The Center, founded in 1985, is an environmental organization dedicated to protecting the environment, enhancing human, animal and plant ecologies, promoting the efficient use of natural resources and expanding participation in the environmental movement.
Thursday, August 21, 2008
Offshore Oil & Gas Lease Sales and Royalty Rates
Currently there are more than 7,000 leases in the Gulf Outer Continental Shelf that account for 27 percent of the Nation’s domestically produced oil and 15 percent of the domestically produced natural gas. More than 30,000 jobs are directly related to Gulf energy exploration and production. The areas under a congressional ban contain an additional 18 billion barrels of oil and 76 trillion cubic feet of natural gas in yet-to-be-discovered fields.
Interior's Minerals Management Service, which oversees offshore leasing, has raised the rate for leases in two March 2008 gulf sales to 18.75 percent. The move comes roughly nine months after MMS announced that the royalty rate for new deepwater leases would be increased from 12.5 percent to 16.7 percent. Alabama, Mississippi, Louisiana and Texas will share 37.5 percent of the revenues from leases in this sale.