+Kaiser, Mark. J., Allen. G. Pulsipher, Center for Energy Studies, Louisiana State University, A Review and Update of Supplemental Bonding Requirements in the Gulf of Mexico (Minerals Management Service, Technology Assessment & Research study #600) (October 2008) (PDF — 1.1MB)
"The objective of the MMS bonding program is to ensure that all entities performing activities under the jurisdiction of the MMS provide or demonstrate adequate financial resources to protect the U.S. Government from incurring any financial loss. Each lease in the GOM region is reviewed to ensure the working interest owners have adequate financial coverage to provide for the performance of all lease obligations when the designated operator and/or the lessees cannot fulfill their requirements on rent, royalties, environmental damage, cleanup and restoration activities, abandonment and site clearance, and other lease obligations...
"The purpose of this report is to update the supplemental bond formula in a risk-adjusted manner to more accurately represent the cost and government exposure associated with decommissioning activities."—Executive Summary
