Section 274.790 - Royalties(1) The Department of State Lands shall specify in the notice described by ORS 274.765 and in the lease the rate of royalty paid under such lease which royalty shall not be less than 12-1/2 percent of gross production, or the value thereof, produced and saved from the leased lands and not used by lessee for operations thereon or for injection therein. Such royalty shall, at the department's option, be paid in kind or in value, and be computed after an allowance for the actual cost of oil treatment or dehydration of not to exceed five cents per barrel of royalty oil so treated or dehydrated.(2) The royalty for sulfur produced under ORS 274.705 to 274.860 shall not be less than $1 per long ton.(3) The State of Oregon shall have a lien upon all production for unpaid royalties. 1961 c.619 §§11,12; 1967 c.421 §169