30 C.F.R. § 206.53 Point of royalty settlement.
Title 30 - Mineral Resources
(a)(1) Royalties shall be computed on the quantity and quality of oil as measured at the point of settlement approved by BLM for onshore leases. (2) If the value of oil determined under §206.52 of this subpart is based upon a quantity and/or quality different from the quantity and/or quality at the point of royalty settlement approved by the BLM for onshore leases, the value shall be adjusted for those differences in quantity and/or quality. (b) No deductions may be made from the royalty volume or royalty value for actual or theoretical losses. Any actual loss that may be sustained prior to the royalty settlement metering or measurement point will not be subject to royalty provided that such actual loss is determined to have been unavoidable by BLM. (c) Except as provided in paragraph (b) of this section, royalties are due on 100 percent of the volume measured at the approved point of royalty settlement. There can be no reduction in that measured volume for actual losses beyond the approved point of royalty settlement or for theoretical losses that are claimed to have taken place either prior to or beyond the approved point of royalty settlement. Royalties are due on 100 percent of the value of the oil as provided in this subpart. There can be no deduction from the value of the oil for royalty purposes to compensate for actual losses beyond the approved point of royalty settlement or for theoretical losses that are claimed to have taken place either prior to or beyond the approved point of royalty settlement. [61 FR 5455, Feb. 12, 1996; 64 FR 43288, Aug. 10, 1999]
Title 30: Mineral Resources
PART 206—PRODUCT VALUATION
Subpart B—Indian Oil
§ 206.53 Point of royalty settlement.
