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P-values) of decommissioning expenditures for every OCS facility on any given lease. These values characterize the chance of masking the entire cost of decommissioning a facility as being a percentage; as an example, P70 represents a 70 percent likelihood of covering the total price of decommissioning a facility. The Section is finalizing, as proposed, the usage of the P70 decommissioning estimate price to ascertain the level of supplemental fiscal assurance essential from the recent lessee that does not fulfill the financial waiver criteria. If probabilistic estimates are not available, then BOEM will use the accessible deterministic values. BOEM also notes that the use of the BSEE P70 value only displays the quantity of supplemental fiscal assurance Which might be required to satisfy decommissioning obligations and would not reflect the total cost of corrective motion Which may be necessary to bring a lease or grant into compliance.

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A commenter also highlighted that BSEE, in its the latest final rule arising from the Office's 2020 proposed rule, declined to keep an enchantment bond provision that may have expected the putting up of the charm bond to obtain a stay of a BSEE decommissioning order.

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BOEM believes that permitting third-get together guarantors to limit their guaranteed obligations will relieve the stress for entities needed to present supplemental supplemental money assurance, although continuing to reduce the hazard to taxpayers. DOI has added regulatory language in the ultimate rule in thirty CFR 556.905(b) exclusively making it possible for a third-social gathering to limit its cumulative obligations to a fixed dollar amount of money or to masking The prices to complete one or more certain lease obligations (without any set greenback total).

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The proposed rule did not need that an attraction bond “convert” to a economical assurance obligation and BOEM is not really finalizing the rule to involve conversion. If an appellant more info lost its enchantment, the enchantment bond can be “transformed” to money assurance if That could be a feasible strategy, or perhaps the lessee who dropped the attraction would have to offer Another appropriate variety of monetary assurance. Neither the proposed nor closing rule specify a timeline for this provision of monetary assurance.

On October 16, 2020, DOI issued a notice of proposed rulemaking (eighty five FR 65904) to revise selected BSEE guidelines concerning decommissioning orders as well as the Division's monetary assurance laws that are administered by BOEM. During the joint proposed rule, the Office proposed to adjust the supplemental monetary assurance criteria to reflect the chance mitigation presently provided by the joint and several legal responsibility of fiscally steady co-lessees and predecessor lessees. The Division's regulations keep predecessors responsible for some or the entire decommissioning each time a present lessee is unable to accomplish its obligations.

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