43 C.F.R. § 3504.26 May I create overriding royalties on my Federal lease?
Title 43 - Public Lands: Interior
Yes, but: (a) BLM may order you to suspend or reduce your overriding royalties to as low as one percent if we determine your overriding royalty could: (1) Cause you to abandon your lease prematurely; or (2) Prevent mining of marginally economic or low-grade deposits. (b) Where more than one overriding royalty interest is involved, BLM will apply any suspension or reduction to these interests in the manner agreed upon by the interest holders. If there is no agreement, we will order suspensions and reductions starting with the most recent interest and continuing in reverse order of the dates the overriding interests were created. (c) If you apply for a royalty rate reduction under subpart 3513, of this part, we may request that you reduce your overriding royalties.
Title 43: Public Lands: Interior
PART 3500—LEASING OF SOLID MINERALS OTHER THAN COAL AND OIL SHALE
Subpart 3504—Fees, Rental, Royalty and Bonds
Royalties
§ 3504.26 May I create overriding royalties on my Federal lease?
