§ 556.600. What is the primary term of my oil and gas lease?
122 words·~1 min read·
/us/cfr/t30/s§ 556.600·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)The primary term of an oil and gas lease will be five years, unless BOEM determines that:
(1)The lease is located in unusually deep water or involves other unusually adverse conditions; and,
(2)A lease term longer than five years is necessary to explore and develop the lease.
(b)If BOEM determines that the criteria in paragraphs (a)(1) and
(2)of this section are met, it may specify a longer primary term, not to exceed 10 years.
(c)BOEM will specify the primary term in the final notice of sale and in the lease instrument.
(d)The lease will expire at the end of the primary term, unless maintained beyond that term in accordance with the provisions of § 556.601.