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BOEM acknowledges the commenters' assistance for your proposal To judge a possible guarantor using the exact credit score score or proxy credit score criterion as proposed for lessees, as well as the Division is finalizing this provision in 30 CFR 556.905(a) as proposed. Remark:
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On June 29, 2023, the Division proposed a whole new rule in lieu of finalizing the BOEM provisions in the 2020 joint proposal. The brand new proposed rule offered recommended revisions into the rules regarding hazard administration and economical assurance for OCS lease and grant obligations.
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Generally speaking, business commenters supported the phased technique and several commenters recommended that or not it's prolonged to 5 years to “mitigate prospective major threat to companies and to supply suitable time to the bonding industry to regulate.” Response:
Even though commenters offered a conceptual argument to keep the history of compliance criterion, they offered no new info to counsel a correlation between fiscal strength of a firm and its document of compliance. As talked about from the preamble into the proposed rule at 88 FR 42142, BOEM examined the volume of more info incidents of non-compliance (INCs) issued by BSEE, their severity, and the relationship among INCs and money health and fitness/power of businesses and found that the information wasn't a responsible indicator of financial toughness. The information clearly show that the number of incidents is correlated with the amount of buildings a lessee has around the OCS, rather than automatically towards the money well being of the lessee. Additionally, BOEM's fiscal assurance plan is not really in and of alone built to promote protection or compliance (you will find other Section rules addressing these matters), but to guarantee that a lessee can financially carry a noncompliant lease into compliance.
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On top of that, problems arising in individual bankruptcy proceedings, including the inability to offer a lot less useful assets that fall short to deliver new purchasers at auction, may result in unplugged wells and orphaned infrastructure. This could result in the American taxpayer paying out the associated fee to plug These wells and decommission that deserted infrastructure.
afterwards superseded by NTL-2017-N02. Depending on this claimed info, BSEE developed a few probabilistic estimates of decommissioning charges for each OCS facility with a presented lease. The bottom Price estimate might have a 50 p.c chance of covering the entire price of decommissioning a facility and is As a result often called “P50.” The second cheapest Price estimate, P70, would've a 70 % likelihood of masking the complete cost of decommissioning a facility.
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