NTL 1998-N17 - GUIDELINES FOR THE APPLICATION, REVIEW, APPROVAL, AND ADMINISTRATION OF ROYALTY RELIEF FOR END-OF-LIFE LEASES - November 1998

We issued final regulations (30 CFR Part 203) in January 1998 to implement the Outer Continental Shelf Deep Water Royalty Relief Act (Public Law 104-58 (DWRRA)). As part of that rule-making, we simplified and revised the way we implement authority the Secretary of the Interior has under 43 U.S.C. 1337(a)(3)(A) to reduce or eliminate royalties. This authority applies to oil and gas leases anywhere in the Federal Outer Continental Shelf (OCS). Leaseholders who have inadequate revenues to sustain production qualify for royalty relief if we determine that a modification in the royalty arrangement will result in recovery of additional resources.