The US Bureau of Ocean Energy Management announced that it will withdraw sole liability orders it issued to US Outer Continental Shelf oil and gas lease and grant holders in December to give the new administration time to review the complex financial assurance program.
It said any implementation issues associated with those orders will be discussed as part of an ongoing, 6-month interactive process BOEM has initiated to gather input on other components of the Notice to Lessees 2016-N01 at the beginning of 2017 (OGJ Online, Jan. 9, 2017).
It may reissue sole liability orders before the review concludes if it determines there is a substantial risk an interest holder will not satisfy decommissioning liabilities, BOEM said.
“While this administration reaffirms the program’s goal that the taxpayer should never have to shoulder any liability for decommissioning existing or future facilities on the OCS, and places a high priority on ensuring an effective financial assurance program is in place, it also acknowledges that financial assurance is a complex issue and welcomes continued industry engagement on this important issue,” BOEM said.
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