060-22 Wyo. Code R. § 22-7 - Royalties

(a) Royalties for bentonite shall be based on the terms of the particular lease agreement, subject to all state royalty statutes and rules, and shall be based on the total consideration received for state production. The following royalty rates shall apply, unless a different rate is specifically authorized by the Board:

(i) Where the average sales price for bulk bentonite products is under twenty dollars and ninety-nine cents ($20.99), at a rate of fifty-five cents ($0.55) per ton.

(ii) Where the average sales price for bulk bentonite products is from twenty-one dollars ($21) to twenty-three dollars and ninety-nine cents ($23.99), at a rate of sixty cents ($0.60) per ton.

(iii) Where the average sales price for bulk bentonite products is twenty-four dollars ($24) and above, at a rate of sixty cents ($0.60) per ton plus five cents ($0.05) per ton for each dollar or fraction thereof above twenty-four dollars ($24).

(iv) Royalties are due on a proportionate basis for State lease production in inventory at the percentage of tons that the State lease production bears to total production in inventory for each sale.

(b) After a bentonite lease becomes an operating lease, the Board may reduce the royalty payable to the state, as to all or any of the lands or formations covered by the lease, if it determines that such a reduction is necessary to allow the lessee to undertake additional operations or to continue to operate with a reasonable expectation that the operations will be profitable. Such a reduction in the royalty payable to the state shall in all cases be conditioned upon the cancellation of all cost-free interests. The Board may also impose other conditions to the reduction in royalty.

Notes

060-22 Wyo. Code R. § 22-7