# 30 CFR § 556.512: What bids may be disqualified? > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/ecfr-30-556.512 ## Section - **Citation:** 30 CFR § 556.512 - **Heading:** What bids may be disqualified? - **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 556—LEASING OF SULFUR OR OIL AND GAS AND FINANCIAL ASSURANCE REQUIREMENTS IN THE OUTER CONTINENTAL SHELF > Subpart E—Issuance of a Lease > Restrictions on Joint Bidding ## Text The following bids for any oil and gas lease will be disqualified and rejected in their entirety: (a) A joint bid submitted by two or more persons who are on the effective List of Restricted Joint Bidders; or (b) A joint bid submitted by two or more persons when: (1) One or more of those persons is chargeable for the prior production period with an average daily production in excess of 1.6 million barrels of crude oil, natural gas and natural gas liquids and has not filed a Statement of Production, as required by § 556.513 of this part for the applicable 6-month bidding period, or (2) Any of those persons have failed or refused to file a detailed report of production when required to do so under § 556.513, or (c) A single or joint bid submitted pursuant to an agreement (whether written or oral, formal or informal, entered into or arranged prior to or simultaneously with the submission of such single or joint bid, or prior to or simultaneously with the award of the bid upon the tract) that provides: (1) For the assignment, transfer, sale, or other conveyance of less than a 100 percent interest in the entire tract on which the bid is submitted, by a person or persons on the List of Restricted Joint Bidders, effective on the date of submission of the bid, to another person or persons on the same List of Restricted Joint Bidders; or (2) For the assignment, sale, transfer or other conveyance of less than a 100 percent interest in any fractional interest in the entire tract (which fractional interest was originally acquired by the person making the assignment, sale, transfer or other conveyance, under the provisions of the act) by a person or persons on the List of Restricted Joint Bidders, effective on the date of submission of the bid, to another person or persons on the same List of Restricted Joint Bidders; or (3) For the assignment, sale, transfer, or other conveyance of any interest in a tract by a person or persons not on the List of Restricted Joint Bidders, effective on the date of submission of the bid, to two or more persons on the same List of Restricted Joint Bidders; or (4) For any of the types of conveyances described in paragraphs (c)(1), (2), or (3) of this section where any party to the conveyance is chargeable for the prior production period with an average daily production in excess of 1.6 million barrels of crude oil, natural gas and natural gas liquids and has not filed a Statement of Production pursuant to § 556.513 for the applicable six-month bidding period. Assignments expressly required by law, regulation, lease or lease stipulation will not disqualify an otherwise qualified bid; or (d) A bid submitted by or in conjunction with a person who has filed a false, fraudulent or otherwise intentionally false or misleading detailed Report of Production. ## Nearby sections - [30 CFR § 556.500 § 556.500 Once qualified, how do I submit a bid?](https://www.frixlaw.com/law-library/statutes/ecfr-30-556.500.md) - [30 CFR § 556.501 § 556.501 What information do I need to submit with my bid?](https://www.frixlaw.com/law-library/statutes/ecfr-30-556.501.md) - [30 CFR § 556.511 § 556.511 Are there restrictions on bidding with others and do those restrictions affect my ability to bid?](https://www.frixlaw.com/law-library/statutes/ecfr-30-556.511.md) - [30 CFR § 556.512 § 556.512 What bids may be disqualified?](https://www.frixlaw.com/law-library/statutes/ecfr-30-556.512.md) - [30 CFR § 556.513 § 556.513 When must I file a statement of production?](https://www.frixlaw.com/law-library/statutes/ecfr-30-556.513.md) - [30 CFR § 556.514 § 556.514 How do I determine my production for purposes of the restricted joint bidders list?](https://www.frixlaw.com/law-library/statutes/ecfr-30-556.514.md) - [30 CFR § 556.515 § 556.515 May a person be exempted from joint bidding restrictions?](https://www.frixlaw.com/law-library/statutes/ecfr-30-556.515.md) - [30 CFR § 556.516 § 556.516 What does BOEM do with my bid?](https://www.frixlaw.com/law-library/statutes/ecfr-30-556.516.md) - [30 CFR § 556.517 § 556.517 What may I do if my high bid is rejected?](https://www.frixlaw.com/law-library/statutes/ecfr-30-556.517.md) - [30 CFR § 556.520 § 556.520 What happens if I am the successful high bidder and BOEM accepts my bid?](https://www.frixlaw.com/law-library/statutes/ecfr-30-556.520.md) - [30 CFR § 556.521 § 556.521 When is my lease effective?](https://www.frixlaw.com/law-library/statutes/ecfr-30-556.521.md) - [30 CFR § 556.522 § 556.522 What are the terms and conditions of the lease and when are they published?](https://www.frixlaw.com/law-library/statutes/ecfr-30-556.522.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-30-556.512. Check the current official text before relying on it. Not legal advice.