Minerals

Responding to projected shortages in natural gas and oilsupplies, the Minerals Management Service (MMS) has announcedproposed new rules to selectively extend deep-water royalty reliefin the Gulf of Mexico past the Nov. 28 expiration of the currentrelief program.

Responding to projected shortages in natural gas and oilsupplies, the Minerals Management Service (MMS) has announcedproposed new rules to selectively extend deep-water royalty reliefin the Gulf of Mexico past the Nov. 28 expiration of the currentrelief program.

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 Minerals Management Service (MMS) is soliciting bids forabout 25 MMcf/d or its royalty share of gas produced from certainoffshore leases in the Matagorda Island Offshore Operating System(MOPS). Bids are due by July 24 at 1 p.m. ET and the winner will bechosen within the following 24 hours.

The Minerals Management Service (MMS) is soliciting bids forabout 25 MMcf/d or its royalty share of gas produced from certainoffshore leases in the Matagorda Island Offshore Operating System(MOPS). Bids are due by July 24 at 1 p.m. ET and the winner will bechosen within the following 24 hours.

The Interior Department’s Minerals Management Service contends arecent bid to exclude Outer Continental Shelf (OCS) pipelines fromFERC’s industry-wide ban on “buy-sell” transactions is based on theincorrect assumption that such transactions routinely occur as partof the agency’s royalty in-kind (RIK) projects.

The Interior Department’s Minerals Management Service contends arecent bid for FERC to exclude Outer Continental Shelf (OCS)pipelines from an industry-wide ban on “buy-sell” transactions isbased on the incorrect assumption that such transactions routinelyoccur as part of the agency’s royalty in-kind (RIK) projects.

If the Minerals Management Service (MMS) is correct, the Gulf ofMexico has a growing role to play in meeting the nation’s demandfor natural gas. The agency presented results of a study evaluatingthe role of the federal Outer Continental Shelf (OCS) in supplyingfuture U.S. gas demand at a symposium held in Houston last week.

The Minerals Management Service (MMS) released results of astudy evaluating the role of the federal Outer Continental Shelf(OCS) in supplying future U.S. gas demand. Results were presentedat an industry symposium held in Houston yesterday.