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A summary of all remarks acquired concerning transfers and BOEM's corresponding responses concerning revisions to transfers can be found in area six.2 with the Response to General public Opinions.
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A single commenter expressed concern which the proposed rule specifies that an attractiveness bond will “mechanically” convert to a economical assurance obligation need to the lease operator lose its attraction and noted that bonds usually do not run During this method. If finalized, the commenter asserted which the enchantment bond must give a selected variety of times for the lease operator to put up its financial assurance obligation to allow the surety to underwrite the operator at some time the bond is set to generally be justified.
RWE in the united kingdom Press and information DBS offshore wind farms just take seabed site investigations to the subsequent stage
Considering the fact that 2009, in excess of thirty company bankruptcies have transpired involving offshore oil and gas lessees that didn't have ample economical assurance to protect their decommissioning liabilities. These bankruptcies have highlighted a weakness in BOEM's recent supplemental monetary assurance system. BOEM's existing program has, from time to time, been not able to forecast fiscal distress of such lessees and grantees that have not Earlier offered supplemental economic assurance and, Subsequently, BOEM hasn't experienced enough the perfect time to require and get supplemental fiscal assurance just before a declaration of bankruptcy.
BOEM acknowledges the commenters' tips the Division really should need financial assurance from all co-lessees that do not keep an investment decision quality credit score ranking for his or her respective Doing work pursuits but concludes that it is impractical To judge co-lessees and operating legal rights homeowners due to the fact Each individual co-lessee is liable for the whole obligation instead of their proportional share. DOI is finalizing, as proposed in 30 CFR 556.
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Conversely, many commenters asserted which the P70 value wasn't adequately conservative to guard other events and the general public in the function of default.
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BOEM may be the company inside DOI accountable for controlling improvement with the country's offshore assets within an environmentally and economically dependable way. BOEM will have to stability OCS progress with security of both of those the taxpayer as well as the environment and concludes this rule achieves an appropriate stability of aims. BOEM will not believe necessitating all entities to provide supplemental money assurance may be justified by the opportunity threat into the taxpayer, since financially robust entities are extremely not likely to file for individual bankruptcy and therefore are really most likely to have the ability to go over their decommissioning obligations. In addition, necessitating Those people entities with little probability of default here to provide supplemental money assurance would reduce funds available for other money expenditures.
Omitting the existence of predecessor lessees from your Investigation of irrespective of whether to waive the requirement of supplemental monetary assurance for the current lessee—the technique staying finalized in this article—addresses several related troubles. It makes sure that The existing lessees possess the money capacity to fulfill their decommissioning obligations.
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