43 CFR § 3162.2-8 - Does my responsibility for drainage protection end when I assign or transfer my lease interest?

---
identifier: "/us/cfr/t43/s3162.2-8"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "43 CFR § 3162.2-8 - Does my responsibility for drainage protection end when I assign or transfer my lease interest?"
title_number: 43
title_name: "Public Lands: Interior"
section_number: "3162.2-8"
section_name: "Does my responsibility for drainage protection end when I assign or transfer my lease interest?"
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"
---


# 3162.2-8 Does my responsibility for drainage protection end when I assign or transfer my lease interest?

If you assign your record title interest in a lease or transfer your operating rights, you are not liable for drainage that occurs after the date we approve the assignment or transfer. However, you remain responsible for the payment of compensatory royalties for any drainage that occurred when you held the lease interest.

[66 FR 1893, Jan. 10, 2001]