MMS Announces New OCS Cost Recovery Fees

The U.S. Department of Interior's Minerals Management Service has published in the Federal Register a final rule implementing new cost recovery fees related to the Regulation of Oil and Gas Activities on the Outer Continental Shelf (OCS).

The service fees will offset MMS's costs of processing certain plans, applications, and permits. The new service fees are listed in the attached table, along with existing service fees. MMS will issue a Notice to Lessees (NTL) detailing payment methods for both new and existing cost recovery fees before the effective date of the final rule. The final rule becomes effective September 1, 2006.

On November 14, 2005, MMS published a proposed rule in the Federal Register, seeking comment on the fees proposed to recover costs related to the regulation of oil and gas activities on the OCS. Comments on the proposed rule, a summary of changes to the proposed rule, and more details on the new fees can be found in the final rule.

Revenues collected under this final rule will be used by MMS to recover the actual costs of these activities, which are critical for oil and gas exploration and development, and for protecting the environment and promoting safety in the OCS. MMS anticipates that the new fees could result in $16.5 million in cost recovery for the agency. Federal agencies are authorized to recover costs of providing services to non-federal entities, such as industry, through provisions in the Independent Offices Appropriations Act of 1952 (IOAA) 31 U.S.C. 9701.

Download the List of Recovery Fees (PDF requires Adobe Acrobat)

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