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Diane Publishing Books
Offshore Oil and Gas Resources: Actions Needed to Better Protect against Billions of Dollars in Federal Exposure to Decommissioning Liabilities
Frank Rusco (au)
More than two-thirds of the more than 5,000 active oil and gas leases in the Gulf of Mexico are now located in deep water. When oil and gas infrastructure is no longer in use, the Department of the Interior requires lessees to decommission it so that it does not pose safety and environmental hazards. Decommissioning can include plugging wells and removing platforms, which can cost millions of dollars. Interior requires lessees to provide bonds or other financial assurances to demonstrate that they can pay these costs; however, if lessees do not fulfill their decommissioning obligations, the federal government could be liable for these costs. This report examines Interioräó»s (1) procedures for overseeing decommissioning and estimating its costs; (2) procedures for obtaining financial assurances for these liabilities; and (3) challenges managing these liabilities. Tables and figures. This is a print on demand report.
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