MMS issues western gulf Lease Sale 192 final notice, revisions

July 15, 2004
US Minerals Management Service (MMS) issued a final notice and revisions June 29 for its Lease Sale 192, slated for Aug. 18 in New Orleans. The oil and gas lease sale encompasses 3,907 blocks on 21.2 million acres of federal land in the western Gulf of Mexico off Texas and Louisiana (OGJ Online, Mar. 30, 2004).

By OGJ editors

HOUSTON, July 15 -- US Minerals Management Service (MMS) issued a final notice and revisions June 29 for its Lease Sale 192, slated for Aug. 18 in New Orleans. The oil and gas lease sale encompasses 3,907 blocks on 21.2 million acres of federal land in the western Gulf of Mexico off Texas and Louisiana (OGJ Online, Mar. 30, 2004).

Among changes to the original Mar. 25 notice were new deepwater royalty suspension price thresholds of $39/bbl for oil and $6.50/MMbtu for gas; a revision of the shallow water deep gas royalty suspension provisions; and required compliance with the Department of the Interior's nonprocurement debarment and suspension requirements in 43 CFR, part 42, subpart C, as well as like compliance by the lease-related business partners of successful bidders.

In other changes, MMS increased to $37.50/acre from $25/acre the minimum bonus bid amount for tracts in water 400-799 m deep; made Mustang Island blocks 793, 799, and 816 available for leasing with specified operations restrictions; and included conditions pursuant to avoiding adverse impacts to federally protected species.

In addition, each bidder must submit a geophysical data and information statement identifying processed or reprocessed pre- and post-stack depth migrated geophysical data used in evaluating each block upon which the company is bidding.

Initial period of the leases are 5 years for blocks in water less than 400 m deep, 8 years for blocks in water 400-799 m deep, and 10 years for blocks in water 800 m or deeper.

Complete sale notice packages are available from the MMS Gulf of Mexico Region, phone (800) 200-GULF or (504) 736-2519.