BOEM to Modernize Financial Assurance and Risk Management

By Joseph R. Fonseca
Monday, August 18, 2014
Walter Cruickshank, Ph.D., Acting Director

 

The Bureau of Ocean Energy Management (BOEM) today issued an Advanced Notice of Proposed Rulemaking (ANPR) on Risk Management, Financial Assurance, and Loss Prevention to seek public input as it considers modernizing its risk management program and bonding regulations for offshore oil and gas operations on the Outer Continental Shelf. This first step initiates a dialogue about BOEM’s existing regulations, which are approximately 20 years old and have not kept pace with offshore infrastructure developments, including deepwater operations, current industry practices, and the growing costs of decommissioning.

“We would like to work with industry and others to determine how to improve our regulatory regime to better align with the realities of aging offshore infrastructure, hazard risks, and increasing costs of decommissioning,” said BOEM acting Director Walter D. Cruickshank. “Today’s action is an important first step in initiating a dialogue on how to best enhance our risk management program to better match current practices, with the ultimate goal of ensuring that industry meets its decommissioning responsibilities and the burden of decommissioning a facility on the Outer Continental Shelf does not fall to taxpayers.”

Existing regulations require lessees on the Outer Continental Shelf to provide bonds or other alternative forms of financial assurance to cover current and future operations, such as decommissioning oil and gas infrastructure. Since the current bonding requirements were set nearly a quarter of a century ago, offshore operations have changed significantly, such as increased advancements in the scale and complexity of deepwater and subsea operations, and the costs of decommissioning have dramatically increased. In light of the infrastructure and operational changes, BOEM has recognized the need to update its requirements and develop a comprehensive program to assist in identifying, prioritizing, and managing the risks associated with industry activities on the Outer Continental Shelf.

BOEM is seeking stakeholder comments regarding various risk management and monitoring activities related to offshore energy development on the Outer Continental Shelf. The advanced notice of proposed rulemaking seeks comment on the bonding and financial assurance program for BOEM's offshore oil and gas program. The bureau is also accepting comments on the analogous bonding and financial assurance program for BOEM's offshore renewable energy and hard minerals programs. The notice also solicits comments on best practices to mitigate risks, as well as whether, or to what extent, the current forms of financial assurance are adequate and appropriate.

The Advanced Notice Proposed Rulemaking will be published in the Federal Register on Aug.19, 2014 and available for public viewing the day before. The ANPR includes a 60-day comment period which will close at midnight on Oct. 20, 2014. After the comment period closes, BOEM plans on continuing its outreach and hosting a workshop with stakeholders to have additional opportunities for discussion as it considers options for proposed regulations.

The Bureau of Ocean Energy Management (BOEM) promotes economic development, energy independence and environmental protection through responsible, science-based management of offshore conventional and renewable energy development.
 

Maritime Reporter May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Environmental

Solarworld Wants Duties on Chinese Solar Goods in U.S. Extended

German solar manufacturer SolarWorld will apply to the United States for an extension of duties on Chinese panel imports that are due to end this year, weekly Euro am Sonntag said.

Sea Urchin Haven Disturbed by Oil Spill

Stephanie Mutz makes a living plucking sea urchins from the Santa Barbara coast and selling the prickly treasure to upscale restaurants in Southern California.

Oil-coated Pelicans Being cleaned at Rehab Center

Several petroleum-stained pelicans rescued from the blackened muck of California's latest oil spill spent the day on Friday being gently, painstakingly scrubbed

News

Solarworld Wants Duties on Chinese Solar Goods in U.S. Extended

German solar manufacturer SolarWorld will apply to the United States for an extension of duties on Chinese panel imports that are due to end this year, weekly Euro am Sonntag said.

Sea Urchin Haven Disturbed by Oil Spill

Stephanie Mutz makes a living plucking sea urchins from the Santa Barbara coast and selling the prickly treasure to upscale restaurants in Southern California.

5 Tunisian Migrants Die in Shipwreck

At least five Tunisian migrants died on Saturday when their boat sailing to Italy capsized off the Tunisian coast, officials said. "A migrant boat carrying

Ocean Observation

Miller is VP - Government and Political Affairs, NOIA

The National Ocean Industries Association (NOIA) has promoted Megan Bel Miller to Vice President for Government and Political Affairs. She will lead NOIA's Congressional

India-ASEAN Naval Cooperation On

The Indian Navy's indigenous offshore patrol vessel, INS Saryu, will participate in a week-long ASEAN Regional Forum (ARF) Disaster Relief Exercise (DiREx).   According to an official statement,

Volume Up in Dutch Maritime Technology Sector

The Dutch maritime technology sector has had a good year. Turnover increased by 17%, from EUR 6.4 billion in 2013 to EUR 7.5 billion in 2014. The sector employed 31,680 FTEs, up from 29,361 in 2013.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pod Propulsion Port Authority Salvage Ship Simulators Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2022 sec (5 req/sec)