§1418 Diligence Requirements

Summary

Require licensees and permittees to carry out the work in their exploration or recovery plans and to keep developing the area without undue delay. The Administrator must set regular, reasonable spending requirements for exploration. Those spending rules will consider the size of the area and how much money is needed to start commercial recovery within the time limit the Administrator sets. The spending level must not be so high that it blocks people using cheaper technology. After a permittee starts commercial recovery, the Administrator will normally require them to keep recovering commercially for the life of the permit. For good cause—such as force majeure, bad economic conditions, or other events beyond the permittee’s control—the Administrator may allow a temporary stop. Any single suspension may not last more than one year unless the Administrator finds a reason to extend it.