---
kind: "section"
citation: "30 U.S.C. § 305"
title: "30"
title_heading: "Mineral Lands and Mining"
number: "305"
heading: "Royalties under lease"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/30/305"
units:
  - "Chapter 5 — Lease of Oil and Gas Deposits in or under Railroads and Other Rights-Of-Way"
---

# §305. Royalties under lease


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](/usc/30/661.md?p=b-2) 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](/usc/30/661.md?p=b-2) of the Interior: Provided further, That when the daily average production of any oil well does not exceed ten barrels per day said [Secretary](/usc/30/661.md?p=b-2) may, in his discretion, reduce the royalty on subsequent production.


## Source credit

(May 21, 1930, ch. 307, § 5, 46 Stat. 374.)