43 CFR 3103.4-1 - Royalty reductions.

§ 3103.4-1 Royalty reductions.
(a) In order to encourage the greatest ultimate recovery of oil or gas and in the interest of conservation, the Secretary, upon a determination that it is necessary to promote development or that the leases cannot be successfully operated under the terms provided therein, may waive, suspend or reduce the rental or minimum royalty or reduce the royalty on an entire leasehold, or any portion thereof.
(b)
(1) An application for the benefits under paragraph (a) of this section must be filed by the operator/payor in the proper BLM office. The application must contain the serial number of the leases, the names of the record title holders, operating rights owners (sublessees), and operators for each lease, the description of lands by legal subdivision and a description of the relief requested.
(2) Each application shall show the number, location and status of each well drilled, a tabulated statement for each month covering a period of not less than 6 months prior to the date of filing the application of the aggregate amount of oil or gas subject to royalty, the number of wells counted as producing each month and the average production per well per day.
(3) Every application shall contain a detailed statement of expenses and costs of operating the entire lease, the income from the sale of any production and all facts tending to show whether the wells can be successfully operated upon the fixed royalty or rental. Where the application is for a reduction in royalty, full information shall be furnished as to whether overriding royalties, payments out of production, or similar interests are paid to others than the United States, the amounts so paid and efforts made to reduce them. The applicant shall also file agreements of the holders to a reduction of all other royalties or similar payments from the leasehold to an aggregate not in excess of one-half the royalties due the United States.
(c) Petition may be made for reduction of royalty under § 3108.2-3(f) for leases reinstated under § 3108.2-3 of this title and under § 3108.2-4(i) for noncompetitive leases issued under § 3108.2-4 of this title. Petitions to waive, suspend or reduce rental or minimum royalty for leases reinstated under § 3108.2-3 of this title or for leases issued under § 3108.2-4 of this title may be made under this section.
[48 FR 33662, July 22, 1983; 48 FR 39225, Aug. 30, 1983, as amended at 49 FR 30448, July 30, 1984; 53 FR 17354, May 16, 1988; 57 FR 35973, Aug. 11, 1992; 61 FR 4750, Feb. 8, 1996; 75 FR 61626, Oct. 6, 2010]

Title 43 published on 2014-10-01

no entries appear in the Federal Register after this date.

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

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United States Code
U.S. Code: Title 30 - MINERAL LANDS AND MINING

§ 181 - Lands subject to disposition; persons entitled to benefits; reciprocal privileges; helium rights reserved

§ 182 - Lands disposed of with reservation of deposits of coal, etc.

§ 183 - Cancellation of prospecting permits

§ 184 - Limitations on leases held, owned or controlled by persons, associations or corporations

§ 184a - Authorization of States to include in agreements for conservation of oil and gas resources lands acquired from United States

§ 185 - Rights-of-way for pipelines through Federal lands

§ 186 - Reservation of easements or rights-of-way for working purposes; reservation of right to dispose of surface of lands; determination before offering of lease; easement periods

§ 187 - Assignment or subletting of leases; relinquishment of rights under leases; conditions in leases for protection of diverse interests in operation of mines, wells, etc.; State laws not impaired

§ 187a - Oil or gas leases; partial assignments

§ 187b - Oil or gas leases; written relinquishment of rights; release of obligations

§ 188 - Failure to comply with provisions of lease

§ 188a - Surrender of leases

§ 189 - Rules and regulations; boundary lines; State rights unaffected; taxation

§ 190 - Oath; requirement; form; blanks

§ 191 - Disposition of moneys received

§ 191a - Late payment charges under Federal mineral leases

§ 191b - Collection of unpaid and underpaid royalties and late payment interest owed by lessees

§ 192 - Payment of royalties in oil or gas; sale of such oil or gas

§ 192a - Cancellation or modification of contracts

§ 192b - Application to contracts

§ 192c - Rules and regulations governing issuance of certain leases; disposition of receipts

§ 193 - Disposition of deposits of coal, and so forth

§ 193a - Preference right of United States to purchase coal for Army and Navy; price for coal; civil actions; jurisdiction

§ 194 - Repealed.

§ 195 - Enforcement

§ 196 - Cooperative agreements; delegation of authority

§ 351 - Definitions

§ 352 - Deposits subject to lease; consent of department heads; lands excluded

§ 353 - Sale of lands unaffected; reservation of mineral rights; sale subject to prior lease; naval petroleum reserves unaffected

§ 354 - Lease of partial or future interests in deposits

§ 355 - Disposition of receipts

§ 356 - Furnishing description of lands and title documents; recordation of documents; authenticated copies

§ 357 - State or local government rights; taxation

§ 358 - Rights under prior leases; priority of pending applications; exchange of leases

§ 359 - Rules and regulations

§ 1713 - Required recordkeeping

§ 1751 - Secretarial authority

U.S. Code: Title 43 - PUBLIC LANDS
Public Laws