Code of Federal Regulations · Section

§ 1206.355 — How Do I Calculate Royalty Due On Geothermal Resources I Sell At Arm's Length To A Purchaser For Direct Use?

30 C.F.R. § 1206.355

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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.