[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: 43CFR3162.2-7]



[Page 431]

 

                    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.  3162.2-7  Who is liable for drainage if more than one person holds undivided interests in the record title or operating rights for the same lease?



    (a) If more than one person holds record title interests in a 

portion of a lease that is subject to drainage, each person is jointly 

and severally liable for taking any action we may require under this 

part to protect the lease from drainage, including paying compensatory 

royalty accruing during the period and for the area in which it holds 

its record title interest.

    (b) Operating rights owners are jointly and severally liable with 

each other and with all record title holders for drainage affecting the 

area and horizons in which they hold operating rights during the period 

they hold operating rights.



[66 FR 1893, Jan. 10, 2001]