[Code of Federal Regulations]

[Title 43, Volume 2]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 43CFR3100.2-2]



[Page 334]

 

                    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]