# 30 C.F.R. § 203.78 (2026): Do I keep relief approved by BSEE under this part for my lease, unit or project if prices rise significantly? > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_78 ## Section - **Citation:** 30 C.F.R. § 203.78 (2026) - **Heading:** Do I keep relief approved by BSEE under this part for my lease, unit or project if prices rise significantly? - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Title 30 CFR: Mineral Resources / Chapter II: BUREAU OF SAFETY AND ENVIRONMENTAL ENFORCEMENT, DEPARTMENT OF THE INTERIOR / Part 203: RELIEF OR REDUCTION IN ROYALTY RATES / Subpart B: OCS Oil, Gas, and Sulfur General / § 203.78: § 203.78 Do I keep relief approved by BSEE under this part for my lease, unit or project if prices rise significantly? ## Text If prices rise above a base price threshold for light sweet crude oil or natural gas, you must pay full royalties on production otherwise subject to royalty relief approved by BSEE under §§ 203.60-203.77 for your lease, unit or project as prescribed in this section. (a) The following table shows the base price threshold for various types of leases, subject to paragraph (b) of this section. Note that, for post-November 2000 deepwater leases in the GOA price thresholds apply on a lease basis, so different leases on the same development project or expansion project approved for royalty relief may have different price thresholds. For . . . The base price threshold is . . . (1) Pre-Act leases in the GOA, set by statute. (2) Post-November 2000 deep water leases in the GOA or leases offshore of Alaska for which the lease or Notice of Sale set a base price threshold, indicated in your original lease agreement or, if none, those in the Notice of Sale under which your lease was issued. (3) Post-November 2000 deep water leases in the GOA or leases offshore of Alaska for which the lease or Notice of Sale did not set a base price threshold, the threshold set by statute for pre-Act leases. (b) An exception may occur if we determine that the price thresholds in paragraphs (a)(2) or (a)(3) of this section mean the royalty suspension volume set under § 203.69 and in lease terms would provide inadequate encouragement to increase production or development, in which circumstance we could specify a different set of price thresholds on a case-by-case basis. et by statute for pre-Act leases. (b) An exception may occur if we determine that the price thresholds in paragraphs (a)(2) or (a)(3) of this section mean the royalty suspension volume set under § 203.69 and in lease terms would provide inadequate encouragement to increase production or development, in which circumstance we could specify a different set of price thresholds on a case-by-case basis. (c) Suppose your base oil price threshold set under paragraph (a) is $28.00 per barrel, and the daily closing NYMEX light sweet crude oil prices for the previous calendar year exceeds $28.00 per barrel, as adjusted in paragraph (h) of this section. In this case, we retract the royalty relief authorized in this subpart and you must: (1) Pay royalties on all oil production for the previous year at the lease stipulated royalty rate plus interest (under 30 U.S.C. 1721 and 30 CFR 1218.54) by March 31 of the current calendar year, and (2) Pay royalties on all your oil production in the current year. (d) Suppose your base gas price threshold set under paragraph (a) is $3.50 per million British thermal units (Btu), and the daily closing NYMEX light sweet crude oil prices for the previous calendar year exceeds $3.50 per million Btu, as adjusted in paragraph (h) of this section. In this case, we retract the royalty relief authorized in this subpart and you must: (1) Pay royalties on all gas production for the previous year at the lease stipulated royalty rate plus interest (under 30 U.S.C. 1721 and 30 CFR 1218.54) by March 31 of the current calendar year, and (2) Pay royalties on all your gas production in the current year. (e) Production under both paragraphs (c) and (d) of this section counts as part of the royalty-suspension volume. bpart and you must: (1) Pay royalties on all gas production for the previous year at the lease stipulated royalty rate plus interest (under 30 U.S.C. 1721 and 30 CFR 1218.54) by March 31 of the current calendar year, and (2) Pay royalties on all your gas production in the current year. (e) Production under both paragraphs (c) and (d) of this section counts as part of the royalty-suspension volume. (f) You are entitled to a refund or credit, with interest, of royalties paid on any production (that counts as part of the royalty-suspension volume): (1) Of oil if the arithmetic average of the closing prices for the current calendar year is $28.00 per barrel or less, as adjusted in paragraph (h) of this section, and (2) Of gas if the arithmetic average of the closing natural gas prices for the current calendar year is $3.50 per million Btu or less, as adjusted in paragraph (h) of this section. (g) You must follow our regulations in the Office of Natural Resources Revenue, 30 CFR chapter XII, for receiving refunds or credits. (h) We change the prices referred to in paragraphs (c), (d), and (f) of this section periodically. For pre-Act leases, these prices change during each calendar year after 1994 by the percentage that the implicit price deflator for the gross domestic product changed during the preceding calendar year. For post-November 2000 deepwater leases, these prices change as indicated in the lease instrument or in the Notice of Sale under which we issued the lease. [76 FR 64462, Oct. 18, 2011, as amended at 90 FR 44326, Sept. 15, 2025] ## Nearby sections - [30 C.F.R. § 203.30 (2026) § 203.30 Which leases are eligible for royalty relief as a result of drilling a phase 2 or phase 3 ultra-deep well?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_30.md) - [30 C.F.R. § 203.31 (2026) § 203.31 If I have a qualified phase 2 or qualified phase 3 ultra-deep well, what royalty relief would that well earn for my lease?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_31.md) - [30 C.F.R. § 203.32 (2026) § 203.32 What other requirements or restrictions apply to royalty relief for a qualified phase 2 or phase 3 ultra-deep well?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_32.md) - [30 C.F.R. § 203.33 (2026) § 203.33 To which production do I apply the RSV earned by qualified phase 2 and phase 3 ultra-deep wells on my lease or in my unit?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_33.md) - [30 C.F.R. § 203.34 (2026) § 203.34 To which production may an RSV earned by qualified phase 2 and phase 3 ultra-deep wells on my lease not be applied?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_34.md) - [30 C.F.R. § 203.35 (2026) § 203.35 What administrative steps must I take to use the RSV earned by a qualified phase 2 or phase 3 ultra-deep well?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_35.md) - [30 C.F.R. § 203.36 (2026) § 203.36 Do I keep royalty relief if prices rise significantly?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_36.md) - [30 C.F.R. § 203.40 (2026) § 203.40 Which leases are eligible for royalty relief as a result of drilling a deep well or a phase 1 ultra-deep well?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_40.md) - [30 C.F.R. § 203.41 (2026) § 203.41 If I have a qualified deep well or a qualified phase 1 ultra-deep well, what royalty relief would my lease earn?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_41.md) - [30 C.F.R. § 203.42 (2026) § 203.42 What conditions and limitations apply to royalty relief for deep wells and phase 1 ultra-deep wells?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_42.md) - [30 C.F.R. § 203.43 (2026) § 203.43 To which production do I apply the RSV earned from qualified deep wells or qualified phase 1 ultra-deep wells on my lease?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_43.md) - [30 C.F.R. § 203.44 (2026) § 203.44 What administrative steps must I take to use the royalty suspension volume?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_44.md) - [30 C.F.R. § 203.45 (2026) § 203.45 If I drill a certified unsuccessful well, what royalty relief will my lease earn?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_45.md) - [30 C.F.R. § 203.46 (2026) § 203.46 To which production do I apply the royalty suspension supplements from drilling one or two certified unsuccessful wells on my lease?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_46.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T30_P203_S203_78. 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