Notice of Availability of 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-Requiring Additional Security, 46599 [2016-16846]
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Federal Register / Vol. 81, No. 137 / Monday, July 18, 2016 / Rules and Regulations
qualified student loan, a qualified
mortgage loan, or a qualified veterans’
mortgage loan.
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(j) * * *
(1) In general. Except as otherwise
provided, the provisions of this section
apply to all allocations of proceeds of
reimbursement bonds issued after June
30, 1993.
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*
(3) Nature of expenditure. Paragraph
(d)(3) of this section applies to bonds
that are sold on or after October 17,
2016.
John Dalrymple,
Deputy Commissioner for Services and
Enforcement.
Approved: June 28, 2016.
Mark J. Mazur,
Assistant Secretary of the Treasury.
[FR Doc. 2016–16558 Filed 7–15–16; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
30 CFR Parts 550 and 556
[MMAA104000]
Notice of Availability of 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—Requiring
Additional Security
Bureau of Ocean Energy
Management (BOEM), Interior.
ACTION: Notice of availability.
AGENCY:
The Bureau of Ocean Energy
Management (BOEM) is announcing the
availability of a guidance document
entitled, ‘‘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—Requiring
Additional Security’’ (NTL No. 2016–
N01).
SUMMARY:
This guidance document will
become effective on September 12,
2016.
asabaliauskas on DSK3SPTVN1PROD with RULES
DATES:
FOR FURTHER INFORMATION CONTACT:
Robert Sebastian, Office of Policy,
Regulation and Analysis at (504) 736–
2761 or email at robert.sebastian@
boem.gov.
SUPPLEMENTARY INFORMATION:
VerDate Sep<11>2014
16:07 Jul 15, 2016
Jkt 238001
I. Background
The Bureau of Ocean Energy
Management (BOEM) issues Notices to
Lessees (NTL) as guidance documents in
accordance with 30 CFR 550.103 to
clarify and provide more detail about
certain BOEM regulatory requirements,
and to outline the information to be
provided in various submittals. Under
that authority, NTL No. 2016–N01,
Requiring Additional Security, sets forth
a policy on, and an interpretation of,
regulatory requirements to provide a
clear and consistent approach for
complying with those requirements.
BOEM is issuing this NTL to clarify
the procedures and criteria that BOEM
Regional Directors use to determine if
and when additional security, pursuant
to 30 CFR 556.901(d)–(f), may be
required for Outer Continental Shelf
(OCS) leases, pipeline rights-of-way
(ROW), and rights-of-use and easement
(RUE). The guidance and clarification of
requirements described in this NTL
apply to all BOEM regions. This NTL
has also been reformatted, revised, and
updated to include correct Bureau
names, citations, and web addresses.
This NTL supersedes and replaces NTL
No. 2008–N07, Supplemental Bond
Procedures.
This NTL details several changes in
policy that are within the scope of the
existing regulations and the discretion
vested in the BOEM Regional Directors.
First, BOEM has determined that its
previously utilized formulas for
determining financial strength and
reliability are outdated and no longer
provide sufficient protection for
liabilities incurred during OCS
operations. Therefore, this NTL
describes new criteria that will be used
to determine the financial ability of a
lessee, ROW holder, or RUE holder to
carry out its obligations, and addresses
the possibility of individually tailoring
a plan to enable the lessee, ROW holder,
or RUE holder to use one or more forms
of security other than surety bonds and
pledges of Treasury securities and/or to
phase-in compliance with the additional
security requirement pursuant to such a
plan. In addition, the current selfinsurance upper limit of 50% of a
lessee’s net worth is being reduced and
will range from 0% to no more than
10% of a lessee’s ‘‘tangible net worth’’
as defined in the NTL.
Second, this NTL discontinues two
policies under NTL No. 2008–N07: (1) If
BOEM determined that one or more colessees or co-owners had sufficient
financial strength and reliability, it was
not necessary to provide additional
security; and (2) for the purpose of
determining the requirement for
PO 00000
Frm 00033
Fmt 4700
Sfmt 4700
46599
additional security, BOEM excluded
from its decommissioning liability
calculation the full amount of the
decommissioning liability on leases,
ROWs, and RUEs for which there was at
least one financially strong co-lessee or
co-owner. Thus lessees will no longer be
granted waivers from the additional
security obligations, and BOEM is
discontinuing the policy of considering
the combined strength and reliability of
co-lessees when determining a lessee’s
additional security requirements. Now,
when determining the amount of
additional security that may be
required, the Regional Director will
consider whether each lessee, ROW
holder, or RUE holder is capable of
addressing the responsibility for 100
percent of the cost of decommissioning
and other liability for every lease, ROW,
and RUE in which the lessee, ROW
holder, or RUE holder holds an
ownership interest or for which they
provide a guarantee. In order to meet all
or a portion of the additional security
required for any one lease, ROW, or
RUE, BOEM will take into account
enforceable agreements that lessees,
ROW holders or RUE holders have made
with their co-lessees or co-owners
regarding the allocation of security
obligations to such lease, ROW, or RUE.
II. Electronic Access
NTL No. 2016–N01 is available on
BOEM’s Web site at: https://
www.boem.gov/Notices-to-Lessees-andOperators/.
Authority: This document is published
pursuant to the Outer Continental Shelf
Lands Act of August 7, 1953; 43 U.S.C. 1331
et seq., as amended, and the implementing
regulations at 30 CFR 550.103.
Date: July 12, 2016.
Abigail Ross Hopper,
Director, Bureau of Ocean Energy
Management.
[FR Doc. 2016–16846 Filed 7–15–16; 8:45 am]
BILLING CODE 4310–MR–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 117
[Docket No. USCG–2016–0682]
Drawbridge Operation Regulation;
Black Warrior River, Eutaw, Alabama
Coast Guard, DHS.
Notice of deviation from
drawbridge regulations.
AGENCY:
ACTION:
The Coast Guard has issued a
temporary deviation from the operating
SUMMARY:
E:\FR\FM\18JYR1.SGM
18JYR1
]]>Agencies
[Federal Register Volume 81, Number 137 (Monday, July 18, 2016)]
[Rules and Regulations]
[Page 46599]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-16846]
=======================================================================
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DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
30 CFR Parts 550 and 556
[MMAA104000]
Notice of Availability of 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--Requiring Additional Security
AGENCY: Bureau of Ocean Energy Management (BOEM), Interior.
ACTION: Notice of availability.
-----------------------------------------------------------------------
SUMMARY: The Bureau of Ocean Energy Management (BOEM) is announcing the
availability of a guidance document entitled, ``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--Requiring Additional Security'' (NTL No. 2016-N01).
DATES: This guidance document will become effective on September 12,
2016.
FOR FURTHER INFORMATION CONTACT: Robert Sebastian, Office of Policy,
Regulation and Analysis at (504) 736-2761 or email at
robert.sebastian@boem.gov.
SUPPLEMENTARY INFORMATION:
I. Background
The Bureau of Ocean Energy Management (BOEM) issues Notices to
Lessees (NTL) as guidance documents in accordance with 30 CFR 550.103
to clarify and provide more detail about certain BOEM regulatory
requirements, and to outline the information to be provided in various
submittals. Under that authority, NTL No. 2016-N01, Requiring
Additional Security, sets forth a policy on, and an interpretation of,
regulatory requirements to provide a clear and consistent approach for
complying with those requirements.
BOEM is issuing this NTL to clarify the procedures and criteria
that BOEM Regional Directors use to determine if and when additional
security, pursuant to 30 CFR 556.901(d)-(f), may be required for Outer
Continental Shelf (OCS) leases, pipeline rights-of-way (ROW), and
rights-of-use and easement (RUE). The guidance and clarification of
requirements described in this NTL apply to all BOEM regions. This NTL
has also been reformatted, revised, and updated to include correct
Bureau names, citations, and web addresses. This NTL supersedes and
replaces NTL No. 2008-N07, Supplemental Bond Procedures.
This NTL details several changes in policy that are within the
scope of the existing regulations and the discretion vested in the BOEM
Regional Directors. First, BOEM has determined that its previously
utilized formulas for determining financial strength and reliability
are outdated and no longer provide sufficient protection for
liabilities incurred during OCS operations. Therefore, this NTL
describes new criteria that will be used to determine the financial
ability of a lessee, ROW holder, or RUE holder to carry out its
obligations, and addresses the possibility of individually tailoring a
plan to enable the lessee, ROW holder, or RUE holder to use one or more
forms of security other than surety bonds and pledges of Treasury
securities and/or to phase-in compliance with the additional security
requirement pursuant to such a plan. In addition, the current self-
insurance upper limit of 50% of a lessee's net worth is being reduced
and will range from 0% to no more than 10% of a lessee's ``tangible net
worth'' as defined in the NTL.
Second, this NTL discontinues two policies under NTL No. 2008-N07:
(1) If BOEM determined that one or more co-lessees or co-owners had
sufficient financial strength and reliability, it was not necessary to
provide additional security; and (2) for the purpose of determining the
requirement for additional security, BOEM excluded from its
decommissioning liability calculation the full amount of the
decommissioning liability on leases, ROWs, and RUEs for which there was
at least one financially strong co-lessee or co-owner. Thus lessees
will no longer be granted waivers from the additional security
obligations, and BOEM is discontinuing the policy of considering the
combined strength and reliability of co-lessees when determining a
lessee's additional security requirements. Now, when determining the
amount of additional security that may be required, the Regional
Director will consider whether each lessee, ROW holder, or RUE holder
is capable of addressing the responsibility for 100 percent of the cost
of decommissioning and other liability for every lease, ROW, and RUE in
which the lessee, ROW holder, or RUE holder holds an ownership interest
or for which they provide a guarantee. In order to meet all or a
portion of the additional security required for any one lease, ROW, or
RUE, BOEM will take into account enforceable agreements that lessees,
ROW holders or RUE holders have made with their co-lessees or co-owners
regarding the allocation of security obligations to such lease, ROW, or
RUE.
II. Electronic Access
NTL No. 2016-N01 is available on BOEM's Web site at: https://www.boem.gov/Notices-to-Lessees-and-Operators/.
Authority: This document is published pursuant to the Outer
Continental Shelf Lands Act of August 7, 1953; 43 U.S.C. 1331 et
seq., as amended, and the implementing regulations at 30 CFR
550.103.
Date: July 12, 2016.
Abigail Ross Hopper,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2016-16846 Filed 7-15-16; 8:45 am]
BILLING CODE 4310-MR-P
