§1418 Diligence Requirements

Summary

Licensees and permittees must carry out the work shown in their approved exploration or recovery plans and follow their license or permit rules so that development moves forward without unnecessary delay. The Administrator will set regular, reasonable spending rules for exploration. In doing so, the Administrator will consider the size of the sea area and how much money is estimated to be needed to begin commercial recovery within the time the Administrator sets. The spending rules cannot be so high that they push out groups using cheaper technology. After a permittee begins commercial recovery, the Administrator may require them to keep recovering commercially during the permit. For good cause — such as force majeure, bad economic conditions, or other events beyond the permittee’s control — the Administrator may allow a temporary halt. Any single suspension normally may not last more than one year, unless the Administrator decides a longer pause is justified.