Interior

The Interior Department’s Minerals Management Service (MMS) hasannounced that the OCS Lease Sale 178 planned for the central Gulfof Mexico will offer producers a mix of incentives to encourageultra-deep-water exploration and development for both natural gasand crude oil.

The Interior Department’s Minerals Management Service (MMS) hasannounced that the OCS Lease Sale 178 planned for the central Gulfof Mexico will offer producers a mix of incentives to encourageultra-deep-water exploration and development for both natural gasand crude oil.

The Senate Energy and Natural Resources committee yesterdayvoted out the controversial nomination of Gale Norton for secretaryof the Department of Interior.

The Department of Interior’s Minerals Management Service (MMS)must carefully examine the option of including promising areas inits new 5-year leasing plan that have been subject to moratoria inthe past, the National Ocean Industries Association (NOIA) said.

The fifth sale of blocks in the Western Gulf of Mexico has beenset for Aug. 23 in New Orleans by the U.S. Department of Interior’sMinerals Management Service (MMS). The Final Notice of Sale,published in yesterday’s Federal Register, covers 3,789 availableblocks encompassing about 20.61 million acres in the Western Gulf’sOuter Continental Shelf Planning Area offshore Texas, and in deeperwaters offshore Louisiana. Blocks are located from nine to 200miles offshore in water depths ranging from eight meters to morethan 3,000 meters. The MMS said this is the first Western Gulf saleto require the use of electronic funds transfer procedures for1/5th bonus bids. Current OCS lessees and operators may securepayment using a single bid form; others may be required to securethe EFT payment another way. The Sale Notice Package is availableon the MMS Internet site atwww.gomr.mms.gov/homepg/lsesale/lsesale.html, or from the Gulf ofMexico Region Public Information Unit, 1201 Elmwood Park Blvd., NewOrleans, LA 70123-2394. You can also call 504-736-2519 or800-200-GULF.

The U.S. Senate amended the Department of the Interior’sappropriations bill to include a provision for a two million barrelheating oil reserve in the Northeast. The House already hasauthorized creation of a permanent reserve but has not appropriatedfunds. A conference committee now will merge the two measures. Lastweek, the president ordered the Department of Energy to establish atemporary home heating oil reserve in time for use this winter.This week, DOE plans to advertise for bids to fill that stockpile.It intends to sell oil from the Strategic Petroleum Reserve inLouisiana in exchange for heating oil and storage capacity in theNortheast.

The Department of the Interior’s Minerals Management Service(MMS) announced a continuation of the Outer Continental Shelfroyalty-in-kind (RIK) pilot program last week and has doubled theamount of gas previously offered. Nearly 500 MMcf/d of productionwill go on sale this spring, the MMS said. Details for the sale arestill being finalized.

The Department of the Interior’s Mineral Management Service(MMS) announced a continuation of the Outer Continental Shelfportion of its royalty-in-kind (RIK) pilot program Tuesday and hasdoubled the amount of gas previously offered. The nearly 500 MMcf/dof production will go on sale this spring, the MMS said. Detailsfor the sale are still being finalized.

The Department of the Interior’s Minerals Management Service(MMS) is beginning its third royalty-in-kind (RIK) pilot, puttingit in the business of selling Gulf of Mexico (GOM) gas productionit accepts in place of cash royalties. The pilot is intended totest a different approach to RIK, using a competitive auction tomove up to 260 MMBtu/d initially.