§212 Surveys; royalties; time payable; annual rentals; term of leases; readjustment on renewals; minimum production; suspension of operation

Summary

Each lease must describe the land by the legal subdivisions used in public land surveys. Leases must require payment of royalties set in advance by the Secretary of the Interior of at least 5% of the gross value of phosphates, phosphate rock, and related minerals. Royalties are due monthly or quarterly, on the last day of the month after the month or quarter in which the minerals are sold or removed. Annual rental payments must also be made: at least $0.25 per acre for year one, $0.50 per acre for years two and three, and $1.00 per acre each year after; those rentals count toward that year’s royalties. Leases run for 20 years and keep going while the lessee follows the lease. At each 20-year mark the Secretary may reasonably change the lease terms unless another law says otherwise. Leases must require a minimum yearly production or payment of a minimum royalty instead. Exceptions apply if production stops because of strikes, weather, or other events not caused by the lessee. The Secretary may allow suspension of operations when market conditions would force a loss.