; (2) shall be subject to a rental of $5 per acre per year for the first 3-year renewal of the lease; and (3) shall be subject to a rental of $10 per acre per year for any subsequent 3-year renewal of the lease. (i) Limitations A small miner’s lease— (1) may only be held by the primary lease holder, a spouse thereof, or a direct descendent thereof; (2) may not be sold or transferred, other than to a spouse or direct descendent of the primary lease holder; and (3) is subject to all permitting requirements under this Act. (j) Conversion to hardrock mineral lease (1) In general If, with regard to a small miner’s lease, the lessee does not qualify as a small miner at the time such lessee applies for a renewal of such lease, such lessee shall not be eligible to renew such lease, but shall be eligible for a noncompetitive hardrock mineral lease issued under section 103(c). (2) Royalties Notwithstanding section 103(c)(1), royalties under a small miner’s lease converted to a hardrock mineral lease under this subsection shall only be due on the gross income that exceeds $50,000 annually or the amount of gross income specified by the Secretary as of the time such noncompetitive lease is issued. 106. Land containing nonhardrock minerals