[Code of Federal Regulations]
[Title 43, Volume 2]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 43CFR3100.2-2]

[Page 323]
 
                    TITLE 43--PUBLIC LANDS: INTERIOR
 
    CHAPTER II--BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR
 
PART 3100_OIL AND GAS LEASING--Table of Contents
 
            Subpart 3100_Onshore Oil and Gas Leasing: General
 
Sec. 3100.2-2  Drilling and production or payment of compensatory royalty.

    Where lands in any leases are being drained of their oil or gas 
content by wells either on a Federal lease issued at a lower rate of 
royalty or on non-Federal lands, the lessee shall both drill and produce 
all wells necessary to protect the leased lands from drainage. In lieu 
of drilling necessary wells, the lessee may, with the consent of the 
authorized officer, pay compensatory royalty in the amount determined in 
accordance with Sec. 3162.2(a) of this title.

[48 FR 33662, July 22, 1983, as amended at 53 FR 17352, May 16, 1988]