§ 203.68. What pre-application costs will BSEE consider in determining economic viability?
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/us/cfr/t30/s§ 203.68·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)We will not consider ineligible costs as set forth in § 203.89(h) in determining economic viability for purposes of royalty relief.
(b)We will consider sunk costs according to the following table. We will . . . When determining . . .
(1)Include sunk costs, ``` ``` Whether a field that includes a pre-Act lease which has not produced, other than test production, before the application or redetermination submission date needs relief to become economic.
(2)Not include sunk costs, ``` ``` Whether an authorized field, a development project, or an expansion project can become economic with full relief (see § 203.67).
(3)Not include sunk costs, ``` ``` How much suspension volume is necessary to make the field, a development project, or an expansion project economic (see § 203.69(c)).
(4)Include sunk costs for the project discovery well on each lease, ``` ``` Whether a development project or an expansion project needs relief to become economic. ``` ``` ``` ``` ```