(a) The basic financial assurance requirements for each stage of your commercial lease are as follows: ------------------------------------------------------------------------
(1) Issue a commercial lease or approve A $100,000 minimum, lease-
an assignment of an existing specific financial assurance.
commercial lease.(2) Approve your SAP................... A supplemental bond or other
financial assurance, in an
amount determined by BOEM, if
upon reviewing your SAP, BOEM
determines that a supplemental
bond is required in addition
to your minimum lease-specific
bond, due to the complexity,
number, and location of any
facilities involved in your
site assessment activities.(3) Approve your COP................... A supplemental bond or other
financial assurance, in an
amount determined by BOEM
based on the complexity,
number, and location of all
facilities involved in your
planned activities and
commercial operation. The
supplemental financial
assurance requirement is in
addition to your lease-
specific bond and, if
applicable, the previous
supplement associated with SAP
approval.(4) Allow you to install facilities A decommissioning bond or other
approved in your COP. financial assurance, in an
amount determined by BOEM
based on anticipated
decommissioning costs. BOEM
will allow you to provide your
financial assurance for
decommissioning in accordance
with the number of facilities
installed or being installed.
BOEM must approve the schedule
for providing the appropriate
financial assurance coverage.------------------------------------------------------------------------
(b) Each bond or other financial assurance must guarantee compliance with all terms and conditions of the lease. You may provide a new bond or increase the amount of your existing bond, to satisfy any additional financial assurance requirements.
(c) For hydrokinetic commercial leases, supplemental financial assurance may be required in an amount determined by BOEM before FERC issues a license.