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Commenters also asserted that the proposed rule disregarded joint and a number of other liability, Which by creating a procedure that does not account for that monetary energy of liable predecessors, the proposed rule insulates predecessor lessees from their liabilities and relieves them of the necessity to complete due diligence when providing their lease(s) into a subsequent lessee. Response:
With respect to monitoring credit scores, BOEM stated during the preamble into the proposed rule at 88 FR 42147 (and has repeated Within this last rulemaking) that BOEM's typical exercise is always to assessment “the fiscal standing of lessees, ROW holders, and RUE holders at the very least on an annual basis (the evaluate typically corresponding with the discharge of audited economical statements).” BOEM's money assurance software is intended to make certain non-public corporations possess the seabet ability to meet their economical and non-financial obligations. BOEM seeks to balance the financial danger to the government as well as taxpayer with the regulatory stress on lessees and grantees. BOEM did not increase additional regulatory textual content in this remaining rule to deal with this comment as it is unwanted; BOEM maintains the general apply of evaluating lessees, RUE grant-holders, and pipeline ROW grant-holders for fiscal possibility on at least an annual basis. The amended regulation would not preclude a demand for supplemental economic assurance throughout the Regional Director's regulatory authority Anytime. As reviewed inside the proposed RIA, in the 276 firms analyzed, none were rated at or higher than BBB- at enough time of bankruptcy or within a decade ahead of personal bankruptcy.
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The proposed rule didn't demand that an attraction bond “change” to a fiscal assurance obligation and BOEM is just not finalizing the rule to demand conversion. If an appellant lost its attraction, the attractiveness bond could possibly be “transformed” to economical assurance if That could be a feasible method, or even the lessee who missing the attraction would need to give Several other suitable kind of financial assurance. Neither the proposed nor ultimate rule specify a timeline for this provision of financial assurance.
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