Royalty Suspension (RS) Leases
§560.220 — How does royalty suspension apply to leases issued in a sale held after November 2000? We may issue leases with suspension of royalties for a period, volume or value of production, as authorized in section 303 of the Act. For purposes of this section and §§560.121 through 560.124:
(a) Any volumes of production that are not normally royalty-bearing under the lease or the regulations (e.g., fuel gas) do not count against royalty suspension volumes; and |
(b) Production includes volumes allocated to a lease under an approved unit agreement. |