Code of Federal Regulations (alpha)

CFR /  Title 30  /  Part 560  /  Sec. 560.120 How does royalty suspension apply to leases issued in a sale

We may issue leases with suspension of royalties for a period, volume or value of production, as authorized in section 303 of the Act. For purposes of this section and Sec. Sec. 560.121 through 560.124:

(a) Any volumes of production that are not normally royalty-bearing under the lease or the regulations (e.g., fuel gas) do not count against royalty suspension volumes; and

(b) Production includes volumes allocated to a lease under an approved unit agreement.