43 CFR 3178.6 - Uses of oil or gas moved off the lease, unit, or communitized area that do not require prior written approval for royalty-free treatment of volumes used.

Regulations last checked for updates: Oct 19, 2024

Title 43 - Public Lands: Interior last revised: Sep 06, 2024

View all text of Subpart 3178 [§ 3178.1 - § 3178.10]

§ 3178.6 - Uses of oil or gas moved off the lease, unit, or communitized area that do not require prior written approval for royalty-free treatment of volumes used.

Oil or gas used after being moved off the lease, unit, or communitized area may be treated as royalty free without prior written BLM approval only if the use meets the criteria under § 3178.4 and when:

(a) The oil or gas is transported from one area of the lease, unit, or communitized area to another area of the same lease, unit, or communitized area where it is used, and no oil or gas is added to or removed from the pipeline while crossing lands that are not part of the lease, unit, or communitized area; or

(b) A well is directionally drilled, the wellhead is not located on the producing lease, unit, or communitized area, and oil or gas is used on the same well pad for operations and production purposes for that well.

authority: 25 U.S.C. 396d and 2107; 30 U.S.C. 189,306,359,and; and 43 U.S.C. 1732(b), 1733, and 1740

source: 81 FR 81421, Nov. 17, 2016, unless otherwise noted.

cite as: 43 CFR 3178.6