The
NewsRoom
Release #: 3069
Date: March 26, 2004
MMS Issues Proposed Notice of Western
Gulf Lease Sale 192
The Minerals Management Service
announced in the Federal Register the availability of the
proposed notice of sale 192, an offshore oil and gas lease sale in the
western Gulf of Mexico, scheduled for August 18, 2004. The proposed
sale 192 encompasses approximately 3,890 unleased blocks covering
approximately 21.1 million acres in the western Gulf of Mexico outer
continental shelf planning area offshore Texas and in deeper waters
offshore Louisiana. The blocks are located five to 357 kilometers
offshore in water depths ranging from eight to 3,100 meters. MMS
estimates the proposed sale could result in the production of 136 to
262 million barrels of oil and 0.81 to 1.44 trillion cubic feet of
natural gas.
Provisions proposed in this sale
include the following:
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MMS would offer a royalty relief incentive
for shallow-water deep-gas production from leases issued from lease
sale 192. The requirements for royalty suspension volumes and
conditions are taken from a new regulation issued by MMS, 30 CFR
203.40 (A) (3) effective March 1, 2004. (Please refer to 69 FR 3492
published on January 26, 2004.)
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MMS continues to study
the issue of establishing appropriate price thresholds for deepwater
production and will make a final decision for this sale in the final
notice of sale (scheduled for July 2004).]
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MMS proposes to offer in
this sale Mustang Island blocks 793, 799, and 816, which were deferred
from recent western GOM sales, subject to a recently revised lease
stipulation for operations in the naval mine warfare area. For these
three blocks, the stipulation will require exploration, development,
and production activities to be conducted from outside the lease.
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A minimum bonus bid amount that has been
raised from $25 per acre to $37.50 per acre for deepwater tracts
located in water depths of 400-799 meters.
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A revised protected
species stipulation that is designed to minimize or avoid potential
adverse impacts to federally protected species such as sea turtles,
marine mammals, Gulf sturgeon, birds, etc.
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In addition to the protected species
and naval mine warfare area lease stipulations, this proposed notice
also includes previously adopted lease stipulations relative to
topographic features, military areas, and Law of the Sea Convention
royalty payment.
Finally, this proposed notice contains
a requirement that every bidder submit, by the bid submission
deadline, a geophysical data and information statement identifying any
processed or reprocessed pre- and post-stack depth migrated
geophysical data and information in its possession or control and used
in the evaluation for each block upon which they are participating as
a bidder.
Statistical Information (Lease
Sale 192)
Size
3,890 unleased blocks; 21.1 million
acres
Initial Period
5 years for blocks in water
depths less than 400 meters:
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1,807 blocks
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8 years for blocks in water
depths of 400 to 799 meters:
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374 blocks
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10 years for blocks in water
depths of 800 meters or deeper:
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1,709 blocks
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Minimum Bonus Bid Amount
$25.00 per acre or fraction
thereof for water depths less than 400 meters:
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1,807 blocks
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$37.50 per acre or fraction
thereof for water depths 400 meters or deeper:
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2,083 blocks
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Rental/Minimum Royalty Rates
$5.00 per acre or fraction
thereof for water depths less than 200 meters:
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1,608 blocks
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$7.50 per acre or fraction
thereof for water depths 200 meters or deeper:
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2,282 blocks
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Royalty Rates
16-2/3% royalty rate in water
depths less than 400 meters:
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1,807 blocks |
12-1/2% royalty rate in water
depths 400 meters or deeper:
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2,083
blocks |
Royalty Suspension
Areas
0 to 199 meters:
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1,608 blocks
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400 to 799 meters:
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374 blocks
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800 to 1599
meters:
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968 blocks
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1600 meters and
deeper:
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741 blocks
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The Proposed
Notice of Sale will be posted on the MMS Website at
http://www.gomr.mms.gov. In addition, copies of the document are
available from the
MMS Gulf of Mexico Regional Office
Public
Information Unit
1201 Elmwood Park Boulevard
New Orleans, Louisiana 70123
Telephone (504) 736-2591, toll free 1-800-200-GULF
The Minerals Management Service is the
federal agency in the U.S. Department of the Interior that manages the
nation’s oil, natural gas, and other mineral resources on the Outer
Continental Shelf in Federal offshore waters. The agency also
collects, accounts for, and disburses mineral revenues from Federal
and American Indian lands. MMS disbursed more than $8 billion
in FY 2003 and more than $135 billion since the agency was created in
1982. Nearly $1 billion from those revenues go into the Land and
Water Conservation Fund annually for the acquisition and development
of state and Federal park and recreation lands.
Relevant Web Sites
MMS Main Website
Gulf of Mexico Website
Notice of Availability of the Environmental Assessment of Proposed
Western Planning Area Lease Sale 192
Media Contacts
Debra Winbush
(504) 736-2597
Caryl Fagot
(504) 736-2590
MMS: Securing Ocean Energy & Economic Value for
America
U.S. Department of the Interior |