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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 43 - Public Lands: Interior |
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Subtitle B - Regulations Relating to Public Lands |
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Chapter II - Bureau of Land Management, Department of the Interior |
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SubChapter C - Minerals Management (3000) |
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Part 3280 - Geothermal Resources Unit Agreements |
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Subpart 3284 - Unit Operations |
§ 3284.3 - What happens if the minimum initial unit obligations are not met?
Latest version.
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§ 3284.3 What happens if the minimum initial unit obligations are not met?
(a) If the unit operator does not drill a well designed to produce or utilize geothermal resources in commercial quantities within the timeframe specified in the unit agreement, or the unit operator relinquishes the unit agreement before meeting the minimum initial unit obligations:
(1) BLM will deem the unit agreement void as though it was never in effect;
(2) BLM will deem any lease extension based upon the existence of the unit as void retroactive to the date the unit was effective; and
(3) Any lease segregations based on the unit become invalid.
(b) BLM will send the unit operator a written decision confirming that the unit agreement is void.