43 CFR 3162.2-12: -12 If I hold an interest in a lease, for what period will the Department assess compensatory royalty against me?
Where this section sits in the code
- Title 43—Public Lands: Interior
- Subtitle B—Regulations Relating to Public Lands
- CHAPTER II—BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR
- SUBCHAPTER C—MINERALS MANAGEMENT (3000)
- PART 3160—ONSHORE OIL AND GAS OPERATIONS
- Subpart 3162—Requirements for Operating Rights Owners and Operators
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.
Collected 2026-08-27T02:26:15Z. Source file · JSON