IBLA RULES BLM MAY TERMINATE LEASE WHERE WELL CANNOT CURRENTLY PRODUCE AND LESSEE FAILED TO RESTORE PRODUCTION WITHIN ALLOTTED TIME

摘要

The Interior Board of Land Appeals (IBLA), in Coronado Oil Company, 164 IBLA 107 (2004), GFS(O&G) 4(2005), affirmed the Bureau of Land Management's (BLM) order terminating a federal oil and gas lease where the last well on the lease was no longer physically capable of producing oil and gas in paying quantities and the lessee, Coronado Oil Company (Coronado), did not commence reworking or drilling operations within 60 days to restore production.