Added commenters asked for that BOEM incorporate a phased provision for functions that were exempt but then afterwards couldn't fulfill the exemption requirements on account of adjusted conditions Which BOEM incorporate these provisions for parties that attain OCS lease or grant interests in the initial 3 several years immediately after implementation of the final rule. Response:
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A commenter advised which the Section must not require supplemental bonding for ROW pipelines that are servicing and affiliated with substantial benefit leases mainly because some companies very own an fascination from the reserves that their ROW pipeline services. Reaction:
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) as reviewed in the next subsections. A summary of all opinions gained relating to revisions to definitions and BOEM's corresponding responses are available in section ten of your Reaction to Public Comments.
introducing new criteria less than which a bond or third-social gathering guarantee that was delivered as financial assurance could possibly be canceled, and
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In addition, DOI also proposed to work with the costs of decommissioning ensuing from BSEE's new methodology, which gives probabilistic expenditures using a databases of described decommissioning prices on the OCS, to determine the level of supplemental financial assurance demanded, as talked over in area III.B of this preamble.
Numerous commenters normally supported the streamlining with the evaluation standards, notably the use of credit score rankings as a more proper criterion than financial capacity, projected fiscal strength, and organization steadiness. Response:
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BOEM acknowledges the commenters' assist for your proposal of P70. The Department is finalizing in thirty CFR 556.901, as proposed, using P70 to find out the fiscal assurance necessary for Houses where the current lessee does not have an financial investment grade credit score or perhaps the ratio of the worth of your proved reserves to decommissioning liabilities connected with All those reserves is not really greater than or equal to 3-to-1.
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