107 



submerged lands of the outer Continental Shelf which are not 

 covered by leases meeting the requirements of subsection (a) 

 of section 6 of this Act. The bidding shall be (1) by sealed bids, 

 and (2) at the discretion of the Secretary, on the basis of a 

 cash bonus with a royalty fixed by the Secretary at not less than 

 12y2 per centum in amount or value of the production saved, 

 removed or sold, or on the basis of royalty, but at not less than 

 the per centum above mentioned, with a cash bonus fixed by the 

 Secretary. 



(b) An oil and gas lease issued by the Secretary pursuant to 

 this section shall (1) cover a compact area not exceeding five 

 thousand seven hundred and sixty acres, as the Secretary may 

 determine, (2) be for a period of five years and as long there- 

 after as oil or gas may be produced from the area in paying 

 quantities, or drilling or well reworking operations as approved 

 by the Secretary are conducted thereon, (3) require the pay- 

 ment of a royalty of not less than 12i/^ per centum, in the amount 

 or value of the production saved, removed, or sold from the 

 lease, and (4) contain such rental provisions and such other 

 terms and provisions as the Secretary may prescribe at the time 

 of offering the area for lease. 



(c) In order to meet the urgent need for further exploration 

 and development of the sulphur deposits in the submerged lands 

 of the outer Continental Shelf, the Secretary is authorized to 

 grant to the qualified persons offering the highest cash bonuses 

 on a basis of competitive bidding sulphur leases on submerged 

 lands of the outer Continental Shelf, which are not covered by 

 leases which include sulphur and meet the requirements of sub- 

 section (a) of section 6 of this Act, and which sulphur leases 

 shall be offered for bid by sealed bids and granted on separate 

 leases from oil and gas leases, and for a separate consideration, 

 and without priority or preference accorded to oil and gas lessees 

 on the same area. 



(d) A sulphur lease issued by the Secretary pursuant to this 

 section shall (1) cover an area of such size and dimensions as 

 the Secretary may determine, (2) be for a period of not more 

 than ten years and so long thereafter as sulphur may be pro- 

 duced from the area in paying quantities or drilling, well re- 

 working, plant construction, or other operations for the produc- 

 tion of sulphur, as approved by the Secretary, are conducted 

 thereon, (3) require the payment to the United States of such 

 royalty as may be specified in the lease but not less than 5 per 

 centum of the gross production or value of the sulphur at the 

 wellhead, and (4) contain such rental provisions and such other 

 terms and provisions as the Secretary may by regulation pre- 

 scribe at the time of offering the area for lease. 



(e) The Secretary is authorized to grant to the qualified per- 

 sons offering the highest cash bonuses on a basis of competitive 

 bidding leases of any mineral other than oil, gas, and sulphur 

 in any area of the outer Continental Shelf not then under lease 

 for such mineral upon such royalty, rental, and other terms and 

 conditions as the Secretary may prescribe at the time of offering 

 the area for lease. 



(f ) Notice of sale of leases, and the terms of bidding, authorized 

 by this section shall be published at least thirty days before the 

 date of sale in accordance with rules and regulations promulgated 

 by the Secretary. 



(g) All moneys paid to the Secretary for or under leases granted 

 pursuant to this section shall be deposited in the Treasury in 

 accordance with section 9 of this Act. 



(h) The issuance of any lease by the Secretary pursuant to this 

 Act, or the making of any interim arrangements by the Secretary 

 pursuant to section 7 of this Act shall not prejudice the ultimate 

 settlement or adjudication of the question as to whether or not 

 the area involved is in the outer Continental Shelf. 



Sulphur leases. 



Other mineral 

 leases. 



Notices, 

 publication. 



Deposits. 



