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BOEM acknowledges the commenters' help and agrees that utilizing a credit rating score threshold of investment decision quality strikes the right harmony among the two DOI's and the standard Electricity sector's purpose to guard the American taxpayers from exposure to financial loss affiliated with OCS enhancement as well as burden of giving economical assurance due to low default hazard linked to corporations that retain an expenditure grade credit history rating.
Many commenters expressed opposition to DOI's proposal, asserting that any co-lessee that does not manage an expenditure grade credit history ranking (or equivalent proxy credit history score) need to be necessary to deliver supplemental economical assurance. Commenters advised that the Office demand supplemental economical assurance for their respective read more Performing interest shares from all co-lessees that do not retain an investment decision quality credit score ranking for leases that are not exempt dependant on the reserve Investigation.
Several commenters expressed problems that the preamble on the proposed rule alluded to checking of credit history rankings, even so the regulatory textual content didn't mention the checking.
Lessees are jointly and severally answerable for the lease decommissioning obligations that accrue all through their ownership, in addition to those who accrued prior to their ownership, which means that every present co-lessee is answerable for the complete obligation and BSEE may possibly pursue total general performance from any unique present lessee. See, e.g.,
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When deciding the mandatory quantity of supplemental economic assurance, BSEE Earlier presented to BOEM just one, algorithm-based mostly deterministic estimate for decommissioning expenditures of OCS amenities.
A commenter instructed which the Office mustn't demand supplemental bonding for RUEs that are servicing and affiliated with substantial value leases for the reason that some firms personal interest during the reserves connected to a RUE granted to keep up a platform operational on an expired lease for servicing output on A different lease. Response:
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