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<br />L <br /> <br />, <br /> <br />10 <br /> <br />!!!!!!! : <br /> <br />Leases will run for 20 years or as long as the lease is producin~ <br />commercial quantities of oil. The terms of the lease may be re- <br />negotiated at intervals of 20 years. <br /> <br />Bids and Bonuses: <br /> <br />Successful bidders will be determined on the basis of bonus payments <br />for lease rights to individual tracts. The tract will be awarded to <br />the bidder offering the highest'bonus. Royalty payments will be fixed. <br />All bids will be submitted in sealed envelopes. One-fifth the total <br />bonus payment must accompany the bid offer. The remainder will be due <br />in 4 equal annual payments. The Department reserves the right to <br />reject any or all bids which it determines to be inadequate or Where <br />the bidders fail to qualify as a lessee. <br /> <br />Rentals : <br /> <br />A rental fee of 50 cents per acre per year will be charged prior to <br />production. However, rental payments may be credited against royalty <br />payments. Each lease would be for approximately 5,120 acres. <br /> <br />Royalties: <br /> <br />A royalty payment will be made on shale oil computed at 12 cents per <br />ton for oil shale containing 30 gallons of shale oil per ton. The <br />royalty rate will vary with grade of shale. Royalty payments may be <br />adjusted on an annual basis to reflect changes in the prices of crude. <br />An additional royalty payment will be made on minerals other than <br />shale oil recovered from oil shale. <br /> <br />Minimum Royalty: <br /> <br />A minimum royalty of $16 million for each 1.5 billion barrels of re- <br />coverable shale oil will be charged over a period of 20 years in lieu <br />of production. The minimum royalty will be adjusted according to the <br />estimated recoverable oil on each lease tract and according to the <br />royalty rate applicable to lease terms for the individual tract. <br /> <br />Royalty Reduction: <br /> <br />Reduction of royalty will be given for production before the 8th <br />anniversary of the lease. Reduction will amount to half the difference <br />between minimum and actual royalty. <br /> <br />Credits: <br /> <br />, <br /> <br />Certain expenditures can be credited against the last .two bonus payments <br />and minimum royalty requirements. Unanticipated environmental costs may <br />be credited against the production royalty payments. All credits are at <br />the discretion of the Secretary. <br /> <br />0232 ' <br /> <br />-~ <br />