---
kind: "section"
citation: "43 C.F.R. § 3211.14"
title: "43"
number: "3211.14"
heading: "Will I always pay rent on my lease?"
url: "https://uscodex.org/cfr/43/3211.14"
---

# §3211.14. Will I always pay rent on my lease?

- (a) For leases issued on or after August 8, 2005 (other than leases issued in response to applications that were pending on that date for which no election is made under [§ 3200.8(b)(1)](/cfr/43/3200.8.md?p=b-1)), and for leases issued before August 8, 2005, for which an election is made under [§ 3200.7(a)(2)](/cfr/43/3200.7.md?p=a-2), you must always pay rental, whether you are in a unit or outside of a unit, whether your lease is in production or not, and whether royalties or direct use fees apply to your production.
- (b) For leases issued before August 8, 2005, for which no election is made under [§ 3200.7(a)(2)](/cfr/43/3200.7.md?p=a-2), and for leases issued in response to applications pending on that date for which no election is made under [§ 3200.8(b)(1)](/cfr/43/3200.8.md?p=b-1), you must pay rent for all the lands in your lease until:
  - (1) Your lease achieves production in commercial quantities, at which time you pay royalties; or
  - (2) Lands in your lease are within the participating area of a unit agreement or cooperative plan, at which time you pay rent for lands outside the participating area and pay royalties for lands within the participating area.

## Notes

### Authority

Authority: 30 U.S.C. 1001-1028; 43 U.S.C. 1701 et seq.; and Pub. L. 109-58.

### Source

Source: 72 FR 24400, May 2, 2007, unless otherwise noted.