MMS proposes rule changes for pipeline rights-of-way, rights-of-use

April 28, 2003
The US Minerals Management Service has proposed a rule on pipeline rights-of-way, rights-of-use, and easements for oil and natural gas operations in the Outer Continental Shelf.

By OGJ editors

HOUSTON, Apr. 28 -- The US Minerals Management Service has proposed a rule on pipeline rights-of-way, rights-of-use, and easements for oil and natural gas operations in the Outer Continental Shelf.

Lessees would have to pay a rental fee when obtaining an easement, and pipeline right-of-way holders would have to pay more to obtain use of an area for purposes associated with pipelines. The rental charge for each of these would depend on the acreage involved.

When a company requires use of an area for a platform in connection with a pipeline or requires the use of an off-lease area for purposes related to lease operations, the company may obtain use of the area. Currently, there is no charge for a right-of-use and easement, and the charge for an area associated with a pipeline right-of-way is a flat fee.

Deepwater operations have created situations where companies request the use of several square miles for purposes related to a lease or a pipeline. MMS manages the nation's oil, natural gas, and other mineral resources on the Outer Continental Shelf in federal waters.