# 30 C.F.R. § 1206.357 (2026): How do I calculate royalty due on byproducts?

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_357

## Section

- **Citation:** 30 C.F.R. § 1206.357 (2026)
- **Heading:** How do I calculate royalty due on byproducts?
- **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 / § 1206.357: § 1206.357   How do I calculate royalty due on byproducts?

## Text

(a) If you sell byproducts, you must determine the royalty due on the byproducts that are royalty-bearing under: (1) Applicable lease terms of Class I leases and of Class III leases that do not elect to be subject to all of the BLM regulations promulgated for leases issued after August 8, 2005, under 43 CFR 3200.7(a)(2), or (2) Applicable statutory provisions at 30 U.S.C. 1004(a)(2) for Class II leases and for Class III leases that do elect to be subject to all of the BLM regulations promulgated for leases issued after August 8, 2005, under 43 CFR 3200.7(a)(2). (b) You must determine the royalty due on the byproducts by multiplying the royalty rate in your lease or that BLM prescribes under 43 CFR 3211.19 by a value of the byproducts determined in accordance with the first applicable of the following subparagraphs: (1) The gross proceeds accruing to you from the arm's-length sale of the byproducts, less any applicable byproduct transportation allowances determined under §§ 1206.358 and 1206.359. See § 1206.361 for additional provisions applicable to determining gross proceeds; (2) Other relevant matters including, but not limited to, published or publicly available spot-market prices, or information submitted by the lessee concerning circumstances unique to a particular lease operation or the saleability of certain byproducts; or (3) Any other reasonable valuation method approved by ONRR.

## Nearby sections

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_357. Check the current official text before relying on it. Not legal advice.