understood sale value minus uplift fees) without factoring in decommissioning. BOEM demands lessees to deliver supplemental fiscal assurance towards undiscounted BSEE decommissioning estimates to safeguard from fiscal default activities which will happen prior to scheduled conclusion of lifestyle and the complete accounting recognition from the asset retirement obligation, as a result BOEM concludes that using a discounted asset retirement obligation insufficiently protects the taxpayer.

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No comments were been given exclusively over the proposed amendment to rename the lease-precise abandonment accounts in thirty CFR 556.904 as “Decommissioning Accounts” or maybe the proposed amendment to eliminate the requirement to pledge Treasury securities to fund the account ahead of the money equal the maximum quantity insurable via the FDIC/FSLIC.

BOEM agrees Using the commenters' assertion that the initial foundation bond volume was firm a few years ago and acknowledges this worth should be reevaluated. Mainly because BOEM did not propose a completely new price within the NPRM and, consequently, simply cannot revise it in the ultimate rule, BOEM strategies To guage the specific values of The bottom supplemental monetary assurance for RUEs, ROWs, and leases inside a future rulemaking.

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Many commenters typically supported the streamlining in the evaluation conditions, notably the usage of credit rating ratings as a far more ideal criterion than monetary capacity, projected economical energy, and enterprise balance. Reaction:

A commenter requested that the Division rethink enabling oil and gas operators to decommission pipelines in place and will be sure that BSEE's decommissioning prices adequately meet up with the expense of taking away all pipeline with the seafloor. Response:

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Just one commenter prompt that DOI modify its regulations to allow guarantors to read more limit their ensures to precise obligations. They asserted this modification is according to the proposed rule and would relieve pressure on the security industry by eliminating any added and unstated obligations from assures that aren't included in a financial assurance need purchase. Response:

Although the relevance of this resolution is limited. It focuses exclusively on the safety of navigation and of life at sea, including property and the marine ecosystem.