§ 203.74. When will BSEE reconsider its determination?
398 words·~2 min read·
/us/cfr/t30/s§ 203.74·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
You may request a redetermination after we withdraw approval or after you renounce royalty relief, unless we withdraw approval due to your providing false or intentionally inaccurate information. Under certain conditions you may also request a redetermination if we deny your application or if you want your approved royalty suspension volume to change. In these instances, to be eligible for a redetermination, at least one of the following four conditions must occur.
(a)You have significant new G data and you previously have not either requested a redetermination or reapplied for relief after we withdrew approval or you relinquished royalty relief. "Significant" means that the new G data:
(1)Results from drilling new wells or getting new three-dimensional seismic data and information (but not reinterpreting old data);
(2)Did not exist at the time of the earlier application; and
(3)Changes your estimates of gross resource size, quality, or projected flow rates enough to materially affect the results of our earlier determination.
(b)You demonstrate in your new application that the technology that most efficiently develops this field or lease was not considered or deemed feasible in the original application. Your newly proposed technology must improve the profitability, under equivalent market conditions, of the field or lease relative to the development system proposed in the prior application.
(c)Your current reference price decreases by more than 25 percent from your base reference price as calculated under this paragraph.
(1)Your current reference price is a weighted-average of daily closing prices on the NYMEX for light sweet crude oil and natural gas over the most recent full 12 calendar months;
(2)Your base reference price is a weighted average of daily closing prices on the NYMEX for light sweet crude oil and natural gas for the full 12 calendar months preceding the date of your most recently approved application for this royalty relief; and
(3)The weighting factors are the proportions of the total production volume (in BOE) for oil and gas associated with the most likely scenario (identified in §§ 203.85 and 203.88) from your most recently approved application for this royalty relief.
(d)Before starting to build your development and production system, you have revised your estimated development costs, and they are more than 120 percent of the eligible development costs associated with the most likely scenario from your most recently approved application for this royalty relief.