BOEM Risk Management and Financial Assurance Rule Implementation Timeline

On April 15, 2024, the Department of Interior announced a final rule from the Bureau of Ocean Energy Management (BOEM) to protect taxpayers from covering costs that should be borne by the oil and gas industry when offshore platforms require decommissioning. The action updated 20-year-old regulations. BOEM has substantially strengthened financial assurance requirements for the offshore oil and gas industry operating on the U.S. Outer Continental Shelf.

Timeline:

The effective date of the rule is June 29, 2024. It is estimated to take up to 24 months from the date that Notices to Companies are distributed for BOEM to complete the processing of financial assurance demands for execution. Notices to companies will provide instructions for submitting financial and property related information. To update your email information, contact Risk Management at [email protected] prior to August 29, 2024.

• Up to 60 Days post Effective Date: BOEM completes the sending of Notices to Companies via email, or regular mail, no later than August 29, 2024. Companies have up to 6 months to fully respond to the Notice.
• Up to 18 months post Notice to Companies: BOEM completes the review of financial information and property disputes.
• Up to 60 Days After Resolution of Financial Analysis and Property Disputes (approximately 20 months post Notice to Companies): Risk Management completes preparing property exhibits for financial assurance demands.
• Up to 24 Months Post Notice to Companies: BOEM completes processing financial assurance demands for execution.

For more information, see BOEM's website.

-- BOEM --

The Department of the Interior's Bureau of Ocean Energy Management (BOEM) manages development of U.S. Outer Continental Shelf (OCS) energy, mineral, and geological resources in an environmentally and economically responsible way.