MMS issues terms for Western Gulf Sale

The US Minerals Management Service Thursday issued the final notice of sale for Western Gulf of Mexico Sale 177, planned for Aug. 23 in New Orleans. The sale will offer 3,789 blocks totaling about 20.61 million acres off Texas and Louisiana. The tracts are 9-200 miles offshore in of 8 m to more than 3,000 m of water.


Washington, DC�The US Minerals Management Service Thursday issued the final notice of sale for Western Gulf of Mexico Sale 177, planned for Aug. 23 in New Orleans. The sale will offer 3,789 blocks totaling about 20.61 million acres off Texas and Louisiana. The tracts are 9-200 miles offshore in of 8 m to more than 3,000 m of water.

Of the blocks, 1,814 are in less than 400 m of water and will carry 16 2/3% royalty rates. Another 315 blocks in 400 to 800 m and 1,660 blocks in more than 800 m of water will have 12�% royalty rates.

MMS said more 2,152 blocks in more than 200 m of water will be eligible for royalty relief for consideration under provisions of the Deep Water Royalty Relief Act.

Sale 177 will be the 40th lease sale to offer western gulf tracts and the first western gulf sale to require the use of electronic funds transfer procedures for payment of the one-fifth bonus bids.

Current OCS lessees and operators may secure such payment using only a single bid form; others will be required to secure the electronic funds transfer by one of four additional methods.

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