BOEM isn't going to believe the phrase “money assurance” is ever employed for a “process for furnishing protection” In this particular rulemaking and, rather, is applied to describe any of a variety of different types of securities that BOEM will settle for to guarantee general performance of obligations. As a result, BOEM thinks the phrase and involved definition is appropriate. BOEM has elected to simplify the rule by constantly using the phrase fiscal assurance instead of referring to the various forms of monetary securities.

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BOEM acknowledges the commenters' issues which the P70 estimates can be greater than the actual price of decommissioning for certain platforms. Generally, it could be dearer for the government to decommission a facility than it is actually for an OCS operator to take action. Thus, even when the P70 benefit is higher than firm-derived values, it might be more aligned with the costs that the government would incur to perform the decommissioning, which is the pertinent consideration when analyzing the price to decommission a facility if the corporation fails to take action.

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One particular commenter expressed issue the proposed rule specifies that an enchantment bond will “mechanically” transform to your fiscal assurance obligation should really the lease operator eliminate its attractiveness and pointed out that bonds will not run During this fashion. If finalized, the commenter asserted which the charm bond really should provide a specific quantity of times to the lease operator to post its financial assurance obligation to allow the surety to underwrite the operator at some time the bond is decided being justified.

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The expression “sulphur” is replaced throughout this element with “sulfur”, as proposed. This edit can be a specialized correction and does not transform any which means or intent in the regulatory provisions.

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The proposed rule did not require that an enchantment bond “transform” to your fiscal assurance obligation and BOEM just isn't finalizing the rule to need conversion. If an appellant lost its enchantment, the attractiveness bond could possibly be “converted” to monetary assurance if That may be a practical strategy, or even the lessee who lost the enchantment would have to supply Another acceptable sort of economic assurance. Neither the proposed nor last rule specify a timeline for this provision of financial assurance.

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