43 CFR 3137.89 - How does production allocation occur from wells that do not meet the productivity criteria?

§ 3137.89 How does production allocation occur from wells that do not meet the productivity criteria?
(a) If a well that does not meet the productivity criteria was drilled before the unit was formed, the production is allocated on a lease or other federally-approved oil and gas agreement basis. You must pay and report the royalties from any such well either as specified in the underlying lease or other federally-approved oil and gas agreements.
(b) If you drilled a well after the unit was formed and the well is completed within an existing participating area, the production becomes a part of that participating area production even if it does not meet the productivity criteria. BLM may require the participating area to be revised under § 3137.84 of this subpart.
(c) If a well not meeting the productivity criteria is outside a participating area, the production is allocated as provided in paragraph (a) of this section.

Title 43 published on 2014-10-01

no entries appear in the Federal Register after this date.

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