30 CFR § 1206.146 - What are my responsibilities to place production into marketable condition and to market production?
---
identifier: "/us/cfr/t30/s1206.146"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "30 CFR § 1206.146 - What are my responsibilities to place production into marketable condition and to market production?"
title_number: 30
title_name: "Mineral Resources"
section_number: "1206.146"
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"
---
# 1206.146 What are my responsibilities to place production into marketable condition and to market production?
(a) You must place gas, residue gas, and gas plant products in marketable condition and market the gas, residue gas, and gas plant products 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 to determine royalty, you must increase those gross proceeds to the extent that the purchaser, or any other person, provides certain services that you normally are responsible to perform in order to place the gas, residue gas, and gas plant products in marketable condition or to market the gas.