November Gulf oil lease sale changing length at some depths

Posted 10/18/20

NEW ORLEANS (AP) — A federal oil lease sale in November will be the first in a decade to offer 10-year leases at some depths.

Since 2010, leases in depths of 800 to 1600 meters (about a …

To Our Valued Readers –

Visitors to our website will be limited to five stories per month unless they opt to subscribe.

For $5.99, less than 20 cents a day, subscribers will receive unlimited access to the website, including access to our Daily Independent e-edition, which features Arizona-specific journalism and items you can’t find in our community print products, such as weather reports, comics, crossword puzzles, advice columns and so much more six days a week.

Our commitment to balanced, fair reporting and local coverage provides insight and perspective not found anywhere else.

Your financial commitment will help to preserve the kind of honest journalism produced by our reporters and editors. We trust you agree that independent journalism is an essential component of our democracy. Please click here to subscribe.

Sincerely,
Charlene Bisson, Publisher, Independent Newsmedia

Please log in to continue

Log in
I am anchor

November Gulf oil lease sale changing length at some depths

Posted

NEW ORLEANS (AP) — A federal oil lease sale in November will be the first in a decade to offer 10-year leases at some depths.

Since 2010, leases in depths of 800 to 1600 meters (about a half-mile to nearly a mile) have run for seven years, with a three-year extension available for companies that have started a well on their lease.

“After a careful analysis of the past 10 years’ data, ... BOEM is reverting to offering the 10-year primary term in these specific water depths,” the Bureau of Offshore Energy Management said in a news release Thursday. Leases in deeper waters remain at 10 years. In shallower waters, the are for five years, with a three-year extension for companies that start a well within those first five years.

The agency is offering about 78 million acres (31.6 million hectares) in water from nine feet to more than 11,115 feet (three meters to 3,400 meters).

Like all sales since August 2016, the sale on Nov. 18 will be livestreamed, Bids will be read publicly.

The in March, offered about the same acreage and got bids on about 0.5% of the total.

Comments