Secured Funding for the Future
A first-of-its-kind “insurance-like” solution designed specifically for the energy sector’s underfunded Asset Retirement Obligations (AROs).
OneNexus holds funds for future decommissioning in a regulated capital reserve account within a wholly-owned, Investment Grade rated insurance company.
Funds are verified by 3rd-party actuarial reviews and backstopped by investment-grade rated global insurance and reinsurance capital providers.
Responsibility does not end when wells stop producing
Financial Assurance for Decommissioning
- The Defined Benefit amount is chosen by the policyholder and is intended to reflect the estimated future plugging cost.
- Operator receives the Defined Benefit payment from OneNexus after properly decommissions the well.
- The operator has the right to transfer title, and all post plugging liability, to OneNexus after the well is decommissioned
Full Risk Transfer
Financial & Performance Assurance for Decommissioning
- OneNexus becomes the Primary Obligor of the ARO and assumes the legal and performance obligations for performing all necessary decommissioning activities
- Operator transfers title and operatorship of the well to OneNexus at the end of the well’s useful life, but prior to decommissioning/plugging
- OneNexus decommissions the well, assuming full cost risk and all post plugging liabilities.
Prudent Governance & Risk Management
The Asset Retirement Agreement follows the well through divestitures, eliminating “boomerang” liability if a future owner should default or go bankrupt.
Protects the company and executives against adverse publicity surrounding asset decommissioning.
Partner Non-Payment Risk
Pre-payment of future decommissioning costs by working interest partners protects the operator from having to collect from them in the future.
Well Underperformance Protection
If a well underperforms or requires plugging earlier than anticipated, OneNexus steps in to cover the cost of the ARO.
The applicable State or Federal government regulatory agency is named “Loss Payee” and gets the benefits of the coverage amount. OneNexus assumes many of the risks associated with future regulatory changes.
OneNexus takes title and assumes the liabilities for the plugged wells should any future remediation or intervention be required.
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