U.S. Sen. Bill Cassidy, M.D. (R-LA) is among a group of senators calling upon the U.S. Department of the Interior (DOI) to extend the public comment period for the Outer Continental Shelf (OCS) financial assurance proposal.
The senators said the rule disproportionately hurts small businesses which produce over one-third of energy developed in the Gulf of Mexico. Further, they said the Biden DOI has acknowledged that the rule will deter new exploration, development, and production offshore.
Given these concerns, the senators argue that extending the public comment period would allow for a more detailed and robust public record.
“As Members of Congress concerned about our domestic energy supply and production, in addition to the well-being of small businesses, we respectfully request you extend the comment period deadline for the Notice of Proposed Rulemaking titled Risk Management and Financial Assurance for OCS Lease and Grant Obligations (the proposed rule) from 60 to 120 days,” wrote the senators.
Along with Cassidy, the letter was penned by Sens. Joe Manchin (D-WV), Ted Cruz (R-TX), and John Kennedy (R-LA).
“The proposed rule would make changes to the financial assurance regime to secure decommissioning obligations for the offshore oil and gas industry and would impose additional bonding requirements on small businesses. These small businesses, which are disproportionately impacted by the proposed rule, produce 35% of the oil and gas from the Gulf of Mexico, contribute billions of dollars to the Treasury and U.S. economy, and employ thousands of men and women from across the nation,” the senators continued.
The senators added that there is no imminent need for the Bureau of Ocean Energy Management (BOEM) to finalize the proposed rule.
“BOEM should extend the public comment period to 120 days in order to allow for a detailed and robust public record on the workability and effects of the proposed rule,” they added.