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realized sale price minus uplift expenditures) with no factoring in decommissioning. BOEM requires lessees to provide supplemental economical assurance against undiscounted BSEE decommissioning estimates to shield from economic default functions that will come about prior to scheduled finish of everyday living and the total accounting recognition with the asset retirement obligation, hence BOEM concludes that working with a discounted asset retirement obligation insufficiently safeguards the taxpayer.

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On June 29, 2023, the Department proposed a whole new rule in lieu of finalizing the BOEM provisions with the 2020 joint proposal. The brand new proposed rule delivered advised revisions on the polices concerning risk management and economical assurance for OCS lease and grant obligations.

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A commenter asserted that there was no have to have for just a new prerequisite for location-broad economic assurance for RUEs, as it would entirely deal with RUE rentals. They advised that this aspect should really by now be sufficiently covered less than the prevailing spot-broad financial assurance for leases furnished by lessees.

Various commenters expressed support for DOI's proposal to not call for supplemental economical assurance on leases exactly where at the least just one co-lessee meets the credit score ranking threshold. Response:

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BOEM acknowledges the commenters' concern and thought of the effects on small entities; even so, BOEM is just not concentrating on the scale of corporations. BOEM is evaluating the financial toughness of all providers if you want in order that the event of Electricity within the OCS is safe and shields both of those the taxpayer as well as more info the surroundings. The Division has integrated numerous provisions in this rulemaking to reduce the load on little entities. BOEM acknowledged within the proposed rule (88 FR 42146) that small enterprises may well not have issuer credit history scores and, to deal with this challenge, proposed to permit entities and not using a score to request the BOEM Regional Director assess a proxy credit rating score.

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We think that the enthusiasm of our supporters has played a vital role in bringing these agreements to fruition”, he extra.