Risk management and financial assurance in the context of oil and gas exploration and development involve formulating strategies to mitigate potential risks and ensuring sufficient financial resources are available for decommissioning and liability obligations. These practices are essential for protecting both the industry and taxpayers from financial burdens associated with unforeseen events during exploration and production activities.
What’s New?
On March 5, 2026, the Department of the Interior announced a Notice of Proposed Rulemaking, to develop a new rule to replace the existing 2024 rule (see below). This rulemaking aims to modify provisions from the 2024 final rule that may hinder the development of domestic energy resources, while simultaneously protecting the American taxpayer.
The Notice of Proposed Rulemaking was published in the Federal Register on March 9, 2026, opening a 60-day public comment period that ends on May 8, 2026. BOEM welcomes comments from the public and stakeholders to inform the final rule.
2024 Rule
This new proposed rule would replace the 2024 rule found here: https://www.federalregister.gov/documents/2024/04/24/2024-08309/risk-management-and-financial-assurance-for-ocs-lease-and-grant-obligations
Additional information on the 2024 rule can be found here: https://www.federalregister.gov/documents/2023/06/29/2023-12916/risk-management-and-financial-assurance-for-ocs-lease-and-grant-obligations