U.S. offers credits to give up Gulf oil, gas leases

WASHINGTON (Reuters) - The Interior Department on Tuesday proposed giving energy companies credits for future royalties owed to the government on oil and natural gas drilling if they give up certain exploration leases in the Gulf of Mexico that are near the Florida coastline.

Congress allowed energy companies to exchange existing leases in the affected areas for credits on bonuses paid to drill on other government offshore tracts or credits for royalties due on oil or gas pumped from other leases in the Gulf of Mexico.

The proposed regulations from the department's Minerals Management Services, which oversees offshore drilling activities, would also give a credit equal to the bonus originally paid plus subsequent rental payments to companies that relinquish their leases.

"We are confident that these amendments to the regulations will allow for an efficient exchange of the leases for credit and help to promote the oil and gas operators' continued development of energy production in the Gulf of Mexico," said MMS Director Randall Luthi.

(Reporting by Tom Doggett)