Economics: Deep Water Royalty Relief
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    Marshall Rose

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   Economics
 

Deep Water Royalty Relief

Deep water royalty relief can be provided through regulations, individual lease terms, and applications for case-by-case relief. Leases issued in Gulf of Mexico Region (GOMR) sales held prior to passage of the Deepwater Royalty Relief Act of 1995 (DWRRA) in water depths 200 meters or deeper that lie wholly west of 87 degrees, 30 minutes West longitude are called “Pre-Act” leases. Pre-Act leases may submit an application that demonstrates economic need to be considered for case-by-case relief. Leases issued in GOMR sales held in years 1996 through 2000, in water depths 200 meters or deeper that lie wholly west of 87 degrees, 30 minutes West longitude were granted categorical relief under the DWRRA. Leases issued in GOMR sales held since 2000 may be issued with a designated royalty suspension volume (RSV). Both the Lease Instrument and Final Notice of Sale specify applicable water depth categories and associated RSVs. All Post-2000 leases in water depths 200 meters or deeper are also eligible to apply for case-by-case relief. Following are the guidelines and regulations that apply to deep water royalty relief.

Blue Bullet  Deep Water Royalty Relief Act (35.36 KB PDF; 11/28/95)

Blue Bullet  Advanced Notice of Proposed Rulemaking (AC13; 33.54 KB PDF; 2/23/96)

 

Categorical Relief

 

Blue Bullet  Royalty Relief for Deepwater OCS Oil and Gas Leases – Conforming Regulations to Court Decision
      (AD29 Final Rule;  243.10 KB PDF; 10/7/08)
 

Blue Bullet  OCS Oil and Gas Leasing (AC69 Final Rule; 138.23 KB PDF; 2/23/01)
 

Blue Bullet  OCS Oil and Gas Leasing (AC69 Proposed Rule; 187.98 KB PDF; 9/14/00)
 

Blue Bullet  Royalty Relief for New Leases in Deep Water (AC14 Final Rule; 55.34 KB PDF; 1/16/98)
 

Blue Bullet  Deepwater Royalty Relief for New Leases (AC14 Interim Rule; 47.70 KB PDF; 3/25/96)
 

Blue Bullet  OTC Paper on Final DWRRA Royalty Relief Rule (110.76; KB PDF)

 Case-by-Case Relief

 

Blue Bullet  Guidelines for Case-by-Case Relief (4.87 MB; 2/14/02)

Blue Bullet  Relief or Reduction in Royalty Rates – Deep Water Royalty Relief for OCS Oil and Gas Leases
      Issued After 2000 (AC71 Final Rule; 114.13 KB PDF; 1/15/02)
 

Blue Bullet  Relief or Reduction in Royalty Rates – Deep Water Royalty Relief for OCS Oil and Gas Leases
      Issued After 2000 (AC71 Proposed Rule; 183.58; KB PDF; 11/16/00)
 

Blue Bullet  Royalty Relief for Producing Leases and Certain Existing Leases in Deep Water (AC13 Final Rule;
       132.78 KB PDF; 1/16/98)
 

Blue Bullet  Royalty Relief for Producing Leases and Certain Existing Leases in Deep Water (AC13 Interim Rule;
        105.23 KB PDF; 5/31/96)

     

RSVP


Version 2.14 of RSVP was released effective November 10, 1999. This version incorporates the economic parameters of November 1, 1999 and features enhancements to the discounting algorithms.

 

Blue Bullet  RSVP Version 2.14 Spreadsheet (627 KB xls)
 Blue Bullet  RSVP Version 2.14 Example (654 KB xls)
 Blue Bullet  RSVP Documentation (655.19 KB PDF)
 Blue Bullet  RSVP Documentation Addendum (11.34 KB PDF)
 Blue Bullet  RSVP Original Economic Assumptions
 Blue Bullet  Most Recent Parameter Updates (22.25 KB PDF)

Last Updated: 11/12/2009, 02:58 PM Central Time