43 C.F.R. § 3137.89 How does production allocation occur from wells that do not meet the productivity criteria?
Title 43 - Public Lands: Interior
(a) If a well that does not meet the productivity criteria was drilled before the unit was formed, the production is allocated on a lease or other federally-approved oil and gas agreement basis. You must pay and report the royalties from any such well either as specified in the underlying lease or other federally-approved oil and gas agreements. (b) If you drilled a well after the unit was formed and the well is completed within an existing participating area, the production becomes a part of that participating area production even if it does not meet the productivity criteria. BLM may require the participating area to be revised under §3137.84 of this subpart. (c) If a well not meeting the productivity criteria is outside a participating area, the production is allocated as provided in paragraph (a) of this section.
Title 43: Public Lands: Interior
PART 3130—OIL AND GAS LEASING: NATIONAL PETROLEUM RESERVE, ALASKA
Subpart 3137—Unitization Agreements—National Petroleum Reserve-Alaska
Participating Areas
§ 3137.89 How does production allocation occur from wells that do not meet the productivity criteria?
