1,05 



(8) such lease provides for a royalty to the lessor on oil Royalty, 

 and gas of not less than 121/2 per centum and on sulphur of 



not less than 5 per centum in amount or value of the produc- 

 tion saved, removed, or sold from the lease, or, in any case 

 in which the lease provides for a lesser royalty, the holder 

 thereof consents in writing, filed with the Secretary, to the 

 increase of the royalty to the minimum herein specified ; 



(9) the holder thereof pays to the Secretary within the 

 period or i)eriods specified in paragraph (1) of this subsec- 

 tion an amount equivalent to any severance, gross produc- 

 tion, or occupation taxes imposed by the State issuing the 

 lease on the production from the lease, less the State's royalty 

 interest in such production, between June 5, 1950, and the 

 effective date of this Act and not heretofore paid to the 

 State, and thereafter pays to the Secretary as an additional 

 royalty on the production from the lease, less the United 

 States' r'oyalty interest in such production, a sum of money 

 equal to the amount of the severance, gross production, or 

 occupation taxes which would have been payable on such 

 production to the State issuing the lease under its laws as 

 they existed on the effective date of this Act; 



(10) such lease will terminate within a i)eriod of not more 

 than five years from the effective date of this Act in the ab- 

 sence of production or operations for drilling, or, in any case 

 in which the lease provides for a longer period, the holder 

 thereof consents in writing, filed with the Secretary, to the 

 reduction of such period so that it will not exceed the maxi- 

 mum period herein specified ; and 



(11) the holder of such lease furnishes such surety bond, if 

 any, as the Secretary may require and complies with such 

 other reasonable requirements as the Secretary may deem 

 necessary to protect the interests of the United States. 



(b) Any person holding a mineral lease, which as determined 

 by the Secretary meets the requirements of subsection (a) of this 

 section, may continue to maintain such lease, and may conduct 

 operations thereunder, in accordance with (1) its provisions as to 

 the area, the minerals covered, rentals and, subject to the provi- 

 sions of paragraphs (8), (9) and (10) of subsection (a) of this 

 section, as to royalties and as to the term thereof and of any ex- 

 tensions, renewals, or replacements authorized therein or here- 

 tofore authorized by the laws of the State issaiing such lease. 

 or, if oil or gas was not being produced in paying quantities from 

 such lease on or before December 11, 1950, or if production in 

 paying quantities has ceased since June 5, 1950, or if the primary 

 term of such lease has expired since December 11, 1950, then for 

 a term from the effective date hereof equal to the term remain- 

 ing unexpired on December 11, 1950, under the provisions of such 

 lease or any extensions, renewals, or replacements authorized 

 therein, or heretofore authorized by the laws of such State, and 

 (2) such regulations as the Secretary may under section 5 of 

 this Act prescribe within ninety days after making his determi- 

 nation that such lease meets the requirements of subsection (a) 

 of this section : Provided, hoiccvcr, That any rights to sulphur Sulphur. 

 under any lease maintained under the provisions of this subsec- 

 tion shall not extend beyond the primary term of such lease or 

 any extension thereof under the provisions of such subsection 

 (b) unless sulphur is being produced in paying quantities or 

 drilling, well reworking, plant construction, or other operations 

 for the production of sulphur, as approved by the Secretary, 

 are being conducted on the area covered by such lease on the 

 date of expiration of such primary term or extension : Provided 

 further, That if sulphur is being produced in paying quantities on 

 such date, then such rights shall continue to be maintained in ac- 

 cordance with such lease and the provisions of this Act : Provided 

 further, That, if the primary term of a lease being maintained 



Termination of 

 lease. 



Surety bond. 



Maintenance 

 of lease. 



60-803 0—71- 



