30 C.F.R. § 203.40 Which leases are eligible for royalty relief as a result of drilling deep wells?
Title 30 - Mineral Resources
Your lease may receive a royalty suspension volume under §§203.41 through 203.43, and may receive a royalty suspension supplement under §§203.44 through 203.46, if it: (a) Was: (1) In existence on January 1, 2001; (2) Issued in a lease sale held after January 1, 2001, and before April 1, 2004, and either the lessee has exercised the option provided for in §203.48 or the lease is located partly in water less than 200 meters deep and no deep water royalty relief provisions in statutes or lease terms apply to the lease; or (3) Issued in a lease sale held on or after April 1, 2004, and either the lease terms provide for royalty relief under §§203.41 through 203.47 of this part or the lease is located partly in water less than 200 meters deep and no deep water royalty relief provisions in statutes or lease terms apply to the lease; (b) Is located: (1) In the GOM, wholly west of 87 degrees, 30 minutes West longitude; (2) Entirely in water less than 200 meters deep, or partly in water less than 200 meters deep and no deep-water royalty relief provisions in statutes or lease terms apply to the lease; and (c) Has not produced gas or oil from a deep well with a perforated interval the top of which is 18,000 feet TVD SS or deeper that commenced drilling before March 26, 2003. [69 FR 3510, Jan. 26, 2004, as amended at 70 FR 22252, Apr. 29, 2005]
Title 30: Mineral Resources
PART 203—RELIEF OR REDUCTION IN ROYALTY RATES
Subpart B—OCS Oil, Gas, and Sulfur General
Royalty Relief for Drilling Deep Gas Wells on Leases Not Subject to Deep Water Royalty Relief
§ 203.40 Which leases are eligible for royalty relief as a result of drilling deep wells?
