(a) You must take protective action within a reasonable time after the earlier of:
(1) The date you knew or had constructive notice that the potentially draining well had begun to produce oil or gas; or
(2) The date we issued a demand letter for protective action.
(b) Since the time required to drill and produce a protective well varies according to the location and conditions of the oil and gas reservoir, BLM will determine this on a case-by-case basis. When we determine whether you took protective action within a reasonable time, we will consider several factors including, but not limited to:
(1) Time required to evaluate the characteristics and performance of the draining well;
(2) Rig availability;
(3) Well depth;
(4) Required environmental analysis;
(5) Special lease stipulations which provide limited time frames in which to drill; and
(6) Weather conditions.
(c) If BLM determines that you did not take protection action timely, you will owe compensatory royalty for the period of the delay under § 3162.2-12.
[66 FR 1894, Jan. 10, 2001]
source: 47 FR 47765, Oct. 27, 1982, unless otherwise noted. Redesignated at 48 FR 36583, Aug. 12, 1983.
cite as: 43 CFR 3162.2-11