Price Thresholds and Annual Market Prices for the Bureau Deepwater and Deep Depth Oil and Gas Royalty Relief Programs
The 2016 Price Threshold Determination link provides the official Bureau documentation of which Gulf of Mexico price thresholds have been exceeded by annual market prices for oil or gas, by lease vintage, for calendar year 2016. Technical Documentation links to a detailed explanation of how the Bureau calculates the annual oil and gas prices and applicable price thresholds used to determine whether royalty relief applies in calendar year 2016 for our various deepwater and deep depth royalty relief programs.
Beginning in the second quarter of each year, the Bureau estimates the average New York Mercantile Exchange (NYMEX) market price at which oil or gas would have to sell during the remainder of the calendar year for the estimated price threshold to be exceeded for that year. Price Thresholds links to this estimate as well as a record of past year price thresholds since 1994, and the NYMEX Price History links to a spreadsheet of monthly oil and gas prices used in the Price Thresholds determination.
The final bullet links to guidance provided by the Bureau's Minerals Revenue Management (MRM) program for recouping royalties paid on Deepwater Royalty Relief Act (DWRRA) leases.