[Code of Federal Regulations]
[Title 30, Volume 2]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 30CFR203.74]

[Page 26-27]
 
                       TITLE 30--MINERAL RESOURCES
 
                       DEPARTMENT OF THE INTERIOR
 
PART 203--RELIEF OR REDUCTION IN ROYALTY RATES--Table of Contents
 
               Subpart B--OCS Oil, Gas, and Sulfur General
 
Sec. 203.74  When will MMS reconsider its determination?

    You may request a redetermination after we withdraw approval or 
after you renounce royalty relief, unless we withdraw approval due to 
your providing false or intentionally inaccurate information. Under 
certain conditions you may also request a redetermination if we deny 
your application or if you want your approved royalty suspension volume 
to change. In these instances, to be eligible for a redetermination, at 
least one of the following four conditions must occur.
    (a) You have significant new G&G data and you previously have not 
either requested a redetermination or reapplied for relief after we 
withdrew approval or you relinquished royalty relief. ``Significant'' 
means that the new G&G data:
    (1) Results from drilling new wells or getting new three-dimensional 
seismic data and information (but not reinterpreting old data);
    (2) Did not exist at the time of the earlier application; and
    (3) Changes your estimates of gross resource size, quality, or 
projected flow rates enough to materially affect the results of our 
earlier determination.
    (b) You demonstrate in your new application that the technology that 
most efficiently develops this field or lease was not considered or 
deemed feasible in the original application. Your newly proposed 
technology must improve the profitability, under equivalent market 
conditions, of the field or lease relative to the development system 
proposed in the prior application.
    (c) Your current reference price decreases by more than 25 percent 
from your base reference price as calculated under this paragraph.
    (1) Your current reference price is a weighted-average of daily 
closing prices on the NYMEX for light sweet

[[Page 27]]

 crude oil and natural gas over the most recent full 12 calendar months;
    (2) Your base reference price is a weighted average of daily closing 
prices on the NYMEX for light sweet crude oil and natural gas for the 
full 12 calendar months preceding the date of your most recently 
approved application for this royalty relief; and
    (3) The weighting factors are the proportions of the total 
production volume (in BOE) for oil and gas associated with the most 
likely scenario (identified in Secs. 203.85 and 203.88) from your most 
recently approved application for this royalty relief.
    (d) Before starting to build your development and production system, 
you have revised your estimated development costs, and they are more 
than 120 percent of the eligible development costs associated with the 
most likely scenario from your most recently approved application for 
this royalty relief.

[63 FR 2618, Jan. 16, 1998; 63 FR 24747, May 5, 1998, as amended at 67 
FR 1878, Jan. 15, 2002]