(GAO-24-106229) that offered four recommendations to DOI to strengthen BSEE's and BOEM's decommissioning oversight and enforcement. Advice 3 exclusively stated the “Secretary of the inside need to ensure the BOEM Director completes prepared actions to further produce, finalize, and fully apply variations to money assurance laws and techniques that lower economic pitfalls, such as by (1) demanding greater amounts of supplemental bonding, and (2) addressing other identified weaknesses.” The actions BOEM described during the proposed rule and finalized here will, as being a realistic subject, address this GAO advice. Given that 2009, more than thirty company bankruptcies have happened involving offshore oil and gas lessees with decommissioning liabilities that were not covered by fiscal assurance. The fact that bankruptcies have included decommissioning liabilities devoid of enough supplemental fiscal assurance demonstrates that the waiver requirements in NTL No.
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BSEE is responsible for delivering BOEM (and the general public) believed fees to execute decommissioning. Given that BOEM conducts the corporate economic risk analysis to determine the suitable monetary assurance quantity demanded, BSEE gives BOEM A variety of estimates connected to analyses of data gathered underneath the authority discovered at thirty CFR 250.
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Other commenters asserted that BOEM should think about the obligations on the predecessors from the chain-of-title right before in search of further monetary assurance from latest lessees, usually The end result is demanding “double bonding.” Reaction:
Commenters expressed fears with BOEM's click here proposed definition of “You” and asserted that BOEM was imposing around the regulated Group the obligation to determine which folks lined by the definition are matter to the specific regulatory prerequisites of each section.
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BOEM disagrees Using the commenter's assertion that the Division mustn't have to have supplemental bonding for ROW pipelines which have been servicing and connected with significant price leases.
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Commenters supported the proposal to evaluate the money overall health of pipeline ROW grant holders using the similar criterion as was proposed for oil and gas lessees ( i.e.,
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BOEM acknowledges the commenters' support and agrees Along with the commenters' assertion the intent of the proposed rule was to permit credit scores from Fitch Scores. The Division has included Fitch Rankings and its subsidiaries in the final rule in thirty CFR 556.one zero five. Remark: