[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: 43CFR3162.2-9]



[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.  3162.2-9  What is my duty to inquire about the potential for drainage and inform BLM of my findings?



    (a) When you first acquire a lease interest, and at all times while 

you hold the lease interest, you must monitor the drilling of wells in 

the same or adjacent spacing units and gather sufficient information to 

determine whether drainage is occurring. This information can be in 

various forms, including but not limited to, well completion reports, 

sundry notices, or available production information. As a prudent 

lessee, it is your responsibility to analyze and evaluate this 

information and make the necessary calculations to determine:

    (1) The amount of drainage from production of the draining well;

    (2) The amount of mineral resources which will be drained from your 

Federal or Indian lease during the life of the draining well; and

    (3) Whether a protective well would be economic to drill.

    (b) You must notify BLM within 60 days from the date of actual or 

constructive notice of:

    (1) Which of the actions in Sec.  3162.2-4 you will take; or

    (2) The reasons a protective well would be uneconomic.

    (c) If you do not have sufficient information to comply with Sec.  

3162.2-9(b)(1), indicate when you will provide the information.

    (d) You must provide BLM with the analysis under paragraph (a) of 

this section within 60 days after we request it.



[66 FR 1893, Jan. 10, 2001]