Suspensions

The Minerals Management Service (MMS) on Friday published a final rule in the Federal Register to allow Suspensions of Operations (SOO) in certain circumstances, which it said will encourage oil and natural gas lessees or operators to drill ultra-deep wells — deeper than 25,000 feet true vertical depth below the ocean surface — on the Outer Continental Shelf. The SOO rule, which would temporarily stop the clock on the lease term to prevent the lease from expiring, is scheduled to take effect Jan. 17.

With an informal inquiry under way by the Securities and Exchange Commission (SEC), Reliant Resources Inc. CEO Steve Letbetter revealed last week that the company suspended an employee in its accounting department and another employee in the risk management division who apparently were involved in the company’s earnings restatement, first announced in February. Reliant Resources said earlier this month that the SEC had launched in informal inquiry, but the CEO said he was unaware of any outstanding issues.