Title 30 — Mineral Lands and MiningRelease 119-73
§305 Royalties under lease
Title 30 › Chapter CHAPTER 5— - LEASE OF OIL AND GAS DEPOSITS IN OR UNDER RAILROADS AND OTHER RIGHTS-OF-WAY › § 305
Summary
The Interior Secretary sets the royalties the U.S. gets on leases and agreements; they must be at least 12.5% of production and last no more than 20 years. If oil or gas comes from land beside the right-of-way, the Secretary may set any royalty and may reduce royalties on later production when wells average 10 barrels/day or less.
Full Legal Text
Title 30, §305
Mineral Lands and Mining — Source: USLM XML via OLRC
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.
Reference
Citations & Metadata
Citation
30 U.S.C. § 305
Title 30 — Mineral Lands and Mining
Last Updated
Apr 6, 2026
Release point: 119-73