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

Regulations last checked for updates: Jun 02, 2024

Title 43 - Public Lands: Interior last revised: May 13, 2024

View all text of Subpart 3162 [§ 3162.1 - § 3162.7-4]

§ 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;

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

[66 FR 1894, Jan. 10, 2001]

authority: 25 U.S.C. 396d and 2107; 30 U.S.C. 189,306,359,and; 43 U.S.C. 1732(b), 1733, 1740; and Sec. 107, Pub. L. 114-74, 129 Stat. 599, unless otherwise noted

source: 47 FR 47765, Oct. 27, 1982, unless otherwise noted. Redesignated at 48 FR 36583, Aug. 12, 1983.

cite as: 43 CFR 3162.2-12