C.F.R. » Title 30 » CHAPTER II—BUREAU OF SAFETY AND ENVIRONMENTAL ENFORCEMENT, DEPARTMENT OF THE INTERIOR › SUBCHAPTER B—OFFSHORE › PART 250—OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER CONTINENTAL SHELF › Subpart Q—Decommissioning Activities

30 C.F.R. § 250.1702

When do I accrue decommissioning obligations?

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You accrue decommissioning obligations when you do any of the following:

(a) Drill a well;

(b) Install a platform, pipeline, or other facility;

(c) Create an obstruction to other users of the OCS;

(d) Are or become a lessee or the owner of operating rights of a lease on which there is a well that has not been permanently plugged according to this subpart, a platform, a lease term pipeline, or other facility, or an obstruction;

(e) Are or become a holder of a pipeline right-of-way grant on which there is a pipeline, platform, other facility, or an obstruction;

(f) Are or become the holder of a right-of-use and easement grant on which there is a well, pipeline, platform, other facility, or an obstruction; or

(g) Re-enter a well that was previously plugged according to this subpart.

[76 FR 64462, Oct. 18, 2011, as amended at 88 FR 23580, Apr. 18, 2023]
Notes of Decisions
Cited in 7 cases (1 in the last 5 years), 2010–2025 · leading case: Apache Corp. v. W & T Offshore, Inc., 626 F.3d 789 (5th Cir. 2010).
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Apache Corp. v. W & T Offshore, Inc., 626 F.3d 789 (5th Cir. 2010). “Although federal regulations specify that decommissioning obligations accrue when the platform is installed, 30 C.F.R. § 250.1702 , this does not mean that the cost of such obligations is also realized at this time.”
Noble Energy, Inc. v. Salazar, 770 F. Supp. 2d 322 (D.D.C. 2011). “Under 30 C.F.R. § 250.1702 , the obligation to permanently plug and abandon a well accrues upon the drilling of a well or, as in Noble’s case, upon becoming a lessee of a lease on which there is a well that has not been permanently plugged.”
Taylor Energy Co. v. United States Dep't of the Interior, 734 F. Supp. 2d 112 (D.D.C. 2010). “See 30 C.F.R. § 250.1702 . In June 2008, MMS and BP executed a separate agreement that apparently contemplated the possibility of Taylor’s inability to satisfy its obligations.”
Ankor Energy, LLC et al. v. Merit Mgmt. Partners I, L.P. et al. (E.D. La. 2025). “30 C.F.R. § 250.1702 ; see also Total E&P, 824 F.”
Noble Energy, Inc. v. Salazar (D.D.C. 2011). “Under 30 C.F.R. § 250.1702 , the obligation to permanently plug and abandon a well accrues upon the drilling of a well or, as in Noble’s case, upon becoming a lessee of a lease on which there is a well that has not been permanently plugged.”
Taylor Energy Co. LLC v. United States Dep't of the Interior (D.D.C. 2010). “See 30 C.F.R. § 250.1702 . In June 2008, MMS and BP executed a separate agreement that apparently contemplated the possibility of Taylor’s inability to satisfy its obligations.”
Noble Energy, Inc. v. Jewell, 110 F. Supp. 3d 5 (D.D.C. 2015). “1701 ); and that they remain binding after a lease has been assigned or relinquished, see id.”
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