MMS Issues Final Notice of Central Gulf Lease Sale 194
|Friday, February 11, 2005
The Minerals Management Service announced the availability of the Final Notice of Lease Sale 194, an offshore oil and gas lease sale in the Central Gulf of Mexico, scheduled for March 16, 2005.
The final lease sale encompasses 4,063 unleased blocks covering approximately 21.4 million acres in the Central GOM Outer Continental Shelf Planning Area offshore Louisiana, Mississippi, and Alabama.
The blocks are located from three to about 210 miles offshore in water depths of four to more than 3,400 meters. MMS estimates the lease sale could result in the production of from 276 to 654 million barrels of oil and from 1.59 to 3.30 trillion cubic feet of natural gas.
The final notice of sale, published today in the Federal Register, introduces a recent change that was not included in the proposed notice of Lease Sale 194. This recent change is as follows:
Recently revised provisions that were included in the proposed notice of sale and have been adopted for this final notice of sale include the following:
Additionally, the U.S. Coast Guard and the Maritime Administration have received six applications for the licensing of deepwater ports involving proposed LNG facilities. These proposed facilities would receive LNG ships, re-gasify the LNG offshore and transport the natural gas to onshore markets through new pipelines that interconnect with existing pipelines.
This lease sale incorporates a continuation of previously adopted lease terms and conditions relative to recent Central GOM lease sales.
Statistical Information (Lease Sale 194):
Size: 4,063 unleased blocks; 21.4 million acres
5 years for blocks in water depths less than 400 meters: 1,196 blocks
8 years for blocks in water depths of 400 to less than 800 meters: 127 blocks
10 years for blocks in water depths of 800 meters or deeper: 2,740 blocks
Minimum Bonus Bid Amount:
$25.00 per acre of fraction thereof for water depths less than 400 meters: 1,196 blocks
$37.50 per acre or fraction thereof for water depths 400 meters or deeper: 2,867 blocks
Rental/Minimum Royalty Rates:
$5.00 per acre or fraction thereof for water depths less than 200 meters: 1,107 blocks
$7.50 per acre or fraction thereof for water depths 400 meters or deeper: 2,956 blocks
16-2/3% royalty rate in water depths less than 400 meters: 1,196 blocks
12-1/2% royalty rate in water depths 400 meters or deeper: 2,867 blocks
Royalty Suspension Areas:
0 to less than 200 meters: 1,107 blocks
400 to less than 800 meters: 127 blocks
800 to less than 1600 meters: 195 blocks
1600 meters or deeper: 2,545 blocks