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Handbooks

Minerals Revenue Reporter Handbook
Release 3.0, dated 5/1/2015

Mary Dietrick
(303) 231-3318 regarding contents.

Minerals Production Reporter Handbook
Release 2.0, dated 9/15/2014

Lee-Ann Martin
(303) 231-3313 regarding contents.

Solid Minerals Reporter Handbook
Release 1.0, dated 9/1/2015

Mike Anspach
(303) 231-3618 regarding contents.

Geothermal Payor Handbooks

Geothermal Class Lease Decision Tree

The ONRR Geothermal Payor Handbook is divided into two volumes- Geothermal Payor Handbook-Class 1 Leases and Geothermal Payor Handbook- Class 2 & 3 Leases.

In order to know which volume to use, we have written this short guide for those who need help determining which class of geothermal lease they have.

A. To determine if you have a Class 1 lease, the following are ways to find out:

1. Look at Section 2 Royalties of the lease terms on your geothermal lease, which will be form
#3200-24. It will say: “Royalty rates on production are: 10 percent for steam, heat, or energy; 5
percent for byproducts; and 5 percent for demineralized water.”
2. Have you had your lease since before August 8, 2005 and has it not been converted to the new
EPAct 2005 royalty terms?
3.Do you pay royalties using the “netback method”, or, if direct use, the “alternative fuel
method”?
If any of these apply, use the Geothermal Payor Handbook- Class 1 Leases
B. To determine if you have a Class 2 lease, the following are ways to find out:

1. Look at Section 2(a) Royalties of your lease, which will be form 3200-24(a). It will say:
“Royalty rates for geothermal resources produced for the commercial generation of electricity but
not sold in an arm’s length transaction are: 1.75 percent for the first 10 years of production and
3.5 percent after the first 10 years.”

2. Did you acquire your geothermal lease after August 8, 2005?

3. Do you pay royalties using the “percent of gross proceeds method”, or, if direct use, using the
ONRR Direct Use Fees Schedule?

If any of these apply, use the Geothermal Payor Handbook- Class 2 & 3 Leases
To determine if you have a Class 3 lease, the following are ways to find out:

3 Look at Section 2(a) Royalties of your lease, which will be form 3200-24(a). It will say:
“Royalty rates for geothermal resources produced for the commercial generation of electricity but
not sold in an arm’s length transaction are: 1.75 percent for the first 10 years of production and
3.5 percent after the first 10 years” If it was converted while producing, the royalty rates may be
a different percent of gross proceeds which would have been determined by your local BLM office.
Check with them.

4. Did you convert your geothermal lease to the new EPAct 2005 royalty terms after August, 2005?
Again, if you don’t know, check with your local BLM office.

5. Do you pay royalties using the “percent of gross proceeds method”, or, if direct use, using the
ONRR Direct Use Fees Schedule?
If any of these apply, use the Geothermal Payor Handbook- Class 2 & 3 Leases

Geothermal Payor Handbook Class 1 Leases
Dated 9/1/2017

Geothermal Payor Handbook - Class 1 Leases Entire Handbook


Geothermal Payor Handbook Class 2 & 3 Leases
Dated 9/1/2017

Geothermal Payor Handbook - Class 2 & 3 Leases Entire Handbook

Herb Black
(303) 231-3769 or....
Gina Liles
(303) 231-3256 regarding contents

Oil and Gas Payor Handbooks

Oil and Gas Indian Payor Handbook

ONRR is updating the Oil and Gas Federal Payor Handbook and creating a new Oil and Gas Indian Payor Handbook (link above) to provide guidance based on the most current regulatory language, Interior Board of Land Appeals (IBLA) rulings, and applicable judicial decisions. The existing Payor Handbook, which can be downloaded in the next tab, was last updated in 2001. Because significant regulatory changes and court decisions have taken place since the last update, some of the information within the prior handbook is no longer correct. If you have any questions about the content of the existing handbook or questions regarding valuation for royalty purposes, please contact ONRR Royalty Valuation at royaltyvaluation@onrr.gov.

ONRR is updating the Oil and Gas Federal Payor Handbook and creating a new Oil and Gas Indian Payor Handbook (link above) to provide guidance based on the most current regulatory language, Interior Board of Land Appeals (IBLA) rulings, and applicable judicial decisions. The existing Payor Handbook, which can be downloaded in the next tab, was last updated in 2001. Because significant regulatory changes and court decisions have taken place since the last update, some of the information within the prior handbook is no longer correct. If you have any questions about the content of the existing handbook or questions regarding valuation for royalty purposes, please contact ONRR Royalty Valuation at royaltyvaluation@onrr.gov.

The Oil and Gas Payor Handbook (Handbook) is guidance and is not binding on the Office of Natural Resources Revenue (ONRR) or payors. ONRR is updating the Handbook to reflect the most current regulatory language, Interior Board of Land Appeals (IBLA) rulings, and applicable judicial decisions. Payors should independently verify that the information and guidance contained in the Handbook has not been affected by intervening regulatory amendments or IBLA or judicial decisions. A list of final rules, which are binding on ONRR and payors, promulgated since the last Handbook update is available under the "Updated Rules" tab above.

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