Sec. 232. ADVANCED ROYALTIES REQUIRED FOR CESSATION OF PRODUCTION
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## SEC. 232 ADVANCED ROYALTIES REQUIRED FOR CESSATION OF PRODUCTION Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as amended by sections 223, 224, and 230) is further amended by adding at the end the following: > > ### “(f) Advanced Royalties Required for Cessation of Production > > > #### “(1) In general > > Subject to paragraphs
(2)and (3), if, at any time after commercial production under a lease is achieved, production ceases for any reason, the lease shall remain in full force and effect for a period of not more than 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.” > .
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Sec. 232
ADVANCED ROYALTIES REQUIRED FOR CESSATION OF PRODUCTION
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