Cal. Code Regs. tit. 2 § 2160

Current through Register 2024 Notice Reg. No. 50, December 13, 2024

Section 2160 - Delivery and Dehydration Costs

The lessee, where so provided in the lease, shall be reimbursed for the actual allowable cost of dehydration of the royalty share of crude oil and, in the case of offshore leases, for the actual cost of delivery of the royalty share of crude oil to onshore storage and transportation facilities. Only those costs approved by the State in writing shall be allowed. The Commission shall select, prior to the bid offer, one of the methods listed below:

(a) The State shall reimburse the lessee monthly for such costs upon submission of an invoice by the lessee.

(b) The purchaser shall monthly, or as designated by the State, reimburse the lessee for such costs. Such costs may be deducted by the purchaser from the amounts to be submitted to the State pursuant to the sales contract.

Cal. Code Regs. Tit. 2, § 2160