(a) We will not consider ineligible costs as set forth in § 203.89(h) in determining economic viability for purposes of royalty relief.
(b) We will consider sunk costs according to the following table.
| We will . . . | When determining . . . |
|---|---|
| (1) Include sunk costs, | Whether a field that includes a pre-Act lease which has not produced, other than test production, before the application or redetermination submission date needs relief to become economic. |
| (2) Not include sunk costs, | Whether an authorized field, a development project, or an expansion project can become economic with full relief (see § 203.67). |
| (3) Not include sunk costs, | How much suspension volume is necessary to make the field, a development project, or an expansion project economic (see § 203.69(c)). |
| (4) Include sunk costs for the project discovery well on each lease, | Whether a development project or an expansion project needs relief to become economic. |