MMS plans gas drilling initiatives for 2001 Central Gulf sale
In a bid to boost offshore exploration, the US Minerals Management Service is proposing natural gas drilling incentives for the next federal lease sale in the Gulf of Mexico that could increase domestic gas production by 1 tcf within 6 years. Among other moves, MMS proposes to suspend royalty payments on the first 20 bcf of gas produced from deep wells drilled 15,000 feet below sea level in the gas-prone shallow-water shelf area of the gulf.