43 C.F.R. Subpart 3211—Fees, Rent, and Royalties
Title 43 - Public Lands: Interior
(a) BLM calculates rents and minimum royalties based on the amount of acreage covered by your lease. First, round up any partial acreage to the next whole acre. For example, rent on a 2,456.39 acre lease is calculated based on 2,457 acres. Then multiply the total number of acres covered by your lease by the appropriate amount set out in the chart in paragraph (b) of this section to determine the amount you owe. (b) Use the following table to determine the fees, rents, and minimum royalties owed for your lease: [63 FR 52364, Sept. 30, 1998, as amended at 58875, Oct. 7, 2005] MMS must receive your annual rental payment by the anniversary date of each lease year. There is no grace period for rental payments. If the rent for your lease is not paid on time, the lease will automatically terminate by operation of law, unless you meet the conditions of 43 CFR 3213.15. See the MMS regulations in 30 CFR part 218 which explain when MMS considers a payment as received. If less than a full year remains on a lease, you still must pay a full year's rent by the anniversary date of the lease. (a) Pay BLM the first year's advance rent according to the instructions at 43 CFR 3204.12 or 3205.16. You may use a personal or cashier's check or money order made payable to the Department of the Interior—Bureau of Land Management. You may also make payments by credit card or electronic funds transfer with our prior approval. (b) For all subsequent years make your rental payments to MMS. See MMS regulations at 30 CFR part 218. Yes, BLM will prorate rents and minimum royalties payable under leases for lands in which the United States owns only a fractional mineral interest. For example, if the United States owns 50% of a 640 acre lease, you pay rent based on 320 acres. You are required to pay rent only until you achieve production in commercial quantities. At that time you begin paying royalties instead. (a) Before you begin production, if your lease is committed to an approved cooperative or unit plan, you must pay rent in accordance with 43 CFR 3211.10. (b) Once you begin production, you do not have to pay rent if the lands included in an approved cooperative or unit plan are within the participating area. These lands are subject to royalties instead, under 43 CFR 3211.16. The only exception is for unitized lands outside the participating area, which remain subject to rent under 43 CFR 3211.10. The royalty rate for production from or attributable to your lease is prescribed in your lease form. The chart at 43 CFR 3211.10 shows the minimum royalty rates. We will determine the royalty rate to include in your lease form based on the following: (a) The royalty rate for heat or energy derived from lease production may range from 10 to 15 percent of the heat or energy value; (b) Except for minerals discussed in paragraph (c) of this section, the royalty rate for the value of byproducts may not exceed five percent: (1) If derived from production under the lease; and (2) If sold or utilized or reasonably susceptible to sale or utilization. (c) The royalty rate for minerals listed in section 1 of the Mineral Leasing Act will be the same as the royalty rate for those minerals provided under BLM regulations in this Title. (d) The royalty rate for commercially demineralized water produced on a lease may not exceed 5 percent, except that BLM will not charge a royalty for water used in the operations of a utilization facility. You owe minimum royalty when BLM determines you have a well capable of commercial production but you have not begun actual production. You also owe minimum royalty when the value of actual production is so low that royalty you would pay under the scheduled rate is less than $2.00 per acre. You should make your minimum royalty payment to MMS under the regulations in 30 CFR part 218.
Title 43: Public Lands: Interior
PART 3200—GEOTHERMAL RESOURCE LEASING
Subpart 3211—Fees, Rent, and Royalties
§ 3211.10 What are the fees, rent, and minimum royalties for leases?
Fees, Rent, and Royalties------------------------------------------------------------------------ Competitive Type leases Noncompetitive leases------------------------------------------------------------------------(1) Lease Application As found in the As found in the fee Processing fee. fee schedule schedule in § in § 3000.12 of this chapter. 3000.12 of (includes future this chapter. interest leases)(2) Lease Rent.............. $2.00 per acre. $1.00 per acre.(3) Transfer of Record Title As found in the As found in the fee or Operating Rights. fee schedule schedule in § in § 3000.12 of this chapter. 3000.12 of this chapter.(4) Transfer of Interest to As found in the As found in the fee Heir or Devisee, Name fee schedule schedule in § Change, or Notification in § 3000.12 of this chapter. Corporate Merger. 3000.12 of this chapter.(5) Steam, heat, or energy Between 10% and Between 10% and 15%. royalties. 15.(6) Demineralized water 5%............. 5%. royalties.(7) Byproduct royalties..... 5%............. 5%.(8) Minimum royalty......... $2.00 per acre. $2.00 per acre.(9) Additional rent/Instead $3.00 per acre $3.00 per acre in of diligent exploration. in addition to addition to regular regular lease lease rent. rent.(9) Additional rent/Instead $3.00/year, $3.00/year, first 5 years of commercial quantities first 5 years. $6.00/year, second 5 production. $6.00/year, years. second 5 yrs.------------------------------------------------------------------------Note the exception stated in 43 CFR 3211.16(b).
§ 3211.11 When is my annual rental payment due?
§ 3211.12 How and where do I pay my rent?
§ 3211.13 Is there a different rental or minimum royalty amount for a fractional interest lease?
§ 3211.14 Will I always pay rent on my lease?
§ 3211.15 Must I pay rent if my lease is committed to an approved cooperative or unit plan?
§ 3211.16 What is the royalty rate for production from or attributable to my lease?
§ 3211.17 When do I owe minimum royalty?
