43 C.F.R. § 3137.111   When will BLM extend the primary term of all leases committed to a unit agreement?


Title 43 - Public Lands: Interior


Title 43: Public Lands: Interior
PART 3130—OIL AND GAS LEASING: NATIONAL PETROLEUM RESERVE, ALASKA
Subpart 3137—Unitization Agreements—National Petroleum Reserve-Alaska
Obligations and Extensions

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§ 3137.111   When will BLM extend the primary term of all leases committed to a unit agreement?

(a) If the unit operator requests it, BLM will extend the primary term of all NPR-A leases committed to a unit agreement if, from anywhere in the unit area, there is—

(1) Actual production from a well that meets the productivity criteria;

(2) Actual or constructive drilling operations; or

(3) Actual or constructive reworking operations.

(b) BLM will extend all NPR-A leases committed to the unit, as provided in the following table, for the following types of operations from any lease committed to the unit—

 ------------------------------------------------------------------------                                                          Additional       Type of operations        Length of extension       extension------------------------------------------------------------------------(1) Actual production..........  As long as there is  Does not apply.                                  production from a                                  well in the unit                                  that meets the                                  productivity                                  criteria.(2) Actual or constructive       Up to three years    Up to three more drilling operations.             for an initial       years if you                                  extension.           demonstrate                                                       reasonable                                                       diligence and                                                       reasonable                                                       monetary                                                       expenditures in                                                       carrying out the                                                       approved drilling                                                       or reworking                                                       operations during                                                       the initial                                                       extension.(3) Actual or constructive       Up to three years    Up to three more reworking operations.            for an initial       years if you                                  extension.           demonstrate                                                       reasonable                                                       diligence and                                                       reasonable                                                       monetary                                                       expenditures in                                                       carrying out the                                                       approved drilling                                                       or reworking                                                       operations during                                                       the initial                                                       extension.------------------------------------------------------------------------

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