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43 C.F.R. § 3141.5-3   Royalties and rentals.

Title 43 - Public Lands: Interior

Title 43: Public Lands: Interior
PART 3140—LEASING IN SPECIAL TAR SAND AREAS
Subpart 3141—Competitive Leasing in Special Tar Sand Areas

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§ 3141.5-3   Royalties and rentals.

(a) The royalty rate on all combined hydrocarbon leases or tar sand leases is 121/2 percent of the value of production removed or sold from a lease. The Minerals Management Service shall be responsible for collecting and administering royalties.

(b) The lessee may request the Secretary to reduce the royalty rate applicable to tar sand prior to commencement of commercial operations in order to promote development and maximum production of the tar sand resource in accordance with procedures established by the Bureau of Land Managment and may request a reduction in the royalty after commencement of commercial operations in accordance with §3103.4–1 of this title.

(c) The rental rate for a combined hydrocarbon lease shall be $2 per acre per year, and shall be payable annually in advance.

(d) The rental rate for a tar sand lease shall be $1.50 per acre for the first 5 years and $2.00 per acre for each year thereafter.

(e) Except as explained in paragraphs (a), (b), and (c) of this section, all other provisions of §§3103.2 and 3103.3 of this title apply to combined hydrocarbon leasing.

[48 FR 7422, Feb. 18, 1983, as amended at 55 FR 12351, Apr. 3, 1990; 70 FR 58615, Oct. 7, 2005]

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