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Aletcia Skinner

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1982
  • MMS is created and becomes a bureau of the Department of the Interior
  • Federal Oil and Gas Royalty Management Act is passed establishing the framework to improve management of Federal and Indian mineral royalties.
  • The initial 5-year leasing program is revised introducing the areawide leasing concept.
  • Bonus bids of over $2 billion in Alaska OCS lease sale 71 in the Beaufort Sea.
1983
  • Record for number of lease sales in a year is tied at 8 sales.
  • Greatest high bid dollar amount received in a lease sale ($3,469,214,969 in Central Gulf of Mexico sale 72).
  • President signs Proclamation 5030 (3 CFR 22) setting the U.S. Exclusive Economic Zone (EEZ).  The EEZ is the area contiguous to the terrritorial sea of the United States, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, and the U.S. Overseas territories and possessions and extending 200 nautical miles from the coastline.
1984
  • Total royalty collections including rents and bonuses $7.7 billion.
  • National Fishing Enhancement Act passed encouraging using offshore platforms as artificial reefs.
  • Most tracts offered at a lease sale (8,868 tracts in Eastern Gulf of Mexico sale 79).
  • Record number of exploratory wells drilled in a year (597).
  • Record number of platform installations in a year (229).
  • Focused leasing concept introduced allowing the deletion of low-interest, environmentally sensitive acreage from sale areas early in the lease sale process.
1985
  • Eight States sign cooperative audit agreements with MMS.
  • The Navajo Nation signed a cooperative agreement with the MMS, becoming the first Indian tribe with authority to audit their revenues from mineral production.
  • The Secretary charters the Royalty Management Advisory Committee.
  • The Royalty Management Program's Production Accounting and Auditing System becomes operational.
  • OCS Lands Act Amendments to Section 8(g) are passed.
  • Well drilled farthest from shore (965 km, or 603 miles, in Navarin Basin, AK, Block 673, by ARCO, Inc.).
1986
  • Deepest well drilled (7,620 meters, or 25,000 feet, in the Central Gulf of Mexico, Viosca Knoll, Block 117, by Apache Corporation.
  • Total royalty collections including rents and bonuses $4.2 billion.
  • The State and Tribal Support System is established linking States and Indian tribes receiving mineral revenues with the Royalty Management Program's computerized systems.
1987
  • The Bureau of Indian Affairs/Bureau of Land Management/MMS Joint Steering Committee established by the Department of the Interior to integrate Federal and Indian lease and royalty management programs.
1988
  • Congress enacts first OCS drilling ban in the Eastern Gulf of Mexico, south of the 26th parallel.
  • Lease in deepest water (3,335 meters, or 10,942 feet, in the Eastern Gulf of Mexico, lease sale 116, Lloyd Ridge, Block 737, by Kerr-McGee Corporation.)
  • Final oil and gas valuation regulations published.
  • All companies with monthly royalty payments of $10,000 or more converted to electronic fund transfer.
1989
  • Most bids received on a block (15 in Western Gulf of Mexico lease sale 122, in Galveston, TX, Block 313).
  • Final coal valuation regulations published.
  • Completed conversion of all onshore oil and gas lease production accounting to MMS.
1990
  • Amendments to Clean Air Act passed giving the Environmental Protection Agency jurisdiction for OCS facilities outside Central and Western Gulf of Mexico.
  • Oil Pollution Act of 1990 is passed giving the Secretary of the Interior authority over offshore facilities and associated pipelines, with the exception of deep-water ports, for State and Federal waters.  Section 6003 contained moratorium language for areas offshore North Carolina.
  • Most natural gas produced in a year, 5.09 trillion cubic feet of gas.
  • Royalty Management Program's 5-Year Strategic Plan for Operations and Systems, developed in partnership with constituents is published.

 

1991
  • The President's Council on Management Improvement presented the Royalty Management Program with an Award for Management Excellence.
  • Deepest producing natural gas well (6,587 meters, or 21,612 feet, in the Gulf of Mexico, Well A001, Lease OCS-G 5058, Mobile Block 821, by BP Exploration, Incorporated.)
1992
  • Secretary of the Interior delegates Oil Pollution Act of 1990 authority to MMS.
  • Contemporaneous Audit Initiative completed.  Departmental effort to establish timely audit completions on a more contemporaneous basis.
1993
  • Most platform removals in a year (182).
  • Royalty Management Program named a Quality Improvement Prototype Award Finalist by president's Council on Management Improvement and a Federal Quality Institute.
1994
  • The Indian Minerals Steering Committee is created to improve communications among the Bureau of Indian Affairs, the Bureau of Land Management, MMS, tribes, and allottees.
  • MMS collects more than $255 million through Royalty Management Program compliance efforts bringing total to more than $1.2 billion.
1995
  • Deep Water Royalty Relief Act is passed expanding MMS authority to grant royalty relief.
  • MMS initiates a pilot project to collect offshore natural gas royalties in kind.
  • Secretary charters the Royalty Policy Committee to provide advice on the procedures and policies for collecting royalties on Federal and Indian leases.
  • Royalty Management Program successfully concludes Electronic Data Interchange pilot project.
1996
  • Oil Pollution Act of 1990 (OPA-90) Amendments are passed.
  • Congress repeals Section 6003 of OPA-90 ending North Carolina offshore moratorium.
  • The Federal Oil and Gas Royalty Simplification and Fairness Act enacted to imrove and streamline the Federal royalty program.
  • MMS eliminates most allowance forms for oil, natural gas, and coal produced from Federal leases.
  • Interagency team completes study of California oil valuation, MMS pursues millions in California offshore crude oil underpayments.
  • Well drilled in deepest water (world record well at 2,324 meters, or 7,625 feet, BAHA Prosepct in Western Gulf of Mexico, Alaminos Canyon 600, Shell/Amoco/Mobil/Texaco).
  • Deepest well drilled from a semi-submersible at 7,712 meters (25,450 feet) TVD, in 325 meters (1,075 feet) of water in Central Gulf of Mexico, Green Canyon 142.
1997
  • Most bids on at a lease sale (1,032 tracts for Central Gulf of Mexico lease sale 166).
  • MMS begins paying interest to companies on overpayments of royalties on Federal oil and natural gas leases.
  • Most bids at a lease sale (1,790 bids for Central Gulf of Mexico lease sale 166).
  • MMS begins special royalty internship training programs for Indian Tribal employees.
  • MRM began reengineering initiative to design new business processes and support systems for 21st century.
  • RIK Implementation Team established to conduct feasibility study and proceed with RIK pilot projects in Texas and Wyoming.
  • Southeast Tahoe field, Viosca Knoll Block 784, production rate of 119 MMcfd from a single satellite well tied back to the Bud Lite facility,13 miles away.
  • First royalty relief granted under the Deepwater Royalty granted to Tatham Offshore, Inc., for Sunday Silence, a deepwater field offshore Louisiana in 457 meters (1,500 ft) water depth , about 45 kilometers (72 mi) offshore and about 84 kilometers (135 mi) south of New Orleans, LA. Relief Act for existing leases.

1998
  • In March 1998, the MRM reengineering team issued the preliminary design concepts for the MRM of the 21st century.
  • The first RIK pilot program’s Invitation for Bids (IFB) was issued July 1998. MMS began taking oil under the crude oil in Wyoming RIK program in October 1998.
  • RIK Pilot II program for natural gas in the Texas 8(g) zone of the Gulf of Mexico commenced in December 1998.
  • Production record set in GOM for first freestanding offshore compliant tower and tallest freestanding structure in the world.
  • GOM water-depth drilling record set by oil drillers Presidential Directive under the OCS Lands Act to prevent leasing any area under moratorium before 2012 set by the Glomar Explorer drill ship, at a water depth of 2,352 meters (7,718 ft), 175 miles southeast of New Orleans, LA, in GOM’s Atwater Valley section. Chevron USA Production Company led the project.
  • A-7 well in Ursa field, Mississippi Canyon Blk 809, produced at a rate of 39,317 bpd of oil and 60.67 MMcfd of gas, or 50,150 bpd of oil equivalent. Exceeds previous record of 46,475 boepd set at the Troika development. Shell, BP Amoco, Conoco, and Exxon are joint owners.
  • Baldpate, located in 503 meters (1,650 ft) of water in GOM’s Garden Banks Blk 260, extends almost 580 meters (1,902 ft) above the seafloor to the tip of its flare boom.

1999
  • On July 15,1999, MMS published a final rule requiring electronic reporting except in hardship cases, effective November 1, 1999.
  • Indian Gas Valuation Rules published in August 1999 with effective date of January 1, 2000.
  • MRM awarded Andersen Consulting, now Accenture, the financial systems development and installation contract in September 1999.
  • The DOI began an initiative to transfer 28 million barrels of royalty in kind to DOE to replace SPR barrels that were sold in 1997 and 1998.
  • Oil production from the deepwater portion of the GOM surpassed production from the shallow-water portion although only 30 (or 4%) of GOM’s 747 producing fields are in deepwater, they provide over half of the GOM’s daily oil production. In November 1999, deepwater production marked a major milestone in the history of GOM production, which started in shallow water in 1947.
2000
  • MRM collected, accounted for and timely distributed over $110.4 billion since 1982. Additional $2.5 billion collected through its compliance activities.
  • October 2000, MRM reorganized and changed its name from the Royalty Management Program to Minerals Revenue Management.
  • On March 15, 2000, MMS published the Final Federal Oil Valuation Rule, effective June 1, 2000.
  • Supplementary proposed Indian oil royalty valuation rule was published in January 2000.
  • MRM processed nearly 3.1 million royalty lines and 3.6 million production lines with an error rate of less than 3.7 percent in FY 2000.
  • MRM awarded the compliance/data warehouse development contract to Andersen Consulting in September 2000.
  • All false claims oil suits were settled in principle for an estimated total additional royalty amount of $437 million.
  • MRM completed actions to implement RSFA requirements.
  • World water depth record set for an exploratory well from an anchored rig in GOM announced by Shell Oil on July 4,2000. The R&B Falcon Corporation’s Deepwater Nautilus spudded Baha 2 on the Baha Prospect (Alaminos Canyon Blk 557) reaching a water depth of 2,374 meters (7,790 ft).
  • World’s tallest freestanding structure Installed in 535 m (1,754 ft) of water in the GOM as part of the Texaco USA compliant tower production system (Petronius Project), the structure rises almost 610 meters (2,000 ft) above the seafloor. Oil and gas production from the structure began on July 11, 2000.
  • World’s deepest water drilling and production platform located in the GOM Exxon Mobil Corporation announced on July 3, 2000, the startup of oil and gas production from their Hoover Diana development in 1,463 meters (4,800 ft) of water.
  • Longest horizontal reach record set for a well in the GOM British Petroleum spudded the horizontal well on May 7th and reached the total depth on July 5th. The directional well has a 6,722-meter (22,056 ft or 4.18 mi) offset, with a true vertical depth of 3,003 meters (9,854 ft) and a measured depth of 7,836 meters (25,709 ft or 4.9 mi).
2001
  • MRM implemented a reengineered compliance process for Offshore leases which reduces the compliance cycle from 6 years to 3. MRM demonstrated the feasibility of the new process through completing work in a pilot project for offshore leases that cut the cycle time in half and increased productivity fourfold."
  • The final 8(G) settlement payment was made in April 2001 bringing the total deferred settlement payments to $650 million.
  • New reengineered financial system was implemented in November 2001, on time and within budget.
  • The Farmington Indian Minerals Office (FIMO) was established as a permanent DOI office on September 28, 2001. FIMO implemented a new concept in serving our Navajo constituents by uniting employees from the Bureau of Indian Affairs, Bureau of Land Management, and MMS, under one director for outreach, inspection, enforcement, and mineral revenue compliance services to industry and American Indian stakeholders.
  • On November 13, 2001, the Administration announced an initiative utilizing RIK oil to fill the Strategic Petroleum Reserve (SPR). By October 2002, 130,000 barrels per day of royalty oil will be transferred to the SPR.
  • New Joan Killgore Award established to honor individuals from Indian Tribes who have worked with Minerals Revenue Management on various royalty management issues.
  • Largest find to date world deepwater drilling record set at 9,687 feet in the GOM. (Previous records were 9,157 feet offshore Gabon and 9,111 feet offshore Brazil.)
  • Offshore world record set for an oil and gas production tieback in the GOM British Petroleum and ExxonMobil Corporation announced a major discovery in the deepwater GOM on February 13th. Located 5 miles northwest of the Crazy Horse field on Mississippi Canyon Blk 776, Crazy Horse North will produce 1 billion barrels, making it the largest ever opened in the GOM and ranking as one of the five largest fields in the GOM. The Discoverer 534 drillship spudded the hole in 1,719 meters (5,640 ft) of water and drilled to a total depth of 7,938 meters (26,045 ft or 4.9 mi).
  • Transocean Sedco Forex’s drillship, Discoverer Spirit, spudded an exploration well in 2,945 meters (9,687 ft) of water while working for Unocal at their Trident Prospect located in Alaminos Canyon, Blk 903.
  • ExxonMobil began production on its Mica Project in 4,350 feet of water on Mississippi Canyon Blocks 167 and 211 located 100 miles south of Mobile Bay, Alabama. The subsea development project is tied back by an underwater flowline 29 miles to the existing Pompano platform. The tieback involves both oil and gas. Production started on August 17,2001, at a rate of 140 million cubic feet of natural gas and 13,000 barrels of oil per day.

 

2002
  • Established world water depth record for well production and laying a pipeline at 7,209 feet in the GOM. Marathon set the record for well production in Camden Hills consisting of 2 subsea wells with flowlines connected to Canyon Express. TotalFinalElf set record for laying a pipeline in Camden Hills. Canyon Express links Camden Hills, Aconcaugua, and Kings Peak natural gas fields.

  •  MRM disbursed over $6.6 billion - $5 billion from OCS activities and about $1.6 billion from federal onshore and Indian activities.  Over $66 million was collected as a result of settlements. 

  • BP’s Horn Mountain Truss Spar at MC 127 in 5, 400 feet of water established the world record water depth for free-floating dry tree system.

  •  Activity Based Costing was successfully implemented throughout MRM in support of our goal of effective and efficient program management.

  • MRM successfully completed compliance work on over 97% of 1999 royalties during FY 2002.  The compliance program has collected more than $2.5 billion since its inception through Fiscal Year 2002.

  •  MMS began implementing the President’s Directive to fill the remaining capacity of the Strategic Petroleum Reserve (SPR) utilizing federal Royalty-in-Kind (RIK) oil at a rate of 60,000 barrels per day in April 2002.  In October 2002, MMS increased the fill rate to 100,000 barrels/day.  By April 2003, MMS will achieve a 130,000 barrels/day wellhead production commitment to the SPR Fill Initiative.

  •  MMS began performing US Coast Guard inspection in October 2002.

  •  The tallest self standing conductor was built in the Gulf of Mexico in 174 feet of water. Shell’s Fergana – Chiles Magellan, OCS – 22754, Well 1, South Timbalier 239

  •  MRM implemented several major components of the new top-down compliance and auditing system for oil and gas and solid mineral properties supporting the goal of ensuring compliance within 3 years of the royalty payment due date.

  •  MRM held over 65 outreach meetings including four Pow-Wows.  Through these efforts, MRM resolved various types of payment and minerals issues originated by over 3,000 mineral owners.  In addition, FIMO conducted 10 regular outreach meetings with 906 individual Indian mineral owners, including four by Navajo radio.  FIMO received more than 4,400 visits or calls from Navajo landowners, and met with Navajo Allottees using an exhibit at the Gathering of the Nations, Window Rock Fair, and Shiprock Fair.  

  •  MRM entered into a cooperative audit agreement with the Crow Tribe.  This expanded the cooperative audit program to eight Tribes and 10 states with delegated audit agreements under Sections 202 and 205 of the Federal Oil and Gas Royalty Management Act of 1982.  Since inception of the delegated/cooperative audit program, MRM has collected additional royalties in the amount of $340 million.

  •  Despite a 4-month court ordered Internet shutdown, MMS made significant progress in attaining steady state operations.  During the shutdown, MMS was able to make timely Indian distributions to the BIA.  On the federal side, MMS made estimated payments to the states from December 2001 to July 2002.  As of September 30, 2002, Financial Management reconciled and balanced all of the estimated payment made to the states.  Royalty report processing is now current and production report backlogs have been significantly reduced. 

  •  Chevron/Texaco filed first LNG proposal under the Deepwater Ports Act with the USCG on December 3, 2002.