United States Government Publishing Office publisher pbl distributor dst United States National Archives and Records Administration Office of the Federal Register author aut Government Organization text government publication eng FR Regulatory Information 2014_register executive 2014-10-07 article Proposed Rules D09002ee1c7f8be4f D09002ee1c7f8becc United States Department of the Interior originator org United States Government Agency or Subagency United States Bureau of Ocean Energy Management originator org United States Government Agency or Subagency BOEM is seeking comments and information regarding its effort to update its regulations and program oversight for Outer Continental Shelf (OCS) financial assurance requirements. When BOEM's existing bonding regulations were originally drafted and first implemented, the principal risks associated with OCS leases were non-payment of rents and royalties, noncompliance with laws and regulations, and potential problems due to bankruptcy. While potentially significant, such risks were generally well-known and of limited complexity, size and scope. Due to increasingly complex business, functional, organizational and financial issues and vast differences in costs associated with expanded and varied offshore activities, BOEM has recognized the need to develop a comprehensive program to assist in identifying, prioritizing, and managing the risks associated with industry activities on the OCS. BOEM intends to design and implement a more robust and comprehensive risk management, financial assurance and loss prevention program to address these complex issues and cost differences associated with offshore operations. To do so, BOEM is seeking stakeholder comments regarding various risk management and monitoring activities pertaining to financial risks to taxpayers that may result from activities on the OCS. This notice specifically discusses the bonding and financial assurance program for BOEM's offshore oil and gas program. However, we also welcome the submission of comments on the analogous bonding and financial assurance program for BOEM's offshore renewable energy and hard minerals programs. BOEM currently requires lessees to provide performance bonds and/or one of various alternative forms of financial assurance to ensure compliance with the terms and conditions of leases, Rights-of-Use and Easements (RUEs) and Pipeline Rights-of-Way (ROWs). BOEM is seeking comments on who is best suited to mitigate risks and whether the correct parties are providing guarantees and other forms of financial assurance, as well as whether, or to what extent, the current forms of financial assurance are adequate and appropriate. Because costs and damages associated with oil spill financial responsibility (OSFR) are covered separately in the regulations, which is the subject of other proposed rulemakings on BOEM's regulatory agenda, BOEM is not soliciting comments on those regulations and their associated risk mitigation measures at this time. 79 FR 49027 https://www.govinfo.gov/app/details/FR-2014-08-19/2014-19380 2014-19380 fr19au14-29 RIN 1010-AD83 4310-MR-P Docket ID: BOEM-2013-0058 MMAA104000 https://www.govinfo.gov/app/details/FR-2014-08-19/2014-19380 https://www.govinfo.gov/content/pkg/FR-2014-08-19/html/2014-19380.htm https://www.govinfo.gov/content/pkg/FR-2014-08-19/pdf/2014-19380.pdf 5 p. 49027 49031 79 FR 49027 Title 30 Part 550 30 CFR Part 550 Title 30 Part 551 30 CFR Part 551 Title 30 Part 556 30 CFR Part 556 Title 30 Part 581 30 CFR Part 581 Title 30 Part 582 30 CFR Part 582 Title 30 Part 585 30 CFR Part 585 RIN 1010-AD83 Risk Management, Financial Assurance and Loss Prevention; Federal Register Vol. 79, Issue PRORULE 2014-19380 DEPARTMENT OF THE INTERIOR Bureau of Ocean Energy Management 2014-10-20 Docket ID: BOEM-2013-0058 MMAA104000 4310-MR-P 2014-19380 Advance notice of proposed rulemaking (ANPR).

BOEM is seeking comments and information regarding its effort to update its regulations and program oversight for Outer Continental Shelf (OCS) financial assurance requirements. When BOEM's existing bonding regulations were originally drafted and first implemented, the principal risks associated with OCS leases were non-payment of rents and royalties, noncompliance with laws and regulations, and potential problems due to bankruptcy. While potentially significant, such risks were generally well-known and of limited complexity, size and scope. Due to increasingly complex business, functional, organizational and financial issues and vast differences in costs associated with expanded and varied offshore activities, BOEM has recognized the need to develop a comprehensive program to assist in identifying, prioritizing, and managing the risks associated with industry activities on the OCS. BOEM intends to design and implement a more robust and comprehensive risk management, financial assurance and loss prevention program to address these complex issues and cost differences associated with offshore operations. To do so, BOEM is seeking stakeholder comments regarding various risk management and monitoring activities pertaining to financial risks to taxpayers that may result from activities on the OCS. This notice specifically discusses the bonding and financial assurance program for BOEM's offshore oil and gas program. However, we also welcome the submission of comments on the analogous bonding and financial assurance program for BOEM's offshore renewable energy and hard minerals programs. BOEM currently requires lessees to provide performance bonds and/or one of various alternative forms of financial assurance to ensure compliance with the terms and conditions of leases, Rights-of-Use and Easements (RUEs) and Pipeline Rights-of-Way (ROWs). BOEM is seeking comments on who is best suited to mitigate risks and whether the correct parties are providing guarantees and other forms of financial assurance, as well as whether, or to what extent, the current forms of financial assurance are adequate and appropriate. Because costs and damages associated with oil spill financial responsibility (OSFR) are covered separately in the regulations, which is the subject of other proposed rulemakings on BOEM's regulatory agenda, BOEM is not soliciting comments on those regulations and their associated risk mitigation measures at this time.

BOEM will consider all comments received by midnight of October 20, 2014. BOEM cannot commit to considering comments received after midnight on October 20, 2014. For information regarding BOEM's comprehensive risk management, financial assurance, and loss prevention program or the major topics of this ANPR, contact Terry Scholten at terry.scholten@boem.gov (504-810-2078) or Donna Dixon at Donna.Dixon@boem.gov (504-731-1527), or by mail at 1201 Elmwood Park Blvd., GM364D, New Orleans, LA 70123. For issues related to the rulemaking process or timetable, contact Peter Meffert at peter.meffert@boem.gov (703-787-1610), or by mail at 381 Elden St., Herndon, VA 20170. Risk Management, Financial Assurance and Loss Prevention , Donna.Dixon@boem.gov peter.meffert@boem.gov terry.scholten@boem.gov http://www.boem.gov/Regulations/Notices-To-Lessees/Notices-to-Lessees-and-Operators.aspx http://www.regulations.gov Vol. 79, no. 160 Office of the Federal Register, National Archives and Records Administration 2014-08-19 continuing daily deposited born digital 291 p. Table of Contents: AE 2.7: GS 4.107: AE 2.106: KF70.A2 https://www.govinfo.gov/app/details/FR-2014-08-19 P0b002ee189da3612 0097-6326 0042-1219 0364-1406 769-004-00000-9 000582072 f:fr19au14 https://www.govinfo.gov/app/details/FR-2014-08-19 https://www.govinfo.gov/content/pkg/FR-2014-08-19/pdf/FR-2014-08-19.pdf https://www.govinfo.gov/content/pkg/FR-2014-08-19/xml/FR-2014-08-19.xml fdlp 48941 49220 DGPO 2014-10-07 2024-06-02 FR-2014-08-19 machine generated eng FR FR-2014-08-19 79 160