NTL 1998-G15 - Time Allowed Between Lease Holding Operations (30 CFR 250.113) - August 10, 1998

This Notice To Lessees and Operators (NTL) supersedes and updates NTL No. 96-09 and cited regulatory authorities and includes a statement regarding the Paperwork Reduction Act of 1995. Pursuant to 30 CFR 250.113, Minerals Management Service (MMS) has extended the time allowed between lease holding operations to 180 days. However, questions may arise concerning what qualify as lease holding operations. This Regulation states that a drilling or well-reworking program must be part of a plan that has as its objective continuous production of the lease. Therefore, MMS will closely monitor well workover activities in the light of continuous production objectives. Additionally, short-term production may not qualify as a lease holding operation. Simply putting a lease on production for a short duration, unless it is part of a plan that results in continuous production, may not extend the lease term by 180 days. Operators should seek clarification of their plan on a case-by-case basis rather than assume that producing a minimum quantity will constitute lease holding activity.