The annual rental paid in any year is in addition to, and is not credited against, any royalties due from production. The lessee must pay an annual rental as shown in paragraphs (a), (b), and (c) of this section. Discovery means one or more wells on the lease that meet the requirements in part 250, subpart A of this title.
For- | Issued as a result of a sale held- | The lessee must pay rental- |
(1) An oil and gas lease | Before March 26, 2001 | On or before the first day of each lease year before the discovery of oil or gas on the lease. |
(2) An oil and gas lease | After March 26, 2001 | On or before the first day of each lease year before the discovery of oil or gas on the lease, then on or before the last day of each lease year in any full year in which royalties on production are not due. |
(3) A mineral lease for other than oil or gas | Before March 26, 2001 | On or before the first day of each lease year before the discovery of paying quantities. |
(4) A mineral lease for other than oil or gas | After March 26, 2001 | On or before the first day of each lease year before the date the first royalty payment is due on the lease, then on or before the last day of each lease year in any full year in which royalties on production are not due. |
If the lease results from a segregation- | The lessee must pay rental- |
(1) Before March 26, 2001 | On or before the first day of each lease year before the discovery of oil or gas on the segregated portion. |
(2) After March 26, 2001 | On or before the first day of each lease year before the discovery of oil or gas on the lease, then on or before the last day of each lease year in any full year in which royalties on production are not due. |
30 C.F.R. §1218.151