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Many commenters asserted that the proposal would bring about major hardship to tiny companies that didn't meet up with this criterion and hence would have to give supplemental monetary assurance. Commenters argued that a need to offer supplemental monetary assurance would enhance the challenges of defaulting, not purchasing routine maintenance of current operations, shedding staff, delaying performance of present-day decommissioning obligations, and diverting money resources essential for long term OCS Electricity advancement. Response:
With this rulemaking, the Division is finalizing an amendment to revise the criteria utilized To guage the necessity for supplemental money assurance from the prevailing five standards—fiscal capacity, projected monetary toughness, business enterprise steadiness, reliability in Assembly obligations determined by credit rating ranking or trade references, and record of compliance with laws, regulations, and lease phrases—to one of two criteria: (1) credit rating score and (2) the ratio of the value of proved reserves to decommissioning legal responsibility linked to People reserves. Exclusively, the Office is finalizing using an financial investment quality credit history ranking threshold (or proxy credit rating score equal) and also a least three-to-one ratio of the worth of proved reserves to decommissioning liability related to Individuals reserves to determine if a lessee is required to provide supplemental economic assurance.
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Commenters advised that BOEM clarify to the uses of part 550 that “transfer” in equally the new expression and click here during the definition of “Assign” really should be defined to exclude informal transfers. Examples of casual transfers were corporate identify alterations that aren't technically a conveyance of an fascination to a brand new entity. They offered recommended regulatory textual content edits as follows: “Transfer suggests to convey an ownership fascination within an oil, gasoline, or sulfur lease, ROW grant or RUE grant.
The phrase “sulphur” is replaced in the course of this component with “sulfur”, as proposed. This edit is really a complex correction and does not modify any indicating or intent on the regulatory provisions.
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Several commenters normally supported the streamlining of your analysis requirements, particularly the use of credit rating ratings as a far more ideal criterion than monetary ability, projected economical power, and company stability. Reaction:
A commenter asked for which the Division rethink letting oil and fuel operators to decommission pipelines in place and should make sure that BSEE's decommissioning expenses adequately fulfill the expense of removing all pipeline from the seafloor. Reaction:
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Janne Grönlund, senior vp at Gasgrid Finland, said that Balticconnector was reopened for industrial operation early Monday just after gas began flowing from Finland to Estonia. A smaller quantity of gasoline was also flowing in the opposite direction.