# 30 CFR § 203.40: Which leases are eligible for royalty relief as a result of drilling a deep well or a phase 1 ultra-deep well? > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/ecfr-30-203.40 ## Section - **Citation:** 30 CFR § 203.40 - **Heading:** Which leases are eligible for royalty relief as a result of drilling a deep well or a phase 1 ultra-deep well? - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** September 22, 2026 - **Source:** Publisher's official text - **Location:** Title 30—Mineral Resources > CHAPTER II—BUREAU OF SAFETY AND ENVIRONMENTAL ENFORCEMENT, DEPARTMENT OF THE INTERIOR > SUBCHAPTER A—MINERALS REVENUE MANAGEMENT > PART 203—RELIEF OR REDUCTION IN ROYALTY RATES > Subpart B—OCS Oil, Gas, and Sulfur General > Royalty Relief for Drilling Deep Gas Wells on Leases Not Subject to Deep Water Royalty Relief ## Text Your lease may receive an RSV under §§ 203.41 through 203.44, and may receive an RSS under §§ 203.45 through 203.47, if it meets all the requirements of this section. (a) The lease is located in the GOA wholly west of 87 degrees, 30 minutes West longitude in water depths entirely less than 400 meters deep. (b) The lease has not produced gas or oil from a well with a perforated interval the top of which is 18,000 feet TVD SS or deeper that commenced drilling either: (1) Before March 26, 2003, on a lease that is located partly or entirely in water less than 200 meters deep; or (2) Before May 18, 2007, on a lease that is located in water entirely more than 200 meters and entirely less than 400 meters deep. (c) In the case of a lease located partly or entirely in water less than 200 meters deep, the lease was issued in a lease sale held either: (1) Before January 1, 2001; (2) On or after January 1, 2001, and before January 1, 2004, and, in cases where the original lease terms provided for an RSV for deep gas production, the lessee has exercised the option provided for in § 203.49; or (3) On or after January 1, 2004, and the lease terms provide for royalty relief under §§ 203.41 through 203.47. (Note: Because the original § 203.41 has been divided into new §§ 203.41 and 203.42 and subsequent sections have been redesignated as §§ 203.43 through 203.48, royalty relief in lease terms for leases issued on or after January 1, 2004, should be read as referring to §§ 203.41 through 203.48.) (d) If the lease is located entirely in more than 200 meters and less than 400 meters of water, it must either: (1) Have been issued before November 28, 1995, and not been granted deep water royalty relief under 43 U.S.C. 1337(a)(3)(C), added by section 302 of the Deep Water Royalty Relief Act; or (2) Have been issued after November 28, 2000, and not been granted deep water royalty relief under §§ 203.60 through 203.79. [76 FR 64462, Oct. 18, 2011, as amended at 90 FR 44325, Sept. 15, 2025] ## Nearby sections - [30 CFR § 203.30 § 203.30 Which leases are eligible for royalty relief as a result of drilling a phase 2 or phase 3 ultra-deep well?](https://www.frixlaw.com/law-library/statutes/ecfr-30-203.30.md) - [30 CFR § 203.31 § 203.31 If I have a qualified phase 2 or qualified phase 3 ultra-deep well, what royalty relief would that well earn for my lease?](https://www.frixlaw.com/law-library/statutes/ecfr-30-203.31.md) - [30 CFR § 203.32 § 203.32 What other requirements or restrictions apply to royalty relief for a qualified phase 2 or phase 3 ultra-deep well?](https://www.frixlaw.com/law-library/statutes/ecfr-30-203.32.md) - [30 CFR § 203.33 § 203.33 To which production do I apply the RSV earned by qualified phase 2 and phase 3 ultra-deep wells on my lease or in my unit?](https://www.frixlaw.com/law-library/statutes/ecfr-30-203.33.md) - [30 CFR § 203.34 § 203.34 To which production may an RSV earned by qualified phase 2 and phase 3 ultra-deep wells on my lease not be applied?](https://www.frixlaw.com/law-library/statutes/ecfr-30-203.34.md) - [30 CFR § 203.35 § 203.35 What administrative steps must I take to use the RSV earned by a qualified phase 2 or phase 3 ultra-deep well?](https://www.frixlaw.com/law-library/statutes/ecfr-30-203.35.md) - [30 CFR § 203.36 § 203.36 Do I keep royalty relief if prices rise significantly?](https://www.frixlaw.com/law-library/statutes/ecfr-30-203.36.md) - [30 CFR § 203.40 § 203.40 Which leases are eligible for royalty relief as a result of drilling a deep well or a phase 1 ultra-deep well?](https://www.frixlaw.com/law-library/statutes/ecfr-30-203.40.md) - [30 CFR § 203.41 § 203.41 If I have a qualified deep well or a qualified phase 1 ultra-deep well, what royalty relief would my lease earn?](https://www.frixlaw.com/law-library/statutes/ecfr-30-203.41.md) - [30 CFR § 203.42 § 203.42 What conditions and limitations apply to royalty relief for deep wells and phase 1 ultra-deep wells?](https://www.frixlaw.com/law-library/statutes/ecfr-30-203.42.md) - [30 CFR § 203.43 § 203.43 To which production do I apply the RSV earned from qualified deep wells or qualified phase 1 ultra-deep wells on my lease?](https://www.frixlaw.com/law-library/statutes/ecfr-30-203.43.md) - [30 CFR § 203.44 § 203.44 What administrative steps must I take to use the royalty suspension volume?](https://www.frixlaw.com/law-library/statutes/ecfr-30-203.44.md) - [30 CFR § 203.45 § 203.45 If I drill a certified unsuccessful well, what royalty relief will my lease earn?](https://www.frixlaw.com/law-library/statutes/ecfr-30-203.45.md) - [30 CFR § 203.46 § 203.46 To which production do I apply the royalty suspension supplements from drilling one or two certified unsuccessful wells on my lease?](https://www.frixlaw.com/law-library/statutes/ecfr-30-203.46.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-30-203.40. Check the current official text before relying on it. Not legal advice.