# 30 CFR § 550.184: What is the amount of compensation for lease cancellation?

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-30-550.184

## Section

- **Citation:** 30 CFR § 550.184
- **Heading:** What is the amount of compensation for lease cancellation?
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 30—Mineral Resources > CHAPTER V—BUREAU OF OCEAN ENERGY MANAGEMENT, DEPARTMENT OF THE INTERIOR > SUBCHAPTER B—OFFSHORE > PART 550—OIL AND GAS AND SULFUR OPERATIONS IN THE OUTER CONTINENTAL SHELF > Subpart A—General > Primary Lease Requirements, Lease Term Extensions, and Lease Cancellations

## Text

When the Secretary cancels a lease under §§ 550.181, 550.182 or 550.183 of this subpart, you are entitled to receive compensation under 43 U.S.C. 1334(a)(2)(C). You must show the Director that the amount of compensation claimed is the lesser of paragraph (a) or (b) of this section:
(a) The fair value of the cancelled rights as of the date of cancellation, taking into account both:
(1) Anticipated revenues from the lease; and
(2) Costs reasonably anticipated on the lease, including:
(i) Costs of compliance with all applicable regulations and operating orders; and
(ii) Liability for cleanup costs or damages, or both, in the case of an oil spill.
(b) The excess, if any, over your revenues from the lease (plus interest thereon from the date of receipt to date of reimbursement) of:
(1) All consideration paid for the lease (plus interest from the date of payment to the date of reimbursement); and
(2) All your direct expenditures (plus interest from the date of payment to the date of reimbursement):
(i) After the issue date of the lease; and
(ii) For exploration or development, or both.
(c) Compensation for leases issued before September 18, 1978, will be equal to the amount specified in paragraph (a) of this section.

## Nearby sections

- [30 CFR § 550.101 § 550.101 Authority and applicability.](https://www.frixlaw.com/law-library/statutes/ecfr-30-550.101.md)
- [30 CFR § 550.102 § 550.102 What does this part do?](https://www.frixlaw.com/law-library/statutes/ecfr-30-550.102.md)
- [30 CFR § 550.103 § 550.103 Where can I find more information about the requirements in this part?](https://www.frixlaw.com/law-library/statutes/ecfr-30-550.103.md)
- [30 CFR § 550.104 § 550.104 How may I appeal a decision made under BOEM regulations?](https://www.frixlaw.com/law-library/statutes/ecfr-30-550.104.md)
- [30 CFR § 550.105 § 550.105 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-30-550.105.md)
- [30 CFR § 550.115 § 550.115 How do I determine well producibility?](https://www.frixlaw.com/law-library/statutes/ecfr-30-550.115.md)
- [30 CFR § 550.116 § 550.116 How do I determine producibility if my well is in the Gulf of America?](https://www.frixlaw.com/law-library/statutes/ecfr-30-550.116.md)
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- [30 CFR § 550.119 § 550.119 Will BOEM approve subsurface gas storage?](https://www.frixlaw.com/law-library/statutes/ecfr-30-550.119.md)
- [30 CFR § 550.120 § 550.120 What standards will BOEM use to regulate leases, rights-of-use and easement, and rights-of-way?](https://www.frixlaw.com/law-library/statutes/ecfr-30-550.120.md)
- [30 CFR § 550.121 § 550.121 What must I do to protect health, safety, property, and the environment?](https://www.frixlaw.com/law-library/statutes/ecfr-30-550.121.md)
- [30 CFR § 550.122 § 550.122 What effect does subsurface storage have on the lease term?](https://www.frixlaw.com/law-library/statutes/ecfr-30-550.122.md)
- [30 CFR § 550.123 § 550.123 Will BOEM allow gas storage on unleased lands?](https://www.frixlaw.com/law-library/statutes/ecfr-30-550.123.md)
- [30 CFR § 550.125 § 550.125 Service fees.](https://www.frixlaw.com/law-library/statutes/ecfr-30-550.125.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-30-550.184. Check the current official text before relying on it. Not legal advice.