Title 30, Mineral Lands and MiningRelease 119-102
§305 Royalties Under Lease
Title 30 › CHAPTER 5 — LEASE OF OIL AND GAS DEPOSITS IN OR UNDER RAILROADS AND OTHER RIGHTS-OF-WAY › § 305
Summary
The Secretary of the Interior must set the royalty the United States gets from any lease or agreement under this chapter. The royalty must be at least 12.5 percent of the production or its value and may not be fixed for more than 20 years. If the oil or gas comes from land next to a right of way, the Secretary can choose the royalty amount. If an oil well averages 10 barrels per day or less, the Secretary may lower the royalty on later production.
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
Aug 21, 2026
Release point: 119-102