NTL 2006-G01 - Royalty Relief for Gulf of Mexico OCS Oil and Gas Leases with Facilities Damaged by Hurricane Katrina or Hurricane Rita - February 1, 2006

Minerals Management Service (MMS) is offering a royalty relief program for hurricane projects in the Gulf of Mexico OCS pursuant to 30 CFR 203.1. To expedite the application review process, MMS will assume the pre-qualification requirements stated at 30 CFR 203.80 are met by applicants making requests under this initiative. Applications will be considered if the approval of royalty relief would meet the objective of the endof-life program (see 30 CFR 203.51, 203.83 and 203.84). End-of-life program guidelines for processing applications have been modified to accommodate characteristics unique to hurricane projects. This NTL provides guidance for preparing a complete application. "Hurricane project" is defined as a proposal to correct damage caused by Hurricane Katrina or Hurricane Rita. A project may consist of wells, platforms, pipelines, or other structures which were producing or capable of producing before the hurricane from one or more oil and gas reservoirs, located on one or more leases. The incentive is intended to encourage the production of marginal oil and gas reserves that are shut in due to hurricane damage, and for which resumption of production would not be economical in the absence of royalty relief.