Code of Federal Regulations · Section

§ 3162.2-5 — -5 Must I Take Protective Action When A Protective Well Would Be Uneconomic?

43 C.F.R. § 3162.2-5

View:

You are not required to take any of the actions listed in § 3162.2-4 if you can prove to BLM that when you first knew or had constructive notice of drainage you could not produce a sufficient quantity of oil or gas from a protective well on your lease for a reasonable profit above the cost of drilling, completing, and operating the protective well.

43 C.F.R. § 3162.2-4 43 C.F.R. § 3162.2-6

Authorizing Statute

Rules and regulations; boundary lines; State rights unaffected; taxation
30 U.S.C. § 189
Management of use, occupancy, and development of public lands
43 U.S.C. § 1732
Rules and regulations governing operations; limitations on oil or gas leases
25 U.S.C. § 396d