CFR > Title 30 - Mineral Resources > CHAPTER II—MINERALS MANAGEMENT SERVICE, DEPARTMENT OF THE INTERIOR > SUBCHAPTER B—OFFSHORE (parts 250 to 285) > PART 260—OUTER CONTINENTAL SHELF OIL AND GAS LEASING > SUBPART B—Bidding Systems (§260.101 to §260.130) > 260.120—How does royalty suspension apply to leases issued in a sale held after November 2000?

260.120—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 §§ 260.121 through 260.124:
(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.