Supervisor may
may direct you to conduct ancillary notify you that your ancillary activity
activities. Ancillary activities include: does not comply with those standards.
(a) Geological and geophysical (G&G) In such a case, the Regional Supervisor
explorations and development G&G ac- will require you to submit an EP, DPP,
tivities; or DOCD and you may not start your
(b) Geological and high-resolution ancillary activity until the Regional
geophysical, geotechnical, archae- Supervisor approves the EP, DPP, or
ological, biological, physical oceano- DOCD.
graphic, meteorological, socio-
economic, or other surveys; or 550.210 If I conduct ancillary activi-
(c) Studies that model potential oil ties, what reporting and data/infor-
and hazardous substance spills, drilling mation retention requirements
muds and cuttings discharges, pro- must I satisfy?
jected air emissions, or potential hy- (a) Reporting. The Regional Super-
drogen sulfide (H2S) releases. visor may require you to prepare and
submit reports that summarize and
550.208 If I conduct ancillary activi- analyze data or information obtained
ties, what notices must I provide? or derived from your ancillary activi-
At least 30 calendar days before you ties. When applicable, BOEM will pro-
conduct any G&G exploration or devel- tect and disclose the data and informa-
opment G&G activity (see 550.207(a)), tion in these reports in accordance
you must notify the Regional Super- with 550.197(b).
visor in writing. (b) Data and information retention.
(a) When you prepare the notice, you You must retain copies of all original
must: data and information, including navi-
(1) Sign and date the notice; gation data, obtained or derived from
(2) Provide the names of the vessel, your G&G explorations and develop-
its operator, and the person(s) in ment G&G activities (see 550.207(a)),
charge; the specific type(s) of oper- including any such data and informa-
ations you will conduct; and the in- tion you obtained from previous lease-
strumentation/techniques and vessel holders or unit operators. You must
navigation system you will use; submit such data and information to
319
550.211 30 CFR Ch. V (7112 Edition)
BOEM for inspection and possible re- (g) Oil and hazardous substance spills
tention upon request at any time be- information required by 550.219;
fore lease or unit termination. When (h) Alaska planning information re-
applicable, BOEM will protect and dis- quired by 550.220;
close such submitted data and informa- (i) Environmental monitoring infor-
tion in accordance with 550.197(b). mation required by 550.221;
(j) Lease stipulations information re-
CONTENTS OF EXPLORATION PLANS (EP) quired by 550.222;
(k) Mitigation measures information
550.211 What must the EP include? required by 550.223;
Your EP must include the following: (l) Support vessels and aircraft infor-
(a) Description, objectives, and sched- mation required by 550.224;
ule. A description, discussion of the ob- (m) Onshore support facilities infor-
jectives, and tentative schedule (from mation required by 550.225;
start to completion) of the exploration (n) Coastal zone management infor-
activities that you propose to under- mation required by 550.226;
take. Examples of exploration activi- (o) Environmental impact analysis
ties include exploration drilling, well information required by 550.227; and
test flaring, installing a well protec- (p) Administrative information re-
tion structure, and temporary well quired by 550.228.
abandonment.
(b) Location. A map showing the sur- 550.213 What general information
face location and water depth of each must accompany the EP?
proposed well and the locations of all The following general information
associated drilling unit anchors. must accompany your EP:
(c) Drilling unit. A description of the (a) Applications and permits. A listing,
drilling unit and associated equipment including filing or approval status, of
you will use to conduct your proposed the Federal, State, and local applica-
exploration activities, including a brief tion approvals or permits you must ob-
description of its important safety and tain to conduct your proposed explo-
pollution prevention features, and a ration activities.
table indicating the type and the esti- (b) Drilling fluids. A table showing the
mated maximum quantity of fuels, oil, projected amount, discharge rate, and
and lubricants that will be stored on chemical constituents for each type
the facility (see definition of facility (i.e., water-based, oil-based, synthetic-
under 550.105(3)). based) of drilling fluid you plan to use
(d) Service fee. You must include pay- to drill your proposed exploration
ment of the service fee listed in wells.
550.125. (c) Chemical products. A table showing
the name and brief description, quan-
550.212 What information must ac- tities to be stored, storage method, and
company the EP? rates of usage of the chemical products
The following information must ac- you will use to conduct your proposed
company your EP: exploration activities. List only those
(a) General information required by chemical products you will store or use
550.213; in quantities greater than the amounts
(b) Geological and geophysical (G&G) defined as Reportable Quantities in 40
information required by 550.214; CFR part 302, or amounts specified by
(c) Hydrogen sulfide information re- the Regional Supervisor.
quired by 550.215; (d) New or unusual technology. A de-
(d) Biological, physical, and socio- scription and discussion of any new or
economic information required by unusual technology (see definition
550.216; under 550.200) you will use to carry
(e) Solid and liquid wastes and dis- out your proposed exploration activi-
charges information and cooling water ties. In the public information copies of
intake information required by your EP, you may exclude any propri-
550.217; etary information from this descrip-
(f) Air emissions information re- tion. In that case, include a brief dis-
quired by 550.218; cussion of the general subject matter
320
of the omitted information. If you will (c) Two-dimensional (2D) or three-di-

not use any new or unusual technology mensional (3D) seismic lines. Copies of
to carry out your proposed exploration migrated and annotated 2D or 3D
activities, include a statement so indi- seismic lines (with depth scale) inter-
cating. secting at or near your proposed well
(e) Bonds, oil spill financial responsi- locations. You are not required to con-
bility, and well control statements. State- duct both 2D and 3D seismic surveys
ments attesting that: if you choose to conduct only one type
(1) The activities and facilities pro- of survey. If you have conducted both
posed in your EP are or will be covered types of surveys, the Regional Super-
by an appropriate bond under 30 CFR visor may instruct you to submit the
part 556, subpart I; results of both surveys. You must in-
(2) You have demonstrated or will terpret and display this information.
demonstrate oil spill financial respon- Because of its volume, provide this in-
sibility for facilities proposed in your formation as an enclosure to only one
EP according to 30 CFR part 553; and proprietary copy of your EP.
(3) You have or will have the finan- (d) Geological cross-sections. Inter-
cial capability to drill a relief well and preted geological cross-sections show-
conduct other emergency well control ing the location and depth of each pro-
operations. posed well.
(f) Suspensions of operations. A brief (e) Shallow hazards report. A shallow
discussion of any suspensions of oper-
hazards report based on information
ations that you anticipate may be nec-
obtained from a high-resolution geo-
essary in the course of conducting your
physical survey, or a reference to such
activities under the EP.
report if you have already submitted it
(g) Blowout scenario. A scenario for
to the Regional Supervisor.
the potential blowout of the proposed
well in your EP that you expect will (f) Shallow hazards assessment. For
have the highest volume of liquid hy- each proposed well, an assessment of
drocarbons. Include the estimated flow any seafloor and subsurface geological
rate, total volume, and maximum dura- and manmade features and conditions
tion of the potential blowout. Also, dis- that may adversely affect your pro-
cuss the potential for the well to bridge posed drilling operations.
over, the likelihood for surface inter- (g) High-resolution seismic lines. A
vention to stop the blowout, the avail- copy of the high-resolution survey line
ability of a rig to drill a relief well, and closest to each of your proposed well
rig package constraints. Estimate the locations. Because of its volume, pro-
time it would take to drill a relief well. vide this information as an enclosure
(h) Contact. The name, address (e- to only one proprietary copy of your
mail address, if available), and tele- EP. You are not required to provide
phone number of the person with whom this information if the surface location
the Regional Supervisor and any af- of your proposed well has been ap-
fected State(s) can communicate about proved in a previously submitted EP,
your EP. DPP, or DOCD.
(h) Stratigraphic column. A general-
550.214 What geological and geo-
physical (G&G) information must ized biostratigraphic/lithostratigraphic
accompany the EP? column from the surface to the total
depth of the prospect.
The following G&G information must
(i) Time-versus-depth chart. A seismic
accompany your EP:
travel time-versus-depth chart based
(a) Geological description. A geological
on the appropriate velocity analysis in
description of the prospect(s).
the area of interpretation and speci-
(b) Structure contour maps. Current
fying the geodetic datum.
structure contour maps (depth-based,
expressed in feet subsea) drawn on the (j) Geochemical information. A copy of
top of each prospective hydrocarbon- any geochemical reports you used or
bearing reservoir showing the locations generated.
of proposed wells.
321
550.215 30 CFR Ch. V (7112 Edition)
(k) Future G&G activities. A brief de- 550.216 What biological, physical,
scription of the types of G&G explo- and socioeconomic information
rations and development G&G activi- must accompany the EP?
ties you may conduct for lease or unit If you obtain the following informa-
purposes after your EP is approved. tion in developing your EP, or if the
Regional Supervisor requires you to
550.215 What hydrogen sulfide (H2S) obtain it, you must include a report, or
information must accompany the the information obtained, or a ref-
EP?
erence to such a report or information
The following H2S information, as ap- if you have already submitted it to the
plicable, must accompany your EP: Regional Supervisor, as accompanying
(a) Concentration. The estimated con- information:
centration of any H2S you might en- (a) Biological environment reports.
counter while you conduct your pro- Site-specific information on
posed exploration activities. chemosynthetic communities, feder-
(b) Classification. Under 30 CFR ally listed threatened or endangered
250.490(c), a request that the BSEE Re- species, marine mammals protected
gional Supervisor classify the area of under the Marine Mammal Protection
your proposed exploration activities as Act (MMPA), sensitive underwater fea-
either H2S absent, H2S present, or H2S tures, marine sanctuaries, critical
unknown. Provide sufficient informa- habitat designated under the Endan-
gered Species Act (ESA), or other areas
tion to justify your request.
of biological concern.
(c) H2S Contingency Plan. If you ask
(b) Physical environment reports. Site-
the Regional Supervisor to classify the
specific meteorological, physical
area of your proposed exploration ac-
oceanographic, geotechnical reports, or
tivities as either H2S present or H2S archaeological reports (if required
unknown, an H2S Contingency Plan under 550.194).
prepared under 30 CFR 250.490(f), or a (c) Socioeconomic study reports. Socio-
reference to an approved or submitted economic information regarding your
H2S Contingency Plan that covers the proposed exploration activities.
proposed exploration activities.
(d) Modeling report. If you modeled a 550.217 What solid and liquid wastes
potential H2S release when developing and discharges information and
your EP, modeling report or the mod- cooling water intake information
eling results, or a reference to such re- must accompany the EP?
port or results if you have already sub- The following solid and liquid wastes
mitted it to the Regional Supervisor. and discharges information and cooling
(1) The analysis in the modeling re- water intake information must accom-
port must be specific to the particular pany your EP:
site of your proposed exploration ac- (a) Projected wastes. A table providing
tivities, and must consider any nearby the name, brief description, projected
human-occupied OCS facilities, ship- quantity, and composition of solid and
ping lanes, fishery areas, and other liquid wastes (such as spent drilling
points where humans may be subject to fluids, drill cuttings, trash, sanitary
potential exposure from an H2S release and domestic wastes, and chemical
from your proposed exploration activi- product wastes) likely to be generated
by your proposed exploration activi-
ties.
ties. Describe:
(2) If any H2S emissions are projected
(1) The methods you used for deter-
to affect an onshore location in con-
mining this information; and
centrations greater than 10 parts per
(2) Your plans for treating, storing,
million, the modeling analysis must be
and downhole disposal of these wastes
consistent with the Environmental
at your drilling location(s).
Protection Agencys (EPA) risk man-
(b) Projected ocean discharges. If any
agement plan methodologies outlined
of your solid and liquid wastes will be
in 40 CFR part 68. discharged overboard, or are planned
discharges from manmade islands:
322
(1) A table showing the name, pro- (iii) Emissions over the duration of
jected amount, and rate of discharge the proposed exploration activities;
for each waste type; and (iv) The frequency and duration of
(2) A description of the discharge emissions; and
method (such as shunting through a (v) The total of all emissions listed in
downpipe, etc.) you will use. paragraphs (a)(1)(i) through (iv) of this
(c) National Pollutant Discharge Elimi- section.
nation System (NPDES) permit. (1) A dis- (2) You must provide the basis for all
cussion of how you will comply with calculations, including engine size and
the provisions of the applicable general rating, and applicable operational in-
NPDES permit that covers your pro- formation.
posed exploration activities; or (3) You must base the projected emis-
(2) A copy of your application for an sions on the maximum rated capacity
individual NPDES permit. Briefly de- of the equipment on the proposed drill-
scribe the major discharges and meth- ing unit under its physical and oper-
ods you will use for compliance. ational design.
(d) Modeling report. The modeling re- (4) If the specific drilling unit has not
port or the modeling results (if you
yet been determined, you must use the
modeled the discharges of your pro-
maximum emission estimates for the
jected solid or liquid wastes when de-
type of drilling unit you will use.
veloping your EP), or a reference to
such report or results if you have al- (b) Emission reduction measures. A de-
ready submitted it to the Regional Su- scription of any proposed emission re-
pervisor. duction measures, including the af-
(e) Projected cooling water intake. A fected source(s), the emission reduc-
table for each cooling water intake tion control technologies or proce-
structure likely to be used by your pro- dures, the quantity of reductions to be
posed exploration activities that in- achieved, and any monitoring system
cludes a brief description of the cooling you propose to use to measure emis-
water intake structure, daily water in- sions.
take rate, water intake through screen (c) Processes, equipment, fuels, and
velocity, percentage of water intake combustibles. A description of processes,
used for cooling water, mitigation processing equipment, combustion
measures for reducing impingement equipment, fuels, and storage units.
and entrainment of aquatic organisms, You must include the characteristics
and biofouling prevention measures. and the frequency, duration, and max-
imum burn rate of any well test fluids
550.218 What air emissions informa- to be burned.
tion must accompany the EP? (d) Distance to shore. Identification of
The following air emissions informa- the distance of your drilling unit from
tion, as applicable, must accompany the mean high water mark (mean high-
your EP: er high water mark on the Pacific
(a) Projected emissions. Tables showing coast) of the adjacent State.
the projected emissions of sulphur di- (e) Non-exempt drilling units. A de-
oxide (SO2), particulate matter in the scription of how you will comply with
form of PM10 and PM2.5 when applica- 550.303 when the projected emissions
ble, nitrogen oxides (NOX), carbon mon- of SO2, PM, NOX, CO, or VOC, that will
oxide (CO), and volatile organic com- be generated by your proposed explo-
pounds (VOC) that will be generated by ration activities, are greater than the
your proposed exploration activities. respective emission exemption
(1) For each source on or associated amounts E calculated using the for-
with the drilling unit (including well mulas in 550.303(d). When BOEM re-
test flaring and well protection struc- quires air quality modeling, you must
ture installation), you must list: use the guidelines in Appendix W of 40
(i) The projected peak hourly emis- CFR part 51 with a model approved by
sions; the Director. Submit the best available
(ii) The total annual emissions in meteorological information and data
tons per year; consistent with the model(s) used.
323
550.219 30 CFR Ch. V (7112 Edition)
(f) Modeling report. A modeling report 550.220 If I propose activities in the

or the modeling results (if 550.303 re- Alaska OCS Region, what planning
quires you to use an approved air qual- information must accompany the
ity model to model projected air emis- EP?
sions in developing your EP), or a ref- If you propose exploration activities
erence to such a report or results if you in the Alaska OCS Region, the fol-
have already submitted it to the Re- lowing planning information must ac-
gional Supervisor. company your EP:
(a) Emergency plans. A description of
550.219 What oil and hazardous sub- your emergency plans to respond to a
stance spills information must ac-
company the EP? blowout, loss or disablement of a drill-
ing unit, and loss of or damage to sup-
The following information regarding port craft.
potential spills of oil (see definition (b) Critical operations and curtailment
under 30 CFR 254.6) and hazardous sub- procedures. Critical operations and cur-
stances (see definition under 40 CFR tailment procedures for your explo-
part 116) as applicable, must accom- ration activities. The procedures must
pany your EP: identify ice conditions, weather, and
(a) Oil spill response planning. The ma- other constraints under which the ex-
terial required under paragraph (a)(1) ploration activities will either be cur-
or (a)(2) of this section: tailed or not proceed.
(1) An Oil Spill Response Plan
(OSRP) for the facilities you will use to 550.221 What environmental moni-
conduct your exploration activities toring information must accompany
prepared according to the requirements the EP?
of 30 CFR part 254, subpart B; or The following environmental moni-
(2) Reference to your approved re- toring information, as applicable, must
gional OSRP (see 30 CFR 254.3) to in- accompany your EP:
clude: (a) Monitoring systems. A description
(i) A discussion of your regional of any existing and planned monitoring
OSRP; systems that are measuring, or will
(ii) The location of your primary oil measure, environmental conditions or
spill equipment base and staging area; will provide project-specific data or in-
(iii) The name(s) of your oil spill re- formation on the impacts of your ex-
moval organization(s) for both equip- ploration activities.
ment and personnel; (b) Incidental takes. If there is reason
(iv) The calculated volume of your to believe that protected species may
worst case discharge scenario (see 30 be incidentally taken by planned explo-
CFR 254.26(a)), and a comparison of the ration activities, you must describe
appropriate worst case discharge sce- how you will monitor for incidental
nario in your approved regional OSRP take of:
with the worst case discharge scenario (1) Threatened and endangered spe-
that could result from your proposed cies listed under the ESA; and
exploration activities; and (2) Marine mammals, as appropriate,
(v) A description of the worst case if you have not already received au-
discharge scenario that could result thorization for incidental take as may
from your proposed exploration activi- be necessary under the MMPA.
ties (see 30 CFR 254.26(b), (c), (d), and (c) Flower Garden Banks National Ma-
(e)). rine Sanctuary (FGBNMS). If you pro-
(b) Modeling report. If you model a po- pose to conduct exploration activities
tential oil or hazardous substance spill within the protective zones of the
in developing your EP, a modeling re- FGBNMS, a description of your provi-
port or the modeling results, or a ref- sions for monitoring the impacts of an
erence to such report or results if you oil spill on the environmentally sen-
have already submitted it to the Re- sitive resources at the FGBNMS.
gional Supervisor.
324
550.222 What lease stipulations infor- of drilling fluids and chemical products
mation must accompany the EP? (see 550.213(b) and (c)) you will trans-
A description of the measures you port from the onshore support facilities
took, or will take, to satisfy the condi- you will use to your drilling unit.
tions of lease stipulations related to (d) Solid and liquid wastes transpor-
your proposed exploration activities tation. A description of the transpor-
must accompany your EP. tation method and a brief description
of the composition, quantities, and des-
550.223 What mitigation measures in- tination(s) of solid and liquid wastes
formation must accompany the EP? (see 550.217(a)) you will transport from
(a) If you propose to use any meas- your drilling unit.
ures beyond those required by the regu- (e) Vicinity map. A map showing the
lations in this part to minimize or location of your proposed exploration
mitigate environmental impacts from activities relative to the shoreline. The
your proposed exploration activities, a map must depict the primary route(s)
description of the measures you will the support vessels and aircraft will
use must accompany your EP. use when traveling between the on-
(b) If there is reason to believe that shore support facilities you will use
protected species may be incidentally and your drilling unit.
taken by planned exploration activi-
550.225 What information on the on-
ties, you must include mitigation shore support facilities you will use
measures designed to avoid or mini- must accompany the EP?
mize the incidental take of:
(1) Threatened and endangered spe- The following information on the on-
cies listed under the ESA; and shore support facilities you will use
(2) Marine mammals, as appropriate, must accompany your EP:
if you have not already received au- (a) General. A description of the on-
thorization for incidental take as may shore facilities you will use to provide
be necessary under the MMPA. supply and service support for your
proposed exploration activities (e.g.,
550.224 What information on support service bases and mud company docks).
vessels, offshore vehicles, and air- (1) Indicate whether the onshore sup-
craft you will use must accompany port facilities are existing, to be con-
the EP? structed, or to be expanded.
The following information on the (2) If the onshore support facilities
support vessels, offshore vehicles, and are, or will be, located in areas not ad-
aircraft you will use must accompany jacent to the Western GOM, provide a
your EP: timetable for acquiring lands (includ-
(a) General. A description of the crew ing rights-of-way and easements) and
boats, supply boats, anchor handling constructing or expanding the facili-
vessels, tug boats, barges, ice manage- ties. Describe any State or Federal per-
ment vessels, other vessels, offshore ve- mits or approvals (dredging, filling,
hicles, and aircraft you will use to sup- etc.) that would be required for con-
port your exploration activities. The structing or expanding them.
description of vessels and offshore ve- (b) Air emissions. A description of the
hicles must estimate the storage ca- source, composition, frequency, and du-
pacity of their fuel tanks and the fre- ration of the air emissions (attrib-
quency of their visits to your drilling utable to your proposed exploration ac-
unit. tivities) likely to be generated by the
(b) Air emissions. A table showing the onshore support facilities you will use.
source, composition, frequency, and du- (c) Unusual solid and liquid wastes. A
ration of the air emissions likely to be description of the quantity, composi-
generated by the support vessels, off- tion, and method of disposal of any un-
shore vehicles, and aircraft you will usual solid and liquid wastes (attrib-
use that will operate within 25 miles of utable to your proposed exploration ac-
your drilling unit. tivities) likely to be generated by the
(c) Drilling fluids and chemical prod- onshore support facilities you will use.
ucts transportation. A description of the Unusual wastes are those wastes not
transportation method and quantities specifically addressed in the relevant
325
550.226 30 CFR Ch. V (7112 Edition)
National Pollution Discharge Elimi- (2) Air and water quality;

nation System (NPDES) permit. (3) Benthic communities, marine
(d) Waste disposal. A description of mammals, sea turtles, coastal and ma-
the onshore facilities you will use to rine birds, fish and shellfish, and plant
store and dispose of solid and liquid life;
wastes generated by your proposed ex- (4) Threatened or endangered species
ploration activities (see 550.217) and and their critical habitat as defined by
the types and quantities of such the Endangered Species Act of 1973;
wastes. (5) Sensitive biological resources or
550.226 What Coastal Zone Manage- habitats such as essential fish habitat,
ment Act (CZMA) information must refuges, preserves, special management
accompany the EP? areas identified in coastal management
programs, sanctuaries, rookeries, and
The following CZMA information
calving grounds;
must accompany your EP:
(a) Consistency certification. A copy of (6) Archaeological resources;
your consistency certification under (7) Socioeconomic resources includ-
section 307(c)(3)(B) of the CZMA (16 ing employment, existing offshore and
U.S.C. 1456(c)(3)(B)) and 15 CFR coastal infrastructure (including major
930.76(d) stating that the proposed ex- sources of supplies, services, energy,
ploration activities described in detail and water), land use, subsistence re-
in this EP comply with (name of sources and harvest practices, recre-
State(s)) approved coastal management ation, recreational and commercial
program(s) and will be conducted in a fishing (including typical fishing sea-
manner that is consistent with such sons, location, and type), minority and
program(s); and lower income groups, and coastal zone
(b) Other information. Information management programs;
as required by 15 CFR 930.76(a) and 15 (8) Coastal and marine uses such as
CFR 930.58(a)(2)) and Analysis as re- military activities, shipping, and min-
quired by 15 CFR 930.58(a)(3). eral exploration or development; and
(9) Other resources, conditions, and
550.227 What environmental impact activities identified by the Regional
analysis (EIA) information must ac- Supervisor.
company the EP?
(c) Environmental impacts. Your EIA
The following EIA information must must:
accompany your EP: (1) Analyze the potential direct and
(a) General requirements. Your EIA indirect impacts (including those from
must: accidents, cooling water intake struc-
(1) Assess the potential environ- tures, and those identified in relevant
mental impacts of your proposed explo- ESA biological opinions such as, but
ration activities; not limited to, those from noise, vessel
(2) Be project specific; and
collisions, and marine trash and debris)
(3) Be as detailed as necessary to as-
that your proposed exploration activi-
sist the Regional Supervisor in com-
ties will have on the identified re-
plying with the National Environ-
sources, conditions, and activities;
mental Policy Act (NEPA) of 1969 (42
U.S.C. 4321 et seq.) and other relevant (2) Analyze any potential cumulative
Federal laws such as the ESA and the impacts from other activities to those
MMPA. identified resources, conditions, and
(b) Resources, conditions, and activities. activities potentially impacted by your
Your EIA must describe those re- proposed exploration activities;
sources, conditions, and activities list- (3) Describe the type, severity, and
ed below that could be affected by your duration of these potential impacts and
proposed exploration activities, or that their biological, physical, and other
could affect the construction and oper- consequences and implications;
ation of facilities or structures, or the (4) Describe potential measures to
activities proposed in your EP. minimize or mitigate these potential
(1) Meteorology, oceanography, geol- impacts; and
ogy, and shallow geological or man- (5) Summarize the information you
made hazards; incorporate by reference.
326
(d) Consultation. Your EIA must in- within 15 working days after the Re-
clude a list of agencies and persons gional Supervisor receives your EP and
with whom you consulted, or with its accompanying information. The Re-
whom you will be consulting, regarding gional Supervisor will not deem your
potential impacts associated with your EP submitted until you have corrected
proposed exploration activities. all problems or deficiencies identified
(e) References cited. Your EIA must in the notice.
include a list of the references that you (c) Deemed submitted notification. The
cite in the EIA. Regional Supervisor will notify you
when the EP is deemed submitted.
550.228 What administrative informa-
tion must accompany the EP? 550.232 What actions will BOEM take
The following administrative infor- after the EP is deemed submitted?
mation must accompany your EP: (a) State and CZMA consistency re-
(a) Exempted information description views. Within 2 working days after
(public information copies only). A de- deeming your EP submitted under
scription of the general subject matter 550.231, the Regional Supervisor will
of the proprietary information that is use receipted mail or alternative meth-
included in the proprietary copies of od to send a public information copy of
your EP or its accompanying informa- the EP and its accompanying informa-
tion. tion to the following:
(b) Bibliography. (1) If you reference a (1) The Governor of each affected State.
previously submitted EP, DPP, DOCD, The Governor has 21 calendar days
study report, survey report, or other after receiving your deemed-submitted
material in your EP or its accom- EP to submit comments. The Regional
panying information, a list of the ref- Supervisor will not consider comments
erenced material; and received after the deadline.
(2) The location(s) where the Re- (2) The CZMA agency of each affected
gional Supervisor can inspect the cited State. The CZMA consistency review
referenced material if you have not period under section 307(c)(3)(B)(ii) of
submitted it. the CZMA (16 U.S.C. 1456(c)(3)(B)(ii))
and 15 CFR 930.78 begins when the
REVIEW AND DECISION PROCESS FOR THE States CZMA agency receives a copy
EP of your deemed-submitted EP, consist-
ency certification, and required nec-
550.231 After receiving the EP, what essary data and information (see 15
will BOEM do? CFR 930.77(a)(1)).
(a) Determine whether deemed sub- (b) BOEM compliance review. The Re-
mitted. Within 15 working days after regional Supervisor will review the ex-
ceiving your proposed EP and its ac- ploration activities described in your
companying information, the Regional proposed EP to ensure that they con-
Supervisor will review your submission form to the performance standards in
and deem your EP submitted if: 550.202.
(1) The submitted information, in- (c) BOEM environmental impact eval-
cluding the information that must ac- uation. The Regional Supervisor will
company the EP (refer to the list in evaluate the environmental impacts of
550.212), fulfills requirements and is the activities described in your pro-
sufficiently accurate; posed EP and prepare environmental
(2) You have provided all needed ad- documentation under the National En-
ditional information (see 550.201(b)); vironmental Policy Act (NEPA) (42
and U.S.C. 4321 et seq.) and the imple-
(3) You have provided the required menting regulations (40 CFR parts 1500
number of copies (see 550.206(a)). through 1508).
(b) Identify problems and deficiencies. (d) Amendments. During the review of
If the Regional Supervisor determines your proposed EP, the Regional Super-
that you have not met one or more of visor may require you, or you may
the conditions in paragraph (a) of this elect, to change your EP. If you elect
section, the Regional Supervisor will to amend your EP, the Regional Super-
notify you of the problem or deficiency visor may determine that your EP, as
327
550.233 30 CFR Ch. V (7112 Edition)
amended, is subject to the require- this section within 30 calendar days

ments of 550.231. after the Regional Supervisor deems
your EP submitted under 550.231, or
550.233 What decisions will BOEM receives the last amendment to your
make on the EP and within what proposed EP, whichever occurs later.
timeframe? (b) BOEM decision. By the deadline in
(a) Timeframe. The Regional Super- paragraph (a) of this section, the Re-
visor will take one of the actions gional Supervisor will take one of the
shown in the table in paragraph (b) of following actions:
The regional If . . . And then . . .
supervisor will . . .
(1) Approve your EP, It complies with all applicable requirements, The Regional Supervisor will notify you in writing
of the decision and may require you to meet
certain conditions, including those to provide
monitoring information.
(2) Require you to modify The Regional Supervisor finds that it is incon- The Regional Supervisor will notify you in writing
your proposed EP, sistent with the lease, the Act, the regulations of the decision and describe the modifications
prescribed under the Act, or other Federal you must make to your proposed EP to ensure
laws, it complies with all applicable requirements.
(3) Disapprove your EP, Your proposed activities would probably cause (i) The Regional Supervisor will notify you in writ-
serious harm or damage to life (including fish ing of the decision and describe the reason(s)
or other aquatic life); property; any mineral (in for disapproving your EP.
areas leased or not leased); the National se- (ii) BOEM may cancel your lease and com-
curity or defense; or the marine, coastal, or pensate you under 43 U.S.C. 1334(a)(2)(C)
human environment; and you cannot modify and the implementing regulations in
your proposed activities to avoid such condi- 550.182, 550.184, and 550.185 and 30
tion(s), CFR 556.77.
550.234 How do I submit a modified 550.235 If a State objects to the EPs

EP or resubmit a disapproved EP, coastal zone consistency certifi-
and when will BOEM make a deci- cation, what can I do?
sion? If an affected State objects to the
(a) Modified EP. If the Regional Su- coastal zone consistency certification
pervisor requires you to modify your accompanying your proposed EP with-
proposed EP under 550.233(b)(2), you in the timeframe prescribed in
must submit the modification(s) to the 550.233(a) or 550.234(c), you may do
Regional Supervisor in the same man- one of the following:
ner as for a new EP. You need submit (a) Amend your EP. Amend your EP
only information related to the pro- to accommodate the States objection
posed modification(s). and submit the amendment to the Re-
(b) Resubmitted EP. If the Regional gional Supervisor for approval. The
Supervisor disapproves your EP under amendment needs to only address in-
formation related to the States objec-
550.233(b)(3), you may resubmit the
tion.
disapproved EP if there is a change in
(b) Appeal. Appeal the States objec-
the conditions that were the basis of
tion to the Secretary of Commerce
its disapproval. using the procedures in 15 CFR part
(c) BOEM review and timeframe. The 930, subpart H. The Secretary of Com-
Regional Supervisor will use the per- merce will either:
formance standards in 550.202 to ei- (1) Grant your appeal by finding,
ther approve, require you to further under section 307(c)(3)(B)(iii) of the
modify, or disapprove your modified or CZMA (16 U.S.C. 1456(c)(3)(B)(iii)), that
resubmitted EP. The Regional Super- each activity described in detail in
visor will make a decision within 30 your EP is consistent with the objec-
calendar days after the Regional Su- tives of the CZMA, or is otherwise nec-
pervisor deems your modified or resub- essary in the interest of National secu-
mitted EP to be submitted, or receives rity; or
the last amendment to your modified (2) Deny your appeal, in which case
or resubmitted EP, whichever occurs you may amend your EP as described
later. in paragraph (a) of this section.
328
(c) Withdraw your EP. Withdraw your a brief description of their important
EP if you decide not to conduct your safety and pollution prevention fea-
proposed exploration activities. tures, and a table indicating the type
and the estimated maximum quantity
CONTENTS OF DEVELOPMENT AND PRO- of fuels and oil that will be stored on
DUCTION PLANS (DPP) AND DEVELOP- the facility (see definition of facility
MENT OPERATIONS COORDINATION DOC- (3) under 550.105).
UMENTS (DOCD) (e) Service fee. You must include pay-
ment of the service fee listed in
550.241 What must the DPP or DOCD 550.125.
include?
Your DPP or DOCD must include the 550.242 What information must ac-
following: company the DPP or DOCD?
(a) Description, objectives, and sched- The following information must ac-
ule. A description, discussion of the ob- company your DPP or DOCD.
jectives, and tentative schedule (from (a) General information required by
start to completion) of the develop- 550.243;
ment and production activities you (b) G&G information required by
propose to undertake. Examples of de- 550.244;
velopment and production activities (c) Hydrogen sulfide information re-
include: quired by 550.245;
(1) Development drilling; (d) Mineral resource conservation in-
(2) Well test flaring; formation required by 550.246;
(3) Installation of production plat- (e) Biological, physical, and socio-
forms, satellite structures, subsea economic information required by
wellheads and manifolds, and lease 550.247;
term pipelines (see definition at
(f) Solid and liquid wastes and dis-
550.105); and
charges information and cooling water
(4) Installation of production facili-
intake information required by
ties and conduct of production oper-
550.248;
ations.
(g) Air emissions information re-
(b) Location. The location and water
quired by 550.249;
depth of each of your proposed wells
(h) Oil and hazardous substance spills
and production facilities. Include a
information required by 550.250;
map showing the surface and bottom-
hole location and water depth of each (i) Alaska planning information re-
proposed well, the surface location of quired by 550.251;
each production facility, and the loca- (j) Environmental monitoring infor-
tions of all associated drilling unit and mation required by 550.252;
construction barge anchors. (k) Lease stipulations information
(c) Drilling unit. A description of the required by 550.253;
drilling unit and associated equipment (l) Mitigation measures information
you will use to conduct your proposed required by 550.254;
development drilling activities. Include (m) Decommissioning information re-
a brief description of its important quired by 550.255;
safety and pollution prevention fea- (n) Related facilities and operations
tures, and a table indicating the type information required by 550.256;
and the estimated maximum quantity (o) Support vessels and aircraft infor-
of fuels and oil that will be stored on mation required by 550.257;
the facility (see definition of facility (p) Onshore support facilities infor-
(3) under 550.105). mation required by 550.258;
(d) Production facilities. A description (q) Sulphur operations information
of the production platforms, satellite required by 550.259;
structures, subsea wellheads and mani- (r) Coastal zone management infor-
folds, lease term pipelines (see defini- mation required by 550.260;
tion at 550.105), production facilities, (s) Environmental impact analysis
umbilicals, and other facilities you will information required by 550.261; and
use to conduct your proposed develop- (t) Administrative information re-
ment and production activities. Include quired by 550.262.
329
550.243 30 CFR Ch. V (7112 Edition)
550.243 What general information (f) Bonds, oil spill financial responsi-
must accompany the DPP or bility, and well control statements. State-
DOCD? ments attesting that:
The following general information (1) The activities and facilities pro-
must accompany your DPP or DOCD: posed in your DPP or DOCD are or will
(a) Applications and permits. A listing, be covered by an appropriate bond
including filing or approval status, of under 30 CFR part 556, subpart I;
the Federal, State, and local applica- (2) You have demonstrated or will
demonstrate oil spill financial respon-
tion approvals or permits you must ob-
sibility for facilities proposed in your
tain to carry out your proposed devel-
DPP or DOCD, according to 30 CFR
opment and production activities.
part 553; and
(b) Drilling fluids. A table showing the
(3) You have or will have the finan-
projected amount, discharge rate, and
cial capability to drill a relief well and
chemical constituents for each type
conduct other emergency well control
(i.e., water based, oil based, synthetic
operations.
based) of drilling fluid you plan to use
(g) Suspensions of production or oper-
to drill your proposed development
ations. A brief discussion of any suspen-
wells.
sions of production or suspensions of
(c) Production. The following produc- operations that you anticipate may be
tion information: necessary in the course of conducting
(1) Estimates of the average and peak your activities under the DPP or
rates of production for each type of DOCD.
production and the life of the res- (h) Blowout scenario. A scenario for a
ervoir(s) you intend to produce; and potential blowout of the proposed well
(2) The chemical and physical charac- in your DPP or DOCD that you expect
teristics of the produced oil (see defini- will have the highest volume of liquid
tion under 30 CFR 254.6) that you will hydrocarbons. Include the estimated
handle or store at the facilities you flow rate, total volume, and maximum
will use to conduct your proposed de- duration of the potential blowout.
velopment and production activities. Also, discuss the potential for the well
(d) Chemical products. A table showing to bridge over, the likelihood for sur-
the name and brief description, quan- face intervention to stop the blowout,
tities to be stored, storage method, and the availability of a rig to drill a relief
rates of usage of the chemical products well, and rig package constraints. Esti-
you will use to conduct your proposed mate the time it would take to drill a
development and production activities. relief well.
You need list only those chemical prod- (i) Contact. The name, mailing ad-
ucts you will store or use in quantities dress, (e-mail address if available), and
greater than the amounts defined as telephone number of the person with
Reportable Quantities in 40 CFR part whom the Regional Supervisor and the
302, or amounts specified by the Re- affected State(s) can communicate
gional Supervisor. about your DPP or DOCD.
(e) New or unusual technology. A de-
scription and discussion of any new or 550.244 What geological and geo-
unusual technology (see definition physical (G&G) information must
under 550.200) you will use to carry accompany the DPP or DOCD?
out your proposed development and The following G&G information must
production activities. In the public in- accompany your DPP or DOCD:
formation copies of your DPP or (a) Geological description. A geological
DOCD, you may exclude any propri- description of the prospect(s).
etary information from this descrip- (b) Structure contour maps. Current
tion. In that case, include a brief dis- structure contour maps (depth-based,
cussion of the general subject matter expressed in feet subsea) showing
of the omitted information. If you will depths of expected productive forma-
not use any new or unusual technology tions and the locations of proposed
to carry out your proposed develop- wells.
ment and production activities, include (c) Two dimensional (2D) or three-di-
a statement so indicating. mensional (3D) seismic lines. Copies of
330
migrated and annotated 2D or 3D 550.245 What hydrogen sulfide (H2S)

seismic lines (with depth scale) inter- information must accompany the
secting at or near your proposed well DPP or DOCD?
locations. You are not required to con- The following H2S information, as ap-
duct both 2D and 3D seismic surveys plicable, must accompany your DPP or
if you choose to conduct only one type DOCD:
of survey. If you have conducted both (a) Concentration. The estimated con-
types of surveys, the Regional Super- centration of any H2S you might en-
visor may instruct you to submit the counter or handle while you conduct
results of both surveys. You must in- your proposed development and produc-
terpret and display this information. tion activities.
Provide this information as an enclo- (b) Classification. Under 30 CFR
sure to only one proprietary copy of 250.490(c), a request that the Regional
your DPP or DOCD. Supervisor classify the area of your
(d) Geological cross-sections. Inter- proposed development and production
preted geological cross-sections show- activities as either H2S absent, H2S
ing the depths of expected productive present, or H2S unknown. Provide suffi-
formations. cient information to justify your re-
(e) Shallow hazards report. A shallow quest.
hazards report based on information (c) H 2S Contingency Plan. If you re-
obtained from a high-resolution geo- quest that the Regional Supervisor
physical survey, or a reference to such classify the area of your proposed de-
report if you have already submitted it velopment and production activities as
to the Regional Supervisor. either H2S present or H2S unknown, an
(f) Shallow hazards assessment. For H2S Contingency Plan prepared under
each proposed well, an assessment of 30 CFR 250.490(f), or a reference to an
any seafloor and subsurface geologic approved or submitted H2S Contin-
and manmade features and conditions gency Plan that covers the proposed
that may adversely affect your pro- development and production activities.
(d) Modeling report. (1) If you have de-
posed drilling operations.
termined or estimated that the con-
(g) High resolution seismic lines. A copy
centration of any H2S you may encoun-
of the high-resolution survey line clos-
ter or handle while you conduct your
est to each of your proposed well loca-
development and production activities
tions. Because of its volume, provide
will be greater than 500 parts per mil-
this information as an enclosure to
lion (ppm), you must:
only one proprietary copy of your DPP (i) Model a potential worst case H2S
or DOCD. You are not required to pro- release from the facilities you will use
vide this information if the surface lo- to conduct your proposed development
cation of your proposed well has been and production activities; and
approved in a previously submitted EP, (ii) Include a modeling report or
DPP, or DOCD. modeling results, or a reference to such
(h) Stratigraphic column. A general- report or results if you have already
ized biostratigraphic/lithostratigraphic submitted it to the Regional Super-
column from the surface to the total visor.
depth of each proposed well. (2) The analysis in the modeling re-
(i) Time-versus-depth chart. A seismic port must be specific to the particular
travel time-versus-depth chart based site of your development and produc-
on the appropriate velocity analysis in tion activities, and must consider any
the area of interpretation and speci- nearby human-occupied OCS facilities,
fying the geodetic datum. shipping lanes, fishery areas, and other
(j) Geochemical information. A copy of points where humans may be subject to
any geochemical reports you used or potential exposure from an H2S release
generated. from your proposed activities.
(k) Future G&G activities. A brief de- (3) If any H2S emissions are projected
scription of the G&G explorations and to affect an onshore location in con-
development G&G activities that you centrations greater than 10 ppm, the
may conduct for lease or unit purposes modeling analysis must be consistent
after your DPP or DOCD is approved. with the EPAs risk management plan
331
550.246 30 CFR Ch. V (7112 Edition)
methodologies outlined in 40 CFR part (c) Socioeconomic study reports. Socio-

68. economic information related to your
proposed development and production
550.246 What mineral resource con- activities.
servation information must accom-
pany the DPP or DOCD? 550.248 What solid and liquid wastes
The following mineral resource con- and discharges information and
servation information, as applicable, cooling water intake information
must accompany your DPP or DOCD: must accompany the DPP or
(a) Technology and reservoir engineer- DOCD?
ing practices and procedures. A descrip- The following solid and liquid wastes
tion of the technology and reservoir and discharges information and cooling
engineering practices and procedures water intake information must accom-
you will use to increase the ultimate pany your DPP or DOCD:
recovery of oil and gas (e.g., secondary, (a) Projected wastes. A table providing
tertiary, or other enhanced recovery the name, brief description, projected
practices). If you will not use enhanced quantity, and composition of solid and
recovery practices initially, provide an liquid wastes (such as spent drilling
explanation of the methods you consid- fluids, drill cuttings, trash, sanitary
ered and the reasons why you are not and domestic wastes, produced waters,
using them. and chemical product wastes) likely to
(b) Technology and recovery practices be generated by your proposed develop-
and procedures. A description of the ment and production activities. De-
technology and recovery practices and scribe:
procedures you will use to ensure opti- (1) The methods you used for deter-
mum recovery of oil and gas or sul- mining this information; and
phur. (2) Your plans for treating, storing,
(c) Reservoir development. A discussion and downhole disposal of these wastes
of exploratory well results, other res- at your facility location(s).
ervoir data, proposed well spacing, (b) Projected ocean discharges. If any
completion methods, and other rel- of your solid and liquid wastes will be
evant well plan information. discharged overboard or are planned
550.247 What biological, physical, discharges from manmade islands:
and socioeconomic information (1) A table showing the name, pro-
must accompany the DPP or jected amount, and rate of discharge
DOCD? for each waste type; and
If you obtain the following informa- (2) A description of the discharge
tion in developing your DPP or DOCD, method (such as shunting through a
or if the Regional Supervisor requires downpipe, adding to a produced water
you to obtain it, you must include a re- stream, etc.) you will use.
port, or the information obtained, or a (c) National Pollutant Discharge Elimi-
reference to such a report or informa- nation System (NPDES) permit. (1) A dis-
tion if you have already submitted it cussion of how you will comply with
to the Regional Supervisor, as accom- the provisions of the applicable general
panying information: NPDES permit that covers your pro-
(a) Biological environment reports. posed development and production ac-
Site-specific information on tivities; or
chemosynthetic communities, feder- (2) A copy of your application for an
ally listed threatened or endangered individual NPDES permit. Briefly de-
species, marine mammals protected scribe the major discharges and meth-
under the MMPA, sensitive underwater ods you will use for compliance.
features, marine sanctuaries, critical (d) Modeling report. A modeling report
habitat designated under the ESA, or or the modeling results (if you modeled
other areas of biological concern. the discharges of your projected solid
(b) Physical environment reports. Site- or liquid wastes in developing your
specific meteorological, physical DPP or DOCD), or a reference to such
oceanographic, geotechnical reports, or report or results if you have already
archaeological reports (if required submitted it to the Regional Super-
under 550.194). visor.
332
(e) Projected cooling water intake. A (4) You must base the projected emis-
table for each cooling water intake sions on the maximum rated capacity
structure likely to be used by your pro- of the equipment and the maximum
posed development and production ac- throughput of the facility you will use
tivities that includes a brief descrip- to conduct your proposed development
tion of the cooling water intake struc- and production activities under its
ture, daily water intake rate, water in- physical and operational design.
take through-screen velocity, percent- (5) If the specific drilling unit has not
age of water intake used for cooling yet been determined, you must use the
water, mitigation measures for reduc- maximum emission estimates for the
ing impingement and entrainment of type of drilling unit you will use.
aquatic organisms, and biofouling pre-
(b) Emission reduction measures. A de-
vention measures.
scription of any proposed emission re-
550.249 What air emissions informa- duction measures, including the af-
tion must accompany the DPP or fected source(s), the emission reduc-
DOCD? tion control technologies or proce-
The following air emissions informa- dures, the quantity of reductions to be
tion, as applicable, must accompany achieved, and any monitoring system
your DPP or DOCD: you propose to use to measure emis-
(a) Projected emissions. Tables showing sions.
the projected emissions of sulphur di- (c) Processes, equipment, fuels, and
oxide (SO2), particulate matter in the combustibles. A description of processes,
form of PM10 and PM2.5 when applica- processing equipment, combustion
ble, nitrogen oxides (NOX), carbon mon- equipment, fuels, and storage units.
oxide (CO), and volatile organic com- You must include the frequency, dura-
pounds (VOC) that will be generated by tion, and maximum burn rate of any
your proposed development and produc- flaring activity.
tion activities. (d) Distance to shore. Identification of
(1) For each source on or associated the distance of the site of your pro-
with the facility you will use to con- posed development and production ac-
duct your proposed development and tivities from the mean high water
production activities, you must list: mark (mean higher high water mark on
(i) The projected peak hourly emis- the Pacific coast) of the adjacent
sions; State.
(ii) The total annual emissions in
(e) Non-exempt facilities. A description
tons per year;
of how you will comply with 550.303
(iii) Emissions over the duration of
when the projected emissions of SO2,
the proposed development and produc-
PM, NOX, CO, or VOC that will be gen-
tion activities;
erated by your proposed development
(iv) The frequency and duration of
emissions; and and production activities are greater
(v) The total of all emissions listed in than the respective emission exemp-
paragraph (a)(1)(i) through (iv) of this tion amounts E calculated using the
section. formulas in 550.303(d). When BOEM re-
(2) If your proposed production and quires air quality modeling, you must
development activities would result in use the guidelines in Appendix W of 40
an increase in the emissions of an air CFR part 51 with a model approved by
pollutant from your facility to an the Director. Submit the best available
amount greater than the amount speci- meteorological information and data
fied in your previously approved DPP consistent with the model(s) used.
or DOCD, you must show the revised (f) Modeling report. A modeling report
emission rates for each source as well or the modeling results (if 550.303 re-
as the incremental change for each quires you to use an approved air qual-
source. ity model to model projected air emis-
(3) You must provide the basis for all sions in developing your DPP or
calculations, including engine size and DOCD), or a reference to such report or
rating, and applicable operational in- results if you have already submitted
formation. it to the Regional Supervisor.
333
550.250 30 CFR Ch. V (7112 Edition)
550.250 What oil and hazardous sub- (a) Emergency plans. A description of
stance spills information must ac- your emergency plans to respond to a
company the DPP or DOCD? blowout, loss or disablement of a drill-
The following information regarding ing unit, and loss of or damage to sup-
potential spills of oil (see definition port craft; and
under 30 CFR 254.6) and hazardous sub- (b) Critical operations and curtailment
stances (see definition under 40 CFR procedures. Critical operations and cur-
part 116), as applicable, must accom- tailment procedures for your develop-
pany your DPP or DOCD: ment and production activities. The
(a) Oil spill response planning. The ma- procedures must identify ice condi-
terial required under paragraph (a)(1) tions, weather, and other constraints
or (a)(2) of this section: under which the development and pro-
(1) An Oil Spill Response Plan duction activities will either be cur-
(OSRP) for the facilities you will use to tailed or not proceed.
conduct your proposed development
and production activities prepared ac- 550.252 What environmental moni-
cording to the requirements of 30 CFR toring information must accompany
part 254, subpart B; or the DPP or DOCD?
(2) Reference to your approved re- The following environmental moni-
gional OSRP (see 30 CFR 254.3) to in- toring information, as applicable, must
clude: accompany your DPP or DOCD:
(i) A discussion of your regional (a) Monitoring systems. A description
OSRP; of any existing and planned monitoring
(ii) The location of your primary oil systems that are measuring, or will
spill equipment base and staging area; measure, environmental conditions or
(iii) The name(s) of your oil spill re- will provide project-specific data or in-
moval organization(s) for both equip- formation on the impacts of your de-
ment and personnel; velopment and production activities.
(iv) The calculated volume of your (b) Incidental takes. If there is reason
worst case discharge scenario (see 30 to believe that protected species may
CFR 254.26(a)), and a comparison of the be incidentally taken by planned devel-
appropriate worst case discharge sce- opment and production activities, you
nario in your approved regional OSRP must describe how you will monitor for
with the worst case discharge scenario incidental take of:
that could result from your proposed (1) Threatened and endangered spe-
development and production activities;
cies listed under the ESA; and
and
(2) Marine mammals, as appropriate,
(v) A description of the worst case oil
if you have not already received au-
spill scenario that could result from
thorization for incidental take of ma-
your proposed development and produc-
tion activities (see 30 CFR 254.26(b), (c), rine mammals as may be necessary
(d), and (e)). under the MMPA.
(b) Modeling report. If you model a po- (c) Flower Garden Banks National Ma-
tential oil or hazardous substance spill rine Sanctuary (FGBNMS). If you pro-
in developing your DPP or DOCD, a pose to conduct development and pro-
modeling report or the modeling reduction activities within the protec-
sults, or a reference to such report or tive zones of the FGBNMS, a descrip-
results if you have already submitted tion of your provisions for monitoring
it to the Regional Supervisor. the impacts of oil spill on the environ-
mentally sensitive resources of the
550.251 If I propose activities in the FGBNMS.
Alaska OCS Region, what planning
information must accompany the 550.253 What lease stipulations infor-
DPP? mation must accompany the DPP or
DOCD?
If you propose development and pro-
duction activities in the Alaska OCS A description of the measures you
Region, the following planning infor- took, or will take, to satisfy the condi-
mation must accompany your DPP: tions of lease stipulations related to
334
your proposed development and produc- you will use to transport your produc-
tion activities must accompany your tion to shore, including:
DPP or DOCD. (1) Routes of any new pipelines;
(2) Information concerning barges
550.254 What mitigation measures in- and shuttle tankers, including the stor-
formation must accompany the DPP age capacity of the transport vessel(s),
or DOCD?
and the number of transfers that will
(a) If you propose to use any meas- take place per year;
ures beyond those required by the regu- (3) Information concerning any inter-
lations in this part to minimize or mediate storage or processing facili-
mitigate environmental impacts from ties;
your proposed development and produc- (4) An estimate of the quantities of
tion activities, a description of the oil, gas, or sulphur to be transported
measures you will use must accompany from your production facilities; and
your DPP or DOCD. (5) A description and location of the
(b) If there is reason to believe that primary onshore terminal.
protected species may be incidentally
taken by planned development and pro- 550.257 What information on the sup-
duction activities, you must include port vessels, offshore vehicles, and
mitigation measures designed to avoid aircraft you will use must accom-
or minimize that incidental take of: pany the DPP or DOCD?
(1) Threatened and endangered spe- The following information on the
cies listed under the ESA; and support vessels, offshore vehicles, and
(2) Marine mammals, as appropriate, aircraft you will use must accompany
if you have not already received au- your DPP or DOCD:
thorization for incidental take as may (a) General. A description of the crew
be necessary under the MMPA. boats, supply boats, anchor handling
550.255 What decommissioning infor- vessels, tug boats, barges, ice manage-
mation must accompany the DPP or ment vessels, other vessels, offshore ve-
DOCD? hicles, and aircraft you will use to sup-
A brief description of how you intend port your development and production
to decommission your wells, platforms, activities. The description of vessels
pipelines, and other facilities, and and offshore vehicles must estimate
clear your site(s) must accompany the storage capacity of their fuel tanks
your DPP or DOCD. and the frequency of their visits to the
facilities you will use to conduct your
550.256 What related facilities and proposed development and production
operations information must ac- activities.
company the DPP or DOCD? (b) Air emissions. A table showing the
The following information regarding source, composition, frequency, and du-
facilities and operations directly re- ration of the air emissions likely to be
lated to your proposed development generated by the support vessels, off-
and production activities must accom- shore vehicles, and aircraft you will
pany your DPP or DOCD. use that will operate within 25 miles of
(a) OCS facilities and operations. A de- the facilities you will use to conduct
scription and location of any of the fol- your proposed development and produc-
lowing that directly relate to your pro- tion activities.
posed development and production ac- (c) Drilling fluids and chemical prod-
tivities: ucts transportation. A description of the
(1) Drilling units; transportation method and quantities
(2) Production platforms; of drilling fluids and chemical products
(3) Right-of-way pipelines (including (see 550.243(b) and (d)) you will trans-
those that transport chemical products port from the onshore support facilities
and produced water); and you will use to the facilities you will
(4) Other facilities and operations lo- use to conduct your proposed develop-
cated on the OCS (regardless of owner- ment and production activities.
ship). (d) Solid and liquid wastes transpor-
(b) Transportation system. A discus- tation. A description of the transpor-
sion of the transportation system that tation method and a brief description
335
550.258 30 CFR Ch. V (7112 Edition)
of the composition, quantities, and des- store and dispose of solid and liquid
tination(s) of solid and liquid wastes wastes generated by your proposed de-
(see 550.248(a)) you will transport from velopment and production activities
the facilities you will use to conduct (see 550.248(a)) and the types and
your proposed development and produc- quantities of such wastes.
tion activities.
(e) Vicinity map. A map showing the 550.259 What sulphur operations in-
location of your proposed development formation must accompany the DPP
or DOCD?
and production activities relative to
the shoreline. The map must depict the If you are proposing to conduct sul-
primary route(s) the support vessels phur development and production ac-
and aircraft will use when traveling be- tivities, the following information
tween the onshore support facilities must accompany your DPP or DOCD:
you will use and the facilities you will (a) Bleedwater. A discussion of the
use to conduct your proposed develop- bleedwater that will be generated by
ment and production activities. your proposed sulphur activities, in-
cluding the measures you will take to
550.258 What information on the on- mitigate the potential toxic or thermal
shore support facilities you will use impacts on the environment caused by
must accompany the DPP or the discharge of bleedwater.
DOCD?
(b) Subsidence. An estimate of the de-
The following information on the on- gree of subsidence expected at various
shore support facilities you will use stages of your sulphur development
must accompany your DPP or DOCD: and production activities, and a de-
(a) General. A description of the on- scription of the measures you will take
shore facilities you will use to provide to mitigate the effects of subsidence on
supply and service support for your existing or potential oil and gas pro-
proposed development and production duction, production platforms, and pro-
activities (e.g., service bases and mud duction facilities, and to protect the
company docks). environment.
(1) Indicate whether the onshore sup-
port facilities are existing, to be con- 550.260 What Coastal Zone Manage-
structed, or to be expanded; and ment Act (CZMA) information must
(2) For DPPs only, provide a time- accompany the DPP or DOCD?
table for acquiring lands (including The following CZMA information
rights-of-way and easements) and con- must accompany your DPP or DOCD:
structing or expanding any of the on- (a) Consistency certification. A copy of
shore support facilities. your consistency certification under
(b) Air emissions. A description of the section 307(c)(3)(B) of the CZMA (16
source, composition, frequency, and du- U.S.C. 1456(c)(3)(B)) and 15 CFR 930.76(c)
ration of the air emissions (attrib- stating that the proposed development
utable to your proposed development and production activities described in
and production activities) likely to be detail in this DPP or DOCD comply
generated by the onshore support fa- with (name of State(s)) approved coast-
cilities you will use. al management program(s) and will be
(c) Unusual solid and liquid wastes. A conducted in a manner that is con-
description of the quantity, composi- sistent with such program(s); and
tion, and method of disposal of any un- (b) Other information. Information
usual solid and liquid wastes (attrib- as required by 15 CFR 930.76(a) and 15
utable to your proposed development CFR 930.58(a)(2)) and Analysis as re-
and production activities) likely to be quired by 15 CFR 930.58(a)(3).
generated by the onshore support fa-
cilities you will use. Unusual wastes 550.261 What environmental impact
are those wastes not specifically ad- analysis (EIA) information must ac-
dressed in the relevant National Pollu- company the DPP or DOCD?
tion Discharge Elimination System The following EIA information must
(NPDES) permit. accompany your DPP or DOCD:
(d) Waste disposal. A description of (a) General requirements. Your EIA
the onshore facilities you will use to must:
336
(1) Assess the potential environ- (c) Environmental impacts. Your EIA
mental impacts of your proposed devel- must:
opment and production activities; (1) Analyze the potential direct and
(2) Be project specific; and indirect impacts (including those from
(3) Be as detailed as necessary to as- accidents, cooling water intake struc-
sist the Regional Supervisor in com- tures, and those identified in relevant
plying with the NEPA of 1969 (42 U.S.C. ESA biological opinions such as, but
4321 et seq.) and other relevant Federal not limited to, those from noise, vessel
laws such as the ESA and the MMPA. collisions, and marine trash and debris)
(b) Resources, conditions, and activities. that your proposed development and
Your EIA must describe those reproduction activities will have on the
sources, conditions, and activities list- identified resources, conditions, and
ed below that could be affected by your activities;
proposed development and production (2) Describe the type, severity, and
activities, or that could affect the con- duration of these potential impacts and
struction and operation of facilities or their biological, physical, and other
structures or the activities proposed in consequences and implications;
your DPP or DOCD. (3) Describe potential measures to
(1) Meteorology, oceanography, geol- minimize or mitigate these potential
ogy, and shallow geological or man- impacts;
made hazards; (4) Describe any alternatives to your
(2) Air and water quality; proposed development and production
(3) Benthic communities, marine activities that you considered while de-
mammals, sea turtles, coastal and ma- veloping your DPP or DOCD, and com-
rine birds, fish and shellfish, and plant pare the potential environmental im-
life; pacts; and
(4) Threatened or endangered species (5) Summarize the information you
and their critical habitat; incorporate by reference.
(5) Sensitive biological resources or (d) Consultation. Your EIA must in-
habitats such as essential fish habitat, clude a list of agencies and persons
refuges, preserves, special management with whom you consulted, or with
areas identified in coastal management whom you will be consulting, regarding
programs, sanctuaries, rookeries, and potential impacts associated with your
calving grounds; proposed development and production
(6) Archaeological resources; activities.
(7) Socioeconomic resources (includ- (e) References cited. Your EIA must
ing the approximate number, timing, include a list of the references that you
and duration of employment of persons cite in the EIA.
engaged in onshore support and con-
struction activities), population (in- 550.262 What administrative informa-
cluding the approximate number of tion must accompany the DPP or
people and families added to local on- DOCD?
shore areas), existing offshore and on- The following administrative infor-
shore infrastructure (including major mation must accompany your DPP or
sources of supplies, services, energy, DOCD:
and water), types of contractors or ven- (a) Exempted information description
dors that may place a demand on local (public information copies only). A de-
goods and services, land use, subsist- scription of the general subject matter
ence resources and harvest practices, of the proprietary information that is
recreation, recreational and commer- included in the proprietary copies of
cial fishing (including seasons, loca- your DPP or DOCD or its accom-
tion, and type), minority and lower in- panying information.
come groups, and CZMA programs; (b) Bibliography.
(8) Coastal and marine uses such as (1) If you reference a previously sub-
military activities, shipping, and min- mitted EP, DPP, DOCD, study report,
eral exploration or development; and survey report, or other material in
(9) Other resources, conditions, and your DPP or DOCD or its accom-
activities identified by the Regional panying information, a list of the ref-
Supervisor. erenced material; and
337
550.266 30 CFR Ch. V (7112 Edition)
(2) The location(s) where the Re- DPP or DOCD to submit comments and
gional Supervisor can inspect the cited recommendations. The Regional Super-
referenced material if you have not visor will not consider comments and
submitted it. recommendations received after the
deadline.
REVIEW AND DECISION PROCESS FOR THE (2) The executive of any affected local
DPP OR DOCD government who requests a copy. The ex-
ecutive of any affected local govern-
550.266 After receiving the DPP or
DOCD, what will BOEM do? ment has 60 calendar days after receipt
of your deemed-submitted DPP or
(a) Determine whether deemed sub- DOCD to submit comments and rec-
mitted. Within 25 working days after re- ommendations. The Regional Super-
ceiving your proposed DPP or DOCD visor will not consider comments and
and its accompanying information, the recommendations received after the
Regional Supervisor will deem your deadline. The executive of any affected
DPP or DOCD submitted if: local government must forward all
(1) The submitted information, in- comments and recommendations to the
cluding the information that must ac- respective Governor before submitting
company the DPP or DOCD (refer to them to the Regional Supervisor.
the list in 550.242), fulfills require-
(3) The CZMA agency of each affected
ments and is sufficiently accurate;
State. The CZMA consistency review
(2) You have provided all needed ad-
period under section 307(c)(3)(B)(ii) of
ditional information (see 550.201(b));
the CZMA (16 U.S.C.1456(c)(3)(B)(ii))
and
and 15 CFR 930.78 begins when the
(3) You have provided the required
States CZMA agency receives a copy of
number of copies (see 550.206(a)).
(b) Identify problems and deficiencies. your deemed-submitted DPP or DOCD,
If the Regional Supervisor determines consistency certification, and required
that you have not met one or more of necessary data/information (see 15 CFR
the conditions in paragraph (a) of this 930.77(a)(1)).
section, the Regional Supervisor will (b) General public. Within 2 working
notify you of the problem or deficiency days after the Regional Supervisor
within 25 working days after the Re- deems your DPP or DOCD submitted
gional Supervisor receives your DPP or under 550.266, the Regional Supervisor
DOCD and its accompanying informa- will make a public information copy of
tion. The Regional Supervisor will not the DPP or DOCD and its accom-
deem your DPP or DOCD submitted panying information available for re-
until you have corrected all problems view to any appropriate interstate re-
or deficiencies identified in the notice. gional entity and the public at the ap-
(c) Deemed submitted notification. The propriate BOEM Regional Public Infor-
Regional Supervisor will notify you mation Office. Any interested Federal
when your DPP or DOCD is deemed agency or person may submit com-
submitted. ments and recommendations to the Re-
gional Supervisor. Comments and rec-
550.267 What actions will BOEM take ommendations must be received by the
after the DPP or DOCD is deemed Regional Supervisor within 60 calendar
submitted? days after the DPP or DOCD including
(a) State, local government, CZMA con- its accompanying information is made
sistency, and other reviews. Within 2 available.
working days after the Regional Super- (c) BOEM compliance review. The Re-
visor deems your DPP or DOCD sub- gional Supervisor will review the de-
mitted under 550.266, the Regional Su- velopment and production activities in
pervisor will use receipted mail or al- your proposed DPP or DOCD to ensure
ternative method to send a public in- that they conform to the performance
formation copy of the DPP or DOCD standards in 550.202.
and its accompanying information to (d) Amendments. During the review of
the following: your proposed DPP or DOCD, the Re-
(1) The Governor of each affected State. gional Supervisor may require you, or
The Governor has 60 calendar days you may elect, to change your DPP or
after receiving your deemed-submitted DOCD. If you elect to amend your DPP
338
or DOCD, the Regional Supervisor may (c) Draft EIS. The Regional Super-
determine that your DPP or DOCD, as visor will send copies of the draft EIS
amended, is subject to the require- to the Governor of each affected State
ments of 550.266. and to the executive of each affected
local government who requests a copy.
550.268 How does BOEM respond to Additionally, when BOEM prepares a
recommendations?
DPP EIS, and the Federally-approved
(a) Governor. The Regional Supervisor CZMA program for an affected State
will accept those recommendations requires a DPP NEPA document for use
from the Governor that provide a rea- in determining consistency, the Re-
sonable balance between the National gional Supervisor will forward a copy
interest and the well-being of the citi- of the draft EIS to the States CZMA
zens of each affected State. The Re- agency. The Regional Supervisor will
gional Supervisor will explain in writ- also make copies of the draft EIS avail-
ing to the Governor the reasons for re- able to any appropriate Federal agen-
jecting any of his or her recommenda- cy, interstate regional entity, and the
tions. public.
(b) Local governments and the public.
The Regional Supervisor may accept 550.270 What decisions will BOEM
recommendations from the executive make on the DPP or DOCD and
of any affected local government or the within what timeframe?
public.
(a) Timeframe. The Regional Super-
(c) Availability. The Regional Super-
visor will make all comments and rec- visor will act on your deemed-sub-
ommendations available to the public mitted DPP or DOCD as follows:
upon request. (1) The Regional Supervisor will
make a decision within 60 calendar
550.269 How will BOEM evaluate the days after the latest of the day that:
environmental impacts of the DPP (i) The comment period provided in
or DOCD? 550.267(a)(1), (a)(2), and (b) closes;
The Regional Supervisor will evalu- (ii) The final EIS for a DPP is re-
ate the environmental impacts of the leased or adopted; or
activities described in your proposed (iii) The last amendment to your pro-
DPP or DOCD and prepare environ- posed DOCD is received by the Re-
mental documentation under the Na- gional Supervisor.
tional Environmental Policy Act (2) Notwithstanding paragraph (a)(1)
(NEPA) (42 U.S.C.4321 et seq.) and the of this section, BOEM will not approve
implementing regulations (40 CFR your DPP or DOCD until either:
parts 1500 through 1508).
(i) All affected States with approved
(a) Environmental impact statement
CZMA programs concur, or have been
(EIS) declaration. At least once in each
conclusively presumed to concur, with
OCS planning area (other than the
Western and Central GOM Planning your DPP or DOCD consistency certifi-
Areas), the Director will declare that cation under section 307(c)(3)(B)(i) and
the approval of a proposed DPP is a (ii) of the CZMA (16 U.S.C.
major Federal action, and BOEM will 1456(c)(3)(B)(i) and (ii)); or
prepare an EIS. (ii) The Secretary of Commerce has
(b) Leases or units in the vicinity. Be- made a finding authorized by section
fore or immediately after the Director 307(c)(3)(B)(iii) of the CZMA (16 U.S.C.
determines that preparation of an EIS 1456(c)(3)(B)(iii)) that each activity de-
is required, the Regional Supervisor scribed in the DPP or DOCD is con-
may require lessees and operators of sistent with the objectives of the
leases or units in the vicinity of the CZMA, or is otherwise necessary in the
proposed development and production interest of National security.
activities for which DPPs have not (b) BOEM decision. By the deadline in
been approved to submit information paragraph (a) of this section, the Re-
about preliminary plans for their gional Supervisor will take one of the
leases or units. following actions:
339
550.271 30 CFR Ch. V (7112 Edition)
The regional supervisor will . . . If . . . And then . . .
(1) Approve your DPP or It complies with all applicable The Regional Supervisor will notify you in writing of the deci-
DOCD, requirements, sion and may require you to meet certain conditions, in-
cluding those to provide monitoring information.
(2) Require you to modify your It fails to make adequate pro- The Regional Supervisor will notify you in writing of the deci-
proposed DPP or DOCD, visions for safety, environ- sion and describe the modifications you must make to your
mental protection, or con- proposed DPP or DOCD to ensure it complies with all ap-
servation of natural re- plicable requirements.
sources or otherwise does
not comply with the lease,
the Act, the regulations pre-
scribed under the Act, or
other Federal laws,
(3) Disapprove your DPP or Any of the reasons in (i) The Regional Supervisor will notify you in writing of the de-
DOCD, 550.271 apply, cision and describe the reason(s) for disapproving your
DPP or DOCD; and
(ii) BOEM may cancel your lease and compensate you under
43 U.S.C. 1351(h)(2)(C) and the implementing regulations
in 550.183 through 550.185 and 30 CFR 556.77.
550.271 For what reasons will BOEM makes a finding authorized by section
disapprove the DPP or DOCD? 307(c)(3)(B)(iii) of the CZMA (16 U.S.C.
The Regional Supervisor will dis- 1456(c)(3)(B)(iii)) that each activity de-
approve your proposed DPP or DOCD if scribed in your DPP or DOCD is con-
one of the four reasons in this section sistent with the objectives of the
applies: CZMA, or is otherwise necessary in the
(a) Non-compliance. The Regional Su- interest of National security. In that
pervisor determines that you have event, you do not need to resubmit
failed to demonstrate that you can your DPP or DOCD for approval under
comply with the requirements of the 550.273(b).
Outer Continental Shelf Lands Act, as (c) National security or defense con-
amended (Act), implementing regula- flicts. Your proposed activities would
tions, or other applicable Federal laws. threaten National security or defense.
(b) No consistency concurrence. (1) An (d) Exceptional circumstances. The Re-
affected State has not yet issued a gional Supervisor determines because
final decision on your coastal zone con- of exceptional geological conditions,
sistency certification (see 15 CFR exceptional resource values in the ma-
930.78(a)); or rine or coastal environment, or other
(2) An affected State objects to your exceptional circumstances that all of
coastal zone consistency certification, the following apply:
and the Secretary of Commerce, under (1) Implementing your DPP or DOCD
section 307(c)(3)(B)(iii) of the CZMA (16 would cause serious harm or damage to
U.S.C. 1456(c)(3)(B)(iii)), has not found life (including fish and other aquatic
that each activity described in the life), property, any mineral deposits (in
DPP or DOCD is consistent with the areas leased or not leased), the Na-
objectives of the CZMA or is otherwise tional security or defense, or the ma-
necessary in the interest of National rine, coastal, or human environment;
security. (2) The threat of harm or damage will
(3) If the Regional Supervisor dis- not disappear or decrease to an accept-
approved your DPP or DOCD for the able extent within a reasonable period
sole reason that an affected State ei- of time; and
ther has not yet issued a final decision (3) The advantages of disapproving
on, or has objected to, your coastal your DPP or DOCD outweigh the ad-
zone consistency certification (see vantages of development and produc-
paragraphs (b)(1) and (2) in this section.
tion), the Regional Supervisor will ap-
prove your DPP or DOCD upon receipt 550.272 If a State objects to the DPPs
of concurrence by the affected State, at or DOCDs coastal zone consistency
the time concurrence of the affected certification, what can I do?
State is conclusively presumed, or If an affected State objects to the
when the Secretary of Commerce coastal zone consistency certification
340
accompanying your proposed or dis- resubmitted DPP or DOCD. The Re-

approved DPP or DOCD, you may do gional Supervisor will make a decision
one of the following: within 60 calendar days after the Re-
(a) Amend or resubmit your DPP or gional Supervisor deems your modified
DOCD. Amend or resubmit your DPP or resubmitted DPP or DOCD to be
or DOCD to accommodate the States submitted, or receives the last amend-
objection and submit the amendment ment to your modified or resubmitted
or resubmittal to the Regional Super- DPP or DOCD, whichever occurs later.
visor for approval. The amendment or
resubmittal needs to only address in- POST-APPROVAL REQUIREMENTS FOR THE
formation related to the States objec- EP, DPP, AND DOCD
tions.
(b) Appeal. Appeal the States objec- 550.280 How must I conduct activi-
tion to the Secretary of Commerce ties under the approved EP, DPP,
using the procedures in 15 CFR part or DOCD?
930, subpart H. The Secretary of Com- (a) Compliance. You must conduct all
merce will either: of your lease and unit activities ac-
(1) Grant your appeal by finding cording to your approved EP, DPP, or
under section 307(c)(3)(B)(iii) of the DOCD and any approval conditions. If
CZMA (16 U.S.C.1456(c)(3)(B)(iii)) that you fail to comply with your approved
each activity described in detail in EP, DPP, or DOCD:
your DPP or DOCD is consistent with (1) You may be subject to BOEM en-
the objectives of the CZMA, or is other- forcement action, including civil pen-
wise necessary in the interest of Na- alties; and
tional security; or (2) The lease(s) involved in your EP,
(2) Deny your appeal, in which case DPP, or DOCD may be forfeited or can-
you may amend or resubmit your DPP celled under 43 U.S.C. 1334(c) or (d). If
or DOCD, as described in paragraph (a) this happens, you will not be entitled
of this section. to compensation under 550.185(b) and
(c) Withdraw your DPP or DOCD. 30 CFR 556.77.
Withdraw your DPP or DOCD if you de- (b) Emergencies. Nothing in this sub-
cide not to conduct your proposed depart or in your approved EP, DPP, or
velopment and production activities. DOCD relieves you of, or limits your
550.273 How do I submit a modified responsibility to take appropriate
DPP or DOCD or resubmit a dis- measures to meet emergency situa-
approved DPP or DOCD? tions. In an emergency situation, the
Regional Supervisor may approve or
(a) Modified DPP or DOCD. If the Re-
require departures from your approved
gional Supervisor requires you to mod-
EP, DPP, or DOCD.
ify your proposed DPP or DOCD under
550.270(b)(2), you must submit the 550.281 What must I do to conduct
modification(s) to the Regional Super- activities under the approved EP,
visor in the same manner as for a new DPP, or DOCD?
DPP or DOCD. You need submit only
information related to the proposed (a) Approvals and permits. Before you
modification(s). conduct activities under your approved
(b) Resubmitted DPP or DOCD. If the EP, DPP, or DOCD you must obtain the
Regional Supervisor disapproves your following approvals and or permits, as
DPP or DOCD under 550.270(b)(3), and applicable, from the District Manager
except as provided in 550.271(b)(3), you or BSEE Regional Supervisor:
may resubmit the disapproved DPP or (1) Approval of applications for per-
DOCD if there is a change in the condi- mits to drill (APDs) (see 30 CFR
tions that were the basis of its dis- 250.410);
approval. (2) Approval of production safety sys-
(c) BOEM review and timeframe. The tems (see 30 CFR 250.800);
Regional Supervisor will use the per- (3) Approval of new platforms and
formance standards in 550.202 to ei- other structures (or major modifica-
ther approve, require you to further tions to platforms and other struc-
modify, or disapprove your modified or tures) (see 30 CFR 250.905);
341
550.282 30 CFR Ch. V (7112 Edition)
(4) Approval of applications to install 550.282 Do I have to conduct post-ap-

lease term pipelines (see 30 CFR proval monitoring?
250.1007); and After approving your EP, DPP, or
(5) Other permits, as required by ap- DOCD, the Regional Supervisor may di-
plicable law. rect you to conduct monitoring pro-
(b) Conformance. The activities programs, including monitoring in accord-
posed in these applications and permits ance with the ESA and the MMPA. You
must conform to the activities de- must retain copies of all monitoring
scribed in detail in your approved EP, data obtained or derived from your
DPP, or DOCD. monitoring programs and make them
(c) Separate State CZMA consistency available to the BOEM upon request.
review. APDs, and other applications The Regional Supervisor may require
for licenses, approvals, or permits to you to:
conduct activities under your approved
(a) Monitoring plans. Submit moni-
EP, DPP, or DOCD including those
toring plans for approval before you
identified in paragraph (a) of this sec-
begin the work; and
tion, are not subject to separate State
(b) Monitoring reports. Prepare and
CZMA consistency review.
submit reports that summarize and
(d) Approval restrictions for permits for
analyze data and information obtained
activities conducted under EPs. The Re-
or derived from your monitoring pro-
gional Supervisor will not approve any
grams. The Regional Supervisor will
APDs or other applications for li-
specify requirements for preparing and
censes, approvals, or permits under
submitting these reports.
your approved EP until either:
(1) All affected States with approved 550.283 When must I revise or sup-
coastal zone management programs plement the approved EP, DPP, or
concur, or are conclusively presumed DOCD?
to concur, with the coastal zone con-
sistency certification accompanying (a) Revised OCS plans. You must re-
your EP under section 307(c)(3)(B)(i) vise your approved EP, DPP, or DOCD
and (ii) of the CZMA (16 U.S.C. when you propose to:
1456(c)(3)(B)(i) and (ii)); or (1) Change the type of drilling rig
(2) The Secretary of Commerce finds, (e.g., jack-up, platform rig, barge, sub-
under section 307(c)(3)(B)(iii) of the mersible, semisubmersible, or
CZMA (16 U.S.C.1456(c)(3)(B)(iii)) that drillship), production facility (e.g.,
each activity covered by the EP is con- caisson, fixed platform with piles, ten-
sistent with the objectives of the sion leg platform), or transportation
CZMA or is otherwise necessary in the mode (e.g., pipeline, barge);
interest of National security; (2) Change the surface location of a
(3) If an affected State objects to the well or production platform by a dis-
coastal zone consistency certification tance more than that specified by the
accompanying your approved EP after Regional Supervisor;
BOEM has approved your EP, you may (3) Change the type of production or
either: significantly increase the volume of
(i) Revise your EP to accommodate production or storage capacity;
the States objection and submit the (4) Increase the emissions of an air
revision to the Regional Supervisor for pollutant to an amount that exceeds
approval; or the amount specified in your approved
(ii) Appeal the States objection to EP, DPP, or DOCD;
the Secretary of Commerce using the (5) Significantly increase the amount
procedures in 15 CFR part 930, subpart of solid or liquid wastes to be handled
H. The Secretary of Commerce will ei- or discharged;
ther: (6) Request a new H2S area classifica-
(A) Grant your appeal by making the tion, or increase the concentration of
finding described in paragraph (d)(2) of H2S to a concentration greater than
this section; or that specified by the Regional Super-
(B) Deny your appeal, in which case visor;
you may revise your EP as described in (7) Change the location of your on-
paragraph (d)(3)(i) of this section. shore support base either from one
342
State to another or to a new base or a for EPs and 550.266 through 550.273 for
base requiring expansion; or DPPs and DOCDs.
(8) Change any other activity speci-
fied by the Regional Supervisor. 550.286550.295 [Reserved]
(b) Supplemental OCS plans. You must
supplement your approved EP, DPP, or CONSERVATION INFORMATION DOCUMENTS
DOCD when you propose to conduct ac- (CID)
tivities on your lease(s) or unit that re- 550.296 When and how must I submit
quire approval of a license or permit a CID or a revision to a CID?
which is not described in your approved
EP, DPP, or DOCD. These types of (a) You must submit one original and
changes are called supplemental OCS two copies of a CID to the appropriate
plans. OCS Region at the same time you first
submit your DOCD or DPP for any de-
550.284 How will BOEM require revi- velopment of a lease or leases located
sions to the approved EP, DPP, or in water depths greater than 400 meters
DOCD? (1,312 feet). You must also submit a
(a) Periodic review. The Regional Su- CID for a Supplemental DOCD or DPP
pervisor will periodically review the when requested by the Regional Super-
activities you conduct under your ap- visor. The submission of your CID must
proved EP, DPP, or DOCD and may re- be accompanied by payment of the
quire you to submit updated informa- service fee listed in 550.125.
tion on your activities. The frequency (b) If you decide not to develop a res-
and extent of this review will be based ervoir you committed to develop in
on the significance of any changes in your CID, you must submit one origi-
available information and onshore or nal and two copies of a revision to the
offshore conditions affecting, or af- CID to the appropriate OCS Region.
fected by, the activities in your ap- The revision to the CID must be sub-
proved EP, DPP, or DOCD. mitted within 14 calendar days after
(b) Results of review. The Regional Su- making your decision not to develop
pervisor may require you to revise the reservoir and before the reservoir is
your approved EP, DPP, or DOCD based bypassed. The Regional Supervisor will
on this review. In such cases, the Re- approve or disapprove any such revi-
gional Supervisor will inform you of sion to the original CID. If the Re-
the reasons for the decision. gional Supervisor disapproves the revi-
sion, you must develop the reservoir as
550.285 How do I submit revised and described in the original CID.
supplemental EPs, DPPs, and
DOCDs? 550.297 What information must a CID
contain?
(a) Submittal. You must submit to the
Regional Supervisor any revisions and (a) You must base the CID on wells
supplements to approved EPs, DPPs, or drilled before your CID submittal that
DOCDs for approval, whether you ini- define the extent of the reservoirs. You
tiate them or the Regional Supervisor must notify BOEM of any well that is
orders them. drilled to total depth during the CID
(b) Information. Revised and supple- evaluation period and you may be re-
mental EPs, DPPs, and DOCDs need in- quired to update your CID.
clude only information related to or af- (b) You must include all of the fol-
fected by the proposed changes, includ- lowing information if available. Infor-
ing information on changes in expected mation must be provided for each hy-
environmental impacts. drocarbon-bearing reservoir that is
(c) Procedures. All supplemental EPs, penetrated by a well that would meet
DPPs, and DOCDs, and those revised the producibility requirements of
EPs, DPPs, and DOCDs that the Re- 550.115 or 550.116:
gional Supervisor determines are like- (1) General discussion of the overall
ly to result in a significant change in development of the reservoir;
the impacts previously identified and (2) Summary spreadsheets of well log
evaluated, are subject to all of the pro- data and reservoir parameters (i.e.,
cedures under 550.231 through 550.235 sand tops and bases, fluid contacts, net
343
550.298 30 CFR Ch. V (7112 Edition)
pay, porosity, water saturations, pres- (i) A statement explaining the rea-
sures, formation volume factor); son(s) you will not develop the res-
(3) Appropriate well logs, including ervoir, and
digital well log (i.e., gamma ray, resis- (ii) Economic justification, including
tivity, neutron, density, sonic, caliper costs, recoverable reserve estimate,
curves) curves in an acceptable digital production profiles, and pricing as-
format; sumptions; and
(4) Sidewall core/whole core and pres- (16) Any other appropriate data you
sure-volume-temperature analysis; used in performing your reservoir eval-
(5) Structure maps, with the existing uations and preparing your reservoir
and proposed penetration points and development strategies.
subsea depths for all wells penetrating
the reservoirs, fluid contacts (or the 550.298 How long will BOEM take to
lowest or highest known levels in the evaluate and make a decision on
absence of actual contacts), reservoir the CID?
boundaries, and the scale of the map; (a) The Regional Supervisor will
(6) Interpreted structural cross sec- make a decision within 150 calendar
tions and corresponding interpreted days of receiving your CID. If BOEM
seismic lines or block diagrams, as nec- does not act within 150 calendar days,
essary, that include all current your CID is considered approved.
wellbores and planned wellbores on the (b) BOEM may suspend the 150-cal-
leases or units to be developed, the res- endar-day evaluation period if there is
ervoir boundaries, fluid contacts, depth missing, inconclusive, or inaccurate
scale, stratigraphic positions, and rel- data, or when a well reaches total
ative biostratigraphic ages; depth during the evaluation period.
(7) Isopach maps of each reservoir BOEM may also suspend the evaluation
showing the net feet of pay for each period when a well penetrating a hy-
well within the reservoir identified at drocarbon-bearing structure reaches
the penetration point, along with the total depth during the evaluation pe-
well name, labeled contours, and scale; riod and the data from that well is
(8) Estimates of original oil and gas needed for the CID. You will receive
in-place and anticipated recoverable oil written notification from the Regional
and gas reserves, all reservoir param- Supervisor describing the additional
eters, and risk factors and assump- information that is needed, and the
tions; evaluation period will resume once
(9) Plat map at the same scale as the BOEM receives the requested informa-
structure maps with existing and pro- tion.
posed well paths, as well as existing (c) The Regional Supervisor will ap-
and proposed penetrations; prove or deny your CID request based
(10) Wellbore schematics indicating on your commitment to develop eco-
proposed perforations; nomically producible reservoirs accord-
(11) Proposed wellbore utility chart ing to sound conservation, engineering,
showing all existing and proposed and economic practices.
wells, with proposed completion inter-
vals indicated for each borehole; 550.299 What operations require ap-
proval of the CID?
(12) Appropriate pressure data, speci-
fied by date, and whether estimated or You may not begin production before
measured; you receive BOEM approval of the CID.
(13) Description of reservoir develop-
ment strategies; Subpart CPollution Prevention
(14) Description of the enhanced re- and Control
covery practices you will use or, if you
do not plan to use such practices, an 550.300550.301 [Reserved]
explanation of the methods you consid-
ered and reasons you do not intend to 550.302 Definitions concerning air
use them; quality.
(15) For each reservoir you do not in- For purposes of 550.303 and 550.304
tend to develop: of this part:
344
Air pollutant means any combination part of the facility while physically at-
of agents for which the Environmental tached to it.
Protection Agency (EPA) has estab- Nonattainment area means, for any air
lished, pursuant to section 109 of the pollutant, an area which is shown by
Clean Air Act, national primary or sec- monitored data or which is calculated
ondary ambient air quality standards. by air quality modeling (or other meth-
Attainment area means, for any air ods determined by the Administrator
pollutant, an area which is shown by of EPA to be reliable) to exceed any
monitored data or which is calculated primary or secondary ambient air qual-
by air quality modeling (or other meth- ity standard established by EPA.
ods determined by the Administrator Projected emissions mean emissions,
of EPA to be reliable) not to exceed either controlled or uncontrolled, from
any primary or secondary ambient air a source(s).
quality standards established by EPA. Source means an emission point. Sev-
Best available control technology eral sources may be included within a
(BACT) means an emission limitation single facility.
based on the maximum degree of reduc- Temporary facility means activities
tion for each air pollutant subject to associated with the construction of
regulation, taking into account energy, platforms offshore or with facilities re-
environmental and economic impacts, lated to exploration for or development
and other costs. The BACT shall be of offshore oil and gas resources which
verified on a case-by-case basis by the are conducted in one location for less
Regional Supervisor and may include than 3 years.
reductions achieved through the appli- Volatile organic compound (VOC)
cation of processes, systems, and tech- means any organic compound which is
niques for the control of each air pol- emitted to the atmosphere as a vapor.
lutant. The unreactive compounds are exempt
from the above definition.
Emission offsets mean emission reduc-
tions obtained from facilities, either 550.303 Facilities described in a new
onshore or offshore, other than the fa- or revised Exploration Plan or De-
cility or facilities covered by the pro- velopment and Production Plan.
posed Exploration Plan or Develop- (a) New plans. All Exploration Plans
ment and Production Plan. and Development and Production Plans
Existing facility is an OCS facility de- shall include the information required
scribed in an Exploration Plan or a De- to make the necessary findings under
velopment and Production Plan sub- paragraphs (d) through (i) of this sec-
mitted or approved prior to June 2, tion, and the lessee shall comply with
1980. the requirements of this section as nec-
Facility means any installation or de- essary.
vice permanently or temporarily at- (b) Applicability of 550.303 to existing
tached to the seabed which is used for facilities. (1) The Regional Supervisor
exploration, development, and produc- may review any Exploration Plan or
tion activities for oil, gas, or sulphur Development and Production Plan to
and which emits or has the potential to determine whether any facility de-
emit any air pollutant from one or scribed in the plan should be subject to
more sources. All equipment directly review under this section and has the
associated with the installation or de- potential to significantly affect the air
vice shall be considered part of a single quality of an onshore area. To make
facility if the equipment is dependent these decisions, the Regional Super-
on, or affects the processes of, the in- visor shall consider the distance of the
stallation or device. During produc- facility from shore, the size of the fa-
tion, multiple installations or devices cility, the number of sources planned
will be considered to be a single facil- for the facility and their operational
ity if the installations or devices are status, and the air quality status of the
directly related to the production of onshore area.
oil, gas, or sulphur at a single site. Any (2) For a facility identified by the Re-
vessel used to transfer production from gional Supervisor in paragraph (b)(1) of
an offshore facility shall be considered this section, the Regional Supervisor
345
550.303 30 CFR Ch. V (7112 Edition)
shall require the lessee to refer to the in 550.249(a) or 550.218(a) of this part
information required in 550.218 or and compare these emissions to the
550.249 of this part and to submit only emission exemption amount E for
that information required to make the each air pollutant calculated using the
necessary findings under paragraphs (d) following formulas: E=3400D 23 for car-
through (i) of this section. The lessee bon monoxide (CO); and E=33.3D for
shall submit this information within total suspended particulates (TSP),
120 days of the Regional Supervisors sulphur dioxide (SO2), nitrogen oxides
determination or within a longer pe- (NOX), and VOC (where E is the emis-
riod of time at the discretion of the Re- sion exemption amount expressed in
gional Supervisor. The lessee shall tons per year, and D is the distance of
comply with the requirements of this the proposed facility from the closest
section as necessary. onshore area of a State expressed in
(c) Revised facilities. All revised Ex- statute miles). If the amount of these
ploration Plans and Development and projected emissions is less than or
Production Plans shall include the in- equal to the emission exemption
formation required to make the nec- amount E for the air pollutant, the
essary findings under paragraphs (d) facility is exempt from further air
through (i) of this section. The lessee quality review required under para-
shall comply with the requirements of graphs (e) through (i) of this section.
this section as necessary. (e) Significance levels. For a facility
(d) Exemption formulas. To determine not exempt under paragraph (d) of this
whether a facility described in a new, section for air pollutants other than
modified, or revised Exploration Plan VOC, the lessee shall use an approved
or Development and Production Plan is air quality model to determine whether
exempt from further air quality review, the projected emissions of those air
the lessee shall use the highest annual- pollutants from the facility result in
total amount of emissions from the fa- an onshore ambient air concentration
cility for each air pollutant calculated above the following significance levels:
SIGNIFICANCE LEVELSAIR POLLUTANT CONCENTRATIONS
[g/m3]
Averaging time (hours)

Air pollutant
Annual 24 8 3 1
SO2 ............................................................ 1 5 ........................ 25

TSP ........................................................... 1 5 ........................ ........................
NO2 ............................................................ 1 ........................ ........................ ........................
CO ............................................................. ........................ ........................ 500 ........................ 2,000
(f) Significance determinations. (1) The than VOC from any facility, except a
projected emissions of any air pollut- temporary facility, which significantly
ant other than VOC from any facility affect the quality of a nonattainment
which result in an onshore ambient air area, shall be fully reduced. This shall
concentration above the significance be done through the application of
level determined under paragraph (e) of BACT and, if additional reductions are
this section for that air pollutant, necessary, through the application of
shall be deemed to significantly affect additional emission controls or
the air quality of the onshore area for through the acquisition of offshore or
that air pollutant. onshore offsets.
(2) The projected emissions of VOC (2) The projected emissions of any air
from any facility which is not exempt pollutant other than VOC from any fa-
under paragraph (d) of this section for cility which significantly affect the air
that air pollutant shall be deemed to quality of an attainment or
significantly affect the air quality of unclassifiable area shall be reduced
the onshore area for VOC.
through the application of BACT.
(g) Controls required. (1) The projected
emissions of any air pollutant other
346
(i) (A) Except for temporary facili- BACT cause the following maximum
ties, the lessee also shall use an ap- allowable increases over the baseline
proved air quality model to determine concentrations established in 40 CFR
whether the emissions of TSP or SO2 52.21 to be exceeded in the attainment
that remain after the application of or unclassifiable area:
MAXIMUM ALLOWABLE CONCENTRATION INCREASES
[g/m3]
Averaging times
Air pollutant 24-hour 3-hour
Annual mean 1 maximum maximum
Class I:
TSP ..................................................................................................... 5 10
SO2 ...................................................................................................... 2 5 25
Class II:
TSP ..................................................................................................... 19 37
SO2 ...................................................................................................... 20 91 512
Class III:
TSP ..................................................................................................... 37 75
SO2 ...................................................................................................... 40 182 700
1 For TSPgeometric; For SO2arithmetric.
(B) No concentration of an air pollut- tainment area shall be reduced through

ant shall exceed the concentration per- the application of BACT.
mitted under the national secondary (4)(i) If projected emissions from a fa-
ambient air quality standard or the cility significantly affect the onshore
concentration permitted under the na- air quality of both a nonattainment
tional primary air quality standard, and an attainment or unclassifiable
whichever concentration is lowest for area, the regulatory requirements ap-
the air pollutant for the period of expo- plicable to projected emissions signifi-
sure. For any period other than the an- cantly affecting a nonattainment area
nual period, the applicable maximum shall apply.
allowable increase may be exceeded (ii) If projected emissions from a fa-
during one such period per year at any cility significantly affect the onshore
one onshore location. air quality of more than one class of
(ii) If the maximum allowable in- attainment area, the lessee must re-
creases are exceeded, the lessee shall duce projected emissions to meet the
apply whatever additional emission maximum allowable increases specified
for each class in paragraph (g)(2)(i) of
controls are necessary to reduce or off-
this section.
set the remaining emissions of TSP or
(h) Controls required on temporary fa-
SO2 so that concentrations in the on-
cilities. The lessee shall apply BACT to
shore ambient air of an attainment or
reduce projected emissions of any air
unclassifiable area do not exceed the
pollutant from a temporary facility
maximum allowable increases. which significantly affects the air
(3)(i) The projected emissions of VOC quality of an onshore area of a State.
from any facility, except a temporary (i) Emission offsets. When emission
facility, which significantly affect the offsets are to be obtained, the lessee
onshore air quality of a nonattainment must demonstrate that the offsets are
area shall be fully reduced. This shall equivalent in nature and quantity to
be done through the application of the projected emissions that must be
BACT and, if additional reductions are reduced after the application of BACT;
necessary, through the application of a binding commitment exists between
additional emission controls or the lessee and the owner or owners of
through the acquisition of offshore or the source or sources; the appropriate
onshore offsets. air quality control jurisdiction has
(ii) The projected emissions of VOC been notified of the need to revise the
from any facility which significantly State Implementation Plan to include
affect the onshore air quality of an at- the information regarding the offsets;
347
550.304 30 CFR Ch. V (7112 Edition)
and the required offsets come from submit basic emission data to a State
sources which affect the air quality of submitting a request under paragraph
the area significantly affected by the (a)(1) of this section.
lessees offshore operations. (3) The State submitting a request
(j) Review of facilities with emissions under paragraph (a)(1) of this section
below the exemption amount. If, during may submit information from its emis-
the review of a new, modified, or re- sion inventory which indicates that
vised Exploration Plan or Development emissions from existing facilities may
and Production Plan, the Regional Su- be significantly affecting the air qual-
pervisor determines or an affected ity of the onshore area of the State.
State submits information to the Re- The lessee shall be given the oppor-
gional Supervisor which demonstrates, tunity to present information to the
in the judgment of the Regional Super- Regional Supervisor which dem-
visor, that projected emissions from an onstrates that the facility is not sig-
otherwise exempt facility will, either nificantly affecting the air quality of
individually or in combination with the State.
other facilities in the area, signifi- (4) The Regional Supervisor shall
cantly affect the air quality of an on- evaluate the information submitted
shore area, then the Regional Super- under paragraph (a)(3) of this section
visor shall require the lessee to submit and shall determine, based on the basic
additional information to determine emission data, available meteorolog-
whether emission control measures are ical data, and the distance of the facil-
necessary. The lessee shall be given the ity or facilities from the onshore area,
opportunity to present information to whether any existing facility has the
the Regional Supervisor which dem- potential to significantly affect the air
onstrates that the exempt facility is quality of the onshore area of the
not significantly affecting the air qual- State.
ity of an onshore area of the State. (5) If the Regional Supervisor deter-
(k) Emission monitoring requirements. mines that no existing facility has the
The lessee shall monitor, in a manner potential to significantly affect the air
approved or prescribed by the Regional quality of the onshore area of the State
Supervisor, emissions from the facil- submitting information under para-
ity. The lessee shall submit this infor- graph (a)(3) of this section, the Re-
mation monthly in a manner and form gional Supervisor shall notify the
approved or prescribed by the Regional State of and explain the reasons for
Supervisor. this finding.
(l) Collection of meteorological data. (6) If the Regional Supervisor deter-
The Regional Supervisor may require mines that an existing facility has the
the lessee to collect, for a period of potential to significantly affect the air
time and in a manner approved or pre- quality of an onshore area of the State
scribed by the Regional Supervisor, submitting information under para-
and submit meteorological data from a graph (a)(3) of this section, the Re-
facility. gional Supervisor shall require the les-
see to refer to the information require-
550.304 Existing facilities. ments under 550.218 or 550.249 of this
(a) Process leading to review of an exist- part and submit only that information
ing facility. (1) An affected State may required to make the necessary find-
request that the Regional Supervisor ings under paragraphs (b) through (e)
supply basic emission data from exist- of this section. The lessee shall submit
ing facilities when such data are need- this information within 120 days of the
ed for the updating of the States emis- Regional Supervisors determination or
sion inventory. In submitting the re- within a longer period of time at the
quest, the State must demonstrate discretion of the Regional Supervisor.
that similar offshore and onshore fa- The lessee shall comply with the re-
cilities in areas under the States juris- quirements of this section as nec-
diction are also included in the emis- essary.
sion inventory. (b) Exemption formulas. To determine
(2) The Regional Supervisor may re- whether an existing facility is exempt
quire lessees of existing facilities to from further air quality review, the
348
lessee shall use the highest annual than or equal to the emission exemp-
total amount of emissions from the fa- tion amount E for the air pollutant,
cility for each air pollutant calculated the facility is exempt for that air pol-
in 550.218(a) or 550.249(a) of this part lutant from further air quality review
and compare these emissions to the required under paragraphs (c) through
emission exemption amount E for (e) of this section.
each air pollutant calculated using the (c) Significance levels. For a facility
following formulas: E = 3400D2/3 for CO; not exempt under paragraph (b) of this
and E = 33.3D for TSP, SO2, NOX, and section for air pollutants other than
VOC (where E is the emission exemp- VOC, the lessee shall use an approved
tion amount expressed in tons per year, air quality model to determine whether
and D is the distance of the facility projected emissions of those air pollut-
from the closest onshore area of the ants from the facility result in an on-
State expressed in statute miles). If the shore ambient air concentration above
amount of projected emissions is less the following significance levels:
SIGNIFICANCE LEVELSAIR POLLUTANT CONCENTRATIONS
[G/M3]
Averaging time (hours)

Air pollutant
Annual 24 8 3 1
SO2 ............................................................ 1 5 ........................ 25

TSP ........................................................... 1 5 ........................ ........................
NO2 ............................................................ 1 ........................ ........................ ........................
CO ............................................................. ........................ ........................ 500 ........................ 2,000
(d) Significance determinations. the Regional Supervisor determines or

(1) The projected emissions of any air an affected State submits information
pollutant other than VOC from any fa- to the Regional Supervisor which dem-
cility which result in an onshore ambi- onstrates, in the judgment of the Re-
ent air concentration above the signifi- gional Supervisor, that projected emis-
cance levels determined under para- sions from an otherwise exempt facil-
graph (c) of this section for that air ity will, either individually or in com-
pollutant shall be deemed to signifi- bination with other facilities in the
cantly affect the air quality of the on- area, significantly affect the air qual-
shore area for that air pollutant. ity of an onshore area, then the Re-
(2) The projected emissions of VOC gional Supervisor shall require the les-
from any facility which is not exempt see to submit additional information to
under paragraph (b) of this section for determine whether control measures
that air pollutant shall be deemed to are necessary. The lessee shall be given
significantly affect the air quality of
the opportunity to present information
the onshore area for VOC.
to the Regional Supervisor which dem-
(e) Controls required. (1) The projected
onstrates that the exempt facility is
emissions of any air pollutant which
significantly affect the air quality of not significantly affecting the air qual-
an onshore area shall be reduced ity of an onshore area of the State.
through the application of BACT. (g) Emission monitoring requirements.
(2) The lessee shall submit a compli- The lessee shall monitor, in a manner
ance schedule for the application of approved or prescribed by the Regional
BACT. If it is necessary to cease oper- Supervisor, emissions from the facility
ations to allow for the installation of following the installation of emission
emission controls, the lessee may apply controls. The lessee shall submit this
for a suspension of operations under information monthly in a manner and
the provisions of 30 CFR 250.174. form approved or prescribed by the Re-
(f) Review of facilities with emissions gional Supervisor.
below the exemption amount. If, during (h) Collection of meteorological data.
the review of the information required The Regional Supervisor may require
under paragraph (a)(6) of this section, the lessee to collect, for a period of
349
550.1011 30 CFR Ch. V (7112 Edition)
time and in a manner approved or pre- (3) The area offshore the Coast of
scribed by the Regional Supervisor, Alaska.
and submit meteorological data from a (c) If, as the result of a default, the
facility. surety on a right-of-way grant bond
makes payment to the Government of
Subparts DI [Reserved] any indebtedness under a grant secured
by the bond, the face amount of such
Subpart JPipelines and Pipeline bond and the suretys liability shall be
Rights-of-Way reduced by the amount of such pay-
ment.
550.1011 Bond requirements for pipe- (d) After a default, a new bond in the
line right-of-way holders.
amount of $300,000 shall be posted with-
(a) When you apply for, or are the in 6 months or such shorter period as
holder of, a right-of-way, you must: the Regional Supervisor may direct.
(1) Provide and maintain a $300,000 Failure to post a new bond shall be
bond (in addition to the bond coverage grounds for forfeiture of all grants cov-
required in 30 CFR part 256 and 30 CFR
ered by the defaulted bond.
part 556) that guarantees compliance
with all the terms and conditions of
the rights-of-way you hold in an OCS Subpart KOil and Gas
area; and Production Requirements.
(2) Provide additional security if the
Regional Director determines that a WELL TESTS AND SURVEYS
bond in excess of $300,000 is needed.
(b) For the purpose of this paragraph, 550.1153 When must I conduct a stat-
there are three areas: ic bottomhole pressure survey?
(1) The Gulf of Mexico and the area (a) You must conduct a static
offshore the Atlantic Coast; bottomhole pressure survey under the
(2) The areas offshore the Pacific following conditions:
Coast States of California, Oregon,
Washington, and Hawaii; and
If you have . . . Then you must conduct . . .
(1) A new producing reservoir, A static bottomhole pressure survey within 90 days after the date of first contin-
uous production.
(2) A reservoir with three or more pro- Annual static bottomhole pressure surveys in a sufficient number of key wells to
ducing completions, establish an average reservoir pressure. The Regional Supervisor may require
that bottomhole pressure surveys be performed on specific wells.
(b) Your bottomhole pressure survey ment to run a static bottomhole pres-
must meet the following requirements: sure survey. To request a departure,
(1) You must shut-in the well for a you must submit a justification, along
minimum period of 4 hours to ensure with Form BOEM140, Bottomhole
stabilized conditions; and Pressure Survey Report, showing a cal-
(2) The bottomhole pressure survey culated bottomhole pressure or any
must consist of a pressure measure- measured data.
ment at mid-perforation, and pressure
measurements and gradient informa- CLASSIFYING RESERVOIRS
tion for at least four gradient stops
coming out of the hole. 550.1154 How do I determine if my
(c) You must submit to the Regional reservoir is sensitive?
Supervisor the results of all static (a) You must determine whether each
bottomhole pressure surveys on Form reservoir is sensitive. You must clas-
BOEM140, Bottomhole Pressure Sur- sify the reservoir as sensitive if:
vey Report, within 60 days after the (1) Under initial conditions it is an
date of the survey. oil reservoir with an associated gas
(d) The Regional Supervisor may
cap;
grant a departure from the require-
350
(2) At any time there are near-crit- ( 550.1167(a)(2)) or previously submitted

ical fluids; or well logs ( 550.1167(c)(1));
(3) The reservoir is undergoing en- (c) Within 45 days after you revise
hanced recovery. reservoir parameters; and
(b) For the purposes of this subpart, (d) Within 45 days after the Regional
near-critical fluids are: Supervisor classifies the reservoir as
(1) Those fluids that occur in high sensitive under 550.1154(c).
temperature, high-pressure reservoirs
where it is not possible to define the OTHER REQUIREMENTS
liquid-gas contact; or 550.1165 What must I do for en-
(2) Fluids in reservoirs that are near hanced recovery operations?
bubble point or dew point conditions.
(a) [Reserved]
(c) The Regional Supervisor may re-
(b) Before initiating enhanced recov-
classify a reservoir when available in-
ery operations, you must submit a pro-
formation warrants reclassification.
posed plan to the BSEE Regional Su-
(d) If available information indicates pervisor and receive approval for pres-
that a reservoir previously classified as sure maintenance, secondary or ter-
non-sensitive is now sensitive, you tiary recovery, cycling, and similar re-
must submit a request to the Regional covery operations intended to increase
Supervisor to reclassify the reservoir. the ultimate recovery of oil and gas
You must include supporting informa- from a reservoir. The proposed plan
tion, as listed in the table in 550.1167, must include, for each project res-
with your request. ervoir, a geologic and engineering over-
(e) If information indicates that a view, Form BOEM0127 (submitted to
reservoir previously classified as sen- BOEM) and supporting data as required
sitive is now non-sensitive, you may in 550.1167, 30 CFR 250.1167, and any
submit a request to the Regional Su- additional information required by the
pervisor to reclassify the reservoir. BSEE Regional Supervisor.
You must include supporting informa- (c) [Reserved]
tion, as listed in the table in 550.1167,
with your request. 550.1166 What additional reporting is
required for developments in the
550.1155 What information must I Alaska OCS Region?
submit for sensitive reservoirs?
(a)(b) [Reserved]
You must submit to the Regional Su- (c) Every time you are required to
pervisor an original and two copies of submit Form BOEM0127 under
Form BOEM0127; one of the copies 550.1155, you must request an MER for
must be a public information copy in each producing sensitive reservoir in
accordance with 550.186 and 550.197, the Alaska OCS Region, unless other-
and marked Public Information. You wise instructed by the Regional Super-
must also submit two copies of the sup- visor.
porting information, as listed in the
table in 550.1167. You must submit 550.1167 What information must I
this information: submit with forms and for approv-
(a) Within 45 days after beginning als?
production from the reservoir or dis- You must submit the supporting in-
covering that it is sensitive; formation listed in the following table
(b) At least once during the calendar with the form identified in column 1
year, but you do not need to resubmit and for the approval required under
unrevised structure maps this subpart identified in column 2:
SRI BOEM0127 Reservoir reclassification
(2 copies)
(a) Maps:
(1) Base map with surface, bottomhole, and completion locations
with respect to the unit or lease line and the orientation of rep-
resentative seismic lines or cross-sections ................................. ........................................
(2) Structure maps with penetration point and subsea depth for
each well penetrating the reservoirs, highlighting subject wells;
reservoir boundaries; and original and current fluid levels .........
351
550.1400 30 CFR Ch. V (7112 Edition)
SRI BOEM0127 Reservoir reclassification

(2 copies)
(3) Net sand isopach with total net sand penetrated for each well,
identified at the penetration point ................................................ *
(4) Net hydrocarbon isopach with net feet of pay for each well,
identified at the penetration point ................................................ *
(b) Seismic data:
(1) Representative seismic lines, including strike and dip lines
that confirm the structure; indicate polarity ................................. ........................................
(2) Amplitude extraction of seismic horizon, if applicable .............. ........................................
(c) Logs:
(1) Well log sections with tops and bottoms of the reservoir(s)
and proposed or existing perforations ........................................
(2) Structural cross-sections showing the subject well and nearby
wells ............................................................................................. ........................................
(d) Engineering data:
(1) Estimated recoverable reserves for each well completion in
the reservoir; total recoverable reserves for each reservoir;
method of calculation; reservoir parameters used in volumetric
and decline curve analysis ..........................................................
(2) Well schematics showing current and proposed conditions .....
(3) The drive mechanism of each reservoir ...................................
(4) Pressure data, by date, and whether they are estimated or
measured ..................................................................................... ........................................
(5) Production data and decline curve analysis indicative of the
reservoir performance ................................................................. ........................................
(6) Reservoir simulation with the reservoir parameters used, his-
tory matches, and prediction runs (include proposed develop-
ment scenario) ............................................................................. ........................................ *
(e) General information:
(1) Detailed economic analysis .......................................................
(2) Reservoir name and whether or not it is competitive as de-
fined under 250.105 ..................................................................
(3) Operator name, lessee name(s), block, lease number, royalty
rate, and unit number (if applicable) of all relevant leases ........ ........................................
(4) Geologic overview of project ..................................................... ........................................
(5) Explanation of why the proposed completion scenario will
maximize ultimate recovery ......................................................... ........................................
(6) List of all wells in subject reservoirs that have ever produced
or been used for injection ........................................................... ........................................
Required.
* Additional items the Regional Supervisor may request.
Note: All maps must be at a standard scale and show lease and unit lines. The Regional Supervisor may waive submittal of
some of the required data on a case-by-case basis.
(f) Depending on the type of approval operator or other person engaged in oil,
requested, you must submit the appro- gas, sulphur or other minerals oper-
priate payment of the service fee(s) ations in the OCS has a violation.
listed in 550.125, according to the in- Whenever BOEM determines, on the
structions in 550.126. basis of available evidence, that a vio-
lation occurred and a civil penalty re-
Subparts LM [Reserved] view is appropriate, it will prepare a
case file. BOEM will appoint a Review-
Subpart NOuter Continental ing Officer.
Shelf Civil Penalties
550.1401 Index table.
OUTER CONTINENTAL SHELF LANDS ACT The following table is an index of the
CIVIL PENALTIES
sections in this subpart:
550.1400 How does BOEM begin the
civil penalty process?
This subpart explains BOEMs civil
penalty procedures whenever a lessee,
(a) Definitions ..................................................................................................... 550.1402

(b) What is the maximum civil penalty? ............................................................. 550.1403
352
(c) Which violations will BOEM review for potential civil penalties? .................. 550.1404
(d) When is a case file developed? ................................................................... 550.1405
(e) When will BOEM notify me and provide penalty information? ..................... 550.1406
(f) How do I respond to the letter of notification? .............................................. 550.1407
(g) When will I be notified of the Reviewing Officers decision? ....................... 550.1408
(h) What are my appeal rights? ......................................................................... 550.1409
550.1402 Definitions. file and determine if a civil penalty is

appropriate. The Reviewing Officer
Terms used in this subpart have the
may administer oaths and issue sub-
following meaning:
poenas requiring witnesses to attend
Case file means a BOEM document
meetings, submit depositions, or
file containing information and the
produce evidence.
record of evidence related to the al-
leged violation. 550.1406 When will BOEM notify me
Civil penalty means a fine. It is a and provide penalty information?
BOEM regulatory enforcement tool
used in addition to Notices of Incidents If the Reviewing Officer determines
of Noncompliance and directed suspen- that a civil penalty should be assessed,
sions of production or other operations. the Reviewing Officer will send the vio-
Reviewing Officer means a BOEM em- lator a letter of notification. The letter
ployee assigned to review case files and of notification will include:
assess civil penalties. (a) The amount of the proposed civil
Violation means failure to comply penalty;
with the Outer Continental Shelf (b) Information on the violation(s);
Lands Act (OCSLA) or any other appli- and
cable laws, with any regulations issued (c) Instruction on how to obtain a
under the OCSLA, or with the terms or copy of the case file, schedule a meet-
provisions of leases, licenses, permits, ing, submit information, or pay the
rights-of-way, or other approvals penalty.
issued under the OCSLA.
550.1407 How do I respond to the let-
Violator means a person responsible ter of notification?
for a violation.
You have 30 calendar days after you
550.1403 What is the maximum civil receive the Reviewing Officers letter
penalty? to either:
The maximum civil penalty is $40,000 (a) Request, in writing, a meeting
per day per violation. with the Reviewing Officer;
(b) Submit additional information; or
550.1404 Which violations will BOEM (c) Pay the proposed civil penalty.
review for potential civil penalties?
BOEM will review each of the fol- 550.1408 When will I be notified of
the Reviewing Officers decision?
lowing violations for potential civil
penalties: At the end of the 30 calendar days or
(a) Violations that you do not correct after the meeting and submittal of ad-
within the period BOEM grants; ditional information, the Reviewing
(b)(c) [Reserved] Officer will review the case file, includ-
(d) Violations of the oil spill finan- ing all information you submitted, and
cial responsibility requirements at 30 send you a decision. The decision will
CFR part 553. include the amount of any final civil
penalty, the basis for the civil penalty,
550.1405 When is a case file devel- and instructions for paying or appeal-
oped? ing the civil penalty.
BOEM will develop a case file during
its investigation of the violation, and 550.1409 What are my appeal rights?
forward it to a Reviewing Officer if any (a) When you receive the Reviewing
of the conditions in 550.1404 exist. The Officers final decision, you have 60
Reviewing Officer will review the case days to either pay the penalty or file
353
550.1450 30 CFR Ch. V (7112 Edition)
an appeal in accordance with 30 CFR FEDERAL OIL AND GAS ROYALTY MAN-
part 590, subpart A. AGEMENT ACT CIVIL PENALTIES DEFI-
(b) If you file an appeal, you must ei- NITIONS
ther:
550.1450 What definitions apply to
(1) Submit a surety bond in the this subpart?
amount of the penalty to the appro-
priate Leasing Office in the Region The terms used in this subpart have
where the penalty was assessed, fol- the same meaning as in 30 U.S.C. 1702.
lowing instructions that the Reviewing PENALTIES AFTER A PERIOD TO CORRECT
Officer will include in the final deci-
sion; or 550.1451 What may BOEM do if I vio-
(2) Notify the appropriate Leasing Of- late a statute, regulation, order, or
fice, in the Region where the penalty lease term relating to a Federal oil
was assessed, that you want your lease- and gas lease?
specific/area-wide bond on file to be (a) If we believe that you have not
used as the bond for the penalty followed any requirement of a statute,
amount. regulation, order, or lease term for any
(c) If you choose the alternative in Federal oil or gas lease, we may send
paragraph (b)(2) of this section, the you a Notice of Noncompliance inform-
BOEM Regional Director may require ing you what the violation is and what
additional security (i.e., security in ex- you need to do to correct it to avoid
cess of your existing bond) to ensure civil penalties under 30 U.S.C. 1719(a)
sufficient coverage during an appeal. In and (b).
that event, the Regional Director will (b) We will serve the Notice of Non-
require you to post the supplemental compliance by registered mail or per-
bond with the regional office in the sonal service using the most current
same manner as under 556.53(d) address on file as maintained by the
through (f) of this chapter. If the Re- BOEM Leasing Office in your respec-
gional Director determines the appeal tive Region.
should be covered by a lease-specific 550.1452 What if I correct the viola-
abandonment account then you must tion?
establish an account that meets the re-
The matter will be closed if you cor-
quirements of 556.56.
rect all of the violations identified in
(d) If you do not either pay the pen- the Notice of Noncompliance within 20
alty or file a timely appeal, BOEM will days after you receive the Notice (or
take one or more of the following ac- within a longer time period specified in
tions: the Notice).
(1) We will collect the amount you
were assessed, plus interest, late pay- 550.1453 What if I do not correct the
ment charges, and other fees as pro- violation?
vided by law, from the date you re- (a) We may send you a Notice of Civil
ceived the Reviewing Officers final de- Penalty if you do not correct all of the
cision until the date we receive pay- violations identified in the Notice of
ment; Noncompliance within 20 days after
(2) We may initiate additional en- you receive the Notice of Noncompli-
forcement, including, if appropriate, ance (or within a longer time period
cancellation of the lease, right-of-way, specified in that Notice). The Notice of
license, permit, or approval, or the for- Civil Penalty will tell you how much
feiture of a bond under this part; or penalty you must pay. The penalty
(3) We may bar you from doing fur- may be up to $500 per day, beginning
ther business with the Federal Govern- with the date of the Notice of Non-
ment according to Executive Orders compliance, for each violation identi-
12549 and 12689, and section 2455 of the fied in the Notice of Noncompliance for
Federal Acquisition Streamlining Act as long as you do not correct the viola-
of 1994, 31 U.S.C. 6101. The Department tions.
of the Interiors regulations imple- (b) If you do not correct all of the
menting these authorities are found at violations identified in the Notice of
43 CFR part 12, subpart D. Noncompliance within 40 days after
354
you receive the Notice of Noncompli- 550.1456 May I request a hearing on

ance (or 20 days following the expira- the record regarding the amount of
tion of a longer time period specified in a civil penalty if I did not request a
that Notice), we may increase the pen- hearing on the Notice of Non-
alty to up to $5,000 per day, beginning compliance?
with the date of the Notice of Non- (a) You may request a hearing on the
compliance, for each violation for as record to challenge only the amount of
long as you do not correct the viola- a civil penalty when you receive a No-
tions. tice of Civil Penalty, if you did not pre-
viously request a hearing on the record
550.1454 How may I request a hear- under 550.1454. If you did not request a
ing on the record on a Notice of hearing on the record on the Notice of
Noncompliance?
Noncompliance under 550.1454, you
You may request a hearing on the may not contest your underlying li-
record on a Notice of Noncompliance ability for civil penalties.
by filing a request within 30 days of the (b) You must file your request within
date you received the Notice of Non- 10 days after you receive the Notice of
compliance with the Hearings Division Civil Penalty with the Hearings Divi-
(Departmental), Office of Hearings and sion (Departmental), Office of Hearings
Appeals, U.S. Department of the Inte- and Appeals, U.S. Department of the
rior, 801 North Quincy Street, Arling- Interior, 801 North Quincy Street, Ar-
ton, Virginia 22203. You may do this re- lington, Virginia 22203.
gardless of whether you correct the
violations identified in the Notice of PENALTIES WITHOUT A PERIOD TO
Noncompliance. CORRECT
550.1455 Does my request for a hear- 550.1460 May I be subject to pen-

ing on the record affect the penalties without prior notice and an
alties? opportunity to correct?
(a) If you do not correct the viola- The Federal Oil and Gas Royalty
tions identified in the Notice of Non- Management Act sets out several spe-
compliance, the penalties will continue cific violations for which penalties ac-
to accrue even if you request a hearing crue without an opportunity to first
on the record. correct the violation.
(b) You may petition the Hearings (a) [Reserved]
Division (Departmental) of the Office (b) Under 30 U.S.C. 1719(d), you may
of Hearings and Appeals, to stay the be subject to civil penalties of up to
accrual of penalties pending the hear- $25,000 per day for each day each viola-
ing on the record and a decision by the tion continues if you:
Administrative Law Judge under (1) Knowingly or willfully prepare,
550.1472. maintain, or submit false, inaccurate,
(1) You must file your petition within or misleading reports, notices, affida-
45 calendar days of receiving the Notice vits, records, data, or other written in-
of Noncompliance. formation;
(2) To stay the accrual of penalties, (2)(3) [Reserved]
you must post a bond or other surety
instrument, or demonstrate financial 550.1461 How will BOEM inform me
solvency, using the standards and re- of violations without a period to
quirements as prescribed in 550.1490 correct?
through 550.1497, for the principal We will inform you of any violation,
amount of any unpaid amounts due without a period to correct, by issuing
that are the subject of the Notice of a Notice of Noncompliance and Civil
Noncompliance, including interest Penalty explaining the violation, how
thereon, plus the amount of any pen- to correct it, and the penalty assess-
alties accrued before the date a stay ment. We will serve the Notice of Non-
becomes effective. compliance and Civil Penalty by reg-
(3) The Hearings Division will grant istered mail or personal service using
or deny the petition under 43 CFR your address of record as specified
4.21(b). under 30 CFR part 1218, subpart H.
355
550.1462 30 CFR Ch. V (7112 Edition)
550.1462 How may I request a hear- tice of Civil Penalty regarding viola-
ing on the record on a Notice of tions without a period to correct, if
Noncompliance regarding viola- you did not previously request a hear-
tions without a period to correct? ing on the record under 550.1462. If you
You may request a hearing on the did not request a hearing on the record
record of a Notice of Noncompliance on the Notice of Noncompliance under
regarding violations without a period 550.1462, you may not contest your un-
to correct by filing a request within 30 derlying liability for civil penalties.
days after you receive the Notice of (b) You must file your request within
Noncompliance with the Hearings Divi- 10 days after you receive Notice of Civil
sion (Departmental), Office of Hearings
Penalty with the Hearings Division
and Appeals, U.S. Department of the
Interior, 801 North Quincy Street, Ar- (Departmental), Office of Hearings and
lington, Virginia 22203. You may do Appeals, U.S. Department of the Inte-
this regardless of whether you correct rior, 801 North Quincy, Arlington, Vir-
the violations identified in the Notice ginia 22203.
of Noncompliance.
GENERAL PROVISIONS
550.1463 Does my request for a hear-
ing on the record affect the pen- 550.1470 How does BOEM decide
alties? what the amount of the penalty
should be?
(a) If you do not correct the viola-
tions identified in the Notice of Non- We determine the amount of the pen-
compliance regarding violations with- alty by considering the severity of the
out a period to correct, the penalties violations, your history of compliance,
will continue to accrue even if you re- and if you are a small business.
quest a hearing on the record.
(b) You may ask the Hearings Divi- 550.1471 Does the penalty affect
sion (Departmental) to stay the ac- whether I owe interest?
crual of penalties pending the hearing If you do not pay the penalty by the
on the record and a decision by the Ad-
date required under 550.1475(d), BOEM
ministrative Law Judge under
will assess you late payment interest
550.1472.
(1) You must file your petition within on the penalty amount at the same
45 calendar days after you receive the rate interest is assessed under 30 CFR
Notice of Noncompliance. 1218.54.
(2) To stay the accrual of penalties,
you must post a bond or other surety 550.1472 How will the Office of Hear-
ings and Appeals conduct the hear-
instrument, or demonstrate financial
ing on the record?
solvency, using the standards and re-
quirements as prescribed in 550.1490 If you request a hearing on the
through 550.1497, for the principal record under 550.1454, 550.1456,
amount of any unpaid amounts due 550.1462, or 550.1464, the hearing will be
that are the subject of the Notice of conducted by a Departmental Adminis-
Noncompliance, including interest trative Law Judge from the Office of
thereon, plus the amount of any pen- Hearings and Appeals. After the hear-
alties accrued before the date a stay ing, the Administrative Law Judge will
becomes effective. issue a decision in accordance with the
(3) The Hearings Division will grant evidence presented and applicable law.
or deny the petition under 43 CFR
4.21(b). 550.1473 How may I appeal the Ad-
ministrative Law Judges decision?
550.1464 May I request a hearing on
the record regarding the amount of If you are adversely affected by the
a civil penalty if I did not request a Administrative Law Judges decision,
hearing on the Notice of Non- you may appeal that decision to the In-
compliance?
terior Board of Land Appeals under 43
(a) You may request a hearing on the CFR part 4, subpart E.
record to challenge only the amount of
a civil penalty when you receive a No-
356
550.1474 May I seek judicial review (e) If you do not pay, that amount is
of the decision of the Interior subject to collection under the provi-
Board of Land Appeals? sions of 550.1477.
Under 30 U.S.C. 1719(j), you may seek
550.1476 Can BOEM reduce my pen-
judicial review of the decision of the alty once it is assessed?
Interior Board of Land Appeals. A suit
for judicial review in the District Court Under 30 U.S.C. 1719(g), the Director
will be barred unless filed within 90 or his or her delegate may compromise
days after the final order. or reduce civil penalties assessed under
this part.
550.1475 When must I pay the pen-
alty? 550.1477 How may BOEM collect the
penalty?
(a) You must pay the amount of the
(a) BOEM may use all available
Notice of Civil Penalty issued under
means to collect the penalty including,
550.1453 or 550.1461, if you do not re-
but not limited to:
quest a hearing on the record under
(1) Requiring the lease surety, for
550.1454, 550.1456, 550.1462, or 550.1464
amounts owed by lessees, to pay the
(b) If you request a hearing on the penalty;
record under 550.1454, 550.1456,
(2) Deducting the amount of the pen-
550.1462, or 550.1464, but you do not ap- alty from any sums the United States
peal the determination of the Adminis- owes to you; and
trative Law Judge to the Interior
(3) Using judicial process to compel
Board of Land Appeals under 550.1473, your payment under 30 U.S.C. 1719(k).
you must pay the amount assessed by
(b) If the Department uses judicial
the Administrative Law Judge.
process, or if you seek judicial review
(c) If you appeal the determination of under 550.1474 and the court upholds
the Administrative Law Judge to the assessment of a penalty, the court
Interior Board of Land Appeals, you shall have jurisdiction to award the
must pay the amount assessed in the amount assessed plus interest assessed
IBLA decision. from the date of the expiration of the
(d) You must pay the penalty as- 90-day period referred to in 550.1474.
sessed within 40 days after: The amount of any penalty, as finally
(1) You received the Notice of Civil determined, may be deducted from any
Penalty, if you did not request a hear- sum owing to you by the United States.
ing on the record under either
550.1454, 550.1456, 550.1462, or 550.1464; CRIMINAL PENALTIES
(2) You received an Administrative
550.1480 May the United States
Law Judges decision under 550.1472, if criminally prosecute me for viola-
you obtained a stay of the accrual of tions under Federal oil and gas
penalties pending the hearing on the leases?
record under 550.1455(b) or 550.1463(b)
If you commit an act for which a
and did not appeal the Administrative
civil penalty is provided at 30 U.S.C.
Law Judges determination to the
1719(d) and 550.1460(b), the United
IBLA under 550.1473;
States may pursue criminal penalties
(3) You received an IBLA decision as provided at 30 U.S.C. 1720, in addi-
under 550.1473 if the IBLA continued tion to any authority for prosecution
the stay of accrual of penalties pending under other statutes.
its decision and you did not seek judi-
cial review of the IBLAs decision; or BONDING REQUIREMENTS
(4) A final non-appealable judgment
of a court of competent jurisdiction is 550.1490 What standards must my
entered, if you sought judicial review BOEM-specified surety instrument
of the IBLAs decision and the Depart- meet?
ment or the appropriate court sus- (a) A BOEM-specified surety instru-
pended compliance with the IBLAs de- ment must be in a form specified in
cision pending the adjudication of the BOEM instructions. BOEM will give
case. you written information and standard
357
550.1491 30 CFR Ch. V (7112 Edition)
forms for BOEM-specified surety in- (2) Submit a separate surety instru-
strument requirements. ment for new amounts under appeal
(b) BOEM will use a bank-rating serv- until you amend the instrument to
ice to determine whether a financial cover the new appeals.
institution has an acceptable rating to
provide a surety instrument adequate FINANCIAL SOLVENCY REQUIREMENTS
to indemnify the lessor from loss or
damage. 550.1495 How do I demonstrate finan-
cial solvency?
(1) Administrative appeal bonds must
be issued by a qualified surety com- (a) To demonstrate financial sol-
pany which the Department of the vency under this part, you must submit
Treasury has approved. an audited consolidated balance sheet,
(2) Irrevocable letters of credit or and, if requested by the BOEM bond-ap-
certificates of deposit must be from a proving officer, up to 3 years of tax re-
financial institution acceptable to turns to BOEM using the U.S. Postal
BOEM with a minimum 1-year period Service, private delivery, courier, or
of coverage subject to automatic re- overnight delivery at:
newal up to 5 years. (1) For Alaska OCS: Jeffrey Walker,
RS/FO, BOEM Alaska OCS Region, 3801
550.1491 How will BOEM determine Centerpoint Drive, Suite 500, Anchor-
the amount of my bond or other age, AK 995035823, jef-
surety instrument? frey.walker@boem.gov, (907) 3345300.
(a) BOEM bond-approving officer may (2) For Gulf of Mexico and Atlantic
approve your surety if he or she deter- OCS: Joshua Joyce, Regional FARM
mines that the amount is adequate to Program Coordinator, BOEM Gulf of
guarantee payment. The amount of Mexico OCS Region, 1201 Elmwood
your surety may vary depending on the Park Boulevard New Orleans, LA 70123
form of the surety and how long the 2394, joshua.joyce@boem.gov, (504) 736
surety is effective. 2779.
(1) The amount of the BOEM-speci- (3) For Pacific OCS: Jaron Ming,
fied surety instrument must include Lead Leasing Specialist, BOEM Pacific
the principal amount owed under the OCS Region, 770 Paseo Camarillo, 2nd
Notice of Noncompliance or Notice of Floor, Camarillo, CA 93010,
Civil Penalty plus any accrued interest jaron.ming@boem.gov, (805) 3897514.
we determine is owed plus projected in- (b) You must submit an audited con-
terest for a 1-year period. solidated balance sheet annually, and,
(2) Treasury book-entry bond or note if requested, additional annual tax re-
amounts must be equal to at least 120 turns on the date BOEM first deter-
percent of the required surety amount. mined that you demonstrated financial
(b) If your appeal is not decided with- solvency as long as you have active ap-
in 1 year from the filing date, you must peals, or whenever BOEM requests.
increase the surety amount to cover (c) If you demonstrate financial sol-
additional estimated interest for an- vency in the current calendar year, you
other 1-year period. You must continue are not required to redemonstrate fi-
to do this annually on the date your nancial solvency for new appeals of or-
appeal was filed. We will determine the ders during that calendar year unless
additional estimated interest and no- you file for protection under any provi-
tify you of the amount so you can sion of the U.S. Bankruptcy Code (Title
amend your surety instrument. 11 of the United States Code), or BOEM
(c) You may submit a single surety notifies you that you must redem-
instrument that covers multiple ap- onstrate financial solvency.
peals. You may change the instrument
to add new amounts under appeal or re- 550.1496 How will BOEM determine
move amounts that have been adju- if I am financially solvent?
dicated in your favor or that you have (a) BOEM bond-approving officer will
paid, if you: determine your financial solvency by
(1) Amend the single surety instru- examining your total net worth, in-
ment annually on the date you filed cluding, as appropriate, the net worth
your first appeal; and of your affiliated entities.
358
Ocean Energy Management, Interior Pt. 551
(b) If your net worth, minus the (ii) If our bond-approving officer de-
amount we would require as surety termines that the business-information
under 550.1490 and 550.1491 for all or- or credit-reporting service or program
ders you have appealed is greater than information does not demonstrate your
$300 million, you are presumptively financial solvency to our satisfaction,
deemed financially solvent, and we will our bond-approving officer will require
not require you to post a bond or other you to post a bond or other surety in-
surety instrument. strument under 550.1490 and 550.1491
(c) If your net worth, minus the or pay the obligation.
amount we would require as surety
under 550.1490 and 550.1491 for all or- 550.1497 When will BOEM monitor
ders you have appealed is less than $300 my financial solvency?
million, you must submit the following (a) If you are presumptively finan-
to BOEM by one of the methods in cially solvent under 550.1496(b), BOEM
550.1495(a): will determine your net worth as de-
(1) A written request asking us to scribed under 550.1496(b) and (c) to
consult a business-information, or evaluate your financial solvency at
credit-reporting service or program to least annually on the date we first de-
determine your financial solvency; and termined that you demonstrated finan-
(2) A nonrefundable $50 processing cial solvency as long as you have ac-
fee: tive appeals and each time you appeal
(i) You must pay the processing fee a new order.
to us following the requirements for (b) If you ask us to consult a busi-
making payments found in 30 CFR ness-information or credit-reporting
550.126. You are required to use Elec- service or program under 550.1496(c),
tronic Funds Transfer (EFT) for these we will consult a service or program
payments; annually as long as you have active ap-
(ii) You must submit the fee with peals and each time you appeal a new
your request under paragraph (c)(1) of order.
this section, and then annually on the (c) If our bond-approving officer de-
date we first determined that you dem- termines that you are no longer finan-
onstrated financial solvency, as long as cially solvent, you must post a bond or
you are not able to demonstrate finan- other BOEM-specified surety instru-
cial solvency under paragraph (a) of ment under 550.1490 and 550.1491.
this section and you have active ap-
peals.
(d) If you request that we consult a Subparts OS [Reserved]
business-information or credit-report-
ing service or program under paragraph PART 551GEOLOGICAL AND
(c) of this section: GEOPHYSCIAL (G&G) EXPLO-
(1) We will use criteria similar to RATIONS OF THE OUTER CONTI-
that which a potential creditor would NENTAL SHELF
use to lend an amount equal to the
bond or other surety instrument we Sec.
would require under 550.1490 and 551.1 Definitions.
550.1491; 551.2 Purpose of this part.
(2) For us to consider you financially 551.3 Authority and applicability of this
solvent, the business-information or part.
credit-reporting service or program 551.4 Types of G&G activities that require
must demonstrate your degree of risk permits or Notices.
as low to moderate: 551.5 Applying for permits or filing Notices.
(i) If our bond-approving officer de- 551.6 Obligations and rights under a permit
or a Notice.
termines that the business-information
551.7 Test drilling activities under a permit.
or credit-reporting service or program
551.8 Inspection and reporting requirements
information demonstrates your finan- for activities under a permit.
cial solvency to our satisfaction, our 551.9 Temporarily stopping, canceling, or
bond-approving officer will not require relinquishing activities approved under a
you to post a bond or other surety in- permit.
strument under 550.1490 and 550.1491; 551.10 Penalties and appeals.
359

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Subchapter BOFFSHORE

PART 550OIL AND GAS AND SUL- RIGHT-OF-USE AND EASEMENT

leasehold obligations? my lease or unit?

must accompany the EP? company the DPP or DOCD?

550.302 Definitions concerning air quality. part?

PENALTIES WITHOUT A PERIOD TO CORRECT Subpart AGeneral

strument? ration, development, and production

(1) Applications for permit to drill ................................................ 30 CFR 250, subpart D.

environmental and economic impacts, These requirements/procedures may be

necessary to control a well; properly Existing facility, as used in 550.303,

or gas. plorations means those G&G surveys on

that are authorized by an Act of Con- private, public, or municipal corpora-

by a lessee or operator of that lease or Well-control fluid means drilling mud,

pressure-tested. this section to determine producibility.

(a) You must write to the Regional 550.118 [Reserved]

(1) Change in Designation of Operator .................... $164 ......................................................................... 550.143(d).

Serviceprocessing of the following: Fee amount 30 CFR citation

(b) Payment of the fees listed in INSPECTION OF OPERATIONS

vance, an annual rental payment. rine, coastal, or human environment;

authorized by section 307(c)(3)(B)(iii) of the Regional Director will require in

spect or select and retain;

(2) BOEM receives your request for of analyzing or processing geological

If . . . BOEM will release . . . At this time . . . Special provisions . . .

ity (see definitions under 550.105) on your lease or unit when:

You must submit a(n) . . . Before you . . .

(b) Submitting additional information. (d) Does not unreasonably interfere

lessor; dom of Information Act (FOIA) (5

quired by 550.218; cussion of the general subject matter

of the omitted information. If you will (c) Two-dimensional (2D) or three-di-

discharges from manmade islands:

tons per year; consistent with the model(s) used.

(f) Modeling report. A modeling report 550.220 If I propose activities in the

transportation method and quantities specifically addressed in the relevant

National Pollution Discharge Elimi- (2) Air and water quality;

made hazards; incorporate by reference.

amended, is subject to the require- this section within 30 calendar days

550.234 How do I submit a modified 550.235 If a State objects to the EPs

later. in paragraph (a) of this section.

ment and production activities. Include quired by 550.262.

a statement so indicating. mensional (3D) seismic lines. Copies of

migrated and annotated 2D or 3D 550.245 What hydrogen sulfide (H2S)

methodologies outlined in 40 CFR part (c) Socioeconomic study reports. Socio-

under 550.194). visor.

formation. it to the Regional Supervisor.

mation must accompany your DPP: tions of lease stipulations related to

the onshore facilities you will use to must:

Supervisor. erenced material; and

The regional supervisor will . . . If . . . And then . . .

when the Secretary of Commerce coastal zone consistency certification

accompanying your proposed or dis- resubmitted DPP or DOCD. The Re-

modify, or disapprove your modified or tures) (see 30 CFR 250.905);

(4) Approval of applications to install 550.282 Do I have to conduct post-ap-

tend to develop: of this part:

an offshore facility shall be considered this section, the Regional Supervisor

Averaging time (hours)

SO2 ............................................................ 1 5 ........................ 25

emissions of any air pollutant other

(B) No concentration of an air pollut- tainment area shall be reduced through

Averaging time (hours)

SO2 ............................................................ 1 5 ........................ 25

(d) Significance determinations. the Regional Supervisor determines or

(2) At any time there are near-crit- ( 550.1167(a)(2)) or previously submitted

reservoir boundaries; and original and current fluid levels .........

SRI BOEM0127 Reservoir reclassification