{"id":264,"date":"2022-12-20T06:18:42","date_gmt":"2022-12-20T06:18:42","guid":{"rendered":"https:\/\/dev.hierarchy.agency\/gulfenergy\/?page_id=264"},"modified":"2023-01-13T20:09:36","modified_gmt":"2023-01-13T20:09:36","slug":"financial-assurance","status":"publish","type":"page","link":"https:\/\/dev.hierarchy.agency\/gulfenergy\/financial-assurance\/","title":{"rendered":"Financial Assurance"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"264\" class=\"elementor elementor-264\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-394b2e1 elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"394b2e1\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a879914\" data-id=\"a879914\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-99bb8f7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"99bb8f7\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-1ca5141\" data-id=\"1ca5141\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-537be42 elementor-widget elementor-widget-heading\" data-id=\"537be42\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.9.1 - 14-12-2022 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\">Financial Assurance<br>Requirements For The Gulf Of Mexico.<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-80a1a41 elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"80a1a41\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ca6372d\" data-id=\"ca6372d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-ccac870 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ccac870\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-f649c5e\" data-id=\"f649c5e\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-448693a elementor-icon-list--layout-inline elementor-list-item-link-inline inpage_links elementor-widget elementor-widget-icon-list\" data-id=\"448693a\" data-element_type=\"widget\" data-widget_type=\"icon-list.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<link rel=\"stylesheet\" href=\"https:\/\/dev.hierarchy.agency\/gulfenergy\/wp-content\/plugins\/elementor\/assets\/css\/widget-icon-list.min.css\">\t\t<ul class=\"elementor-icon-list-items elementor-inline-items\">\n\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item elementor-inline-item\">\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"#frame_work\">\n\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">THE FRAMEWORK<\/span>\n\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item elementor-inline-item\">\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"#taxpayer_benefits\">\n\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">TAXPAYER BENEFITS<\/span>\n\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item elementor-inline-item\">\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"#case_studies\">\n\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">CASE STUDIES<\/span>\n\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5cedd22 double_margin elementor-widget elementor-widget-text-editor\" data-id=\"5cedd22\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.9.1 - 14-12-2022 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#818a91;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#818a91;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>The Gulf Energy Alliance (GEA) works with stakeholders on behalf of independent offshore oil and natural gas producers in the U.S. Gulf of Mexico (GOM) on the development and implementation of effective yet reasonable financial assurance requirements. The GEA remains \ufb01rmly committed to the principle that the goal for any \ufb01nancial assurance framework should be to protect the American taxpayer from exposure to any \ufb01nancial loss associated with decommissioning liabilities in the GOM.<\/p>\n<p>Joint and several liability is a bedrock principle in the GOM, and recent o\ufb00shore bankruptcies have demonstrated that this remains the best possible protection for taxpayers from o\ufb00shore decommissioning liabilities.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ab57a66 elementor-widget__width-initial elementor-widget elementor-widget-heading\" data-id=\"ab57a66\" data-element_type=\"widget\" id=\"frame_work\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How The Joint And Several Framework Works.<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f61dddc elementor-widget elementor-widget-text-editor\" data-id=\"f61dddc\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Providing multiple layers of protection for Independents and taxpayers.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-26b89fc elementor-section-content-middle elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"26b89fc\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-6c51f20\" data-id=\"6c51f20\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1452a24 elementor-widget elementor-widget-image\" data-id=\"1452a24\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.9.1 - 14-12-2022 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"315\" height=\"173\" src=\"https:\/\/dev.hierarchy.agency\/gulfenergy\/wp-content\/uploads\/2022\/12\/fa_pic1.png\" class=\"attachment-large size-large wp-image-364\" alt=\"\" srcset=\"https:\/\/dev.hierarchy.agency\/gulfenergy\/wp-content\/uploads\/2022\/12\/fa_pic1.png 315w, https:\/\/dev.hierarchy.agency\/gulfenergy\/wp-content\/uploads\/2022\/12\/fa_pic1-300x165.png 300w\" sizes=\"auto, (max-width: 315px) 100vw, 315px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-9182a1b\" data-id=\"9182a1b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3eef0bc padlist elementor-icon-list--layout-traditional elementor-list-item-link-full_width elementor-widget elementor-widget-icon-list\" data-id=\"3eef0bc\" data-element_type=\"widget\" data-widget_type=\"icon-list.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<ul class=\"elementor-icon-list-items\">\n\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-plus\"><\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Independents consistently remove structures each year<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-plus\"><\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Balance sheet restructurings provide for more capacity for abandonment liabilities<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-plus\"><\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Abandonment liabilities attach to the asset (lease) &amp; cannot be decoupled from the underlying oil and gas cash \ufb02ow<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-4087f8b elementor-section-content-middle elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4087f8b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-13e6dfc\" data-id=\"13e6dfc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-bdf2ecb elementor-widget elementor-widget-image\" data-id=\"bdf2ecb\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"315\" height=\"173\" src=\"https:\/\/dev.hierarchy.agency\/gulfenergy\/wp-content\/uploads\/2022\/12\/fa_pic2.png\" class=\"attachment-large size-large wp-image-365\" alt=\"\" srcset=\"https:\/\/dev.hierarchy.agency\/gulfenergy\/wp-content\/uploads\/2022\/12\/fa_pic2.png 315w, https:\/\/dev.hierarchy.agency\/gulfenergy\/wp-content\/uploads\/2022\/12\/fa_pic2-300x165.png 300w\" sizes=\"auto, (max-width: 315px) 100vw, 315px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-10f4608\" data-id=\"10f4608\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b628376 elementor-align-left padlist elementor-icon-list--layout-traditional elementor-list-item-link-full_width elementor-widget elementor-widget-icon-list\" data-id=\"b628376\" data-element_type=\"widget\" data-widget_type=\"icon-list.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<ul class=\"elementor-icon-list-items\">\n\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-plus\"><\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Sellers negotiated <strong>private party \ufb01nancial security<\/strong> requirements at the time of sale based on many considerations including <strong>purchase price and risk that the buyer would not ful\ufb01ll the abandonment obligation<\/strong><\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-3b48e6d elementor-section-content-middle elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3b48e6d\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-3739f52\" data-id=\"3739f52\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-eebb795 elementor-widget elementor-widget-image\" data-id=\"eebb795\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"315\" height=\"173\" src=\"https:\/\/dev.hierarchy.agency\/gulfenergy\/wp-content\/uploads\/2022\/12\/fa_pic3.png\" class=\"attachment-large size-large wp-image-366\" alt=\"\" srcset=\"https:\/\/dev.hierarchy.agency\/gulfenergy\/wp-content\/uploads\/2022\/12\/fa_pic3.png 315w, https:\/\/dev.hierarchy.agency\/gulfenergy\/wp-content\/uploads\/2022\/12\/fa_pic3-300x165.png 300w\" sizes=\"auto, (max-width: 315px) 100vw, 315px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-661e70d\" data-id=\"661e70d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-53b4da0 elementor-align-left padlist elementor-icon-list--layout-traditional elementor-list-item-link-full_width elementor-widget elementor-widget-icon-list\" data-id=\"53b4da0\" data-element_type=\"widget\" data-widget_type=\"icon-list.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<ul class=\"elementor-icon-list-items\">\n\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-plus\"><\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">OCS leases are assigned with sellers retaining continued obligations (joint & several framework)<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-plus\"><\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Sellers are (and were) well aware of this continuing obligation<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-plus\"><\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Joint & Several framework provides combined credit quality of every party in chain of title to protect<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-535caa1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"535caa1\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-3fb3736\" data-id=\"3fb3736\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cb6ea3a double_margin elementor-widget elementor-widget-text-editor\" data-id=\"cb6ea3a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>We believe that \ufb01nancial assurance requirements must address the actual risks to U.S. taxpayers beyond the robust protection afforded by the joint and several liability of sellers of offshore properties. The GEA has long maintained that additional \ufb01nancial assurance may be appropriate on sole liability properties where the current owner is the only responsible party for the property, and where there are no prior interest holders in the chain of title. Additionally, the GEA also acknowledges that there are certain high-risk, non-sole liability properties where supplemental bonding may be appropriate depending on the \ufb01nancial strength of co-owners and predecessors in title. The GEA\u2019s position is consistent with the Outer Continental Shelf Lands Act, the history of supplemental bonding regulations, and the bedrock principle of joint and several liability.<\/p>\n<p>Requiring additional supplemental bonding will unnecessarily and disproportionately burden independent offshore oil and gas companies with no corresponding bene\ufb01t for U.S. taxpayers.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e228380 elementor-widget elementor-widget-heading\" data-id=\"e228380\" data-element_type=\"widget\" id=\"taxpayer_benefits\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">PROTECTING THE TAXPAYER.<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-37c579f double_margin elementor-widget elementor-widget-text-editor\" data-id=\"37c579f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Without our Independents exploring the bounty of these properties further, Deepwater Gulf of Mexico oil production would continue to follow the plummeting trajectory that began in the mid \u201880s. Since 2010, Independents have already begun to combat this decline, resulting in $126 million in federal royalties.<\/p><p>Since these contracts began in the 1990s for mature properties to be passed to Independents, the conclusions have been mutual agreements on purchase price and \ufb01nancial security. The major oil companies having bene\ufb01ted from harvesting the Gulf of Mexico Shelf for over 70 years, and there is no reason sellers shouldn\u2019t be held to these willingly signed and agreed upon terms. If duplicative \ufb01nancial assurance becomes required, it will allow major oil companies to re-trade these deals, with the government creating additional protections outside of the original contracts. This would have zero bene\ufb01t to the U.S. taxpayer, even putting them at risk to pay for additional infrastructure to be built.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b04402e elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"b04402e\" data-element_type=\"section\" id=\"case_studies\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2687b58\" data-id=\"2687b58\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-9e1a821 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9e1a821\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-e4d150b\" data-id=\"e4d150b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-98ff7dc elementor-widget elementor-widget-heading\" data-id=\"98ff7dc\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">CASE STUDIES<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9f7a5cb elementor-widget elementor-widget-text-editor\" data-id=\"9f7a5cb\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\tCheck out how joint and several liability has already protected independents and empowered energy production in the Deepwater Gulf of Mexico.\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7c928d8 elementor-widget elementor-widget-text-editor\" data-id=\"7c928d8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h3>Fieldwood Energy<\/h3><p>In 2020, Fieldwood Energy went bankrupt. See how their decommissioning costs were distributed amongst predecessors.\u00a0<\/p><p><a class=\"btn\" href=\"#\">LEARN MORE<\/a><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cd66069 elementor-widget elementor-widget-text-editor\" data-id=\"cd66069\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h3>New Cox<\/h3><p>In 2010, Energy XXI (now Cox) obtained \ufb01elds from Exxon. After a 20+ year decline in production, this Independent brought production up.\u00a0<\/p><p><a class=\"btn\" href=\"#\">LEARN MORE<\/a><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bc8f9a6 elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"bc8f9a6\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-77e5026\" data-id=\"77e5026\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-915570b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"915570b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-bfd9beb\" data-id=\"bfd9beb\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-69b8634 elementor-widget elementor-widget-text-editor\" data-id=\"69b8634\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Legal jargon, negotiations and complicated histories aside, it is evident that the 2020 Proposed Rule is not only the best option for U.S. taxpayers, but the planet, and Gulf Energy Alliance hopes you join us in \ufb01ghting for Independents to continue the work they put into the longevity and sustainability of domestic U.S. oil production.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Financial AssuranceRequirements For The Gulf Of Mexico. THE FRAMEWORK TAXPAYER BENEFITS CASE STUDIES The Gulf Energy Alliance (GEA) works with stakeholders on behalf of independent offshore oil and natural gas producers in the U.S. Gulf of Mexico (GOM) on the development and implementation of effective yet reasonable financial assurance requirements. The GEA remains \ufb01rmly committed [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-264","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/dev.hierarchy.agency\/gulfenergy\/wp-json\/wp\/v2\/pages\/264","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dev.hierarchy.agency\/gulfenergy\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/dev.hierarchy.agency\/gulfenergy\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/dev.hierarchy.agency\/gulfenergy\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dev.hierarchy.agency\/gulfenergy\/wp-json\/wp\/v2\/comments?post=264"}],"version-history":[{"count":290,"href":"https:\/\/dev.hierarchy.agency\/gulfenergy\/wp-json\/wp\/v2\/pages\/264\/revisions"}],"predecessor-version":[{"id":603,"href":"https:\/\/dev.hierarchy.agency\/gulfenergy\/wp-json\/wp\/v2\/pages\/264\/revisions\/603"}],"wp:attachment":[{"href":"https:\/\/dev.hierarchy.agency\/gulfenergy\/wp-json\/wp\/v2\/media?parent=264"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}