30 C.F.R. § 203.68 What pre-application costs will MMS consider in determining economic viability?
Title 30 - Mineral Resources
(a) We will not consider ineligible costs as set forth in §203.89(h) in determining economic viability for purposes of royalty relief. (b) We will consider sunk costs according to the following table. [63 FR 2618, Jan. 16, 1998, as amended at 67 FR 1876, Jan. 15, 2002]
Title 30: Mineral Resources
PART 203—RELIEF OR REDUCTION IN ROYALTY RATES
Subpart B—OCS Oil, Gas, and Sulfur General
Royalty Relief For Deep Water Expansion Projects And Pre-Act Deep Water Leases
§ 203.68 What pre-application costs will MMS consider in determining economic viability?
------------------------------------------------------------------------ We will When determining------------------------------------------------------------------------(1) Include sunk costs................. Whether a field that includes a pre-Act lease which has not produced, other than test production, before the application or redetermination submission date needs relief to become economic.(2) Not include sunk costs............. Whether an authorized field, a development project, or an expansion project can become economic with full relief (see § 203.67).(3) Not include sunk costs............. How much suspension volume is necessary to make the field, a development project, or an expansion project economic (see § 203.69(c)).(4) Include sunk costs for the project Whether a development project discovery well on each lease. or an expansion project needs relief to become economic.------------------------------------------------------------------------
