NTL 2004-G03 - Notification and Confirmation of Deep Gas Royalty Relief - February 6, 2004

Beginning in 2001, shallow-water (less than 200 meters) leases in the Central and Western Gulf of Mexico were issued with royalty suspension provisions for deep gas production. For a lease to earn a royalty suspension volume of 20 BCF of deep gas production, a well must be drilled to and completed in a new deep gas reservoir with production commencing within the first 5 years of the life of the lease. Deep gas is defined as any gas production from a completion with the top of the perforated interval 15,000 feet or greater TVD subsea.