Several Gulf States and oil and gas trade associations have challenged a new final rule titled Risk Management and Financial Assurance for OCS Lease and Grant Obligations which requires oil and gas companies operating on the Outer Continental Shelf (OCS) that are without an investment-grade credit rating to provide supplemental financial assurance to cover the cost of potential decommissioning liabilities. Should the rule stand, it will have a significant impact on the industry as a whole and specifically smaller to midsize oil and gas companies who will be required to post such bonds.
To learn more about this development, read my recent client alert.
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