30 CFR 550.181 : Mineral Resources (§ 1.1 To Parts 1291-1299) — (Parts 200-202 To Parts 591-599) — Bureau Of Ocean Energy Management, Department Of The Interior (Parts 500-519 To Parts 591-599) — Offshore (§ 550.101 To § 585.1019) — Oil And Gas And Sulphur Operations In The Outer Continental Shelf (§ 550.101 To Subparts O-S) — General (§ 550.101 To § 550.199) — Primary Lease Requirements, Lease Term Extensions, And Lease Cancellations (§ 550.181 To § 550.185) — When may the Secretary cancel my lease and when am I compensated for cancellation?

If the Secretary cancels your lease under this part or under 30 CFR part 556, you are entitled to compensation under § 550.184. Section 550.185 states conditions under which you will receive no compensation. The Secretary may cancel a lease after notice and opportunity for a hearing when:

(a) Continued activity on the lease would probably cause harm or damage to life (including fish and other aquatic life), property, any mineral deposits (in areas leased or not leased), or the marine, coastal, or human environment;

(b) The threat of harm or damage will not disappear or decrease to an acceptable extent within a reasonable period of time;

(c) The advantages of cancellation outweigh the advantages of continuing the lease in force; and

(d) A suspension has been in effect for at least 5 years or you request termination of the suspension and lease cancellation.