The Bureau of Ocean Energy Management (BOEM) announced on March 5, 2026 that it is reviewing market conditions of supply and demand in the crude oil and gas markets, and, as a result, is proposing to amend its existing oil and gas risk management and financial assurance regulations.
The proposal would roll back requirements from a 2024 rule that mandated oil and gas companies set aside about $6.9 billion in supplemental financial assurance, a change that is expected to save them about $484 million each year in compliance costs.
Designed to modernize how BOEM evaluates financial risks and lower the amounts companies must set aside for future decommissioning, the proposal uses updated risk metrics and data from the Bureau of Safety and Environmental Enforcement.
According to BOEM and the U.S. Interior Department, the proposal maintains strong accountability for lessees and grant holders under the Outer Continental Shelf Lands Act, but reduces excessive financial barriers that they say have slowed growth. BOEM explained that it would ensure taxpayer protections remain in place while allowing companies to invest more capital in new projects.
The proposed changes will be published in the Federal Register on March 9, 2026, followed by a 60-day public comment period.
- To access a preview of the proposed rule, which includes extensive background material and instructions on how to submit comments, click HERE.
BOEM is tasked with managing the development of U.S. Outer Continental Shelf (OCS) energy, mineral, and geological resources in an environmentally and economically responsible way. As such, BOEM is proposing to maintain certain provisions of the existing regulations and modify only those elements that, under new market conditions, merit updating.
The major proposed amendments in this rule include returning to the previous BOEM practice of considering the financial strength of jointly liable predecessor lessees, revising the credit rating threshold for determining whether oil, gas, and sulfur lessees, right-of-use and easement (RUE) grant holders, and pipeline right-of-way (ROW) grant holders on the OCS are required to provide supplemental financial assurance above the required general financial assurance amount to ensure compliance with their Outer Continental Shelf Lands Act (OCSLA) obligations, revising the decommissioning estimate used to determine the amount of supplemental financial assurance required, and revising the appeals bond provision related to the Interior Board of Land Appeals (IBLA) appeal procedures.
This proposed rule, if finalized, is expected to significantly reduce the amount of supplemental financial assurance required from oil, gas, and sulfur lessees operating on the Outer Continental Shelf.
