30 CFR § 550.1490 - What standards must my BOEM-specified surety instrument meet?

---
identifier: "/us/cfr/t30/s550.1490"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "30 CFR § 550.1490 - What standards must my BOEM-specified surety instrument meet?"
title_number: 30
title_name: "Mineral Resources"
section_number: "550.1490"
section_name: "What standards must my BOEM-specified surety instrument meet?"
chapter_name: "BUREAU OF OCEAN ENERGY MANAGEMENT, DEPARTMENT OF THE INTERIOR"
subchapter_number: "B"
subchapter_name: "OFFSHORE"
part_number: "550"
part_name: "OIL AND GAS AND SULFUR OPERATIONS IN THE OUTER CONTINENTAL SHELF"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "30 U.S.C. 1751; 31 U.S.C. 9701; 43 U.S.C. 1334."
regulatory_source: "76 FR 64623, Oct. 18, 2011, unless otherwise noted."
cfr_part: "550"
---


# 550.1490 What standards must my BOEM-specified surety instrument meet?

(a) A BOEM-specified surety instrument must be in a form specified in BOEM instructions. BOEM will give you written information and standard forms for BOEM-specified surety instrument requirements.

(b) BOEM will use a bank-rating service to determine whether a financial institution has an acceptable rating to provide a surety instrument adequate to indemnify the lessor from loss or damage.

(1) Administrative appeal bonds must be issued by a qualified surety company which the Department of the Treasury has approved.

(2) Irrevocable letters of credit or certificates of deposit must be from a financial institution acceptable to BOEM with a minimum 1-year period of coverage subject to automatic renewal up to 5 years.