seabet for Dummies
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BOEM acknowledges the commenter's guidance, along with the Office is finalizing the new expression as proposed. Remark:
Within the June 29, 2023, NPRM, the Department proposed variations to the RUE economical assurance necessities to explain the monetary assurance prerequisite for RUEs serving Federal leases, which isn't explicitly addressed in the existing restrictions.
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An additional commenter noted that BOEM must eliminate the term and definition of issuer credit score ranking from aspect 550 since it just isn't Employed in the section. Response:
BOEM disagrees While using the commenters' assertion which the P70 estimate just isn't adequately conservative to protect other parties and the general public in the event of a default. The P70 value really should not be confused by using a determine symbolizing 70 percent of the cost of decommissioning of a certain facility. The statistical P-benefit depends on the standard and dimension of the information inputs, and also the uncertainty current in these expenditures. BOEM's target for its economical assurance application continues to become the safety in the American taxpayers from publicity to economical loss linked to OCS growth, while ensuring that the money assurance method does not detrimentally affect offshore investment or place American offshore exploration and manufacturing at a competitive drawback.
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Many commenters expressed assist for DOI's proposal not to demand supplemental economical assurance on leases wherever a minimum of just one co-lessee satisfies the credit score score threshold. Reaction:
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BOEM acknowledges the commenters' issue and thought of the results on tiny entities; having said that, BOEM isn't targeting the size of providers. BOEM is evaluating the financial strength of all companies as a way to ensure that the development of Strength during the OCS is Secure and shields equally the taxpayer and also the setting. The Office has integrated several provisions With this rulemaking to reduce the load on smaller entities. BOEM acknowledged in the proposed rule (88 FR 42146) that little firms may well not have issuer credit ratings and, to address this concern, proposed to permit entities without having a rating to request the BOEM Regional Director evaluate a proxy credit rating.
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BOEM acknowledges the commenters' aid and agrees Along with the commenters' assertion the intent from the proposed rule was to permit credit rating ratings from Fitch Ratings. The Section has incorporated Fitch Rankings and its subsidiaries in the final rule in thirty CFR 556.a hundred and five. Comment: