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Deep Gas in Shallow Water

Over the previous several years there had been steep decline in natural gas production from the shallower water in the Gulf of Mexico OCS.  Beginning in the year 2001 MMS adopted some incentives for new leases that would encourage drilling for deeper deposits of natural gas in the shallow waters.  MMS offered incentives of royalty relief for drilling below 15,000 TVD.  On January  26, 2004 MMS published a new incentive for existing leases.

Final Rule

• Amended Deep Gas Royalty Relief Regulations  (November 18, 2008)

Supporting Documents

• Correction to the Deep Gas in Shallow Water Final Rule - Technical Amendments  (Federal Register Notice)
• Deep Gas in Shallow Water Rule - Technical Amendments  (Federal Register Notice)
• Relief or Reduction in Royalty Under Certain Federal Oil and Gas Leases on the Outer Continental Shelf  (Federal Register Notice)  
• Rocky Mountain Mineral Law Foundation Paper - Deep Gas Royalty Relief (Final Rule)
• Slide Presentation - Deep Gas Royalty Relief (Final Rule)
• Oil and Gas and Sulphur Operations in the Outer Continental Shelf—Relief or Reduction in Royalty Rates—Deep Gas Provisions - 30 CFR Part 203, January 26, 2004

News Releases and Fact Sheets

• MMS Releases Summary of Lower Tertiary Play in Gulf  October 10, 2006
• Text of Secretary Norton's Press Conference  January 23, 2004
• Secretary Norton Unveils New Incentives to Boost Domestic Natural Gas Production, Save Americans $570 Million a Year  January 23, 2004
• Deep Shelf Gas May Be More Abundant in Gulf than Earlier Forecast Probabilistic Estimate Increases by 175%  November 19, 2003
• Americans Stung by High Fuel Prices: Government Expert Cites Offshore Natural Gas as Potential Solution , September 17, 2003

• Gulf of Mexico OCS Deep Shelf Gas Update:  2001-2002 - OCS Report MMS 2003-026
• Deep Gas Royalty Relief Provisions Workshop
• The Promise of Deep Gas in the Gulf of Mexico - OCS Report MMS 2001-037