---
kind: "section"
citation: "30 C.F.R. § 250.120"
title: "30"
number: "250.120"
heading: "How does injecting, storing, or treating gas affect my royalty payments?"
url: "https://uscodex.org/cfr/30/250.120"
---

# §250.120. How does injecting, storing, or treating gas affect my royalty payments?

- (a) If you produce gas from an OCS lease and inject it into a reservoir on the lease or unit for the purposes cited in [§ 250.118(b)](/cfr/30/250.118.md?p=b), you are not required to pay royalties until you remove or sell the gas from the reservoir.
- (b) If you produce gas from an OCS lease and store it according to [30 CFR 550.119](/cfr/30/550.119.md), you must pay royalty before injecting it into the storage reservoir.
- (c) If you produce gas from an OCS lease and treat it at an off-lease or off-unit location, you must pay royalties when the gas is first produced.

## Notes

### Authority

Authority: 30 U.S.C. 1751, 31 U.S.C. 9701, 33 U.S.C. 1321(j)(1)(C), 43 U.S.C. 1334.

### Source

Source: 76 FR 64462, Oct. 18, 2011, unless otherwise noted.