§15905 — Title 42 The Public Health and Welfare | U.S. Code

Summary

Oil and gas lease sales in the Western and Central Planning Areas of the Gulf of Mexico, and the part of the Eastern Planning Area west of 87°30′ West longitude, that are in water deeper than 400 meters must use the bidding system in section 8(a)(1)(H) for any sale held in the five-year period starting August 8, 2005. The law sets minimum royalty suspension amounts per lease by water depth: 5,000,000 barrels oil equivalent for 400–800 m; 9,000,000 for 800–1,600 m; 12,000,000 for 1,600–2,000 m; and 16,000,000 for deeper than 2,000 m. The Secretary may limit the relief based on market price.

Title 42, §15905

The Public Health and Welfare — Source: USLM XML via OLRC

(a)Subject to subsections (b) and (c), for each tract located in water depths of greater than 400 meters in the Western and Central Planning Area of the Gulf of Mexico (including the portion of the Eastern Planning Area of the Gulf of Mexico encompassing whole lease blocks lying west of 87 degrees, 30 minutes West longitude), any oil or gas lease sale under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) occurring during the 5-year period beginning on August 8, 2005, shall use the bidding system authorized under section 8(a)(1)(H) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(1)(H)).

(b)The suspension of royalties under subsection (a) shall be established at a volume of not less than—

(1)5,000,000 barrels of oil equivalent for each lease in water depths of 400 to 800 meters;

(2)9,000,000 barrels of oil equivalent for each lease in water depths of 800 to 1,600 meters;

(3)12,000,000 barrels of oil equivalent for each lease in water depths of 1,600 to 2,000 meters; and

(4)16,000,000 barrels of oil equivalent for each lease in water depths greater than 2,000 meters.

(c)The Secretary may place limitations on royalty relief granted under this section based on market price.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Outer Continental Shelf Lands Act, referred to in subsec. (a), is act Aug. 7, 1953, ch. 345, 67 Stat. 462, which is classified generally to subchapter III (§ 1331 et seq.) of chapter 29 of Title 43, Public Lands. For complete classification of this Act to the Code, see

Short Title

note set out under section 1301 of Title 43 and Tables.

§15905 Royalty relief for deep water production