Outer Continental Shelf Oil and Gas Leasing; Corrections
The Department of the Interior (DOI), acting through the Bureau of Ocean Energy Management (BOEM), is correcting citations in 30 CFR part 560. DOI issued two rules in 2008 and 2...
The Department of the Interior (DOI), acting through the Bureau of Ocean Energy Management (BOEM), is correcting citations in 30 CFR part 560. DOI issued two rules in 2008 and 2016 where some of the finalized amendments were never incorporated into the CFR. This document corrects 30 CFR part 560 to reflect the finalized amendments.
DATES:
Effective on October 19, 2026.
FOR FURTHER INFORMATION CONTACT:
Karen Thundiyil, Office Director, Office of Regulatory Affairs, BOEM, 1849 C Street NW, Washington, DC 20240, at email address
Regulatory.Affairs@boem.gov
or at telephone number (202) 742-0970.
SUPPLEMENTARY INFORMATION:
I. Background
On October 7, 2008, the Minerals Management Service (MMS), BOEM's predecessor agency, issued
Royalty Relief for Deepwater Outer Continental Shelf Oil and Gas Leases—Conforming Regulations to Court Decision
final rule (73 FR 58467), which, among other things, eliminated specific part 260 sections. The final rule removed sections 260.117 and 260.114(c), (d), and (e) from the CFR. However, later amendments to part 260 did not reflect the eliminated sections. Cross-references to eliminated sections 260.117 and 260.114(d) in part 260 remained.
On October 18, 2011, DOI published the
Reorganization of Title 30: Bureaus of Safety and Environmental Enforcement and Ocean Energy Management
final rule (76 FR 64432), which recodified 30 CFR part 260 regulations into the new 30 CFR chapter V, part 560. During this recodification, the invalid references to eliminated part 260 sections were carried forward into part 560.
On March 30, 2016, BOEM published the
Leasing of Sulfur or Oil and Gas in the Outer Continental Shelf
final rule (81 FR 18112). In the final rule, BOEM redesignated several sections in subparts A and B of part 560 and revised their titles to align with the numbering structure used throughout the regulation. However, BOEM did not include complete instructions to update references to reflect the redesignation. As a result, any references to the former section numbers that were not removed are invalid.
This document corrects invalid references in part 560.
II. Summary of Corrections
A. Sections 560.203(a) and (e)
Sections 560.203(a) and (e) currently cite section 560.110. In the
Leasing of Sulfur or Oil and Gas in the Outer Continental Shelf
final rule (81 FR 18112), BOEM redesignated section 560.110 as section 560.202. This document replaces the incorrect citation with the correct reference to section 560.202.
B. Section 560.210
The introductory paragraph of section 560.210 currently references section 560.113 and sections 560.113 through 560.117.
The final rule
Leasing of Sulfur or Oil and Gas in the Outer Continental Shelf
(81 FR 18112) redesignated sections 560.113 through 560.116 as sections 560.211 through 560.214. This document corrects the references.
In
Royalty Relief for Deepwater Outer Continental Shelf Oil and Gas Leases—Conforming Regulations to Court Decision
(73 FR 58467), MMS removed section 260.117 from the CFR. However, later amendments to part 260 did not reflect that deletion.
Reorganization of Title 30: Bureaus of Safety and Environmental Enforcement and Ocean Energy Management
(76 FR 64432) recodified part 260 regulations
( printed page 65983)
into the new 30 CFR chapter V, part 560. During this recodification, an invalid reference to former section 260.117 was carried forward as section 560.117. This document removes the obsolete citation.
C. Section 560.211
Section 560.211(a) currently includes a reference to section 560.110 (g). The final rule
Leasing of Sulfur or Oil and Gas in the Outer Continental Shelf
final rule (81 FR 18112) redesignated section 560.110 as section 560.202. This document corrects the section to reference section 560.202(g).
D. Section 560.220
The introductory paragraph of section 560.220 currently references sections 560.121 through 560.124. In the
Leasing of Sulfur or Oil and Gas in the Outer Continental Shelf
final rule (81 FR 18112), BOEM redesignated sections 560.121 through 560.124 as sections 560.221 through section 560.224. Accordingly, this document corrects section 560.220 to reference sections 560.221 through 560.224.
E. Section 560.222
Section 560.222(b)(3) currently includes references to sections 560.120 through 560.124. The final rule
Leasing of Sulfur or Oil and Gas in the Outer Continental Shelf
(81 FR 18112) redesignated sections 560.120 through 560.124 as sections 560.220 through 560.224. This document corrects section 560.222(b)(3) to reference sections 560.220 through 560.224.
F. Section 560.224
Section 560.224(b)(1) currently references section 560.114(d). As explained earlier, DOI previously recodified the regulations in section 260.114 to section 560.114, and earlier, the MMS
Royalty Relief for Deepwater Outer Continental Shelf Oil and Gas Leases—Conforming Regulations to Court Decision
final rule (73 FR 58467) removed sections 260.114(c), (d), and (e). The subsequent regulatory revisions did not account for this removal, and an incorrect reference to former section 260.114(d) remained. It was carried forward as section 560.114(d). This document corrects that error by eliminating the reference to 560.114(d). The regulatory text is clear as written and reference to another regulatory citation is unnecessary.
G. Section 560.230
The introductory paragraph of section 560.230 currently cites section 560.110. The
Leasing of Sulfur or Oil and Gas in the Outer Continental Shelf
final rule (81 FR 18112) redesignated section 560.110 as section 560.202. This document corrects section 560.110 to reference to section 560.202.
What conditions apply to the bidding system that BOEM uses?
(a) For each of the bidding systems in § 560.202, we will include an annual rental fee. Other fees and provisions may apply as well. The Notice of OCS Lease Sale published in the
Federal Register
will specify the annual rental and any other fees the highest responsible qualified bidder must pay and any other provisions.
* * * * *
(e) We may, by rule, add to or modify the bidding systems listed in § 560.202, according to the procedural requirements of the OCSLA, 43 U.S.C. 1331et seq.,
as amended by Public Law 95-372, 92 Stat. 629.
3. Amend § 560.210 by revising the introductory paragraph to read as follows:
How do royalty suspension volumes apply to eligible leases?
Royalty suspension volumes, as specified in section 304 of the Act, apply to eligible leases that meet the criteria in § 560.211. For purposes of this section and §§ 560.211 through 560.214:
* * * * *
4. Amend § 560.211 by revising paragraph (a) to read as follows:
How does royalty suspension apply to leases issued in a sale held after November 2000?
We may issue leases with suspension of royalties for a period, volume or value of production, as authorized in section 303 of the Act. For purposes of this section and §§ 560.221 through 560.224:
* * * * *
6. Amend § 560.222 by revising paragraph (b)(3) to read as follows:
How long will a royalty suspension volume be effective for a lease issued in a sale held after November 2000?
* * * * *
(b) * * *
(3) Any production on which you must pay royalty under this paragraph will count toward the production volume determined under §§ 560.220 through 560.224.
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7. Amend § 560.224 by revising paragraph (b)(1) to read as follows:
How will royalty suspension apply if BOEM assigns a lease issued in a sale held after November 2000 to a field that has a pre-Act lease?
* * * * *
(b) * * *
(1) Royalty-free production from your RS lease shares from and counts as part of any royalty suspension volume for the field to which we assign your lease; and
* * * * *
8. Amend § 560.230 by revising the introductory paragraph to read as follows:
What criteria does BOEM use for selecting bidding systems and bidding system components?
In analyzing the application of one of the bidding systems listed in § 560.202 to tracts selected for any OCS lease sale, we may, at our discretion, consider the following purposes and policies. We recognize that each of the purposes and
( printed page 65984)
policies may not be specifically applicable to the selection process for a particular bidding system or tract, or may present a conflict that we will have to resolve in the process of bidding system selection. The order of listing does not denote a ranking.
30 CFR part 560
30 U.S.C. 1714