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81 FR 18152, Mar. 30, 2016, unless otherwise noted.
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Subscribe to: 30 CFR Part 556 Subpart F - Length of Lease
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(a) The primary term of an oil and gas lease will be five years, unless BOEM determines that:
(1) The lease is located in unusually deep water or involves other unusually adverse conditions; and,
(2) A lease term longer than five years is necessary to explore and develop the lease.
(b) If BOEM determines that the criteria in paragraphs (a)(1) and (2) of this section are met, it may specify a longer primary term, not to exceed 10 years.
(c) BOEM will specify the primary term in the final notice of sale and in the lease instrument.
(d) The lease will expire at the end of the primary term, unless maintained beyond that term in accordance with the provisions of § 556.601.
You may maintain your oil and gas lease beyond the expiration of the primary term as long as:
(a) You are producing oil or gas in paying quantities;
(b) You are conducting approved drilling or well reworking operations with the objective of establishing production in paying quantities, in accordance with 30 CFR 250.180;
(c) You are producing from, or drilling or reworking, an approved well adjacent to or adjoining your lease that extends directionally into your lease in accordance with 30 CFR 256.71;
(d) You make compensatory payments on your lease in accordance with 30 CFR 256.72;
(e) Your lease is included in a BSEE-approved unit, in accordance with 30 CFR part 250, subpart M; or
(f) Your lease is subject to a suspension of production or a suspension of operations, in accordance with 30 CFR 250.168 through 250.180, for reasons other than gross negligence or a willful violation of a provision of your lease or any governing regulations.
(a) Your sulfur lease will have a primary term of not more than 10 years, as specified in the lease.
(b) BOEM will announce the primary term prior to the lease sale.
(c) The lease will expire at the end of the primary term unless maintained beyond that term in accordance with the provisions of § 556.603.
You may maintain your sulfur lease after the primary term as long as you are producing sulfur in paying quantities, conducting drilling, well reworking or plant construction, or other operations for the production of sulfur or you are granted a suspension by BSEE; or your lease is subject to a suspension directed by BSEE for reasons other than gross negligence or a willful violation of a provision of your lease or governing regulations.