---
kind: "section"
citation: "30 C.F.R. § 1206.355"
title: "30"
number: "1206.355"
heading: "How do I calculate royalty due on geothermal resources I sell at arm's length to a purchaser for direct use?"
url: "https://uscodex.org/cfr/30/1206.355"
---

# §1206.355. How do I calculate royalty due on geothermal resources I sell at arm's length to a purchaser for direct use?


If you sell geothermal resources produced from Class I, II, or III leases at arm's length to a purchaser for direct use, then the royalty on the geothermal resource is the gross proceeds accruing to you from the sale of the geothermal resource to the arm's-length purchaser multiplied by the royalty rate in your lease or that BLM prescribes under [43 CFR 3211.18](/cfr/43/3211.18.md). See [§ 1206.361](/cfr/30/1206.361.md) for additional provisions applicable to determining gross proceeds under arm's-length sales.


## Notes

### Source

Source: 72 FR 24459, May 2, 2007, 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.