30 CFR § 556.403 - Under what circumstances may I be disqualified from acquiring a lease or an interest in a lease on the OCS?

---
identifier: "/us/cfr/t30/s556.403"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "30 CFR § 556.403 - Under what circumstances may I be disqualified from acquiring a lease or an interest in a lease on the OCS?"
title_number: 30
title_name: "Mineral Resources"
section_number: "556.403"
section_name: "Under what circumstances may I be disqualified from acquiring a lease or an interest in a lease on the OCS?"
chapter_name: "BUREAU OF OCEAN ENERGY MANAGEMENT, DEPARTMENT OF THE INTERIOR"
subchapter_number: "B"
subchapter_name: "OFFSHORE"
part_number: "556"
part_name: "LEASING OF SULFUR OR OIL AND GAS AND FINANCIAL ASSURANCE REQUIREMENTS 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: "31 U.S.C. 9701; 42 U.S.C. 6213; 43 U.S.C. 1334."
regulatory_source: "81 FR 18152, Mar. 30, 2016, unless otherwise noted."
cfr_part: "556"
---


# 556.403 Under what circumstances may I be disqualified from acquiring a lease or an interest in a lease on the OCS?

You may be disqualified from acquiring a lease or an interest in a lease on the OCS if:

(a) You or your principals are excluded or disqualified from participating in a transaction covered by Federal non-procurement debarment and suspension (2 CFR parts 180 and 1400), unless the Department explicitly approves an exception for a transaction pursuant to the regulations in those parts;

(b) The Secretary finds, after notice and hearing, that you or your principals (including in the meaning of “you,” for purposes of this subparagraph, a bidder or prospective bidder) fail to meet due diligence requirements or to exercise due diligence under section 8(d) of OCSLA (43 U.S.C. 1337(d)) on any OCS lease; or

(c) BOEM disqualifies you from acquiring a lease or an interest in a lease on the OCS based on your unacceptable operating performance. BOEM will give you adequate notice and opportunity for a hearing before imposing a disqualification, unless BSEE has already provided such notice and opportunity for a hearing.

[81 FR 34275, May 31, 2016]