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Using this rulemaking, the Office is finalizing an amendment to revise the factors used to evaluate the need for supplemental economical assurance from the existing five standards—financial capability, projected fiscal energy, business balance, reliability in Assembly obligations dependant on credit score or trade references, and history of compliance with regulations, laws, and lease phrases—to 1 of two criteria: (1) credit rating ranking and (2) the ratio of the value of proved reserves to decommissioning liability connected to those reserves. Specially, the Office is finalizing using an expenditure quality credit ranking threshold (or proxy credit score score equivalent) plus a minimum amount 3-to-1 ratio of the value of proved reserves to decommissioning liability linked to People reserves to ascertain if a lessee is required to supply supplemental economic assurance.
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A single commenter expressed assist for the new “Economic assurance” expression and pointed out that it supported “the breadth and optionality in the proposed” definition. Response:
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BOEM acknowledges the commenters' support for that proposal of P70. The Department is finalizing in thirty CFR 556.901, as proposed, the use of P70 to ascertain the monetary assurance demanded for Qualities where by The existing lessee does not have an expense quality credit score rating or maybe the ratio of the value of your proved reserves to decommissioning liabilities linked to those reserves is just not greater than or equivalent to three-to-1.
The Office proposed to exchange the word “sulphur” Along with the additional modern day spelling of “sulfur” all through the regulatory text where by it hasn't been previously adjusted.
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