---
kind: "section"
citation: "30 C.F.R. § 556.514"
title: "30"
number: "556.514"
heading: "How do I determine my production for purposes of the restricted joint bidders list?"
url: "https://uscodex.org/cfr/30/556.514"
---

# §556.514. How do I determine my production for purposes of the restricted joint bidders list?

- (a) **To determine the amount of production chargeable to you, add together—**
  - (1) Your average daily production in barrels of crude oil, natural gas liquids, and natural gas worldwide, all measured at 60 °F, using the equivalency or conversion factors for natural gas liquids and natural gas set out in 42 U.S.C. [6213(b)(2)](/usc/42/6213.md?p=b-2) and [(3)](/usc/42/6213.md?p=b-3); and
  - (2) Your proportionate share of the average daily production owned by any person that has an interest in you and/or in which you have an interest.
- (b) For the purpose of [paragraph (a)(1)](#a-1) of this section, your production includes 100 percent of production owned by:
  - (1) You;
  - (2) Every subsidiary of yours;
  - (3) Every person of which you are a subsidiary; and
  - (4) **Every subsidiary of any person of which you are a subsidiary.**
- (c) For purposes of [paragraph (a)(2)](#a-2) of this section, interest means at least a five percent ownership or control of you or the reporting person and includes any interest:
  - (1) From ownership of securities or other evidence of ownership; or,
  - (2) By participation in any contract, agreement, or understanding regarding control of the person or their production of crude oil, natural gas liquids, or natural gas.
- (d) For purposes of this section, subsidiary means a person, 50 percent or more of whose stock or other interest having power to vote for the election of a controlling body, such as directors or trustees, is directly or indirectly owned or controlled by another person.
- (e) For purposes of this section, production chargeable to you includes, but is not limited to, production obtained as a result of a production payment or a working, net profit, royalty, overriding royalty, or carried interest.
- (f) For purposes of this section, production must be measured with appropriate adjustments for:
  - (1) Basic sediment and water;
  - (2) Removal of natural gas liquids and non-hydrocarbon gases; and
  - (3) **Volume of gas returned to natural reservoirs.**

## Notes

### Authority

Authority: 31 U.S.C. 9701; 42 U.S.C. 6213; 43 U.S.C. 1334.

### Source

Source: 81 FR 18152, Mar. 30, 2016, unless otherwise noted.