[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: 43CFR3162.2-11]



[Page 431-432]

 

                    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.  3162.2-11  How soon after I know of the likelihood of drainage must I take protective action?



    (a) You must take protective action within a reasonable time after 

the earlier of:

    (1) The date you knew or had constructive notice that the 

potentially draining well had begun to produce oil or gas; or

    (2) The date we issued a demand letter for protective action.

    (b) Since the time required to drill and produce a protective well 

varies according to the location and conditions of the oil and gas 

reservoir, BLM will determine this on a case-by-case basis. When we 

determine whether you took protective action within a reasonable time, 

we will consider several factors including, but not limited to:



[[Page 432]]



    (1) Time required to evaluate the characteristics and performance of 

the draining well;

    (2) Rig availability;

    (3) Well depth;

    (4) Required environmental analysis;

    (5) Special lease stipulations which provide limited time frames in 

which to drill; and

    (6) Weather conditions.

    (c) If BLM determines that you did not take protection action 

timely, you will owe compensatory royalty for the period of the delay 

under Sec.  3162.2-12.



[66 FR 1894, Jan. 10, 2001]