The 5-Second Trick For seabet
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Other commenters asserted that BOEM ought to take into account the obligations of your predecessors inside the chain-of-title right before searching for additional fiscal assurance from present lessees, in any other case The end result is necessitating “double bonding.” Reaction:
One commenter expressed guidance for the new “Fiscal assurance” time period and mentioned that it supported “the breadth and optionality while in the proposed” definition. Response:
BOEM has estimated the annualized rise in compliance fees to lessees and allocated All those to tiny and enormous entities primarily based on their own decommissioning liabilities. While in the table down below, BOEM's Assessment more info estimates modest businesses could incur $421 million (7 percent discounting) in annualized compliance prices from alterations in the final rule. The Bureau acknowledges that there will be incremental Price burdens to most afflicted modest entities and has bundled a three-yr phased compliance approach to present versatility for entities needed to supply financial assurance underneath the new demands.
In addition, DOI also proposed to work with The prices of decommissioning resulting from BSEE's new methodology, which provides probabilistic charges employing a database of noted decommissioning charges to the OCS, to determine the quantity of supplemental money assurance demanded, as discussed in segment III.B of the preamble.
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Commenters supported the proposal to evaluate the economic health of pipeline ROW grant holders utilizing the identical criterion as was proposed for oil and fuel lessees ( i.e.,
Various commenters suggested which the Department fully remove the analysis to determine if supplemental money assurance is required. A person commenter exclusively questioned the Division to do away with this phase solely and to simply have to have all OCS leaseholders, no matter fiscal strength, to supply supplemental economical assurance.
On October 16, 2020, DOI issued a see of proposed rulemaking (eighty five FR 65904) to revise specific BSEE guidelines regarding decommissioning orders along with the Division's financial assurance polices which might be administered by BOEM. Inside the joint proposed rule, the Department proposed to regulate the supplemental monetary assurance conditions to replicate the danger mitigation currently furnished by the joint and several legal responsibility of monetarily steady co-lessees and predecessor lessees. The Division's rules hold predecessors chargeable for some or most of the decommissioning each time a present lessee is unable to accomplish its obligations.