Current through October 31, 2024
Section 1202.555 - What portion of the gas that I produce is subject to royalty?(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.