Deep Water Royalty Relief
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.
Categorical Relief
Case-by-Case Relief
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
(627 KB xls)
RSVP Version 2.14 Example
(654 KB xls)
RSVP Documentation
(655.19 KB PDF)
RSVP Documentation Addendum
(11.34 KB PDF)
RSVP Original Economic Assumptions
Most Recent Parameter Updates
(36.66 KB PDF)
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