Purpose of NTL

NTL clarifies method Gulf of Mexico OCS Region (GOMR) regarding the implementation of the requirements for general lease surety bonds that are present in 30 CFR 256 Subpart I. However, these securities are required to ensure that you act in accordance with regulatory and lease requirements to include rents, royalties, environmental damage and clean-up activities fully that are not linked to oil spills, abandonment and site clearance, and other lease obligations.

Before the Minerals Management Service (MMS) issued a new lease or approving a lease with the task earlier operational activity level, you should be able to provide a general lease surety bond. And specifically GOMR will begin a review of your bonding coverages when you present a request for a change of designated operator of a lease, an initial exploration plan (EP), an initial development and production plan (DPP), a preliminary Development Operations Coordination Document (DOCD) or a significant modification of an approved EP, DPP, or DOCD, or a request for assignment of a lease agreement with an approved EP, DPP, or DOCD.

The authorized officer MMS you can consent to provide the general lease surety bond, after we have decided to accept a task if it is for a good cause. But it must be before you begin an operational activity under the relevant plan. The presentation of a general lease surety bond by the designated operator, 30 CFR 256.52 (c) shall not relieve any of the tenants of their obligations to abide by the terms and conditions of the lease. The activity at your rental agreement specifies the amount of general lease surety bond coverage.

The GOMR designate each lease as No Operations, Exploration or development as follows:

1.No Operations - a $ 50,000 lease-specific or $ 300,000 for the entire euro area generally lease guarantee bond for leases with non-approved operational plan of activities for multimedia or treatment of leases under an MMS-approved operational activity plan, but without reference for multimedia on the assignment or operational activity plans. If you have supplied a valid lease-specific or area-wide lease surety bond, you do not offer this bond after one of the following higher standards.

2.Exploration - A $ 200,000 lease-specific or $ 1,000,000 for the entire euro area generally lease guarantee bond for leases in a proposal to Parliament or a significant modification of an approved European Parliament, or a proposal for assignment of a lease agreement with an approved EP. You do not need to provide this bond if you have a valid lease-specific or area-wide general lease surety bond at a subsequent higher requirement.

3.Development - A $ 500,000 lease-specific or $ 3,000,000 for the entire euro area generally lease guarantee bond for leases in a proposed DPP or DOCD to an approved DPP or DOCD, or a proposal for assignment of a lease agreement with an approved DPP or DOCD .

To satisfy the requirement to provide the general lease surety bonds, you might give bonds issued by a surety that is certified by the U.S. Department of Treasury or the U.S. Securities and circulation at the time of submission for an amount of cash equal to the value of the required bonds. The authorized MMS officer can connect multiple possibilities for U.S. Treasury-certified bonds and U.S. securities whose interests the U.S. government are protected to the same extent as such historically accepted financial instruments.

Currently GOMR accept a bond from the U.S. Treasury-certified deposits and U.S. Treasury securities that have a cash value at time of purchase equal to the amount claimed. And currently GOMR will consider optional instruments that provide the same degree of security, as these are accepted. The GOMR have considered unacceptable alternatives such as letters of credit or escrow accounts production history as well as enlightening perspectives.