 |
Code of Federal Regulations (Last Updated: November 8, 2024) |
 |
Title 30 - Mineral Resources |
|
Chapter II - Bureau of Safety and Environmental Enforcement, Department of the Interior |
|
SubChapter A - Minerals Revenue Management |
|
Part 203 - Relief or Reduction in Royalty Rates |
|
Subpart B - OCS Oil, Gas, and Sulfur General |
|
Royalty Relief for End-of-Life Leases |
§ 203.54 - How does my relief arrangement for an oil and gas lease operate if prices rise sharply?
Latest version.
-
§ 203.54 How does my relief arrangement for an oil and gas lease operate if prices rise sharply?
In those months when your current reference price rises by at least 25 percent above your base reference price, you must pay the effective royalty rate on all monthly production.
(a) Your current reference price is a weighted average of daily closing prices on the NYMEX for light sweet crude oil and natural gas over the most recent full 12 calendar months;
(b) Your base reference price is a weighted average of daily closing prices on the NYMEX for light sweet crude oil and natural gas during the qualifying months; and
(c) Your weighting factors are the proportions of your total production volume (in BOE) provided by oil and gas during the qualifying months.