30 CFR § 1202.555 - What portion of the gas that I produce is subject to royalty?

---
identifier: "/us/cfr/t30/s1202.555"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "30 CFR § 1202.555 - What portion of the gas that I produce is subject to royalty?"
title_number: 30
title_name: "Mineral Resources"
section_number: "1202.555"
section_name: "What portion of the gas that I produce is subject to royalty?"
chapter_name: "OFFICE OF NATURAL RESOURCES REVENUE, DEPARTMENT OF THE INTERIOR"
subchapter_number: "A"
subchapter_name: "NATURAL RESOURCES REVENUE"
part_number: "1202"
part_name: "ROYALTIES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 301  25 U.S.C. 396, 396a  398, 398a  2101  30 U.S.C. 181  351  1001  1701  43 U.S.C. 1301  1331  and 1801"
regulatory_source: "48 FR 35641, Aug. 5, 1983, unless otherwise noted. Redesignated at 75 FR 61066, Oct. 4, 2010."
cfr_part: "1202"
---


# 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.