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Current as of January 02, 2025 | Updated by Findlaw Staff
You must protect your Federal or Indian lease from drainage if your lease is being drained of mineral resources by a well:
(a) Producing for the benefit of another mineral owner;
(b) Producing for the benefit of the same mineral owner but with a lower royalty rate; or
(c) Located in a unit or communitization agreement, which due to its Federal or Indian mineral owner's allocation or participation factor, generates less revenue for the United States or the Indian mineral owner for the mineral resources produced from your lease.
Cite this article: FindLaw.com - Code of Federal Regulations Title 43. Public Lands: Interior § 43.3162.2–3 When am I responsible for protecting my Federal or Indian lease from drainage? - last updated January 02, 2025 | https://codes.findlaw.com/cfr/title-43-public-lands-interior/cfr-sect-43-3162-2-3/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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