# 30 CFR § 1202.151: Royalty on processed gas

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-30-1202.151

## Section

- **Citation:** 30 CFR § 1202.151
- **Heading:** Royalty on processed gas
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 30—Mineral Resources > CHAPTER XII—OFFICE OF NATURAL RESOURCES REVENUE, DEPARTMENT OF THE INTERIOR > SUBCHAPTER A—NATURAL RESOURCES REVENUE > PART 1202—ROYALTIES > Subpart D—Federal Gas

## Text

(a)(1) A royalty, as provided in the lease, shall be paid on the value of:
(i) Any condensate recovered downstream of the point of royalty settlement without resorting to processing; and
(ii) Residue gas and all gas plant products resulting from processing the gas produced from a lease subject to this subpart.
(2) ONRR shall authorize a processing allowance for the reasonable, actual costs of processing the gas produced from Federal leases. Processing allowances shall be determined in accordance with 30 CFR part 1206 subpart D for gas production from Federal leases and 30 CFR part 1206 subpart E for gas production from Indian leases.
(b) A reasonable amount of residue gas shall be allowed royalty free for operation of the processing plant, but no allowance shall be made for boosting residue gas or other expenses incidental to marketing, except as provided in 30 CFR part 1206. In those situations where a processing plant processes gas from more than one lease, only that proportionate share of each lease's residue gas necessary for the operation of the processing plant shall be allowed royalty free.
(c) No royalty is due on residue gas, or any gas plant product resulting from processing gas, which is reinjected into a reservoir within the same lease, unit area, or communitized area, when the reinjection is included in a plan of development or operations and the plan has received BLM or Bureau of Ocean Energy Management (BOEM) approval for onshore or offshore operations, respectively, until such time as they are finally produced from the reservoir for sale or other disposition off-lease.
[53 FR 1217, Jan. 15, 1988, as amended at 61 FR 5490, Feb. 12, 1996; 64 FR 43513, Aug. 10, 1999; 78 FR 30200, May 22, 2013]

## Nearby sections

- [30 CFR § 1202.51 § 1202.51 Scope and definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-30-1202.51.md)
- [30 CFR § 1202.52 § 1202.52 Royalties.](https://www.frixlaw.com/law-library/statutes/ecfr-30-1202.52.md)
- [30 CFR § 1202.53 § 1202.53 Minimum royalty.](https://www.frixlaw.com/law-library/statutes/ecfr-30-1202.53.md)
- [30 CFR § 1202.100 § 1202.100 Royalty on oil.](https://www.frixlaw.com/law-library/statutes/ecfr-30-1202.100.md)
- [30 CFR § 1202.101 § 1202.101 Standards for reporting and paying royalties.](https://www.frixlaw.com/law-library/statutes/ecfr-30-1202.101.md)
- [30 CFR § 1202.150 § 1202.150 Royalty on gas.](https://www.frixlaw.com/law-library/statutes/ecfr-30-1202.150.md)
- [30 CFR § 1202.151 § 1202.151 Royalty on processed gas.](https://www.frixlaw.com/law-library/statutes/ecfr-30-1202.151.md)
- [30 CFR § 1202.152 § 1202.152 Standards for reporting and paying royalties on gas.](https://www.frixlaw.com/law-library/statutes/ecfr-30-1202.152.md)
- [30 CFR § 1202.250 § 1202.250 Overriding royalty interest.](https://www.frixlaw.com/law-library/statutes/ecfr-30-1202.250.md)
- [30 CFR § 1202.350 § 1202.350 Scope and definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-30-1202.350.md)
- [30 CFR § 1202.351 § 1202.351 Royalties on geothermal resources.](https://www.frixlaw.com/law-library/statutes/ecfr-30-1202.351.md)
- [30 CFR § 1202.352 § 1202.352 Minimum royalty.](https://www.frixlaw.com/law-library/statutes/ecfr-30-1202.352.md)
- [30 CFR § 1202.353 § 1202.353 Measurement standards for reporting and paying royalties and direct use fees.](https://www.frixlaw.com/law-library/statutes/ecfr-30-1202.353.md)
- [30 CFR § 1202.550 § 1202.550 How do I determine the royalty due on gas production?](https://www.frixlaw.com/law-library/statutes/ecfr-30-1202.550.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-30-1202.151. Check the current official text before relying on it. Not legal advice.