# 30 C.F.R. § 1206.355 (2026): How do I calculate royalty due on geothermal resources I sell at arm's length to a purchaser for direct use?

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_355

## Section

- **Citation:** 30 C.F.R. § 1206.355 (2026)
- **Heading:** How do I calculate royalty due on geothermal resources I sell at arm's length to a purchaser for direct use?
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 30 CFR: Mineral Resources / Chapter XII / Part 1206 / Subpart H / § 1206.355: § 1206.355   How do I calculate royalty due on geothermal resources I sell at arm's length to a purchaser for direct use?

## Text

If you sell geothermal resources produced from Class I, II, or III leases at arm's length to a purchaser for direct use, then the royalty on the geothermal resource is the gross proceeds accruing to you from the sale of the geothermal resource to the arm's-length purchaser multiplied by the royalty rate in your lease or that BLM prescribes under 43 CFR 3211.18. See § 1206.361 for additional provisions applicable to determining gross proceeds under arm's-length sales.

## Nearby sections

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- [30 C.F.R. § 1206.351 (2026) § 1206.351   What definitions apply to this subpart?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_351.md)
- [30 C.F.R. § 1206.352 (2026) § 1206.352   How do I calculate the royalty due on geothermal resources used for commercial production or generation of electricity?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_352.md)
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- [30 C.F.R. § 1206.355 (2026) § 1206.355   How do I calculate royalty due on geothermal resources I sell at arm's length to a purchaser for direct use?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_355.md)
- [30 C.F.R. § 1206.356 (2026) § 1206.356   How do I calculate royalty or fees due on geothermal resources I use for direct use purposes?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_356.md)
- [30 C.F.R. § 1206.357 (2026) § 1206.357   How do I calculate royalty due on byproducts?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_357.md)
- [30 C.F.R. § 1206.358 (2026) § 1206.358   What are byproduct transportation allowances?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_358.md)
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- [30 C.F.R. § 1206.360 (2026) § 1206.360   What records must I keep to support my calculations of royalty or fees under this subpart?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_360.md)
- [30 C.F.R. § 1206.361 (2026) § 1206.361   How will ONRR determine whether my royalty or direct use fee payments are correct?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_361.md)
- [30 C.F.R. § 1206.362 (2026) § 1206.362   What are my responsibilities to place production into marketable condition and to market production?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_362.md)
- [30 C.F.R. § 1206.363 (2026) § 1206.363   When is an ONRR audit, review, reconciliation, monitoring, or other like process considered final?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_363.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_355. Check the current official text before relying on it. Not legal advice.