30 CFR Part 1207

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Title 30: Mineral Resources
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PART 1207—SALES AGREEMENTS OR CONTRACTS GOVERNING THE DISPOSAL OF
LEASE PRODUCTS

Section Contents

Subpart A—General Provisions
§ 1207.1
§ 1207.2
§ 1207.3
§ 1207.4
§ 1207.5

Required recordkeeping.
Definitions.
Contracts made pursuant to new form leases.
Contracts made pursuant to old form leases.
Contract and sales agreement retention.
Subpart B—Oil, Gas, and OCS Sulfur, General [Reserved]
Subpart C—Federal and Indian Oil [Reserved]
Subpart D—Federal and Indian Gas [Reserved]
Subpart E—Solid Minerals, General [Reserved]
Subpart F—Coal [Reserved]
Subpart G—Other Solid Minerals [Reserved]
Subpart H—Geothermal Resources [Reserved]
Subpart I—OCS Sulfur [Reserved]

Authority: 5 U.S.C. 301 et seq .; 25 U.S.C. 396 et seq. ; 25 U.S.C. 396a et seq .; 25 U.S.C.
2101 et seq. ; 30 U.S.C. 181 et seq. ; 30 U.S.C. 351 et seq. ; 30 U.S.C. 1001 et seq. ; 30
U.S.C. 1701 et seq. ; 31 U.S.C. 3716 et seq. ; 31 U.S.C. 9701; 43 U.S.C. 1301 et seq. ; 43

U.S.C. 1331 et seq. ; and 43 U.S.C. 1801 et seq.
Source: 53 FR 1225, Jan. 15, 1988, unless otherwise noted. Redesignated at 75 FR 61080,
Oct. 4, 2010.
Subpart A—General Provisions
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§ 1207.1 Required recordkeeping.
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(a) The information collection and recordkeeping requirements contained in this part have been
approved by OMB under 44 U.S.C. 3501 et seq. and assigned OMB Clearance Number 1010–0061.
The information collected will be used to determine a proper transportation allowance for the cost of
transporting royalty oil from the lease to a delivery point remote from the lease. The information is
required in order to obtain a benefit and is collected in accordance with the Federal Oil and Gas Royalty
Management Act of 1982, 30 U.S.C. 1701 et seq.
(b) Public reporting burden is estimated to average 30 minutes per year for each record keeper to
maintain copies of sales contracts, agreements, or other documents relevant to the valuation of
production. Send any comments regarding this burden estimate or any other aspect of this requirement
to the Information Collection Clearance Officer, Bureau of Ocean Energy Management, Regulation, and
Enforcement, 381 Elden Street, Herndon, VA 22070, and to the Office of Information and Regulatory
Affairs, Office of Management and Budget, Paperwork Reduction Project 1010–0061, Washington, DC
20503.
[57 FR 41864, Sept. 14, 1992, as amended at 58 FR 64901, Dec. 10, 1994]

§ 1207.2 Definitions.
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The definitions in part 1206 of this title are applicable to this part.

§ 1207.3 Contracts made pursuant to new form leases.
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On November 29, 1950 (15 FR 8585), a new lease form was adopted (Form 4–1158, 15 FR 8585)
containing provisions whereby the lessee agrees that nothing in any contract or other arrangement
made for the sale or disposal of oil, gas, natural gasoline, and other products of the leased land, shall be
construed as modifying any of the provisions of the lease, including, but not limited to, provisions relating
to gas waste, taking royalty-in-kind, and the method of computing royalties due as based on a minimum
valuation and in accordance with the oil and gas valuation regulations. A contract or agreement pursuant
to a lease containing such provisions may be made without obtaining prior approval of the United States
as lessor, but must be retained as provided in §1207.5 of this subpart.

§ 1207.4 Contracts made pursuant to old form leases.
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(a) Old form leases are those containing provisions prohibiting sales or disposal of oil, gas, natural
gasoline, and other products of the lease except in accordance with a contract or other arrangement
approved by the Secretary of the Interior, or by the Director of the Bureau of Ocean Energy

Management, Regulation, and Enforcement (BOEMRE) or his/her representative. A contract or
agreement made pursuant to an old form lease may be made without obtaining approval if the contract
or agreement contains either the substance of or is accompanied by the stipulation set forth in
paragraph (b) of this section, signed by the seller (lessee or operator).
(b) The stipulation, the substance of which must be included in the contract, or be made the subject
matter of a separate instrument properly identifying the leases affected thereby, is as follows:

It is hereby understood and agreed that nothing in the written contract or in any approval
thereof shall be construed as affecting any of the relations between the United States and its
lessee, particularly in matters of gas waste, taking royalty in kind, and the method of
computing royalties due as based on a minimum valuation and in accordance with the terms
and provisions of the oil and gas valuation regulations applicable to the lands covered by said
contract.
§ 1207.5 Contract and sales agreement retention.
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Copies of all sales contracts, posted price bulletins, etc., and copies of all agreements, other contracts,
or other documents which are relevant to the valuation of production are to be maintained by the lessee
and made available upon request during normal working hours to authorized Office of Natural
Resources Revenue (ONRR), State or Indian representatives, BOEMRE or BLM officials, auditors of the
General Accounting Office, or other persons authorized to receive such documents, or shall be
submitted to ONRR within a reasonable period of time, as determined by ONRR. Any oral sales
arrangement negotiated by the lessee must be placed in written form and retained by the lessee.
Records shall be retained in accordance with 30 CFR part 1212.

Subpart B—Oil, Gas, and OCS Sulfur, General [Reserved]
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Subpart C—Federal and Indian Oil [Reserved]
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Subpart D—Federal and Indian Gas [Reserved]
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Subpart E—Solid Minerals, General [Reserved]
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Subpart F—Coal [Reserved]
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Subpart G—Other Solid Minerals [Reserved]
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Subpart H—Geothermal Resources [Reserved]

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Subpart I—OCS Sulfur [Reserved]
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