30 U.S.C. § 226c : US Code - Section 226C: Reduction of royalties under existing leases

Search 30 U.S.C. § 226c : US Code - Section 226C: Reduction of royalties under existing leases

From and after August 8, 1946, the royalty obligation to the
United States under all leases requiring payment of royalty in
excess of 12 1/2 per centum, except leases issued or to be issued
upon competitive bidding, is reduced to 12 1/2 per centum in
amount or value of production removed or sold from said leases as
to (1) such leases, or such part of the lands subject thereto, and
the deposits underlying the same, as are not believed to be within
the productive limits of any oil or gas deposit, as such productive
limits are found by the Secretary to exist on August 8, 1946, and
(2) any production on a lease from an oil or gas deposit which was
discovered after May 27, 1941, by a well or wells drilled within
the boundaries of the lease, and which is determined by the
Secretary to be a new deposit; and (3) any production on or
allocated to a lease pursuant to an approved unit or cooperative
agreement from an oil or gas deposit which was discovered after May
27, 1941, on land committed to such agreement, and which is
determined by the Secretary to be a new deposit, where such lease
was included in such agreement at the time of discovery, or was
included in a duly executed and filed application for the approval
of such agreement at the time of discovery.