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BOEM acknowledges the commenters' issues the P70 estimates could be larger than the actual cost of decommissioning for particular platforms. Generally speaking, it may be more expensive for the government to decommission a facility than it really is for an OCS operator to do so. As a result, even though the P70 value is larger than business-derived values, it may be far more aligned with the costs that the government would incur to perform the decommissioning, which can be the applicable thing to consider when deciding the price to decommission a facility if the corporate fails to take action.
24, lifted that it “could possibly be browse as containing a desire for activities in the Area above the workout on the freedoms on the high seas” (p. 17). Without a doubt, to be a negative suitable, liberty of navigation, including for protesting, won't constitute a license to interfere While using the training of good legal rights
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Commenters proposed that BOEM explain to the reasons of part 550 that “transfer” in both of those The brand new time period and inside the definition of “Assign” ought to be described to exclude casual transfers. Samples of informal transfers were company title alterations that aren't technically a conveyance of an curiosity to a fresh entity. They offered advised regulatory text edits as follows: “Transfer implies to Express an possession fascination in an oil, gas, or sulfur lease, ROW grant or RUE grant.
The term “sulphur” is replaced throughout this element with “sulfur”, as proposed. This edit can be a complex correction and would not change any meaning or intent with the regulatory provisions.
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BOEM disagrees with the commenter's assertion that there “isn't any need for” location-broad economical assurance needs for RUEs. RUE holders have decommissioning responsibility and not only that of shelling out rentals. Spot-wide protection isn't currently being needed but getting available here as a substitute to independently bonding Every single RUE. In reaction on the recommendation that BOEM and BSEE must mandate comprehensive ownership filings for ROW and RUEs, we Take note which is outside the house the scope of this rulemaking. As talked over while in the preamble to the proposed rule at 88 FR 42144, the proposed rule at 30 CFR 550.166(a)(one) would allow for any lessee which includes currently posted spot-broad lease fiscal assurance to switch that lease surety bond to also go over any RUE(s) in the region owned by the identical lessee. A chance to use the area-huge lease financial assurance to go over the RUE foundation economical assurance could be subject matter into the necessity that the region-wide lease economic assurance might be within an quantity equal to or increased than the RUE base economic assurance prerequisite.
issuer credit history score or proxy credit score score, to assess the two guarantors and lessees as probably the most relevant evaluate of long run potential would offer consistency in evaluations and avoid overreliance on net worth. Utilizing the very same criterion also simplifies the evaluation method, making it extra successful without having compromising the risk to taxpayers. Additionally, to allow additional overall flexibility in the usage of third-get together ensures, the final rule allows a 3rd-occasion assurance to be used as supplemental financial assurance for a RUE or ROW grant in addition to a lease.