(a) After you establish a participating area, if you do not meet a continuing development obligation and BLM has not granted you an extension of time to meet the obligation, the unit contracts. This means that—
- (1) All areas within the unit that do not have participating areas established are eliminated from the unit. Any eliminated areas are subject to their original lease terms; and
- (2) Only established participating areas, whether they are actually producing or not, remain in the unit.
- (b) Units contract effective the first day of the month after the date on which the unit agreement required the continuing development obligations to begin.
- (c) If you do not meet a continuing development obligation before you establish a participating area, the unit terminates (see § 3137.132 of this subpart).