(a) Royalties for sand and gravel, borrow material, and rip-rap rock shall be based on the terms of the particular lease agreement, subject to all state royalty statutes and rules, and shall be based on the total consideration received for state production. The following royalty rates shall apply, unless a different rate is specifically authorized by the Board:
(b) After a sand and gravel, borrow material, and rip-rap rock lease becomes an operating lease, the Board may reduce the royalty payable to the state, as to all or any of the lands or formations covered by the lease, if it determines that such a reduction is necessary to allow the lessee to undertake additional operations or to continue to operate with a reasonable expectation that the operations will be profitable. Such a reduction in the royalty payable to the state shall in all cases be conditioned upon the cancellation of all cost-free interests. The Board may also impose other conditions to the reduction in royalty.
060-25 Wyo. Code R. § 25-7