Code of Federal Regulations · Section

§ 203.42 — What Conditions And Limitations Apply To Royalty Relief For Deep Wells And Phase 1 Ultra-deep Wells?

30 C.F.R. § 203.42

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The conditions and limitations in the following table apply to royalty relief under § 203.41.

If your first qualified deep well is a sidetrack with a perforated interval whose top is 16,000 feet TVD SS and earns an RSV of 12.5 BCF, and you later drill a qualified original deep well to 17,000 feet TVD SS, the RSV for your lease remains at 12.5 BCF and does not increase to 15 BCF. However, under paragraph (c) of § 203.41, if you subsequently drill a qualified deep well to a depth of 18,000 feet or greater TVD SS, you may earn an additional RSV.