Loading (50 kb)...'
(continued)
hydrocarbons produced and gas flared by
the approved flaring. (See 30 CFR 250,
subpart K.)
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§ 250.141 May I ever use alternate procedures or equipment?
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You may use alternate procedures or equipment after receiving approval as described in this section.
(a) Any alternate procedures or equipment that you propose to use must provide a level of safety and environmental protection that equals or surpasses current MMS requirements.
(b) You must receive the District or Regional Supervisor's written approval before you can use alternate procedures or equipment.
(c) To receive approval, you must either submit information or give an oral presentation to the appropriate Supervisor. Your presentation must describe the site-specific application(s), performance characteristics, and safety features of the proposed procedure or equipment.
§ 250.142 How do I receive approval for departures?
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We may approve departures to the operating requirements. You may apply for a departure by writing to the District or Regional Supervisor.
[65 FR 6536, Feb. 10, 2000]
§ 250.143 How do I designate an operator?
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(a) You must provide the Regional Supervisor an executed Designation of Operator form unless you are the only lessee and are the only person conducting lease operations. When there is more than one lessee, each lessee must submit the Designation of Operator form and the Regional Supervisor must approve the designation before the designated operator may begin operations on the leasehold.
(b) This designation is authority for the designated operator to act on your behalf and to fulfill your obligations under the Act, the lease, and the regulations in this part.
(c) You, or your designated operator, must immediately provide the Regional Supervisor a written notification of any change of address.
(d) If you change the designated operator on your lease, you must pay the service fee listed in §250.125 of this subpart with your request for a change in designation of operator. Should there be multiple lessees, all designation of operator forms must be collected by one lessee and submitted to MMS in a single submittal, which is subject to only one filing fee.
[64 FR 72775, Dec. 28, 1999, as amended at 70 FR 49876, Aug. 25, 2005]
§ 250.144 How do I designate a new operator when a designation of operator terminates?
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(a) When a Designation of Operator terminates, the Regional Supervisor must approve a new designated operator before you may continue operations. Each lessee must submit a new executed Designation of Operator form.
(b) If your Designation of Operator is terminated, or a controversy develops between you and your designated operator, you and your designated operator must protect the lessor's interests.
§ 250.145 How do I designate an agent or a local agent?
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(a) You or your designated operator may designate for the Regional Supervisor's approval, or the Regional Director may require you to designate an agent empowered to fulfill your obligations under the Act, the lease, or the regulations in this part.
(b) You or your designated operator may designate for the Regional Supervisor's approval a local agent empowered to receive notices and submit requests, applications, notices, or supplemental information.
§ 250.146 Who is responsible for fulfilling leasehold obligations?
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(a) When you are not the sole lessee, you and your co-lessee(s) are jointly and severally responsible for fulfilling your obligations under the provisions of 30 CFR parts 250 through 282, unless otherwise provided in these regulations.
(b) If your designated operator fails to fulfill any of your obligations under 30 CFR parts 250 through 282, the Regional Supervisor may require you or any or all of your co-lessees to fulfill those obligations or other operational obligations under the Act, the lease, or the regulations.
(c) Whenever the regulations in 30 CFR parts 250 through 282 require the lessee to meet a requirement or perform an action, the lessee, operator (if one has been designated), and the person actually performing the activity to which the requirement applies are jointly and severally responsible for complying with the regulation.
Naming and Identifying Facilities and Wells (Does Not Include MODUs)
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§ 250.150 How do I name facilities and wells in the Gulf of Mexico Region?
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(a) Assign each facility a letter designation except for those types of facilities identified in paragraph (c)(1) of this section. For example, A, B, CA, or CB.
(1) After a facility is installed, rename each predrilled well that was assigned only a number and was suspended temporarily at the mudline or at the surface. Use a letter and number designation. The letter used must be the same as that of the production facility, and the number used must correspond to the order in which the well was completed, not necessarily the number assigned when it was drilled. For example, the first well completed for production on Facility A would be renamed Well A–1, the second would be Well A–2, and so on; and
(2) When you have more than one facility on a block, each facility installed, and not bridge-connected to another facility, must be named using a different letter in sequential order. For example, EC 222A, EC 222B, EC 222C.
(3) When you have more than one facility on multiple blocks in a local area being co-developed, each facility installed and not connected with a walkway to another facility should be named using a different letter in sequential order with the block number corresponding to the block on which the platform is located. For example, EC 221A, EC 222B and EC 223C.
(b) In naming multiple well caissons, you must assign a letter designation.
(c) In naming single well caissons, you must use certain criteria as follows:
(1) For single well caissons not attached to a facility with a walkway, use the well designation. For example, Well No. 1;
(2) For single well caissons attached to a facility with a walkway, use the same designation as the facility. For example, rename Well No.10 as A–10; and
(3) For single well caissons with production equipment, use a letter designation for the facility name and a letter plus number designation for the well. For example, the Well No. 1 caisson would be designated as Facility A, and the well would be Well A–1.
§ 250.151 How do I name facilities in the Pacific Region?
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The operator assigns a name to the facility.
§ 250.152 How do I name facilities in the Alaska Region?
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Facilities will be named and identified according to the Regional Director's directions.
§ 250.153 Do I have to rename an existing facility or well?
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You do not have to rename facilities installed and wells drilled before January 27, 2000, unless the Regional Director requires it.
§ 250.154 What identification signs must I display?
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(a) You must identify all facilities, artificial islands, and mobile offshore drilling units with a sign maintained in a legible condition.
(1) You must display an identification sign that can be viewed from the waterline on at least one side of the platform. The sign must use at least 3-inch letters and figures.
(2) When helicopter landing facilities are present, you must display an additional identification sign that is visible from the air. The sign must use at least 12-inch letters and figures and must also display the weight capacity of the helipad unless noted on the top of the helipad. If this sign is visible to both helicopter and boat traffic, then the sign in paragraph (a)(1) of this section is not required.
(3) Your identification sign must:
(i) List the name of the lessee or designated operator;
(ii) In the GOM OCS Region, list the area designation or abbreviation and the block number of the facility location as depicted on OCS Official Protraction Diagrams or leasing maps;
(iii) In the Pacific OCS Region, list the lease number on which the facility is located; and
(iv) List the name of the platform, structure, artificial island, or mobile offshore drilling unit.
(b) You must identify singly completed wells and multiple completions as follows:
(1) For each singly completed well, list the lease number and well number on the wellhead or on a sign affixed to the wellhead;
(2) For wells with multiple completions, downhole splitter wells, and multilateral wells, identify each completion in addition to the well name and lease number individually on the well flowline at the wellhead; and
(3) For subsea wells that flow individually into separate pipelines, affix the required sign on the pipeline or surface flowline dedicated to that subsea well at a convenient location on the receiving platform. For multiple subsea wells that flow into a common pipeline or pipelines, no sign is required.
Right-of-use and Easement
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§ 250.160 When will MMS grant me a right-of-use and easement, and what requirements must I meet?
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MMS may grant you a right-of-use and easement on leased and unleased lands on the OCS, if you meet these requirements:
(a) You must need the right-of-use and easement to construct and maintain platforms, artificial islands, and installations and other devices at an OCS site other than an OCS lease you own, that are:
(1) Permanently or temporarily attached to the seabed; and
(2) Used for conducting exploration, development, and production activities or other operations on or off lease; or
(3) Used for other purposes approved by MMS.
(b) You must exercise the right-of-use and easement according to the regulations of this part;
(c) You must meet the requirements at 30 CFR 256.35 (Qualification of lessees); establish a regional Company File as required by MMS; and must meet bonding requirements;
(d) If you apply for a right-of-use and easement on a leased area, you must notify the lessee and give her/him an opportunity to comment on your application; and
(e) You must receive MMS approval for all platforms, artificial islands, and installations and other devices permanently or temporarily attached to the seabed.
(f) You must pay a fee as required by paragraph (g) of this section if:
(1) You obtain a right-of-use and easement after January 12, 2004; or
(2) You ask MMS to modify your right-of-use and easement to change the footprint of the associated platform, artificial island, or installation or device.
(g) If you meet either of the conditions in paragraph (f) of this section, you must pay a fee to MMS as shown in the following table:
------------------------------------------------------------------------
If... Then...
------------------------------------------------------------------------
(1) Your right-of-use and easement You must pay a rental of $5 per
site is located in water depths of acre per year with a minimum of
less than 200 meters; $450 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, installation or
device.
(2) Your right-of-use and easement You must pay a rental of $7.50 per
site is located in water depths of acre per year with a minimum of
200 meters or greater; $675 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 payments required by paragraph (g)(1) and (g)(2) of this section on an annual basis, for a 5-year period, or for multiples of 5 years. You must make the first payment at the time you submit the right-of-use and easement application. You must make all subsequent payments before the respective time periods begin.
(i) Late payments. An interest charge will be assessed on unpaid and underpaid amounts from the date the amounts are due, in accordance with the provisions found in 30 CFR 218.54. If you fail to make a payment that is late after written notice from MMS, MMS may initiate cancellation of the right-of-use grant and easement.
[64 FR 72775, Dec. 28, 1999, as amended at 68 FR 69311, Dec. 12, 2003; 69 FR 29433, May 24, 2004]
§ 250.161 What else must I submit with my application?
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With your application, you must describe the proposed use giving:
(a) Details of the proposed uses and activities including access needs and special rights of use that you may need;
(b) A description of all facilities for which you are seeking authorization;
(c) A map or plat describing primary and alternate project locations; and
(d) A schedule for constructing any new facilities, drilling or completing any wells, anticipated production rates, and productive life of existing production facilities.
§ 250.162 May I continue my right-of-use and easement after the termination of any lease on which it is situated?
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If your right-of-use and easement is on a lease, you may continue to exercise the right-of-use and easement after the lease on which it is situated terminates. You must only use the right-of-use and easement for the purpose that the grant specifies. All future lessees of that portion of the OCS on which your right-of-use and easement is situated must continue to recognize the right-of-use and easement for the purpose that the grant specifies.
§ 250.163 If I have a State lease, will MMS grant me a right-of-use and easement?
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(a) MMS may grant a lessee of a State lease located adjacent to or accessible from the OCS a right-of-use and easement on the OCS.
(b) MMS will only grant a right-of-use and easement under this paragraph to enable a State lessee to conduct and maintain a device that is permanently or temporarily attached to the seabed (i.e., a platform, artificial island, or installation). The lessee must use the device to explore for, develop, and produce oil and gas from the adjacent or accessible State lease and for other operations related to these activities.
§ 250.164 If I have a State lease, what conditions apply for a right-of-use and easement?
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(a) A right-of-use and easement granted under the heading of “Right-of-use and easement” in this subpart is subject to MMS regulations, 30 CFR parts 250 through 282, and any terms and conditions that the Regional Director prescribes.
(b) For the whole or fraction of the first calendar year, and annually after that, you must pay to MMS, in advance, an annual rental payment.
§ 250.165 If I have a State lease, what fees do I have to pay for a right-of-use and easement?
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When you apply for a right-of-use and easement, you must pay:
(a) A nonrefundable filing fee as specified in §0.1010(a); and
(b) The first year's rental as specified in §250.1009(c)(2).
§ 250.166 If I have a State lease, what surety bond must I have for a right-of-use and easement?
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(a) Before MMS issues you a right-of-use and easement on the OCS, you must furnish the Regional Director a surety bond for $500,000.
(b) The Regional Director may require additional security from you (i.e., security above the prescribed $500,000) to cover additional costs and liabilities for regulatory compliance. This additional surety:
(1) Must be in the form of a supplemental bond or bonds meeting the requirements of 30 CFR 256.54 (General requirements for bonds) or an increase in the coverage of an existing surety bond.
(2) Covers additional costs and liabilities for regulatory compliance, including well abandonment, platform and structure removal, and site clearance from the seafloor of the right-of-use and easement.
Suspensions
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§ 250.168 May operations or production be suspended?
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(a) You may request approval of a suspension, or the Regional Supervisor may direct a suspension (Directed Suspension), for all or any part of a lease or unit area.
(b) Depending on the nature of the suspended activity, suspensions are labeled either Suspensions of Operations (SOO) or Suspensions of Production (SOP).
§ 250.169 What effect does suspension have on my lease?
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(a) A suspension may extend the term of a lease (see §250.180(b)). The extension is equal to the length of time the suspension is in effect, except as provided in paragraph (b) of this section.
(b) A Directed Suspension does not extend the term of a lease when the Regional Supervisor directs a suspension because of:
(1) Gross negligence; or
(2) A willful violation of a provision of the lease or governing statutes and regulations.
§ 250.170 How long does a suspension last?
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(a) MMS may issue suspensions for up to 5 years per suspension. The Regional Supervisor will set the length of the suspension based on the conditions of the individual case involved. MMS may grant consecutive suspension periods.
(b) An SOO ends automatically when the suspended operation commences.
(c) An SOP ends automatically when production begins.
(d) A Directed Suspension normally ends as specified in the letter directing the suspension.
(e) MMS may terminate any suspension when the Regional Supervisor determines the circumstances that justified the suspension no longer exist or that other lease conditions warrant termination. The Regional Supervisor will notify you of the reasons for termination and the effective date.
§ 250.171 How do I request a suspension?
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You must submit your request for a suspension to the Regional Supervisor, and MMS must receive the request before the end of the lease term (i.e., end of primary term, end of the 180-day period following the last leaseholding operation, and end of a current suspension). Your request must include:
(a) The justification for the suspension including the length of suspension requested;
(b) A reasonable schedule of work leading to the commencement or restoration of the suspended activity;
(c) A statement that a well has been drilled on the lease and determined to be producible according to §§250.115, 250.116, or 250.1603 (SOP only);
(d) A commitment to production (SOP only); and
(e) The service fee listed in §250.125 of this subpart.
[70 FR 49876, Aug. 25, 2005]
§ 250.172 When may the Regional Supervisor grant or direct an SOO or SOP?
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The Regional Supervisor may grant or direct an SOO or SOP under any of the following circumstances:
(a) When necessary to comply with judicial decrees prohibiting any activities or the permitting of those activities. The effective date of the suspension will be the effective date required by the action of the court;
(b) When activities pose a threat of serious, irreparable, or immediate harm or damage. This would include a threat to life (including fish and other aquatic life), property, any mineral deposit, or the marine, coastal, or human environment. MMS may require you to do a site-specific study. (See §250.177(a).)
(c) When necessary for the installation of safety or environmental protection equipment;
(d) When necessary to carry out the requirements of NEPA or to conduct an environmental analysis; or
(e) When necessary to allow for inordinate delays encountered in obtaining required permits or consents, including administrative or judicial challenges or appeals.
§ 250.173 When may the Regional Supervisor direct an SOO or SOP?
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The Regional Supervisor may direct a suspension when:
(a) You failed to comply with an applicable law, regulation, order, or provision of a lease or permit; or
(b) The suspension is in the interest of national security or defense.
§ 250.174 When may the Regional Supervisor grant or direct an SOP?
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The Regional Supervisor may grant or direct an SOP when the suspension is in the national interest, and it is necessary because the suspension will meet one of the following criteria:
(a) It will allow you to properly develop a lease, including time to construct and install production facilities;
(b) It will allow you time to obtain adequate transportation facilities;
(c) It will allow you time to enter a sales contract for oil, gas, or sulphur. You must show that you are making an effort to enter into the contract(s); or
(d) It will avoid continued operations that would result in premature abandonment of a producing well(s).
§ 250.175 When may the Regional Supervisor grant an SOO?
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(a) The Regional Supervisor may grant an SOO when necessary to allow you time to begin drilling or other operations when you are prevented by reasons beyond your control, such as unexpected weather, unavoidable accidents, or drilling rig delays.
(b) The Regional Supervisor may grant an SOO when all of the following conditions are met:
(1) The lease was issued with a primary lease term of 5 years, or with a primary term of 8 years with a requirement to drill within 5 years;
(2) Before the end of the third year of the primary term, you or your predecessor in interest must have acquired and interpreted geophysical information that indicates:
(i) The presence of a salt sheet;
(ii) That all or a portion of a potential hydrocarbon-bearing formation may lie beneath or adjacent to the salt sheet; and
(iii) The salt sheet interferes with identification of the potential hydrocarbon-bearing formation.
(3) The geologic information required under paragraph (b)(2) of this section must include full 3-D depth migration beneath the salt sheet and over the entire lease area.
(4) Before requesting the suspension, you have conducted or are conducting additional data processing or interpretation of the geophysical information with the objective of identifying a potential hydrocarbon-bearing formation.
(5) You demonstrate that additional time is necessary to:
(i) complete current processing or interpretation of existing geophysical data or information;
(ii) acquire, process, or interpret new geophysical data or information; or
(iii) drill into the potential hydrocarbon-bearing formation identified as a result of the activities conducted in paragraphs (b)(2), (b)(4), and (b)(5) of this section.
(c) The Regional Supervisor may grant an SOO to conduct additional geological and geophysical data analysis that may lead to the drilling of a well below 25,000 feet true vertical depth below the datum at mean sea level (TVD SS) when all of the following conditions are met:
(1) The lease was issued with a primary lease term of:
(i) 5 years; or
(ii) 8 years with a requirement to drill within 5 years.
(2) Before the end of the fifth year of the primary term, you or your predecessor in interest must have acquired and interpreted geophysical information that:
(i) Indicates that all or a portion of a potential hydrocarbon-bearing formation lies below 25,000 feet TVD SS; and
(ii) Includes full 3–D depth migration over the entire lease area.
(3) Before requesting the suspension, you have conducted or are conducting additional data processing or interpretation of the geophysical information with the objective of identifying a potential hydrocarbon-bearing geologic structure or stratigraphic trap lying below 25,000 feet TVD SS.
(4) You demonstrate that additional time is necessary to:
(i) Complete current processing or interpretation of existing geophysical data or information;
(ii) Acquire, process, or interpret new geophysical or geological data or information that would affect the decision to drill the same geologic structure or stratigraphic trap, as determined by the Regional Supervisor, identified in paragraphs (c)(2) and (c)(3) of this section; or
(iii) Drill a well below 25,000 feet TVD SS into the geologic structure or stratigraphic trap identified as a result of the activities conducted in paragraphs (c)(2), (c)(3), and (c)(4)(i) and (ii) of this section.
[64 FR 72775, Dec. 28, 1999, as amended at 67 FR 44360, July 2, 2002; 70 FR 74663, Dec. 16, 2005]
§ 250.176 Does a suspension affect my royalty payment?
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A directed suspension may affect the payment of rental or royalties for the lease as provided in §218.154.
§ 250.177 What additional requirements may the Regional Supervisor order for a suspension?
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If MMS grants or directs a suspension under paragraph §250.172(b), the Regional Supervisor may require you to:
(a) Conduct a site-specific study.
(1) The Regional Supervisor must approve or prescribe the scope for any site-specific study that you perform.
(2) The study must evaluate the cause of the hazard, the potential damage, and the available mitigation measures.
(3) You must pay for the study unless you request, and the Regional Supervisor agrees to arrange, payment by another party.
(4) You must furnish copies and results of the study to the Regional Supervisor.
(5) MMS will make the results available to other interested parties and to the public.
(6) The Regional Supervisor will use the results of the study and any other information that becomes available:
(i) To decide if the suspension can be lifted; and
(ii) To determine any actions that you must take to mitigate or avoid any damage to the environment, life, or property.
(b) Submit a revised Exploration Plan (including any required mitigating measures);
(c) Submit a revised Development and Production Plan (including any required mitigating measures); or
(d) Submit a revised Development Operations Coordination Document according to 30 CFR Part 250, subpart B.
Primary Lease Requirements, Lease Term Extensions, and Lease Cancellations
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§ 250.180 What am I required to do to keep my lease term in effect?
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(a) If your lease is in its primary term:
(1) You must submit a report to the District Supervisor according to paragraphs (h) and (i) of this section whenever production begins initially, whenever production ceases during the last 180 days of the primary term, and whenever production resumes during the last 180 days of the primary term.
(2) Your lease expires at the end of its primary term unless you are conducting operations on your lease (see 30 CFR part 256). For purposes of this section, the term operations means, drilling, well-reworking, or production in paying quantities. The objective of the drilling or well-reworking must be to establish production in paying quantities on the lease.
(b) If you stop conducting operations during the last 180 days of your primary lease term, your lease will expire unless you either resume operations or receive an SOO or an SOP from the Regional Supervisor under §§250.172, 250.173, 250.174, or 250.175 before the end of the 180th day after you stop operations.
(c) If you extend your lease term under paragraph (b) of this section, you must pay rental or minimum royalty, as appropriate, for each year or part of the year during which your lease continues in force beyond the end of the primary lease term.
(d) If you stop conducting operations on a lease that has continued beyond its primary term, your lease will expire unless you resume operations or receive an SOO or an SOP from the Regional Supervisor under §250.172, 250.173, 250.174, or 250.175 before the end of the 180th day after you stop operations.
(e) You may ask the Regional Supervisor to allow you more than 180 days to resume operations on a lease continued beyond its primary term when operating conditions warrant. The request must be in writing and explain the operating conditions that warrant a longer period. In allowing additional time, the Regional Supervisor must determine that the longer period is in the national interest, and it conserves resources, prevents waste, or protects correlative rights.
(f) When you begin conducting operations on a lease that has continued beyond its primary term, you must immediately notify the District Supervisor either orally or by fax or e-mail and follow up with a written report according to paragraph (g) of this section.
(g) If your lease is continued beyond its primary term, you must submit a report to the District Supervisor under paragraphs (h) and (i) of this section whenever production begins initially, whenever production ceases, whenever production resumes before the end of the 180-day period after having ceased, or whenever drilling or well-reworking operations begin before the end of the 180-day period.
(h) The reports required by paragraphs (a) and (g) of this section must contain:
(1) Name of lessee or operator;
(2) The well number, lease number, area, and block;
(3) As appropriate, the unit agreement name and number; and
(4) A description of the operation and pertinent dates.
(i) You must submit the reports required by paragraphs (a) and (g) of this section within the following timeframes:
(1) Initialization of production—within 5 days of initial production.
(2) Cessation of production—within 15 days after the first full month of zero production.
(3) Resumption of production—within 5 days of resuming production after ceasing production under paragraph (i)(2) of this section.
(4) Drilling or well reworking operations—within 5 days of beginning and completing the leaseholding operations.
(j) For leases continued beyond the primary term, you must immediately report to the District Supervisor if operations do not begin before the end of the 180-day period.
§ 250.181 When may the Secretary cancel my lease and when am I compensated for cancellation?
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If the Secretary cancels your lease under this part or under 30 CFR part 256, you are entitled to compensation under §250.184. Section 250.185 states conditions under which you will receive no compensation. The Secretary may cancel a lease after notice and opportunity for a hearing when:
(a) Continued activity on the lease would probably cause harm or damage to life (including fish and other aquatic life), property, any mineral deposits (in areas leased or not leased), or the marine, coastal, or human environment;
(b) The threat of harm or damage will not disappear or decrease to an acceptable extent within a reasonable period of time;
(c) The advantages of cancellation outweigh the advantages of continuing the lease in force; and
(d) A suspension has been in effect for at least 5 years or you request termination of the suspension and lease cancellation.
§ 250.182 When may the Secretary cancel a lease at the exploration stage?
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MMS may not approve an exploration plan (EP) under 30 CFR part 250, subpart B, if the Regional Supervisor determines that the proposed activities may cause serious harm or damage to life (including fish and other aquatic life), property, any mineral deposits, the national security or defense, or to the marine, coastal, or human environment, and that the proposed activity cannot be modified to avoid the condition(s). The Secretary may cancel the lease if:
(a) The primary lease term has not expired (or if the lease term has been extended) and exploration has been prohibited for 5 years following the disapproval; or
(b) You request cancellation at an earlier time.
§ 250.183 When may MMS or the Secretary extend or cancel a lease at the development and production stage?
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(a) MMS may extend your lease if you submit a DPP and the Regional Supervisor disapproves the plan according to the regulations in 30 CFR part 250, subpart B. Following the disapproval:
(1) MMS will allow you to hold the lease for 5 years, or less time at your request;
(2) Any time within 5 years after the disapproval, you may reapply for approval of the same or a modified plan; and
(3) The Regional Supervisor will approve, disapprove, or require modification of the plan under 30 CFR part 250, subpart B.
(b) If the Regional Supervisor has not approved a DPP or required you to submit a DPP for approval or modification, the Secretary will cancel the lease:
(1) When the 5-year period in paragraph (a)(1) of this section expires; or
(2) If you request cancellation at an earlier time.
§ 250.184 What is the amount of compensation for lease cancellation?
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When the Secretary cancels a lease under §§250.181, 250.182 or 250.183 of this subpart, you are entitled to receive compensation under 43 U.S.C. 1334 (a)(2)(C). You must show the Director that the amount of compensation claimed is the lesser of paragraph (a) or (b) of this section:
(a) The fair value of the cancelled rights as of the date of cancellation, taking into account both:
(1) Anticipated revenues from the lease; and
(2) Costs reasonably anticipated on the lease, including:
(i) Costs of compliance with all applicable regulations and operating orders; and
(ii) Liability for cleanup costs or damages, or both, in the case of an oil spill.
(b) The excess, if any, over your revenues from the lease (plus interest thereon from the date of receipt to date of reimbursement) of:
(1) All consideration paid for the lease (plus interest from the date of payment to the date of reimbursement); and
(2) All your direct expenditures (plus interest from the date of payment to the date of reimbursement):
(i) After the issue date of the lease; and
(ii) For exploration or development, or both.
(c) Compensation for leases issued before September 18, 1978, will be equal to the amount specified in paragraph (a) of this section.
§ 250.185 When is there no compensation for a lease cancellation?
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You will not receive compensation from MMS for lease cancellation if:
(a) MMS disapproves a DPP because you do not receive concurrence by the State under section 307(c)(3)(B) (i) or (ii) of the CZMA, and the Secretary of Commerce does not make the finding authorized by section 307(c)(3)(B)(iii) of the CZMA;
(b) You do not submit a DPP under 30 CFR part 250, subpart B or do not comply with the approved DPP;
(c) As the lessee of a nonproducing lease, you fail to comply with the Act, the lease, or the regulations issued under the Act, and the default continues for 30 days after MMS mails you a notice by overnight mail;
(d) The Regional Supervisor disapproves a DPP because you fail to comply with the requirements of applicable Federal law; or
(e) The Secretary forfeits and cancels a producing lease under section 5(d) of the Act (43 U.S.C. 1334(d)).
Information and Reporting Requirements
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§ 250.187 xxx
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Link to an amendment published at 71 FR 19644, April 17, 2006.
§ 250.188 xxx
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Link to an amendment published at 71 FR 19644, April 17, 2006.
§ 250.189 xxx
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Link to an amendment published at 71 FR 19644, April 17, 2006.
§ 250.190 What reporting information and report forms must I submit?
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Link to an amendment published at 71 FR 19644, April 17, 2006.
Link to an amendment published at 71 FR 19644, April 17, 2006.
(a) You must submit information and reports as MMS requires.
(1) You may obtain copies of forms from, and submit completed forms to, the Regional or District Supervisor.
(2) Instead of paper copies of forms available from the Regional or District Supervisor, you may use your own computer-generated forms that are equal in size to MMS's forms. You must arrange the data on your form identical to the MMS form. If you generate your own form and it omits terms and conditions contained on the official MMS form, we will consider it to contain the omitted terms and conditions.
(3) You may submit digital data when the Region/District is equipped to accept it.
(b) When MMS specifies, you must include, for public information, an additional copy of such reports.
(1) You must mark it Public Information.
(2) You must include all required information, except information exempt from public disclosure under §250.196 or otherwise exempt from public disclosure under law or regulation.
§ 250.191 What accident reports must I submit?
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Link to an amendment published at 71 FR 19645, April 17, 2006.
(a) You must notify the District Supervisor of all serious accidents, any death or serious injury, and all fires, explosions, and blowouts connected with any activities or operations on the lease. You must report all spills of oil or other liquid pollutants according to 30 CFR part 254.
(b) If you hold an easement, right-of-way, or other permit, and your operation is related to the exercise of the easement, right-of-way, or other permit, you must comply with paragraph (a) by notifying and reporting to the Regional Supervisor any accidents occurring on the area covered by the easement, right-of-way, or other permit.
(c) Any investigation that the Secretary or the U.S. Coast Guard (USCG) conducts under the authority of sections 22(d)(1) and (2) of the Act (43 U.S.C. 1348 d(1) and (2)), is a fact-finding proceeding with no civil or criminal issues and no adverse parties. The purpose of the investigation is to prepare a public report that determines the cause or causes of the accident. The investigation may involve panel meetings conducted by a chairperson appointed by MMS. The following requirements must be met for any panel meetings involving persons giving testimony:
(1) A person giving testimony may have legal and/or other representative(s) present to provide advice or counsel while the person is giving testimony. The chairperson may require a verbatim transcript to be made of all oral testimony. The chairperson also may accept a sworn written statement in lieu of oral testimony.
(2) Only panel members, panel's legal advisors, and any experts the panel deems necessary may address questions to any person giving testimony.
(3) The chairperson may issue subpoenas to persons to appear and provide testimony and/or documents at a panel meeting. A subpoena may not require a person to attend a panel meeting held at a location more than 100 miles from where a subpoena is served.
(4) Any person giving testimony may request compensation for mileage and fees for service within 90 days after the panel meeting. The compensated expenses must be similar to mileage and fees the U.S. District Courts allow.
§ 250.192 What evacuation statistics must I submit?
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You must submit evacuation statistics to the Regional Supervisor for a natural occurrence such as an earthquake or hurricane. MMS will notify local and national authorities and the public, as appropriate. Statistics include facilities and rigs evacuated and amount of production shut-in for gas and oil. You must:
(a) Submit the statistics by fax or e-mail as soon as possible when evacuation occurs;
(b) Submit statistics on a daily basis by 11:00 a.m., as conditions allow, during the period of shut-in and evacuation;
(c) Inform MMS when you resume production; and
(d) Submit statistics either by MMS district or the total figures for your operations in the Region.
§ 250.193 Reports and investigations of apparent violations.
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Any person may report to MMS an apparent violation or failure to comply with any provision of the Act, any provision of a lease, license, or permit issued under the Act, or any provision of any regulation or order issued under the Act. When MMS receives a report of an apparent violation, or when an MMS employee detects an apparent violation after making an initial determination of the validity, MMS will investigate according to MMS procedures.
§ 250.194 What archaeological reports and surveys must I submit?
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(a) If it is likely that an archaeological resource exists in the lease area, the Regional Director will notify you in writing. You must include an archaeological report in the EP or DPP. If the archaeological report suggests that an archaeological resource may be present, you must either:
(1) Locate the site of any operation so as not to adversely affect the area where the archaeological resource may be; or
(2) Establish to the satisfaction of the Regional Director that an archaeological resource does not exist or will not be adversely affected by operations. This requires further archaeological investigation, conducted by an archaeologist and a geophysicist, using survey equipment and techniques the Regional Director considers appropriate. You must submit the investigation report to the Regional Director for review.
(b) If the Regional Director determines that an archaeological resource is likely to be present in the lease area and may be adversely affected by operations, the Regional Director will notify you immediately. You must not take any action that may adversely affect the archaeological resource until the Regional Director has told you how to protect the resource.
(c) If you discover any archaeological resource while conducting operations in the lease area, you must immediately halt operations within the area of the discovery and report the discovery to the Regional Director. If investigations determine that the resource is significant, the Regional Director will tell you how to protect it.
§ 250.195 Reimbursements for reproduction and processing costs.
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(a) MMS will reimburse you for costs of reproducing data and information that the Regional Director requests if:
(1) You deliver geophysical and geological (G&G) data and information to MMS for the Regional Director to inspect or select and retain;
(2) MMS receives your request for reimbursement and the Regional Director determines that the requested reimbursement is proper; and
(3) The cost is at your lowest rate or at the lowest commercial rate established in the area, whichever is less.
(b) MMS will reimburse you for the costs of processing geophysical information (that does not include cost of data acquisition):
(1) If, at the request of the Regional Director, you processed the geophysical data or information in a form or manner other than that used in the normal conduct of business; or
(2) If you collected the information under a permit that MMS issued to you before October 1, 1985, and the Regional Director requests and retains the information.
(c) When you request reimbursement, you must identify reproduction and processing costs separately from acquisition costs.
(d) MMS will not reimburse you for data acquisition costs or for the costs of analyzing or processing geological information or interpreting geological or geophysical information.
§ 250.196 Data and information to be made available to the public.
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Link to an amendment published at 71 FR 16039, March 30, 2006.
MMS will protect data and information you submit under this part, as described in this section. The tables in paragraphs (a) and (b) of this section describe what data and information will be made available to the public without the consent of the lessee and under what circumstances and in what time period.
(a) MMS will disclose data and information you submit on MMS forms according to the following table:
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Data and information that you
submit on form In the following items Will be released And
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(1) MMS-123, Application for Permit All entries except At any time........... The data and information in
to Drill. items 17, 24, and 25. items 17, 24, and 25 will
be released according to
the table in paragraph (b)
of this section or when
the well goes on
production, whichever is
earlier.
(2) MMS-124, Sundry Notices and All entries except At any time........... The data and information in
Reports on Wells. item 36. item 36 will be released
according to the table in
paragraph (b) or when the
well goes on production,
whichever is earlier.
(3) MMS-125, Well Summary Report... All entries except At any time........... The data and information in
items 17, 24, 34, 37, the excepted items will be
and 46 through 87. released according to the
table in paragraph (b) of
this section or when the
well goes on production,
whichever is earlier.
However, items 78 through
87 will not be released
when the well goes on
production unless the
period of time in the
table in paragraph (b) has
expired
(4) MMS-126, Well Potential Test All entries except When the well goes on The data and information in
Report. item 101. production. item 101 will be released
2 years after you submit
it.
(5) MMS-127, Request for Reservoir All entries except At any time........... The data and information in
Maximum Efficient Rate (MER). items 124 through 168. items 124 through 168 will
be released according to
the time periods in the
table in paragraph (b) of
this section.
(6) MMS-128, Semiannual Well Test All entries........... At any time...........
Report.
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(b) MMS will disclose lease data and information that you submit, but that are not usually submitted on MMS forms, according to the following table:
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If MMS will release At this time Special provisions
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(1) The Director determines that Geophysical data, At any time........... Data and information will
data and information are needed to Geological data, be shown only to persons
unitize operations on two or more Interpreted (G&G) with an interest in the
leases, to determine whether a information, issue.
reservoir is competitive to ensure Processed G&G
proper plans of development for information, Analyzed
competitive reservoirs, or to geological
promote operational safety or information.
protect the environment.
(2) The Director determines that Geophysical data, At any time........... MMS will release data and
data and information are needed Geological data information only if
for specific scientific or Interpreted G&G release would further the
research purposes for the information, national interest without
Government. Processed G&G unduly damaging the
information, Analyzedcompetitive position of (continued)