The Trump administration's first offshore lease sale offered 75.9 million acres in the Gulf of Mexico. The sale, held in August, was the first of the administration's 2017-22 National Outer Continental Shelf (OCS) Oil and Gas Leasing Program.
The Bureau of Ocean Energy Management (BOEM) included appropriate fiscal terms that took into account market conditions and ensured taxpayers received a fair return for use of the OCS. These terms included a 12.5-percent royalty rate for leases in less than 200 meters of water depth and a royalty rate of 18.75 percent for all other leases issued pursuant to the sale.
The 12.5-percent royalty rate for leases in less than 200 meters was lower than the proposed 18.75- percent royalty rate for shallow water leases that BOEM published in the Proposed Notice of Sale. The purpose of this change was to adjust the royalty rate to reflect recent market conditions, thereby encouraging competition and continuing to receive a fair and equitable return on oil and gas resources.
For more information, visit www.boem.gov or call (800) 200-4853.
