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Enron Mail |
You might find this interesting:
=09November 29, 2000 =09=09 Announcing Initiatives to Increase Domestic Energy Production The Director of the Minerals Management Service, Walt Rosenbusch, announced= =20 today several initiatives to increase domestic natural gas and oil producti= on=20 to meet the nation=01,s energy needs. These initiatives are proposed for th= e=20 next offshore oil and gas lease sale in the Central Gulf of Mexico schedule= d=20 for March 28, 2001. The announcement came as part of the issuance of a=20 proposed notice of sale for Sale 178 in today=01,s Federal Register. MMS designed two of these initiatives specifically to spur domestic natural= =20 gas production during the years 2004-2006. Director Rosenbusch called the= =20 changes "strong initiatives on the part of the MMS to deal with the large= =20 projected increase in gas demand for the nation. Several studies, including= =20 the report issued by the National Petroleum Council, indicate that the=20 nation's demand for natural gas will grow from the current 22 trillion cubi= c=20 feet (TCF) of gas to 29 TCF of gas in 2010. These initiatives may contribut= e=20 additional gas production, in the range of 500 billion to 1 TCF per year in= =20 the period 2004 to 2006." Rosenbusch noted that "there are predictions of serious shortages of natura= l=20 gas this winter, including the northeast U.S. There have already been sever= al=20 brownouts across the country this year because of the demands on electrical= =20 production." Included in the proposed notice are two initiatives for increasing natural= =20 gas production: ? An incentive to drill for deep gas deposits located in the shallow-water= =20 shelf area of the Gulf of Mexico by providing for royalty suspension for th= e=20 first 20 billion cubic feet (Bcf) of production from a well drilled below= =20 15,000 feet sea level.=20 ? An incentive to drill for natural gas below the thick subsalt domes. MMS= =20 proposes that lessees obtain a 2-year extension of the 5-year primary lease= =20 term when an operator has drilled a first subsalt well and needs additional= =20 time to image the subsurface data to determine the appropriate next drillin= g=20 target. This will avoid premature lease expiration and the consequent delay= =20 in exploration.=20 In addition, MMS proposes modified initiatives for deep water royalty relie= f: ? An incentive to keep exploring and developing oil and gas deposits in the= =20 ultra deepwater areas to replace the expiring provisions of the 1995=20 Deepwater Royalty Relief Act. A royalty suspension volume of nine million= =20 barrels of oil equivalent (BOE) is proposed for water depths from 800 meter= s=20 to 1,599 meters, and a royalty suspension volume of the first 12 million BO= E=20 in water depths equal to or greater than 1,600 meters.=20 ? An opportunity to apply for additional "discretionary" royalty relief,=20 pursuant to new proposed rulemaking, if certain conditions are satisfied.= =20 MMS will conduct public workshops to discuss the new provisions announced i= n=20 the proposed notice of sale, as well as provisions of the proposed rule (65= =20 FR 69259 published November 16), regarding discretionary royalty relief for= =20 leases in water depths of 200 meters and greater. Details about the worksho= ps=20 that will be held this December in New Orleans and Houston will be released= =20 today. Proposed Sale 178 encompasses about 4,366 available blocks in the Central= =20 Gulf of Mexico Outer Continental Shelf planning area offshore Louisiana,=20 Mississippi, and Alabama. This area covers about 23.07 million acres. Block= s=20 in this sale are located from three to 200 miles offshore in water depths= =20 ranging from four to more than 3,425 meters. Estimates of undiscovered=20 economically recoverable hydrocarbons expected to be discovered and produce= d=20 as a result of this sale proposal range from 150 to 440 million barrels of= =20 oil and 1.53 to 4.39 TCF of natural gas. MMS is the federal agency that manages the nation's natural gas, oil and=20 other mineral resources on the Outer Continental Shelf. The agency also=20 collects, accounts for and disburses over $5 billion per year in revenues= =20 from federal offshore mineral leases and from onshore mineral leases on=20 federal and Indian lands. Maurice
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