30 CFR § 550.185 - When is there no compensation for a lease cancellation?

---
identifier: "/us/cfr/t30/s550.185"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "30 CFR § 550.185 - When is there no compensation for a lease cancellation?"
title_number: 30
title_name: "Mineral Resources"
section_number: "550.185"
section_name: "When is there no compensation for a lease cancellation?"
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"
---


# 550.185 When is there no compensation for a lease cancellation?

You will not receive compensation from BOEM for lease cancellation if:

(a) BOEM 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 550, 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 BOEM 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)).