43 C.F.R. § 3212.18

Current through October 31, 2024

Section 3212.18 - What are the production incentives for leases?

You will receive a production incentive in the form of a temporary 50 percent reduction in your royalties under MMS regulations at 30 CFR 218.307 if:

(a) Your lease was in effect prior to August 8, 2005;

(b) You do not convert the royalty rates of your lease under § 3212.25 ;

(c) By August 7, 2011, production from or allocated to your lease is utilized for commercial production in a:

(1) New facility (see § 3212.22 ); or

(2) Qualified expansion project (see § 3212.21 ); and

(d) The production from your lease is used for the commercial generation of electricity.

43 C.F.R. §3212.18