[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: 30CFR203.54]

[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. 203.54  How does my relief arrangement for an oil and gas lease operate if prices rise sharply?

    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.