; (ii) by redesignating paragraphs (2) and (3) as paragraph (3) and (4), respectively; and (iii) by inserting after paragraph (1) the following: (2) Except as otherwise provided in this section, the issuance of a lease in lieu of an abandoned patented oil placer mining claim shall be treated as a noncompetitive oil and gas lease issued pursuant to section 17(c) of this Act. ; (D) in subsection (g), by striking subsection (d) and inserting subsections (d) and (f) ; (E) by amending subsection (h) to read as follows: (h) Royalty reductions (1) In acting on a petition to issue a noncompetitive oil and gas lease, under subsection (f) of this section or in response to a request filed after issuance of such a lease, or both, the Secretary is authorized to reduce the royalty on such lease if in his judgment it is equitable to do so or the circumstances warrant such relief due to uneconomic or other circumstances which could cause undue hardship or premature termination of production. (2) In acting on a petition for reinstatement pursuant to subsection (d) of this section or in response to a request filed after reinstatement, or both, the Secretary is authorized to reduce the royalty in that reinstated lease on the entire leasehold or any tract or portion thereof segregated for royalty purposes if, in his judgment, there are uneconomic or other circumstances which could cause undue hardship or premature termination of production; or because of any written action of the United States, its agents or employees, which preceded, and was a major consideration in, the lessee’s expenditure of funds to develop the property under the lease after the rent had become due and had not been paid; or if in the judgment of the Secretary it is equitable to do so for any reason. ; (F) by redesignating subsections (f) through (i) as subsections (g) through (j), respectively; and (G) by inserting after subsection (e) the following: (f) Issuance of noncompetitive oil and gas lease