30 CFR § 1206.355 - How do I calculate royalty due on geothermal resources I sell at arm's length to a purchaser for direct use?

---
identifier: "/us/cfr/t30/s1206.355"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "30 CFR § 1206.355 - How do I calculate royalty due on geothermal resources I sell at arm's length to a purchaser for direct use?"
title_number: 30
title_name: "Mineral Resources"
section_number: "1206.355"
section_name: "How do I calculate royalty due on geothermal resources I sell at arm's length to a purchaser for direct use?"
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"
---


# 1206.355 How do I calculate royalty due on geothermal resources I sell at arm's length to a purchaser for direct use?

If you sell geothermal resources produced from Class I, II, or III leases at arm's length to a purchaser for direct use, then the royalty on the geothermal resource is the gross proceeds accruing to you from the sale of the geothermal resource to the arm's-length purchaser multiplied by the royalty rate in your lease or that BLM prescribes under 43 CFR 3211.18. See § 1206.361 for additional provisions applicable to determining gross proceeds under arm's-length sales.