Decommissioning Funds

Decommissioning funds are reserved resources set aside by companies to cover costs related to safely dismantling and cleaning up facilities after they stop operating, such as power plants or oil rigs. These funds ensure that when a facility is no longer in use, the company has money available to manage environmental responsibilities, remove equipment, and restore the site, reducing the financial burden on taxpayers and preventing environmental harm. This process is often planned for in advance and funded throughout the operational life of the facility to ensure adequate resources are available when needed.