New decommissioning requirements will lower Gulf of Mexico production

Mark J. KaiserYunke YuCenter for Energy StudiesLouisiana State UniversityBaton RougeThe US Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE), formerly known as the Minerals Management Service, issued new guidelines and measures in the form of Notice to Lessees 2010-G05 on Sept. 15 for decommissioning idle wells and structures on active leases on the Gulf of Mexico Outer Continental Shelf (OCS).NTL 2010-G05 dissolves the lease boundary in determining decommissioning time lines and redefines the regulatory requirements at the individual wellbore and structure level by specifying the maximum number of years wells and structures are allowed to remain idle before they hav...

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