US LAWS, STATUTES & CODES ON-LINE

43 C.F.R. § 3162.2-12   If I hold an interest in a lease, for what period will the Department assess compensatory royalty against me?

Title 43: Public Lands: Interior
PART 3160—ONSHORE OIL AND GAS OPERATIONS
Subpart 3162—Requirements for Operating Rights Owners and Operators

Browse Previous |  Browse Next

§ 3162.2-12   If I hold an interest in a lease, for what period will the Department assess compensatory royalty against me?

The Department will assess compensatory royalty beginning on the first day of the month following the earliest reasonable time we determine you should have taken protective action. You must continue to pay compensatory royalty until:

(a) You drill sufficient economic protective wells and remain in continuous production;

(b) We approve a unitization or communitization agreement that includes the mineral resources being drained;

(c) The draining well stops producing; or

(d) You relinquish your interest in the Federal or Indian lease.

[66 FR 1894, Jan. 10, 2001]