Federal officials making changes to some oil-lease terms | St. Louis business news

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NEW ORLEANS (AP) — A federal oil lease sale in November would be the first in a decade to supply 10-year leases at some depths.

Since 2010, leases in depths of 800 to 1600 meters (a couple of half-mile to just about a mile) have run for seven years, with a three-year extension obtainable for corporations which have began a properly on their lease.

“After a cautious evaluation of the previous 10 years’ knowledge, … BOEM is reverting to providing the 10-year main time period in these particular water depths,” the Bureau of Offshore Power Administration stated in a information launch Thursday. Leases in deeper waters stay at 10 years. In shallower waters, the leases are for 5 years, with a three-year extension for corporations that begin a properly inside these first 5 years.

The company is providing about 78 million acres (31.6 million hectares) in water from 9 ft to greater than 11,115 ft (three meters to three,400 meters).

Like all gross sales since August 2016, the sale on Nov. 18 will likely be livestreamed, Bids will likely be learn publicly.

The final lease sale, in March, supplied about the identical acreage and acquired bids on about 0.5% of the overall.

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