Minerals Leasing Act of 1920 Effected Minerals –Oil and Gas (Major use of act) –Sulfur in New Mex. And Louisiana –Coal –Native Asphalt, Gilsonite, Oil Shale, Tar Sands –Potassium, Sodium, Salt –Phosphate

Obtaining Leases Government puts lands with known or believed mineral value out for lease – has a preset minimum for the lease Hold Competitive Sealed Bids for Leases Leases run for 20 years

Leases on Unknown Deposits Individuals may apply for prospecting permits on Federal Lands –Must share findings with government but need not make them public –With non-coal prospector has first right to a lease if they meet government minimums set for ground –Coal can call land up for bid (since they know what is there they have advantage)

Lease Limitations Limitations on Acreage –Coal 46,080 acres per state and 100,000 acres total –Sodium 5120 acres total –Phosphate 20,480 total –Sulfur 3 leases of 640 acres per state –Potassium 25,600 –Oil Shale 5120 acres –Tar Sands 245,080 per state

Annual Rental Costs Land Rentals on leases –Coal at least $3/acre year (can be more) –Phosphate, Potassium and Sodium 25 cents/acre year 1rst year, 50 cents second, $1 there after –Sulfur 50 cents/acre year –Non-Coal or Hardrock $3/acre year starting 6th year

Royalties on Leases Coal –Surface Mined - not less than 12.5% of value of coal –Underground - not less than 8% Phosphate and Sulfur not less than 5% Sodium and Potassium not less than 2% Oil Shale etc. - can be a trade off with the $3/acre year rental