The US Minerals Management Service plans to expand its Gulf of Mexico Outer Continental Shelf royalty in-kind (RIK) pilot program this spring.
MMS is testing methods of taking its natural gas royalty in production rather than cash.
It will offer about 200 MMcfd of royalty gas from leases connected to two additional pipeline systems, Bluewater and Sea Robin systems. The gas will be offered for cash sale to the highest bidder at or near the lease.
It also plans to reoffer 265 MMcfgd from leases connected to the Stingray, Pelican, High Island Offshore, and Transco North High Island systems. It has been swapping federal gas from those leases under contracts that expire Mar. 31.
The gas will continue to be traded for onshore gas delivered to the General Services Administration for use at federal buildings.
MMS has posted a tentative list of leases considered for the expanded sale on its web page. It said last week it would post an invitation for bids about Jan. 21.
