Public Comments

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July 7, 2026

VIA ELECTRONIC SUBMISSION
Ms. Anna Atkinson
Information Collection Clearance Officer
Department of the Interior, Bureau of Ocean Energy Management
45600 Woodland Road
Sterling, Virginia 20166
Re: Agency Information Collection Activities; Proposals, Submissions, and
Approvals: Oil Spill Financial Responsibility for Offshore Facilities, Docket No.
BOEM-2026-0496
Dear Ms. Atkinson:
I.

Introduction

W&T Offshore, Inc. and W&T Energy VI, LLC (collectively “W&T”) respectfully submit these
comments to the Department of the Interior’s Bureau of Ocean Energy Management (“BOEM”)
in response to the notice revising the information collection request (“ICR”) for Oil Spill Financial
Responsibility for Offshore Facilities, OMB Control No. 1010-0106. 1 W&T is an independent oil
and gas producer with active operations on the Outer Continental Shelf (“OCS”) and submits
Forms BOEM-1019 (Insurance Certificate), BOEM-1020 (Surety Bond), and BOEM-1023
(Financial Guarantee) in the ordinary course of demonstrating oil spill financial responsibility
(“OSFR”) for its covered offshore facilities.
W&T appreciates the opportunity to participate in this comment period and offers these comments
as a respondent that completes these instruments in practice. W&T supports the proposed
revisions, which tie the applicable coverage period expressly to when an incident begins.
II.

The Revised Forms Improve the Clarity and Utility of the Collection

BOEM specifically invites comment on how it “might enhance the quality, utility, and clarity of
the information to be collected.”2 The revised forms do so in three concrete ways.
First, the forms adopt a single, occurrence-based temporal trigger. Each instrument now applies
“only in relation to each incident . . . first occurring on or after the effective date . . . and on or
before the termination date.”3 The accompanying “under no circumstances” language, which
1

Agency Information Collection Activities; Oil Spill Financial Responsibility for Offshore Facilities, 91 Fed. Reg.
27,981 (noticed May 15, 2026).
2

Id. at 27,982.

3

Proposed BOEM Form 1019 §3 (Insurance Certificate), https://www.regulations.gov/document/BOEM-2026-04960002; Proposed BOEM Form 1020 §4 (Surety Bond), https://www.regulations.gov/document/BOEM-2026-04960003; Proposed BOEM Form 1023 §5 (Financial Guarantee), https://www.regulations.gov/document/BOEM-20260496-0004.
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W&T Offshore, Inc. • 5718 Westheimer, Suite 700 • Houston, Texas 77057 • (713) 626-8525 • www.wtoffshore.com

forecloses application of a terminated or post-incident instrument to a particular incident,
eliminates a recurring dispute between applicants, OSFR providers, and claimants.
Second, the new prospective-application clauses confirm that the revisions do not affect the
“validity, applicability, or effect of any previous version(s)” of the same instrument. 4 That
clarification protects regulatory expectations and avoids disrupting in-force OSFR instruments.
Third, each form now includes an express order-of-precedence clause stating that, in the event of
any conflict or inconsistency between the Oil Pollution Act of 1990 5 (“OPA”) or its implementing
regulations, the statute and regulations prevail. 6 The clause forecloses arguments that ambiguous
form language could narrow obligations imposed by OPA itself.
III.

The Revisions Are Necessary to the Proper Functioning of BOEM’s OSFR Program

Section 1016 of OPA requires responsible parties to establish and maintain evidence of financial
responsibility. OPA in turn defines “incident” as “any occurrence or series of occurrences having
the same origin . . . resulting in the discharge or substantial threat of discharge of oil.” 7 The “first
occurring” trigger therefore matches how OPA defines an incident. The OSFR provider's
obligations turn on which instrument was in place when the incident began.
The existing forms’ silence on the temporal trigger for an incident has produced concrete
administrative problems. Coverage disputes have arisen over whether OSFR instruments apply to
incidents that first occurred before the instrument’s effective date but continued through the
coverage window.8 Because OPA defines an “incident” as a series of occurrences having the same
origin, the current versions of the forms left open for interpretation whether subsequent
occurrences within the same ongoing incident triggered coverage under successive OSFR
instruments that were then in effect. The apparent ambiguity resulted in successive OSFR
providers being drawn into coverage disputes none of them underwrote. The proposed revisions
resolve this ambiguity prospectively by adopting “first occurring” as the operative temporal
trigger, which ensures that liability attaches to a single OSFR provider at a single moment per
incident.
Without a clear temporal trigger, BOEM, applicants, and OSFR providers must adjudicate
coverage questions on a claim-by-claim basis, which frustrates BOEM’s ability to establish and
maintain a continuous record of evidence of oil spill financial responsibility. The revised forms
resolve the ambiguity at the front end and allow BOEM to administer the program on the basis of
4

Id. Proposed BOEM Form 1019 §8 (Insurance Certificate); Proposed BOEM Form 1020 §9 (Surety Bond); Proposed
BOEM Form 1023 §10 (Financial Guarantee).
5

Oil Pollution Act of 1990 § 1016, 33 U.S.C. §§ 2701-2762.

6

Proposed BOEM Form 1019 §9 (Insurance Certificate); Proposed BOEM Form 1020 §10 (Surety Bond); Proposed
BOEM Form 1023 §11 (Financial Guarantee).
7

OPA 1990 § 1001(14), 33 U.S.C. § 2701(14).

8

See United States v. HIS Syndicate 0033 @ Lloyd’s, No. 2:24-cv-02767 (E.D. La. filed Nov. 26, 2024) [hereinafter
“Taylor Energy Suit”]; see also Mem. of Law in Supp. of Underwriters’ Mot. to Dismiss (addressing the Government’s
interpretation of “incident” under OPA, first advanced in 2020 to seek coverage across multiple policy years for a
2004 Hurricane Ivan-related loss involving a Taylor Energy facility and associated wells).
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W&T Offshore, Inc. • 5718 Westheimer, Suite 700 • Houston, Texas 77057 • (713) 626-8525 • www.wtoffshore.com

plainly stated coverage parameters. This clarity restores predictability to the OSFR market and
supports continuous compliance by responsible parties operating in the OCS.
Concern about this temporal-trigger ambiguity extends beyond the regulated community. The
Louisiana Attorney General recently urged the U.S. Department of Justice to abandon the
successive-provider theory, characterizing the argument as “fundamentally contrary to well-settled
insurance law” and directly harmful to American energy production. 9
IV.

The Proposed Revisions Will Increase the Availability of OPA Coverage

W&T expects that adoption of the proposed revisions to the OSFR forms will significantly
improve the availability of OPA coverage in the London insurance market. At the time the Taylor
Energy Suit was filed, 17 major OPA insurers collectively offered more than $300 million in
capacity to a single purchaser, well above the $150 million maximum OSFR requirement. In other
words, the market had ample capacity to satisfy regulatory requirements.
Today, however, only 11 markets remain, providing approximately $125 million to $140 million
in total capacity. This is not sufficient to meet the current $150 million maximum OSFR
requirement. According to W&T’s brokers, securing the upper end of currently available capacity
would require an annual premium of approximately $4.0 million to $4.5 million. By comparison,
in 2020, W&T obtained $150 million in OPA coverage for an annual premium of approximately
$1.04 million. In recent years, W&T has purchased $70 million of OPA coverage, 10 but because
of the constrained insurance market, saw its premium increase from $799,000 to $1.222 million—
a 53% increase. W&T expects that adoption of the proposed OSFR form revisions will encourage
insurers to reenter the market, restore available capacity, and reduce premiums.
V.

Prompt Finalization Will Reduce Operator Costs and Advance Federal Energy Policy

The timing pressure for finalization of this revision is particularly acute. OPA coverage is typically
procured on an annual cycle in the late spring or early summer. The existing forms’ temporaltrigger ambiguity has forced operators to extend prior policy coverage as a stopgap to maintain
continuous regulatory compliance, and those extensions are not available indefinitely. Funds
diverted to this costlier stopgap are funds that would otherwise be deployed toward exploration,
development, and production in the OCS, directly advancing the official policy of the United States
to Unleash American Energy.11 While W&T recognizes that BOEM must satisfy the procedural
requirements of the Paperwork Reduction Act, the narrow and clarifying character of the proposed

9

Letter from Liz Murrill, La. Att'y Gen., to Pam Bondi, U.S. Att'y Gen. (Sept. 24, 2025),
https://ag.state.la.us/Files/Article/355/Documents/LettertoAttorneyGeneralPamBondi.pdf.
10

OPA coverage runs from a $35 million floor to $150 million based on a worst-case discharge. 33 U.S.C. §
2716(c)(1)(B), (C); 30 C.F.R. § 553.13. W&T’s worst-case discharge has decreased since 2020, placing it in the $70
million tier.
11

See
Exec.
Order
No.
14,154,
90
Fed.
Reg.
8,353,
8,353
(Jan.
29,
2025),
https://www.federalregister.gov/documents/2025/01/29/2025-01956/unleashing-american-energy; U.S. Dep't of the
Interior, Secretarial Order No. 3418, Unleashing American Energy (Feb. 3, 2025), https://www.doi.gov/documentlibrary/secretary-order/so-3418-unleashing-american-energy; U.S. Dep't of the Interior, Secretarial Order No. 3445,
Unleashing American Offshore Energy (Nov. 14, 2025), https://www.doi.gov/document-library/secretary-order/so3445-unleashing-american-offshore-energy.
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W&T Offshore, Inc. • 5718 Westheimer, Suite 700 • Houston, Texas 77057 • (713) 626-8525 • www.wtoffshore.com

revisions, combined with the time-sensitive financial pressure on OCS operators, supports prompt
completion of each step in the agency’s clearance process.
VI.

The Reduced Burden Estimate Is Reasonable

BOEM proposes reducing the annual burden for this collection from 34,695 hours to 28,245 hours,
attributing the reduction to faster OSFR demonstration methods and a decrease in the number of
companies maintaining OSFR coverage.12 W&T agrees that the proposed estimate is reasonable.
The form revisions themselves should yield additional efficiencies that BOEM has not fully
captured in its estimate. Clearer coverage language will reduce the iterative correspondence
between BOEM, applicants, brokers, and OSFR providers regarding the scope of in-force
instruments. Additionally, the revised forms will reduce the volume of clarifying communications
after an incident and will reduce disputes over coverage. W&T encourages BOEM to monitor
actual respondent burden following implementation and to highlight any further efficiencies in the
next renewal of this collection.
VII.

Conclusion

W&T supports BOEM’s proposed revisions to Forms BOEM-1019, BOEM-1020, and BOEM1023 and the associated burden estimate, and W&T respectfully urges BOEM to complete its
review of comments and submit the ICR to OMB as promptly as practicable following the close
of the 60-day comment period. As detailed in Section III, the temporal-trigger ambiguity in the
existing forms has produced ongoing operational and market impacts on OCS operators, including
extended coverage disputes over incidents that successive OSFR providers did not underwrite.
Those impacts continue for so long as the existing forms remain in effect, and as outlined in Section
V, time-sensitive procurement pressures on the annual OSFR procurement cycle are imposing
avoidable costs on operators that prompt finalization would relieve.
W&T appreciates the opportunity to comment and welcomes the opportunity to discuss these
comments with BOEM staff as the agency proceeds with OMB review.
Sincerely,

Todd Grabois
Vice President, Treasurer
W&T Offshore, Inc.
5718 Westheimer Road, Suite 700
Houston, Texas 77057

12

91 Fed. Reg. at 27,982.
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W&T Offshore, Inc. • 5718 Westheimer, Suite 700 • Houston, Texas 77057 • (713) 626-8525 • www.wtoffshore.com