Code of Federal Regulations (Last Updated: May 6, 2024) |
Title 30 - Mineral Resources |
Chapter II - Bureau of Safety and Environmental Enforcement, Department of the Interior |
SubChapter B - Offshore |
Part 260 - OUTER CONTINENTAL SHELF OIL AND GAS LEASING |
Subpart B - Bidding Systems |
Royalty Suspension (RS) Leases |
§ 260.120 - How does royalty suspension apply to leases issued in a sale held after November 2000?
Latest version.
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We may issue leases with suspension of royalties for a period, volume or value of production, as authorized in section 303 of the Act. For purposes of this section and §§ 260.121 through 260.124:
(a) Any volumes of production that are not normally royalty-bearing under the lease or the regulations (e.g., fuel gas) do not count against royalty suspension volumes; and
(b) Production includes volumes allocated to a lease under an approved unit agreement.