The Interior Department's Minerals Management Service (MMS) yesterday announced that it is shortening the lease terms for many offshore Gulf of Mexico oil and natural gas prospects. In a statement, MMS announced it would offer leases to energy companies in March, but that the leasing periods would be reduced from ten years to seven years for leases in depths of 800 to 1,600 meters. Three-year extensions could be made available to drillers who begin a well during the initial leasing term.
(Learn more about the leasing process with our interactive timeline.)
Similarly, leases in shallower water (400-800 meters) will last five years with possible three-year extensions. Leases in ultra-deep waters (greater than 1,600 meters) will have terms of ten years.
While it's good news that the March 17t... more »
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