La. Admin. Code tit. 43 § V-955

Current through Register Vol. 50, No. 9, September 20, 2024

Section V-955 - Financial Assurance Amount Determination [Formerly LAC 43:I.1155]

A. The boards determination of the amount of the financial assurance required shall be based on estimates of the lessees cost to meet all accrued lease obligations, including, but not limited to, decommissioning.

B. The amount of the supplemental and decommissioning financial assurance requirements, if required by the board, shall be determined on a case-by-case basis. The amount of the financial assurance shall be no less than the amount required to meet all lease obligations, including:

1. the projected amount of rent and other payments due to the state for a 12 month period commencing the date the funds become necessary;

2. any past due rent and other payments;

3. any other monetary obligations;

4. the estimated cost of facility decommissioning, as required in Subpart E of this Chapter.

C. If the lessees cumulative potential obligations or liabilities increase or decrease, the board may adjust the amount of financial assurance or supplemental financial assurance required. In no event shall the board decrease the dollar amount less than the minimums required in §953 and §954 of this Chapter. If the board proposes adjusting the amount of financial assurance required, OMR will notify the lessee of the proposed adjustment and provide the lessee an opportunity to comment.

D. Based on the information and statements provided by the lessee at the hearing, the board may modify the dollar amount required. The board may not modify the dollar amount required below the minimums required in §953 and §954 of this Subpart.

La. Admin. Code tit. 43, § V-955

Promulgated by Department of Natural Resources, Office of Mineral Resources, LR 38:140 (January 2012), repromulgated LR 411760 (9/1/2015).

AUTHORITY NOTE: Promulgated in accordance with R.S. 30:124.