Section 550.1011 - Bond requirements for pipeline right-of-way holders(a) When you apply for, or are the holder of, a right-of-way, you must:(1) Provide and maintain a $300,000 bond (in addition to the bond coverage required in 30 CFR part 256 and 30 CFR part 556 ) that guarantees compliance with all the terms and conditions of the rights-of-way you hold in an OCS area; and(2) Provide additional security if the Regional Director determines that a bond in excess of $300,000 is needed.(b) For the purpose of this paragraph, there are three areas: (1) The Gulf of Mexico and the area offshore the Atlantic Coast;(2) The areas offshore the Pacific Coast States of California, Oregon, Washington, and Hawaii; and(3) The area offshore the Coast of Alaska.(c) If, as the result of a default, the surety on a right-of-way grant bond makes payment to the Government of any indebtedness under a grant secured by the bond, the face amount of such bond and the surety's liability shall be reduced by the amount of such payment.(d) After a default, a new bond in the amount of $300,000 shall be posted within 6 months or such shorter period as the Regional Supervisor may direct. Failure to post a new bond shall be grounds for forfeiture of all grants covered by the defaulted bond.