Comparative analysis of financial assurance instruments for oil and gas decommissioning and mine restoration
Comparative analysis of financial assurance instruments for oil and gas decommissioning and mine restoration
This paper introduces how different bonding mechanisms for oil and gas decommissioning and mine restoration can ensure operators’ accomplishment of restoration/decommissioning liability and affect their budget. Four mechanisms presented and compared herein include surety bonds, cash collateral bonds, decommissioning and abandonment provisions, and lease-specific abandonment accounts.