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The NewsRoom
Release: #3781
Date: February 5, 2008
MMS Proposes Bonus or Royalty Credits for Relinquishing Eligible
Leases
Certain Leases Offshore Florida
Eligible for Credit Exchange for Use in Gulf of Mexico
WASHINGTON
The U.S. Department of the Interior’s Minerals Management Service
(MMS) is proposing to amend its regulations to provide a credit to
lessees who relinquish certain eligible leases in the Gulf of
Mexico. The amended regulations will also define the eligible leases
and establish how those credits may be used. This proposed rule for
oil and gas leases on the Outer Continental Shelf was mandated by
the Gulf of Mexico Energy Security Act of 2006.
The Act mandated that there be a moratorium on oil
and gas leasing and any related activity in any part of the Eastern
Planning Area that is within 125 miles of the coastline of the State
of Florida and a portion of the Central Planning Area that is within
100 miles of the coastline of Florida. It also allowed for the
exchange of existing leases in these areas for bonus or royalty
credit to be used for leases in the Gulf of Mexico.
“We are confident that these amendments to the
regulations will allow for an efficient exchange of the leases for
credit and help to promote the oil and gas operators’ continued
development of energy production in the Gulf of Mexico,” said MMS
Director Randall Luthi.
The
proposed rule would provide a credit equal to
the bonus bid originally paid plus subsequent rental payments to
lessees who relinquish leases within the specified areas. Lessees
may also use the credits in lieu of monetary payment for either a
lease bonus bid or royalty due on oil and gas production from most
other leases in the Gulf of Mexico or transfer the credits to other
parties for use as bonus bid or royalty payments due on most Gulf of
Mexico leases.
MMS is accepting comments on the proposed rule for
the next 60 days. Comments must be identified with RIN 1010-AD44 in
the subject line, and will be accepted via one of the following
methods through April 1, 2008.
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Federal eRulemaking Portal
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Mail or hand-carry: |
Minerals Management Service
Attention: Regulations and Standards Branch (RSB)
381 Elden Street, MS-4024
Herndon, Virginia 20170-4817
Media Contact:
Eileen Angelico 504-736-2595
Nicolette Nye 703-787-1011
MMS: Securing Ocean Energy & Economic Value for America
U.S. Department of the Interior
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