DOI Seeks Comments on a Proposed Rule to Streamline Evaluation Criteria for Financial Assurances for Grant Holders
On October 16, 2020, the United States Department of the Interior’s Bureau of Ocean Energy Management and Bureau of Safety and Environmental Enforcement issued a notice of proposed rulemaking to regulate risk management, financial assurance and loss prevention for various grant holders. The rule streamlines evaluation criteria for determining whether oil, gas and sulfur lessees, rights of use easements, and pipeline right of way grant holders would be subject to bonds or other financial security requirements under the Outer Continental Shelf Lands Act. The rule also removes restrictions for third-party guarantees and decommissioning accounts. Finally, the rule establishes the order in which the agencies will order predecessor lessees to perform decommissioning obligations for existing projects. Written comments on the notice are due by December 15, 2020.