NOIA and five other industry associations comment on MMS’ Proposed Rule on Deep Gas

NOIA today submitted comments to the Minerals Management Service (MMS) in response to their request for comments on a proposed rulemaking.  In the summary of those comments, NOIA argued that:


"The proposed rulemaking implementing sections 344 and 346 of the Energy Policy Act of 2005 (EPACT) would modify the current deep gas royalty relief regulations.  The current regulations provide royalty suspension volumes of 15 and 25 billion cubic feet (BCF) for new wells drilled and completed at depths exceeding 15,000 and 18,000 feet respectively, in water depths of less than 200 meters.  The proposed rule would extend the relief to leases in waters up to 400 meters deep, and would add a third tier of royalty relief providing a suspension volume of 35 BCF for new wells drilled and completed at 20,000 feet or deeper.  In addition, the proposal would extend discretionary royalty relief to leases in the Alaska OCS region."


The NOIA comments were submitted with the additional support of the American Exploration & Production Council, the Independent Petroleum Association of America, the International Association of Drilling Contractors, the Natural Gas Supply Association, and the US Oil & Gas Association.


To read the full text of the comments, click here.

National Ocean Industries Association
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