BOEM Extends Review Timeline for Notice to Lessees No. 2016-N01

06-22-2017

On May 1, 2017, Secretary’s Order 3350 directed BOEM to promptly complete a review of Notice to Lessees (NTL) No. 2016-N01, “Notice to Lessees and Operators of Federal Oil and Gas, and Sulfur Leases, and Holders of Pipeline Right-of-Way and Right-of Use and Easement Grants in the Outer Continental Shelf” (September 12, 2016), and provide our recommendation on whether to implement this NTL to the Assistant Secretary – Land and Minerals Management (ASLM), Deputy Secretary, and the Counselor to the Secretary for Energy Policy.

BOEM is in the final stages of our review, and has obtained significant industry feedback. We have determined that more time is necessary to work with industry and other interested parties and the NTL implementation timeline will be extended beyond June 30, except in circumstances where there is a substantial risk of nonperformance of the interest holder’s decommissioning liabilities.

BOEM will continue to gather input from all interested parties. As stated previously, our goal is to ensure industry’s continued engagement in developing and implementing a risk management program that enables industry to meet its legal obligations and protects the American taxpayers from shouldering any liability for decommissioning existing or future facilities on the OCS, while recognizing the industry’s current economic realities and concerns.

More information about No. 2016-N01 and BOEM’s Risk Management Program, go to http://www.boem.gov/Risk-Management/.