Bureau of Ocean Energy Management October 9, 2014 – Federal Register Recent Federal Regulation Documents

BOEM has recognized the need to develop a comprehensive program to assist in identifying, prioritizing, and managing the risks associated with industry activities on the Outer Continental Shelf (OCS). BOEM intends to design and implement a more robust and comprehensive risk management, financial assurance and loss prevention program to address the complex issues and cost differences associated with offshore operations. As part of its overall effort to establish this program and associated changes to regulations, BOEM is seeking stakeholder comments regarding various risk management and monitoring activities pertaining to financial risks to taxpayers that may result from activities on the OCS. BOEM currently requires lessees to provide performance bonds and/or one of various alternative forms of financial assurance to ensure compliance with the terms and conditions of leases, Rights-of-Use and Easements and Pipeline Rights-of-Way. BOEM is seeking comments on who is best suited to mitigate risks and whether other forms of financial assurance should be used, as well as whether, or to what extent, the current forms of financial assurance are adequate and appropriate. BOEM has received comments to its Advance Notice of Proposed Rulemaking (ANPR) indicating that the number of issues being addressed and the complexity of the topics being considered would justify a longer comment period. Various groups have also requested that additional time be provided to review and analyze the ANPR. For these reasons, BOEM has agreed to extend the comment period by an additional 30 days. The new comment period will elapse 90 days from August 19, 2014, the date of the original of publication of the ANPR.