Mineral Leasing Act General Provisions

Page 33

TITLE 30—MINERAL LANDS AND MINING

Sec.

229.

229a.
230 to
233a.
234 to
236a.
236b.
237.

Preference right to permits or leases of
claimants of lands bona fide entered as agricultural land; terms and conditions.
Water struck while drilling for oil and gas.
233. Repealed.
Permits or leases of certain lands in Oklahoma; retention of royalties.
236. Repealed.
Lands in naval petroleum reserves and naval
oil-shale reserves; effect of other laws.
Existing leases within naval petroleum reserves not affected.
Omitted.
SUBCHAPTER V—OIL SHALE

241.
242.

Leases of lands.
Oil shale claims.
SUBCHAPTER VI—ALASKA OIL PROVISO

251.

Leases to claimants of withdrawn lands;
terms and conditions; acreage; annual rentals and royalties; fraud of claimants.

261.
262.

Prospecting permits; lands included; acreage.
Leases to permittees; survey of lands; royalties and annual rentals.
Permits to use or lease of nonmineral lands
for camp sites, and other purposes; annual
rentals; acreage.

SUBCHAPTER VII—SODIUM

263.

SUBCHAPTER VIII—SULPHUR
271.
272.
273.
274.
275.
276.

Prospecting permits; lands included; acreage.
Leases to permittees; privileges extended to
oil and gas permittees.
Lease of lands not covered by permits or
leases; acreage; rental.
Lands containing coal or other minerals.
Laws applicable.
Application of subchapter to Louisiana and
New Mexico only.
SUBCHAPTER IX—POTASH

281.

282.
283.

284.

285.
286.
287.

Prospecting permits for chlorides, sulphates,
carbonates, borates, silicates, or nitrates of
potassium; authorization; acreage; lands affected.
Leases to permittees of lands showing valuable deposits; royalty.
Lands containing valuable deposits not covered by permits or leases; authority to
lease; acreage; conditions; renewals; exemptions from rentals and royalties; suspension
of operations.
Lands containing coal or other minerals in
addition to potassium deposits; issuance of
prospecting permits and leases; covenants
in potassium leases.
Laws applicable.
Disposition of royalties and rents from potassium leases.
Extension of prospecting permits.

SUBCHAPTER I—GENERAL PROVISIONS
§ 181. Lands subject to disposition; persons entitled to benefits; reciprocal privileges; helium
rights reserved
Deposits of coal, phosphate, sodium, potassium, oil, oil shale, gilsonite (including all veintype solid hydrocarbons), or gas, and lands containing such deposits owned by the United
States, including those in national forests, but
excluding lands acquired under the Appalachian
Forest Act, approved March 1, 1911 (36 Stat. 961),
and those in incorporated cities, towns, and villages and in national parks and monuments,

§ 181

those acquired under other Acts subsequent to
February 25, 1920, and lands within the naval petroleum and oil-shale reserves, except as hereinafter provided, shall be subject to disposition in
the form and manner provided by this chapter to
citizens of the United States, or to associations
of such citizens, or to any corporation organized
under the laws of the United States, or of any
State or Territory thereof, or in the case of coal,
oil, oil shale, or gas, to municipalities. Citizens
of another country, the laws, customs, or regulations of which deny similar or like privileges
to citizens or corporations of this country, shall
not by stock ownership, stock holding, or stock
control, own any interest in any lease acquired
under the provisions of this chapter.
The term ‘‘oil’’ shall embrace all nongaseous
hydrocarbon substances other than those substances leasable as coal, oil shale, or gilsonite
(including all vein-type solid hydrocarbons).
The term ‘‘combined hydrocarbon lease’’ shall
refer to a lease issued in a special tar sand area
pursuant to section 226 of this title after November 16, 1981.
The term ‘‘special tar sand area’’ means (1) an
area designated by the Secretary of the Interior’s orders of November 20, 1980 (45 FR
76800–76801) and January 21, 1981 (46 FR 6077–6078)
as containing substantial deposits of tar sand.
The United States reserves the ownership of
and the right to extract helium from all gas produced from lands leased or otherwise granted
under the provisions of this chapter, under such
rules and regulations as shall be prescribed by
the Secretary of the Interior: Provided further,
That in the extraction of helium from gas produced from such lands it shall be so extracted as
to cause no substantial delay in the delivery of
gas produced from the well to the purchaser
thereof.
(Feb. 25, 1920, ch. 85, § 1, 41 Stat. 437; Feb. 7, 1927,
ch. 66, § 5, 44 Stat. 1058; Aug. 8, 1946, ch. 916, § 1,
60 Stat. 950; Pub. L. 86–705, § 7(a), Sept. 2, 1960, 74
Stat. 790; Pub. L. 97–78, § 1(1), (4), Nov. 16, 1981, 95
Stat. 1070.)
REFERENCES IN TEXT
The Appalachian Forest Act, referred to in the first
undesignated paragraph, is act Mar. 1, 1911, ch. 186, 36
Stat. 961, as amended, also known as the Weeks Law,
which is classified to sections 480, 500, 513 to 519, 521, 552
and 563 of Title 16, Conservation. For complete classification of this Act to the Code, see Short Title note
set out under section 552 of Title 16 and Tables.
AMENDMENTS
1981—Pub. L. 97–78, in first par., substituted ‘‘gilsonite (including all vein-type solid hydrocarbons),’’ for
‘‘native asphalt, solid and semisolid bitumen, and bituminous rock (including oil-impregnated rock or sands
from which oil is recoverable only by special treatment
after the deposit is mined or quarried)’’, and added,
after first par. three paragraphs which defined ‘‘oil’’,
‘‘combined hydrocarbon lease’’, and ‘‘special tar sand
area’’, respectively.
1960—Pub. L. 86–705 included deposits of native asphalt, solid and semisolid bitumen, and bituminous
rock.
1946—Act Aug. 8, 1946, reenacted: existing par., less
three provisos, as first sentence of first par., inserting
‘‘potassium’’ after ‘‘sodium’’, which was also included
in the 1927 amendment, and substituting provision for
disposition of deposits ‘‘in incorporated cities, towns,

§ 182

TITLE 30—MINERAL LANDS AND MINING

and villages, and in national parks and monuments,
those acquired under other Acts subsequent to February 25, 1920, and lands within the naval petroleum
and oil-shale reserves’’ for such disposition ‘‘in national parks, and in lands withdrawn or reserved for
military or naval uses or purposes’’ and phrase ‘‘associations of such citizens’’ for ‘‘any association of such
persons’’; former third proviso as second sentence of
first par.; former first proviso, as second par., inserting
reservation of ownership provision and striking out
‘‘permitted’’ before ‘‘leased or otherwise granted’’; and
former second proviso as proviso in second par.
1927—Act Feb. 7, 1927, included deposits of potassium.
SHORT TITLE OF 2000 AMENDMENTS
Pub. L. 106–463, § 1, Nov. 7, 2000, 114 Stat. 2010, provided that: ‘‘This Act [amending section 184 of this title
and enacting provisions set out as a note under section
184 of this title] may be cited as the ‘Coal Market Competition Act of 2000’.’’
Pub. L. 106–393, title V, § 501, Oct. 30, 2000, 114 Stat.
1624, provided that: ‘‘This title [amending section 191 of
this title and enacting provisions set out as a note
under section 191 of this title] may be cited as the ‘Mineral Revenue Payments Clarification Act of 2000’.’’
SHORT TITLE OF 1987 AMENDMENT
Pub. L. 100–203, title V, § 5101(a), Dec. 22, 1987, 101
Stat. 1330–256, provided that: ‘‘This subtitle [subtitle B
(§§ 5101–5113) of Pub. L. 100–203, enacting sections 195
and 226–3 of this title, amending sections 187a, 187b, 188,
191, and 226 of this title and section 3148 of Title 16,
Conservation, and enacting provisions set out as notes
under this section and section 226 of this title] may be
cited as the ‘Federal Onshore Oil and Gas Leasing Reform Act of 1987’.’’
SHORT TITLE OF 1981 AMENDMENT
Pub. L. 97–78, Nov. 16, 1981, 95 Stat. 1070, which
amended this section and sections 182, 184, 209, 226, 241,
351, and 352 of this title and enacted provisions set out
as a note under this section, is popularly known as the
‘‘Combined Hydrocarbon Leasing Act of 1981’’.
SHORT TITLE OF 1976 AMENDMENT
Pub. L. 94–377, § 1(a), Aug. 4, 1976, 90 Stat. 1083, as
amended by Pub. L. 95–554, § 8, Oct. 30, 1978, 92 Stat.
2075, provided that: ‘‘This Act [enacting sections 202a,
208–1, and 208–2 of this title, amending sections 184, 191,
201, 203, 207, 209, and 352 of this title, repealing sections
201–1 and 204 of this title, and enacting provisions set
out as notes under sections 184, 201, 201–1, 203, and 204
of this title] may be cited as the ‘Federal Coal Leasing
Amendments Act of 1976’.’’

Page 34

shale oil under the act of Feb. 25, 1920, section 181 et
seq. of this title, see section 701(d) of Pub. L. 94–579, set
out as a note under section 1701 of Title 43, Public
Lands.
Act Aug. 8, 1946, ch. 916, § 15, 60 Stat. 950, provided:
‘‘No repeal or amendment made by this Act [enacting
sections 187a, 187b, 226c–226e, and 236b, amending this
section and sections 184, 188, 193, 209, 225, 226, and 285,
and repealing sections 223a, 226a, and 226b of this title]
shall affect any right acquired under the law as it existed prior to such repeal or amendment, and such right
shall be governed by the law in effect at the time of its
acquisition; but any person holding a lease on the effective date of this Act [Aug. 8, 1946] may, by filing a
statement to that effect, elect to have his lease governed by the applicable provisions of this Act instead of
by the law in effect prior thereto.’’
CONSTRUCTION AND APPLICABILITY OF 1981
AMENDMENTS
Pub. L. 97–78, § 1(10), (11), Nov. 16, 1981, 95 Stat. 1072,
provided that:
‘‘(10) Nothing in this Act [see Short Title of 1981
Amendment note above] shall affect the taxable status
of production from tar sand under the Crude Oil Windfall Profit Tax Act of 1980 (Public Law 96–223) [see
Tables for classification], reduce the depletion allowance for production from tar sand, or otherwise affect
the existing tax status applicable to such production.
‘‘(11) No provision of this Act [see Short Title of 1981
Amendment note above] shall apply to national parks,
national monuments, or other lands where mineral
leasing is prohibited by law. The Secretary of the Interior shall apply the provisions of this Act to the Glen
Canyon National Recreation Area, and to any other
units of the national park system where mineral leasing is permitted, in accordance with any applicable
minerals management plan if the Secretary finds that
there will be no resulting significant adverse impacts
on the administration of such area, or on other contiguous units of the national park system.’’
ADMISSION OF ALASKA AS STATE: SELECTION OF LANDS
Admission of Alaska into the Union was accomplished Jan. 3, 1959, on issuance of Proc. No. 3269, Jan.
3, 1959, 24 F.R. 81, 73 Stat. c16, as required by sections
1 and 8(c) of Pub. L. 85–508, July 7, 1958, 72 Stat. 339, set
out as notes preceding section 21 of Title 48, Territories
and Insular Possessions.
Selection of lands by Alaska from lands made available by Statehood provisions including lands subject to
leases, permits, licenses or contracts issued under this
chapter, see section 6(h) of Pub. L. 85–508, set out as
note preceding section 21 of Title 48.

SHORT TITLE OF 1960 AMENDMENT

OUTER CONTINENTAL SHELF; MINERAL LEASES

Pub. L. 86–705, § 1, Sept. 2, 1960, 74 Stat. 781, provided:
‘‘That this Act [amending this section and sections 182,
184, 187a, 226, 226–1, 226–2, and 241 of this title, and enacted provisions set out as notes under sections 187a
and 226 of this title] may be cited as the ‘Mineral Leasing Act Revision of 1960’.’’

Grant by the Secretary of the Interior of mineral
leases on submerged lands of outer Continental Shelf,
see section 1331 et seq., of Title 43, Public Lands.

SHORT TITLE
Act Feb. 25, 1920, ch. 85, § 44, as added Dec. 22, 1987,
Pub. L. 100–203, title V, § 5113, 101 Stat. 1330–263, provided that: ‘‘This Act [enacting this chapter] may be
cited as the ‘Mineral Leasing Act’.’’
This chapter is also popularly known as the ‘‘Mineral
Leasing Act of 1920’’ and the ‘‘Mineral Lands Leasing
Act’’.
SAVINGS PROVISION
Provisions of Federal Land Policy and Management
Act of 1976, Pub. L. 94–579, Oct. 21, 1976, 90 Stat. 2743,
not to be construed as permitting any person to place,
or allow to be placed, spent oil shale, etc., on any Federal land other than land leased for the recovery of

§ 182. Lands disposed of with reservation of deposits of coal, etc.
The provisions of this chapter shall also apply
to all deposits of coal, phosphate, sodium, oil,
oil shale, gilsonite (including all vein-type solid
hydrocarbons), or gas in the lands of the United
States, which lands may have been or may be
disposed of under laws reserving to the United
States such deposits, with the right to prospect
for, mine, and remove the same, subject to such
conditions as are or may hereafter be provided
by such laws reserving such deposits.
(Feb. 25, 1920, ch. 85, § 34, 41 Stat. 450; Pub. L.
86–705, § 7(a), Sept. 2, 1960, 74 Stat. 790; Pub. L.
97–78, § 1(1), Nov. 16, 1981, 95 Stat. 1070.)

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TITLE 30—MINERAL LANDS AND MINING
AMENDMENTS

1981—Pub. L. 97–78 substituted ‘‘gilsonite (including
all vein-type solid hydrocarbons),’’ for ‘‘native asphalt,
solid and semisolid bitumen, and bituminous rock (including oil-impregnated rock or sands from which oil is
recoverable only by special treatment after the deposit
is mined or quarried)’’.
1960—Pub. L. 86–705 included native asphalt, solid and
semisolid bitumen, and bituminous rock.

§ 183. Cancellation of prospecting permits
The Secretary of the Interior shall reserve and
may exercise the authority to cancel any prospecting permit upon failure by the permittee to
exercise due diligence in the prosecution of the
prospecting work in accordance with the terms
and conditions stated in the permit, and shall
insert in every such permit issued under the provisions of this chapter appropriate provisions for
its cancellation by him.
(Feb. 25, 1920, ch. 85, § 26, 41 Stat. 448.)
§ 184. Limitations on leases held, owned or controlled by persons, associations or corporations
(a) Coal leases
No person, association, or corporation, or any
subsidiary, affiliate, or persons controlled by or
under common control with such person, association, or corporation shall take, hold, own or
control at one time, whether acquired directly
from the Secretary under this chapter or otherwise, coal leases or permits on an aggregate of
more than 75,000 acres in any one State and in
no case greater than an aggregate of 150,000
acres in the United States: Provided, That any
person, association, or corporation currently
holding, owning, or controlling more than an aggregate of 150,000 acres in the United States on
the date of enactment of this section shall not
be required on account of this section to relinquish said leases or permits: Provided, further,
That in no case shall such person, association,
or corporation be permitted to take, hold, own,
or control any further Federal coal leases or
permits until such time as their holdings, ownership, or control of Federal leases or permits
has been reduced below an aggregate of 150,000
acres within the United States.
(b) Sodium leases or permits, acreage
(1) No person, association, or corporation, except as otherwise provided in this subsection,
shall take, hold, own, or control at one time,
whether acquired directly from the Secretary
under this chapter, or otherwise, sodium leases
or permits on an aggregate of more than five
thousand one hundred and twenty acres in any
one State.
(2) The Secretary may, in his discretion, where
the same is necessary in order to secure the economic mining of sodium compounds leasable
under this chapter, permit a person, association,
or corporation to take or hold sodium leases or
permits on up to 30,720 acres in any one State.
(c) Phosphate leases, acreage
No person, association, or corporation shall
take, hold, own, or control at one time, whether
acquired directly from the Secretary under this
chapter, or otherwise, phosphate leases or per-

§ 184

mits on an aggregate of more than twenty thousand four hundred and eighty acres in the
United States.
(d) Oil or gas leases, acreage, Alaska; options,
semi-annual statements
(1) No person, association, or corporation, except as otherwise provided in this chapter, shall
take, hold, own or control at one time, whether
acquired directly from the Secretary under this
chapter, or otherwise, oil or gas leases (including options for such leases or interests therein)
on land held under the provisions of this chapter
exceeding in the aggregate two hundred fortysix thousand and eighty acres in any one State
other than Alaska 1 Provided, however, That acreage held in special tar sand areas, and acreage
under any lease any portion of which has been
committed to a federally approved unit or cooperative plan or communitization agreement or
for which royalty (including compensatory royalty or royalty in-kind) was paid in the preceding calendar year, shall not be chargeable
against such State limitations. In the case of
the State of Alaska, the limit shall be three
hundred thousand acres in the northern leasing
district and three hundred thousand acres in the
southern leasing district, and the boundary between said two districts shall be the left limit of
the Tanana River from the border between the
United States and Canada to the confluence of
the Tanana and Yukon Rivers, and the left limit
of the Yukon River from said confluence to its
principal southern mouth.
(2) No person, association, or corporation shall
take, hold, own, or control at one time options
to acquire interests in oil or gas leases under
the provisions of this chapter which involve, in
the aggregate, more than two hundred thousand
acres of land in any one State other than Alaska, or, in the case of Alaska, more than two
hundred thousand acres in each of its two leasing districts, as hereinbefore described. No option to acquire any interest in such an oil or gas
lease shall be enforcible if entered into for a period of more than three years (which three years
shall be inclusive of any renewal period if a
right to renew is reserved by any party to the
option) without the prior approval of the Secretary. In any case in which an option to acquire
the optionor’s entire interest in the whole or a
part of the acreage under a lease is entered into,
the acreage to which the option is applicable
shall be charged both to the optionor and to the
optionee, but the charge to the optionor shall
cease when the option is exercised. In any case
in which an option to acquire a part of the
optionor’s interest in the whole or a part of the
acreage under a lease is entered into, the acreage to which the option is applicable shall be
fully charged to the optionor and a share thereof
shall also be charged to the optionee, as his interest may appear, but after the option is exercised said acreage shall be charged to the parties
pro rata as their interests may appear. In any
case in which an assignment is made of a part of
a lessee’s interest in the whole or part of the
acreage under a lease or an application for a
lease, the acreage shall be charged to the parties
1 So

in original. Probably should be followed by a colon.

§ 184

TITLE 30—MINERAL LANDS AND MINING

pro rata as their interests may appear. No option or renewal thereof shall be enforcible until
notice thereof has been filed with the Secretary
or an officer or employee of the Department of
the Interior designated by him to receive the
same. Each such notice shall include, in addition to any other matters prescribed by the Secretary, the names and addresses of the parties
thereto, the serial number of the lease or application for a lease to which the option is applicable, and a statement of the number of acres covered thereby and of the interests and obligations
of the parties thereto and shall be subscribed by
all parties to the option or their duly authorized
agents. An option which has not been exercised
shall remain charged as hereinbefore provided
until notice of its relinquishment or surrender
has been filed, by either party, with the Secretary or any officer or employee of the Department of the Interior designated by him to receive the same. In addition, each holder of any
such option shall file with the Secretary or an
officer or employee of the Department of the Interior as aforesaid within ninety days after the
30th day of June and the 31st day of December in
each year a statement showing, in addition to
any other matters prescribed by the Secretary,
his name, the name and address of each grantor
of an option held by him, the serial number of
every lease or application for a lease to which
such an option is applicable, the number of acres
covered by each such option, the total acreage
in each State to which such options are applicable, and his interest and obligation under each
such option. The failure of the holder of an option so to file shall render the option unenforcible 2 by him. The unenforcibility 3 of any option
under the provisions of this paragraph shall not
diminish the number of acres deemed to be held
under option by any person, association, or corporation in computing the amount chargeable
under the first sentence of this paragraph and
shall not relieve any party thereto of any liability to cancellation, forfeiture, forced disposition, or other sanction provided by law. The
Secretary may prescribe forms on which the notice and statements required by this paragraph
shall be made.
(e) Association or stockholder interests, conditions; combined interests
(1) No person, association, or corporation shall
take, hold, own or control at one time any interest as a member of an association or as a stockholder in a corporation holding a lease, option,
or permit under the provisions of this chapter
which, together with the area embraced in any
direct holding, ownership or control by him of
such a lease, option, or permit or any other interest which he may have as a member of other
associations or as a stockholder in other corporations holding, owning or controlling such
leases, options, or permits for any kind of minerals, exceeds in the aggregate an amount equivalent to the maximum number of acres of the respective kinds of minerals allowed to any one
lessee, optionee, or permittee under this chapter, except that no person shall be charged with
2 So
3 So

in original. Probably should be ‘‘unenforceable’’.
in original. Probably should be ‘‘unenforceability’’.

Page 36

his pro rata share of any acreage holdings of any
association or corporation unless he is the beneficial owner of more than 10 per centum of the
stock or other instruments of ownership or control of such association or corporation, and except that within three years after September 2,
1960 no valid option in existence prior to September 2, 1960 held by a corporation or association on September 2, 1960 shall be chargeable to
any stockholder of such corporation or to a
member of such association so long as said option shall be so held by such corporation or association under the provisions of this chapter.
(2) No contract for development and operation
of any lands leased under this chapter, whether
or not coupled with an interest in such lease,
and no lease held, owned, or controlled in common by two or more persons, associations, or
corporations shall be deemed to create a separate association under the preceding paragraph
of this subsection between or among the contracting parties or those who hold, own or control the lease in common, but the proportionate
interest of each such party shall be charged
against the total acreage permitted to be held,
owned or controlled by such party under this
chapter. The total acreage so held, owned, or
controlled in common by two or more parties
shall not exceed, in the aggregate, an amount
equivalent to the maximum number of acres of
the respective kinds of minerals allowed to any
one lessee, optionee, or permittee under this
chapter.
(f) Limitations on other sections; combined interests permitted for certain purposes
Nothing contained in subsection (e) of this
section shall be construed (i) to limit sections
227, 228, 251 of this title or (ii), subject to the approval of the Secretary, to prevent any number
of lessees under this chapter from combining
their several interests so far as may be necessary for the purpose of constructing and carrying on the business of a refinery or of establishing and constructing, as a common carrier, a
pipeline or railroad to be operated and used by
them jointly in the transportation of oil from
their several wells or from the wells of other lessees under this chapter or in the transportation
of coal or (iii) to increase the acreage which
may be taken, held, owned, or controlled under
this section.
(g) Forbidden interests acquired by descent, will,
judgment, or decree; permissible holding period
Any ownership or interest otherwise forbidden
in this chapter which may be acquired by descent, will, judgment, or decree may be held for
two years after its acquisition and no longer.
(h) Cancellation, forfeiture, or disposal of interests for violation; bona fide purchasers and
other valid interests; sale by Secretary;
record of proceedings
(1) If any interest in any lease is owned, or
controlled, directly or indirectly, by means of
stock or otherwise, in violation of any of the
provisions of this chapter, the lease may be canceled, or the interest so owned may be forfeited,
or the person so owning or controlling the interest may be compelled to dispose of the interest,

Page 37

TITLE 30—MINERAL LANDS AND MINING

in any appropriate proceeding instituted by the
Attorney General. Such a proceeding shall be instituted in the United States district court for
the district in which the leased property or
some part thereof is located or in which the defendant may be found.
(2) The right to cancel or forfeit for violation
of any of the provisions of this chapter shall not
apply so as to affect adversely the title or interest of a bona fide purchaser of any lease, interest in a lease, option to acquire a lease or an interest therein, or permit which lease, interest,
option, or permit was acquired and is held by a
qualified person, association, or corporation in
conformity with those provisions, even though
the holdings of the person, association, or corporation from which the lease, interest, option,
or permit was acquired, or of his predecessor in
title (including the original lessee of the United
States) may have been canceled or forfeited or
may be or may have been subject to cancellation
or forfeiture for any such violation. If, in any
such proceeding, an underlying lease, interest,
option, or permit is canceled or forfeited to the
Government and there are valid interests therein or valid options to acquire the lease or an interest therein which are not subject to cancellation, forfeiture, or compulsory disposition, the
underlying lease, interest, option, or permit
shall be sold by the Secretary to the highest responsible qualified bidder by competitive bidding under general regulations subject to all
outstanding valid interests therein and valid options pertaining thereto. Likewise if, in any
such proceeding, less than the whole interest in
a lease, interest, option, or permit is canceled or
forfeited to the Government, the partial interests so canceled or forfeited shall be sold by the
Secretary to the highest responsible qualified
bidder by competitive bidding under general regulations. If competitive bidding fails to produce
a satisfactory offer the Secretary may, in either
of these cases, sell the interest in question by
such other method as he deems appropriate on
terms not less favorable to the Government than
those of the best competitive bid received.
(3) The commencement and conclusion of
every proceeding under this subsection shall be
promptly noted on the appropriate public
records of the Bureau of Land Management.
(i) Bona fide purchasers, conditions for obtaining dismissals
Effective September 21, 1959, any person, association, or corporation who is a party to any
proceeding with respect to a violation of any
provision of this chapter, whether initiated
prior to said date or thereafter, shall have the
right to be dismissed promptly as such a party
upon showing that he holds and acquired as a
bona fide purchaser the interest involving him
as such a party without violating any provisions
of this chapter. No hearing upon any such showing shall be required unless the Secretary presents prima facie evidence indicating a possible
violation of this chapter on the part of the alleged bona fide purchaser.
(j) Waiver or suspension of rights
If during any such proceeding, a party thereto
files with the Secretary a waiver of his rights
under his lease (including particularly, where

§ 184

applicable, rights to drill and to assign) or if
such rights are suspended by the Secretary
pending a decision in the proceeding, whether
initiated prior to enactment of this chapter or
thereafter, payment of rentals and running of
time against the term of the lease or leases involved shall be suspended as of the first day of
the month following the filing of the waiver or
suspension of the rights until the first day of the
month following the final decision in the proceeding or the revocation of the waiver or suspension.
(k) Unlawful trusts; forfeiture
Except as otherwise provided in this chapter,
if any lands or deposits subject to the provisions
of this chapter shall be subleased, trusteed, possessed, or controlled by any device permanently,
temporarily, directly, indirectly, tacitly, or in
any manner whatsoever, so that they form a
part of or are in any wise controlled by any combination in the form of an unlawful trust, with
the consent of the lessee, optionee, or permittee,
or form the subject of any contract or conspiracy in restraint of trade in the mining or selling
of coal, phosphate, oil, oil shale, gilsonite (including all vein-type solid hydrocarbons), gas, or
sodium entered into by the lessee, optionee, or
permittee or any agreement or understanding,
written, verbal, or otherwise, to which such lessee, optionee, or permittee shall be a party, of
which his or its output is to be or become the
subject, to control the price or prices thereof or
of any holding of such lands by any individual,
partnership, association, corporation, or control
in excess of the amounts of lands provided in
this chapter, the lease, option, or permit shall
be forfeited by appropriate court proceedings.
(l) Rules and regulations; notice to and consultation with Attorney General; application of
antitrust laws; definitions
(1) At each stage in the formulation and promulgation of rules and regulations concerning
coal leasing pursuant to this chapter, and at
each stage in the issuance, renewal, and readjustment of coal leases under this chapter, the
Secretary of the Interior shall consult with and
give due consideration to the views and advice
of the Attorney General of the United States.
(2) No coal lease may be issued, renewed, or readjusted under this chapter until at least thirty
days after the Secretary of the Interior notifies
the Attorney General of the proposed issuance,
renewal, or readjustment. Such notification
shall contain such information as the Attorney
General may require in order to advise the Secretary of the Interior as to whether such lease
would create or maintain a situation inconsistent with the antitrust laws. If the Attorney
General advises the Secretary of the Interior
that a lease would create or maintain such a situation, the Secretary of the Interior may not
issue such lease, nor may he renew or readjust
such lease for a period not to exceed one year, as
the case may be, unless he thereafter conducts a
public hearing on the record in accordance with
subchapter II of chapter 5 of title 5 and finds
therein that such issuance, renewal, or readjustment is necessary to effectuate the purposes of
this chapter, that it is consistent with the public interest, and that there are no reasonable al-

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TITLE 30—MINERAL LANDS AND MINING

ternatives consistent with this chapter, the
antitrust laws, and the public interest.
(3) Nothing in this chapter shall be deemed to
convey to any person, association, corporation,
or other business organization immunity from
civil or criminal liability, or to create defenses
to actions, under any antitrust law.
(4) As used in this subsection, the term ‘‘antitrust law’’ means—
(A) the Act entitled ‘‘An Act to protect
trade and commerce against unlawful restraints and monopolies’’, approved July 2,
1890 (15 U.S.C. 1 et seq.), as amended;
(B) the Act entitled ‘‘An Act to supplement
existing laws against unlawful restraints and
monopolies, and for other purposes’’, approved
October 15, 1914 (15 U.S.C. 12 et seq.), as
amended;
(C) the Federal Trade Commission Act (15
U.S.C. 41 et seq.), as amended;
(D) sections 73 and 74 of the Act entitled ‘‘An
Act to reduce taxation, to provide revenue for
the Government, and for other purposes’’, approved August 27, 1894 (15 U.S.C. 8 and 9), as
amended; or
(E) the Act of June 19, 1936, chapter 592 (15
U.S.C. 13, 13a, 13b, and 21a).
(Feb. 25, 1920, ch. 85, § 27, 41 Stat. 448; Apr. 30,
1926, ch. 197, 44 Stat. 373; July 3, 1930, ch. 854, § 1,
46 Stat. 1007; Mar. 4, 1931, ch. 506, 46 Stat. 1524;
Aug. 8, 1946, ch. 916, § 6, 60 Stat. 954; June 1, 1948,
ch. 365, 62 Stat. 285; June 3, 1948, ch. 379, § 6, 62
Stat. 291; Aug. 2, 1954, ch. 650, 68 Stat. 648; Pub.
L. 85–122, Aug. 13, 1957, 71 Stat. 341; Pub. L.
85–698, Aug. 21, 1958, 72 Stat. 688; Pub. L. 86–294,
§ 1, Sept. 21, 1959, 73 Stat. 571; Pub. L. 86–391,
§ 1(c), Mar. 18, 1960, 74 Stat. 8; Pub. L. 86–705, § 3,
Sept. 2, 1960, 74 Stat. 785; Pub. L. 88–526, § 1, Aug.
31, 1964, 78 Stat. 710; Pub. L. 88–548, Aug. 31, 1964,
78 Stat. 754; Pub. L. 94–377, §§ 11, 15, Aug. 4, 1976,
90 Stat. 1090, 1091; Pub. L. 97–78, § 1(2), (5), Nov.
16, 1981, 95 Stat. 1070; Pub. L. 106–191, § 2, Apr. 28,
2000, 114 Stat. 232; Pub. L. 106–463, § 3, Nov. 7,
2000, 114 Stat. 2011; Pub. L. 109–58, title III, § 352,
Aug. 8, 2005, 119 Stat. 714.)
REFERENCES IN TEXT
The date of enactment of this section, referred to in
subsec. (a), probably means the date of enactment of
Pub. L. 94–377, which was Aug. 4, 1976.
The Act entitled ‘‘An Act to protect trade and commerce against unlawful restraints and monopolies’’, approved July 2, 1890, as amended, referred to in subsec.
(l)(4)(A), is act July 2, 1890, ch. 647, 26 Stat. 209, as
amended, known as the Sherman Act, which is classified to sections 1 to 7 of Title 15, Commerce and Trade.
For complete classification of this Act to the Code, see
Short Title note set out under section 1 of Title 15 and
Tables.
The Act entitled ‘‘An Act to supplement existing
laws against unlawful restraints and monopolies, and
for other purposes’’, approved October 15, 1914, as
amended, referred to in subsec. (l)(4)(B), is act Oct. 15,
1914, ch. 323, 38 Stat. 730, as amended, known as the
Clayton Act, and is classified generally to sections 12,
13, 14 to 19, 21, and 22 to 27 of Title 15, and sections 52
and 53 of Title 29, Labor. For further details and complete classification of this Act to the Code, see References in Text note set out under section 12 of Title 15
and Tables.
The Federal Trade Commission Act, referred to in
subsec. (l)(4)(C), is act Sept. 26, 1914, ch. 311, 38 Stat. 717,
as amended, which is classified generally to subchapter

Page 38

I (§ 41 et seq.) of chapter 2 of Title 15. For complete classification of this Act to the Code, see section 58 of Title
15 and Tables.
Act of June 19, 1936, chapter 592, referred to in subsec.
(l)(4)(E), is act June 19, 1936, ch. 592, 49 Stat. 1526,
known as the Robinson-Patman Antidiscrimination
Act and also as the Robinson-Patman Price Discrimination Act, which enacted sections 13a, 13b, and 21a of
Title 15, Commerce and Trade, and amended section 13
of Title 15. For complete classification of this Act to
the Code, see Short Title note set out under section 13
of Title 15 and Tables.
CODIFICATION
In subsec. (l)(2), ‘‘subchapter II of chapter 5 of title 5’’
substituted for ‘‘the Administrative Procedure Act’’ on
authority of Pub. L. 89–554, § 7(b), Sept. 6, 1966, 80 Stat.
631, the first section of which enacted Title 5, Government Organization and Employees.
AMENDMENTS
2005—Subsec. (d)(1). Pub. L. 109–58 inserted ‘‘, and
acreage under any lease any portion of which has been
committed to a federally approved unit or cooperative
plan or communitization agreement or for which royalty (including compensatory royalty or royalty inkind) was paid in the preceding calendar year,’’ after
‘‘acreage held in special tar sand areas’’.
2000—Subsec. (a). Pub. L. 106–463 inserted heading,
struck out ‘‘(1)’’ before ‘‘No person’’, substituted ‘‘75,000
acres’’ for ‘‘forty-six thousand and eighty acres’’, and
substituted ‘‘150,000 acres’’ for ‘‘one hundred thousand
acres’’ wherever appearing.
Subsec. (b)(2). Pub. L. 106–191 substituted ‘‘30,720
acres’’ for ‘‘fifteen thousand three hundred and sixty
acres’’.
1981—Subsec. (d)(1). Pub. L. 97–78, § 1(5), inserted proviso that acreage held in special tar sand areas not be
chargeable against State limitations.
Subsec. (k). Pub. L. 97–78, § 1(2), substituted ‘‘gilsonite
(including all vein-type solid hydrocarbons)’’ for ‘‘native asphalt, solid and semisolid bitumen, bituminous
rock’’.
1976—Subsec. (a)(1). Pub. L. 94–377, § 11(a), inserted ‘‘or
any subsidiary, affiliate, or persons controlled by or
under common control with such person, association,
or corporation’’ before ‘‘shall take, hold, own or control’’, ‘‘and in no case greater than an aggregate of one
hundred thousand acres in the United States’’ after ‘‘in
any one State,’’ proviso relating to non-relinquishment
of leases or permits by an entity owning or controlling
more than an aggregate of one hundred thousand acres,
and proviso prohibiting ownership or control of further
Federal leases or permits until reduction to below an
aggregate of one hundred thousand acres.
Subsec. (a)(2). Pub. L. 94–377, § 11(b), struck out par.
(2) providing for application, hearing and granting of
additional acreage, not to exceed 5120 acres in any one
State, to a person, association or corporation requiring
such extra acreage to carry on business economically,
and the subsequent reevaluation of such entity’s continuing need for such extra acreage.
Subsec. (l). Pub. L. 94–377, § 15, added subsec. (l).
1964—Subsec. (a)(1). Pub. L. 88–526 struck out
‘‘, except as otherwise provided in this subsection,’’
after ‘‘corporation’’ and increased aggregate number of
acres from 10,240 to 46,080 acres.
Subsec. (c). Pub. L. 88–548 increased aggregate number of acres from 10,240 to 20,480 acres.
1960—Pub. L. 86–705 generally revised provisions and
divided them into subsecs. (a) to (k). Other changes
concerned: maximum acreage in Alaska, unreported options, their unenforceability, form for notice of options, party to give notice, inclusion of options in acreage determinations, charge of association or corporate
holdings against principal stockholders, hearings requirement based upon prima facie evidence of violations, running of time against a lease and the payment
of rentals during a waiver or suspension of a lessee’s
rights.

Page 39

TITLE 30—MINERAL LANDS AND MINING

Pub. L. 86–391 authorized issuance of phosphate permits.
1959—Pub. L. 86–294 inserted provision that the right
of cancellation or forfeiture for violations shall not
apply so as to affect adversely the interest of a bona
fide purchaser in a lease acquired in conformity with
acreage limitations; that bona fide purchasers in such
situations have the right to be dismissed as parties
from proceedings; and that if a party to proceedings
files waiver of rights to drill or assigns his interests, or
if such rights are suspended pending decision, he shall,
if he is not in violation of provisions, have the right to
have his interest extended for a period of time equal to
the period between filing of waiver or order of suspension and final decision, without payment of rental.
1958—Pub. L. 85–698 increased limitation on acreage
which may be taken or held under coal leases or permits in any one State from 5,120 to 10,240 acres, permitted applications for additional coal leases or permits not exceeding 5,120 additional acres in the State,
provided for hearings on such applications, authorized
reevaluation and cancellation of leases and permits for
additional acreage, and prohibited assignment, transfer, or sale of any of the additional acreage without the
Secretary’s approval.
1957—Pub. L. 85–122 struck out ‘‘or permits exceeding
in the aggregate five thousand one hundred and twenty
acres in any one State, and’’ after ‘‘phosphate leases’’
in second sentence.
1954—Act Aug. 2, 1954, increased acreage that any one
person can hold in the aggregate from fifteen thousand
three hundred and sixty acres to forty-six thousand and
eighty acres, increased number of acres that can be
held under option from one hundred thousand acres to
two hundred thousand acres, and extended terms of the
option from 2 to 3 years.
1948—Act June 1, 1948, substituted in second proviso
‘‘within two years after the passage of this Act’’ for
‘‘on or before August 8, 1950’’ in order to allow options
to be exercised up to that time.
Act June 3, 1948, increased aggregate acreage allowed
one person, etc., from two thousand five hundred and
sixty acres to five thousand one hundred and twenty
acres of coal or sodium leases, and increased the aggregate acreage allowed one person, etc., from seven thousand six hundred and eighty acres to fifteen thousand
three hundred and sixty acres of oil or gas leases.
1946—Act Aug. 8, 1946, principally doubled amount of
land that may be leased by any person or corporation
in any one State and abolished former acreage limitation of 2,560 acres on one structure; excluded operating
contracts and leases held in common from definition of
‘‘association’’; inserted provisions relating to options;
and omitted provisions relating to cooperative or unit
plans and operating, drilling or development contracts.
1931—Act Mar. 4, 1931, amended section generally.
1930—Act July 3, 1930, amended section generally.
1926—Act Apr. 30, 1926, amended section generally.
EFFECTIVE DATE OF 1959 AMENDMENT
Pub. L. 86–294, § 2, Sept. 21, 1959, 73 Stat. 571, provided
that: ‘‘The rights granted by the second and third sentences of the amendment contained within section 1 of
this Act [amending this section to provide that holder
of interest in lease has right to be dismissed from cancellation or forfeiture proceedings upon showing he acquired his interest as bona fide purchaser and without
violation of provisions, and to provide right to have his
lease extended if rights thereunder to drill and to assign are suspended or waived during such proceedings
and it is determined he is not in violation of provisions]
shall apply with respect to any proceeding now pending
or initiated after the date of enactment of this Act
[Sept. 21, 1959].’’
SAVINGS PROVISION
See note set out under section 181 of this title.
Pub. L. 94–377, § 11(b), Aug. 4, 1976, 90 Stat. 1090, provided in part that the repeal by section 11(b) of subsec.
(a)(2) of this section is subject to valid existing rights.

§ 184

TRANSFER OF FUNCTIONS
Functions of Secretary of the Interior, referred to in
subsec. (l), to promulgate regulations under this chapter relating to the fostering of competition for Federal
leases, the implementation of alternative bidding systems authorized for the award of Federal leases, the establishment of diligence requirements for operations
conducted on Federal leases, the setting of rates for
production of Federal leases, and the specifying of the
procedures, terms, and conditions for the acquisition
and disposition of Federal royalty interests taken in
kind, transferred to Secretary of Energy by section
7152(b) of Title 42, The Public Health and Welfare. Section 7152(b) of Title 42 was repealed by Pub. L. 97–100,
title II, § 201, Dec. 23, 1981, 95 Stat. 1407, and functions
of Secretary of Energy returned to Secretary of the Interior. See House Report No. 97–315, pp. 25, 26, Nov. 5,
1981.
FINDINGS
Pub. L. 106–463, § 2, Nov. 7, 2000, 114 Stat. 2010, provided that: ‘‘Congress finds that—
‘‘(1) Federal land contains commercial deposits of
coal, the Nation’s largest deposits of coal being located on Federal land in Utah, Colorado, Montana,
and the Powder River Basin of Wyoming;
‘‘(2) coal is mined on Federal land through Federal
coal leases under the Act of February 25, 1920 (commonly known as the ‘Mineral Leasing Act’) (30 U.S.C.
181 et seq.);
‘‘(3) the sub-bituminous coal from these mines is
low in sulfur, making it the cleanest burning coal for
energy production;
‘‘(4) the Mineral Leasing Act sets for each leasable
mineral a limitation on the amount of acreage of
Federal leases any 1 producer may hold in any 1 State
or nationally;
‘‘(5)(A) the present acreage limitation for Federal
coal leases has been in place since 1976;
‘‘(B) currently the coal lease acreage limit of 46,080
acres per State is less than the per-State Federal
lease acreage limit for potash (96,000 acres) and oil
and gas (246,080 acres);
‘‘(6) coal producers in Wyoming and Utah are operating mines on Federal leaseholds that contain total
acreage close to the coal lease acreage ceiling;
‘‘(7) the same reasons that Congress cited in enacting increases for State lease acreage caps applicable
in the case of other minerals—the advent of modern
mine technology, changes in industry economics,
greater global competition, and the need to conserve
Federal resources—apply to coal;
‘‘(8) existing coal mines require additional lease
acreage to avoid premature closure, but those mines
cannot relinquish mined-out areas to lease new acreage because those areas are subject to 10-year reclamation plans, and the reclaimed acreage is counted
against the State and national acreage limits;
‘‘(9) to enable them to make long-term business decisions affecting the type and amount of additional
infrastructure investments, coal producers need certainty that sufficient acreage of leasable coal will be
available for mining in the future; and
‘‘(10) to maintain the vitality of the domestic coal
industry and ensure the continued flow of valuable
revenues to the Federal and State governments and
of energy to the American public from coal production on Federal land, the Mineral Leasing Act should
be amended to increase the acreage limitation for
Federal coal leases.’’
Pub. L. 106–191, § 1, Apr. 28, 2000, 114 Stat. 231, provided
that: ‘‘The Congress finds and declares that—
‘‘(1) The Federal lands contain commercial deposits
of trona, with the world’s largest body of this mineral
located on such lands in southwestern Wyoming.
‘‘(2) Trona is mined on Federal lands through Federal sodium leases issued under the Mineral Leasing
Act of 1920 [30 U.S.C. 181 et seq.].
‘‘(3) The primary product of trona mining is soda
ash (sodium carbonate), a basic industrial chemical

§ 184a

TITLE 30—MINERAL LANDS AND MINING

that is used for glass making and a variety of consumer products, including baking soda, detergents,
and pharmaceuticals.
‘‘(4) The Mineral Leasing Act [30 U.S.C. 181 et seq.]
sets for each leasable mineral limitations on the
amount of acreage of Federal leases any one producer
may hold in any one State or nationally.
‘‘(5) The present acreage limitation for Federal sodium (trona) leases has been in place for over five
decades, since 1948, and is the oldest acreage limitation in the Mineral Leasing Act. Over this time frame
Congress and/or the BLM has revised acreage limits
for other minerals to meet the needs of the respective
industries. Currently, the sodium lease acreage limitation of 15,360 acres per State is approximately onethird of the per State Federal lease acreage cap for
coal (46,080 acres) and potassium (51,200 acres) and
one-sixteenth that of oil and gas (246,080 acres).
‘‘(6) Three of the four trona producers in Wyoming
are operating mines on Federal leaseholds that contain total acreage close to the sodium lease acreage
ceiling.
‘‘(7) The same reasons that Congress cited in enacting increases in other minerals’ per State lease acreage caps apply to trona: the advent of modern mine
technology, changes in industry economics, greater
global competition, and need to conserve the Federal
resource.
‘‘(8) Existing trona mines require additional lease
acreage to avoid premature closure, and are unable to
relinquish mined-out areas to lease new acreage because those areas continue to be used for mine access,
ventilation, and tailings disposal and may provide future opportunities for secondary recovery by solution
mining.
‘‘(9) Existing trona producers are having to make
long term business decisions affecting the type and
amount of additional infrastructure investments
based on the certainty that sufficient acreage of
leaseable [sic] trona will be available for mining in
the future.
‘‘(10) To maintain the vitality of the domestic trona
industry and ensure the continued flow of valuable
revenues to the Federal and State governments and
products to the American public from trona production on Federal lands, the Mineral Leasing Act
should be amended to increase the acreage limitation
for Federal sodium leases.’’
ADMISSION OF ALASKA AS STATE
Admission of Alaska into the Union was accomplished Jan. 3, 1959, on issuance of Proc. No. 3269, Jan.
3, 1959, 24 F.R. 81, 73 Stat. c16, as required by sections
1 and 8(c) of Pub. L. 85–508, July 7, 1958, 72 Stat. 339, set
out as notes preceding section 21 of Title 48, Territories
and Insular Possessions.

§ 184a. Authorization of States to include in
agreements for conservation of oil and gas
resources lands acquired from United States
Notwithstanding the provisions of any applicable grant, deed, patent, exchange, or law of
the United States, any State owning lands or interests therein acquired by it from the United
States may consent to the operation or development of such lands or interests, or any part
thereof, under agreements approved by the Secretary of the Interior made jointly or severally
with lessees or permittees of lands or mineral
deposits of the United States or others, for the
purpose of more properly conserving the oil and
gas resources within such State. Such agreements may provide for the cooperative or unit
operation or development of part or all of any
oil or gas pool, field, or area; for the allocation
of production and the sharing of proceeds from
the whole or any specified part thereof regard-

Page 40

less of the particular tract from which production is obtained or proceeds are derived; and,
with the consent of the State, for the modification of the terms and provisions of State leases
for lands operated and developed thereunder, including the term of years for which said leases
were originally granted, to conform said leases
to the terms and provisions of such agreements:
Provided, That nothing in this section contained,
nor the effectuation of it, shall be construed as
in any respect waiving, determining or affecting
any right, title, or interest, which otherwise
may exist in the United States, and that the
making of any agreement, as provided in this
section, shall not be construed as an admission
as to the title or ownership of the lands included.
(Jan. 26, 1940, ch. 14, 54 Stat. 17.)
CODIFICATION
Section was not enacted as part of act Feb. 25, 1920,
ch. 85, 41 Stat. 437, known as the Mineral Leasing Act,
which comprises this chapter.

§ 185. Rights-of-way for pipelines through Federal lands
(a) Grant of authority
Rights-of-way through any Federal lands may
be granted by the Secretary of the Interior or
appropriate agency head for pipeline purposes
for the transportation of oil, natural gas, synthetic liquid or gaseous fuels, or any refined
product produced therefrom to any applicant
possessing the qualifications provided in section
181 of this title in accordance with the provisions of this section.
(b) Definitions
(1) For the purposes of this section ‘‘Federal
lands’’ means all lands owned by the United
States except lands in the National Park System, lands held in trust for an Indian or Indian
tribe, and lands on the Outer Continental Shelf.
A right-of-way through a Federal reservation
shall not be granted if the Secretary or agency
head determines that it would be inconsistent
with the purposes of the reservation.
(2) ‘‘Secretary’’ means the Secretary of the Interior.
(3) ‘‘Agency head’’ means the head of any Federal department or independent Federal office or
agency, other than the Secretary of the Interior,
which has jurisdiction over Federal lands.
(c) Inter-agency coordination
(1) Where the surface of all of the Federal
lands involved in a proposed right-of-way or permit is under the jurisdiction of one Federal
agency, the agency head, rather than the Secretary, is authorized to grant or renew the
right-of-way or permit for the purposes set forth
in this section.
(2) Where the surface of the Federal lands involved is administered by the Secretary or by
two or more Federal agencies, the Secretary is
authorized, after consultation with the agencies
involved, to grant or renew rights-of-way or permits through the Federal lands involved. The
Secretary may enter into interagency agreements with all other Federal agencies having jurisdiction over Federal lands for the purpose of

Page 41

TITLE 30—MINERAL LANDS AND MINING

avoiding duplication, assigning responsibility,
expediting review of rights-of-way or permit applications, issuing joint regulations, and assuring a decision based upon a comprehensive review of all factors involved in any right-of-way
or permit application. Each agency head shall
administer and enforce the provisions of this
section, appropriate regulations, and the terms
and conditions of rights-of-way or permits insofar as they involve Federal lands under the
agency head’s jurisdiction.
(d) Width limitations
The width of a right-of-way shall not exceed
fifty feet plus the ground occupied by the pipeline (that is, the pipe and its related facilities)
unless the Secretary or agency head finds, and
records the reasons for his finding, that in his
judgment a wider right-of-way is necessary for
operation and maintenance after construction,
or to protect the environment or public safety.
Related facilities include but are not limited to
valves, pump stations, supporting structures,
bridges, monitoring and communication devices,
surge and storage tanks, terminals, roads, airstrips and campsites and they need not necessarily be connected or contiguous to the pipe
and may be the subjects of separate rights-ofway.
(e) Temporary permits
A right-of-way may be supplemented by such
temporary permits for the use of Federal lands
in the vicinity of the pipeline as the Secretary
or agency head finds are necessary in connection
with construction, operation, maintenance, or
termination of the pipeline, or to protect the
natural environment or public safety.
(f) Regulatory authority
Rights-of-way or permits granted or renewed
pursuant to this section shall be subject to regulations promulgated in accord with the provisions of this section and shall be subject to such
terms and conditions as the Secretary or agency
head may prescribe regarding extent, duration,
survey, location, construction, operation, maintenance, use, and termination.
(g) Pipeline safety
The Secretary or agency head shall impose requirements for the operation of the pipeline and
related facilities in a manner that will protect
the safety of workers and protect the public
from sudden ruptures and slow degradation of
the pipeline.
(h) Environmental protection
(1) Nothing in this section shall be construed
to amend, repeal, modify, or change in any way
the requirements of section 102(2)(C) [42 U.S.C.
4332(2)(C)] or any other provision of the National
Environmental Policy Act of 1969 [42 U.S.C. 4321
et seq.].
(2) The Secretary or agency head, prior to
granting a right-of-way or permit pursuant to
this section for a new project which may have a
significant impact on the environment, shall require the applicant to submit a plan of construction, operation, and rehabilitation for such
right-of-way or permit which shall comply with
this section. The Secretary or agency head shall
issue regulations or impose stipulations which

§ 185

shall include, but shall not be limited to: (A) requirements for restoration, revegetation, and
curtailment of erosion of the surface of the land;
(B) requirements to insure that activities in
connection with the right-of-way or permit will
not violate applicable air and water quality
standards nor related facility siting standards
established by or pursuant to law; (C) requirements designed to control or prevent (i) damage
to the environment (including damage to fish
and wildlife habitat), (ii) damage to public or
private property, and (iii) hazards to public
health and safety; and (D) requirements to protect the interests of individuals living in the
general area of the right-of-way or permit who
rely on the fish, wildlife, and biotic resources of
the area for subsistence purposes. Such regulations shall be applicable to every right-of-way or
permit granted pursuant to this section, and
may be made applicable by the Secretary or
agency head to existing rights-of-way or permits, or rights-of-way or permits to be renewed
pursuant to this section.
(i) Disclosure
If the applicant is a partnership, corporation,
association, or other business entity, the Secretary or agency head shall require the applicant to disclose the identity of the participants
in the entity. Such disclosure shall include
where applicable (1) the name and address of
each partner, (2) the name and address of each
shareholder owning 3 per centum or more of the
shares, together with the number and percentage of any class of voting shares of the entity
which such shareholder is authorized to vote,
and (3) the name and address of each affiliate of
the entity together with, in the case of an affiliate controlled by the entity, the number of
shares and the percentage of any class of voting
stock of that affiliate owned, directly or indirectly, by that entity, and, in the case of an affiliate which controls that entity, the number of
shares and the percentage of any class of voting
stock of that entity owned, directly or indirectly, by the affiliate.
(j) Technical and financial capability
The Secretary or agency head shall grant or
renew a right-of-way or permit under this section only when he is satisfied that the applicant
has the technical and financial capability to
construct, operate, maintain, and terminate the
project for which the right-of-way or permit is
requested in accordance with the requirements
of this section.
(k) Public hearings
The Secretary or agency head by regulation
shall establish procedures, including public
hearings where appropriate, to give Federal,
State, and local government agencies and the
public adequate notice and an opportunity to
comment upon right-of-way applications filed
after the date of enactment of this subsection.
(l) Reimbursement of costs
The applicant for a right-of-way or permit
shall reimburse the United States for administrative and other costs incurred in processing
the application, and the holder of a right-of-way
or permit shall reimburse the United States for

§ 185

TITLE 30—MINERAL LANDS AND MINING

the costs incurred in monitoring the construction, operation, maintenance, and termination
of any pipeline and related facilities on such
right-of-way or permit area and shall pay annually in advance the fair market rental value of
the right-of-way or permit, as determined by the
Secretary or agency head.
(m) Bonding
Where he deems it appropriate the Secretary
or agency head may require a holder of a rightof-way or permit to furnish a bond, or other security, satisfactory to the Secretary or agency
head to secure all or any of the obligations imposed by the terms and conditions of the rightof-way or permit or by any rule or regulation of
the Secretary or agency head.
(n) Duration of grant
Each right-of-way or permit granted or renewed pursuant to this section shall be limited
to a reasonable term in light of all circumstances concerning the project, but in no event
more than thirty years. In determining the duration of a right-of-way the Secretary or agency
head shall, among other things, take into consideration the cost of the facility, its useful life,
and any public purpose it serves. The Secretary
or agency head shall renew any right-of-way, in
accordance with the provisions of this section,
so long as the project is in commercial operation and is operated and maintained in accordance with all of the provisions of this section.
(o) Suspension or termination of right-of-way
(1) Abandonment of a right-of-way or noncompliance with any provision of this section
may be grounds for suspension or termination of
the right-of-way if (A) after due notice to the
holder of the right-of-way, (B) a reasonable opportunity to comply with this section, and (C)
an appropriate administrative proceeding pursuant to section 554 of title 5, the Secretary or
agency head determines that any such ground
exists and that suspension or termination is justified. No administrative proceeding shall be required where the right-of-way by its terms provides that it terminates on the occurrence of a
fixed or agreed upon condition, event, or time.
(2) If the Secretary or agency head determines
that an immediate temporary suspension of activities within a right-of-way or permit area is
necessary to protect public health or safety or
the environment, he may abate such activities
prior to an administrative proceeding.
(3) Deliberate failure of the holder to use the
right-of-way for the purpose for which it was
granted or renewed for any continuous two-year
period shall constitute a rebuttable presumption
of abandonment of the right-of-way: Provided,
That where the failure to use the right-of-way is
due to circumstances not within the holder’s
control the Secretary or agency head is not required to commence proceedings to suspend or
terminate the right-of-way.
(p) Joint use of rights-of-way
In order to minimize adverse environmental
impacts and the proliferation of separate rightsof-way across Federal lands, the utilization of
rights-of-way in common shall be required to
the extent practical, and each right-of-way or

Page 42

permit shall reserve to the Secretary or agency
head the right to grant additional rights-of-way
or permits for compatible uses on or adjacent to
rights-of-way or permit area granted pursuant
to this section.
(q) Statutes
No rights-of-way for the purposes provided for
in this section shall be granted or renewed
across Federal lands except under and subject to
the provisions, limitations, and conditions of
this section. Any application for a right-of-way
filed under any other law prior to the effective
date of this provision may, at the applicant’s option, be considered as an application under this
section. The Secretary or agency head may require the applicant to submit any additional information he deems necessary to comply with
the requirements of this section.
(r) Common carriers
(1) Pipelines and related facilities authorized
under this section shall be constructed, operated, and maintained as common carriers.
(2)(A) The owners or operators of pipelines
subject to this section shall accept, convey,
transport, or purchase without discrimination
all oil or gas delivered to the pipeline without
regard to whether such oil or gas was produced
on Federal or non-Federal lands.
(B) In the case of oil or gas produced from Federal lands or from the resources on the Federal
lands in the vicinity of the pipeline, the Secretary may, after a full hearing with due notice
thereof to the interested parties and a proper
finding of facts, determine the proportionate
amounts to be accepted, conveyed, transported
or purchased.
(3)(A) The common carrier provisions of this
section shall not apply to any natural gas pipeline operated by any person subject to regulation under the Natural Gas Act [15 U.S.C. 717 et
seq.] or by any public utility subject to regulation by a State or municipal regulatory agency
having jurisdiction to regulate the rates and
charges for the sale of natural gas to consumers
within the State or municipality.
(B) Where natural gas not subject to State
regulatory or conservation laws governing its
purchase by pipelines is offered for sale, each
such pipeline shall purchase, without discrimination, any such natural gas produced in the vicinity of the pipeline.
(4) The Government shall in express terms reserve and shall provide in every lease of oil
lands under this chapter that the lessee, assignee, or beneficiary, if owner or operator of a
controlling interest in any pipeline or of any
company operating the pipeline which may be
operated accessible to the oil derived from lands
under such lease, shall at reasonable rates and
without discrimination accept and convey the
oil of the Government or of any citizen or company not the owner of any pipeline operating a
lease or purchasing gas or oil under the provisions of this chapter.
(5) Whenever the Secretary has reason to believe that any owner or operator subject to this
section is not operating any oil or gas pipeline
in complete accord with its obligations as a
common carrier hereunder, he may request the
Attorney General to prosecute an appropriate

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TITLE 30—MINERAL LANDS AND MINING

proceeding before the Secretary of Energy or
Federal Energy Regulatory Commission or any
appropriate State agency or the United States
district court for the district in which the pipeline or any part thereof is located, to enforce
such obligation or to impose any penalty provided therefor, or the Secretary may, by proceeding as provided in this section, suspend or
terminate the said grant of right-of-way for noncompliance with the provisions of this section.
(6) The Secretary or agency head shall require,
prior to granting or renewing a right-of-way,
that the applicant submit and disclose all plans,
contracts, agreements, or other information or
material which he deems necessary to determine
whether a right-of-way shall be granted or renewed and the terms and conditions which
should be included in the right-of-way. Such information may include, but is not limited to: (A)
conditions for, and agreements among owners or
operators, regarding the addition of pumping facilities, looping, or otherwise increasing the
pipeline or terminal’s throughput capacity in response to actual or anticipated increases in demand; (B) conditions for adding or abandoning
intake, offtake, or storage points or facilities;
and (C) minimum shipment or purchase tenders.
(s) Exports of Alaskan North Slope oil
(1) Subject to paragraphs (2) through (6) of this
subsection and notwithstanding any other provision of this chapter or any other provision of
law (including any regulation) applicable to the
export of oil transported by pipeline over rightof-way granted pursuant to section 1652 of title
43, such oil may be exported unless the President finds that exportation of this oil is not in
the national interest. The President shall make
his national interest determination within five
months of November 28, 1995. In evaluating
whether exports of this oil are in the national
interest, the President shall at a minimum consider—
(A) whether exports of this oil would diminish the total quantity or quality of petroleum
available to the United States;
(B) the results of an appropriate environmental review, including consideration of appropriate measures to mitigate any potential
adverse effects of exports of this oil on the environment, which shall be completed within
four months of November 28, 1995; and
(C) whether exports of this oil are likely to
cause sustained material oil supply shortages
or sustained oil prices significantly above
world market levels that would cause sustained material adverse employment effects in
the United States or that would cause substantial harm to consumers, including noncontiguous States and Pacific territories.
If the President determines that exports of this
oil are in the national interest, he may impose
such terms and conditions (other than a volume
limitation) as are necessary or appropriate to
ensure that such exports are consistent with the
national interest.
(2) Except in the case of oil exported to a
country with which the United States entered
into a bilateral international oil supply agreement before November 26, 1979, or to a country
pursuant to the International Emergency Oil

§ 185

Sharing Plan of the International Energy Agency, any oil transported by pipeline over right-ofway granted pursuant to section 1652 of title 43
shall, when exported, be transported by a vessel
documented under the laws of the United States
and owned by a citizen of the United States (as
determined in accordance with section 50501 of
title 46).
(3) Nothing in this subsection shall restrict
the authority of the President under the Constitution, the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the
National Emergencies Act (50 U.S.C. 1601 et
seq.), or Part B of title II of the Energy Policy
and Conservation Act (42 U.S.C. 6271–76) to prohibit exports.
(4) The Secretary of Commerce shall issue any
rules necessary for implementation of the President’s national interest determination, including any licensing requirements and conditions,
within 30 days of the date of such determination
by the President. The Secretary of Commerce
shall consult with the Secretary of Energy in
administering the provisions of this subsection.
(5) If the Secretary of Commerce finds that exporting oil under authority of this subsection
has caused sustained material oil supply shortages or sustained oil prices significantly above
world market levels and further finds that these
supply shortages or price increases have caused
or are likely to cause sustained material adverse
employment effects in the United States, the
Secretary of Commerce, in consultation with
the Secretary of Energy, shall recommend, and
the President may take, appropriate action concerning exports of this oil, which may include
modifying or revoking authority to export such
oil.
(6) Administrative action under this subsection is not subject to sections 551 and 553
through 559 of title 5.
(t) Existing rights-of-way
The Secretary or agency head may ratify and
confirm any right-of-way or permit for an oil or
gas pipeline or related facility that was granted
under any provision of law before the effective
date of this subsection, if it is modified by mutual agreement to comply to the extent practical with the provisions of this section. Any action taken by the Secretary or agency head pursuant to this subsection shall not be considered
a major Federal action requiring a detailed
statement pursuant to section 102(2)(C) of the
National Environmental Policy Act of 1970 (Public Law 90–190; 42 U.S.C. 4321).1
(u) Limitations on export
Any domestically produced crude oil transported by pipeline over rights-of-way granted
pursuant to this section, except such crude oil
which is either exchanged in similar quantity
for convenience or increased efficiency of transportation with persons or the government of an
adjacent foreign state, or which is temporarily
exported for convenience or increased efficiency
of transportation across parts of an adjacent foreign state and reenters the United States, shall
be subject to all of the limitations and licensing
1 So in original. Probably should be ‘‘National Environmental
Policy Act of 1969 (Public Law 91–190; 42 U.S.C. 4332(2)(C))’’.

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TITLE 30—MINERAL LANDS AND MINING

requirements of the Export Administration Act
of 1979 (50 U.S.C. App. 2401 and following) and, in
addition, before any crude oil subject to this
section may be exported under the limitations
and licensing requirements and penalty and enforcement provisions of the Export Administration Act of 1979 the President must make and
publish an express finding that such exports will
not diminish the total quantity or quality of petroleum available to the United States, and are
in the national interest and are in accord with
the provisions of the Export Administration Act
of 1979: Provided, That the President shall submit reports to the Congress containing findings
made under this section, and after the date of
receipt of such report Congress shall have a period of sixty calendar days, thirty days of which
Congress must have been in session, to consider
whether exports under the terms of this section
are in the national interest. If the Congress
within this time period passes a concurrent resolution of disapproval stating disagreement
with the President’s finding concerning the national interest, further exports made pursuant
to the aforementioned Presidential findings
shall cease.
(v) State standards
The Secretary or agency head shall take into
consideration and to the extent practical comply with State standards for right-of-way construction, operation, and maintenance.
(w) Reports
(1) The Secretary and other appropriate agency heads shall report to the Committee on Natural Resources of the United States House of Representatives and the Committee on Energy and
Natural Resources of the United States Senate
annually on the administration of this section
and on the safety and environmental requirements imposed pursuant thereto.
(2) The Secretary or agency head shall
promptly notify the Committee on Natural Resources of the United States House of Representatives and the Committee on Energy and Natural Resources of the United States Senate upon
receipt of an application for a right-of-way for a
pipeline twenty-four inches or more in diameter,
and no right-of-way for such a pipeline shall be
granted until a notice of intention to grant the
right-of-way, together with the Secretary’s or
agency head’s detailed findings as to the terms
and conditions he proposes to impose, has been
submitted to such committees.
(3) Periodically, but at least once a year, the
Secretary of the Department of Transportation
shall cause the examination of all pipelines and
associated facilities on Federal lands and shall
cause the prompt reporting of any potential
leaks or safety problems.
(x) Liability
(1) The Secretary or agency head shall promulgate regulations and may impose stipulations
specifying the extent to which holders of rightsof-way and permits under this chapter shall be
liable to the United States for damage or injury
incurred by the United States in connection
with the right-of-way or permit. Where the
right-of-way or permit involves lands which are
under the exclusive jurisdiction of the Federal

Page 44

Government, the Secretary or agency head shall
promulgate regulations specifying the extent to
which holders shall be liable to third parties for
injuries incurred in connection with the rightof-way or permit.
(2) The Secretary or agency head may, by regulation or stipulation, impose a standard of
strict liability to govern activities taking place
on a right-of-way or permit area which the Secretary or agency head determines, in his discretion, to present a foreseeable hazard or risk of
danger to the United States.
(3) Regulations and stipulations pursuant to
this subsection shall not impose strict liability
for damage or injury resulting from (A) an act of
war, or (B) negligence of the United States.
(4) Any regulation or stipulation imposing liability without fault shall include a maximum
limitation on damages commensurate with the
foreseeable risks or hazards presented. Any liability for damage or injury in excess of this
amount shall be determined by ordinary rules of
negligence.
(5) The regulations and stipulations shall also
specify the extent to which such holders shall
indemnify or hold harmless the United States
for liability, damage, or claims arising in connection with the right-of-way or permit.
(6) Any regulation or stipulation promulgated
or imposed pursuant to this section shall provide that all owners of any interest in, and all
affiliates or subsidiaries of any holder of, a
right-of-way or permit shall be liable to the
United States in the event that a claim for damage or injury cannot be collected from the holder.
(7) In any case where liability without fault is
imposed pursuant to this subsection and the
damages involved were caused by the negligence
of a third party, the rules of subrogation shall
apply in accordance with the law of the jurisdiction where the damage occurred.
(y) Antitrust laws
The grant of a right-of-way or permit pursuant
to this section shall grant no immunity from
the operation of the Federal antitrust laws.
(Feb. 25, 1920, ch. 85, § 28, 41 Stat. 449; Aug. 21,
1935, ch. 599, § 1, 49 Stat. 678; Aug. 12, 1953, ch. 408,
67 Stat. 557; Pub. L. 93–153, title I, § 101, Nov. 16,
1973, 87 Stat. 576; Pub. L. 95–91, title III, §§ 301(b),
306, title IV, § 402(a), (b), title VII, §§ 703, 707,
Aug. 4, 1977, 91 Stat. 578, 581, 583, 584, 606, 607;
Pub. L. 99–64, title I, § 123(b), July 12, 1985, 99
Stat. 156; Pub. L. 101–475, § 1, Oct. 30, 1990, 104
Stat. 1102; Pub. L. 103–437, § 11(a)(1), Nov. 2, 1994,
108 Stat. 4589; Pub. L. 104–58, title II, § 201, Nov.
28, 1995, 109 Stat. 560; Pub. L. 104–66, title I,
§ 1121(k), Dec. 21, 1995, 109 Stat. 724.)
REFERENCES IN TEXT
The National Environmental Policy Act of 1969, referred to in subsec. (h)(1), is Pub. L. 91–190, Jan 1, 1970,
83 Stat. 852, as amended, which is classified generally
to chapter 55 (§ 4321 et seq.) of Title 42, The Public
Health and Welfare. For complete classification of this
Act to the Code, see Short Title note set out under section 4321 of Title 42 and Tables.
The date of enactment of this subsection, referred to
in subsec. (k), the effective date of this provision, referred to in subsec. (q), and the effective date of this
subsection, referred to in subsec. (t), probably mean the

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TITLE 30—MINERAL LANDS AND MINING

date of approval of Pub. L. 93–153, which was Nov. 16,
1973.
The Natural Gas Act, referred to in subsec. (r)(3)(A),
is act June 21, 1938, ch. 556, 52 Stat. 821, as amended,
which is classified generally to chapter 15B (§ 717 et
seq.) of Title 15, Commerce and Trade. For complete
classification of this Act to the Code, see section 717w
of Title 15 and Tables.
The International Emergency Economic Powers Act,
referred to in subsec. (s)(3), is title II of Pub. L. 95–223,
Dec. 28, 1977, 91 Stat. 1626, as amended, which is classified generally to chapter 35 (§ 1701 et seq.) of Title 50,
War and National Defense. For complete classification
of this Act to the Code, see Short Title note set out
under section 1701 of Title 50 and Tables.
The National Emergencies Act, referred to in subsec.
(s)(3), is Pub. L. 94–412, Sept. 14, 1976, 90 Stat. 1255, as
amended, which is classified principally to chapter 34
(§ 1601 et seq.) of Title 50. For complete classification of
this Act to the Code, see Short Title note set out under
section 1601 of Title 50 and Tables.
The Energy Policy and Conservation Act, referred to
in subsec. (s)(3), is Pub. L. 94–163, Dec. 22, 1975, 89 Stat.
871, as amended. Part B of title II of the Act is classified generally to part B (§ 6271 et seq.) of subchapter II
of chapter 77 of Title 42, The Public Health and Welfare.
For complete classification of this Act to the Code, see
Short Title note set out under section 6201 of Title 42
and Tables.
The Export Administration Act of 1979, referred to in
subsec. (u), is Pub. L. 96–72, Sept. 29, 1979, 93 Stat. 503,
as amended, which is classified principally to section
2401 et seq. of Title 50, Appendix, War and National Defense. For complete classification of this Act to the
Code, see Short Title note set out under section 2401 of
Title 50, Appendix, and Tables.
CODIFICATION
In subsec. (s)(2), ‘‘section 50501 of title 46’’ substituted
for ‘‘section 2 of the Shipping Act, 1916 (46 U.S.C. App.
802)’’ on authority of Pub. L. 109–304, § 18(c), Oct. 6, 2006,
120 Stat. 1709, which Act enacted section 50501 of Title
46, Shipping.
AMENDMENTS
1995—Subsec. (s). Pub. L. 104–58 amended heading and
text of subsec. (s) generally. Prior to amendment, subsec. (s) provided that the Secretary of Interior, in consultation with Federal and State agencies, review need
for national system of transportation and utility corridors across Federal lands and report to Congress and
the President by July 1, 1975.
Subsec. (w)(4). Pub. L. 104–66 struck out par. (4) which
read as follows: ‘‘The Secretary of the Department of
Transportation shall report annually to the President,
the Congress, the Secretary of the Interior, and the
Secretary of Energy any potential dangers of or actual
explosions, or potential or actual spillage on Federal
lands and shall include in such report a statement of
corrective action taken to prevent such explosion or
spillage.’’
1994—Subsec. (w)(1), (2). Pub. L. 103–437 substituted
‘‘Natural Resources’’ for ‘‘Interior and Insular Affairs’’
before ‘‘of the United States House’’.
1990—Subsec. (w)(1). Pub. L. 101–475, § 1(a), substituted
‘‘Committee on Interior and Insular Affairs of the
United States House of Representatives and the Committee on Energy and Natural Resources of the United
States Senate’’ for ‘‘House and Senate Committees on
Interior and Insular Affairs’’.
Subsec. (w)(2). Pub. L. 101–475, § 1(b), amended par. (2)
generally. Prior to amendment, par. (2) read as follows:
‘‘The Secretary or agency head shall notify the House
and Senate Committees on Interior and Insular Affairs
promptly upon receipt of an application for a right-ofway for a pipeline twenty-four inches or more in diameter, and no right-of-way for such a pipeline shall be
granted until sixty days (not counting days on which
the House of Representatives or the Senate has ad-

§ 185

journed for more than three days) after a notice of intention to grant the right-of-way, together with the
Secretary’s or agency head’s detailed findings as to
terms and conditions he proposes to impose, has been
submitted to such committees, unless each committee
by resolution waives the waiting period.’’
1985—Subsec. (u). Pub. L. 99–64 substituted ‘‘Export
Administration Act of 1979 (50 U.S.C. App. 2401 and following)’’ for ‘‘Export Administration Act of 1969 (Act of
December 30, 1969; 83 Stat. 841)’’ and ‘‘Export Administration Act of 1979’’ for ‘‘Export Administration Act of
1969’’ in two places.
1973—Pub. L. 93–153 completely rewrote the section
substituting 25 subsecs. lettered (a) through (y) covering all aspects of the granting of rights-of-way for pipelines through Federal lands for the former single unlettered paragraph under which rights-of-way of 25 feet on
each side of the pipeline could be granted and under
which the pipeline was to be operated as a common carrier.
1953—Act Aug. 12, 1953, permitted companies subject
to Federal regulation, or public utilities subject to
State regulations, to pass through the public domain
without incurring the obligation to become a common
carrier.
1935—Act Aug. 21, 1935, substituted ‘‘may be granted
by the Secretary of the Interior’’ for ‘‘are granted’’ and
inserted ‘‘and conditions’’ after ‘‘regulations’’ in two
places, and ‘‘and shall accept, convey, transport, or
purchase without discrimination, oil or natural gas
produced from Government lands in the vicinity of the
pipe line in such proportionate amounts as the Secretary of the Interior may, after a full hearing with notice thereof to the interested parties and a proper finding of facts, determine to be reasonable:’’ after ‘‘and
maintained as common carriers.’’.
TRANSFER OF FUNCTIONS
Enforcement functions of Secretary or other official
in Department of the Interior related to compliance
with grants of rights-of-way and temporary use permits
for Federal land and such functions of Secretary or
other official in Department of Agriculture, insofar as
they involve lands and programs under jurisdiction of
Department of Agriculture, related to compliance with
associated land use permits authorized for and in conjunction with grants of rights-of-way across Federal
lands issued under this section with respect to pre-construction, construction, and initial operation of transportation system for Canadian and Alaskan natural gas
were transferred to the Federal Inspector, Office of
Federal Inspector for the Alaska Natural Gas Transportation System, until the first anniversary of date of
initial operation of the Alaska Natural Gas Transportation System, see Reorg. Plan No. 1 of 1979, §§ 102(e),
(f), 203(a), 44 F.R. 33663, 33666, 93 Stat. 1373, 1376, effective July 1, 1979, set out in the Appendix to Title 5,
Government Organization and Employees. Office of
Federal Inspector for the Alaska Natural Gas Transportation System abolished and functions and authority
vested in Inspector transferred to Secretary of Energy
by section 3012(b) of Pub. L. 102–486, set out as an Abolition of Office of Federal Inspector note under section
719e of Title 15, Commerce and Trade. Functions and
authority vested in Secretary of Energy subsequently
transferred to Federal Coordinator for Alaska Natural
Gas Transportation Projects by section 720d(f) of Title
15.
‘‘Secretary of Energy or Federal Energy Regulatory
Commission’’ substituted for ‘‘Interstate Commerce
Commission or Federal Power Commission’’ in subsec.
(r)(5) pursuant to sections 301(b), 306, 402(a), (b), 703, and
707 of Pub. L. 95–91, which are classified to sections
7151(b), 7155, 7172(a), (b), 7293, and 7297 of Title 42, The
Public Health and Welfare, and which transferred functions vested in Interstate Commerce Commission, and
Chairman and members thereof, relating to transportation of oil by pipeline to Secretary of Energy (except
for certain functions which were transferred to Federal
Energy Regulatory Commission within Department of

§ 186

TITLE 30—MINERAL LANDS AND MINING

Energy), and terminated Federal Power Commission
and transferred its functions to Secretary of Energy
(except for certain functions which were transferred to
Federal Energy Regulatory Commission).
REIMBURSEMENT OF ADMINISTRATIVE AND OTHER COSTS
Pub. L. 105–277, div. A, § 101(e) [title II], Oct. 21, 1998,
112 Stat. 2681–231, 2681–272, provided that: ‘‘Notwithstanding any other provision of law, hereafter money
collected, in advance or otherwise, by the Forest Service under authority of section 101 of Public Law 93–153
(30 U.S.C. 185(1)[(l)]) as reimbursement of administrative and other costs incurred in processing pipeline
right-of-way or permit applications and for costs incurred in monitoring the construction, operation,
maintenance, and termination of any pipeline and related facilities, may be used to reimburse the applicable appropriation to which such costs were originally
charged.’’
Similar provisions were contained in the following
prior appropriation acts:
Pub. L. 105–83, title II, Nov. 14, 1997, 111 Stat. 1576.
Pub. L. 104–208, div. A, title I, § 101(d) [title II], Sept.
30, 1996, 110 Stat. 3009–181, 3009–208.
Pub. L. 104–134, title I, § 101(c) [title II], Apr. 26, 1996,
110 Stat. 1321–156, 1321–184; renumbered title I, Pub. L.
104–140, § 1(a), May 2, 1996, 110 Stat. 1327.
Pub. L. 103–332, title II, Sept. 30, 1994, 108 Stat. 2524.
Pub. L. 103–138, title II, Nov. 11, 1993, 107 Stat. 1403.
Pub. L. 102–381, title II, Oct. 5, 1992, 106 Stat. 1401.
Pub. L. 102–154, title II, Nov. 13, 1991, 105 Stat. 1017.
GAO REPORT
Pub. L. 104–58, title II, § 202, Nov. 28, 1995, 109 Stat. 562,
directed the Comptroller General of the United States
to commence, three years after Nov. 28, 1995, a review
of energy production in California and Alaska and the
effects of Alaskan North Slope oil exports, if any, on
consumers, independent refiners, and shipbuilding and
ship repair yards on the West Coast and in Hawaii, and
to submit to Congress, within twelve months after
commencing the review, a report containing recommendations for Congress and the President to address
job loss in the shipbuilding and ship repair industry on
the West Coast, as well as adverse impacts on consumers and refiners on the West Coast and in Hawaii, that
are attributed to Alaska North Slope oil exports.
OUTER CONTINENTAL SHELF; PIPELINE RIGHTS-OF-WAY
Pipeline rights-of-way in connection with oil, gas,
and other leases on submerged lands of outer Continental Shelf, see section 1334 of Title 43, Public Lands.
EXPORTS OF ALASKAN NORTH SLOPE (ANS) CRUDE OIL
Memorandum of President of the United States, Apr.
28, 1996, 61 F.R. 19507, provided:
Memorandum for the Secretary of Commerce [and]
the Secretary of Energy
Pursuant to section 28(s) of the Mineral Leasing Act,
as amended, 30 U.S.C. 185, I hereby determine that exports of crude oil transported over right-of-way granted
pursuant to section 203 of the Trans-Alaska Pipeline
Authorization Act [43 U.S.C. 1652] are in the national
interest. In making this determination, I have taken
into account the conclusions of an interagency working
group, which found that such oil exports:
—will not diminish the total quantity or quality of
petroleum available to the United States; and
—are not likely to cause sustained material oil supply shortages or sustained oil price increases significantly above world market levels that would cause sustained material adverse employment effects in the
United States or that would cause substantial harm to
consumers, including those located in noncontiguous
States and Pacific Territories.
I have also considered the interagency group’s conclusions regarding potential environmental impacts of
lifting the ban. Based on their findings and recommendations, I have concluded that exports of such

Page 46

crude oil will not pose significant risks to the environment if certain terms and conditions are met.
Therefore, pursuant to section 28(s) of the Mineral
Leasing Act I direct the Secretary of Commerce to promulgate immediately a general license, or a license exception, authorizing exports of such crude oil, subject
to appropriate documentation requirements, and consistent with the following conditions:
—tankers exporting ANS exports must use the same
route that they do for shipments to Hawaii until they
reach a point 300 miles due south of Cape Hinchinbrook
Light and then turn toward Asian destinations. After
reaching that point, tankers in the ANS oil trade must
remain outside of the 200 nautical-miles Exclusive Economic Zone of the United States as defined in the Fisheries Conservation and Management Act (16 U.S.C. 1811)
[probably means the Magnuson-Stevens Fishery Conservation and Management Act]. This condition also
applies to tankers returning from foreign ports to
Valdez, Alaska. Exceptions can be made at the discretion of the vessel master only to ensure the safety of
the vessel;
—that export tankers be equipped with satellitebased communications systems that will enable the
Coast Guard independently to determine their location.
The Coast Guard will conduct appropriate monitoring
of the tankers, a measure that will ensure compliance
with the 200-mile condition, and help the Coast Guard
respond quickly to any emergencies;
—the owner or operator of an Alaskan North Slope
crude oil export tankship shall maintain a Critical
Area Inspection Plan for each tankship in the trade in
accordance with the U.S. Coast Guard’s Navigation and
Inspection Circular No. 15–91 as amended, which shall
include an annual internal survey of the vessel’s cargo
block tanks; and
—the owner or operator of an Alaskan North Slope
crude oil export tankship shall adopt a mandatory program of deep water ballast exchange (i.e., in 2,000 meters water depth). Exceptions can be made at the discretion of the captain only in order to ensure the safety
of the vessel. Recordkeeping subject to Coast Guard
audit will be required as part of this regime.
The Secretary of Commerce is authorized and directed to inform the appropriate committees of the
Congress of this determination and to publish it in the
Federal Register.
WILLIAM J. CLINTON.

§ 186. Reservation of easements or rights-of-way
for working purposes; reservation of right to
dispose of surface of lands; determination before offering of lease; easement periods
Any permit, lease, occupation, or use permitted under this chapter shall reserve to the
Secretary of the Interior the right to permit
upon such terms as he may determine to be just,
for joint or several use, such easements or
rights-of-way, including easements in tunnels
upon, through, or in the lands leased, occupied,
or used as may be necessary or appropriate to
the working of the same, or of other lands containing the deposits described in this chapter,
and the treatment and shipment of the products
thereof by or under authority of the Government, its lessees, or permittees, and for other
public purposes. The Secretary of the Interior,
in his discretion, in making any lease under this
chapter, may reserve to the United States the
right to lease, sell, or otherwise dispose of the
surface of the lands embraced within such lease
under existing law or laws hereafter enacted, insofar as said surface is not necessary for use of
the lessee in extracting and removing the deposits therein. If such reservation is made it shall
be so determined before the offering of such

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TITLE 30—MINERAL LANDS AND MINING

lease. The said Secretary, during the life of the
lease, is authorized to issue such permits for
easements herein provided to be reserved.
(Feb. 25, 1920, ch. 85, § 29, 41 Stat. 449.)
§ 187. Assignment or subletting of leases; relinquishment of rights under leases; conditions
in leases for protection of diverse interests
in operation of mines, wells, etc.; State laws
not impaired
No lease issued under the authority of this
chapter shall be assigned or sublet, except with
the consent of the Secretary of the Interior. The
lessee may, in the discretion of the Secretary of
the Interior, be permitted at any time to make
written relinquishment of all rights under such
a lease, and upon acceptance thereof be thereby
relieved of all future obligations under said
lease, and may with like consent surrender any
legal subdivision of the area included within the
lease. Each lease shall contain provisions for the
purpose of insuring the exercise of reasonable
diligence, skill, and care in the operation of said
property; a provision that such rules for the
safety and welfare of the miners and for the prevention of undue waste as may be prescribed by
said Secretary shall be observed, including a restriction of the workday to not exceeding eight
hours in any one day for underground workers
except in cases of emergency; provisions prohibiting the employment of any child under the age
of sixteen in any mine below the surface; provisions securing the workmen complete freedom of
purchase; provision requiring the payment of
wages at least twice a month in lawful money of
the United States, and providing proper rules
and regulations to insure the fair and just
weighing or measurement of the coal mined by
each miner, and such other provisions as he may
deem necessary to insure the sale of the production of such leased lands to the United States
and to the public at reasonable prices, for the
protection of the interests of the United States,
for the prevention of monopoly, and for the safeguarding of the public welfare. None of such provisions shall be in conflict with the laws of the
State in which the leased property is situated.
(Feb. 25, 1920, ch. 85, § 30, 41 Stat. 449; Pub. L.
95–554, § 5, Oct. 30, 1978, 92 Stat. 2074.)
AMENDMENTS
1978—Pub. L. 95–554 substituted ‘‘provisions prohibiting the employment of any child under the age of sixteen in any mine below the surface’’ for ‘‘provisions
prohibiting the employment of any boy under the age
of sixteen or the employment of any girl or woman,
without regard to age, in any mine below the surface’’.

§ 187a. Oil or gas leases; partial assignments
Notwithstanding anything to the contrary in
section 187 of this title, any oil or gas lease issued under the authority of this chapter may be
assigned or subleased, as to all or part of the
acreage included therein, subject to final approval by the Secretary and as to either a divided or undivided interest therein, to any person or persons qualified to own a lease under
this chapter, and any assignment or sublease
shall take effect as of the first day of the lease
month following the date of filing in the proper

§ 187a

land office of three original executed counterparts thereof, together with any required bond
and proof of the qualification under this chapter
of the assignee or sublessee to take or hold such
lease or interest therein. Until such approval,
however, the assignor or sublessor and his surety shall continue to be responsible for the performance of any and all obligations as if no assignment or sublease had been executed. The
Secretary shall disapprove the assignment or
sublease only for lack of qualification of the assignee or sublessee or for lack of sufficient bond:
Provided, however, That the Secretary may, in
his discretion, disapprove an assignment of any
of the following, unless the assignment constitutes the entire lease or is demonstrated to
further the development of oil and gas:
(1) A separate zone or deposit under any
lease.
(2) A part of a legal subdivision.
(3) Less than 640 acres outside Alaska or of
less than 2,560 acres within Alaska.
Requests for approval of assignment or sublease
shall be processed promptly by the Secretary.
Except where the assignment or sublease is not
in accordance with applicable law, the approval
shall be given within 60 days of the date of receipt by the Secretary of a request for such approval. Upon approval of any assignment or sublease, the assignee or sublessee shall be bound
by the terms of the lease to the same extent as
if such assignee or sublessee were the original
lessee, any conditions in the assignment or sublease to the contrary notwithstanding. Any partial assignment of any lease shall segregate the
assigned and retained portions thereof, and as
above provided, release and discharge the assignor from all obligations thereafter accruing
with respect to the assigned lands; and such segregated leases shall continue in full force and effect for the primary term of the original lease,
but for not less than two years after the date of
discovery of oil or gas in paying quantities upon
any other segregated portion of the lands originally subject to such lease. Assignments under
this section may also be made of parts of leases
which are in their extended term because of any
provision of this chapter. Upon the segregation
by an assignment of a lease issued after September 2, 1960 and held beyond its primary term by
production, actual or suspended, or the payment
of compensatory royalty, the segregated lease of
an undeveloped, assigned, or retained part shall
continue for two years, and so long thereafter as
oil or gas is produced in paying quantities.
(Feb. 25, 1920, ch. 85, § 30A, formerly § 30a, as
added Aug. 8, 1946, ch. 916, § 7, 60 Stat. 955;
amended July 29, 1954, ch. 644, § 1(6), 68 Stat. 585;
Pub. L. 86–705, § 6, Sept. 2, 1960, 74 Stat. 790; renumbered § 30A and amended Pub. L. 100–203,
title V, § 5103, Dec. 22, 1987, 101 Stat. 1330–258.)
AMENDMENTS
1987—Pub. L. 100–203 substituted third to fifth sentences for former third sentence which read as follows:
‘‘The Secretary shall disapprove the assignment or sublease only for lack of qualification of the assignee or
sublessee or for lack of sufficient bond: Provided, however, That the Secretary may, in his discretion, disapprove an assignment of a separate zone or deposit
under any lease, or of a part of a legal subdivision.’’

§ 187b

TITLE 30—MINERAL LANDS AND MINING

1960—Pub. L. 86–705 amended last sentence to restrict
automatic extensions after Sept. 2, 1960.
1954—Act July 29, 1954, authorized partial assignment
of a lease in its extended term regardless of reason for
extension.
SAVINGS PROVISION
See note set out under section 181 of this title.
LEASES ISSUED PRIOR TO SEPTEMBER 2, 1960
Pub. L. 86–705, § 6, Sept. 2, 1960, 74 Stat. 790, provided
in part that: ‘‘The provisions of this section 6 [amending this section] shall not be applicable to any lease issued prior to the effective date of this Act [Sept. 2,
1960].’’

§ 187b. Oil or gas leases; written relinquishment
of rights; release of obligations
Notwithstanding any provision to the contrary in section 187 of this title, a lessee may at
any time make and file in the appropriate land
office a written relinquishment of all rights
under any oil or gas lease issued under the authority of this chapter or of any legal subdivision of the area included within any such lease.
Such relinquishment shall be effective as of the
date of its filing, subject to the continued obligation of the lessee and his surety to make payment of all accrued rentals and royalties and to
place all wells on the lands to be relinquished in
condition for suspension or abandonment in accordance with the applicable lease terms and
regulations; thereupon the lessee shall be released of all obligations thereafter accruing
under said lease with respect to the lands relinquished, but no such relinquishment shall release such lessee, or his bond, from any liability
for breach of any obligation of the lease, other
than an obligation to drill, accrued at the date
of the relinquishment.
(Feb. 25, 1920, ch. 85, § 30B, formerly § 30b, as
added Aug. 8, 1946, ch. 916, § 8, 60 Stat. 956; renumbered § 30B, Pub. L. 100–203, title V, § 5103,
Dec. 22, 1987, 101 Stat. 1330–258.)
SAVINGS PROVISION
See note set out under section 181 of this title.

§ 188. Failure to comply with provisions of lease
(a) Forfeiture
Except as otherwise herein provided, any lease
issued under the provisions of this chapter may
be forfeited and canceled by an appropriate proceeding in the United States district court for
the district in which the property, or some part
thereof, is located whenever the lessee fails to
comply with any of the provisions of this chapter, of the lease, or of the general regulations
promulgated under this chapter and in force at
the date of the lease; and the lease may provide
for resort to appropriate methods for the settlement of disputes or for remedies for breach of
specified conditions thereof.
(b) Cancellation
Any lease issued after August 21, 1935, under
the provisions of section 226 of this title shall be
subject to cancellation by the Secretary of the
Interior after 30 days notice upon the failure of
the lessee to comply with any of the provisions
of the lease, unless or until the leasehold con-

Page 48

tains a well capable of production of oil or gas
in paying quantities, or the lease is committed
to an approved cooperative or unit plan or
communitization agreement under section
226(m) of this title which contains a well capable
of production of unitized substances in paying
quantities. Such notice in advance of cancellation shall be sent the lease owner by registered
letter directed to the lease owner’s record postoffice address, and in case such letter shall be
returned as undelivered, such notice shall also
be posted for a period of thirty days in the
United States land office for the district in
which the land covered by such lease is situated,
or in the event that there is no district land office for such district, then in the post office
nearest such land. Notwithstanding the provisions of this section, however, upon failure of a
lessee to pay rental on or before the anniversary
date of the lease, for any lease on which there is
no well capable of producing oil or gas in paying
quantities, the lease shall automatically terminate by operation of law: Provided, however, That
when the time for payment falls upon any day in
which the proper office for payment is not open,
payment may be received the next official working day and shall be considered as timely made:
Provided, That if the rental payment due under
a lease is paid on or before the anniversary date
but either (1) the amount of the payment has
been or is hereafter deficient and the deficiency
is nominal, as determined by the Secretary by
regulation, or (2) the payment was calculated in
accordance with the acreage figure stated in the
lease, or in any decision affecting the lease, or
made in accordance with a bill or decision which
has been rendered by him and such figure, bill,
or decision is found to be in error resulting in a
deficiency, such lease shall not automatically
terminate unless (1) a new lease had been issued
prior to May 12, 1970, or (2) the lessee fails to pay
the deficiency within the period prescribed in a
notice of deficiency sent to him by the Secretary.
(c) Reinstatement
Where any lease has been or is hereafter terminated automatically by operation of law
under this section for failure to pay on or before
the anniversary date the full amount of rental
due, but such rental was paid on or tendered
within twenty days thereafter, and it is shown
to the satisfaction of the Secretary of the Interior that such failure was either justifiable or
not due to a lack of reasonable diligence on the
part of the lessee, the Secretary may reinstate
the lease if—
(1) a petition for reinstatement, together
with the required rental, including back rental
accruing from the date of termination of the
lease, is filed with the Secretary; and
(2) no valid lease has been issued affecting
any of the lands covered by the terminated
lease prior to the filing of said petition. The
Secretary shall not issue any new lease affecting any of the lands covered by such terminated lease for a reasonable period, as determined in accordance with regulations issued
by him. In any case where a reinstatement of
a terminated lease is granted under this subsection and the Secretary finds that the rein-

Page 49

TITLE 30—MINERAL LANDS AND MINING

statement of such lease will not afford the lessee a reasonable opportunity to continue operations under the lease, the Secretary may, at
his discretion, extend the term of such lease
for such period as he deems reasonable: Provided, That (A) such extension shall not exceed
a period equivalent to the time beginning
when the lessee knew or should have known of
the termination and ending on the date the
Secretary grants such petition; (B) such extension shall not exceed a period equal to the unexpired portion of the lease or any extension
thereof remaining at the date of termination;
and (C) when the reinstatement occurs after
the expiration of the term or extension thereof
the lease may be extended from the date the
Secretary grants the petition.
(d) Additional grounds for reinstatement
(1) Where any oil and gas lease issued pursuant
to section 226(b) or (c) of this title or the Mineral Leasing Act for Acquired Lands (30 U.S.C.
351 et seq.) has been, or is hereafter, terminated
automatically by operation of law under this
section for failure to pay on or before the anniversary date the full amount of the rental due,
and such rental is not paid or tendered within
twenty days thereafter, and it is shown to the
satisfaction of the Secretary of the Interior that
such failure was justifiable or not due to lack of
reasonable diligence on the part of the lessee,
or, no matter when the rental is paid after termination, it is shown to the satisfaction of the
Secretary that such failure was inadvertent, the
Secretary may reinstate the lease as of the date
of termination for the unexpired portion of the
primary term of the original lease or any extension thereof remaining at the date of termination, and so long thereafter as oil or gas is
produced in paying quantities. In any case
where a lease is reinstated under this subsection
and the Secretary finds that the reinstatement
of such lease (A) occurs after the expiration of
the primary term or any extension thereof, or
(B) will not afford the lessee a reasonable opportunity to continue operations under the lease,
the Secretary may, at his discretion, extend the
term of such lease for such period as he deems
reasonable, but in no event for more than two
years from the date the Secretary authorizes
the reinstatement and so long thereafter as oil
or gas is produced in paying quantities.
(2) No lease shall be reinstated under paragraph (1) of this subsection unless—
(A) with respect to any lease that terminated under subsection (b) on or before August
8, 2005, a petition for reinstatement (together
with the required back rental and royalty accruing after the date of termination) is filed
on or before the earlier of—
(i) 60 days after the lessee receives from
the Secretary notice of termination, whether by return of check or by any other form
of actual notice; or
(ii) 15 months after the termination of the
lease; or
(B) with respect to any lease that terminates
under subsection (b) after August 8, 2005, a petition for reinstatement (together with the required back rental and royalty accruing after
the date of termination) is filed on or before
the earlier of—

§ 188

(i) 60 days after receipt of the notice of termination sent by the Secretary by certified
mail to all lessees of record; or
(ii) 24 months after the termination of the
lease.
(e) Conditions for reinstatement
Any reinstatement under subsection (d) of this
section shall be made only if these conditions
are met:
(1) no valid lease, whether still in existence
or not, shall have been issued affecting any of
the lands covered by the terminated lease
prior to the filing of such petition: Provided,
however, That after receipt of a petition for reinstatement, the Secretary shall not issue any
new lease affecting any of the lands covered by
such terminated lease for a reasonable period,
as determined in accordance with regulations
issued by him;
(2) payment of back rentals and either the
inclusion in a reinstated lease issued pursuant
to the provisions of section 226(b) of this title
of a requirement for future rentals at a rate of
not less than $10 per acre per year, or the inclusion in a reinstated lease issued pursuant
to the provisions of section 226(c) of this title
of a requirement that future rentals shall be
at a rate not less than $5 per acre per year, all
as determined by the Secretary;
(3)(A) payment of back royalties and the inclusion in a reinstated lease issued pursuant
to the provisions of section 226(b) of this title
of a requirement for future royalties at a rate
of not less than 162⁄3 percent computed on a
sliding scale based upon the average production per well per day, at a rate which shall be
not less than 4 percentage points greater than
the competitive royality 1 schedule then in
force and used for royalty determination for
competitive leases issued pursuant to such
section as determined by the Secretary: Provided, That royalty on such reinstated lease
shall be paid on all production removed or sold
from such lease subsequent to the termination
of the original lease;
(B) payment of back royalties and inclusion
in a reinstated lease issued pursuant to the
provisions of section 226(c) of this title of a requirement for future royalties at a rate not
less than 162⁄3 percent: Provided, That royalty
on such reinstated lease shall be paid on all
production removed or sold from such lease
subsequent to the cancellation or termination
of the original lease; and
(4) notice of the proposed reinstatement of a
terminated lease, including the terms and conditions of reinstatement, shall be published in
the Federal Register at least thirty days in advance of the reinstatement.
A copy of said notice, together with information
concerning rental, royalty, volume of production, if any, and any other matter which the
Secretary deemed significant in making this determination to reinstate, shall be furnished to
the Committee on Natural Resources of the
House of Representatives and the Committee on
Energy and Natural Resources of the Senate at
least thirty days in advance of the reinstate1 So

in original. Probably should be ‘‘royalty’’.

§ 188

TITLE 30—MINERAL LANDS AND MINING

ment. The lessee of a reinstated lease shall reimburse the Secretary for the administrative
costs of reinstating the lease, but not to exceed
$500. In addition the lessee shall reimburse the
Secretary for the cost of publication in the Federal Register of the notice of proposed reinstatement.
(f) Issuance of noncompetitive oil and gas lease;
conditions
Where an unpatented oil placer mining claim
validly located prior to February 24, 1920, which
has been or is currently producing or is capable
of producing oil or gas, has been or is hereafter
deemed conclusively abandoned for failure to
file timely the required instruments or copies of
instruments required by section 1744 of title 43,
and it is shown to the satisfaction of the Secretary that such failure was inadvertent, justifiable, or not due to lack of reasonable diligence
on the part of the owner, the Secretary may
issue, for the lands covered by the abandoned
unpatented oil placer mining claim, a noncompetitive oil and gas lease, consistent with
the provisions of section 226(e) of this title, to be
effective from the statutory date the claim was
deemed conclusively abandoned. Issuance of
such a lease shall be conditioned upon:
(1) a petition for issuance of a noncompetitive oil and gas lease, together with the required rental and royalty, including back
rental and royalty accruing from the statutory date of abandonment of the oil placer
mining claim, being filed with the Secretary—
(A) with respect to any claim deemed conclusively abandoned on or before January 12,
1983, on or before the one hundred and twentieth day after January 12, 1983, or
(B) with respect to any claim deemed conclusively abandoned after January 12, 1983,
on or before the one hundred and twentieth
day after final notification by the Secretary
or a court of competent jurisdiction of the
determination of the abandonment of the oil
placer mining claim;
(2) a valid lease not having been issued affecting any of the lands covered by the abandoned oil placer mining claim prior to the filing of such petition: Provided, however, That
after the filing of a petition for issuance of a
lease under this subsection, the Secretary
shall not issue any new lease affecting any of
the lands covered by such abandoned oil placer
mining claim for a reasonable period, as determined in accordance with regulations issued
by him;
(3) a requirement in the lease for payment of
rental, including back rentals accruing from
the statutory date of abandonment of the oil
placer mining claim, of not less than $5 per
acre per year;
(4) a requirement in the lease for payment of
royalty on production removed or sold from
the oil placer mining claim, including all royalty on production made subsequent to the
statutory date the claim was deemed conclusively abandoned, of not less than 121⁄2 percent;
and
(5) compliance with the notice and reimbursement of costs provisions of paragraph (4)
of subsection (e) but addressed to the petition

Page 50

covering the conversion of an abandoned unpatented oil placer mining claim to a noncompetitive oil and gas lease.
(g) Treatment of leases
(1) Except as otherwise provided in this section, a reinstated lease shall be treated as a
competitive or a noncompetitive oil and gas
lease in the same manner as the original lease
issued pursuant to section 226(b) or (c) of this
title.
(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 226(c) of this title.
(3) Notwithstanding any other provision of
law, any lease issued pursuant to section 223 of
this title shall be eligible for reinstatement
under the terms and conditions set forth in subsections (c), (d), and (e) of this section, applicable to leases issued under section 226(c) of this
title except, that, upon reinstatement, such
lease shall continue for twenty years and so long
thereafter as oil or gas is produced in paying
quantities.
(4) Notwithstanding any other provision of
law, any lease issued pursuant to section 223 of
this title shall, upon renewal on or after November 15, 1990, continue for twenty years and so
long thereafter as oil or gas is produced in paying quantities.
(h) Statutory provisions applicable to leases
The minimum royalty provisions of section
226(m) of this title and the provisions of section
209 of this title shall be applicable to leases issued pursuant to subsections (d) and (f) of this
section.
(i) 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.
(j) Discretion of Secretary
Where, in the judgment of the Secretary of the
Interior, drilling operations were being dili-

Page 51

TITLE 30—MINERAL LANDS AND MINING

gently conducted on the last day of the primary
term of the lease, and, except for nonpayment of
rental, the lessee would have been entitled to
extension of his lease, pursuant to section
226–1(d) of this title, the Secretary of the Interior may reinstate such lease notwithstanding
the failure of the lessee to have made payment
of the next year’s rental, provided the conditions of subparagraphs (1) and (2) of section 1 (c)
are satisfied.
(Feb. 25, 1920, ch. 85, § 31, 41 Stat. 450; Aug. 8,
1946, ch. 916, § 9, 60 Stat. 956; July 29, 1954, ch. 644,
§ 1(7), 68 Stat. 585; Pub. L. 87–822, § 1, Oct. 15, 1962,
76 Stat. 943; Pub. L. 91–245, §§ 1, 2, May 12, 1970,
84 Stat. 206; Pub. L. 97–451, title IV, § 401, Jan. 12,
1983, 96 Stat. 2462; Pub. L. 100–203, title V,
§§ 5102(d)(2), 5104, Dec. 22, 1987, 101 Stat. 1330–258,
1330–259; Pub. L. 101–567, § 1, Nov. 15, 1990, 104
Stat. 2802; Pub. L. 103–437, § 11(a)(1), Nov. 2, 1994,
108 Stat. 4589; Pub. L. 109–58, title III, § 371(b),
Aug. 8, 2005, 119 Stat. 734.)
REFERENCES IN TEXT
The Mineral Leasing Act for Acquired Lands, referred
to in subsec. (d)(1), is act Aug. 7, 1947, ch. 513, 61 Stat.
913, as amended, which is classified generally to chapter 7 (§ 351 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set
out under section 351 of this title and Tables.
AMENDMENTS
2005—Subsec. (d)(2)(A), (B). Pub. L. 109–58 added subpars. (A) and (B) and struck out former subpars. (A) and
(B), which related to reinstatement with respect to any
lease that terminated under subsec. (b) of this section
prior to Jan. 12, 1983, and reinstatement with respect to
any lease that terminated under subsec. (b) of this section on or after Jan. 12, 1983.
1994—Subsec. (e). Pub. L. 103–437 substituted ‘‘Natural
Resources’’ for ‘‘Interior and Insular Affairs’’ before ‘‘of
the House’’ in concluding provisions.
1990—Subsec. (g)(3), (4). Pub. L. 101–567 added pars. (3)
and (4).
1987—Subsec. (b). Pub. L. 100–203, § 5104, amended first
sentence generally. Prior to amendment, first sentence
read as follows: ‘‘Any lease issued after August 21, 1935,
under the provisions of section 226 of this title shall be
subject to cancellation by the Secretary of the Interior
after thirty days’ notice upon the failure of the lessee
to comply with any of the provisions of the lease, unless or until the land covered by any such lease is
known to contain valuable deposits of oil or gas.’’
Subsec. (h). Pub. L. 100–203, § 5102(d)(2), substituted
‘‘section 226(m)’’ for ‘‘section 226(j)’’.
1983—Subsecs. (d) to (j). Pub. L. 97–451 added subsecs.
(d) to (i) and redesignated former subsec. (d) as (j).
1970—Subsec. (b). Pub. L. 91–245, § 1, inserted proviso
authorizing continuance of a lease where timely paid
rent is nominally deficient or miscalculated due to an
error either in acreage figure stated in the lease, in any
decision affecting the lease, or in a bill or decision rendered by the Secretary, except where a new lease was
issued prior to May 12, 1970 or the lessee failed to pay
the deficiency within the period allowed by the Secretary.
Subsec. (c). Pub. L. 91–245, § 2, inserted provisions allowing reinstatement of a lease despite a twenty-day
delay in payment of rent, made the payment of back
rental accruing from the date of termination of the
lease a prerequisite to such reinstatement, restricted
the Secretary’s power to issue a new lease on the lands
covered by the terminated lease, gave the Secretary
discretion to extend the term of a reinstated lease so as
to afford the lessee a reasonable opportunity to con1 So

in original. Probably should be ‘‘subsection’’.

§ 188a

tinue operations under the lease, and struck out requirement that the petition for reinstatement of any
lease terminated prior to Oct. 15, 1962 be filed within
180 days after Oct. 15, 1962.
1962—Pub. L. 87–822 designated existing pars. as subsecs. (a) and (b) and added subsecs. (c) and (d).
1954—Act July 29, 1954, provided for automatic termination of a lease on failure to pay rental on or before
anniversary date of lease, for any lease on which there
is no well capable of producing oil or gas in paying
quantities.
1946—Act Aug. 8, 1946, principally added second par.
relating to cancellation of leases by Secretary of the
Interior.
SAVINGS PROVISION
See note set out under section 181 of this title.
REINSTATEMENT OF LEASES
Pub. L. 109–58, title III, § 371(a), Aug. 8, 2005, 119 Stat.
734, provided that:
‘‘Notwithstanding section 31(d)(2)(B) of the Mineral
Leasing Act (30 U.S.C. 188(d)(2)(B)) as in effect before
the effective date of this section [probably means the
date of enactment of Pub. L. 109–58, Aug. 8, 2005], and
notwithstanding the amendment made by subsection
(b) of this section [amending this section], the Secretary of the Interior may reinstate any oil and gas
lease issued under that Act [30 U.S.C. 181 et seq.] that
was terminated for failure of a lessee to pay the full
amount of rental on or before the anniversary date of
the lease, during the period beginning on September 1,
2001, and ending on June 30, 2004, if—
‘‘(1) not later than 120 days after the date of enactment of this Act [Aug. 8, 2005], the lessee—
‘‘(A) files a petition for reinstatement of the
lease;
‘‘(B) complies with the conditions of section 31(e)
of the Mineral Leasing Act (30 U.S.C. 188(e)); and
‘‘(C) certifies that the lessee did not receive a notice of termination by the date that was 13 months
before the date of termination; and
‘‘(2) the land is available for leasing.’’
AUTHORITY FOR ISSUANCE OF LEASES UNAFFECTED BY
REINSTATEMENT OF LEASES
Pub. L. 87–822, § 2, Oct. 15, 1962, 76 Stat. 943, provided
that: ‘‘Nothing in this Act [amending this section]
shall be construed as limiting the authority of the Secretary of the Interior to issue, during the periods in
which petitions for reinstatement may be filed, oil and
gas leases for any of the lands affected.’’
OUTER CONTINENTAL SHELF; CANCELLATION OF LEASES
Cancellation of mineral leases on submerged lands of
outer Continental Shelf, see sections 1334 and 1337 of
Title 43, Public Lands.

§ 188a. Surrender of leases
The Secretary of the Interior is authorized to
accept the surrender of any lease issued pursuant to any of the provisions of this chapter, or
any amendment thereof, where the surrender is
filed in the Bureau of Land Management subsequent to the accrual but prior to the payment of
the yearly rental due under the lease, upon payment of the accrued rental on a pro rata monthly basis for the portion of the lease year prior to
the filing of the surrender. The authority granted to the Secretary of the Interior by this section shall extend only to cases in which he finds
that the failure of the lessee to file a timely surrender of the lease prior to the accrual of the
rental was not due to a lack of reasonable diligence, but it shall not extend to claims or cases
which have been referred to the Department of
Justice for purposes of suit.

§ 189

TITLE 30—MINERAL LANDS AND MINING

(Nov. 28, 1943, ch. 329, 57 Stat. 593; 1946 Reorg.
Plan No. 3, § 403, eff. July 16, 1946, 11 F.R. 7876, 60
Stat. 1100.)
CODIFICATION
Section was not enacted as part of act Feb. 25, 1920,
ch. 85, 41 Stat. 437, known as the Mineral Leasing Act,
which comprises this chapter.
TRANSFER OF FUNCTIONS
‘‘Bureau of Land Management’’ substituted in text
for ‘‘General Land Office’’ on authority of Reorg. Plan
No. 3 of 1946, § 403, set out in the Appendix to Title 5,
Government Organization and Employees.

§ 189. Rules and regulations; boundary lines;
State rights unaffected; taxation
The Secretary of the Interior is authorized to
prescribe necessary and proper rules and regulations and to do any and all things necessary to
carry out and accomplish the purposes of this
chapter, also to fix and determine the boundary
lines of any structure, or oil or gas field, for the
purposes of this chapter. Nothing in this chapter
shall be construed or held to affect the rights of
the States or other local authority to exercise
any rights which they may have, including the
right to levy and collect taxes upon improvements, output of mines, or other rights, property, or assets of any lessee of the United
States.
(Feb. 25, 1920, ch. 85, § 32, 41 Stat. 450.)
TRANSFER OF FUNCTIONS
Functions of Secretary of the Interior to promulgate
regulations under this chapter relating to fostering of
competition for Federal leases, implementation of alternative bidding systems authorized for award of Federal leases, establishment of diligence requirements for
operations conducted on Federal leases, setting of rates
for production of Federal leases, and specifying of procedures, terms, and conditions for acquisition and disposition of Federal royalty interests taken in kind,
transferred to Secretary of Energy by section 7152(b) of
Title 42, The Public Health and Welfare. Section 7152(b)
of Title 42 was repealed by Pub. L. 97–100, title II, § 201,
Dec. 23, 1981, 95 Stat. 1407, and functions of Secretary of
Energy returned to Secretary of the Interior. See
House Report No. 97–315, pp. 25, 26, Nov. 5, 1981.
OUTER CONTINENTAL SHELF; RULES AND REGULATIONS
WITH RESPECT TO LEASES
Rules and regulations with respect to mineral leases
on submerged lands of outer Continental Shelf to be
prescribed by Secretary of the Interior, see section 1334
of Title 43, Public Lands.

§ 190. Oath; requirement; form; blanks
All statements, representations, or reports required by the Secretary of the Interior under
this chapter shall be upon oath, unless otherwise
specified by him, and in such form and upon
such blanks as the Secretary of the Interior may
require.
(Feb. 25, 1920, ch. 85, § 33, 41 Stat. 450.)
§ 191. Disposition of moneys received
(a) In general
All money received from sales, bonuses, royalties including interest charges collected under
the Federal Oil and Gas Royalty Management
Act of 1982 [30 U.S.C. 1701 et seq.], and rentals of

Page 52

the public lands under the provisions of this
chapter and the Geothermal Steam Act of 1970
[30 U.S.C. 1001 et seq.], shall be paid into the
Treasury of the United States; and, subject to
the provisions of subsection (b), 50 per centum
thereof shall be paid by the Secretary of the
Treasury to the State other than Alaska within
the boundaries of which the leased lands or deposits are or were located; said moneys paid to
any of such States on or after January 1, 1976, to
be used by such State and its subdivisions, as
the legislature of the State may direct giving
priority to those subdivisions of the State socially or economically impacted by development
of minerals leased under this chapter, for (i)
planning, (ii) construction and maintenance of
public facilities, and (iii) provision of public
service; and excepting those from Alaska, 40 per
centum thereof shall be paid into, reserved, appropriated, as part of the reclamation fund created by the Act of Congress known as the Reclamation Act, approved June 17, 1902, and of
those from Alaska, 90 per centum thereof shall
be paid to the State of Alaska for disposition by
the legislature thereof: Provided, That all moneys which may accrue to the United States
under the provisions of this chapter and the
Geothermal Steam Act of 1970 from lands within
the naval petroleum reserves shall be deposited
in the Treasury as ‘‘miscellaneous receipts’’, as
provided by section 7433(b) of title 10. All moneys received under the provisions of this chapter
and the Geothermal Steam Act of 1970 not otherwise disposed of by this section shall be credited
to miscellaneous receipts. Payments to States
under this section with respect to any moneys
received by the United States, shall be made not
later than the last business day of the month in
which such moneys are warranted by the United
States Treasury to the Secretary as having been
received, except for any portion of such moneys
which is under challenge and placed in a suspense account pending resolution of a dispute.
Such warrants shall be issued by the United
States Treasury not later than 10 days after receipt of such moneys by the Treasury. Moneys
placed in a suspense account which are determined to be payable to a State shall be made
not later than the last business day of the
month in which such dispute is resolved. Any
such amount placed in a suspense account pending resolution shall bear interest until the dispute is resolved.
(b) Deduction for administrative costs
In determining the amount of payments to the
States under this section, beginning in fiscal
year 2014 and for each year thereafter, the
amount of such payments shall be reduced by 2
percent for any administrative or other costs incurred by the United States in carrying out the
program authorized by this chapter, and the
amount of such reduction shall be deposited to
miscellaneous receipts of the Treasury.
(c) Rentals received on or after August 8, 2005
(1) Notwithstanding the first sentence of subsection (a), any rentals received from leases in
any State (other than the State of Alaska) on or
after August 8, 2005, shall be deposited in the
Treasury, to be allocated in accordance with
paragraph (2).

Page 53

TITLE 30—MINERAL LANDS AND MINING

(2) Of the amounts deposited in the Treasury
under paragraph (1)—
(A) 50 percent shall be paid by the Secretary
of the Treasury to the State within the boundaries of which the leased land is located or the
deposits were derived; and
(B) 50 percent shall be deposited in a special
fund in the Treasury, to be known as the
‘‘BLM Permit Processing Improvement Fund’’
(referred to in this subsection as the ‘‘Fund’’).
(3) USE OF FUND.—
(A) IN GENERAL.—The Fund shall be available to the Secretary of the Interior for expenditure, without further appropriation and
without fiscal year limitation, for the coordination and processing of oil and gas use authorizations on onshore Federal and Indian
trust mineral estate land.
(B) ACCOUNTS.—The Secretary shall divide
the Fund into—
(i) a Rental Account (referred to in this
subsection as the ‘‘Rental Account’’) comprised of rental receipts collected under this
section; and
(ii) a Fee Account (referred to in this subsection as the ‘‘Fee Account’’) comprised of
fees collected under subsection (d).
(4) RENTAL ACCOUNT.—
(A) IN GENERAL.—The Secretary shall use the
Rental Account for—
(i) the coordination and processing of oil
and gas use authorizations on onshore Federal and Indian trust mineral estate land
under the jurisdiction of the Project offices
identified under section 15924(d) of title 42;
and
(ii) training programs for development of
expertise related to coordinating and processing oil and gas use authorizations.
(B) ALLOCATION.—In determining the allocation of the Rental Account among Project offices for a fiscal year, the Secretary shall consider—
(i) the number of applications for permit
to drill received in a Project office during
the previous fiscal year;
(ii) the backlog of applications described
in clause (i) in a Project office;
(iii) publicly available industry forecasts
for development of oil and gas resources
under the jurisdiction of a Project office;
and
(iv) any opportunities for partnership with
local industry organizations and educational
institutions in developing training programs
to facilitate the coordination and processing
of oil and gas use authorizations.
(5) FEE ACCOUNT.—
(A) IN GENERAL.—The Secretary shall use the
Fee Account for the coordination and processing of oil and gas use authorizations on onshore Federal and Indian trust mineral estate
land.
(B) ALLOCATION.—The Secretary shall transfer not less than 75 percent of the revenues
collected by an office for the processing of applications for permits to the State office of
the State in which the fees were collected.

§ 191

(d) BLM oil and gas permit processing fee
(1) In general
Notwithstanding any other provision of law,
for each of fiscal years 2016 through 2026, the
Secretary, acting through the Director of the
Bureau of Land Management, shall collect a
fee for each new application for a permit to
drill that is submitted to the Secretary.
(2) Amount
The amount of the fee shall be $9,500 for each
new application, as indexed for United States
dollar inflation from October 1, 2015 (as measured by the Consumer Price Index).
(3) Use
Of the fees collected under this subsection
for a fiscal year, the Secretary shall transfer—
(A) for each of fiscal years 2016 through
2019—
(i) 15 percent to the field offices that collected the fees and used to process protests, leases, and permits under this chapter, subject to appropriation; and
(ii) 85 percent to the BLM Permit Processing Improvement Fund established
under subsection (c)(2)(B) (referred to in
this subsection as the ‘‘Fund’’); and
(B) for each of fiscal years 2020 through
2026, all of the fees to the Fund.
(4) Additional costs
During each of fiscal years of 2016 through
2026, the Secretary shall not implement a rulemaking that would enable an increase in fees
to recover additional costs related to processing applications for permits to drill.
(Feb. 25, 1920, ch. 85, § 35, 41 Stat. 450; May 27,
1947, ch. 83, 61 Stat. 119; Aug. 3, 1950, ch. 527, 64
Stat. 402; Pub. L. 85–88, § 2, July 10, 1957, 71 Stat.
282; Pub. L. 85–508, §§ 6(k), 28(b), July 7, 1958, 72
Stat. 343, 351; Pub. L. 94–273, § 6(2), Apr. 21, 1976,
90 Stat. 377; Pub. L. 94–377, § 9, Aug. 4, 1976, 90
Stat. 1089; Pub. L. 94–422, title III, § 301, Sept. 28,
1976, 90 Stat. 1323; Pub. L. 94–579, title III,
§ 317(a), Oct. 21, 1976, 90 Stat. 2770; Pub. L. 97–451,
title I, §§ 104(a), 111(g), Jan. 12, 1983, 96 Stat. 2451,
2456; Pub. L. 100–203, title V, § 5109, Dec. 22, 1987,
101 Stat. 1330–261; Pub. L. 100–443, § 5(b), Sept. 22,
1988, 102 Stat. 1768; Pub. L. 103–66, title X, § 10201,
Aug. 10, 1993, 107 Stat. 407; Pub. L. 106–393, title
V, § 503, Oct. 30, 2000, 114 Stat. 1624; Pub. L.
109–58, title III, § 365(g), Aug. 8, 2005, 119 Stat. 725;
Pub. L. 113–67, div. A, title III, § 302, Dec. 26, 2013,
127 Stat. 1181; Pub. L. 113–291, div. B, title XXX,
§ 3021(b), (c)(1), Dec. 19, 2014, 128 Stat. 3760, 3761.)
REFERENCES IN TEXT
The Federal Oil and Gas Royalty Management Act of
1982, referred to in subsec. (a), is Pub. L. 97–451, Jan. 12,
1983, 96 Stat. 2447, which is classified generally to chapter 29 (§ 1701 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note
set out under section 1701 of this title and Tables.
The Geothermal Steam Act of 1970, referred to in subsec. (a), is Pub. L. 91–581, Dec. 24, 1970, 84 Stat. 1566,
which is classified principally to chapter 23 (§ 1001 et
seq.) of this title. For complete classification of this
Act to the Code, see Short Title note set out under section 1001 of this title and Tables.
The Reclamation Act, approved June 17, 1902, referred
to in subsec. (a), is act June 17, 1902, ch. 1093, 32 Stat.

§ 191

TITLE 30—MINERAL LANDS AND MINING

388, which is classified generally to chapter 12 (§ 371 et
seq.) of Title 43, Public Lands. For complete classification of this Act to the Code, see Short Title note set
out under section 371 of Title 43 and Tables.
CODIFICATION
‘‘Section 7433(b) of title 10’’ substituted in subsec. (a)
for ‘‘the Act of June 4, 1920 (41 Stat. 813), as amended
June 30, 1938 (52 Stat. 1252)’’, which was classified to
section 524 of former Title 34, Navy, on authority of act
Aug. 10, 1956, ch. 1041, § 49(b), 70A Stat. 640, the first section of which enacted Title 10, Armed Forces.
Provisions of subsec. (a) which authorized the payment of monies to the Territory of Alaska were omitted as superseded by the provisions authorizing the
payment of monies to the State of Alaska.
AMENDMENTS
2014—Subsec. (c)(3) to (5). Pub. L. 113–291, § 3021(c)(1),
added pars. (3) to (5) and struck out former par. (3)
which read as follows: ‘‘For each of fiscal years 2006
through 2015, the Fund shall be available to the Secretary of the Interior for expenditure, without further
appropriation and without fiscal year limitation, for
the coordination and processing of oil and gas use authorizations on onshore Federal land under the jurisdiction of the Pilot Project offices identified in section
15924(d) of title 42.’’
Subsec. (d). Pub. L. 113–291, § 3021(b), added subsec. (d)
2013—Subsec. (b). Pub. L. 113–67 amended subsec. (b)
generally. Prior to amendment, text read as follows:
‘‘In determining the amount of payments to the States
under this section, the amount of such payments shall
not be reduced by any administrative or other costs incurred by the United States.’’
2005—Subsec. (c). Pub. L. 109–58 added subsec. (c).
2000—Subsec. (b). Pub. L. 106–393 amended subsec. (b)
generally. Prior to amendment, subsec. (b) related to
deductions for administration from the amount to be
paid to States under this section or under other laws
requiring payment to a State of revenues derived from
the leasing of onshore lands owned by the United
States for the production of the same types of minerals
leasable under this chapter or of geothermal steam.
1993—Pub. L. 103–66 struck out last sentence, designated remaining provisions as subsec. (a) and in first
sentence inserted ‘‘and, subject to the provisions of
subsection (b),’’ before ‘‘50 per centum’’, and added subsec. (b). Prior to amendment, last sentence read as follows: ‘‘In determining the amount of payments to
States under this section, the amount of such payments shall not be reduced by any administrative or
other costs incurred by the United States.’’
1988—Pub. L. 100–443 struck out ‘‘notwithstanding the
provisions of section 20 thereof,’’ before ‘‘shall be paid’’.
1987—Pub. L. 100–203 inserted at end ‘‘In determining
the amount of payments to States under this section,
the amount of such payments shall not be reduced by
any administrative or other costs incurred by the
United States.’’
1983—Pub. L. 97–451, § 111(g), inserted reference to interest charges collected under the Federal Oil and Gas
Royalty Management Act of 1982.
Pub. L. 97–451, § 104(a), struck out ‘‘as soon as practicable after March 31 and September 30 of each year’’
after ‘‘Secretary of the Treasury’’ and ‘‘of those from
Alaska’’, and inserted at end provisions directing that
payments to States be made not later than the last
business day of the month in which such moneys are
warranted by the United States Treasury to the Secretary as having been received, that warrants be issued
by the Treasury not later than 10 days after receipt of
the money by the Treasury, that moneys placed in a
suspense account which are determined to be payable
to a State be made not later than the last business day
of the month in which a dispute is resolved, and that
amounts placed in a suspense account pending resolution bear interest until the dispute is resolved.
1976—Pub. L. 94–579 substituted provisions setting
forth determination of amount, time for payments, and

Page 54

manner of expenditure by the States of all moneys received from sales, etc., under provisions of this chapter
and the Geothermal Steam Act of 1970, and proviso relating to naval petroleum reserve moneys, for provisions setting forth determination of amount and time
for payment to the States of all moneys received from
sales, etc., under the provisions of this chapter, and
provisos relating to naval petroleum reserve moneys,
additional moneys from sales, etc., under this chapter
and the Geothermal Steam Act of 1970, and expenditure
of State oil shale funds.
Pub. L. 94–422 inserted proviso that all moneys paid
to any State from sales, bonuses, royalties, and rentals
of oil shale in public lands may be used by any State
for planning, construction, and maintenance of public
facilities as legislature of State may direct.
Pub. L. 94–377 substituted ‘‘40 per centum thereof
shall be paid into, reserved’’ for ‘‘521⁄2 per centum thereof shall be paid into, reserved’’, inserted ‘‘and the Geothermal Steam Act of 1970, notwithstanding the provisions of section 20 thereof’’ before ‘‘shall be paid into
the Treasury of the United States’’, ‘‘and the Geothermal Steam Act of 1970’’ before ‘‘from lands within
the naval petroleum reserves’’ and before ‘‘not otherwise disposed of by this section’’, and provisos relating
to the payment of an additional 121⁄2 per centum of all
money received from lands under provisions of this
chapter and the Geothermal Steam Act of 1970 to the
State within whose boundaries the lands are located, to
be used for construction of public facilities, and relating to the use of funds received by Colorado and Utah
under the specified leases.
Pub. L. 94–273 substituted ‘‘March’’ for ‘‘December’’
and ‘‘September’’ for ‘‘June’’.
1958—Pub. L. 85–508, §§ 6(k), 28(b), struck out provisions which related to disposition of proceeds or income derived by the United States from mineral school
sections in the Territory of Alaska and substituted
‘‘, and of those from Alaska 521⁄2 per centum thereof
shall be paid to the State of Alaska for disposition by
the legislators thereof’’ for ‘‘, and of those from Alaska
521⁄2 per centum thereof shall be paid to the Territory
of Alaska for disposition by the Legislature of the Territory of Alaska’’ before proviso.
1957—Pub. L. 85–88 inserted ‘‘, and of those from Alaska 521⁄2 per centum thereof shall be paid to the Territory of Alaska for disposition by the Legislature of the
Territory of Alaska’’ before proviso.
1950—Act Aug. 3, 1950, in providing that payments to
States be made bi-annually instead of annually, substituted ‘‘as soon as practicable after December 31 and
June 30 of each year’’ for ‘‘after the expiration of each
fiscal year’’.
1947—Act May 27, 1947, extended provisions by allocating 371⁄2% of the money received from sales, bonuses,
royalties, and rentals of public lands to the Territory
of Alaska, for the construction and maintenance of
public schools or other public educational institutions
and inserted provisions relating to disposition of proceeds or income derived by the United States from mineral school sections in the Territory of Alaska.
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by section 104(a) of Pub. L. 97–451 applicable with respect to payments received by the Secretary of the Treasury after Oct. 1, 1983, unless the Secretary by rule, prescribes an earlier effective date, see
section 104(c) of Pub. L. 97–451, set out as an Effective
Date note under section 1714 of this title.
SAVINGS PROVISION
Amendment by Pub. L. 94–579 not to be construed as
terminating any valid lease, permit, patent, etc., existing on Oct. 21, 1976, see section 701 of Pub. L. 94–579, set
out as a note under section 1701 of Title 43, Public
Lands.
FINDINGS
Pub. L. 106–393, title V, § 502, Oct. 30, 2000, 114 Stat.
1624, provided that: ‘‘The Congress finds the following:

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TITLE 30—MINERAL LANDS AND MINING

‘‘(1) Section 10201 of the Omnibus Budget Reconciliation Act of 1993 (Public Law 103–66; 107 Stat. 407)
amended section 35 of the Mineral Leasing Act (30
U.S.C. 191) to change the sharing of onshore mineral
revenues and revenues from geothermal steam from a
50:50 split between the Federal Government and the
States to a complicated formula that entailed deducting from the State share of leasing revenues ‘50
percent of the portion of the enacted appropriations
of the Department of the Interior and any other agency during the preceding fiscal year allocable to the
administration of all laws providing for the leasing of
any onshore lands or interest in land owned by the
United States for the production of the same types of
minerals leasable under this Act or of geothermal
steam, and to enforcement of such laws * * *’.
‘‘(2) There is no legislative record to suggest a
sound public policy rationale for deducting prior-year
administrative expenses from the sharing of currentyear receipts, indicating that this change was made
primarily for budget scoring reasons.
‘‘(3) The system put in place by this change in law
has proved difficult to administer and has given rise
to disputes between the Federal Government and the
States as to the nature of allocable expenses. Federal
accounting systems have proven to be poorly suited
to breaking down administrative costs in the manner
required by the law. Different Federal agencies implementing this law have used varying methodologies
to identify allocable costs, resulting in an inequitable
distribution of costs during fiscal years 1994 through
1996. In November 1997, the Inspector General of the
Department of the Interior found that ‘the congressionally approved method for cost sharing deductions
effective in fiscal year 1997 may not accurately compute the deductions’.
‘‘(4) Given the lack of a substantive rationale for
the 1993 change in law and the complexity and administrative burden involved, a return to the sharing formula prior to the enactment of the Omnibus Budget
Reconciliation Act of 1993 [Aug. 10, 1993] is justified.’’
FUNDS HELD BY COLORADO AND UTAH FROM INTERIOR
DEPARTMENT OIL SHALE TEST LEASES
Pub. L. 94–579, title III, § 317(b), Oct. 21, 1976, 90 Stat.
2771, provided that: ‘‘Funds now held pursuant to said
section 35 [this section] by the States of Colorado and
Utah separately from the Department of the Interior
oil shale test leases known as C–A; C–B; U–A and U–B
shall be used by such States and subdivisions as the
legislature of each State may direct giving priority to
those subdivisions socially or economically impacted
by the development of minerals leased under this Act
for (1) planning, (2) construction and maintenance of
public facilities, and (3) provision of public services.’’
ADMISSION OF ALASKA AS STATE
Effectiveness of amendment by Pub. L. 85–508 was dependent on admission of Alaska into the Union under
sections 6(k) and 8(b) of Pub. L. 85–508. Admission was
accomplished Jan. 3, 1959, on issuance of Proc. No. 3269,
Jan. 3, 1959, 24 F.R. 81, 73 Stat. c16, as required by sections 1 and 8(c) of Pub. L. 85–508. See notes preceding
section 21 of Title 48, Territories and Insular Possessions.
OUTER CONTINENTAL SHELF; REVENUES FROM LEASES
Disposition of revenues from leases on submerged
lands of outer Continental Shelf, see sections 1337 and
1338 of Title 43, Public Lands.

§ 191a. Late payment charges under Federal mineral leases
(a) Distribution of late payment charges
Any interest or other charges paid to the
United States by reason of the late payment of
any royalty, rent, bonus, or other amount due to

§ 192

the United States under any lease issued by the
United States for the extraction of oil, gas, coal,
or any other mineral, or for geothermal steam,
shall be deposited in the same account and distributed to the same recipients, in the same
manner, as such royalty, rent, bonus, or other
amount.
(b) Effective date
Subsection (a) shall apply with respect to any
interest, or other charge referred to in subsection (a), which is paid to the United States on
or after July 1, 1988.
(c) Prohibition against recoupment
Any interest, or other charge referred to in
subsection (a), which was paid to the United
States before July 1, 1988, and distributed to any
State or other recipient is hereby deemed to be
authorized and approved as of the date of payment or distribution, and no part of any such
payment or distribution shall be recouped from
the State or other recipient. This subsection
shall not apply to interest or other charges paid
in connection with any royalty, rent, bonus, or
other amount determined not to be owing to the
United States.
(Pub. L. 100–524, § 7, Oct. 24, 1988, 102 Stat. 2607.)
CODIFICATION
Section was enacted as part of the Congaree Swamp
National Monument Expansion and Wilderness Act, and
not as part of act Feb. 25, 1920, ch. 85, 41 Stat. 437,
known as the Mineral Leasing Act, which comprises
this chapter.

§ 191b. Collection of unpaid and underpaid royalties and late payment interest owed by
lessees
Beginning in fiscal year 1996 and thereafter,
the Secretary shall take appropriate action to
collect unpaid and underpaid royalties and late
payment interest owed by Federal and Indian
mineral lessees and other royalty payors on
amounts received in settlement or other resolution of disputes under, and for partial or complete termination of, sales agreements for minerals from Federal and Indian leases.
(Pub. L. 104–134, title I, § 101(c) [title I], Apr. 26,
1996, 110 Stat. 1321–156, 1321–167; renumbered title
I, Pub. L. 104–140, § 1(a), May 2, 1996, 110 Stat.
1327.)
CODIFICATION
Section was not enacted as part of act Feb. 25, 1920,
ch. 85, 41 Stat. 437, known as the Mineral Leasing Act,
which comprises this chapter.
SIMILAR PROVISIONS
Similar provisions were contained in the following
prior appropriation act:
Pub. L. 103–332, title I, Sept. 30, 1994, 108 Stat. 2508.

§ 192. Payment of royalties in oil or gas; sale of
such oil or gas
All royalty accruing to the United States
under any oil or gas lease or permit under this
chapter on demand of the Secretary of the Interior shall be paid in oil or gas.
Upon granting any oil or gas lease under this
chapter, and from time to time thereafter dur-

§ 192a

TITLE 30—MINERAL LANDS AND MINING

ing said lease, the Secretary of the Interior
shall, except whenever in his judgment it is desirable to retain the same for the use of the
United States, offer for sale for such period as
he may determine, upon notice and advertisement on sealed bids or at public auction, all royalty oil and gas accruing or reserved to the
United States under such lease. Such advertisement and sale shall reserve to the Secretary of
the Interior the right to reject all bids whenever
within his judgment the interest of the United
States demands; and in cases where no satisfactory bid is received or where the accepted bidder
fails to complete the purchase, or where the Secretary of the Interior shall determine that it is
unwise in the public interest to accept the offer
of the highest bidder, the Secretary of the Interior, within his discretion, may readvertise such
royalty for sale, or sell at private sale at not
less than the market price for such period, or
accept the value thereof from the lessee: Provided, That inasmuch as the public interest will
be served by the sale of royalty oil to refineries
not having their own source of supply for crude
oil, the Secretary of the Interior, when he determines that sufficient supplies of crude oil are
not available in the open market to such refineries, is authorized and directed to grant preference to such refineries in the sale of oil under
the provisions of this section, for processing or
use in such refineries and not for resale in kind,
and in so doing may sell to such refineries at
private sale at not less than the market price
any royalty oil accruing or reserved to the
United States under leases issued pursuant to
this chapter: Provided further, That in selling
such royalty oil the Secretary of the Interior
may at his discretion prorate such oil among
such refineries in the area in which the oil is
produced: Provided, however, That pending the
making of a permanent contract for the sale of
any royalty, oil or gas as herein provided, the
Secretary of the Interior may sell the current
product at private sale, at not less than the
market price: And provided further, That any
royalty, oil, or gas may be sold at not less than
the market price at private sale to any department or agency of the United States.
(Feb. 25, 1920, ch. 85, § 36, 41 Stat. 451; July 13,
1946, ch. 574, 60 Stat. 533.)
AMENDMENTS
1946—Act July 13, 1946, inserted first two provisos
which were enacted in order to assist small business enterprise by encouraging the operation of oil refineries
not having an adequate supply of crude oil.
OUTER CONTINENTAL SHELF; ROYALTIES FROM LEASES
Payment of royalties from mineral leases on submerged lands of outer Continental Shelf, see section
1337 of Title 43, Public Lands.

§ 192a. Cancellation or modification of contracts
Where, under any existing contract entered
into pursuant to the first proviso in the second
paragraph of section 192 of this title, any refinery is required to pay a premium price for the
purchase of Government royalty oil, such refinery may, at its option, by written notice to the
Secretary of the Interior, elect either—
(1) to terminate such contract, the termination to take place at the end of the calendar

Page 56

month following the month in which such notice is given; or
(2) to retain such contract with the modifications, that (a) the price, on and after
March 1, 1949, shall be as defined in the contract, without premium payments, (b) any
credit thereby resulting from past premium
payments shall be added to the refinery’s account, and (c) the Secretary may, at his option, elect to terminate the contract as so
modified, such termination to take place at
the end of the third calendar month following
the month in which written notice thereof is
given by the Secretary.
(Sept. 1, 1949, ch. 529, § 1, 63 Stat. 682.)
CODIFICATION
Section was not enacted as part of act Feb. 25, 1920,
ch. 85, 41 Stat. 437, known as the Mineral Leasing Act,
which comprises this chapter.

§ 192b. Application to contracts
The provisions of sections 192a to 192c of this
title shall apply to all existing contracts for the
purchase of Government royalty oil entered into
after July 13, 1946, and prior to September 1,
1949, irrespective of whether a determination of
preference status was made in connection with
the award of such contracts, but shall not apply
to any such contract which subsequent to its
award has been transferred, through the acquisition of stock interests or other transactions, to
the ownership or control of a refinery ineligible
for a preference under section 192 of this title,
and the regulations in force thereunder at the
time of such transfer.
(Sept. 1, 1949, ch. 529, § 2, 63 Stat. 682.)
CODIFICATION
Section was not enacted as part of act Feb. 25, 1920,
ch. 85, 41 Stat. 437, known as the Mineral Leasing Act,
which comprises this chapter.

§ 192c. Rules and regulations governing issuance
of certain leases; disposition of receipts
The Secretary of the Interior is authorized
under general rules and regulations to be prescribed by him to issue leases or permits for the
exploration, development, and utilization of the
mineral deposits, other than those subject to the
provisions of chapter 7 of this title, in those
lands added to the Shasta National Forest by
the Act of March 19, 1948 (Public Law 449, Eightieth Congress), which were acquired with funds
of the United States or lands received in exchange therefor: Provided, That any permit or
lease of such deposits in lands administered by
the Secretary of Agriculture shall be issued only
with his consent and subject to such conditions
as he may prescribe to insure the adequate utilization of the lands for the purposes set forth in
the Act of March 19, 1948: And provided further,
That all receipts derived from leases or permits
issued under the authority of sections 192a to
192c of this title shall be paid into the same
funds or accounts in the Treasury and shall be
distributed in the same manner as prescribed for
other receipts from the lands affected by the
lease or permit, the intention of this provision
being that sections 192a to 192c of this title shall

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TITLE 30—MINERAL LANDS AND MINING

not affect the distribution of receipts pursuant
to legislation applicable to such lands.
(Sept. 1, 1949, ch. 529, § 3, 63 Stat. 683.)
REFERENCES IN TEXT
Act of March 19, 1948 (Public Law 449, Eightieth Congress), referred to in text, is act Mar. 19, 1948, ch. 139,
62 Stat. 83. See Shasta National Forest codification
note set out under sections 486a to 486w of Title 16, Conservation.
CODIFICATION
Section was not enacted as part of act Feb. 25, 1920,
ch. 85, 41 Stat. 437, known as the Mineral Leasing Act,
which comprises this chapter.
TRANSFER OF FUNCTIONS
Functions of Secretary of the Interior under this section, with respect to use and disposal from lands under
jurisdiction of Secretary of Agriculture of those mineral materials which Secretary of Agriculture is authorized to dispose of from other lands under his jurisdiction under sections 601 to 604 and 611 to 615 of this
title, see Pub. L. 86–509, June 11, 1960, 74 Stat. 205, set
out as a Transfer of Functions from Secretary of the
Interior to Secretary of Agriculture note under section
2201 of Title 7, Agriculture.

§ 193. Disposition of deposits of coal, and so forth
The deposits of coal, phosphate, sodium, potassium, oil, oil shale, and gas, herein referred
to, in lands valuable for such minerals, including lands and deposits in Lander, Wyoming, coal
entries numbered 18 to 49, inclusive, shall be
subject to disposition only in the form and manner provided in this chapter, except as provided
in sections 1716 and 1719 of title 43, and except as
to valid claims existent on February 25, 1920,
and thereafter maintained in compliance with
the laws under which initiated, which claims
may be perfected under such laws, including discovery.
(Feb. 25, 1920, ch. 85, § 37, 41 Stat. 451; Feb. 7, 1927,
ch. 66, § 5, 44 Stat. 1058; Aug. 8, 1946, ch. 916, § 11,
60 Stat. 957; Pub. L. 95–554, § 4, Oct. 30, 1978, 92
Stat. 2074.)
CODIFICATION
Section was from act Feb. 25, 1920, in which words
now reading ‘‘in Lander, Wyoming, coal entries numbered 18 to 49, inclusive,’’ originally read ‘‘described in
the joint resolution entitled ‘Joint resolution authorizing the Secretary of the Interior to permit the continuation of coal mining operations on certain lands in Wyoming,’ approved August 12, 1912, (Thirty-seven Statutes at Large p. 1346).’’ The change was effected by interpolation, in lieu of the reference to the 1912 resolution, the actual description of lands contained in said
resolution.
AMENDMENTS
1978—Pub. L. 95–554 provided for disposition of minerals as provided in sections 1716 and 1719 of title 43.
1946—Act Aug. 8, 1946, excluded from section 5 of act
Feb. 7, 1927, the incorporation, by reference, of section
181 of this title, and reenacted inclusion of deposits of
potassium.
1927—Act Feb. 7, 1927, included deposits of potassium.

§ 193a. Preference right of United States to purchase coal for Army and Navy; price for coal;
civil actions; jurisdiction
The United States shall, at all times, have the
preference right to purchase so much of the

§ 195

product of any mine or mines opened upon the
lands sold under the provisions of this Act, as
may be necessary for the use of the Army and
Navy, and at such reasonable and remunerative
price as may be fixed by the President; but the
producers of any coal so purchased who may be
dissatisfied with the price thus fixed shall have
the right to prosecute suits against the United
States in the United States Court of Federal
Claims for the recovery of any additional sum or
sums they may claim as justly due upon such
purchase.
(May 28, 1908, ch. 211, § 2, 35 Stat. 424; Pub. L.
97–164, title I, § 160(a)(10), Apr. 2, 1982, 96 Stat. 48;
Pub. L. 102–572, title IX, § 902(b)(1), Oct. 29, 1992,
106 Stat. 4516.)
REFERENCES IN TEXT
This Act, referred to in text, is act May 28, 1908, ch.
211, 35 Stat. 424. Sections 1, 3, and 4 of this Act related
to consolidation of claims permitted and the limit of
acreage, prohibition against unlawful trusts, etc., and
contents of patents, respectively, and are not classified
to the Code.
CODIFICATION
Section was not enacted as part of act Feb. 25, 1920,
ch. 85, 41 Stat. 437, known as the Mineral Leasing Act,
which comprises this chapter.
Section was formerly classified to section 453 of Title
48, Territories and Insular Possessions.
AMENDMENTS
1992—Pub. L. 102–572 substituted ‘‘United States
Court of Federal Claims’’ for ‘‘United States Claims
Court’’.
1982—Pub. L. 97–164 substituted ‘‘United States
Claims Court’’ for ‘‘Court of Claims’’.
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102–572 effective Oct. 29, 1992,
see section 911 of Pub. L. 102–572, set out as a note
under section 171 of Title 28, Judiciary and Judicial
Procedure.
EFFECTIVE DATE OF 1982 AMENDMENT
Amendment by Pub. L. 97–164 effective Oct. 1, 1982,
see section 402 of Pub. L. 97–164, set out as a note under
section 171 of Title 28, Judiciary and Judicial Procedure.

§ 194. Repealed. Pub. L. 89–554, § 8(a), Sept. 6,
1966, 80 Stat. 644
Section, acts Feb. 25, 1920, ch. 85, § 38, 41 Stat. 451;
Mar. 3, 1925, ch. 462, 43 Stat. 1145, related to fees and
commissions of registers (successors to consolidated offices of registers and receivers), the predecessors of
managers.

§ 195. Enforcement
(a) Violations
It shall be unlawful for any person:
(1) to organize or participate in any scheme,
arrangement, plan, or agreement to circumvent or defeat the provisions of this chapter or its implementing regulations, or
(2) to seek to obtain or to obtain any money
or property by means of false statements of
material facts or by failing to state material
facts concerning:
(A) the value of any lease or portion thereof issued or to be issued under this chapter;
(B) the availability of any land for leasing
under this chapter;

§ 196

TITLE 30—MINERAL LANDS AND MINING

(C) the ability of any person to obtain
leases under this chapter; or
(D) the provisions of this chapter and its
implementing regulations.
(b) Penalty
Any person who knowingly violates the provisions of subsection (a) of this section shall be
punished by a fine of not more than $500,000, imprisonment for not more than five years, or
both.
(c) Civil actions
Whenever it shall appear that any person is
engaged, or is about to engage, in any act which
constitutes or will constitute a violation of subsection (a) of this section, the Attorney General
may institute a civil action in the district court
of the United States for the judicial district in
which the defendant resides or in which the violation occurred or in which the lease or land involved is located, for a temporary restraining
order, injunction, civil penalty of not more than
$100,000 for each violation, or other appropriate
remedy, including but not limited to, a prohibition from participation in exploration, leasing,
or development of any Federal mineral, or any
combination of the foregoing.
(d) Corporations
(1) Whenever a corporation or other entity is
subject to civil or criminal action under this
section, any officer, employee, or agent of such
corporation or entity who knowingly authorized, ordered, or carried out the proscribed activity shall be subject to the same action.
(2) Whenever any officer, employee, or agent of
a corporation or other entity is subject to civil
or criminal action under this section for activity conducted on behalf of the corporation or
other entity, the corporation or other entity
shall be subject to the same action, unless it is
shown that the officer, employee, or agent was
acting without the knowledge or consent of the
corporation or other entity.
(e) Remedies, fines, and imprisonment
The remedies, penalties, fines, and imprisonment prescribed in this section shall be concurrent and cumulative and the exercise of one
shall not preclude the exercise of the others.
Further, the remedies, penalties, fines, and imprisonment prescribed in this section shall be in
addition to any other remedies, penalties, fines,
and imprisonment afforded by any other law or
regulation.
(f) State civil actions
(1) A State may commence a civil action under
subsection (c) of this section against any person
conducting activity within the State in violation of this section. Civil actions brought by a
State shall only be brought in the United States
district court for the judicial district in which
the defendant resides or in which the violation
occurred or in which the lease or land involved
is located. The district court shall have jurisdiction, without regard to the amount in controversy or the citizenship of the parties, to
order appropriate remedies and penalties as described in subsection (c) of this section.
(2) A State shall notify the Attorney General
of the United States of any civil action filed by

Page 58

the State under this subsection within 30 days of
filing of the action. The Attorney General of the
United States shall notify a State of any civil
action arising from activity conducted within
that State filed by the Attorney General under
this subsection within 30 days of filing of the action.
(3) Any civil penalties recovered by a State
under this subsection shall be retained by the
State and may be expended in such manner and
for such purposes as the State deems appropriate. If a civil action is jointly brought by the
Attorney General and a State, by more than one
State or by the Attorney General and more than
one State, any civil penalties recovered as a result of the joint action shall be shared by the
parties bringing the action in the manner determined by the court rendering judgment in such
action.
(4) If a State has commenced a civil action
against a person conducting activity within the
State in violation of this section, the Attorney
General may join in such action but may not institute a separate action arising from the same
activity under this section. If the Attorney General has commenced a civil action against a person conducting activity within a State in violation of this section, that State may join in such
action but may not institute a separate action
arising from the same activity under this section.
(5) Nothing in this section shall deprive a
State of jurisdiction to enforce its own civil and
criminal laws against any person who may also
be subject to civil and criminal action under
this section.
(Feb. 25, 1920, ch. 85, § 41, as added Pub. L.
100–203, title V, § 5108, Dec. 22, 1987, 101 Stat.
1330–260.)
§ 196. Cooperative agreements; delegation of authority
Notwithstanding any other provision of law,
for fiscal year 1992 and each year thereafter, the
Secretary of the Interior or his designee is authorized to—
(a) enter into a cooperative agreement or
agreements with any State or Indian tribe to
share royalty management information, to
carry out inspection, auditing, investigation
or enforcement (not including the collection of
royalties, civil penalties, or other payments)
activities in cooperation with the Secretary,
except that the Secretary shall not enter into
such cooperative agreement with a State with
respect to any such activities on Indian lands
except with the permission of the Indian tribe
involved; and
(b) upon written request of any State, to
delegate to the State all or part of the authorities and responsibilities of the Secretary
under the authorizing leasing statutes, leases,
and regulations promulgated pursuant thereto
to conduct audits, investigations, and inspections, except that the Secretary shall not undertake such a delegation with respect to any
Indian lands except with permission of the Indian tribe involved,
with respect to any lease authorizing exploration for or development of coal, any other

Page 59

TITLE 30—MINERAL LANDS AND MINING

solid mineral, or geothermal steam on any Federal lands or Indian lands within the State or
with respect to any lease or portion of a lease
subject to section 1337(g) of title 43, on the same
terms and conditions as those authorized for oil
and gas leases under sections 1732, 1733, 1735, and
1736 of this title and the regulations duly promulgated with respect thereto: Provided further,
That section 1734 of this title shall apply to
leases authorizing exploration for or development of coal, any other solid mineral, or geothermal steam on any Federal lands, or to any
lease or portion of a lease subject to section
1337(g) of title 43: Provided further, That the Secretary shall compensate any State or Indian
tribe for those costs which are necessary to
carry out activities conducted pursuant to such
cooperative agreement or delegation.
(Pub. L. 102–154, title I, Nov. 13, 1991, 105 Stat.
1001.)
CODIFICATION
Section was not enacted as part of act Feb. 25, 1920,
ch. 85, 41 Stat. 437, known as the Mineral Leasing Act,
which comprises this chapter.

SUBCHAPTER II—COAL
§ 201. Leases and exploration
(a) Leases
(1) The Secretary of the Interior is authorized
to divide any lands subject to this chapter which
have been classified for coal leasing into leasing
tracts of such size as he finds appropriate and in
the public interest and which will permit the
mining of all coal which can be economically extracted in such tract and thereafter he shall, in
his discretion, upon the request of any qualified
applicant or on his own motion, from time to
time, offer such lands for leasing and shall
award leases thereon by competitive bidding:
Provided, That notwithstanding the competitive
bidding requirement of this section, the Secretary may, subject to such conditions which he
deems appropriate, negotiate the sale at fair
market value of coal the removal of which is
necessary and incidental to the exercise of a
right-of-way permit issued pursuant to title V of
the Federal Land Policy and Management Act of
1976 [43 U.S.C. 1761 et seq.]. No less than 50 per
centum of the total acreage offered for lease by
the Secretary in any one year shall be leased
under a system of deferred bonus payment. Upon
default or cancellation of any coal lease for
which bonus payments are due, any unpaid remainder of the bid shall be immediately payable
to the United States. A reasonable number of
leasing tracts shall be reserved and offered for
lease in accordance with this section to public
bodies, including Federal agencies, rural electric
cooperatives, or nonprofit corporations controlled by any of such entities: Provided, That
the coal so offered for lease shall be for use by
such entity or entities in implementing a definite plan to produce energy for their own use or
for sale to their members or customers (except
for short-term sales to others). No bid shall be
accepted which is less than the fair market
value, as determined by the Secretary, of the
coal subject to the lease. Prior to his determina-

§ 201

tion of the fair market value of the coal subject
to the lease, the Secretary shall give opportunity for and consideration to public comments
on the fair market value. Nothing in this section shall be construed to require the Secretary
to make public his judgment as to the fair market value of the coal to be leased, or the comments he receives thereon prior to the issuance
of the lease. He is authorized, in awarding leases
for coal lands improved and occupied or claimed
in good faith, prior to February 25, 1920, to consider and recognize equitable rights of such occupants or claimants.
(2)(A) The Secretary shall not issue a lease or
leases under the terms of this chapter to any
person, association, corporation, or any subsidiary, affiliate, or persons controlled by or under
common control with such person, association,
or corporation, where any such entity holds a
lease or leases issued by the United States to
coal deposits and has held such lease or leases
for a period of ten years when such entity is not,
except as provided for in section 207(b) of this
title, producing coal from the lease deposits in
commercial quantities. In computing the tenyear period referred to in the preceding sentence, periods of time prior to August 4, 1976,
shall not be counted.
(B) Any lease proposal which permits surface
coal mining within the boundaries of a National
Forest which the Secretary proposes to issue
under this chapter shall be submitted to the
Governor of each State within which the coal
deposits subject to such lease are located. No
such lease may be issued under this chapter before the expiration of the sixty-day period beginning on the date of such submission. If any Governor to whom a proposed lease was submitted
under this subparagraph objects to the issuance
of such lease, such lease shall not be issued before the expiration of the six-month period beginning on the date the Secretary is notified by
the Governor of such objection. During such sixmonth period, the Governor may submit to the
Secretary a statement of reasons why such lease
should not be issued and the Secretary shall, on
the basis of such statement, reconsider the issuance of such lease.
(3)(A)(i) No lease sale shall be held unless the
lands containing the coal deposits have been included in a comprehensive land-use plan and
such sale is compatible with such plan. The Secretary of the Interior shall prepare such landuse plans on lands under his responsibility
where such plans have not been previously prepared. The Secretary of the Interior shall inform
the Secretary of Agriculture of substantial development interest in coal leasing on lands
within the National Forest System. Upon receipt of such notification from the Secretary of
the Interior, the Secretary of Agriculture shall
prepare a comprehensive land-use plan for such
areas where such plans have not been previously
prepared. The plan of the Secretary of Agriculture shall take into consideration the proposed coal development in these lands: Provided,
That where the Secretary of the Interior finds
that because of non-Federal interest in the surface or because the coal resources are insufficient to justify the preparation costs of a Federal comprehensive land-use plan, the lease sale