---
kind: "section"
citation: "30 C.F.R. § 1202.555"
title: "30"
number: "1202.555"
heading: "What portion of the gas that I produce is subject to royalty?"
url: "https://uscodex.org/cfr/30/1202.555"
---

# §1202.555. What portion of the gas that I produce is subject to royalty?

- (a) **All gas produced from or allocated to your Indian lease is subject to royalty except the following—**
  - (1) **Gas that is unavoidably lost.**
  - (2) **Gas that is used on, or for the benefit of, the lease.**
  - (3) Gas that is used off-lease for the benefit of the lease when the Bureau of Land Management (BLM) approves such off-lease use.
  - (4) Gas used as plant fuel as provided in [§ 1206.179(e)](/cfr/30/1206.179.md?p=e).
- (b) You may use royalty-free only that proportionate share of each lease's production (actual or allocated) necessary to operate the production facility when you use gas for one of the following purposes:
  - (1) On, or for the benefit of, the lease at a production facility handling production from more than one lease with BLM's approval.
  - (2) **At a production facility handling unitized or communitized production.**
- (c) If the terms of your lease are inconsistent with this subpart, your lease terms will govern to the extent of that inconsistency.

## Notes

### 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.