42 USC 15904 - Incentives for natural gas production from deep wells in the shallow waters of the Gulf of Mexico

View all text of Part A [§ 15901 - § 15912]

§ 15904. Incentives for natural gas production from deep wells in the shallow waters of the Gulf of Mexico

(a) Royalty incentive regulations for ultra deep gas wells

(1) In general

(2) Suspension volumes

The Secretary may grant suspension volumes of not less than 35 billion cubic feet in any case in which—

(A) the ultra deep well is a sidetrack; or

(B) the lease has previously produced from wells with a perforated interval the top of which is at least 15,000 feet true vertical depth below the datum at mean sea level.

(3) Definitions

In this subsection:

(A) Ultra deep well

(B) Sidetrack

(i) In general

(ii) Inclusion

The term “sidetrack” includes—

(I) drilling a well from a platform slot reclaimed from a previously drilled well;(II) re-entering and deepening a previously drilled well; and(III) a bypass from a sidetrack, including drilling around material blocking a hole or drilling to straighten a crooked hole.

(b) Royalty incentive regulations for deep gas wells

(Pub. L. 109–58, title III, § 344, Aug. 8, 2005, 119 Stat. 702.)