The
Minerals Management Service announced today the availability of the
Final Notice of Lease Sale 194, an offshore oil and gas lease sale in
the Central Gulf of Mexico, scheduled for March 16, 2005.
The final lease sale encompasses 4,063 unleased
blocks covering approximately 21.4 million acres in the Central GOM
Outer Continental Shelf Planning Area offshore Louisiana, Mississippi,
and Alabama.
The blocks are located from three to about 210
miles offshore in water depths of four to more than 3,400 meters. MMS
estimates the lease sale could result in the production of from 276 to
654 million barrels of oil and from 1.59 to 3.30 trillion cubic feet
of natural gas.
The final notice of sale, published today in the
Federal Register, introduces a recent change that was not
included in the proposed notice of Lease Sale 194. This recent change
is as follows:
-
Mississippi Canyon Block 920 is being offered
in this lease sale, subject to a new lease stipulation entitled
"Below Seabed Operations on Mississippi Canyon Block 920." This
stipulation requires that all activities on the seabed surface or
within the water column that are part of exploration, development
and production activities or operations for Mississippi Canyon Block
920 must take place from outside the lease by the use of directional
drilling or other techniques
Recently revised
provisions that were included in the proposed notice of sale and have
been adopted for this final notice of sale include the following:
- Vermilion Blocks 139 and 140 are being offered in this
lease sale, subject to a new lease stipulation entitled "Limitation on
Use of Seabed and Water Column in the Vicinity of an Approved Offshore
Liquefied Natural Gas Deepwater Port Receiving Terminal." Vermilion
Blocks 139 and 140 were previously deferred in recent Central GOM
Lease Sale 190 pending completion of MMS's
ongoing consultation with the U.S. Coast
Guard regarding appropriate measures to ensure avoidance of
potential conflicts between LNG port activities and OCS oil and gas
activities.
- The minimum bonus bid amount has been raised from $25 per acre
or fraction thereof to $37.50 per acre or fraction thereof for
deepwater tracts located in water depths of 400 to less than 800
meters.
Additionally, the U.S. Coast Guard and the
Maritime Administration have received six applications for the
licensing of deepwater ports involving proposed LNG facilities. These
proposed facilities would receive LNG ships, re-gasify the LNG
offshore and transport the natural gas to onshore markets through new
pipelines that interconnect with existing pipelines.
This lease sale incorporates a continuation of
previously adopted lease terms and conditions relative to recent
Central GOM lease sales.
Statistical Information (Lease Sale 194)
Size: 4,063 unleased blocks; 21.4 million
acres
Initial Period
-
5 years for blocks in water depths less than
400 meters: 1,196 blocks
-
8 years for blocks in water depths of 300 to
less than 800 meters: 127 blocks
-
10 years for blocks in water depths of 800
meters or deeper: 2,740 blocks
Minimum Bonus Bid Amount
-
$25.00 per acre of fraction thereof for water
depths less than 400 meters: 1,196 blocks
-
$37.50 per acre or fraction thereof for water
depths 400 meters or deeper: 2,867 blocks
Rental/Minimum Royalty Rates
-
$5.00 per acre or fraction thereof for water
depths less than 200 meters: 1,107 blocks
-
$7.50 per acre or fraction thereof for water
depths 200 meters or deeper: 2,956 blocks
Royalty Rates
-
16 2/23 percent royalty rate in water depths
less than 400 meters: 1,196 blocks
-
12 1/2 percent royalty rate in water depths 400
meters or deeper, 2,876 bocks
Royalty Suspension Areas
-
0 to less than 200 meters: 1,107 blocks
-
400 to less than 800 meters: 127 blocks
-
800 to less than 1,600 meters: 195 blocks
-
1,600 meters or deeper: 2,545 blocks
The Final Notice of Lease Sale 194 will be posted
on the MMS Gulf of Mexico website
at . In addition, copies of the document are available from the MMS
Gulf of Mexico Regional Office, Public Information Unit, 1201 Elmwood
Park Boulevard, New Orleans, Louisiana 70123. Telephone (504)
736-2519, toll free 1-800-200-GULF.
The MMS, part of the
U.S. Department of the Interior, oversees 1.76 billion acres of the
Outer Continental Shelf, managing offshore energy and minerals while
protecting the human, marine, and coastal environments through
advanced science and technology research. The OCS provides 30 percent
of oil and 23 percent of natural gas produced domestically, and sand
used for coastal restoration. MMS collects, accounts for, and
disburses mineral revenues from Federal and American Indian lands,
with fiscal year 2004 disbursements of around $8 billion and more than
$143 billion since 1982. The Land and Water Conservation Fund, which
pays for acquisition of state and federal park and recreation land,
gets nearly $1 billion a year.