43 CFR § 3162.2-7 - Who is liable for drainage if more than one person holds undivided interests in the record title or operating rights for the same lease?

---
identifier: "/us/cfr/t43/s3162.2-7"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "43 CFR § 3162.2-7 - Who is liable for drainage if more than one person holds undivided interests in the record title or operating rights for the same lease?"
title_number: 43
title_name: "Public Lands: Interior"
section_number: "3162.2-7"
section_name: "Who is liable for drainage if more than one person holds undivided interests in the record title or operating rights for the same lease?"
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"
---


# 3162.2-7 Who is liable for drainage if more than one person holds undivided interests in the record title or operating rights for the same lease?

(a) If more than one person holds record title interests in a portion of a lease that is subject to drainage, each person is jointly and severally liable for taking any action we may require under this part to protect the lease from drainage, including paying compensatory royalty accruing during the period and for the area in which it holds its record title interest.

(b) Operating rights owners are jointly and severally liable with each other and with all record title holders for drainage affecting the area and horizons in which they hold operating rights during the period they hold operating rights.

[66 FR 1893, Jan. 10, 2001]