CFR > Title 30 - Mineral Resources > CHAPTER VII—OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT, DEPARTMENT OF THE INTERIOR > SUBCHAPTER A—GENERAL (parts 700 to 707) > PART 1206—PRODUCT VALUATION > SUBPART H—Geothermal Resources (§1206.350 to §1206.366) > 1206.355—How do I calculate royalty due on geothermal resources I sell at arm's length to a purchaser for direct use?

1206.355—How do I calculate royalty due on geothermal resources I sell at arm's length to a purchaser for direct use?

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.