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Notes

30 C.F.R. §§ 203.41–203.43

3 sections in range

§203.41. If I have a qualified deep well or a qualified phase 1 ultra-deep well, what royalty relief would my lease earn?

30 C.F.R. § 203.41

(a)
To qualify for a suspension volume under paragraphs (b) or (c) of this section, your lease must meet the requirements in § 203.40 and the requirements in the following table.
(b)
If your lease meets the requirements in paragraph (a)(1) of this section, it earns the RSV prescribed in the following table:
(c)
If your lease meets the requirements in paragraph (a)(2) of this section, it earns the RSV prescribed in the following table. The RSV specified in this paragraph is in addition to any RSV your lease already may have earned from a qualified deep well with a perforated interval whose top is from 15,000 feet to less than 18,000 feet TVD SS.
(d)
Lessees may request a refund of or recoup royalties paid on production from qualified wells on a lease that is located in water entirely deeper than 200 meters but entirely less than 400 meters deep that:
(1)
Occurs before December 18, 2008; and
(2)
Is subject to application of an RSV under either § 203.31 or § 203.41.
(e)
The following examples illustrate how this section applies, assuming your lease meets the location, prior production, and lease issuance conditions in § 203.40 and paragraph (a) of this section:
Notes, amendments, and revision history

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.

§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

The conditions and limitations in the following table apply to royalty relief under § 203.41.
Notes, amendments, and revision history

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.

§203.43. To which production do I apply the RSV earned from qualified deep wells or qualified phase 1 ultra-deep wells on my lease?

30 C.F.R. § 203.43

(a)
You must apply the RSV prescribed in § 203.41(b) and (c) to gas volumes produced from qualified wells on or after May 3, 2004, reported on the OGOR-A for your lease under 30 CFR 1210.102, as and to the extent prescribed in §§ 203.43 and 203.48.
(1)
Except as provided in paragraph (a)(2) of this section, all gas production from qualified wells reported on the OGOR-A, including production that is not subject to royalty, counts toward the lease RSV.
(2)
Production to which an RSS applies under §§ 203.45 and 203.46 does not count toward the lease RSV.
(b)
This paragraph applies to any lease with a qualified deep well or qualified phase 1 ultra-deep well when no part of the lease is within a BSEE-approved unit. Subject to the price conditions in § 203.48, you must apply the RSV prescribed in § 203.41 as required under the following paragraphs (b)(1) and (b)(2) of this section.
(1)
You must apply the RSV to the earliest gas production occurring on and after the later of:
(i)
May 3, 2004, for an RSV earned by a qualified deep well or qualified phase 1 ultra-deep well on a lease that is located entirely or partly in water less than 200 meters deep;
(ii)
May 18, 2007, for an RSV earned by a qualified deep well on a lease that is located entirely in water more than 200 meters deep; or
(iii)
The date that the first qualified well that earns your lease the RSV begins production (other than test production).
(2)
You must apply the RSV to only gas production from qualified wells on your lease, regardless of their depth, for which you have met the requirements in § 203.35 or § 203.44.
(c)
This paragraph applies to any lease with a qualified deep well or qualified phase 1 ultra-deep well when all or part of the lease is within a BSEE-approved unit. Under the unit agreement, a share of the production from all the qualified wells in the unit participating area would be allocated to your lease each month according to the participating area percentages. Subject to the price conditions in § 203.48, you must apply the RSV prescribed under § 203.41 as required under the following paragraphs (c)(1) through (3) of this section.
(1)
You must apply the RSV to the earliest gas production occurring on and after the later of:
(i)
May 3, 2004, for an RSV earned by a qualified well or qualified phase 1 ultra-deep well on a lease that is located entirely or partly in water less than 200 meters deep;
(ii)
May 18, 2007, for an RSV earned by a qualified deep well on a lease that is located entirely in water more than 200 meters deep; or
(iii)
The date that the first qualified well that earns your lease the RSV begins production (other than test production).
(2)
You must apply the RSV to only gas production:
(i)
From all qualified wells on the non-unitized area of your lease, regardless of their depth, for which you have met the requirements in § 203.35 or § 203.44; and,
(ii)
Allocated to your lease under a BSEE-approved unit agreement from qualified wells on unitized areas of your lease and on unitized areas of other leases in the unit, regardless of their depth, for which the requirements in § 203.35 or § 203.44 have been met.
(3)
The allocated share under paragraph (c)(2)(ii) of this section does not increase the RSV for your lease. None of the volumes produced from a well that is not within a unit participating area may be allocated to other leases in the unit.
(d)
You must begin paying royalties when the cumulative production of gas from all qualified wells on your lease, or allocated to your lease under paragraph (c) of this section, reaches the applicable RSV allowed under § 203.31 or § 203.41. For the month in which cumulative production reaches this RSV, you owe royalties on the portion of gas production that exceeds the RSV remaining at the beginning of that month.
(e)
You may not apply the RSV allowed under § 203.41 to:
(1)
Production from completions less than 15,000 feet TVD SS, except in cases where the qualified deep well is re-perforated in the same reservoir previously perforated deeper than 15,000 feet TVD SS;
(2)
Production from a deep well or phase 1 ultra-deep well on any other lease, except as provided in paragraph (c) of this section;
(3)
Any liquid hydrocarbon (oil and condensate) volumes; or
(4)
Production from a deep well or phase 1 ultra-deep well that commenced drilling before—
(i)
March 26, 2003, on a lease that is located entirely or partly in water less than 200 meters deep, or
(ii)
May 18, 2007, on a lease that is located entirely in water more than 200 meters deep.
Notes, amendments, and revision history

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.