BOEM issues Notice to Lessees on General Financial Assurance
The Bureau of Ocean Energy Management (BOEM) has issued a Notice to Lessees and Operators (NTL) that provides updates to bureau names and citations that changed because of the 2011 reorganization of the former Minerals Management Service. The NTL supersedes NTL 2000-G16, dated September 7, 2000. It also broadens the scope of the superseded NTL to a National NTL that covers all BOEM general financial assurance requirements.
The new NTL (General Bonding) clarifies BOEM’s requirements for general financial assurance applicable to oil and gas, and sulphur leases, pipeline rights-of-way and right-of-use-and-easement grants and a specific type of permit issued by BOEM. Such general financial assurance is necessary to ensure that operators fully comply with financial and performance obligations arising from the lease, grant, or permit and applicable regulations.
The new NTL does not address additional security (Supplemental Bonding) that the Regional Director may require pursuant to 30 CFR § 566.53(d), nor does it address the requirements for oil spill financial responsibility.
BOEM’s goal is to modernize its financial assurance regulations to match current industry standards. This NTL does not increase general bonding amounts, but simply clarifies the existing rules on this topic. For more information on financial assurance, go to www.boem.gov/Risk-Management/.