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.
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MMS Plans to Begin Selling Royalty Gas in May
The Department of the Interior’s Mineral Management Serviceannounced plans yesterday to begin selling royalty gas productioncollected in its offshore Texas royalty in-kind (RIK) pilotprogram. The two-year joint initiative between the MMS and theTexas General Land Office will use an auction process that willtake place during the regular bidweek period each month, withdeliveries starting in June.
Subcommittee OKs Royalty-in-Kind
The House Subcommittee on Energy and Mineral Resources Thursdayapproved royalty-in-kind legislation (H.R. 3334) to require thefederal government to take the actual oil or natural gas product asits royalty payment instead of cash for production offshore and onfederal lands. The bill, opposed by the Interior Department’sMinerals Management Service (MMS), included an amendment whichwould allow the government to receive cash for production fromlow-volume producing wells in remote locations.