43 CFR § 3211.21 - When do I owe minimum royalty?

---
identifier: "/us/cfr/t43/s3211.21"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "43 CFR § 3211.21 - When do I owe minimum royalty?"
title_number: 43
title_name: "Public Lands: Interior"
section_number: "3211.21"
section_name: "When do I owe minimum royalty?"
chapter_name: "BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR"
subchapter_number: "C"
subchapter_name: "MINERALS MANAGEMENT (3000)"
part_number: "3200"
part_name: "GEOTHERMAL RESOURCE LEASING"
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. 1001-1028; 43 U.S.C. 1701  and Pub. L. 109-58."
regulatory_source: "72 FR 24400, May 2, 2007, unless otherwise noted."
cfr_part: "3200"
---


# 3211.21 When do I owe minimum royalty?

(a) You do not owe minimum royalties for:

(1) Leases issued on or after August 8, 2005 (other than for leases issued in response to applications that were pending on that date for which no election is made under § 3200.8(b)(1)); and

(2) Leases issued before August 8, 2005, for which an election is made under § 3200.7(a)(2).

(b) For leases issued before August 8, 2005, for which no election is made under § 3200.7(a)(2), and for leases issued in response to applications pending on that date for which no election is made under § 3200.8(b)(1), you owe minimum royalty of $2.00 per acre (to be paid to MMS) when:

(1) You have not begun actual production following the BLM's determination that you have a well capable of commercial production; or

(2) The value of actual production is so low that royalty you would pay under the scheduled rate is less than $2.00 per acre (this applies to situations of no production, as long as the lease remains in effect).