Recent Litigation Related to Royalties from Federal Offshore Oil and Gas Production

Author / Creator

Library of Congress. Congressional Research Service

Available as

Online

Summary

Provides background on the Outer Continental Shelf Deep Water Royalty Relief Act (DWRRA) of 1995, which provides incentives for otherwise uneconomic exploration of deepwater oil and natural gas res...

Provides background on the Outer Continental Shelf Deep Water Royalty Relief Act (DWRRA) of 1995, which provides incentives for otherwise uneconomic exploration of deepwater oil and natural gas reserves through royalty-free leases. Summarizes relevant portions of the Royalty Relief for American Consumers Act of 2007, included in H.R. 3221, to encourage renegotiation of controversial 1998 and 1999 leases issued by the Department of Interior. Summarizes recent ruling in Kerr-McGee Oil & Gas Corp. v Allred, in which U.S. District Court for the Western District of Louisiana held that the Department of Interior cannot impose price thresholds on DWRRA leases. Analyzes potential impact of ruling on the Royalty Relief for American Consumers Act and any similar legislation.

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