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The objective of this closing regulatory action is to handle concerns with regards to BOEM's money assurance system. This rule finalizes amendments to the prevailing provisions to higher defend the taxpayer from bearing the expense of facility decommissioning and various monetary hazards affiliated with OCS growth, including environmental remediation.
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BOEM acknowledges the commenters' assistance and agrees that using a credit history ranking threshold of financial investment grade strikes the appropriate stability among both DOI's and the traditional Electrical power sector's goal to safeguard the American taxpayers from exposure to monetary loss affiliated with OCS advancement and the stress of delivering economic assurance because of the minimal default chance linked to firms that sustain an financial commitment quality credit rating ranking.
When commenters provided a conceptual argument to retain the record of compliance criterion, they furnished no new facts to recommend a correlation involving economic toughness of a company and its report of compliance. As talked about within the preamble to the proposed rule at 88 FR 42142, BOEM examined the amount of incidents of non-compliance (INCs) issued by BSEE, their severity, and the relationship amongst INCs and financial health/energy of companies and located that the information was not a trustworthy indicator of monetary power. The info display that the number of incidents is correlated with the quantity of structures a lessee has to the OCS, and never automatically towards the fiscal health from the lessee. Furthermore, BOEM's monetary assurance program is read more just not in and of alone built to advertise security or compliance (you will discover other Section polices addressing these matters), but to assure that a lessee can fiscally convey a noncompliant lease into compliance.
The existing bonding polices at 30 CFR 556.901(d) deliver five requirements which the Regional Director uses to find out irrespective of whether a lessee's prospective incapability to execute existing and foreseeable future decommissioning obligations warrants a demand from customers for supplemental monetary assurance; even so, The existing bonding laws tend not to specifically describe how the factors are weighted.
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A commenter asked for that the Section rethink allowing for oil and fuel operators to decommission pipelines in place and should be sure that BSEE's decommissioning fees adequately meet the expense of eliminating all pipeline within the seafloor. Response:
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