(GAO-24-106229) that furnished four suggestions to DOI to fortify BSEE's and BOEM's decommissioning oversight and enforcement. Recommendation three specifically said the “Secretary of the inside ought to make sure the BOEM Director completes prepared actions to even more establish, finalize, and thoroughly implement alterations to economical assurance laws and processes that cut down financial hazards, together with by (1) necessitating bigger levels of supplemental bonding, and (2) addressing other recognised weaknesses.” The measures BOEM described during the proposed rule and finalized right here will, being a simple make a difference, tackle this GAO advice. Considering that 2009, much more than 30 corporate bankruptcies have happened involving offshore oil and gas lessees with decommissioning liabilities which were not covered by monetary assurance. The reality that bankruptcies have involved decommissioning liabilities with out ample supplemental monetary assurance demonstrates the waiver standards in NTL No.

dry trees on fixed constructions in four hundred ft of h2o), BSEE performs multivariate regression analyses to produce distributions of Price results.

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This table of contents is really a navigational tool, processed in the headings throughout the legal textual content of Federal Sign up documents. This repetition of headings to form interior navigation one-way links has no substantive legal impact. AGENCY:

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BOEM disagrees Along with the commenters' assertion that it ought to target only on sole legal responsibility properties, an technique that could not adequately shield the taxpayer. As discussed in the RIA, there are close to $14.6 billion in decommissioning liabilities connected to leases without the need of an financial commitment grade predecessor in the chain of title, of which only $460 million is linked to sole liability Homes. So, the Section is finalizing an method that holds all latest lessees to blame for providing supplemental economical assurance Except if they fulfill the waiver requirements or are Start out Printed Web page 31554 linked to an investment grade co-lessee.

Commenters advised that BOEM make clear to the functions of aspect 550 that “transfer” in both the new time period and from the definition of “Assign” should be outlined to exclude casual transfers. Examples of informal transfers ended up company name variations that are not technically a conveyance of the interest to a completely new entity. They supplied suggested regulatory text edits as follows: “Transfer means to Express an ownership curiosity in an oil, fuel, or sulfur lease, ROW grant or RUE grant.

Commenters also asserted the proposed rule ignored joint and several other legal responsibility, Which by creating a program that doesn't account for your monetary power of liable predecessors, the proposed rule insulates predecessor lessees from their liabilities and relieves them of the necessity to conduct due diligence when offering their lease(s) to the subsequent lessee. Response:

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issuer credit rating rating or proxy credit score). This tends to ensure that pipeline ROW grant-holders can display that they've the money capability to satisfy their obligations from the ROW. The Section is finalizing the usage of an investment grade credit history score or proxy credit rating ranking for pipeline ROW co-grant holders click here to find out if a grant holder must present supplemental financial assurance, consistent with the evaluation of oil and gas lessees in thirty CFR 550.

Commenters supported the proposal to require a RUE grant holder to supply monetary assurance in a certain amount, irrespective of whether the RUE serves a Point out lease or Federal OCS lease, but asserted that BOEM ought to update The bottom money assurance value because it was determined in 1993, was based on prices in reasonably shallow waters, and considerable inflation has happened Considering that the past revision. Reaction:

The Division proposed to switch the phrase “sulphur” Together with the extra present-day spelling of “sulfur” throughout the regulatory textual content where it has not been Formerly adjusted.

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