30 U.S.C. § 305 — Royalties under lease
submitted 96 years ago by ch. 307 to r/title-30-MINERAL-LANDS-AND-MINING · 129 words · no verdicts yet
The Secretary of the Interior sets the royalty rate for oil and gas leases under this law. The rate must be at least 12½ percent of the production's value, and leases can't run longer than 20 years. The Secretary has extra discretion over royalties for land near rights of way and low-producing wells.
The Secretary of the Interior sets the royalty the United States gets under any lease or agreement made under this chapter. That royalty can't be less than 12½ percent of the value or amount of production, and the lease can't run more than 20 years. If the oil or gas comes from land next to a right of way, the Secretary has full discretion over the royalty amount. And if a well produces an average of 10 barrels a day or less, the Secretary may, at his discretion, reduce the royalty on what it produces after that.
The royalty to be paid to the United States under any lease to be issued, or agreement made pursuant to this chapter, shall be determined by the Secretary of the Interior, in no case to be less than 12½ per centum in amount or value of the production, nor for more than twenty years: Provided, That when the oil or gas is produced from land adjacent to the right of way the amount or value of the royalty to be paid to the United States shall be within the discretion of the Secretary of the Interior: Provided further, That when the daily average production of any oil well does not exceed ten barrels per day said Secretary may, in his discretion, reduce the royalty on subsequent production.
Source credit: (May 21, 1930, ch. 307, § 5, 46 Stat. 374.)
- 1930Enacted · Act of May 21, 1930, ch. 307 · 46 Stat. 374
A history note hasn’t been published yet. The record shows enactment by ch. 307 on 1930-05-21.
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