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The Section did not revise the proposed definition of “you” in the ultimate rule. BOEM retained “assignor or transferor” during the definition as it is suitable while in the context of some subsections across the broad scope of elements 550 and 556. The intent with the definition of “you” was always for being fully encompassing and to rely on context for its which means in almost any specific scenario.
The Department proposed to revise the factors in thirty CFR 556.901(d) utilized To guage the necessity for supplemental money assurance from lessees within the five requirements—economical potential, projected money toughness, enterprise stability, trustworthiness in Assembly obligations based on credit history rating or trade references, and record of compliance with laws, restrictions, and lease conditions—to an easier Examination of one of two requirements: (1) credit rating ranking or (two) the ratio of the value of proved reserves to decommissioning liability connected with People reserves. As talked over during the preamble towards the proposed rule at 88 FR 42142-42144, the Department proposed to remove the “small business security” along with the “report of compliance” criteria, to switch the “economical potential” and “trustworthiness” requirements with issuer credit history rating or proxy credit score ranking, and to interchange the “projected financial toughness” criterion by using a ratio of the value of proved oil and fuel reserves on the lease to your decommissioning liability related to Those people reserves.
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Some commenters asserted that the P70 values, and at times even the P50 values, exceed their inner estimates for his or her decommissioning prices Which BOEM should really permit the usage of organization-presented estimates.
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One particular commenter expressed assist for The brand new “Fiscal assurance” expression and observed that it supported “the breadth and optionality during the proposed” definition. Reaction:
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later superseded by NTL-2017-N02. According to this described info, BSEE formulated three probabilistic estimates of decommissioning expenditures for every OCS facility on a specified lease. The bottom Value estimate would have a 50 p.c chance of covering the complete expense of decommissioning a facility and it is thus called “P50.” The 2nd most affordable Price tag estimate, P70, would have a 70 p.c probability of masking the entire price of decommissioning a facility.
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