1206.60—What are the quantity and quality bases for royalty settlement?

(a) You must compute royalties on the quantity and quality of oil as measured at the point of settlement approved by BLM for the lease.

(b) If you determine the value of oil under § 1206.52, § 1206.53, or § 1206.54 of this subpart based on a quantity or quality different from the quantity or quality at the point of royalty settlement approved by BLM for the lease, you must adjust the value for those quantity or quality differences.

(c) You may not deduct from the royalty volume or royalty value actual or theoretical losses incurred before the royalty settlement point unless BLM determines that any actual loss was unavoidable.

Code of Federal Regulations

[72 FR 71244, Dec. 17, 2007]

CFR

1206.60—What are the quantity and quality bases for royalty settlement?

Code of Federal Regulations