Section 3211.21 - When do I owe minimum royalty?(a) You do not owe minimum royalties for:(1) Leases issued on or after August 8, 2005 (other than for leases issued in response to applications that were pending on that date for which no election is made under § 3200.8(b)(1) ); and(2) Leases issued before August 8, 2005, for which an election is made under § 3200.7(a)(2) .(b) For leases issued before August 8, 2005, for which no election is made under § 3200.7(a)(2) , and for leases issued in response to applications pending on that date for which no election is made under § 3200.8(b)(1) , you owe minimum royalty of $2.00 per acre (to be paid to MMS) when: (1) You have not begun actual production following the BLM's determination that you have a well capable of commercial production; or(2) The value of actual production is so low that royalty you would pay under the scheduled rate is less than $2.00 per acre (this applies to situations of no production, as long as the lease remains in effect).