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BOEM acknowledges the commenters' problems the P70 estimates can be greater than the actual price of decommissioning for unique platforms. Generally speaking, it may be costlier for the government to decommission a facility than it is for an OCS operator to take action. As a result, although the P70 value is larger than company-derived values, it might be a lot more aligned with the costs that The federal government would incur to perform the decommissioning, which is the appropriate thought when pinpointing the fee to decommission a facility if the organization fails to take action.

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Other commenters opposed the proposal and asserted that third-celebration guarantors shouldn't be excused in the prerequisite that ensures protect all obligations of lessees, working legal rights entrepreneurs, and operators within the lease, but did not offer supporting reasoning for their assertions. Response:

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codifying using the BSEE probabilistic estimates of decommissioning Price for deciding the amount of supplemental financial assurance necessary,

BOEM has believed the annualized rise in compliance fees to lessees and allocated These to small and enormous entities dependent on their own decommissioning liabilities. While in the table below, BOEM's analysis estimates smaller corporations could incur $421 million (seven % discounting) in annualized compliance expenses from changes in the ultimate rule. The Bureau acknowledges that there will be incremental Price burdens to most affected compact entities and has provided a 3-12 months phased compliance method of deliver adaptability for entities necessary to offer economic assurance under the new demands.

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Commenters supported the proposal to require a RUE grant holder to offer economical assurance in a specific sum, regardless of whether the RUE serves a Condition lease or Federal OCS lease, but asserted that BOEM should really update the base economic assurance price mainly because it was determined in 1993, was according to charges in rather shallow waters, and substantial inflation has transpired For the seabet reason that past revision. Response:

BOEM disagrees Along with the commenter's assertion that there “isn't any need to have for” region-large money assurance needs for RUEs. RUE holders have decommissioning responsibility and not merely that of paying out rentals. Location-broad protection will not be currently being needed but remaining presented as an alternative to separately bonding Each and every RUE. In response to your suggestion that BOEM and BSEE should mandate finish ownership filings for ROW and RUEs, we note that may be outdoors the scope of this rulemaking. As reviewed inside the preamble to the proposed rule at 88 FR 42144, the proposed rule at thirty CFR 550.166(a)(one) would permit any lessee which includes presently posted area-huge lease financial assurance to switch that lease surety bond to also go over any RUE(s) in the area owned by a similar lessee. The chance to use the area-extensive lease monetary assurance to deal with the RUE base financial assurance could well be matter to the prerequisite that the realm-large lease economic assurance would be within an quantity equivalent to or better than the RUE foundation financial assurance prerequisite.

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