1. Such leases shall be based upon a fixed rental of not less than $1 per acre annually for each acre contained therein, and shall further provide for a royalty of not less than:
(a) Fifteen percent of the gross value of all oil, gas or other hydrocarbons extracted therefrom.
(b) Ten percent of the gross value of any geothermal resource derived from the lease and sold or utilized or reasonably susceptible to sale or utilization by the lessee and 5 percent of the gross value of any by-product sold or utilized or reasonably susceptible to sale or utilization by the lessee.
2. Each lease shall be negotiated upon such terms and for such rent and royalty as are most favorable to the State and not less favorable than similar leaseholds in the vicinity.
3. As used in this section, "by-product" means a tangible substance produced or extracted in the utilization of a geothermal resource.
[3:183:1921; NCL § 5550] — (NRS A 1975, 511; 1977, 805)