recognized sale price minus uplift charges) with out factoring in decommissioning. BOEM calls for lessees to provide supplemental money assurance against undiscounted BSEE decommissioning estimates to guard from financial default activities which will happen right before scheduled conclude of everyday living and the complete accounting recognition with the asset retirement obligation, as a result BOEM concludes that utilizing a reduced asset retirement obligation insufficiently protects the taxpayer.

A summary of all responses gained relating to third-get together assures and BOEM's corresponding responses concerning the provisions to evaluate 3rd-celebration guarantors can be found in portion six.one of the Reaction to Community Remarks.

A commenter advised which the Division must not have to have supplemental bonding for ROW pipelines which are servicing and associated with substantial benefit leases mainly because some businesses possess an interest from the reserves that their ROW pipeline solutions. Reaction:

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BOEM is the company in just DOI responsible for managing development of the nation's offshore resources within an environmentally and economically liable way. BOEM ought to equilibrium OCS progress with security of each the taxpayer as well as the atmosphere and concludes this rule achieves an acceptable balance of targets. BOEM would not feel necessitating all entities to offer supplemental money assurance can be justified from the potential risk to the taxpayer, because economically solid entities are hugely unlikely to file for individual bankruptcy and therefore are remarkably most likely in order to click here include their decommissioning obligations. Moreover, demanding All those entities with little probability of default to offer supplemental fiscal assurance would scale back funds readily available for other cash expenditures.

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