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BOEM Releases Long Awaited New Financial Assurance Notice to Lessees and Operators

The Energy Law

The Bureau of Ocean Energy Management (BOEM) released its long awaited new Notice to Lessees and Operators (NTL) updating the procedures and criteria used to determine when and if additional supplemental financial assurance is required for an Outer Continental Shelf (OCS) lease, pipeline right-of-way, or right-of-use and easement.

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Department of Interior Proposes New Financial Assurance and Decommissioning Regulations

The Energy Law

The proposed regulations define “predecessor” as “a prior lessee or owner of operating rights, or a prior holder of a right-of-use and easement grant [RUE], or a pipeline right-of-way grant [ROW], that is liable for accrued obligations on that lease or grant.” 2008-N07 was subsequently replaced in 2016 by the controversial NTL No.

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Department of Interior Proposes New Financial Assurance and Decommissioning Regulations

The Energy Law

The proposed regulations define “predecessor” as “a prior lessee or owner of operating rights, or a prior holder of a right-of-use and easement grant [RUE], or a pipeline right-of-way grant [ROW], that is liable for accrued obligations on that lease or grant.” 2008-N07 was subsequently replaced in 2016 by the controversial NTL No.