30 CFR 1208.11 - Surety requirements.

§ 1208.11 Surety requirements.
(a) The eligible purchaser, prior to execution of the contract, shall furnish an “ONRR-specified surety instrument,” in an amount equal to the estimated value of royalty oil that could be taken by the purchaser in a 99-day period, plus related administrative charges. The ONRR may require the purchaser to increase the amount of the surety instrument when necessary to protect the Government's interest or may allow the purchaser to decrease the amount of the surety instrument where necessary to further the purposes of the Royalty-in-Kind Program.
(b) If a letter of credit is furnished as the surety instrument, it must be effective for a 9-month period beginning the first day the royalty oil contract is effective, with a clause providing for automatic renewal monthly for a new 9-month period. The purchaser or its surety company may elect not to renew the letter of credit at any monthly anniversary date, but must notify ONRR of its intent not to renew at least 30 days prior to the anniversary date. The ONRR may grant the purchaser 45 days to obtain a new surety instrument. If no replacement surety instrument is provided, ONRR will terminate the contract effective at least 6 months prior to the expiration date of the letter of credit. Notwithstanding the above provisions, the letter of credit also may contain a clause providing for automatic termination 6 months after the royalty oil contract terminates. If a certificate of deposit is furnished as the surety instrument, it must be effective for the life of the contract plus 6 months after the royalty oil contract terminates.
(c) For the purposes of this section, an “ONRR-specified surety instrument” means either: an ONRR-specified surety bond, an ONRR-specified irrevocable letter of credit, or a financial institution book-entry certificate of deposit.
(d) The “ONRR-specified surety instrument” shall be in a form specified by ONRR instructions or approved by ONRR. A bond must be issued by a qualified surety company that has been approved by the Department of the Treasury. An irrevocable letter of credit or a certificate of deposit must be from a financial institution acceptable to ONRR. The ONRR will use a bank rating service to determine whether a financial institution has an acceptable rating to provide a surety instrument deemed adequate to indemnify the Government from loss or damage.
(e) All surety instruments must be in a form acceptable to ONRR and must include such other specific requirements as ONRR may require adequately to protect the Government's interests.
[58 FR 64901, Dec. 10, 1993]

Title 30 published on 2013-07-01

no entries appear in the Federal Register after this date.

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.


United States Code
U.S. Code: Title 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES
U.S. Code: Title 30 - MINERAL LANDS AND MINING

§ 181 - Lands subject to disposition; persons entitled to benefits; reciprocal privileges; helium rights reserved

§ 182 - Lands disposed of with reservation of deposits of coal, etc.

§ 183 - Cancellation of prospecting permits

§ 184 - Limitations on leases held, owned or controlled by persons, associations or corporations

§ 184a - Authorization of States to include in agreements for conservation of oil and gas resources lands acquired from United States

§ 185 - Rights-of-way for pipelines through Federal lands

§ 186 - Reservation of easements or rights-of-way for working purposes; reservation of right to dispose of surface of lands; determination before offering of lease; easement periods

§ 187 - Assignment or subletting of leases; relinquishment of rights under leases; conditions in leases for protection of diverse interests in operation of mines, wells, etc.; State laws not impaired

§ 187a - Oil or gas leases; partial assignments

§ 187b - Oil or gas leases; written relinquishment of rights; release of obligations

§ 188 - Failure to comply with provisions of lease

§ 188a - Surrender of leases

§ 189 - Rules and regulations; boundary lines; State rights unaffected; taxation

§ 190 - Oath; requirement; form; blanks

§ 191 - Disposition of moneys received

§ 191a - Late payment charges under Federal mineral leases

§ 191b - Collection of unpaid and underpaid royalties and late payment interest owed by lessees

§ 192 - Payment of royalties in oil or gas; sale of such oil or gas

§ 192a - Cancellation or modification of contracts

§ 192b - Application to contracts

§ 192c - Rules and regulations governing issuance of certain leases; disposition of receipts

§ 193 - Disposition of deposits of coal, and so forth

§ 193a - Preference right of United States to purchase coal for Army and Navy; price for coal; civil actions; jurisdiction

§ 194 - Repealed.

§ 195 - Enforcement

§ 196 - Cooperative agreements; delegation of authority

§ 351 - Definitions

§ 352 - Deposits subject to lease; consent of department heads; lands excluded

§ 353 - Sale of lands unaffected; reservation of mineral rights; sale subject to prior lease; naval petroleum reserves unaffected

§ 354 - Lease of partial or future interests in deposits

§ 355 - Disposition of receipts

§ 356 - Furnishing description of lands and title documents; recordation of documents; authenticated copies

§ 357 - State or local government rights; taxation

§ 358 - Rights under prior leases; priority of pending applications; exchange of leases

§ 359 - Rules and regulations

§ 360 - Authority to manage certain mineral leases

§ 1701 - Congressional statement of findings and purposes

§ 1702 - Definitions

U.S. Code: Title 31 - MONEY AND FINANCE
U.S. Code: Title 43 - PUBLIC LANDS

§ 1301 - Definitions

§ 1302 - Resources seaward of Continental Shelf

§ 1303 - Amendment, modification, or repeal of other laws

§ 1331 - Definitions

§ 1332 - Congressional declaration of policy

§ 1333 - Laws and regulations governing lands

§ 1334 - Administration of leasing

§ 1335 - Validation and maintenance of prior leases

§ 1336 - Controversies over jurisdiction; agreements; payments; final settlement or adjudication; approval of notice concerning oil and gas operations in Gulf of Mexico

§ 1337 - Leases, easements, and rights-of-way on the outer Continental Shelf

§ 1338 - Disposition of revenues

§ 1338a - Moneys received as a result of forfeiture by Outer Continental Shelf permittee, lessee, or right-of-way holder; return of excess amounts

§ 1339 - Repealed.

§ 1340 - Geological and geophysical explorations

§ 1341 - Reservation of lands and rights

§ 1342 - Prior claims as unaffected

§ 1343 - Repealed.

§ 1344 - Outer Continental Shelf leasing program

§ 1345 - Coordination and consultation with affected State and local governments

§ 1346 - Environmental studies

§ 1347 - Safety and health regulations

§ 1348 - Enforcement of safety and environmental regulations

§ 1349 - Citizens suits, jurisdiction and judicial review

§ 1350 - Remedies and penalties

§ 1351 - Oil and gas development and production

§ 1352 - Oil and gas information program

§ 1353 - Federal purchase and disposition of oil and gas

§ 1354 - Limitations on export of oil or gas

§ 1355 - Restrictions on employment of former officers or employees of Department of the Interior

§ 1356 - Documentary, registry and manning requirements

§ 1356a - Coastal impact assistance program

§ 1801 - Congressional findings

§ 1802 - Congressional declaration of purposes