[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: 43CFR3162.2-2]



[Page 430]

 

                    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]