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BOEM reduces shallow-water royalty rate for upcoming lease sale

The US Bureau of Ocean Energy Management lowered the shallow-water royalty rate for proposed Outer Continental Shelf Lease Sale 249 in the Gulf of Mexico to 12.5% from the original 18.75%. The new rate, which is the same as the one for federal onshore oil and gas royalties, would apply in water less than 200 m, the US Department of the Interior agency reported on July 7 after completing an analysis of its royalty rates.