---
kind: "section"
citation: "30 C.F.R. § 1204.3"
title: "30"
number: "1204.3"
heading: "What alternatives are available for marginal properties?"
url: "https://uscodex.org/cfr/30/1204.3"
---

# §1204.3. What alternatives are available for marginal properties?


If you have production from a marginal property, ONRR and the State may allow you the following options:

- (a) **Prepay royalty.** ONRR and the State may allow you to make a lump-sum advance payment of royalties instead of monthly royalty payments for the remainder of the lease term. See subpart B for prepayment of royalty requirements.
- (b) **Take accounting and auditing relief.** ONRR and the State may allow various accounting and auditing relief options to encourage you to continue to produce and develop your marginal property. See subpart C for accounting and auditing relief requirements.

## Notes

### Authority

Authority: 30 U.S.C. 1701 et seq.

### Source

Source: 69 FR 55088, Sept. 13, 2004, unless otherwise noted. Redesignated at 75 FR 61067, Oct. 4, 2010.