The U.S. Department of the Interior has announced plans to revise the Bureau of Ocean Energy Management’s 2024 Risk Management and Financial Assurance for OCS Lease and Grant Obligations Rule. The revised rule will align with the regulatory framework proposed by the Trump administration in 2020. This change aims to reduce costs and bureaucracy for American producers, freeing up funds for oil and gas activities in the Gulf of Mexico while protecting taxpayers from high-risk decommission liabilities.
The Department emphasizes its commitment to domestic energy production and reducing regulatory barriers for oil and gas producers. The previous rule from the former administration was estimated to increase financial assurance requirements by $6.9 billion in additional bonding and $665 million in additional premiums annually, impacting companies operating in the Gulf of Mexico.
“This revision will enable our nation’s energy producers to redirect their capital toward future leasing, exploration, and production all while financially protecting the American taxpayer,” stated Secretary Doug Burgum. He added that reducing bureaucracy would allow American companies to invest in strengthening energy security, benefiting Gulf states and communities.
The Bureau of Ocean Energy Management will continue requiring operators on the Outer Continental Shelf to provide financial assurance for decommissioning obligations. Under the Trump administration, the focus remained on industry stewardship rather than taxpayers, while working towards a more balanced regulatory approach.
The Department anticipates finalizing the rule in 2025 and will seek public comments on the proposal.
