43 C.F.R. § 3162.2-1
Drilling and producing obligations
(a) The operator, at its election, may drill and produce other wells in conformity with any system of well spacing or production allotments affecting the field or area in which the leased lands are situated, and which is authorized and sanctioned by applicable law or by the authorized officer.
(b) After notice in writing, the lessee(s) and operating rights owner(s) shall promptly drill and produce such other wells as the authorized officer may reasonably require in order that the lease may be properly and timely developed and produced in accordance with good economic operating practices.
Notes of Decisions
Cited in 2
cases (1 in the last 5 years), 2008–2022 · leading case: San Juan Citizens All. v. Norton, 586 F. Supp. 2d 1270 (D.N.M. 2008).
San Juan Citizens All. v. Norton, 586 F. Supp. 2d 1270 (D.N.M. 2008). “43 C.F.R. § 3162.2-1 . Essentially, BLM concluded that the leaseholders have paid the government for the *1285 right to extract minerals covered by those leases, and the government has entered into contracts to permit leaseholders to develop the resources.”
Birdbear v. United States (Fed. Cl. 2022). “See 43 C.F.R. § 3162.2-1 . It states that lessees “shall promptly drill and produce such other wells as the authorized officer may reasonably require in order that the lease may be properly and timely developed and produced in accordance with good economic operating practices.”
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