§203.49. May I substitute the deep gas drilling provisions in this part for the deep gas royalty relief provided in my lease terms?
30 C.F.R. § 203.49
You may exercise an option to replace the applicable lease terms for royalty relief related to deep-well drilling with those in § 203.0 and §§ 203.40 through 203.48 if you have a lease issued with royalty relief provisions for deep-well drilling. Such leases:
Must be issued as part of an OCS lease sale held after January 1, 2001, and before April 1, 2004; and
Must be located wholly west of 87 degrees, 30 minutes West longitude in the GOA entirely or partly in water less than 200 meters deep.
To exercise the option under paragraph (a) of this section, you must notify, in writing, the BSEE Regional Supervisor for Production and Development of your decision before September 1, 2004, or 180 days after your lease is issued, whichever is later, and specify the lease and block number.
Once you exercise the option under paragraph (a) of this section, you are subject to all the activity, timing, and administrative requirements pertaining to deep gas royalty relief as specified in §§ 203.40 through 203.48.
Exercising the option under paragraph (a) of this section is irrevocable. If you do not exercise this option, then the terms of your lease apply.
Notes, amendments, and revision history
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]