Gas, oil industry groups seek transparency in new requirements for offshore producers
Four industry trade groups are seeking transparency about changes to financial assurances and bonding requirements for offshore oil and gas producers on Monday through Freedom of Information Act (FOIA) requests.
The National Ocean Industries Association (NOIA), the Independent Petroleum Association of America (IPAA), the Louisiana Mid-Continent Oil and Gas Association (LMOGA) and the Gulf Economic Survival Team (GEST) submitted the requests to the Bureau of Ocean Energy Management (BOEM) and the Department of Interior.
The industry trade associations, which together represent the entire offshore oil and gas industry in the Gulf of Mexico, sought to make the Department of Interior more responsive to industry concerns stemming from a notice to lessees (NTL) that changed the framework for the decommissioning liability of the offshore oil and gas industry.
The current framework of rules has protected the public for decades, and the group’s members, having made large investments based on existing rules, charge that BOEM has changed the requirements in a way that provokes risks BOEM is attempting to protect against, as the new bond regulations are burdensome, and restrict working capital that could be used for development, exploration and jobs.
The groups remain committed to cooperating with BOEM and the Department of Interior for responsible Gulf of Mexico oil development providing royalties to the state and federal governments, tax revenue and employment opportunities.
