BSEE Issues Pipeline Decommissioning Costs Directive

Bureau of Safety and Environmental Enforcement (BSEE) has released final pipeline decommissioning costs regulations to reduce risks offshore.

The final “Oil and Gas and Sulphur Operations on the Outer Continental Shelf—Decommissioning Costs for Pipelines” rule will amend existing BSEE regulations to require lessees, owners of operating rights, and right-of- way holders to submit summaries of actual expenditures incurred for pipeline decommissioning activities.

BSEE said it may also require additional supporting information when necessary.

This rule enlarges the scope of the December 2015 Decommissioning Costs reporting rule to include pipelines. It does not change the requirements of the decommissioning procedures themselves. The summary of expenditures must be submitted within 120 days of each decommissioning activity specified in the rule.

Pipeline decommissioning cost summaries and supporting information, if requested, will be used by BSEE to estimate future decommissioning costs. The final rule will take effect 30 days after publication and amends the Decommissioning Costs rule issued in December 2015 requiring lessees and owners of operating rights to submit summaries of actual decommissioning expenditures incurred for certain decommissioning activities related to oil and gas and sulfur operations on the Outer Continental Shelf.

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