NTL 1989-G07 - Supplemental Bonds - December 15, 1989

Supplemental bonds may be deemed necessary, under the provisions of 30 CFR 256.61 after operations or production have begun, prior to approval of: assignments of interests in leases, designations of operator, exploration plans, development and production plans or development operations coordination documents, or at any other time, where the Minerals Management Service infers that the obligee may not have the financial wherewithal or expertise to carry out the obligations of the lease. Such an inference may be drawn when the obligee has demonstrated a failure to comply with royalty or rental payments, failed to comply with OCS operating regulations, or otherwise indicated a potential inability to carry out the obligations of the lease.