Posted in accidents, well control incidents, tagged 76, Australia, blowouts, BOE, Deepwater Royalty Relief Act, macondo, Montara, offshore oil on June 28, 2010|
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-The duration of the Montara blowout was 75 Days. Ironically, Day 76 of the Macondo blowout will be the 4th of July.
-Eleven days have elapsed since the Montara Report was presented to Minister Ferguson, who has apparently retained his cabinet position in the new government. Now that the cabinet has been settled, perhaps there will be more public clamor for the report?
-Cap Summit in DC? – According to Admiral Allen, government and industry experts will convene on Wednesday to decide whether to change the collection cap. Other designs would provide a better seal and facilitate higher recovery rates via free-standing risers, but the well would flow unabated during the changeover.
-More Macondo irony: Since the oil spilled is “avoidably lost,” royalties will presumably be due on both the oil spilled and the oil “produced” at Macondo. However, for fields in water depths greater than 800m, the Deepwater Royalty Relief Act of 1995 exempts the first 87.5 million barrels of oil equivalent from Federal royalties. Court interpretations of this poorly written legislation have determined that this relief must be applied on a lease (not field) basis, making the royalty exemption much more generous. Ironically, Kerr McGee (now part of Macondo partner Anadarko) filed the law suit that resulted in this favorable decision for industry. MMS, which has been repeatedly (and incorrectly) denounced for being “too cozy with industry,” fought hard for the less generous interpretation.
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