The guidance currently in place are regulations found at 30 CFR Parts 550 and 556. These regulations are more than 20 years old, dating back to BOEM’s predecessor agency, the Minerals Management Service. Industry changes have since outgrown the regulatory framework. BOEM is proposing to update the regulations to address the outdated and insufficient approach to supplemental bonding that doesn’t reflect aging OCS infrastructure; transfer of near end-of-life properties from large companies to smaller, less experienced companies; and complex financial security arrangements between and within companies.
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 a 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. Upon completion of this review, BOEM determined that a notice-and-comment rulemaking is necessary.
- General Financial Assurance - NTL No. 2015-N04 (08/17/2015)
- BOEM Withdraws Sole Liability Orders - Further Review of Complex Financial Assurance Issues Warranted (02/17/2017)
- BOEM Prioritizes Implementation of Risk Management and Financial Assurance Program – Provides Additional Time and Welcomes Stakeholder Engagement (01/06/2017)