---
kind: "section"
citation: "43 C.F.R. § 3137.76"
title: "43"
number: "3137.76"
heading: "What happens if I do not meet a continuing development obligation?"
url: "https://uscodex.org/cfr/43/3137.76"
---

# §3137.76. What happens if I do not meet a continuing development obligation?

- (a) After you establish a participating area, if you do not meet a continuing development obligation and BLM has not granted you an extension of time to meet the obligation, the unit contracts. This means that—
  - (1) All areas within the unit that do not have participating areas established are eliminated from the unit. Any eliminated areas are subject to their original lease terms; and
  - (2) **Only established participating areas, whether they are actually producing or not, remain in the unit.**
- (b) Units contract effective the first day of the month after the date on which the unit agreement required the continuing development obligations to begin.
- (c) If you do not meet a continuing development obligation before you establish a participating area, the unit terminates (see [§ 3137.132](/cfr/43/3137.132.md) of this subpart).

## Notes

### Source

Source: 67 FR 17886, Apr. 11, 2002, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 6508, 43 U.S.C. 1733 and 1740.

### Source

Source: 46 FR 55497, Nov. 9, 1981, unless otherwise noted.