Mineral Leasing Act -- Phosphates

Page 67

TITLE 30—MINERAL LANDS AND MINING

(Feb. 25, 1920, ch. 85, § 8A, as added Pub. L. 94–377,
§ 7, Aug. 4, 1976, 90 Stat. 1087.)
REFERENCES IN TEXT
Section 2, referred to in subsec. (a)(1), means section
2 of act Feb. 25, 1920, as amended, and is comprised of
subsecs. (a) to (d). Subsecs. (a) and (b) of section 2 are
classified to section 201 of this title, subsec. (c) of section 2 is classified to section 202 of this title, and subsec. (d) of section 2, as added by section 5(b) of Pub. L.
94–377, is classified to section 202a of this title.
The date of enactment of this Act, referred to in subsecs. (f) and (g), probably means the date of enactment
of Pub. L. 94–377, which was approved Aug. 4, 1976.

§ 208–2. Repealed. Pub. L. 104–66, title I, § 1091(e),
Dec. 21, 1995, 109 Stat. 722
Section, act Feb. 25, 1920, ch. 85, § 8B, as added Aug.
4, 1976, Pub. L. 94–377, § 8, 90 Stat. 1089, related to reports to Congress on leasing and production of coal
lands, contents, recommendations, and reports by Attorney General on competition in the coal industry and
on effectiveness of antitrust laws.

§ 208a. Repealed. Pub. L. 97–468, title
§ 615(a)(3), Jan. 14, 1983, 96 Stat. 2578

VI,

Section, act July 19, 1932, ch. 513, 47 Stat. 707, authorized general manager of Alaska Railroad to purchase
coal annually for railroad from two or more operating
companies in areas adjacent to railroad.
Section was formerly classified to section 445a of
Title 48, Territories and Insular Possessions.
EFFECTIVE DATE OF REPEAL
Repeal by Pub. L. 97–468 became effective on date of
transfer of Alaska Railroad to the State [Jan. 5, 1985],
pursuant to section 1203 of Title 45, Railroads, see Pub.
L. 97–468, title VI, § 615(a), Jan. 14, 1983, 96 Stat. 2577.

§ 209. Suspension, waiver, or reduction of rents
or royalties to promote development or operation; extension of lease on suspension of operations and production
The Secretary of the Interior, for the purpose
of encouraging the greatest ultimate recovery of
coal, oil, gas, oil shale 1 gilsonite (including all
vein-type solid hydrocarbons),,2 phosphate, sodium, potassium and sulfur, and in the interest
of conservation of natural resources, is authorized to waive, suspend, or reduce the rental, or
minimum royalty, or reduce the royalty on an
entire leasehold, or on any tract or portion
thereof segregated for royalty purposes, whenever in his judgment it is necessary to do so in
order to promote development, or whenever in
his judgment the leases cannot be successfully
operated under the terms provided therein.3 Provided, however, That in order to promote development and the maximum production of tar
sand, at the request of the lessee, the Secretary
shall review, prior to commencement of commercial operations, the royalty rates established in each combined hydrocarbon lease issued in special tar sand areas. For purposes of
this section, the term ‘‘tar sand’’ means any
consolidated or unconsolidated rock (other than
coal, oil shale, or gilsonite) that either: (1) contains a hydrocarbonaceous material with a gasfree viscosity, at original reservoir temperature,
1 So

in original. Probably should be followed by a comma.
in original.
3 So in original. The period probably should be a colon.
2 So

§ 211

greater than 10,000 centipoise, or (2) contains a
hydrocarbonaceous material and is produced by
mining or quarrying. In the event the Secretary
of the Interior, in the interest of conservation,
shall direct or shall assent to the suspension of
operations and production under any lease
granted under the terms of this chapter, any
payment of acreage rental or of minimum royalty prescribed by such lease likewise shall be
suspended during such period of suspension of
operations and production; and the term of such
lease shall be extended by adding any such suspension period thereto. The provisions of this
section shall apply to all oil and gas leases issued under this chapter, including those within
an approved or prescribed plan for unit or cooperative development and operation. Nothing in
this section shall be construed as granting to
the Secretary the authority to waive, suspend,
or reduce advance royalties.
(Feb. 25, 1920, ch. 85, § 39, as added Feb. 9, 1933,
ch. 45, 47 Stat. 798; amended Aug. 8, 1946, ch. 916,
§ 10, 60 Stat. 957; June 3, 1948, ch. 379, § 7, 62 Stat.
291; Pub. L. 94–377, § 14, Aug. 4, 1976, 90 Stat. 1091;
Pub. L. 97–78, § 1(3), (7), Nov. 16, 1981, 95 Stat.
1070, 1071.)
AMENDMENTS
1981—Pub. L. 97–78 inserted reference to gilsonite (including all vein-type solid hydrocarbons) and inserted
proviso that, in order to promote development and the
maximum production of tar sand, at the request of the
lessee, the Secretary review, prior to commencement of
commercial operations, the royalty rates established in
each combined hydrocarbon lease issued in special tar
sand areas, and that, for purposes of this section, ‘‘tar
sand’’ means any consolidated or unconsolidated rock
(other than coal, oil shale, or gilsonite) that either contains a hydrocarbonaceous material with a gas-free viscosity, at original reservoir temperature, greater than
10,000 centipoise, or contains a hydrocarbonaceous material and is produced by mining or quarrying.
1976—Pub. L. 94–377 inserted sentence at end that
nothing in this section shall be construed as granting
to the Secretary authority to waive, suspend, or reduce
advance royalties.
1948—Act June 3, 1948, extended applicability of section to oil shale, phosphate, sodium, potassium, and
sulphur.
1946—Act Aug. 8, 1946, principally inserted first and
third sentences relating to waiver, suspension or reduction of royalties or rentals, and applicability of section
to cooperative or unit plans, respectively.
SAVINGS PROVISION
See note set out under section 181 of this title.

SUBCHAPTER III—PHOSPHATES
§ 211. Phosphate deposits
(a) Authorization to lease land; terms and conditions; acreage
The Secretary of the Interior is authorized to
lease to any applicant qualified under this chapter, through advertisement, competitive bidding, or such other methods as he may by general regulations adopt, any phosphate deposits
of the United States, and lands containing such
deposits, including associated and related minerals, when in his judgment the public interest
will be best served thereby. The lands shall be
leased under such terms and conditions as are
herein specified, in units reasonably compact in

§ 212

TITLE 30—MINERAL LANDS AND MINING

form of not to exceed two thousand five hundred
and sixty acres.
(b) Prospecting permits; issuance; term; acreage;
entitlement to lease
Where prospecting or exploratory work is necessary to determine the existence or workability
of phosphate deposits in any unclaimed, undeveloped area, the Secretary of the Interior is authorized to issue, to any applicant qualified
under this chapter, a prospecting permit which
shall give the exclusive right to prospect for
phosphate deposits, including associated minerals, for a period of two years, for not more
than two thousand five hundred and sixty acres;
and if prior to the expiration of the permit the
permittee shows to the Secretary that valuable
deposits of phosphate have been discovered within the area covered by his permit, the permittee
shall be entitled to a lease for any or all of the
land embraced in the prospecting permit.
(c) Extension of term of permit
Any phosphate permit issued under this section may be extended by the Secretary for such
an additional period, not in excess of four years,
as he deems advisable, if he finds that the permittee has been unable, with reasonable diligence, to determine the existence or workability
of phosphate deposits in the area covered by the
permit and desires to prosecute further prospecting or exploration, or for other reasons warranting such an extension in the opinion of the
Secretary.
(Feb. 25, 1920, ch. 85, § 9, 41 Stat. 440; June 3, 1948,
ch. 379, § 2, 62 Stat. 290; Pub. L. 86–391, § 1(a), Mar.
18, 1960, 74 Stat. 7.)
AMENDMENTS
1960—Pub. L. 86–391 designated existing provisions as
subsec. (a) and added subsecs. (b) and (c).
1948—Act June 3, 1948, included provision limiting
amount of land in lease.

§ 212. Surveys; royalties; time payable; annual
rentals; term of leases; readjustment on renewals; minimum production; suspension of
operation
Each lease shall describe the leased lands by
the legal subdivisions of the public-land surveys.
All leases shall be conditioned upon the payment to the United States of such royalties as
may be specified in the lease, which shall be
fixed by the Secretary of the Interior in advance
of offering the same, at not less than 5 per centum of the gross value of the output of phosphates or phosphate rock and associated or related minerals. Royalties shall be due and payable as specified in the lease either monthly or
quarterly on the last day of the month next following the month or quarter in which the minerals are sold or removed from the leased land.
Each lease shall provide for the payment of a
rental payable at the date of the lease and annually thereafter which shall be not less than 25
cents per acre for the first year, 50 cents per
acre for the second and third years, respectively,
and $1 per acre for each year thereafter, during
the continuance of the lease. The rental paid for
any year shall be credited against the royalties
for that year. Leases shall be for a term of twen-

Page 68

ty years and so long thereafter as the lessee
complies with the terms and conditions of the
lease and upon the further condition that at the
end of each twenty-year period succeeding the
date of the lease such reasonable readjustment
of the terms and conditions thereof may be
made therein as may be prescribed by the Secretary of the Interior unless otherwise provided
by law at the expiration of such periods. Leases
shall be conditioned upon a minimum annual
production or the payment of a minimum royalty in lieu thereof, except when production is
interrupted by strikes, the elements, or casualties not attributable to the lessee. The Secretary of the Interior may permit suspension of
operations under any such leases when marketing conditions are such that the leases cannot be
operated except at a loss.
(Feb. 25, 1920, ch. 85, § 10, 41 Stat. 440; June 3,
1948, ch. 379, § 3, 62 Stat. 290.)
AMENDMENTS
1948—Act June 3, 1948, amended section generally,
omitting provisions relating to amount of lands in
lease, and inserting provisions regarding royalties.

§ 213. Royalties for use of deposits of silica, limestone, or other rock embraced in lease
Any lease to develop and extract phosphates,
phosphate rock, and associated or related minerals under the provisions of sections 211 to 214
of this title shall provide that the lessee may
use so much of any deposit of silica or limestone
or other rock situated on any public lands embraced in the lease as may be utilized in the
processing or refining of the phosphates, phosphate rock, and associated or related minerals
mined from the leased lands or from other lands
upon payments of such royalty as may be determined by the Secretary of the Interior, which
royalty may be stated in the lease or, as to the
leases already issued, may be provided for in an
attachment to the lease to be duly executed by
the lessor and the lessee.
(Feb. 25, 1920, ch. 85, § 11, 41 Stat. 440; June 3,
1948, ch. 379, § 4, 62 Stat. 291.)
AMENDMENTS
1948—Act June 3, 1948, amended section generally,
omitting provision relating to royalties and annual
rents, and inserting provisions relating to use of deposits of silica, limestone or other rock embraced in the
lease upon the payment of a suitable royalty.

§ 214. Use of surface of other public lands; acreage; forest lands exception
The holder of any lease or permit issued under
the provisions of sections 211 to 214 of this title
shall have the right to use so much of the surface of unappropriated and unentered public
lands not a part of his lease or permit, not exceeding eighty acres in area, as may be determined by the Secretary to be necessary or convenient for the extraction, treatment, and removal of the mineral deposits, but this provision
shall not be applicable to national forest lands.
(Feb. 25, 1920, ch. 85, § 12, 41 Stat. 441; June 3,
1948, ch. 379, § 5, 62 Stat. 291; Pub. L. 86–391, § 1(b),
Mar. 18, 1960, 74 Stat. 8.)

Page 69

TITLE 30—MINERAL LANDS AND MINING
AMENDMENTS

1960—Pub. L. 86–391 substituted ‘‘lease or permit’’ for
‘‘lease’’ in two places.
1948—Act June 3, 1948, increased lands to be used from
40 to 80 acres, excepted national forest lands from its
provisions, and substituted ‘‘The holder of any lease issued under the provisions of sections 211 to 214 of this
title’’, ‘‘public lands not a part of his lease’’, and ‘‘or
convenient for the extraction’’ for ‘‘Any qualified applicant to whom the Secretary of the Interior may
grant a lease to develop and extract phosphates, or
phosphate rock, under the provisions of this chapter’’,
‘‘lands’’, and ‘‘for the proper prospecting for or development, extraction’’, respectively.

SUBCHAPTER IV—OIL AND GAS
§§ 221 to 222i. Omitted
CODIFICATION
Sections expired by their own terms. They provided
as follows:
Section 221, acts Feb. 25, 1920, ch. 85, § 13, 41 Stat. 441;
Aug. 21, 1935, ch. 599, § 1, 49 Stat. 674, provided for prospecting permits, their terms and conditions, extension,
location of lands, marking land, notice of application
for permits, permits in Alaska, exchanging permits for
leases, and limited extensions to Dec. 31, 1938.
Section 222, act Jan. 11, 1922, ch. 28, 42 Stat. 356, authorized Secretary of the Interior to extend time for
drilling not to exceed three years.
Section 222a, act Apr. 5, 1926, ch. 107, § 1, 44 Stat. 236,
authorized a further extension of two years for drilling.
Section 222b, act Apr. 5, 1926, ch. 107, § 2, 44 Stat. 236,
provided for extension of expired permits for a period of
two years from Apr. 5, 1926.
Section 222c, act Mar. 9, 1928, ch. 168, § 1, 45 Stat. 252,
authorized a two year extension for permits.
Section 222d, act Mar. 9, 1928, ch. 168, § 2, 45 Stat. 252,
authorized a two year extension of permits already expired.
Section 222e, act Jan. 23, 1930, ch. 25, § 1, 46 Stat. 58,
provided that permits issued or extended for three
years might be further for three years.
Section 222f, act Jan. 23, 1930, ch. 25, § 2, 46 Stat. 59,
provided for an extension of permits already expired for
a period of three years from Jan. 23, 1930.
Section 222g, act June 30, 1932, ch. 319, § 1, 47 Stat. 445,
provided for a further extension of three years.
Section 222h, act June 30, 1932, ch. 319, § 2, 47 Stat. 446,
authorized an extension, for permits already expired, of
three years from June 30, 1932.
Section 222i, acts Aug. 26, 1937, ch. 828, 50 Stat. 842;
Aug. 11, 1939, ch. 716, 53 Stat. 1418, provided for final extension of prospecting permits, outstanding on Dec. 31,
1937, to Dec. 31, 1939.
COMPROMISE OF CLAIMS FOR ACCRUED RENTAL
Act July 29, 1942, ch. 534, § 2, 56 Stat. 726, authorized
Secretary of the Interior to make a compromise settlement of any claim for accrued rental under a lease issued pursuant to the provisions of section 221 of this
title, in any case in which he determined that it would
be financially beneficial to the United States to make
such a compromise settlement or in any case in which
he determined that collection of the full amount of
such accrued rental from the lessee was inadvisable because of the lessee’s financial resources being limited.

§ 223. Leases; amount and survey of land; term of
lease; royalties and annual rental
Upon establishing to the satisfaction of the
Secretary of the Interior that valuable deposits
of oil or gas have been discovered within the
limits of the land embraced in any permit, the
permittee shall be entitled to a lease for onefourth of the land embraced in the prospecting

§ 223a

permit: Provided, That the permittee shall be
granted a lease for as much as one hundred and
sixty acres of said lands, if there be that number
of acres within the permit. The area to be selected by the permittee, shall be in reasonably
compact form and, if surveyed, to be described
by the legal subdivisions of the public-land surveys; if unsurveyed, to be surveyed by the Government at the expense of the applicant for
lease in accordance with rules and regulations
to be prescribed by the Secretary of the Interior,
and the lands leased shall be conformed to and
taken in accordance with the legal subdivisions
of such surveys; deposits made to cover expense
of surveys shall be deemed appropriated for that
purpose, and any excess deposits may be repaid
to the person or persons making such deposit or
their legal representatives. Such leases shall be
for a term of twenty years upon a royalty of 5
per centum in amount or value of the production and the annual payment in advance of a
rental of $1 per acre, the rental paid for any one
year to be credited against the royalties as they
accrue for that year, and shall continue in force
otherwise as prescribed in section 226 of this
title for leases issued prior to August 21, 1935.
The permittee shall also be entitled to a preference right to a lease for the remainder of the
land in his prospecting permit at a royalty of
not less than 121⁄2 per centum in amount or value
of the production nor more than the royalty
rate prescribed by regulation in force on January 1, 1935, for secondary leases issued under this
section, and under such other conditions as are
fixed for oil or gas leases issued under section
226 of this title the royalty to be determined by
competitive bidding or fixed by such other
method as the Secretary may by regulations
prescribe: Provided further, That the Secretary
shall have the right to reject any or all bids.
(Feb. 25, 1920, ch. 85, § 14, 41 Stat. 442; Aug. 21,
1935, ch. 599, § 1, 49 Stat. 676.)
AMENDMENTS
1935—Act Aug. 21, 1935, inserted ‘‘reasonably’’ before
‘‘compact form’’ and substituted ‘‘and shall continue in
force otherwise as prescribed in section 226 of this title
for leases issued prior to August 21, 1935’’ and ‘‘oil or
gas leases issued under section 226 of this title’’ for
‘‘with the right of renewal as prescribed in section 226
of this title’’ and ‘‘oil or gas leases in this chapter’’, respectively.
LIMITATION OF ROYALTY ON DISCOVERIES DURING WAR
PERIOD
Act Dec. 24, 1942, ch. 812, 56 Stat. 1080, limiting royalty obligation of oil or gas lessee who drills well resulting in discovery of new deposit on public domain
during the national emergency was repealed by Joint
Res. July 25, 1947, ch. 327, § 1, 61 Stat. 449.
OUTER CONTINENTAL SHELF; LEASES
Grant by Secretary of the Interior of oil, gas, and
other mineral leases on submerged lands of outer Continental Shelf, see section 1331 et seq. of Title 43, Public
Lands.

§ 223a. Repealed. Aug. 8, 1946, ch. 916, § 14, 60
Stat. 958
Section, act Aug. 21, 1935, ch. 599, § 2, 49 Stat. 679, related to new oil and gas leases in lieu of old.
SAVINGS PROVISION
See note set out under section 181 of this title.