30 Usc 181-194

30 USC Chapter 3A, Subchapter I.doc

Onshore Oil and Gas Leasing, and Drainage Protection (43 CFR Parts 3100, 3120, and 3150, and Subpart 3162)

30 USC 181-194

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TITLE 30--MINERAL LANDS AND MINING

CHAPTER 3A--LEASES AND PROSPECTING PERMITS

SUBCHAPTER I--GENERAL PROVISIONS


Sec. 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 vein-type 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, 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, Sec. 1, 41 Stat. 437; Feb. 7, 1927, ch. 66,

Sec. 5, 44 Stat. 1058; Aug. 8, 1946, ch. 916, Sec. 1, 60 Stat. 950; Pub.

L. 86-705, Sec. 7(a), Sept. 2, 1960, 74 Stat. 790; Pub. L. 97-78,

Sec. 1(1), (4), Nov. 16, 1981, 95 Stat. 1070.)

Sec. 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, Sec. 34, 41 Stat. 450; Pub. L. 86-705,

Sec. 7(a), Sept. 2, 1960, 74 Stat. 790; Pub. L. 97-78, Sec. 1(1), Nov.

16, 1981, 95 Stat. 1070.)


Sec. 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, Sec. 26, 41 Stat. 448.)


Sec. 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 permits 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 forty-six 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.

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\1\ So in original. Probably should be followed by a colon.

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(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 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.

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\2\ So in original. Probably should be ``unenforceable''.

\3\ So in original. Probably should be ``unenforceability''.

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(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 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, 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 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 alternatives

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, Sec. 27, 41 Stat. 448; Apr. 30, 1926, ch. 197,

44 Stat. 373; July 3, 1930, ch. 854, Sec. 1, 46 Stat. 1007; Mar. 4,

1931, ch. 506, 46 Stat. 1524; Aug. 8, 1946, ch. 916, Sec. 6, 60 Stat.

954; June 1, 1948, ch. 365, 62 Stat. 285; June 3, 1948, ch. 379, Sec. 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, Sec. 1, Sept. 21, 1959, 73 Stat. 571; Pub. L. 86-391,

Sec. 1(c), Mar. 18, 1960, 74 Stat. 8; Pub. L. 86-705, Sec. 3, Sept. 2,

1960, 74 Stat. 785; Pub. L. 88-526, Sec. 1, Aug. 31, 1964, 78 Stat. 710;

Pub. L. 88-548, Aug. 31, 1964, 78 Stat. 754; Pub. L. 94-377,

Secs. 11, 15, Aug. 4, 1976, 90 Stat. 1090, 1091; Pub. L. 97-78,

Sec. 1(2), (5), Nov. 16, 1981, 95 Stat. 1070; Pub. L. 106-191, Sec. 2,

Apr. 28, 2000, 114 Stat. 232; Pub. L. 106-463, Sec. 3, Nov. 7, 2000, 114

Stat. 2011; Pub. L. 109-58, title III, Sec. 352, Aug. 8, 2005, 119 Stat.

714.)


Sec. 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 regardless 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.)


Sec. 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

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-of-way.


(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 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 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 right-of-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 right-

of-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 rights-of-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 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 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 right-of-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 Sharing Plan of the International Energy

Agency, any oil transported by pipeline over right-of-way 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\

---------------------------------------------------------------------------

\1\ So in original. Probably should be ``National Environmental

Policy Act of 1969 (Public Law 91-190; 42 U.S.C. 4332(2)(C))''.

---------------------------------------------------------------------------


(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 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

rights-of-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 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 right-of-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, Sec. 28, 41 Stat. 449; Aug. 21, 1935, ch. 599,

Sec. 1, 49 Stat. 678; Aug. 12, 1953, ch. 408, 67 Stat. 557; Pub. L. 93-

153, title I, Sec. 101, Nov. 16, 1973, 87 Stat. 576; Pub. L. 95-91,

title III, Secs. 301(b), 306, title IV, Sec. 402(a), (b), title VII,

Secs. 703, 707, Aug. 4, 1977, 91 Stat. 578, 581, 583, 584, 606, 607;

Pub. L. 99-64, title I, Sec. 123(b), July 12, 1985, 99 Stat. 156; Pub.

L. 101-475, Sec. 1, Oct. 30, 1990, 104 Stat. 1102; Pub. L. 103-437,

Sec. 11(a)(1), Nov. 2, 1994, 108 Stat. 4589; Pub. L. 104-58, title II,

Sec. 201, Nov. 28, 1995, 109 Stat. 560; Pub. L. 104-66, title I,

Sec. 1121(k), Dec. 21, 1995, 109 Stat. 724.)


Sec. 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 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, Sec. 29, 41 Stat. 449.)



Sec. 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, Sec. 30, 41 Stat. 449; Pub. L. 95-554, Sec. 5,

Oct. 30, 1978, 92 Stat. 2074.)


Sec. 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 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, Sec. 30A, formerly Sec. 30a, as added Aug. 8,

1946, ch. 916, Sec. 7, 60 Stat. 955; amended July 29, 1954, ch. 644,

Sec. 1(6), 68 Stat. 585; Pub. L. 86-705, Sec. 6, Sept. 2, 1960, 74 Stat.

790; renumbered Sec. 30A and amended Pub. L. 100-203, title V,

Sec. 5103, Dec. 22, 1987, 101 Stat. 1330-258.)



Sec. 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, Sec. 30B, formerly Sec. 30b, as added Aug. 8,

1946, ch. 916, Sec. 8, 60 Stat. 956; renumbered Sec. 30B, Pub. L. 100-

203, title V, Sec. 5103, Dec. 22, 1987, 101 Stat. 1330-258.)


Sec. 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 contains 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 post-office 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 reinstatement

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) of this section 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) of this section 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--

(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 16\2/3\ 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;

---------------------------------------------------------------------------

\1\ So in original. Probably should be ``royalty''.

---------------------------------------------------------------------------

(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

16\2/3\ 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 reinstatement. 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

12\1/2\ percent; and

(5) compliance with the notice and reimbursement of costs

provisions of paragraph (4) of subsection (e) of this section but

addressed to the petition 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 diligently 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 subsection (c) of this section are

satisfied.


(Feb. 25, 1920, ch. 85, Sec. 31, 41 Stat. 450; Aug. 8, 1946, ch. 916,

Sec. 9, 60 Stat. 956; July 29, 1954, ch. 644, Sec. 1(7), 68 Stat. 585;

Pub. L. 87-822, Sec. 1, Oct. 15, 1962, 76 Stat. 943; Pub. L. 91-245,

Secs. 1, 2, May 12, 1970, 84 Stat. 206; Pub. L. 97-451, title IV,

Sec. 401, Jan. 12, 1983, 96 Stat. 2462; Pub. L. 100-203, title V,

Secs. 5102(d)(2), 5104, Dec. 22, 1987, 101 Stat. 1330-258, 1330-259;

Pub. L. 101-567, Sec. 1, Nov. 15, 1990, 104 Stat. 2802; Pub. L. 103-437,

Sec. 11(a)(1), Nov. 2, 1994, 108 Stat. 4589; Pub. L. 109-58, title III,

Sec. 371(b), Aug. 8, 2005, 119 Stat. 734.)

Sec. 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.


(Nov. 28, 1943, ch. 329, 57 Stat. 593; 1946 Reorg. Plan No. 3, Sec. 403,

eff. July 16, 1946, 11 F.R. 7876, 60 Stat. 1100.)



Sec. 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, Sec. 32, 41 Stat. 450.)



Sec. 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, Sec. 33, 41 Stat. 450.)



Sec. 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 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) of this

section, 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) Administrative costs


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.


(c) Rentals received on or after August 8, 2005


(1) Notwithstanding the first sentence of subsection (a) of this

section, 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).

(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) 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.


(Feb. 25, 1920, ch. 85, Sec. 35, 41 Stat. 450; May 27, 1947, ch. 83, 61

Stat. 119; Aug. 3, 1950, ch. 527, 64 Stat. 402; Pub. L. 85-88, Sec. 2,

July 10, 1957, 71 Stat. 282; Pub. L. 85-508, Secs. 6(k), 28(b), July

7, 1958, 72 Stat. 343, 351; Pub. L. 94-273, Sec. 6(2), Apr. 21, 1976, 90

Stat. 377; Pub. L. 94-377, Sec. 9, Aug. 4, 1976, 90 Stat. 1089; Pub. L.

94-422, title III, Sec. 301, Sept. 28, 1976, 90 Stat. 1323; Pub. L. 94-

579, title III, Sec. 317(a), Oct. 21, 1976, 90 Stat. 2770; Pub. L. 97-

451, title I, Secs. 104(a), 111(g), Jan. 12, 1983, 96 Stat. 2451,

2456; Pub. L. 100-203, title V, Sec. 5109, Dec. 22, 1987, 101 Stat.

1330-261; Pub. L. 100-443, Sec. 5(b), Sept. 22, 1988, 102 Stat. 1768;

Pub. L. 103-66, title X, Sec. 10201, Aug. 10, 1993, 107 Stat. 407; Pub.

L. 106-393, title V, Sec. 503, Oct. 30, 2000, 114 Stat. 1624; Pub. L.

109-58, title III, Sec. 365(g), Aug. 8, 2005, 119 Stat. 725.)



Sec. 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

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) of this section shall apply with respect to any

interest, or other charge referred to in subsection (a) of this section,

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) of this

section, 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, Sec. 7, Oct. 24, 1988, 102 Stat. 2607.)



Sec. 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, Sec. 101(c) [title I], Apr. 26, 1996, 110

Stat. 1321-156, 1321-167; renumbered title I, Pub. L. 104-140,

Sec. 1(a), May 2, 1996, 110 Stat. 1327.)



Sec. 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 during 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, Sec. 36, 41 Stat. 451; July 13, 1946, ch. 574,

60 Stat. 533.)



Sec. 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 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, Sec. 1, 63 Stat. 682.)



Sec. 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, Sec. 2, 63 Stat. 682.)




Sec. 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 not affect the distribution of receipts pursuant to

legislation applicable to such lands.


(Sept. 1, 1949, ch. 529, Sec. 3, 63 Stat. 683.)



Sec. 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, Sec. 37, 41 Stat. 451; Feb. 7, 1927, ch. 66,

Sec. 5, 44 Stat. 1058; Aug. 8, 1946, ch. 916, Sec. 11, 60 Stat. 957;

Pub. L. 95-554, Sec. 4, Oct. 30, 1978, 92 Stat. 2074.)



Sec. 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 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, Sec. 2, 35 Stat. 424; Pub. L. 97-164, title I,

Sec. 160(a)(10), Apr. 2, 1982, 96 Stat. 48; Pub. L. 102-572, title IX,

Sec. 902(b)(1), Oct. 29, 1992, 106 Stat. 4516.)



Sec. 194. Repealed. Pub. L. 89-554, Sec. 8(a), Sept. 6, 1966, 80

Stat. 644

Section, acts Feb. 25, 1920, ch. 85, Sec. 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.












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