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Multiple commenters asserted the proposal would bring about considerable hardship to compact companies that didn't meet this criterion and as a result would need to provide supplemental economic assurance. Commenters argued that a requirement to deliver supplemental fiscal assurance would increase the pitfalls of defaulting, not investing in maintenance of current operations, shedding staff, delaying general performance of latest decommissioning obligations, and diverting money cash required for long run OCS Power growth. Response:
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Some commenters asserted which the P70 values, and in some cases even the P50 values, exceed their internal estimates for his or her decommissioning costs and that BOEM ought to allow the use of business-supplied estimates.
The Division is finalizing the proposed amendment to § 556.902(a)(3), which is able to eliminate the need for a 3rd-party guarantee to make certain compliance While using the obligations of all lessees, operating legal rights proprietors, and operators to the lease, and will allow, as agreed to by BOEM, a ensure limited to a particular total or to one or more unique lease obligations. This change, to exchange a requirement to cover all expenses, functions, and obligations with authorization to limit any of these, A part of which BOEM is including in reaction to public reviews, will allow a guarantor to limit its guarantee to a particular volume of the total economic assurance need. By permitting a third-social gathering guarantor to guarantee only the obligations it needs to cover, BOEM presents business with the flexibleness to use the assurance to satisfy supplemental economic assurance necessities without having forcing the guarantor to deal with the threats connected with all get-togethers around the lease or grant or operations where the bash they need to ensure has no fascination and around which the guarantor could possibly have constrained impact.
Although commenters supplied a conceptual argument to keep the report of compliance criterion, they furnished no new knowledge to propose a correlation involving monetary strength of an organization and its document of compliance. As discussed in the preamble towards the proposed rule at 88 FR 42142, BOEM examined the amount of incidents of non-compliance (INCs) issued by BSEE, their severity, and the relationship between INCs and fiscal health and fitness/toughness of firms and found that the information wasn't a trustworthy indicator of financial strength. The data show that the volume of incidents is correlated with the quantity of constructions a lessee has to the OCS, rather than always for the economic wellness of the lessee. In addition, BOEM's economical assurance program isn't in and of alone built to advertise basic safety or compliance (you'll find other Division regulations addressing these issues), but to guarantee that a lessee can fiscally carry a noncompliant lease into compliance.
“We’re almost certainly talking about months before last conclusions,” pending even more information and facts from technical reports and details from NBI’s international partners, Lohi reported.
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Commenters proposed that BOEM really should be steady and intentional in its use of “economical assurance,” “stability,” and “bond” inside the final rule.