43 CFR § 3162.2-12 - If I hold an interest in a lease, for what period will the Department assess compensatory royalty against me?

---
identifier: "/us/cfr/t43/s3162.2-12"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "43 CFR § 3162.2-12 - If I hold an interest in a lease, for what period will the Department assess compensatory royalty against me?"
title_number: 43
title_name: "Public Lands: Interior"
section_number: "3162.2-12"
section_name: "If I hold an interest in a lease, for what period will the Department assess compensatory royalty against me?"
chapter_name: "BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR"
subchapter_number: "C"
subchapter_name: "MINERALS MANAGEMENT (3000)"
part_number: "3160"
part_name: "ONSHORE OIL AND GAS OPERATIONS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "25 U.S.C. 396d and 2107; 30 U.S.C. 189, 306, 359, and 1751; 43 U.S.C. 1732(b), 1733, 1740; and Sec. 107, Pub. L. 114-74, 129 Stat. 599, unless otherwise noted."
regulatory_source: "47 FR 47765, Oct. 27, 1982, unless otherwise noted. Redesignated at 48 FR 36583, Aug. 12, 1983."
cfr_part: "3160"
---


# 3162.2-12 If I hold an interest in a lease, for what period will the Department assess compensatory royalty against me?

The Department will assess compensatory royalty beginning on the first day of the month following the earliest reasonable time we determine you should have taken protective action. You must continue to pay compensatory royalty until:

(a) You drill sufficient economic protective wells and remain in continuous production;

(b) We approve a unitization or communitization agreement that includes the mineral resources being drained;

(c) The draining well stops producing; or

(d) You relinquish your interest in the Federal or Indian lease.

[66 FR 1894, Jan. 10, 2001]