30 C.F.R. § 260.114 How does MMS assign and monitor royalty suspension volumes for eligible leases?
Title 30 - Mineral Resources
(a) We will assign your lease that has a qualifying well (under part 250, subpart A of this title) to an existing field or designate a new field and will notify you and other affected lessees and operating rights holders in the field of that assignment. (1) Within 15 days of that notification, you or any of the other affected lessees or operating rights holders may file a written request with the Director of MMS (Director) for reconsideration accompanied by a “Statement of Reasons.” (2) The Director will respond in writing either affirming or reversing the assignment decision. The Director's decision is the final action of the Department of the Interior and is not subject to appeal to the Interior Board of Land Appeals under part 290 of this title and 43 CFR part 4. (b) We have specified the water depth for each eligible lease in the final Notice of OCS Lease Sale. Our determination of water depth for each lease is final once we issue the lease. We have specified in the Notice the royalty suspension volume applicable to each water depth. The minimum royalty suspension volumes for fields in million barrels of oil equivalent (MMBOE) are shown in the following table: (c) Before commencing production, you must: (1) Notify the MMS Regional Supervisor for Production and Development of your intention to start production; and (2) Request confirmation of the size of the royalty suspension volume that applies to your eligible lease. (d) When production (other than test production) first occurs from any of the eligible leases in a field, we will determine what royalty suspension volume applies to the lease(s) in that field. We base the determination for eligible lease(s) on the royalty suspension volumes specified in paragraph (b) of this section and the water depths of eligible leases specified in §260.117(a). (e) Your eligible lease may obtain more than one royalty suspension volume. If a new field is discovered on your eligible lease that already benefits from the royalty suspension volume from another field, production from that new field receives a separate royalty suspension. [66 FR 11518, Feb. 23, 2001, as amended at 67 FR 57739, Sept. 12, 2002]
Title 30: Mineral Resources
PART 260—OUTER CONTINENTAL SHELF OIL AND GAS LEASING
Subpart B—Bidding Systems
Eligible Leases
§ 260.114 How does MMS assign and monitor royalty suspension volumes for eligible leases?
------------------------------------------------------------------------ Minimum royalty suspension Water depth volume------------------------------------------------------------------------(1) 200 to 400 meters.................... 17.5 MMBOE(2) 400 to 800 meters.................... 52.5 MMBOE(3) 800 meters or more................... 87.5 MMBOE------------------------------------------------------------------------
