In reaction to commenters' strategies that BOEM add clarification that this option is readily available for modified circumstances or for obtaining new lease interests, BOEM thinks which the proposed textual content in thirty CFR 556.
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Some commenters asserted that the P70 values, and at times even the P50 values, exceed their inside estimates for his or her decommissioning costs and that BOEM must make it possible for the usage of corporation-furnished estimates.
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With respect to monitoring credit rating scores, BOEM mentioned from the preamble to the proposed rule at 88 FR 42147 (and it has repeated Within this ultimate rulemaking) that BOEM's typical observe is always to assessment “the fiscal standing of lessees, ROW holders, and RUE holders at the least on an yearly foundation (the click here evaluate typically corresponding with the release of audited monetary statements).” BOEM's monetary assurance software is meant making sure that personal firms hold the potential to fulfill their money and non-economical obligations. BOEM seeks to equilibrium the economical risk to The federal government as well as taxpayer While using the regulatory stress on lessees and grantees. BOEM did not add extra regulatory text in this final rule to address this remark mainly because it is unwanted; BOEM maintains the final practice of evaluating lessees, RUE grant-holders, and pipeline ROW grant-holders for financial risk on at least an once-a-year foundation. The amended regulation wouldn't preclude a desire for supplemental money assurance throughout the Regional Director's regulatory authority at any time. As mentioned inside the proposed RIA, in the 276 businesses analyzed, none were rated at or higher than BBB- at some time of individual bankruptcy or within just ten years before bankruptcy.
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BOEM acknowledges the commenters' assist for the proposal of P70. The Division is finalizing in thirty CFR 556.901, as proposed, using P70 to find out the monetary assurance necessary for Houses where by the current lessee does not have an expenditure quality credit rating score or perhaps the ratio of the worth of the proved reserves to decommissioning liabilities related to Individuals reserves is not really greater than or equal to 3-to-1.
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