Opinion ID: 510046
Heading Depth: 2
Heading Rank: 1

Heading: The Lease Itself

Text: 13 The standard oil and gas lease issued by the government 10 and signed by these lessee-producers is fairly straightforward. The lessee-producers are required to pay 11 the lessor-government a royalty of 16 2/3 percent in amount or value of production saved, removed, or sold from the leased area. 12 The lease further provides: It is expressly agreed that the Secretary [of the DOI] may establish reasonable minimum values for purposes of computing royalty on products obtained from this lease, due consideration being given to the highest price paid for a part or for a majority of production of like quality in the same field, or area, to the price received by the lessee, to posted prices, and to other relevant matters. Each such determination shall be made only after due notice to the lessee and a reasonable opportunity has been afforded the lessee to be heard. The royalty payment is due and payable monthly on the last day of the calendar month next following the calendar month in which production is obtained. 13