The annual rental shall be set by the board of natural resources, but for years one through five the annual rental shall be not less than $1.00 per acre or $250 whichever is greater, and for years six through 10, shall be not less than $2.00 per acre or $500 whichever is greater. Production facilities, except for transmission infrastructure, shall be a separate lease, subject to commercial lease procedures. Lessee shall obtain all necessary permits for exploration or development purposes.