Royalty exemption for new shallow-water Gulf wells
NEW ORLEANS (AP) - The federal agencies that make and enforce offshore oil and gas leases say they’ll encourage new wells in shallow Gulf of Mexico waters by allowing some reduced-royalty or even royalty-free production if owners can prove they need it.
Officials say $20 billion worth of oil and gas may go untapped without changes described in a report issued Tuesday. They call for a bigger break for shallow-water wells than for those in more than 200 meters (656 feet) of water.
An enforcement agency spokeswoman says they take effect immediately.
The Center for American Progress and an environmental group call it a giveaway.
Recent shallow-water leases have royalties of 12.5 percent, the legal minimum.
Desktop NewsClick to open Continuous News in a sidebar that updates in real-time.
Harvey Adger, head basketball coach at Glen Oaks, notches 900th victory
Baton Rouge 10-year-old to compete in international Rubik's Cube competition
East Baton Rouge Parish schools work to find teachers amid nationwide teacher...
Jurors view graphic rape video in second day of Livingston sex abuse...
During call to 911 about prison fire, supervisors ask for police not...
WATCH: New LSU coach Brian Kelly arrives in Baton Rouge
High school coaches give Brian Kelly advice on how to tackle recruiting...
See the contract to get Brian Kelly as the new LSU Football...
Fans share their excitement about new LSU head coach Brian Kelly
New LSU coach Brian Kelly arrives in Baton Rouge