43 C.F.R. § 3135.1-5   Extension of lease.


Title 43 - Public Lands: Interior


Title 43: Public Lands: Interior
PART 3130—OIL AND GAS LEASING: NATIONAL PETROLEUM RESERVE, ALASKA
Subpart 3135—Transfers, Extensions, Consolidations, and Suspensions

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§ 3135.1-5   Extension of lease.

(a) The term of a lease shall be extended beyond its primary term so long as oil or gas is produced from the lease in paying quantities or so long as drilling or reworking operations, actual or constructive, as approved by the Secretary, are conducted thereon.

(b) A lease may be maintained in force by directional wells drilled under the leased area from surface locations on adjacent or adjoining lands not covered by the lease. In such circumstances, drilling shall be considered to have commenced on the lease area when drilling is commenced on the adjacent or adjoining lands for the purpose of directional drilling under the leased area through any directional well surfaced on adjacent or adjoining lands. Production, drilling or reworking of any directional well shall be considered production or drilling or reworking operations on the lease area for all purposes of the lease.

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