MMS Issues Proposed Notice of Eastern GoM Lease Sale 197
|Friday, November 05, 2004
The Minerals Management Service announced in the Federal Register the availability of the Proposed Notice of Sale for Eastern Gulf of Mexico (GOM) Lease Sale 197, an offshore oil and gas lease sale scheduled for March 16, 2005. This proposed lease sale is the third Eastern GOM Outer Continental Shelf (OCS) lease offering in the last five years, and the configuration is the same as for lease sales 181 and 189, held in December 2001 and December 2003, respectively.
The proposed lease sale area encompasses 124 unleased blocks in an area of the Eastern GOM OCS Planning Area, and covers about 714,240 acres located from 100 to 196 miles offshore in water depths of 1,600 to more than 3,425 meters. Estimates of undiscovered economically recoverable hydrocarbons in the proposed sale area range from 65 million to 85 million barrels of oil and 0.265 trillion to 0.34 trillion cubic feet of natural gas.
Recently revised provisions proposed for this lease sale include the following:
As a further incentive towards meeting our Nation's energy needs and increasing domestic natural gas and oil production, MMS will continue a royalty suspension of 12 million barrels of oil equivalent for a lease in water depths of 1,600 meters or deeper in this proposed notice of sale.
At this stage in the lease sale process, the proposed notice of terms and conditions will be sent to the Governors of the affected states for a 60-day comment period. The states are Florida, Alabama, Louisiana, and Mississippi.
Statistical Information (Lease Sale 197):
Size: 124 unleased blocks; 714,240 acres
Initial Period: 10 years
Minimum Bonus Bid Amount: $37.50 per acre, or fraction thereof
Rental/Minimum Royalty Rates: $7.50 per acre, or fraction thereof
Royalty Rates: 12-1/2%
Royalty Suspension Area: A royalty suspension of 12 million barrels of oil equivalent will apply to all leases in this sale.