U.S. Department of the Interior
Minerals Management Service
Office of Communications

NEWS RELEASE

        The U. S. Department of the Interior’s Minerals Management Service (MMS) published the Final Notice of Sale for Central Gulf of Mexico (GOM) Sale 175 in today’s Federal Register. The lease sale will be held March 15, 2000, at the Hyatt Regency Hotel, 500 Poydras Plaza, New Orleans, Louisiana.

        "This the 57^th lease sale in the Central Gulf of Mexico and I am optimistic about the expected results. While last year’s Central Gulf sale received a relatively low number of bids, it was within our expectations. We are hopeful that this year’s sale will be stronger, resulting in adding more dollars to the U.S. Treasury," commented MMS Director Walt Rosenbusch.

        The final Notice of Sale covers 4,203 available blocks encompassing about 22.29 million acres in the Central GOM Outer Continental Shelf (OCS) Planning Area offshore Louisiana, Mississippi, and Alabama. Blocks in this sale are located from three to 200 miles offshore in water depths ranging from four to more than 3,425 meters.

        The MMS now requires the use electronic funds transfer (EFT) procedures for payment of the 1/5th bonus bid. While EFT payments were optional in the past, the majority of bidders utilized the benefits of EFT in the past several sales. Current OCS lessees and operators may secure such payment using only a single bid form; others will be required to secure the EFT payment by any one of four additional methods. Procedures for the use of EFT are included in the Sale Notice Package and are available on the MMS Homepage or from the GOMR Public Information Unit.

        The MMS is the Federal agency that manages the Nation’s oil, natural gas, and other mineral resources on the OCS; and collects, accounts for, and disburses about $4 billion in yearly revenues from offshore Federal mineral leases and from onshore mineral leases on Federal and American Indian lands.

Editor’s Note: Related statistical data can be found on the MMS website, at

http://www.gomr.mms.gov/homepg/lsesale/lsesale.html. Many of the maps and official protraction diagrams related to Sale175 have recently been updated and are now available in digital format.

Size:

4,203 unleased blocks; 22.29 million acres

Primary Lease Terms:

5 Year - 1,218 Blocks - Water depths less than 400 meters

8 Year - 125 Blocks - Water depths between 400 meters and 800 meters

10 Year- 2,860 Blocks - Water depths 800 meters or deeper

Royalty Rates:

12 1/2% Royalty - 2,985 Blocks - Water depths 400 meters or deeper

16 2/3% Royalty - 1,218 Blocks - Water depths less than 400 meters

Royalty Suspension Areas:

200 - 400 Meter Royalty Suspension Area - 65 Blocks

400 - 800 Meter Royalty Suspension Area - 125 Blocks

800 Meter and Greater Royalty Suspension Area - 2,860 Blocks

Minimum Bid:

$25.00 per acre or fraction thereof - Water depths less than 800 meters - 1,343 Blocks

$37.50 per acre or fraction thereof - Water depths 800 meters or deeper - 2,860 Blocks

Annual Rental Rates:

$5.00 per acre or fraction thereof - Water depths less than 200 meters - 1,153 Blocks

$7.00 per acre or fraction thereof - Water depths 200 meters or deeper - 3,050 Blocks

-MMS-

MMS Internet website address: http://www.mms.gov
24 hour Fax-on-Demand Service:(202) 219-1703