WATCHING WASHINGTON MMS CHANGING OF THE GUARD
With Patrick Crow The outgoing Bush administration is proceeding with plans to redefine deepwater for U.S. Outer Continental Shelf royalty purposes. The redefinition to 400 m of water will effectively cut the Minerals Management Service's royalty rate on production in 200-400 m of water to 12.5% from 16% (OGJ, Nov. 2, p. 38). The agency currently collects a 16% royalty on production from water depths of 200-400 m of water and 12.5% on production in water deeper than 400 m.