Department of the Interior, Minerals Management Service: Oil and Gas and Sulphur Operations in the Outer Continental Shelf--Relief or Reduction in Royalty Rates--Deep Gas Provisions
GAO-04-543R: Mar 16, 2004
- Full Report:
GAO reviewed the Department of the Interior, Minerals Management Service's (MMS) new rule on oil and gas and sulphur operations in the Outer Continental Shelf. GAO found that (1) the rule would provide temporary incentives in the form of royalty suspension volumes for producing gas from certain deep wells, provide a royalty suspension supplement for drilling certain unsuccessful deep wells, and provide price thresholds that may result in discontinuation of the royalty relief; and (2) MMS complied with all applicable requirements in promulgating the rule with the exception of the delay in the effective date.