---
kind: "section"
citation: "43 C.F.R. § 3504.20"
title: "43"
number: "3504.20"
heading: "What are the requirements for paying royalties on production?"
url: "https://uscodex.org/cfr/43/3504.20"
---

# §3504.20. What are the requirements for paying royalties on production?


You must pay royalties on any production from your lease in accordance with the terms specified in the lease. See [§ 3504.21](/cfr/43/3504.21.md) of this part for minimum royalty rates. Your royalty rate will be a percentage of the quantity or gross value of the output of the produced commodity. Apply the royalty rate to the value of the production determined under MMS regulations in [Title 30](/cfr/30.md). For asphalt, the minimum royalty is calculated on a cents-per-ton basis. You may not pay your royalty in quantity without BLM's prior approval.


## Notes

### Authority

Authority: 5 U.S.C. 552; 30 U.S.C. 189, 192c, and 209; 43 U.S.C. 1701 et seq.; and sec. 402, Reorganization Plan No. 3 of 1946 (5 U.S.C. appendix).

### Source

Source: 64 FR 53536, Oct. 1, 1999, unless otherwise noted.