Minerals Management Service May 2, 2007 – Federal Register Recent Federal Regulation Documents

The MMS has issued a proposed final program for 2007-2012. This is the third and final proposal for a new OCS oil and gas leasing program, following the February 2006 draft proposed program and August 2006 proposed program. A final EIS prepared in accordance with section 102(2)(C) of the National Environmental Policy Act has been issued along with the proposed final program. The proposed final program schedules 21 sales in 8 OCS planning areas8 sales in 4 Alaska planning areas, 12 sales in 3 Gulf of Mexico planning areas, and 1 sale in the Mid-Atlantic planning area. This includes 1 sale in the Eastern Gulf of Mexico as mandated by the Gulf of Mexico Energy Security Act of 2006 (P.L. 109-432, December 20, 2006). The proposed final program has been submitted to the President and Congress as required by section 18 of the OCS Lands Act. In accordance with section 18, the Secretary of the Interior may approve the new leasing program after a period of 60 days.

The MMS is promulgating new regulations to implement the provisions of the Energy Policy Act of 2005 (EPAct) governing the payment of royalty on geothermal resources produced from Federal leases and the payment of direct use fees in lieu of royalties. The EPAct provisions amend the Geothermal Steam Act of 1970 (GSA). The new regulations amend the current MMS geothermal royalty valuation regulations and simplify the royalty and direct use fee calculations for geothermal resources for leases issued under the EPAct and leases whose terms are modified under the EPAct. The new regulations also amend various related provisions in the MMS rules.