§ 250.204 - Requirements for high pressure high temperature (HPHT) barrier equipment.

§ 250.204 How must I protect the rights of the Federal government?

(a) To protect the rights of the Federal government, you must either:

(1) Drill and produce the wells that the Regional Supervisor determines are necessary to protect the Federal government from loss due to production on other leases or units or from adjacent lands under the jurisdiction of other entities

Requirements for high pressure high temperature (HPHT) barrier equipment.

If you plan to install HPHT barrier equipment, you must submit information with your applicable Project Conceptual Plan, New or Unusual Technology Barrier Equipment Conceptual Plan, DWOP, and applicable permit(s) that demonstrates the equipment is fit for service in the applicable HPHT environment. You must follow the applicable DWOP Process requirements (e.g.,

State and foreign governments); or

(2) Pay a sum that the Regional Supervisor determines as adequate to compensate the Federal government for your failure to drill and produce any well.

(b) Payment under paragraph (a)(2) of this section may constitute production in paying quantities for the purpose of extending the lease term.

(c) You must complete and produce any penetrated hydrocarbon-bearing zone that the Regional Supervisor determines is necessary to conform to sound conservation practices.

§§ 250.229 and 250.242).