§1202.550. How do I determine the royalty due on gas production?
30 C.F.R. § 1202.550
If you produce gas from an Indian lease subject to this subpart, you must determine and pay royalties on gas production as specified in this section.
Royalty rate. You must calculate your royalty using the royalty rate in the lease.
Payment in value or in kind. You must pay royalty in value unless:
The Tribal lessor requires payment in kind; or
You have a lease on allotted lands and ONRR requires payment in kind.
Royalty calculation. You must use the following calculations to determine royalty due on the production from or attributable to your lease.
When paid in value, the royalty due is the unit value of production for royalty purposes, determined under 30 CFR part 1206, multiplied by the volume of production multiplied by the royalty rate in the lease.
When paid in kind, the royalty due is the volume of production multiplied by the royalty rate.
Reduced royalty rate. The Indian lessor and the Secretary may approve a request for a royalty rate reduction. In your request you must demonstrate economic hardship.
Reporting and paying. You must report and pay royalties as provided in part 1218 of this title.
Notes, amendments, and revision history
Source
Source: 64 FR 43514, Aug. 10, 1999, unless otherwise noted.
Authority
Authority: 5 U.S.C. 301 et seq., 25 U.S.C. 396, 396a et seq., 398, 398a et seq., 2101 et seq.; 30 U.S.C. 181 et seq., 351 et seq., 1001 et seq., 1701 et seq.; 43 U.S.C. 1301 et seq., 1331 et seq., and 1801 et seq.
Source
Source: 48 FR 35641, Aug. 5, 1983, unless otherwise noted. Redesignated at 75 FR 61066, Oct. 4, 2010.