[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: 43CFR3162.2-3]

[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. 3162.2-3  When am I responsible for protecting my Federal or Indian 
lease from drainage?

    You must protect your Federal or Indian lease from drainage if your 
lease is being drained of mineral resources by a well:
    (a) Producing for the benefit of another mineral owner;
    (b) Producing for the benefit of the same mineral owner but with a 
lower royalty rate; or
    (c) Located in a unit or communitization agreement, which due to its 
Federal or Indian mineral owner's allocation or participation factor, 
generates less revenue for the United States or the Indian mineral owner 
for the mineral resources produced from your lease.

[66 FR 1893, Jan. 10, 2001]