42 USC 15905 – Royalty relief for deep water production
(a) In general
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) Suspension of royalties
Terms Used In 42 USC 15905
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
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) Limitation
The Secretary may place limitations on royalty relief granted under this section based on market price.