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The purpose of this rulemaking should be to finalize amendments to handle worries concerning BOEM's financial assurance method. This rule finalizes amendments to the present provisions to better guard the taxpayer from bearing the price of facility decommissioning and also other monetary threats linked to OCS growth, including environmental remediation.
Past calendar year, NBI claimed that an Preliminary inquiry by investigators and professionals discovered a trail of about 1½ to 4 meters (5 to 13 feet) over the seabed which was viewed to bring on the point of damage during the fuel pipeline.
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Commenters also asserted which the proposed rule dismissed joint and several legal responsibility, and that by making a system that doesn't account for your economical power of liable predecessors, the proposed rule insulates predecessor lessees from their liabilities and relieves them of the necessity to execute due diligence when marketing their lease(s) to a subsequent lessee. Reaction:
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Conversely, quite a few commenters asserted that the more info P70 worth wasn't sufficiently conservative to safeguard other get-togethers and the public while in the party of default.
A commenter requested that the Section rethink allowing for oil and gas operators to decommission pipelines in place and should make certain that BSEE's decommissioning expenditures adequately fulfill the expense of eradicating all pipeline within the seafloor. Reaction:
Commenters supported the proposal to evaluate the money overall health of pipeline ROW grant holders using the identical criterion as was proposed for oil and gas lessees ( i.e.,
Quite a few commenters advised which the Department fully remove the evaluation to ascertain if supplemental financial assurance is needed. A person commenter exclusively questioned the Division to get rid of this phase solely and to simply have to have all OCS leaseholders, regardless of money strength, to offer supplemental monetary assurance.
Commenters expressed worries regarding BOEM's proposal to work with a proxy credit ranking for entities with out an issuer credit history rating.