---
kind: "section"
citation: "43 C.F.R. § 3211.21"
title: "43"
number: "3211.21"
heading: "When do I owe minimum royalty?"
url: "https://uscodex.org/cfr/43/3211.21"
---

# §3211.21. When do I owe minimum royalty?

- (a) **You do not owe minimum royalties for—**
  - (1) Leases issued on or after August 8, 2005 (other than for 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
  - (2) 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).
- (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 owe minimum royalty of $2.00 per acre (to be paid to MMS) when:
  - (1) You have not begun actual production following the BLM's determination that you have a well capable of commercial production; or
  - (2) The value of actual production is so low that royalty you would pay under the scheduled rate is less than $2.00 per acre (this applies to situations of no production, as long as the lease remains in effect).

## 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.