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Code of Federal Regulations Title 30. Mineral Resources § 30.203.54 How does my relief arrangement for an oil and gas lease operate if prices rise sharply?

Current as of January 02, 2025 | Updated by Findlaw Staff

In those months when your current reference price rises by at least 25 percent above your base reference price, you must pay the effective royalty rate on all monthly production.

(a) Your current reference price is a weighted average of daily closing prices on the NYMEX for light sweet crude oil and natural gas over the most recent full 12 calendar months;

(b) Your base reference price is a weighted average of daily closing prices on the NYMEX for light sweet crude oil and natural gas during the qualifying months;  and

(c) Your weighting factors are the proportions of your total production volume (in BOE) provided by oil and gas during the qualifying months.

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Cite this article: FindLaw.com - Code of Federal Regulations Title 30. Mineral Resources § 30.203.54 How does my relief arrangement for an oil and gas lease operate if prices rise sharply? - last updated January 02, 2025 | https://codes.findlaw.com/cfr/title-30-mineral-resources/cfr-sect-30-203-54/

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