Yes, OneNexus takes title to the well. The operator shall have the sole and irrevocable right to transfer the title of the asset to OneNexus at any point in time, typically at the end of the well’s useful life.
OneNexus Assurance covers all future ARO expenses for less than 1% of the D&C costs of new wells. Payment can be financed over a 10 year period. Contact us for custom quotes: Pricing@OneNexus.com
Yes. The cost of the assurance policy can be billed to working interest partners similar to the cost of well-control insurance. This eliminates the risk that partners will not be able to fulfill their financial portion of the obligation at the time of retirement due to insolvency.
The ARO liability is derecognized, remeasured, or offset once the well is covered by OneNexus Assurance at contract signing. OneNexus assumes the role of primary obligor of the ARO and takes on the legal responsibility to settle the ARO at the appropriate time in the future.
OneNexus Assurance remains with an asset. The right to transfer the title of the asset to OneNexus will then reside with the new operator.
Yes. OneNexus Assurance remains with an asset, even through divestitures, thus mitigating the risk that the decommissioning responsibility comes back to the original owner if a future owner defaults.
Through its investment-grade rated insurance company, OneNexus can guarantee that the funds will be available in the future. Funds for plugging are held in a capital reserve account with a wholly-owned insurance company that is regulated by the Oklahoma Insurance Department’s Captive Insurance Division.
Unlike bonds, OneNexus Assurance is directly applied to the ARO, thus removing the operator’s future obligation to fund and perform the decommissioning work. Bonds are posted for the benefit of the state, and the operator is still responsible for the cost and execution of the retirement obligation.
No. Since operatorship and title of the well(s) are transferred to OneNexus, the client has no future liabilities in relationship to the asset. As the final operator of record, OneNexus will be responsible for any future environmental liabilities and compliance with State/Federal requirements which could include post-plugging well bonding.
OneNexus is a first-of-its-kind operator, focused solely on decommissioning, not producing, oil and gas assets.