Financial Discussion

Documentation for Evaluation of a Lessee’s Ability to Carry out Present and Future Obligations

30 CFR § 556.901(d) establishes that “The Regional Director may determine that additional security (i.e., security above the amounts prescribed in §556.900 (a) and paragraphs (a) and (b) of this section) is necessary to ensure compliance with the obligations under your lease, the regulations in this chapter, and the regulations in 30 CFR chapters II and XII. 

                    (1) The Regional Director's determination will be based on his/her evaluation of your ability to carry out present and future financial obligations demonstrated by:”

five discussion

After analyzing these 5 criteria BOEM will then determine the amount of bond required and self-insurance for which a company may be eligible for.  A demand for bond will not be made without consideration of all information available to BOEM for all five criteria.