If your lease is . . . | Then . . . | And . . . |
(1) Not in an agreement | The lease must qualify as a marginal property under paragraph (b) of this section | |
(2) Entirely or partly committed to one agreement | The entire agreement must qualify as a marginal property under paragraph (b) of this section | Agreement production allocable to your lease may be eligible for relief under this part. Any production from your lease that is not committed to the agreement also may be eligible for separate relief under paragraph (a)(4) of this table. |
(3) Entirely or partly committed to more than one agreement | Each agreement must qualify separately as a marginal property under paragraph (b) of this section | For any agreement that does qualify, that agreement's production allocable to your lease may be eligible for relief under this part. Any production from your lease that is not committed to an agreement also may be eligible for separate relief under paragraph (a)(4) of this table. |
(4) Partly committed to an agreement and you have production from the part of the lease that is not committed to the agreement | The part of the lease that is not committed to the agreement must qualify separately as a marginal property under paragraph (b) of this section |
30 C.F.R. § 1204.4