until you amend the instrument to cover the new appeals.

Subpart C-Financial Solvency Requirements

§ 243.200 How do I demonstrate financial solvency?

(a) To demonstrate financial solvency under this part, you must submit an audited consolidated balance sheet, and, if requested by the MMS bond-approving officer, up to 3 years of tax returns to the MMS, Debt Collection Section using:

(1) The U.S. Postal Service or private delivery at P.O. Box 5760, MS 3031, Denver, CO 80217-5760; or

(2) Courier or overnight delivery at MS 3031, Denver Federal Center, Bldg. 85, Room A-212, Denver, CO 80225- 0165.

(b) You must submit an audited consolidated balance sheet annually, and, if requested, additional annual tax returns on the date MMS first determined that you demonstrated financial solvency as long as you have active appeals, or whenever MMS requests.

(c) If you demonstrate financial solvency in the current calendar year, you are not required to redemonstrate financial solvency for new appeals of orders during that calendar year unless you file for protection under any provision of the U.S. Bankruptcy Code (Title 11 of the United States Code), or MMS notifies you that you must redemonstrate financial solvency.

§ 243.201 How will MMS determine if I am financially solvent?

(a) The MMS bond-approving officer will determine your financial solvency by examining your total net worth, including, as appropriate, the net worth of your affiliated entities.

(b) If your net worth, minus the amount we would require as surety under subpart B for all orders you have appealed is greater than $300 million, you are presumptively deemed financially solvent, and we will not require you to post a bond or other surety instrument.

(c) If your net worth, minus the amount we would require as surety under subpart B for all orders you have appealed is less than $300 million, you must submit the following to the MMS

(i) You must pay the processing fee to us following the requirements for making payments found in 30 CFR 218.51. You are not required to use Electronic Funds Transfer (EFT) for these payments;

(ii) You must submit the fee with your request under paragraph (c)(1) of this section, and then annually on the date we first determined that you demonstrated financial solvency, as long as you are not able to demonstrate financial solvency under paragraph (a) of this section and you have active appeals.

(d) If you request that we consult a business-information or credit-reporting service or program under paragraph (c) of this section:

(1) We will use criteria similar to that which a potential creditor would use to lend an amount equal to the bond or other surety instrument we would require under subpart B;

or

(2) For us to consider you financially solvent, the business-information credit-reporting service or program must demonstrate your degree of risk as low to moderate:

(i) If our bond-approving officer determines that the business-information or credit-reporting service or program information demonstrates your financial solvency to our satisfaction, our bond-approving officer will not require you to post a bond or other surety instrument under subpart B;

(ii) If our bond-approving officer determines that the business-information or credit-reporting service or program information does not demonstrate your financial solvency to our satisfaction, our bond-approving officer will require you to post a bond or other surety instrument under subpart B or pay the obligation.

§ 243.202 When will MMS monitor my financial solvency?

(a) If you are presumptively financially solvent under §243.201(b), MMS

will determine your net worth as described under §§ 243.201(b) and (c) to evaluate your financial solvency at least annually on the date we first determined that you demonstrated financial solvency as long as you have active appeals and each time you appeal a new order.

(b) If you ask us to consult a business-information credit-reporting

or

service or program under § 243.201(c), we will consult a service or program annually as long as you have active appeals and each time you appeal a new order. (c) If our bond-approving officer determines that you are no longer financially solvent, you must post a bond or other MMS-specified surety instrument under subpart B.

PERFORMANCE STANDARDS

250.106 What standards will the Director use to regulate lease operations? 250.107 What must I do to protect health, safety, property, and the environment? 250.108 What requirements must I follow for cranes and other material-handling equipment?

250.109 What documents must I prepare and maintain related to welding?

250.110 What must I include in my welding plan?

250.111 Who oversees operations under my welding plan?

250.112 What standards must my welding equipment meet?

250.113 What procedures must I follow when welding?

250.114 How must I install and operate electrical equipment?

250.115 How do I determine

producibility?

well

250.116 How do I determine producibility if my well is in the Gulf of Mexico? 250.117 How does a determination of well producibility affect royalty status? 250.118 Will MMS approve gas injection? 250.119 Will MMS approve subsurface gas storage?

250.120 How does injecting, storing, or treating gas affect my royalty payments? 250.121 What happens when the reservoir contains both original gas in place and injected gas?

250.122 What effect does subsurface storage have on the lease term?

250.123 Will MMS allow gas storage on unleased lands?

250.124 Will MMS approve gas injection into the cap rock containing a sulphur deposit?

INSPECTION OF OPERATIONS

250.130 Why does MMS conduct inspections?

RIGHT-OF-USE AND EASEMENT

250.160 When will MMS grant me a right-ofuse and easement, and what requirements must I meet?

250.161 What else must I submit with my application?

250.162 May I continue my right-of-use and easement after the termination of any lease on which it is situated? 250.163 If I have a State lease, will MMS grant me a right-of-use and easement? 250.164 If I have a State lease, what conditions apply for a right-of-use and easement?

250.165 If I have a State lease, what fees do I have to pay for a right-of-use and easement?

250.166 If I have a State lease, what surety bond must I have for a right-of-use and easement?

SUSPENSIONS

250.168 May operations or production be suspended?

250.169 What effect does suspension have on my lease?

250.170 How long does a suspension last? 250.171 How do I request a suspension? 250.172 When may the Regional Supervisor grant or direct an SOO or SOP? 250.173 When may the Regional Supervisor direct an SOO or SOP?

250.174 When may the Regional Supervisor grant or direct an SOP?

250.175 When may the Regional Supervisor grant an SOO?

250.176 Does a suspension affect my royalty payment?

250.177 What additional requirements may the Regional Supervisor order for a suspension?

PRIMARY LEASE REQUIREMENTS, LEASE TERM EXTENSIONS, AND LEASE CANCELLATIONS 250.180 What am I required to do to keep my lease term in effect?

250.181 When may the Secretary cancel my lease and when am I compensated for cancellation? 250.182 When may the Secretary cancel a lease at the exploration stage? 250.183 When may MMS or the Secretary extend or cancel a lease at the development and production stage?

250.184 What is the amount of compensation for lease cancellation?

250.185 When is there no compensation for a lease cancellation?

INFORMATION AND REPORTING REQUIREMENTS 250.190 What reporting information and report forms must I submit?

250.191 What accident reports must I submit?

250.192 What evacuation statistics must I submit?

250.193 Reports and investigations of apparent violations.

250.194 What archaeological reports and sur

250.1006 Abandonment and out-of-service requirements for DOI pipelines.

250.1007 What to include in applications. 250.1008 Reports.

250.1009 General requirements for a pipeline right-of-way grant.

250.1010 Applications for a pipeline right-ofway grant.

250.1011 Granting a pipeline right-of-way. 250.1012 Requirements for construction under a right-of-way grant.

250.1013 Assignment of a right-of-way grant. 250.1014 Relinquishment of a right-of-way grant.

Subpart K-Oil and Gas Production Rates 250.1100 Definitions for production rates. 250.1101 General requirements and classification of reservoirs.

250.1102 Oil and gas production rates. 250.1103 Well production testing. 250.1104 Bottomhole pressure survey. 250.1105 Flaring or venting gas and burning liquid hydrocarbons.

250.1106 Downhole commingling.

250.1107 Enhanced oil and gas recovery operations.

Subpart L-Oil and Gas Production Measurement, Surface Commingling, and Security

250.1200 Question index table.