30 CFR § 1206.63 - How do I determine royalty quantity and quality?

---
identifier: "/us/cfr/t30/s1206.63"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "30 CFR § 1206.63 - How do I determine royalty quantity and quality?"
title_number: 30
title_name: "Mineral Resources"
section_number: "1206.63"
section_name: "How do I determine royalty quantity and quality?"
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"
---


# 1206.63 How do I determine royalty quantity and quality?

(a) You must calculate royalties based on the quantity and quality of oil as measured at the point of royalty settlement that BLM approves.

(b) If you determine the value of oil under § 1206.52, § 1206.53, or § 1206.54 based on a quantity and/or quality that is different from the quantity and/or quality at the point of royalty settlement that BLM approves for the lease, you must adjust that value for the differences in quantity and/or quality.

(c) You may not make any deductions from the royalty volume or royalty value for actual or theoretical losses incurred before the royalty settlement point unless BLM determines that any actual loss was unavoidable.