30 CFR § 1206.107 - What are my responsibilities to place production into marketable condition and to market production?

---
identifier: "/us/cfr/t30/s1206.107"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "30 CFR § 1206.107 - What are my responsibilities to place production into marketable condition and to market production?"
title_number: 30
title_name: "Mineral Resources"
section_number: "1206.107"
section_name: "What are my responsibilities to place production into marketable condition and to market production?"
chapter_name: "OFFICE OF NATURAL RESOURCES REVENUE, DEPARTMENT OF THE INTERIOR"
subchapter_number: "A"
subchapter_name: "NATURAL RESOURCES REVENUE"
part_number: "1206"
part_name: "PRODUCT VALUATION"
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 61069, Oct. 4, 2010."
cfr_part: "1206"
---


# 1206.107 What are my responsibilities to place production into marketable condition and to market production?

(a) You must place oil in marketable condition and market the oil for the mutual benefit of the lessee and the lessor at no cost to the Federal government.

(b) If you use gross proceeds under an arm's-length contract in determining value, you must increase those gross proceeds to the extent that the purchaser, or any other person, provides certain services that the seller normally would be responsible to perform to place the oil in marketable condition or to market the oil.