[Code of Federal Regulations]
[Title 30, Volume 2]
[Revised as of July 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 30CFR250.120]

[Page 254]
 
                       TITLE 30--MINERAL RESOURCES
 
                CHAPTER II--MINERALS MANAGEMENT SERVICE,
                       DEPARTMENT OF THE INTERIOR
 
PART 250--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER CONTINENTAL SHELF--Table of Contents
 
                           Subpart A--General
 
Sec. 250.120  How does injecting, storing, or treating gas affect my royalty payments?

    (a) If you produce gas from an OCS lease and inject it into a 
reservoir on the lease or unit for the purposes cited in 
Sec. 250.118(b), you are not required to pay royalties until you remove 
or sell the gas from the reservoir.
    (b) If you produce gas from an OCS lease and store it according to 
Sec. 250.119, you must pay royalty before injecting it into the storage 
reservoir.
    (c) If you produce gas from an OCS lease and treat it at an off-
lease or off-unit location, you must pay royalties when the gas is first 
produced.