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No reviews were obtained especially within the proposed Modification to rename the lease-specific abandonment accounts in thirty CFR 556.904 as “Decommissioning Accounts” or perhaps the proposed amendment to remove the prerequisite to pledge Treasury securities to fund the account ahead of the resources equal the most volume insurable because of the FDIC/FSLIC.
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The existing bonding restrictions at 30 CFR 556.901(d) present five standards which the Regional Director takes advantage of to find out no matter whether a lessee's probable inability to carry out current and upcoming decommissioning obligations warrants a need for supplemental fiscal assurance; having said that, The present bonding polices usually do not exclusively explain how the standards are weighted.
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A single commenter furnished an up-to-date Examination of stress, which include a comparison on the 3 proposed decommissioning estimate values, which was referenced by numerous commenters inside their remark submissions. The commenter's Examination asserted that the outcomes through the legal responsibility degrees “are mainly depending on Just about every firm's `portfolio' of decommissioning liabilities” and mentioned that in almost any portfolio of uncertain outcomes, some cost estimates will exceed their expected benefit, while some cost estimates more info are going to be a lot less. Appropriately, the commenter asserted, percentile values are usually not additive, as real variances from estimates would offset each other so which the P70 with the blended results in the portfolio would approach the sum of your signify.
BOEM acknowledges the commenters' assistance for that proposal of P70. The Section is finalizing in 30 CFR 556.901, as proposed, the usage of P70 to determine the fiscal assurance needed for Houses exactly where the current lessee does not have an financial investment grade credit history score or maybe the ratio of the worth from the proved reserves to decommissioning liabilities related to People reserves is just not increased than or equivalent to 3-to-one.
The Office proposed which is finalizing revisions into the economical analysis conditions that may be utilized for identifying supplemental money assurance requirements for oil, gas, and sulfur leases, RUE grants, and pipeline ROW grants. The proposed analysis methodology with the revised criteria, the public comments obtained, and DOI's ultimate amendments are talked over in the subsections under.
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