30 C.F.R. § 203.2 How can I get royalty relief?
Title 30 - Mineral Resources
We may reduce or suspend royalties for Outer Continental Shelf (OCS) leases or projects that meet the criteria in the following table. [67 FR 1872, Jan. 15, 2002]
Title 30: Mineral Resources
PART 203—RELIEF OR REDUCTION IN ROYALTY RATES
Subpart A—General Provisions
§ 203.2 How can I get royalty relief?
------------------------------------------------------------------------ Then we may grant If you have a lease . . . And if you . . . you . . .------------------------------------------------------------------------(a) With earnings that cannot Would abandon A reduced royalty sustain production (i.e., End- otherwise rate on current of-life lease). potentially monthly recoverable production and a resources but higher royalty seek to increase rate on production by additional operating beyond monthly the point at production. (See which the lease §§ is economic under 203.50 through the existing 203.56.) royalty rate.(b) Located in a designated GOM Are producing and A royalty deep water area, and acquired seek to increase suspension for in a lease sale before November ultimate resource additional 28, 1995, or after November 28, recovery from one production large 2000, and you propose in a DOCD or more enough to make or supplement to expand reservoirs not the project production significantly. previously or economic. (See currently §§ producing on the 203.60 through field or lease, 203.79.) not simply extend recovery of reservoirs that already produced. (Expansion project).(c) Located in a designated GOM Are on a field A royalty deep water area and acquired in from which no suspension for a a lease sale held before current pre-Act minimum November 28, 1995 (Pre-Act lease produced production volume lease). (other than test plus any production) additional volume before November needed to make 28, 1995 the field (Authorized economic. (See field). §§ 203.60 through 203.79.)(d) Located in a designated GOM Have not produced A royalty deep water area and acquired in and can suspension for a a lease sale held after demonstrate that minimum November 28, 2000. the suspension production volume volume, if any, plus any in your lease is additional volume not enough to needed to make make development your project economic economic. (See (Development §§ project). 203.60 through 203.79.)(e) Where royalty relief would Are not eligible A royalty recover significant additional to apply for end- modification in resources or, in certain areas of-life or deep size, duration, of the GOM, would enable water royalty or form that development. relief, but show makes your lease us you meet or project certain economic. (See elligibility § 203.80.) conditions.------------------------------------------------------------------------
