30 U.S.C. § 305 : US Code - Section 305: Royalties under lease

Search 30 U.S.C. § 305 : US Code - Section 305: Royalties under lease

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 12 1/2 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.