Code of Federal Regulations (alpha)

CFR /  Title 30  /  Part 203  /  Sec. 203.48 Do I keep royalty relief if prices rise significantly?

(a) You must pay royalties on all gas and oil production for which an RSV or an RSS otherwise would be allowed under Sec. Sec. 203.40 through 203.47 for any calendar year when the average daily closing NYMEX natural gas price exceeds the applicable threshold price shown in the following table. ------------------------------------------------------------------------For a lease located in The applicable threshold

(1) Partly or entirely before December 18, $10.15 per MMBtu,

less than 200 meters 2008, adjusted annually after

deep, calendar year 2007 for

inflation.(2) Partly or entirely after December 18, $4.55 per MMBtu, adjusted

less than 200 meters 2008, annually after calendar

deep, year 2007 for inflation

unless the lease terms

prescribe a different

price threshold.(3) Entirely more than on any date, $4.55 per MMBtu, adjusted

200 meters and annually after calendar

entirely less than year 2007 for inflation

400 meters deep, unless the lease terms

prescribe a different

price threshold.------------------------------------------------------------------------

(b) Determine the threshold price for any calendar year after 2007 by adjusting the threshold price in the previous year by the percentage that the implicit price deflator for the gross domestic product, as published by the Department of Commerce, changed during the calendar year.

(c) You must pay any royalty due under this section no later than March 31 of the year following the calendar year for which you owe royalty. If you do not pay by that date, you must pay late payment interest under 30 CFR 1218.54 from April 1 until the date of payment.

(d) Production volumes on which you must pay royalty under this section count as part of your RSV and RSS.