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understood sale rate minus uplift expenditures) without factoring in decommissioning. BOEM demands lessees to supply supplemental economic assurance from undiscounted BSEE decommissioning estimates to safeguard from monetary default situations which will take place right before scheduled close of existence and the total accounting recognition from the asset retirement obligation, thus BOEM concludes that working with a reduced asset retirement obligation insufficiently guards the taxpayer.

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With regard to monitoring credit score ratings, BOEM stated during the preamble towards the proposed rule at 88 FR 42147 (and has recurring During this closing rulemaking) that BOEM's common follow would be to evaluation “the economic status of lessees, ROW holders, and RUE holders at the very least on an yearly basis (the review ordinarily corresponding with the discharge of audited economical statements).” BOEM's money assurance software is meant making sure that personal firms contain the ability to satisfy their monetary and non-monetary obligations. BOEM seeks to stability the fiscal threat to The federal government as well as taxpayer Using the regulatory stress on lessees and grantees. BOEM didn't incorporate added regulatory text Within this final rule to handle this comment since it is pointless; BOEM maintains the overall exercise of analyzing lessees, RUE grant-holders, and pipeline ROW grant-holders for money danger on at least an once-a-year basis. The amended regulation wouldn't preclude a demand from customers for supplemental economical assurance with the Regional Director's regulatory authority at any time. As reviewed while in the proposed RIA, of your 276 organizations analyzed, none were rated at or higher than BBB- at time of individual bankruptcy or within a decade just before personal bankruptcy.

Several commenters generally supported the streamlining of the analysis standards, specifically using credit rating scores as a more acceptable criterion than financial ability, projected fiscal energy, and business security. Response:

When pinpointing the required volume of supplemental economical assurance, BSEE Formerly provided to more info BOEM one, algorithm-primarily based deterministic estimate for decommissioning prices of OCS amenities.

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But the relevance of the resolution is limited. It focuses solely on the protection of navigation and of life at sea, which includes property as well as marine setting.

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