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§ 3162.2-5 Must I take protective action when a protective well would be uneconomic?

43 CFR 3162.2-5

Citation43 CFR 3162.2-5
CorpusDaily eCFR
Displayed edition2026-08-12
Last updated2026-08-12

§ 3162.2-5 Must I take protective action when a protective well would be uneconomic?

You are not required to take any of the actions listed in § 3162.2-4 if you can prove to BLM that when you first knew or had constructive notice of drainage you could not produce a sufficient quantity of oil or gas from a protective well on your lease for a reasonable profit above the cost of drilling, completing, and operating the protective well.

[66 FR 1893, Jan. 10, 2001]