In 1996,
Mercury Records signed the band and released their fourth album,
See the Ocean Blue, that fall, which saw the arrival of new guitarist Oed Ronne and the band's renewed interest in the music of the 1960s and 1970s. While Schelzel remained the predominant songwriter of the band, Ronne composed two tracks and sang lead on his song "Behind".
See was released to lukewarm results, with the record company cancelling plans to film a video for the second single, "Slide", although the band embarked upon a U.S. tour. In 1999, the band recorded and self-released their fifth album, ''Davy Jones' Locker''. Two years later, the album was re-sequenced, re-mastered and re-released on March Records, with March releasing both "Denmark" and "Ayn" as EPs, each featuring three new B-sides. Shortly thereafter, drummer Minnig decided to leave the group after fourteen years, and Peter Anderson, a friend of the band from
Minneapolis, was brought in for live shows and, eventually, permanent recording work. In 2004, the band released the diverse six-song EP
Waterworks on
What Are Records?. That year, the group performed select dates around the U.S., recruiting
the Owls' saxophonist Brian Tighe.
The Orange Peels'
Allen Clapp contributed music and production duties to the EP and, to reciprocate, Ronne and Anderson contributed to Allen Clapp and the Orange Peels' 2005 album
Circling the Sun. In October of that year, Schelzel recorded a solo version of
Adolphe Adam's 1847 Christmas classic "
O Holy Night". This song was available only as a digital download via the band's website for the 2005 holiday season. In late 2005, the Ocean Blue's entire five-studio-album catalogue, as well as the
Waterworks EP and the band's first four videos, became available for purchase on
iTunes. On June 1, 2006, the Ocean Blue's Schelzel/Mittan/Ronne/Anderson line-up played its first-ever South American concert, with a show at Teatro Rajatabla El Llonja,
Barranco-Lima,
Peru. In July 2010, the Ocean Blue's long-unreleased studio track "City Traffic" was uploaded to
Dailymotion and
YouTube, with an accompanying homemade video. ==Comeback==