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Furthermore, the Section proposed the usage of a ratio of the value of proved reserves to decommissioning liability affiliated with All those reserves that fulfills or exceeds a worth of 3-to-1. As mentioned during the preamble into the proposed rule (88 FR 42148), BOEM thinks that a residence with a enough “reserves-to-decommissioning cost” ratio would likely be procured by another corporation if a existing lessee defaults on its obligations, therefore lowering the chance that decommissioning charges for that residence might be borne by The federal government, and Therefore minimizing the need for supplemental financial assurance.
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A person commenter expressed aid for the new “Monetary assurance” phrase and famous that it supported “the breadth and optionality while in the proposed” definition. Reaction:
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P50 and P90) and also the associated impacts. Moreover, if probabilistic estimates aren't accessible, BOEM will use the available deterministic price. BOEM obtained a wide array of comments on the use of the P70 worth which have been talked about commonly beneath.
The Department proposed to interchange the word “sulphur” Using the extra modern spelling of “sulfur” through the regulatory text where it hasn't been previously transformed.
On Oct 16, 2020, DOI issued a discover of proposed rulemaking (eighty five FR 65904) to revise selected BSEE guidelines regarding decommissioning orders and the Office's fiscal assurance laws which can be administered by BOEM. Within the joint proposed rule, the Office proposed to regulate the supplemental economic assurance criteria to replicate the danger mitigation presently provided by the joint and several other liability of fiscally steady co-lessees and predecessor lessees. The Department's polices maintain predecessors liable for some or all of the decommissioning any time a recent lessee is unable to perform its obligations.