---
kind: "section"
citation: "30 C.F.R. § 203.40"
title: "30"
number: "203.40"
heading: "Which leases are eligible for royalty relief as a result of drilling a deep well or a phase 1 ultra-deep well?"
url: "https://uscodex.org/cfr/30/203.40"
---

# §203.40. Which leases are eligible for royalty relief as a result of drilling a deep well or a phase 1 ultra-deep well?


Your lease may receive an RSV under [§§ 203.41 through 203.44](/cfr/30/203.41..203.44.md), and may receive an RSS under [§§ 203.45 through 203.47](/cfr/30/203.45..203.47.md), if it meets all the requirements of this section.

- (a) The lease is located in the GOA wholly west of 87 degrees, 30 minutes West longitude in water depths entirely less than 400 meters deep.
- (b) The lease has not produced gas or oil from a well with a perforated interval the top of which is 18,000 feet TVD SS or deeper that commenced drilling either:
  - (1) Before March 26, 2003, on a lease that is located partly or entirely in water less than 200 meters deep; or
  - (2) Before May 18, 2007, on a lease that is located in water entirely more than 200 meters and entirely less than 400 meters deep.
- (c) In the case of a lease located partly or entirely in water less than 200 meters deep, the lease was issued in a lease sale held either:
  - (1) Before January 1, 2001;
  - (2) On or after January 1, 2001, and before January 1, 2004, and, in cases where the original lease terms provided for an RSV for deep gas production, the lessee has exercised the option provided for in [§ 203.49](/cfr/30/203.49.md); or
  - (3) On or after January 1, 2004, and the lease terms provide for royalty relief under [§§ 203.41 through 203.47](/cfr/30/203.41..203.47.md). (Note: Because the original [§ 203.41](/cfr/30/203.41.md) has been divided into new §§ [203.41](/cfr/30/203.41.md) and [203.42](/cfr/30/203.42.md) and subsequent sections have been redesignated as [§§ 203.43 through 203.48](/cfr/30/203.43..203.48.md), royalty relief in lease terms for leases issued on or after January 1, 2004, should be read as referring to [§§ 203.41 through 203.48](/cfr/30/203.41..203.48.md).)
- (d) If the lease is located entirely in more than 200 meters and less than 400 meters of water, it must either:
  - (1) Have been issued before November 28, 1995, and not been granted deep water royalty relief under [43 U.S.C. 1337(a)(3)(C)](/usc/43/1337.md?p=a-3-C), added by section 302 of the Deep Water Royalty Relief Act; or
  - (2) Have been issued after November 28, 2000, and not been granted deep water royalty relief under [§§ 203.60 through 203.79](/cfr/30/203.60..203.79.md).

## Notes

### Amendments

[76 FR 64462, Oct. 18, 2011, as amended at 90 FR 44325, Sept. 15, 2025]

### Authority

Authority: 25 U.S.C. 396 et seq.; 25 U.S.C. 396a et seq.; 25 U.S.C. 2101 et seq.; 30 U.S.C. 181 et seq.; 30 U.S.C. 351 et seq.; 30 U.S.C. 1001 et seq.; 30 U.S.C. 1701 et seq.; 31 U.S.C. 9701; 42 U.S.C. 15903-15906; 43 U.S.C. 1301 et seq.; 43 U.S.C. 1331 et seq.; and 43 U.S.C. 1801 et seq.

### Source

Source: 76 FR 64462, Oct. 18, 2011, unless otherwise noted.

### Amendments

[76 FR 64462, Oct. 18, 2011, as amended at 90 FR 44325, Sept. 15, 2025]