---
kind: "section"
citation: "43 C.F.R. § 3137.100"
title: "43"
number: "3137.100"
heading: "How must I allocate production to the United States when a participating area includes unleased Federal lands?"
url: "https://uscodex.org/cfr/43/3137.100"
---

# §3137.100. How must I allocate production to the United States when a participating area includes unleased Federal lands?

- (a) When a participating area includes unleased Federal lands, you must allocate production as if the unleased Federal lands were leased and committed to the unit agreement (see §§ [3137.80](/cfr/43/3137.80.md) and [3137.81](/cfr/43/3137.81.md) of this subpart). The obligation to pay royalty for production attributable to unleased Federal lands accrues from the later of the date the—
  - (1) Committed leases in the participating area that includes unleased Federal lands receive a production allocation; or
  - (2) **Previously leased tracts within the participating area become unleased.**
- (b) The royalty rate applicable to production allocated to unleased Federal lands is the greater of 12 1/2 percent or the highest royalty rate for any lease committed to the unit.
- (c) The value of the production must be determined under the Minerals Management Service's oil and gas product value regulations at [30 CFR part 206](/cfr/30/part206.md).

## Notes

### Source

Source: 67 FR 17886, Apr. 11, 2002, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 6508, 43 U.S.C. 1733 and 1740.

### Source

Source: 46 FR 55497, Nov. 9, 1981, unless otherwise noted.