FY
2008 Allocations resulting from the Gulf of Mexico Energy
Security Act of 2006 (GOMESA)
(31.56 KB PDF)
On
December 20, 2006, the President signed into law the
Gulf of Mexico Energy Security Act of 2006 (Pub. Law
109-432)
(50.83 KB
PDF). The Act significantly enhances OCS oil and gas leasing
activities and revenue sharing in the Gulf of Mexico (GOM).
The Act:
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shares leasing revenues with Gulf producing states and
the Land & Water Conservation Fund for coastal
restoration projects;
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requires offering for lease 8.3 million acres in the
eastern portion of the GOM including 5.8 million acres
that were previously held under Congressional moratoria;
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bans
oil and gas leasing within 125 miles off the Florida
coastline in the Eastern Planning Area, and a portion of
the Central Planning Area, until 2022; and,
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allows companies to exchange certain existing leases in
moratorium areas for bonus and royalty credits to be
used on other GOM leases. |
Revenue Sharing
The
Act created revenue sharing provisions for the four Gulf oil
and gas producing States of Alabama, Louisiana, Mississippi
and Texas, and their coastal political subdivisions (CPS’s).
GOMESA funds are to be used for coastal conservation,
restoration and hurricane protection. There are two phases
of GOMESA revenue sharing:
Phase I: Beginning in Fiscal Year 2007, 37.5 percent of all qualified
OCS revenues, including bonus bids, rentals and production
royalty, will be shared among the four States and their
coastal political subdivisions from those new leases issued
in the 181 Area in the Eastern planning area (also known as
the 224 Sale Area) and the 181 South Area. Additionally,
12.5 percent of revenues are allocated to the Land and Water
Conservation Fund (LWCF). The
final regulations for Phase I revenue sharing
(96.19
KB PDF)
were issued on December 23, 2008 and specify that the MMS
intends to disburse funds on or before March 31st of the
fiscal year following the fiscal year to which the qualified
OCS revenues were attributed.
Allocations of GOMESA Revenue
can be found on the
GOMESA Revenue Sharing web page. This page
displays annual GOMESA revenue sharing disbursements to the
Gulf producing States, CPS’s and LWCF.
Phase II: The second phase of GOMESA revenue sharing begins in Fiscal
Year 2017. It expands the definition of qualified OCS
revenues to include receipts from GOM leases issued either
after December 20, 2006, in the 181 Call Area, or, in
2002–2007 GOM Planning Areas subject to withdrawal or
moratoria restrictions. A revenue sharing cap of $500
million per year for the four Gulf producing States, their CPS’s and the LWCF applies from fiscal years 2016 through
2055. The $500 million cap does not apply to qualified
revenues generated in those areas associated with Phase I of
the GOMESA program. MMS will address the second phase of GOMESA revenue sharing in a subsequent rulemaking.
Access to Acreage
for Leasing
The
Act stipulated that 8.3 million acres be offered for oil and
gas leasing shortly after enactment of the statute. This
acreage is included in both the Central Gulf Planning Area
and the Eastern Gulf Planning Area. It consists of:
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approximately 2 million acres in the Central Gulf that
was first offered for leasing after enactment of the law
at
Lease Sale 205 held in October, 2007,
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requires offering for lease 8.3 million acres in the
eastern portion of the GOM including 5.8 million acres
that were previously held under Congressional moratoria;
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approximately 0.5 million acres in the Eastern Gulf that
received a
supplemental environmental impact statement
(17.67 MB PDF) review and were offered for leasing at
Lease Sale 224 held in March, 2008,
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approximately 5.8 million acres in the Central Gulf
received a
supplemental environmental impact statement
(33.82 MB PDF) review and were offered for leasing at
Lease Sale 208 held in March, 2009. |
Extended
Moratorium
The
GOMESA Moratorium covers a portion of the Central Gulf
of Mexico Planning Area (CPA), and, until 2022, most of the
Eastern Gulf of Mexico Planning Area (EPA).
The
specific locations restricted from leasing activities
include that portion of the Eastern Planning Area within 125
miles of Florida, all areas in the Gulf of Mexico east of
the Military Mission Line (86o
41’ west longitude), and the area within the Central
Planning Area that is within 100 miles of Florida.
Credit Exchange
for Eligible Leases
The
Act also allowed for the exchange of existing leases in the
moratorium areas for bonus or royalty credit to be used in
the Gulf of Mexico. The
final regulations for the exchange credits
(65.99 KB
PDF File)
were issued on September 12, 2008.
A
credit will be provided to lessees who relinquish certain
eligible leases in the Gulf of Mexico. Leases are eligible
if they lie within 125 miles off the Florida coast in the
Eastern Planning Area or within 100 miles off the Florida
coast in the Central Planning Area. The lessees must use the
credits by 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 Gulf of Mexico lessees for their use. To obtain
the bonus or royalty credit, all of the lease record title
interest owners must request the credit on or before October
14, 2010.
MMS:
Securing Ocean Energy & Economic Value for America
U.S. Department of the
Interior