74TH CONGRESS . SESS. I. CH. 599. AUGUST 21, 1935 .
677 And provided further, That in the case of leases valuable only for le IInProductive gas the production of gas the Secretary of the Interior upon showing by the lessee that the lease cannot be successfully operated upon such rental or upon the royalty provided in the lease, may waive, suspend, or reduce such rental or reduce such royalty . "The Sec retary of the In terior, for the p urpose of more pr operly Conditional agree- m ent may be r equi red conserving the oil or gas resources of any area, field, or pool, may for conserving re- require that leases hereafter issued under any section of this Act be s onrce s . c onditioned upon a n agreement by th e lessee to opera te, under such Cooperative plan. reasonable cooperative or unit plan for the development and operation of any such area, field, or pool as said Secretary may determine to be practicable and necessary or advisable, which plan shall adequately protect the rights of all parties in interest, including the United States : Provided, That all leases operated under such plan approved Proviso. or prescribed by said Secretary shall be excepted in determining Eff ect o f. holdings or control under the provisions of any section of this Act . " Leases hereafter issued under this section shall be for a period of Periods of leases. five years and so long thereafter as oil or gas is produced in paying quantities wh en the lands to be leased are not within any known geological structure of a producing oil or gas field, and for a period of t en years and so long thereafter as oil or gas is produced in paying quantities when the lands to be leased are within any known geological structure of a producing oil or gas field : Provided, That Provisos. no such lease shall be deemed to expire by reasons of suspension of t ionss pensi on of oper a- prospecting, drilling, or production pursuant to any order or consent of the said Secretary : Provided further, That the person first Preference rights to first qualified appli- m aking application for the lease of any lands not wi thin any known cants, etc . ge ologi c stru cture of a produ cing oil o r gas field who is qu alifie d to hold a lease under this Act, including applicants for permits whose applications were filed after ninety days prior to the effective date of this amendatory Act shall be entitled to a preference right over others to a lease of such lands without competitive bidding at a royalty, in the case of oil, of 121/2 per centum in amount or value of Royalty rates . the production when the said production does not exceed fifty barrels per well per day for the calendar month and of not less than 12 1 /2 per centum in amount or value of the produ ction whe n the said produ ction exceeds fif ty barrels per we ll per day for th e calendar month, and, in the case of gas, at a royalty of 121/2 per centum in amount or value of the production when the said production do es not exceed five million cubic feet per well per day for the calendar month and, when the said production exceeds five million cubic feet per well per day for the calendar month, at a royalty of not less than 1 2 1/2 per centum in amount or value of the productio n . "Leases issued prior to the effective date of this amendatory Act . Existing leases to shall continue in forc e and effect in a ccordance with th e terms of continue in farce . such leases and the laws under which issued : Provided, That any Development, men t, u nder such lease that has become the subject of a cooperative or unit plan co opera tive plan . of de velopment or oper ation, or other p lan for the conse rvation of the oil and gas of a single area, field, or pool, which plan has the approval of the Secretary of the Department or Departments having jurisdiction over the Government lands included in said plan as necessary or conveni ent in the public interest, shall continue in force beyond said period of twenty years until the termination of such plan : And provi ded f urthe r, Th at sa id Secretary or Secretaries Rep or ts of leases to shal l report all leases so continued to Congress at the beginning of its congress. next regular session after the date of such continuance . "Any cooperati ve or unit plan of developmen t and oper ation, Rights reserved to which includes lands owned by the United States, shall contain a etc . modify any unit plan, provision whereby authority, limited as therein provided, is vested
