MMS Central GOM Lease Sale 208 Offers 181 South Area

Rig Zone ^ | October 07, 2008 | Minerals Management Service

[thackney]

The Department of the Interior’s Minerals Management Service (MMS) has proposed that oil and gas Lease Sale 208 for the Central Gulf of Mexico Planning Area be held March 18, 2009. The Notice of Availability of the Proposed Notice of Sale (PNOS) was published in the Federal Register on Friday, October 3.

The proposed sale encompasses approximately 6,200 unleased blocks covering more than 33.5 million acres offshore Louisiana, Mississippi, and Alabama. This area includes 5.8 million acres, known as the 181 South Area, that will be offered for lease for the first time since 1988.

"What makes Sale 208 noteworthy is the addition of the 181 South Area," said MMS Director Randall Luthi. "The states of Alabama, Mississippi, Louisiana, and Texas will share in all revenue from leases in this new area."

The Gulf of Mexico Energy Security Act of 2006 mandated that the 181 South Area, approximately 5.8 million acres located in the southeastern part of the Central Planning Area, be offered for lease, and that the four Gulf producing states share in the revenues.

MMS estimates that the proposed lease sale could result in production of approximately 0.807 to 1.336 billion barrels of oil and 3.365 to 5.405 trillion cubic feet of natural gas. The acreage is located from three to 230 miles offshore in water depths of about 10 feet (three meters) to more than 11,200 feet (3,400 meters).

Terms and conditions for Central Sale 208 are detailed in the PNOS information package on the MMS Website at http://www.gomr.mms.gov/homepg/lsesale/208/cgom208.html. Copies can be requested from the MMS Gulf of Mexico Region's Public Information Unit, 1201 Elmwood Park Boulevard, New Orleans, LA 70123, phone (504) 736-2519, toll free 1-800-200-GULF.

[thackney]

[thackney]

Royalty rates for this area are set at 18.75%

http://www.gomr.mms.gov/homepg/lsesale/208/pnos208.pdf

[RSmithOpt]

So, why no Atlantic, Pacific, and Eastern Planning areas leases going up for bid now? The stupid goobermint is up to its eyeballs in debt.

[thackney]

Because there are a lot of steps that have to be completed before that can happen. In anticipation of the drilling ban expiring, the MMS started the process earlier this year.

From: http://www.mms.gov/5-year/FrequentlyAskedQuestions.htm

[RSmithOpt]

Thanks, Thackney. Basically, I knew that those in government have to justify their job importance, therefore, the needed 'red tape' process.

IMHO, unless new (short track record) drilling / offloading techniques / platform design, etc. are to be used in that lease area by a company, then, the process should be much more streamlined.

This is the very thing that stagnates our economy.

Too many government agency fingers in the pie.

[thackney]

That chart above just gets us to the lease sale. Many years after that to have oil flowing to the market.

[RSmithOpt]

I know, I know...no need to drag a multi-billion rig out to drill a dry hole.

[Tolerance Sucks Rocks]

Center for Biological Diversity polar bear lawsuit coming in 3...2...1...

[Tolerance Sucks Rocks]

Why in the world are EIS’s needed for this process. I thought we had the world’s most environmentally sensitive drilling technology. Are the bureaucrats afraid that they’ll find cultural artifacts from Atlantis in the lease area or something?

[thackney]

If you want to get a feel for how involved these EIS are, take a look at the current one.

2007-2012 Final Environmental Impact Statement
http://www.mms.gov/5-year/2007-2012_FEIS.htm