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42 USC § 15905 - Royalty relief for deep water production 

---
identifier: "/us/usc/t42/s15905"
source: "usc"
legal_status: "official_prima_facie"
title: "42 USC § 15905 - Royalty relief for deep water production"
title_number: 42
title_name: "THE PUBLIC HEALTH AND WELFARE"
section_number: "15905"
section_name: "Royalty relief for deep water production"
chapter_number: 149
chapter_name: "NATIONAL ENERGY POLICY AND PROGRAMS"
subchapter_number: "III"
subchapter_name: "OIL AND GAS"
part_number: "A"
part_name: "Production Incentives"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 109–58, title III, § 345, Aug. 8, 2005, 119 Stat. 703.)"
---

# § 15905. Royalty relief for deep water production

**(a)** **In general** 43 U.S.C. 1331August 8, 200543 U.S.C. 1337(a)(1)(H)

Subject to subsections (b) and (c), for each tract located in water depths of greater than 400 meters in the Western and Central Planning Area of the Gulf of Mexico (including the portion of the Eastern Planning Area of the Gulf of Mexico encompassing whole lease blocks lying west of 87 degrees, 30 minutes West longitude), any oil or gas lease sale under the Outer Continental Shelf Lands Act ( et seq.) occurring during the 5-year period beginning on , shall use the bidding system authorized under section 8(a)(1)(H) of the Outer Continental Shelf Lands Act ().

**(b)** **Suspension of royalties** The suspension of royalties under subsection (a) shall be established at a volume of not less than—

**(1)** 5,000,000 barrels of oil equivalent for each lease in water depths of 400 to 800 meters;

**(2)** 9,000,000 barrels of oil equivalent for each lease in water depths of 800 to 1,600 meters;

**(3)** 12,000,000 barrels of oil equivalent for each lease in water depths of 1,600 to 2,000 meters; and

**(4)** 16,000,000 barrels of oil equivalent for each lease in water depths greater than 2,000 meters.

**(c)** **Limitation** The Secretary may place limitations on royalty relief granted under this section based on market price.

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**Source Credit**: (Pub. L. 109–58, title III, § 345, Aug. 8, 2005, 119 Stat. 703.)

## Editorial Notes

### References in Text

The Outer Continental Shelf Lands Act, referred to in subsec. (a), is , , which is classified generally to subchapter III (§ 1331 et seq.) of chapter 29 of Title 43, Public Lands. For complete classification of this Act to the Code, see Short Title note set out under  and Tables.