[Code of Federal Regulations]
[Title 30, Volume 2]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 30CFR203.53]

[Page 20]
 
                       TITLE 30--MINERAL RESOURCES
 
                       DEPARTMENT OF THE INTERIOR
 
PART 203--RELIEF OR REDUCTION IN ROYALTY RATES--Table of Contents
 
               Subpart B--OCS Oil, Gas, and Sulfur General
 
Sec. 203.53  What relief will MMS grant?

    (a) If we approve your application and you meet certain conditions, 
we will reduce the pre-application effective royalty rate by one-half on 
production up to the relief volume amount. If you produce more than the 
relief volume amount:
    (1) We will impose a royalty rate equal to 1.5 times the effective 
royalty rate on your additional production up to twice the relief volume 
amount; and
    (2) We will impose a royalty rate equal to the effective rate on all 
production greater than twice the relief volume amount.
    (b) Regardless of the level of production or prices (see 
Sec. 203.54), royalty payments due under end-of-life relief will not 
exceed the royalty obligations that would have been due at the effective 
royalty rate.
    (1) The effective royalty rate is the average lease rate paid on 
production during the 12 qualifying months.
    (2) The relief volume amount is the average monthly BOE production 
for the 12 qualifying months.