Deep water royalty relief can be provided through regulations, individual lease terms, and applications for case-by-case relief. Leases issued in Gulf of Mexico Region (GOMR) sales held prior to passage of the Deepwater Royalty Relief Act of 1995 (DWRRA) in water depths 200 meters or deeper that lie wholly west of 87 degrees, 30 minutes West longitude are called “Pre-Act” leases. Pre-Act leases may submit an application that demonstrates economic need to be considered for case-by-case relief. Leases issued in GOMR sales held in years 1996 through 2000, in water depths 200 meters or deeper that lie wholly west of 87 degrees, 30 minutes West longitude were granted categorical relief under the DWRRA. Leases issued in GOMR sales held since 2000 may be issued with a designated royalty suspension volume (RSV). Both the Lease Instrument and Final Notice of Sale specify applicable water depth categories and associated RSVs. All Post-2000 leases in water depths 200 meters or deeper are also eligible to apply for case-by-case relief. Following are the guidelines and regulations that apply to deep water royalty relief.

  Deep Water Royalty Relief Act (DWRRA) (11/28/95)

  Advanced Notice of Proposed Rulemaking (AC13, 2/23/96)

Categorical Relief
 

  Royalty Relief for Deepwater OCS Oil and Gas Leases – Conforming Regulations to Court Decision
      (AD29 Final Rule 10/7/08)
 

  OCS Oil and Gas Leasing (AC69 Final Rule 2/23/01)
 

  OCS Oil and Gas Leasing (AC69 Proposed Rule 9/14/00)
 

  Royalty Relief for New Leases in Deep Water (AC14 Final Rule 1/16/98)
 

  Deepwater Royalty Relief for New Leases (AC14 Interim Rule, 3/25/96)
 

  OTC Paper on Final DWRRA Royalty Relief Rule
 

Case-by-Case Relief
 

  Guidelines for Case-by-Case Relief (2/14/02)

  Relief or Reduction in Royalty Rates – Deep Water Royalty Relief for OCS Oil and Gas Leases Issued
      After 2000 (AC71 Final Rule 1/15/02)
 

  Relief or Reduction in Royalty Rates – Deep Water Royalty Relief for OCS Oil and Gas Leases Issued
      After 2000 (AC71 Proposed Rule 11/16/00)
 

  Royalty Relief for Producing Leases and Certain Existing Leases in Deep Water
      (AC13 Final Rule 1/16/98)
 

  Royalty Relief for Producing Leases and Certain Existing Leases in Deep Water
      (AC13 Interim Rule 5/31/96)

RSVP - Version 2.14 of RSVP was released effective November 10, 1999. This version incorporates the economic parameters of November 1, 1999 and features enhancements to the discounting algorithms.

  RSVP Version 2.14 Spreadsheet
  RSVP Version 2.14 Example
  RSVP Documentation
  RSVP Documentation Addendum
  RSVP Original Economic Assumptions
  Most Recent Parameter Updates