[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: 43CFR3162.2-12]

[Page 419]
 
                    TITLE 43--PUBLIC LANDS: INTERIOR
 
    CHAPTER II--BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR
 
PART 3160_ONSHORE OIL AND GAS OPERATIONS--Table of Contents
 
   Subpart 3162_Requirements for Operating Rights Owners and Operators
 
Sec. 3162.2-12  If I hold an interest in a lease, for what period will 
the Department assess compensatory royalty against me?

    The Department will assess compensatory royalty beginning on the 
first day of the month following the earliest reasonable time we 
determine you should have taken protective action. You must continue to 
pay compensatory royalty until:
    (a) You drill sufficient economic protective wells and remain in 
continuous production;
    (b) We approve a unitization or communitization agreement that 
includes the mineral resources being drained;
    (c) The draining well stops producing; or
    (d) You relinquish your interest in the Federal or Indian lease.

[66 FR 1894, Jan. 10, 2001]