---
kind: "section"
citation: "30 C.F.R. § 1218.303"
title: "30"
number: "1218.303"
heading: "May I credit rental towards royalty?"
url: "https://uscodex.org/cfr/30/1218.303"
---

# §1218.303. May I credit rental towards royalty?

- (a)
  - (1) For Class II leases as defined in [§ 1206.351](/cfr/30/1206.351.md) of this chapter, and for Class III leases as defined in that section that elect under [43 CFR 3200.7(a)(2)](/cfr/43/3200.7.md?p=a-2) to be subject to all of the BLM regulations promulgated for leases issued after August 8, 2005 you may credit the annual rental that you paid before the first day of the year for which the annual rental is owed against the royalty due for the lease year for which the rental was paid. You may not apply any annual rental paid in excess of the royalty due for a particular lease year as a credit against any royalty due in any subsequent lease year.
  - (2) For purposes of this section, the term “royalty” includes any advanced royalty payable under [30 U.S.C. 1004(f)](/usc/30/1004.md?p=f) for a cessation of production.
- (b) If portions of your lease are located both within and outside of a participating area, you may credit against royalty under [paragraph (a)](#a) only that percentage of the rental you paid that corresponds to the percentage of the lease within the participating area on a per-acre basis.

## Notes

### Amendments

[72 FR 24468, May 2, 2007]

### Authority

Authority: 5 U.S.C. 301 et seq.; 25 U.S.C. 396 et seq., 396a et seq., 2101 et seq.; 30 U.S.C. 181 et seq., 351 et seq., 1001 et seq., 1701 et seq.; 31 U.S.C. 3335, 3711, 3716-18, 3720A, 9701; 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 61084, Oct. 4, 2010.

### Amendments

[72 FR 24468, May 2, 2007]