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U.S. Department of the Interior
Minerals Management Service
Gulf of Mexico OCS Region

NEWS RELEASE


FOR RELEASE: February 15, 2002 Barney Congdon
(504) 736-2595

Caryl Fagot
(504) 736-2590

Debra Winbush
(504) 736-2597

MMS Issues Final Notice of Central Gulf Lease Sale 182

The Minerals Management Service announced in the Federal Register today the availability of the Final Notice of Sale 182, an offshore oil and gas lease sale in the Central Gulf of Mexico, scheduled for March 20, 2002, at the Sheraton New Orleans Hotel, in the Grand Ballroom C, 500 Canal Street. That final notice includes several measures to increase domestic natural gas and oil production to meet the Nation's energy needs.

One of these measures is a continuation of a shallow-water, deep-gas initiative begun with the year 2001 Gulf of Mexico offshore oil and gas lease sales.

This shallow-water, deep-gas measure is specifically designed to spur domestic natural gas production during the years 2003-2007. Several studies, including the report issued by the National Petroleum Council, indicate that the Nation's demand for natural gas will grow from the current 22 trillion cubic feet (TCF) of gas to 29 TCF of gas in 2010. This initiative, if adopted and implemented for several offshore lease sales, could contribute additional gas production in the range of 250 to 600 BCF in the period 2003 to 2007. Up to 10 percent of this incremental effect could be realized from proposed Sale 182 alone.

Included also in this final notice are both new and continued measures for increasing deepwater natural gas and oil production:

Final Sale 182 encompasses about 4,446 available blocks in the Central Gulf of Mexico Outer Continental Shelf planning area offshore Louisiana, Mississippi, and Alabama. This area covers about 23.4 million acres. Blocks in this sale are located from 3 to 210 miles offshore in water depths ranging from 4 to more than 3,425 meters. Estimates of undiscovered economically recoverable hydrocarbons expected to be discovered and produced as a result of this sale proposal range from 150 to 440 million barrels of oil and 1.53 to 4.39 TCF of natural gas.

Statistical Information Sale 182

Size 4 ,446 unleased blocks; 23.4 million acres
Primary
Lease
Terms:
5 Year - Water depths less than 400 meters - 1,405 Blocks
8 Year - Water depths between 400 and 799 meters - 136 Blocks
10 Year - Water depths between 800 meters or deeper - 2,905 Blocks
Minimum
Bids:
$25.00 per acre or fraction thereof - Water depths less than 800 meters - 1,541 Blocks
$37.50 per acre or fraction thereof - Water depths 800 meters or deeper - 2,905 Blocks
Annual
Rental Rates:
$5.00 per acre or fraction thereof - Water depths less than 200 meters - 1,318 Blocks
$7.50 per acre or fraction thereof - Water depths 200 meters or deeper - 3,128 Blocks
Royalty
Rates:
16 2/3% Royalty - Water depths less than 400 meters - 1,405 Blocks
12 ½% Royalty - Water depths 400 meters or deeper - 3,041 Blocks
Royalty
Relief
Areas:
0 - 199 Meter Royalty Suspension Area - 1,318 Blocks
400 - 799 Meter Royalty Suspension Area - 136 Blocks
800 - 1,599 Meter Royalty Suspension Area - 345 Blocks
1,600 Meters and Greater Royalty Suspension Area - 2,560 Blocks
Royalty
Suspension
Volumes:
1,318 blocks subject to deep gas incentive (first 20 BCF)
87 blocks with no automatic royalty relief
136 Blocks subject to 5MMBOE relief
345 blocks subject to 9-MMBOE relief
2,560 blocks subject to 12-MMBOE relief

Deep Gas Initiative

Deepwater Royalty Relief

MMS is the federal agency in the U.S. Department of the Interior that manages the nation's oil, natural gas and other mineral resources on the outer continental shelf in federal offshore waters. The agency also collects, accounts for and disburses mineral revenues from federal and Indian leases. These revenues totaled nearly $10 billion in 2001 and more than $120 billion since the agency was created in 1982. Annually, nearly $1 billion from those revenues go into the Land and Water Conservation Fund for the acquisition and development of state and Federal park and recreation lands.

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