NTL 2007–G05 - Well Producibility Determinations - March 1, 2007

The purpose of this Notice to Lessees and Operators (NTL) is to provide information concerning new filing procedures in obtaining a determination of well producibility (effective with the date of the determination). This necessitates the replacement of NTL No. 2000-G04 Effective Date January 28, 2000. Changes in the lease addendums beginning with lease OCS G-22500 (Lease Sale 178) no longer transfer a lease into minimum royalty status when a well qualifies in accordance with 30 CFR 250.115 or 30 CFR 250.116. These leases remain in rental status and the annual rental payments for future lease years become payable at the end of the lease year, until the start of royalty bearing production. In the lease year that royalty bearing production begins, royalties become payable in accordance with the lease instrument which specifies the royalty rate and minimum royalty requirements.