<html> <head> <title>Rule 04:01:01:12 Cancellation because of failure to produce.</title> <META NAME="Keywords" Content="Administrative Rules 04:01:01:12"> <META NAME="Description" Content="Administrative Rules 04:01:01:12 Cancellation because of failure to produce."> <meta name=Generator content="Microsoft Office HTML Filter 2.0"> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Originator content="Microsoft Word 10"> <style> <!-- --> </style> </head> <body lang=EN-US> <div> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>4:01:01:12.&nbsp;&nbsp;Cancellation because of failure to produce.</b> After the primary term of an oil and gas lease where a lease is bound by production, the lease will be canceled unless the lessee shall commence a new well on the lease or resume commercial production from the existing well within 90 days, unless a temporary abandonment has been issued pursuant to &nbsp;52:02:04:03.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 2 SDR 36, effective November 17, 1975.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=5-7-23">5-7-23</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=5-7-37">5-7-37.</A></p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=5-7-23">5-7-23.</A></p> </div> </body> </html>