---
kind: "section"
citation: "43 C.F.R. § 3903.51"
title: "43"
number: "3903.51"
heading: "Minimum production and payments in lieu of production."
url: "https://uscodex.org/cfr/43/3903.51"
---

# §3903.51. Minimum production and payments in lieu of production.

- (a) Each lease must meet its minimum annual production amount of shale oil or make a payment in lieu of production for any particular lease year, beginning with the 10th lease year.
- (b) The minimum payment in lieu of annual production is established in the lease and will not be less than $4 per acre or fraction thereof per year, payable in advance. Production royalty payments will be credited to payments in lieu of annual production for that year only.

## Notes

### Authority

Authority: 30 U.S.C. 189, 359, and 241(a), 42 U.S.C. 15927, 43 U.S.C. 1732(b) and 1740.

### Source

Source: 73 FR 69469, Nov. 18, 2008, unless otherwise noted.