30 C.F.R. § 204.4 What is a marginal property under this part?
Title 30 - Mineral Resources
(a) To qualify as a marginal property eligible for royalty prepayment or accounting and auditing relief under this part, the property must meet the following requirements: (b) To qualify as a marginal property for a calendar year, the combined equivalent production of the property during the base period must equal an average daily well production of less than 15 barrels of oil equivalent (BOE) per well per day calculated under paragraph (c) of this section. (c) To determine the average daily well production for a property, divide the sum of the BOE for all producing wells on the property during the base period by the sum of the number of days that each of those wells actually produced during the base period. If the property is an agreement, your calculation under this paragraph must include all wells included in the agreement, even if they are not on a Federal onshore or OCS lease.
Title 30: Mineral Resources
PART 204—ALTERNATIVES FOR MARGINAL PROPERTIES
Subpart A—General Provisions
§ 204.4 What is a marginal property under this part?
------------------------------------------------------------------------ If your lease is . . . Then . . . And . . .------------------------------------------------------------------------(1) Not in an agreement......... The lease must .................. qualify as a marginal property under paragraph (b) of this section.(2) Entirely or partly committed The entire Agreement to one agreement. agreement must production qualify as a allocable to your marginal property lease may be under paragraph eligible for (b) of this relief under this section. part. Any production from your lease that is not committed to the agreement also may be eligible for separate relief under paragraph (a)(4) of this table.(3) Entirely or partly committed Each agreement For any agreement to more than one agreement. must qualify that does separately as a qualify, that marginal property agreement's under paragraph production (b) of this allocable to your section. lease may be eligible for relief under this part. Any production from your lease that is not committed to an agreement also may be eligible for separate relief under paragraph (a)(4) of this table.(4) Partly committed to an The part of the agreement and you have lease that is not production from the part of the committed to the lease that is not committed to agreement must the agreement. qualify separately as a marginal property under paragraph (b) of this section.------------------------------------------------------------------------
