NOIA Applauds Lower Shallow Water Royalty Rate for Upcoming Gulf of Mexico Lease Sale

For Immediate Release: Friday, July 7, 2017
Contact: Nicolette Nye, (202) 465-8463,

NOIA Applauds Lower Shallow Water Royalty Rate for Upcoming Gulf of Mexico Lease Sale

 Washington, D.C. – National Ocean Industries Association (NOIA) President Randall Luthi issued the following statement applauding BOEM’s decision to lower the shallow water royalty rate for Gulf of Mexico Lease Sale 249:

 “NOIA applauds the Bureau of Ocean Energy Management’s decision to set the royalty rate at 12.5% for shallow water leases in next month’s Gulf of Mexico (GOM) oil and gas lease sale.  This common-sense decision makes the royalty rate for shallow water leases consistent with the Federal onshore royalty rate and demonstrates genuine interest in attracting operators to the GOM shelf.  The Trump Administration continues to keep its promises regarding the promotion and active encouragement of an ‘all the above’ energy policy.

“BOEM’s decision to lower the shallow water royalty rate for the August sale will provide a welcome financial incentive to hard hit operators on the GOM shelf. Extended low commodity prices and increased regulatory burden over the past few years have rendered exploration in shallow waters nearly extinct.  Operators can now calculate a lower royalty rate as they prepare their bids, and we think this will generate more interest in the upcoming sale.  The move is a good deal for the U.S. taxpayer, because the alternative would be fewer leases sold and fewer resources developed.  A 12.5% royalty rate is far better than a 0% royalty rate, which is what the government receives if there are no bids.”


NOIA is the only national trade association representing all segments of the offshore industry with an interest in the exploration and production of both traditional and renewable energy resources on the nation’s outer continental shelf.  NOIA’s mission is to secure reliable access and a fair regulatory and economic environment for the companies that develop the nation’s valuable offshore energy resources in an environmentally responsible manner. The NOIA membership comprises nearly 300 companies engaged in business activities ranging from producing to drilling, engineering to marine and air transport, offshore construction to equipment manufacture and supply, telecommunications to finance and insurance, and renewable energy.

National Ocean Industries Association
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