API Letter to DOI on Financial Assurance
API submitted a letter to the DOI regulatory reform docket regarding BOEM’s approach to contingent liability for decommissioning. As the Department of the Interior (DOI) revises its Bonding and Financial Assurance regulations pursuant to Executive Order 13785 and DOI Secretarial Order 3350, its main goals should be to adopt regulations and implement policies that keep people safe, protect the environment, and ensure that U.S. taxpayers are not left with any OCS decommissioning obligations. A predictable process that requires financial security from the current lease owner, based upon a fair assessment of capacity and risk, provides the financial assurance needed to protect the taxpayer, while also holding current lease owners accountable to fulfill their obligations.
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