30 C.F.R. § 203.54 How does my relief arrangement for an oil and gas lease operate if prices rise sharply?
Title 30 - Mineral Resources
In those months when your current reference price rises by at least 25 percent above your base reference price, you must pay the effective royalty rate on all monthly production. (a) Your current reference price is a weighted average of daily closing prices on the NYMEX for light sweet crude oil and natural gas over the most recent full 12 calendar months; (b) Your base reference price is a weighted average of daily closing prices on the NYMEX for light sweet crude oil and natural gas during the qualifying months; and (c) Your weighting factors are the proportions of your total production volume (in BOE) provided by oil and gas during the qualifying months.
Title 30: Mineral Resources
PART 203—RELIEF OR REDUCTION IN ROYALTY RATES
Subpart B—OCS Oil, Gas, and Sulfur General
Royalty Relief for End-of-life Leases
§ 203.54 How does my relief arrangement for an oil and gas lease operate if prices rise sharply?
