![]() |
Code of Federal Regulations (Last Updated: May 6, 2024) |
![]() |
Title 30 - Mineral Resources |
![]() |
Chapter II - Bureau of Safety and Environmental Enforcement, Department of the Interior |
![]() |
SubChapter A - Minerals Revenue Management |
![]() |
Part 203 - Relief or Reduction in Royalty Rates |
![]() |
Subpart B - OCS Oil, Gas, and Sulfur General |
![]() |
Royalty Relief for Pre-Act Deep Water Leases and for Development and Expansion Projects |
§ 203.68 - What pre-application costs will BSEE consider in determining economic viability?
Latest version.
-
§ 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.