Over the last several years there has been steep decline in natural gas
production from the shallower water in the Gulf of Mexico OCS.
Beginning in the
year 2001 MMS adopted some incentives for new leases that would encourage
drilling for deeper deposits of natural gas in the shallow waters.
MMS offered
incentives of royalty relief for drilling below 15,000 TVD. On
January 26, 2004
MMS published a new incentive for existing leases.
In August 2005, Congress passed the Energy Policy Act.
It contained provisions providing for more royalty relief to encourage deep gas
production. The regulations implementing these provisions were published
on November 18, 2008.
