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  • Drilling developments


    Robert E. Snyder, Executive Engineering Editor

    DOI takes back Florida leases. The U.S. Department of the Interior has taken back leases awarded to private operators in two areas: 1) the Destin Dome Unit in the Eastern Gulf of Mexico, 30 miles south of Pensacola; and 2) three preserves / refuges in the onshore Florida Everglades. The Destin Dome leases were awarded in sales held in 1984, 1985 and 1989, to Chevron, Conoco, Murphy Oil, ExxonMobil and Samedan. In July 2000, the first three operators sued DOI, alleging that the government had breached lease contracts without just compensation through improper delays and regulatory actions. While not fully explored, the Unit is estimated to contain at least 700 Bcf recoverable gas – the Natural Gas Supply Association (NGSA) quotes figures for Destin Dome as high as 2.6 Tcf gas in place.

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