Page:United States Statutes at Large Volume 119.djvu/688

 119 STAT. 670

PUBLIC LAW 109–58—AUG. 8, 2005 an aggregate number of 10 years beginning on the date production ceases, if, during the period in which production is ceased, the lessee pays royalties in advance at the monthly average rate at which the royalty was paid during the period of production. ‘‘(2) REDUCTION.—The amount of any production royalty paid for any year shall be reduced (but not below 0) by the amount of any advanced royalties paid under the lease to the extent that the advance royalties have not been used to reduce production royalties for a prior year. ‘‘(3) EXCEPTIONS.—Paragraph (1) shall not apply if the cessation in production is required or otherwise caused by— ‘‘(A) the Secretary; ‘‘(B) the Secretary of the Air Force; ‘‘(C) the Secretary of the Army; ‘‘(D) the Secretary of the Navy; ‘‘(E) a State or a political subdivision of a State; or ‘‘(F) a force majeure.’’.

SEC. 233. ANNUAL RENTAL.

(a) ANNUAL RENTAL RATE.—Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as amended by section 223(a)) is further amended in subsection (a) by striking paragraph (3) and inserting the following: ‘‘(3) payment in advance of an annual rental of not less than— ‘‘(A) for each of the 1st through 10th years of the lease— ‘‘(i) in the case of a lease awarded in a noncompetitive lease sale, $1 per acre or fraction thereof; or ‘‘(ii) in the case of a lease awarded in a competitive lease sale, $2 per acre or fraction thereof for the 1st year and $3 per acre or fraction thereof for each of the 2nd through 10th years; and ‘‘(B) for each year after the 10th year of the lease, $5 per acre or fraction thereof;’’. (b) TERMINATION OF LEASE FOR FAILURE TO PAY RENTAL.— Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as amended by sections 223, 224, 230, and 232) is further amended by adding at the end the following: ‘‘(g) TERMINATION OF LEASE FOR FAILURE TO PAY RENTAL.— ‘‘(1) IN GENERAL.—The Secretary shall terminate any lease with respect to which rental is not paid in accordance with this Act and the terms of the lease under which the rental is required, on the expiration of the 45-day period beginning on the date of the failure to pay the rental. ‘‘(2) NOTIFICATION.—The Secretary shall promptly notify a lessee that has not paid rental required under the lease that the lease will be terminated at the end of the period referred to in paragraph (1). ‘‘(3) REINSTATEMENT.—A lease that would otherwise terminate under paragraph (1) shall not terminate under that paragraph if the lessee pays to the Secretary, before the end of the period referred to in paragraph (1), the amount of rental due plus a late fee equal to 10 percent of the amount.’’.

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