§ 1202.555. What portion of the gas that I produce is subject to royalty?
159 words·~1 min read·
/us/cfr/t30/s§ 1202.555·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)All gas produced from or allocated to your Indian lease is subject to royalty except the following:
(1)Gas that is unavoidably lost.
(2)Gas that is used on, or for the benefit of, the lease.
(3)Gas that is used off-lease for the benefit of the lease when the Bureau of Land Management
(BLM)approves such off-lease use.
(4)Gas used as plant fuel as provided in § 1206.179(e).
(b)You may use royalty-free only that proportionate share of each lease's production (actual or allocated) necessary to operate the production facility when you use gas for one of the following purposes:
(1)On, or for the benefit of, the lease at a production facility handling production from more than one lease with BLM's approval.
(2)At a production facility handling unitized or communitized production.
(c)If the terms of your lease are inconsistent with this subpart, your lease terms will govern to the extent of that inconsistency.