NTL No. 2004-P03                             Effective Date:  November 10, 2004

NOTICE TO LESSEES AND OPERATORS
OF FEDERAL OIL AND GAS LEASES
IN THE PACIFIC OUTER CONTINENTAL SHELF REGION

Offshore Facility Decommissioning Costs Report

This Notice to Lessees and Operators serves to notify you of the availability of a newly revised report entitled Offshore Facility Decommissioning Costs, Pacific OCS Region, September 17, 2004.

The Pacific OCS Region (POCSR) Offshore Facility Decommissioning Cost (OFDC) Team was formed to develop cost estimates for decommissioning OCS oil and gas facilities in the POCSR.  This cost study was developed by the team in accordance with Federal regulations (30 CFR 250) governing oil and gas operations conducted on the OCS.  The regulations specify requirements for plugging wells, decommissioning platforms and pipelines, and clearing a lease site. This report is one of the inputs used to determine if a lessee is required to post a Supplemental Bond to insure OCS lease decommissioning obligations are met. Title 30 CFR 256 and MMS Notice to Lessees No. 2003-N06 specify the requirements for Supplemental Bonds.

The report may be downloaded on the MMS website, at:

http://www.mms.gov/omm/pacific/lease/
2004_final_decommissioning_cost_report_rev_1.pdf

If you have any questions concerning the report or the supplemental bonding process, please call Mr. Frederick L. White at (805) 389-7830 or Mr. Ed Lee Lim at (805) 389-7583.

Paperwork Reduction Act of 1995 Statement:  This notice does not impose additional information collection requirements subject to the Paperwork Reduction Act of 1995.

 [original signed by]                                                

______________________________                       November 10, 2004
Nabil F. Masri                                                                  Date
Chief, Office of Facilities, Safety and Enforcement