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2015 Interior Dec. (IBLA) 180 (2015)

handle is hein.amindian/ibla2015 and id is 1 raw text is: -~ United States Department of the Interior OFFICE OF HEARINGS AND APPEALS Interior Board of Land Appeals TAKE PRIDE* 801 N. Quincy Street, Suite 300 INAMERICA Arlington, Virginia 22203 703-235-3750 703-235-8349 (fax) ENERGY RESOURCES TECHNOLOGY GOM, INC. IBLA-2013-84 Decided January 27, 2015 Appeal from an Order to Pay of the Director, Office of Natural Resources Revenue, for unpaid rental obligations on 11 Outer Continental Shelf oil and gas leases. OCS-G 26637, et a. . .. Affirmed. 1. Oil and Gas Leases: Rentals--Outer Continental Shelf Lands Act: Oil and Gas Leases--Outer Continental Shelf Lands Act: Oil and Gas Leases: Rentals The Outer Continental Shelf Lands Act (OCSLA), at 43 U.S.C. §4 1334(c) (2006), does not provide that leases shall terminate by operation of law for failure to drill an exploratory well in the first 5 years of the lease term or failure to timely pay rental. The Department must affirmatively act to cancel a lease for failure to comply with lease provisions, including the obligation to pay rent. As nothing in the OCSLA or regulations otherwise relieves lessees of their obligation to pay rental for each lease year that commences prior to a discovery of oil and gas in paying quantities, the leases remained in their primary term, and lease rentals continued to accrue until appellant relinquished the leases. APPEARANCES: Paul J. Goodwine, Esq., and Nadege Assal6, Esq., New Orleans, Louisiana, for appellant; Matthew Ballenger, Esq., Office of the Solicitor, U.S. Department of the Interior, Washington, D.C., for the Office of Natural Resources Revenue. OPINION BY ADMINISTRATIVE JUDGE PRICE Energy Resources Technology GOM, Inc. (Energy Resources), appeals from a November 28, 2012, Order to Pay issued by the Director, Office of Natural Resources 185 IBLA 180

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