43 CFR §3211.21

1. (a)You do not owe minimum royalties for:
   1. (1)Leases issued on or after August 8, 2005 (other than for leases issued in response to applications that were pending on that date for which no election is made under § 3200.8(b)(1)); and
   2. (2)Leases issued before August 8, 2005, for which an election is made under § 3200.7(a)(2).
2. (b)For leases issued before August 8, 2005, for which no election is made under § 3200.7(a)(2), and for leases issued in response to applications pending on that date for which no election is made under § 3200.8(b)(1), you owe minimum royalty of $2.00 per acre (to be paid to MMS) when:
   1. (1)You have not begun actual production following the BLM's determination that you have a well capable of commercial production; or
   2. (2)The value of actual production is so low that royalty you would pay under the scheduled rate is less than $2.00 per acre (this applies to situations of no production, as long as the lease remains in effect).