View all text of Subjgrp 7 [§ 203.40 - § 203.49]
§ 203.42 - What conditions and limitations apply to royalty relief for deep wells and phase 1 ultra-deep wells?
The conditions and limitations in the following table apply to royalty relief under § 203.41.
If . . . | Then . . . | (a) Your lease has produced gas or oil from a well with a perforated interval the top of which is 18,000 feet TVD SS or deeper, | your lease cannot earn an RSV under § 203.41 as a result of drilling any subsequent deep wells or phase 1 ultra-deep wells. | (b) You determine RSV under § 203.41 for the first qualified deep well or qualified phase 1 ultra-deep well on your lease (whether an original well or a sidetrack) because you drilled and produced it within the time intervals set forth in the definitions for qualified wells, | that determination establishes the total RSV available for that drilling depth interval on your lease ( | (c) A qualified deep well or qualified phase 1 ultra-deep well on your lease is within a unitized portion of your lease, | the RSV earned by that well under § 203.41 applies only to production from qualified wells on or allocated to your lease and not to other leases within the unit. | (d) Your qualified deep well or qualified phase 1 ultra-deep well is a directional well (either an original well or a sidetrack) drilled across a lease line, | the lease with the perforated interval that initially produces earns the RSV. However, if the perforated interval crosses a lease line, the lease where the surface of the well is located earns the RSV. | (e) You earn an RSV under § 203.41, | that RSV is in addition to any RSS for your lease under § 203.45 that results from a different wellbore. | (f) Your lease earns an RSV under § 203.41 and later produces from a well that is not a qualified well, | the RSV is not forfeited or terminated, but you may not apply the RSV under § 203.41 to production from the non-qualified well. | (g) You qualify for an RSV under paragraphs (b) or (c) of § 203.41, | you still owe minimum royalties or rentals in accordance with your lease terms. | (h) You transfer your lease, | unused RSVs transfer to a successor lessee and expire with the lease. |
---|