Statutes, codes, and regulations
Code of Federal Regulations
Title 30 - MINERAL RESOURCESChapter II - BUREAU OF SAFETY AND ENVIRONMENTAL ENFORCEMENT, DEPARTMENT OF THE INTERIORSubchapter A - MINERALS REVENUE MANAGEMENTPart 203 - RELIEF OR REDUCTION IN ROYALTY RATESSubpart B - OCS OIL, GAS, AND SULFUR GENERAL
ROYALTY RELIEF FOR PRE-ACT DEEP WATER LEASES AND FOR DEVELOPMENT AND EXPANSION PROJECTS
Section 203.68 - What pre-application costs will BSEE consider in determining economic viability?

30 C.F.R. § 203.68

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Current through May 31, 2024
Section 203.68 - What pre-application costs will BSEE consider in determining economic viability?
(a) We will not consider ineligible costs as set forth in § 203.89(h) in determining economic viability for purposes of royalty relief.
(b) We will consider sunk costs according to the following table.

We will . . .When determining . . .
(1) Include sunk costs,Whether a field that includes a pre-Act lease which has not produced, other than test production, before the application or redetermination submission date needs relief to become economic.
(2) Not include sunk costs,Whether an authorized field, a development project, or an expansion project can become economic with full relief (see § 203.67 ).
(3) Not include sunk costs,How much suspension volume is necessary to make the field, a development project, or an expansion project economic (see § 203.69(c) ).
(4) Include sunk costs for the project discovery well on each lease,Whether a development project or an expansion project needs relief to become economic.

30 C.F.R. §203.68