[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: 43CFR3162.2-12]



[Page 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.  3162.2-12  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]