---
kind: "section"
citation: "30 C.F.R. § 1206.140"
title: "30"
number: "1206.140"
heading: "What is the purpose and scope of this subpart?"
url: "https://uscodex.org/cfr/30/1206.140"
---

# §1206.140. What is the purpose and scope of this subpart?

- (a) This subpart applies to all gas produced from Federal oil and gas leases onshore and on the Outer Continental Shelf (OCS). It explains how you, as a lessee, must calculate the value of production for royalty purposes consistent with mineral leasing laws, other applicable laws, and lease terms.
- (b) **The terms “you” and “your” in this subpart refer to the lessee.**
- (c) If the regulations in this subpart are inconsistent with a(an): Federal statute; settlement agreement between the United States and a lessee resulting from administrative or judicial litigation; written agreement between the lessee and ONRR's Director establishing a method to determine the value of production from any lease that ONRR expects would at least approximate the value established under this subpart; express provision of an oil and gas lease subject to this subpart, then the statute, settlement agreement, written agreement, or lease provision will govern to the extent of the inconsistency.
- (d) ONRR may audit and order you to adjust all royalty payments.

## Notes

### Source

Source: 85 FR 62030, Oct. 1, 2020, 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 61069, Oct. 4, 2010.