[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: 43CFR3162.2-2]

[Page 417]
 
                    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. 3162.2-2  What steps may BLM take to avoid uncompensated drainage of 
Federal or Indian mineral resources?

    If we determine that a well is draining Federal or Indian mineral 
resources, we may take any of the following actions:
    (a) If the mineral resources being drained are in Federal or Indian 
leases, we may require the lessee to drill and produce all wells that 
are necessary to protect the lease from drainage, unless the conditions 
of this part are met. BLM will consider applicable Federal, State, or 
Tribal rules, regulations, and spacing orders when determining which 
action to take. Alternatively, we may accept other equivalent protective 
measures;
    (b) If the mineral resources being drained are either unleased 
(including those which may not be subject to leasing) or in Federal or 
Indian leases, we may execute agreements with the owners of interests in 
the producing well under which the United States or the Indian lessor 
may be compensated for the drainage (with the consent of the Federal or 
(in consultation with the Indian mineral owner and BIA) Indian lessees, 
if any);
    (c) We may offer for lease any qualifying unleased mineral resources 
under part 3120 of this chapter or enter into a communitization 
agreement; or
    (d) We may approve a unit or communitization agreement that provides 
for payment of a royalty on production attributable to unleased mineral 
resources as provided in Sec. 3181.5.

[66 FR 1893, Jan. 10, 2001]