Petroleum
Under the Mineral Leasing Act and later amendments, the right to produce federally-owned petroleum (oil and natural gas) is secured for ten-year periods by competitive bidding, and goes to the party paying the highest bonus. There are three forms of payment to the government: bonus (an initial payment to the government), rental (an annual payment of $2 per acre), and royalty ( a payment of 1/8 or 12.5% of the gross value of the oil and gas produced).
Read more about this topic: Mineral Leasing Act Of 1920