---
kind: "section"
citation: "43 C.F.R. § 3178.8"
title: "43"
number: "3178.8"
heading: "Measurement or estimation of volumes of oil or gas that are used royalty-free."
url: "https://uscodex.org/cfr/43/3178.8"
---

# §3178.8. Measurement or estimation of volumes of oil or gas that are used royalty-free.

- (a) The operator must measure or estimate the volumes of royalty-free gas used in operations upstream of the FMP.
- (b) The operator must measure the volume of gas that is removed from the product stream downstream of the FMP and used royalty-free pursuant to [sections 3178.4 through 3178.7](/cfr/43/3178.4..3178.7.md).
- (c) The operator must measure the volume of oil that is used royalty-free pursuant to [sections 3178.4 through 3178.7](/cfr/43/3178.4..3178.7.md). The operator must also document removal of such oil from the tank or pipeline.
- (d) If the operator removes oil or gas downstream of the FMP and that oil or gas is used royalty-free pursuant to [sections 3178.4 through 3178.7](/cfr/43/3178.4..3178.7.md), the operator must apply for an FMP under [section 3173.12](/cfr/43/3173.12.md) to measure the oil or gas that is removed for use.
- (e) When estimating gas volumes, the operator must use the best available information to make a reasonable estimate.
- (f) Each of the volumes required to be measured or estimated, as applicable, under this subpart, must be reported by the operator following applicable ONRR reporting requirements.

## Notes

### Source

Source: 81 FR 83078, Nov. 18, 2016, unless otherwise noted.

### Authority

Authority: 25 U.S.C. 396d and 2107; 30 U.S.C. 189, 306, 359, and 1751; and 43 U.S.C. 1732(b), 1733, and 1740.

### Source

Source: 81 FR 81421, Nov. 17, 2016, unless otherwise noted.