BOEM won't feel the expression “economic assurance” is at any time applied for a “procedure for furnishing safety” in this rulemaking and, as a substitute, is utilised to describe any of many differing types of securities that BOEM will acknowledge to ensure effectiveness of obligations. As a result, BOEM thinks the term and associated definition is appropriate. BOEM has elected to simplify the rule by regularly utilizing the time period economical assurance in lieu of referring to the varied kinds of financial securities.
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No feedback were gained specially on the proposed Modification to rename the lease-precise abandonment accounts in thirty CFR 556.904 as “Decommissioning Accounts” or perhaps the proposed Modification to eliminate the necessity to pledge Treasury securities to fund the account before the cash equal the utmost amount insurable through the FDIC/FSLIC.
A commenter also highlighted that BSEE, in its new closing rule arising with the Division's 2020 proposed rule, declined to keep an charm bond provision that may have required the submitting of the charm bond to acquire a continue to be of a BSEE decommissioning order.
That path is considered to are already because of the hefty 6-ton anchor of Newnew Polar Bear, which was afterwards retrieved from the seabed from the Finnish Navy.
A commenter asserted that there was no have to have for a new prerequisite for place-broad money assurance for RUEs, as it could solely include RUE rentals. They advised this aspect ought to previously be sufficiently lined beneath the present location-extensive monetary assurance for leases provided by lessees.
BOEM believes that enabling third-social gathering guarantors to limit their confirmed obligations will ease the load for entities needed to give additional supplemental monetary assurance, whilst continuing to lessen the possibility website to taxpayers. DOI has extra regulatory language in the final rule in thirty CFR 556.905(b) especially letting a third-get together to limit its cumulative obligations to a set greenback amount of money or to covering The prices to accomplish one or more distinct lease obligations (without set dollar volume).
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Commenters supported the proposal to demand a RUE grant holder to provide fiscal assurance in a specific volume, regardless of whether the RUE serves a Condition lease or Federal OCS lease, but asserted that BOEM ought to update The bottom economical assurance worth because it was resolute in 1993, was based on charges in relatively shallow waters, and important inflation has occurred Considering that the final revision. Reaction:
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BOEM agrees Using the commenters which the decommissioning liability shouldn't be double counted; it isn't the Bureau's intent to double count the decommissioning legal responsibility. The polices are distinct that BOEM is requesting the discounted worth of the reserves ( e.g.,