NTL 2002-N07 - Reminder of the 20 Percent Set-Aside Provision for Small or Independent Refiners - July 19, 2002

Under Section (b)(7) of 43 U.S.C 1337 (Section 8(b)(7) of the OCS Lands Act, as amended), each offshore lease issued after September 18, 1978, has a 20 percent small refiner offer provision. Under this provision, lessees must offer small or independent refiners 20 percent of the crude oil, condensate, and natural gas liquids produced on each lease, at the market value and point of delivery applicable to Federal royalty oil. This 20 percent set aside is in addition to the amounts available under the Federal royalty oil program.