TITLE 30 - MINERAL RESOURCES

CHAPTER II - MINERALS MANAGEMENT SERVICE, DEPARTMENT OF THE INTERIOR

SUBCHAPTER A - ROYALTY MANAGEMENT

PART 204 - ALTERNATIVES FOR MARGINAL PROPERTIES

subpart c - ACCOUNTING AND AUDITING RELIEF

204.210 - What if a property is approved as part of a nonqualifying agreement?

If the Bureau of Land Management (BLM) or MMS's Offshore Minerals Management (OMM) retroactively approves a marginal property that qualified for relief for inclusion as part of an agreement that does not qualify for relief under this subpart, the property no longer qualifies for relief under this subpart then: (a) MMS will not retroactively rescind the marginal property relief for production from your property under 204.211; (b) Your marginal property relief terminates as of December 31 of the calendar year that you receive the BLM or OMM approval of your marginal property as part of a nonqualifying agreement; and (c) For the calendar year in which you receive the BLM or OMM approval, and for any previous period affected by the approval, the volumes on which you report and pay royalty for your lease must be amended to reflect all volumes produced on or allocated to your lease under the nonqualifying agreement as modified by BLM or OMM. Report and pay royalties for your production using the procedures in 204.202(b).

  (d) If you owe additional royalties based on the retroactive agreement approval and do not pay your royalty by the date due in 204.202(b), you will owe late payment interest determined under 30 CFR 218.54 from the date your payment was due under 204.202 (b)(2) until the date MMS receives it.