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 September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

News

USCG Cutter Diligence Returns

The crew of Coast Guard Cutter Diligence returned to Wilmington following a 45-day patrol in the Caribbean Sea. While on patrol, Diligence served as the

Southern California Port Congestion

Hapag-Lloyd informs about the congestion at the ports of Los Angeles and Long Beach that has reached a critical point. I. Several container ships are anchoring

GAC Starts Green Hull Cleaning Operations in Oman

Oman’s Ministry of Environment and Climate Affairs has granted GAC EnvironHull permission to conduct underwater hull cleaning operations using the brush-and-diver-free

Ocean Observation

Marine Renewable Energy Testing Facility in Singapore Mooted

ClassNK has launched of a feasibility study for a new marine renewable energy testing facility to be built in Singapore. The announcement was made at the 2014

Study Shows Oceans Arrived Early to Earth

Earth is known as the Blue Planet because of its oceans, which cover more than 70 percent of the planet's surface and are home to the world's greatest diversity of life.

Transneft Cites Weather, Suspends Some Liftings

Russian pipeline monopoly Transneft has suspended oil loadings through all Russian ports except for Makhachkala due to bad weather conditions, RIA news agency said on Monday.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Ship Repair Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1812 sec (6 req/sec)