30 CFR 203.68: What pre-application costs will BSEE consider in determining economic viability?

(a) We will not consider ineligible costs as set forth in § 203.89(h) in determining economic viability for purposes of royalty relief.

(b) We will consider sunk costs according to the following table.

We will . . . When determining . . .

(1) Include sunk costs, Whether a field that includes a pre-Act lease which has not produced, other than test production, before the application or redetermination submission date needs relief to become economic.

(2) Not include sunk costs, Whether an authorized field, a development project, or an expansion project can become economic with full relief (see § 203.67).

(3) Not include sunk costs, How much suspension volume is necessary to make the field, a development project, or an expansion project economic (see § 203.69(c)).

(4) Include sunk costs for the project discovery well on each lease, Whether a development project or an expansion project needs relief to become economic.