30 CFR § 1204.3 - What alternatives are available for marginal properties?

---
identifier: "/us/cfr/t30/s1204.3"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "30 CFR § 1204.3 - What alternatives are available for marginal properties?"
title_number: 30
title_name: "Mineral Resources"
section_number: "1204.3"
section_name: "What alternatives are available for marginal properties?"
chapter_name: "OFFICE OF NATURAL RESOURCES REVENUE, DEPARTMENT OF THE INTERIOR"
subchapter_number: "A"
subchapter_name: "NATURAL RESOURCES REVENUE"
part_number: "1204"
part_name: "ALTERNATIVES FOR MARGINAL PROPERTIES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "30 U.S.C. 1701"
regulatory_source: "69 FR 55088, Sept. 13, 2004, unless otherwise noted. Redesignated at 75 FR 61067, Oct. 4, 2010."
cfr_part: "1204"
---


# 1204.3 What alternatives are available for marginal properties?

If you have production from a marginal property, ONRR and the State may allow you the following options:

(a) *Prepay royalty.* ONRR and the State may allow you to make a lump-sum advance payment of royalties instead of monthly royalty payments for the remainder of the lease term. See subpart B for prepayment of royalty requirements.

(b) *Take accounting and auditing relief.* ONRR and the State may allow various accounting and auditing relief options to encourage you to continue to produce and develop your marginal property. See subpart C for accounting and auditing relief requirements.