; (2) the holding of lease sales after the nomination process described in paragraph (1); and (3) public notice of and comment on designation of areas to be included in, or excluded from, a lease sale. (c) Lease sale bids Bidding for leases under this Act shall be by sealed competitive cash bonus bids. (d) Acreage minimum in first sale For the first lease sale under this Act, the Secretary shall offer for lease those tracts the Secretary considers to have the greatest potential for the discovery of hydrocarbons, taking into consideration nominations received pursuant to subsection (b)(1), but in no case less than 300,000 acres. (e) Timing of lease sales The Secretary shall— (1) not later than 1 year after the date of enactment of this Act, conduct the first lease sale under this Act; (2) not later than 18 months after the date on which the first lease sale is conducted under paragraph (1), conduct a second lease sale under this Act; and (3) conduct additional sales at appropriate intervals if sufficient interest in exploration or development exists to warrant the conduct of the additional sales. 5. Grant of leases by the Secretary (a) In general Upon payment by a lessee of such bonus as may be accepted by the Secretary, the Secretary shall grant to the highest responsible qualified bidder in a lease sale conducted pursuant to section 4 a lease for any land on the Coastal Plain. (b) Subsequent transfers No lease issued under this Act may be sold, exchanged, assigned, sublet, or otherwise transferred except with the approval of the Secretary. 6. Lease terms and conditions (a) In general An oil or gas lease issued pursuant to this Act shall— (1) provide for the payment of a royalty of not less than 12 1/2 percent of the amount or value of the production removed or sold from the lease, as determined by the Secretary in accordance with regulations applicable to other Federal oil and gas leases