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The Office proposed in 30 CFR 556.905(a) To judge a potential guarantor utilizing the identical credit rating or proxy credit score rating criterion as was proposed for lessees. The worth of proved oil and fuel reserves of an associated lease would not be thought of due to the fact that benefit is really a attribute with the lease belonging for the certain lessee and never an asset belonging on the guarantor, and since liquid property are necessary to finance compliance or decommissioning.
BOEM acknowledges the commenters' considerations which the P70 estimates could be greater than the particular price of decommissioning for precise platforms. In general, it can be costlier for the government to decommission a facility than it is for an OCS operator to take action. For that reason, even though the P70 benefit is bigger than corporation-derived values, it could be extra aligned with The prices that the government would incur to perform the decommissioning, and that is the pertinent consideration when pinpointing the expense to decommission a facility if the business fails to take action.
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