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Also, the Section proposed using a ratio of the value of proved reserves to decommissioning liability connected with These reserves that fulfills or exceeds a value of 3-to-one. As mentioned inside the preamble to your proposed rule (88 FR 42148), BOEM believes that a home by using a adequate “reserves-to-decommissioning Price” ratio would likely be bought by A further corporation if a existing lessee defaults on its obligations, thereby reducing the danger that decommissioning fees for that property could well be borne by the government, and Therefore minimizing the need for supplemental monetary assurance.
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Other commenters asserted that BOEM have to consider the obligations on the predecessors in the chain-of-title ahead of seeking added economical assurance from existing lessees, if not the result is demanding “double bonding.” Response:
adding new criteria less than which a bond or 3rd-get together assure that was delivered as money assurance could possibly be canceled, and
“We’re most likely discussing months prior to ultimate conclusions,” pending further details from specialized scientific studies and facts from NBI’s international associates, Lohi explained.
without the new supplemental fiscal assurance techniques entirely in position), it could get more time to rearrange for decommissioning. Orphaned, unmaintained, or minimally taken care of facilities, which presently exist around the OCS, could lead to extra environmental harm or elevated obstacles to navigation, whilst awaiting the uncertain results of individual bankruptcy proceedings or Congressional appropriations. Also, this closing rule delivers lessees and grant holders with clarity and regulatory certainty concerning the Start off Printed Website page 31565 way during which BOEM will carry out its economic assurance system.
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issuer credit history score or proxy credit rating). This will make sure pipeline ROW grant-holders can exhibit that they've got the economic capability to meet their obligations with the ROW. The Division is finalizing using an financial commitment grade credit rating rating or proxy credit score ranking for pipeline ROW co-grant holders to ascertain if a grant holder ought to offer supplemental financial assurance, per the evaluation of oil and gas lessees in thirty click here CFR 550.
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