10/16/2020
Update Type
Proposed Rules
The Bureau of Ocean Energy Management (BOEM) and the Bureau of Safety and Environmental Enforcement (BSEE) proposed to streamline the evaluation criteria for determining whether oil, gas, and sulfur lessees, right-of-use and easement grant holders, and pipeline right-of-way grant holders may be required to provide bonds or other security above the prescribed amounts for base bonds to ensure compliance with their Outer Continental Shelf obligations; BOEM’s portion of the proposed rule also removes restrictive provisions for third-party guarantees and decommissioning accounts, and adds new criteria under which additional bonds and third-party guarantees may be cancelled.