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OCS obligations that belong to speculatively rated companies without having marketable reserves—it will require additional supplemental economic assurance when compared to the Division presently holds from this kind of businesses and may reduce the chance that these liabilities turn into the duty of The federal government. These reductions in hazard are dependent on the Original amount of hazard distinct to every OCS lease and lessee, and therefore, BOEM is not able to quantify them in mixture, as talked about during the RIA.
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later superseded by NTL-2017-N02. Based on this documented details, BSEE produced a few probabilistic estimates of decommissioning expenses for every OCS facility on the specified lease. The lowest Value estimate would've a fifty p.c likelihood of covering the website entire cost of decommissioning a facility which is Hence generally known as “P50.” The second lowest Value estimate, P70, would've a 70 % chance of covering the complete cost of decommissioning a facility.
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There are many external components that can affect the worth of reserves. BOEM's use of this metric is only to determine the chance that a lease would be acquired, because of the value of the reserves still left over the lease, by a financially wholesome enterprise that may then be liable for lease obligations. Comment: