Section 1206.107 - What are my responsibilities to place production into marketable condition and to market production?(a) You must place oil in marketable condition and market the oil for the mutual benefit of the lessee and the lessor at no cost to the Federal government.(b) If you use gross proceeds under an arm's-length contract in determining value, you must increase those gross proceeds to the extent that the purchaser, or any other person, provides certain services that the seller normally would be responsible to perform to place the oil in marketable condition or to market the oil.81 FR 43369, 1/1/2017; 82 FR 36953, 9/6/2017; 85 FR 62026, 10/1/2020