§ 1204.209. What if a property ceases to qualify for relief obtained under this subpart?
167 words·~1 min read·
/us/cfr/t30/s§ 1204.209·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)A marginal property must qualify for relief under this subpart for each calendar year based on production during the base period for that calendar year. The notice or request you provided to ONRR under § 1204.205 for the first calendar year that the property qualified for relief remains effective for successive calendar years if the property continues to qualify.
(b)If a property is no longer eligible for relief for any reason during a calendar year other than the reason under § 1204.210 or paragraph
(c)of this section, the relief for the property terminates as of December 31 of that calendar year. You must notify ONRR in writing by December 31 that the relief for the property has terminated.
(c)If you dispose of your interest in a marginal property during the calendar year, your relief terminates as of the end of the sales month in which you disposed of the property. Report and pay royalties for your production using the procedures in § 1204.202(e).