Minerals Management Service February 1, 2008 – Federal Register Recent Federal Regulation Documents

Bonus or Royalty Credits for Relinquishing Certain Leases Offshore Florida
Document Number: E8-1860
Type: Proposed Rule
Date: 2008-02-01
Agency: Department of the Interior, Minerals Management Service
The MMS proposes to amend its regulations for oil and gas leases on the Outer Continental Shelf to implement a mandate in the Gulf of Mexico Energy Security Act of 2006. This proposed rule would (1) provide a credit to lessees who relinquish certain eligible leases in the Gulf of Mexico; (2) define eligible leases as those within 125 miles of the Florida coast in the Eastern Planning Area and certain leases within 100 miles of the Florida coast in the Central Planning Area; and (3) allow lessees to use the credits in lieu of monetary payment for either a lease bonus bid or royalty due on oil and gas production from most other leases in the Gulf of Mexico or to transfer the credits to other Gulf of Mexico lessees for their use.