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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 30 - Mineral Resources |
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Chapter V - Bureau of Ocean Energy Management, Department of the Interior |
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SubChapter B - Offshore |
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Part 556 - Leasing of Sulfur or Oil and Gas and Bonding Requirements in the Outer Continental Shelf |
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Subpart J - Bonus or Royalty Credits for Exchange of Certain Leases |
§ 556.72 - Compensatory payments as production.
Latest version.
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If an oil and gas lessee makes compensatory payments and if the lease is not being maintained in force by other production of oil or gas in paying quantities or by other approved drilling or reworking operations, such payments shall be considered as the equivalent of production in paying quantities for all purposes of the lease.