30 C.F.R. § 260.122 How long will a royalty suspension volume be effective for a lease issued in a sale held after November 2000?
Title 30 - Mineral Resources
(a) The royalty suspension volume for your RS lease will continue through the end of the month in which cumulative production from your lease reaches the applicable royalty suspension volume or the lease period ends. (b)(1) Notwithstanding any royalty suspension under this subpart, you must pay royalty at the lease stipulated rate on: (i) Any oil produced for any period stipulated in the lease during which the arithmetic average of the daily closing prices on the New York Mercantile Exchange (NYMEX) for light sweet crude oil exceeds a threshold price stipulated in the lease, or (ii) Any natural gas produced for any period stipulated in the lease during which the arithmetic average of the daily closing prices on the NYMEX for natural gas exceeds a threshold price stipulated in the lease. (2) You must pay any royalty due under this paragraph, plus late payment interest under §218.54 of this title, no later than 90 days after the end of the period for which royalty is owed. (3) Any production on which you must pay royalty under this paragraph will count toward the production volume determined under §§260.120 through 260.124. (c) If you must pay royalty on any product (either oil or natural gas) for any period under paragraph (b), you must continue to pay royalty on that product during the next succeeding period of the same length until the arithmetic average of the daily closing NYMEX prices for that product for that period can be determined. If the arithmetic average of the daily closing prices for that product for that period is less than the threshold price stipulated in the lease, you are entitled to a credit or refund of royalties paid for that period with interest under applicable law. (d) MMS will adjust the threshold oil and gas prices referred to in paragraph (b) for any period stipulated in the lease by the percentage, if any, by which the implicit price deflator for the gross domestic product changed during the preceding period.
Title 30: Mineral Resources
PART 260—OUTER CONTINENTAL SHELF OIL AND GAS LEASING
Subpart B—Bidding Systems
Royalty Suspension (RS) Leases
§ 260.122 How long will a royalty suspension volume be effective for a lease issued in a sale held after November 2000?
