FORM BOEM-1020 (January 2020)
Previous Editions are Obsolete.
U.S. Department of the Interior
Bureau of Ocean Energy Management
OBM Control No.:
1010-0106
Expiration Date: 01/31/2023
SURETY BOND
CERTIFICATION OF OIL SPILL FINANCIAL RESPONSIBILITY
IN ACCORDANCE WITH THE REQUIREMENTS OF THE OIL POLLUTION ACT OF 1990
(TYPE OR PRINT ALL INFORMATION EXCEPT SIGNATURES)
1. Designated Applicant
:
COMPANY LEGAL NAME BOEM COMPANY NUMBER
2. Surety Company Bond Number: .
3. The Designated Applicant and Responsible Parties, identified in form(s) BOEM-1017 on file or attached, and
____________________________, a company created under the laws of _______________________, and
NAME OF SURETY COMPANY STATE
authorized to do business in the United States, as Surety (hereinafter called Surety), are held and firmly bound
unto the United States of America and other claimants for damages and removal cost liability under the Oil
Pollution Act of 1990, 33 U.S.C. § 2701 et seq. (hereinafter called Act), in the sum of $ ______________, for
AMOUNT
which payment, we bind ourselves and our heirs, executors, administrators, successors, and assigns, jointly and
severally, under the terms and conditions of Part 553 of Title 30 of the Code of Federal Regulations. This bond is
hereby provided on behalf of the Responsible Parties to comply with the requirements of 33 U.S.C. § 2716(c) and
is offered to satisfy any claim made under OPA.
4. The liability of the Surety will not be discharged by any payment or succession of payments hereunder, unless
and until such payment or payments will amount in the aggregate to the penalty of the bond. In no event will the
Surety’s obligation hereunder exceed the amount of the penalty, provided the Surety furnishes timely written
notice to the Bureau of Ocean Energy Management (BOEM) oil spill financial responsibility (OSRP) program of
all claims filed, judgments rendered, and payments made by the Surety under this bond.
5. This bond is effective the ______ day of _______, _______, 12:01 a.m., Eastern Standard Time
NUMBER MONTH YEAR
as stated herein and will continue in force until terminated as hereinafter provided. The Surety may at any time
terminate this bond by written notice of intent to cancel sent by certified mail to the Designated Applicant with
copies (plainly indicating the original notice was sent by certified mail) to all Responsible Parties and to the BOEM
oil spill financial responsibility program by certified mail. This surety bond will remain in force and the undersigned
will remain liable until termination on the earlier of: (1) thirty calendar days after BOEM and the Designated
Applicant receive a notification of an intent to cancel this Surety Bond; (2) BOEM receives other acceptable OSFR
evidence from the Designated Applicant; or (3) all the COFs to which this Surety Bond applies have been
permanently abandoned either in compliance with 30 CFR part 250 or equivalent state requirements. The Surety
will not be liable in connection with an incident occurring after the termination of this bond as herein provided; but
termination will not affect the liability of the Surety in connection with an incident occurring before the termination
becomes effective.
6. The undersigned agree that any suit or claim for which the Responsible Parties identified in form(s) BOEM-1017,
on file or attached, represented by the aforementioned Designated Applicant may be liable under Title I of the Act
may be brought directly against the Surety for claims up to the amount of the penalty asserted by the U.S.
government or by other claimants when a Responsible Party denies or fails to pay a claim on the basis of
insolvency or a Responsible Party has petitioned for bankruptcy under Title 11 of the U.S. Code.
7. The undersigned further agrees not to use any defense except those that would be available to a Responsible
Party for whom the Surety was provided or that the incident leading to the claim for removal costs or damages
was caused by willful misconduct of a Responsible Party covered by this Surety Bond.
