BSEE commitment to produce requirement for suspension upheld

The US Bureau of Safety and Environmental Enforcement issued a notice to lessees noting that the US Department of the Interior’s Office of Hearings and Appeals recently upheld BSEE’s requirement for a producer to demonstrate a commitment to produce in order to be eligible for a lease suspension.

Suspensions can be granted to oil and gas leaseholders on the US Outer Continental Shelf to extend a lease past its usual 5, 8 or 10-year term, depending on its water depth, the DOI agency noted.

“The OHA decision highlighted in this NTL underscores the need for lessees to take concrete steps to develop their holdings in a manner that is consistent with the terms of their lease agreements,” BSEE Interim Director Michael R. Bromwich said.

Contact Nick Snow at [email protected].