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P-values) of decommissioning expenses for each OCS facility on any provided lease. These values depict the chance of covering the total cost of decommissioning a facility as being a percentage; as an example, P70 represents a 70 percent likelihood of masking the total expense of decommissioning a facility. The Division is finalizing, as proposed, the usage of the P70 decommissioning estimate price to ascertain the level of supplemental monetary assurance required from a current lessee that doesn't fulfill the fiscal waiver conditions. If probabilistic estimates are not out there, then BOEM will utilize the out there deterministic values. BOEM also notes that using the BSEE P70 worth only reflects the level of supplemental fiscal assurance Which may be required to satisfy decommissioning obligations and doesn't reflect the entire cost of corrective motion That could be required to bring a lease or grant into compliance.
During the June 29, 2023, NPRM, the Office proposed adjustments towards the RUE economic assurance demands to explain the financial assurance requirement for RUEs serving Federal leases, which isn't explicitly resolved in the existing laws.
A summary of all remarks received concerning transfers and BOEM's corresponding responses regarding revisions to transfers are available in section 6.2 with the Response to Public Opinions.
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A single commenter expressed concern the proposed rule specifies that an charm bond will “automatically” change to a financial assurance obligation need to the lease operator shed its attractiveness and observed that bonds don't work In this particular way. If finalized, the commenter asserted that the appeal bond really should offer a particular number of times for the lease operator to article its economic assurance obligation to enable the surety to underwrite the operator at time the bond is decided to get justified.
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The tribunal regarded that It could be “acceptable for a coastal Point out to act to circumvent… perilous cases that may end up in injuries to individuals and damage to tools and installations… and hold off or interruption in important operations” (para.
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Survey to aid characterise floor conditions at turbine and System destinations and inter-array cable routes, to aid style and design of foundations and array cables.
Conversely, several commenters asserted the P70 benefit wasn't adequately conservative to guard other functions and the public during the function of default.
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BOEM acknowledges the commenters' assist for your proposal of P70. The Office is finalizing in 30 CFR 556.901, as proposed, using P70 to determine the money assurance necessary for Attributes in which The existing lessee does not have an investment grade credit score or maybe the ratio of the value of your proved reserves to decommissioning liabilities related to All those reserves isn't increased than or equal to 3-to-one.
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