OGJ Newsletter

01/02/2006
General Interest - Quick TakesMMS okays suspensions for ultradeep wellsThe US Minerals Management Service has issued a final rule that will allow suspensions of operation (SOOs) to oil and gas operators contemplating ultradeep wells (deeper than 25,000 ft TVD) in the Gulf of Mexico.A SOO temporarily suspends time counted toward lease expiration for companies needing more time for data analysis prior to drilling.MMS officials said the availability of SOOs might increase US production by accommodating the complexity and cost of drilling ultradeep wells.MMS’s final rule grants SOOs under the following circumstances:• The lease has either a 5-year or 8-year primary term with a re...
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