NPPRA (Pub. L. 94-258)

PUBLIC LAW 94-258—APR. 5, 1976

90 STAT. 303

Public Law 94-258
94th Congress
An Act
To authorize the Secretary of the Interior to establish on certain public lands
of the United States national petroleum reserves the development of which
needs to be regulated in a manner eonsii-tent with the total energy needs of
the Nation, and for other purposes.

Be it enacted hy the Senate and House of Representatives of the
United States of America in Congress assenibled, That this Act may
be cited as the "Naval Petroleum Reserves Production Act of 1976".

Apr. 5. 1976
[H.R. 49]

Naval Petroleum
Reserves
Production Act of

1976.

T I T L E I—NATIONAL PETROLEUM RESERVE IN ALASKA 42 use 6501
DEFINITION

note.
42 use 6501.

SEC. 101. As used in this title, the term "petroleum" includes crude
oil, gases (including natural gas), natural gasoline, and other related
hydrocarbons, oil shale, and the products of any of such resources.
D E S I G N A n O X o r T H E NATIONAL PETROLEUM RESERVE I N ALASKA

SEC. 102. The area knoAvn as Naval Petroleum Reserve Numbered 4,
Alaska, established by Executive order of the President, dated February 27, 1923, except for tract Numbered 1 as described in Public Land
Order 2344, dated April 24, 1961, shall be transferred to and administered by the Secretary of the Interior in accordance with the provisions of this Act. Effective on the date of transfer all lands within
such area shall be redesignated as the "National Petroleum Reserve in
Alaska" (hereinafter in this title referred to as the "reserve"). Subject to valid existing rights, all lands within the exterior boundaries
of such leserve are hereby reserved and withdrawn from all forms of
entry and disposition under the public land laws, including the mining and mineral leasing laws, and all other Acts; but the Secretary is
authorized to (1) make dispositions of mineral materials pursuant to
the Act of July 31, 1947 (61 Stat. 681), as amended (30 U.S.C. 601),
for appropriate use by Alaska Natives, (2) make such dispositions of
mineral materials and grant such rights-of-way, licenses, and permits
as may be necessary to carry out his responsibilities under this Act,
and (3) convey the surface of lands properly selected on or before
December 18, 1975, by Native village corporations pursuant to the
Alaska Native Claims Settlement Act. All other provisions of law
heretofore enacted and actions heretofore taken reserving such lands
as a Naval Petroleum Reserve shall remain in full force and effect to
the extent not inconsistent with this Act.

42 use 6502.
43 eFR app.

43 use 1601
note.

TRANSFER OF JURISDICrnON

SEC. 103. (a) Jurisdiction over the reserve shall be transferred by 42 use 6503.
the Secretary of the Navy to the Secretary of the Interior on June 1,
1977.
(b) With respect to any activities related to the protection of
environmental, fish and wildlife, and historical or scenic values, the
Secretary of the Interior shall assume all responsibilities as of the date

89-194 O—78—pt. 1

23

90 STAT. 304

PUBLIC LAW 94-258—APR. 5, 1976

Rules and
regulations.

of the enactment of this title. As soon as possible, but not later than
fj^Q effective date of transfer, the Secretary of the Interior may promulgate such rules and regulations as he deems necessary and appropriate for the protection of such values within the reserve.
(c) The Secretary of the Interior shall, u^on the effective date of
the transfer of the reser-ve, assume the responsibilities and functions of
' .
the Secretary of the Navy under any contracts which may be in effect
with respect to activities within the reserve.
(d) On the date of transfer of jurisdiction of the reserve, all equipment, facilities, and other property of the Department of the Navy
used in connection with the operation of the reserve, including all
records, maps, exhibits, and other informational data held by the
Secretary of the Navy in connection with the reserve, shall be transferred without reimbursement from the Secretary of the Navy to the
Secretary of the Interior who shall thereafter he. authorized to use
,
themtocarry out the provisions of this title.
'
'
(e) On the date of transfer of jurisdiction of the reserve, the Secretary of the Navy shall transfer to the Secretary of the Interior all
unexpended funds previously appropriated for use in connection with
the reserve and all civilian personnel ceilings assigned by the Secretary
of the Navy to the management and operation of the reserve as of
January 1,1976.
ADMINISTRATION OF T H E RESERVE

Petroleum
production,
prohibition,

42 use 6504.
Explorations.

Information,
submittal to
congressional
committees.

^
;::;JC

Contracts.

, , 'r

SEC. 104. (a) Except as provided in subsection (e) of this section,
production of petroleum from the reserve is prohibited and no development leading to prodiiction of petroleum from the reserve shall be
undertaken until authorized by an Act of Congress.
(b) Any exploration within the Utukok River, the Teshekp\ik
Lake areas, and other areas designated by the Secretarv of the Interior
containing any significant subsistence, recreational, fish and wildlife,
or historical or scenic value, shall be coinlucted in a manner which will
assure the maximum protection of such surface values to the extent
consistent with the requirements of this Act for the exploration of the
reserve.
(c) The Secretary of the Navy shall continue the ongoing petroleum
exploration program within tlie reserve until the date of the transfer
of jurisdiction specified in section lOBYal. Prior to the date of such
transfer of jurisdiction the Secretary of the Navy shall—
(1) cooperate fully with the Secretary of the Interior providing
him access to such facilities and such information as he may
request to facilitate the transfer of jurisdiction;
(2) provide to the Committees on Interior and Insular Affairs
of the Senate and the House of Representatives copies of any
reports, plans, or contracts pertaining to the reserve that are
required to be submitted to the Committees on Armed Services of
the Senate and the House of Representatives; and
(3) cooperate and consult with the Secretary of the Interior
before executing any new contract or amendment to any existing
contract pertaining to the reserve and alloTV him a reasonable
opportunity to comment on such contract or amendment, as the
case may be.
(d) The Secretary of the Interior shall commence further petroleum
exploration of the reserve as of the date of transfer of jurisdiction
specified in section 103(a). In conducting this exploration effort, the
Secretary of the Interior—
(1) is authorized to enter into contracts for the exploration of
the reserve, except that no such contract may be entered into until

PUBLIC LAW 94-258—APR. 5, 1976
at least thirty days after the Secretary of the Interior has provided the Attorney General with a copy of the proposed contract
and such other information as may be appropriate to determine
legal sufficiency and possible violations under, or inconsistencies
with, the antitrust laws. If, within such thirty day period, the
Attorney General advises the Secretary of the Interior that any
such contract would unduly restrict competition or be inconsistent
with the antitrust laws, then the Secretary of the Interior may
not execute that contract;
(2) shall submit to the Committees on Interior and Insular
Affairs of the Senate and the House of Representatives any new
plans or substantial amendments to ongoing plans for the exploration of the reserve. All such plans or amendments submitted to
such committees pursuant to this section shall contain a report by
the Attorney General of the United States with respect to the
anticipated effects of such plans or amendments on competition.
Such plans or amendments shall not be implemented until sixty
days after they have been submitted to such committees; and
(3) shall report annually to the Committees on Interior and
Insular Affairs of the Senate and the House of Representatives on
the progress of, and future plans for, exploration of the reserve.
(e) Until the reserve is transferred to the jurisdiction of the Secretary of the Interior, the Secretary of the Navy is authorized to develop
and continue operation of the South Barrow gas field, or such other
fields as may be necessary, to supply gas at reasonable and equitable
rates to the native village of Barrow, and other communities and
installatiors at or near Point Barrow, Alaska, and to installations of
the Department of Defense and other agencies of the United States
located at or near Point Barrow, Alaska. After such transfer, the Secretary of the Interior shall take such actions as may be necessary to
continue such service to such village, communities, installations, and
agencies at reasonable and equitable rates.

90 STAT. 305

Plans, submittal
to congressional
committees.
Report by
Attorney
General.

Report to
congressional
committees.

STUDY OF T H E RESERVE

SEC. 105. (a) Section 164 of the Energy Policv and Conservation
Act (89 Stat. 871, 889), is hereby amended by deleting in the first
sentence "to the Congress" and bv inserting in lieu thereof "to the
Committees on Interior and Insular Affairs of the Senate and House
of Representatives".
(b)(1) The President shall direct such Executive departments and/
or agencies as he may deem appropriate to conduct a study, in consultation with representatives of the State of Alaska, to determine
the best overall procedures to be used in the development, production,
transportation, and distribution of petroleum resources in the reserve.
Such study shall include, but shall not be limited to, a consideration of—
(A) the alternative procedures for accomplishing the development, production, transportation, and distribution of the petroleum resources from the reserve, and
(B) the economic and environmental consequences of such
alternative procedures.
(2) The President shall make semiannual progress reports on the
implementation of this subsection to the Committees on Interior and
Insular Affairs of the Senate and the House of Representatives beginning not later than six months after the date of the enactment of this
Act and shall, not later than one year after the transfer of jurisdiction of the reserve, and annually thereafter, report any findings or

42 USC 6244.

42 u s e 6505.

Report to
congressional
committees.

90 STAT. 306

42 use 6505.

Report to
con§
committees.

PUBLIC LAW 94-258—APR. 5, 1976
conclusions developed as a result of such study together with appropriate supporting data and such recommendations as he deems desirable. The study shall be completed and submitted to such committees,
together with recommended procedures and any proposed legislation
necessary to implement such procedures not later than January 1,
1980.
(c) (1) The Secretary of the Interior shall establish a task force
to conduct a study to determine the values of, and best uses for, the
lands contained in the reserve, taking into consideration (A) the
natives Avho live or depend upon such lands, (B) the scenic, historical, recreational, fish and wildlife, and wilderness values, (C) mineral potential, and (D) other values of such lands.
(2) Such task force shall be composed of representatives from the
government of Alaska, the Arctic slope native community, and such
offices and bureaus of the Department of the Interior as the Secretary of the Interior deems appropriate, including, but not limited to,
the Bureau of Land Management, the United States Fish and Wildlife Service, the United States Geological Survey, and the Bureau
of Mines.
(3) The Secretary of the Interior shall submit a report, together
with the concurring or dissenting views, if any, of any non-Federal
representatives of the task force, of the results of such study to the
Committees on Interior and Insular Affairs of the Senate and the
House of Representatives within three years after the date of enactment of this title and shall include in such report his recommendations with respect to the value, best use, and appropriate designation
of the lands referred to in paragraph (1).
ANTITRUST PROVISIONS

42 u s e 6506.
Post, p. 309.

SEC. 106. Unless otherwise provided by Act of Congress, whenever
development leading to production of petroleum is authorized, the
provisions of subsections (g), (h), and (i) of section 7430 of title 10,
United States Code, shall be deemed applicable to the Secretary of the
Interior with respect to rules and regulations, plans of development
and amendments thereto, and contracts and operatir.g agreements. All
plans and proposals submitted to the Congress under this title or
pursuant to legislation authorizing development leading to production shall contain a report by the Attorney General of the United
States on the anticipated effects upon competition of such plans and
proposals.
AUTHORIZATION FOR APPROPRIATIONS

42 u s e 6507.

SEC. 107. (a) There are authorized to be appropriated to the Department of the Interior such sums as may be necessary to carry out the
provisions of this title.
Community
(b) If the Secretary of the Interior determines that there is an
municipal
immediate and substantial increase in the need for municipal services
services and
and facilities in communities located on or near the reserve as a direct
facilities, Federal result of the exploration and study activities authorized by this title
financial
and that an unfair and excessive financial burden will be incurred by
assistance.
such communities as a result of the increased need for such services and
facilities, then he is authorized to assist such communities in meeting
the costs of providing increased municipal services and facilities. The
Secretary of the Interior shall carry out the provisions of this section
through existing Federal programs and he shall consult with the heads
of the departments or agencies of the Federal Government concerned
with the type of services and facilities for which financial assistance is
being made available.

PUBLIC LAW 94-258—APR. 5, 1976
T I T L E II—NAVAL PETROLEUM

90 STAT. 307

RESP:RVES

SEC. 201. Chapter 641 of title 10, United States Code, is amended as
'
follows:
(1) Immediately before section 7421 insert the following new
section:
"§ 7420. Definitions
10 USC 7420.
"(a) In this chapter—
"(1) 'national defense'includes the needs of, and the planning
and preparedness to meet, essential defense, industrial, and military emergency energy requirements relative to the national
safety, welfare, and economy, particularly resulting from foreign
military or economic actions;
"(2) 'naval petroleum reserves'means the naval petroleum and
oil shale reserves established by this chapter, including Naval
Petroleum Reserve Numbered 1 (Elk Hills), located in Kern
County, California, established by Executive order of the President, dated September 2, 1912; Naval Petroleum Reserve Numbered 2 (Buena Vista), located in Kern County, California,
established by Executive order of the President, dated December 13, 1912; Naval Petroleum Reserve Numbered 3 (Teapot
Dome), located in Wyoming, established by Executive order of the
President, dated April 30, 1915; Naval Petroleum Reserve Num^
bered 4, Alaska, established by Executive order of the President,
dated February 27,1923 (until redesignated as the National Petroleum Reserve in Alaska under the jurisdiction of the Secretary of
the Interior as provided in the Naval Petroleum Reserves Production Act of 1976); Oil Shale Reserve Numbered 1, located in
Colorado, established by P^xecutive order of the President, dated
December 6, 1916, as amended by Executive order dated June 12,
1919; Oil Shale Reserve Numbered 2, located in I'tah, established
by Executive order of the President, dated December 6,1916; and
Oil Shale Reserve Numbered 3, located in Colorado, established by
Executive order of the President, dated September 27,1924;
"(3) 'petroleum' includes crude oil, gases (including natural
gas), natural gasoline, and other i-elated hydrocarbons, oil shale,
and the products of any of such resources;
"(4) 'Secretary'means the Secretary of the Navy;
"(5) 'small refiner' means an owner of a refinery or refineries
(including refineries not in operation) who qualifies as a small
business refiner under the rules and regulations of the Small
Business Administration; and
"(6) 'maximum efficient rate' means the maximum sustainable
daily oil or gas rate from a reservoir which will permit economic
development and depletion of that reservoir without detriment to
the ultimate recovery.".
(2) Section 7421 (a) is amended—
10 IJSC 7421.
(A) by striking out "of the Navy";
(B) by striking out "and oil shale";
(C) by striking out "for naval purposes" and inserting in lieu
thereof "for national defense purposes"; and
(D) by striking out "vsection 7438 hereof and inserting in lieu
thereof "this chapter".
(3) The text of section 7422 is amended to read as follows:
10 USC 7422.
" (a) The Secretary, directly or by contract, lease, or otherwise, shall
explore, prospect, conserve, develop*, use, and operate the naval petroleum reserves in his discretion, subject to the provisions of subsection

90 STAT. 308

'

'''*:•'

Investigation.
Report to
Congress.

PUBLIC LAW 94-258—APR. 5, 1976
(c) and the other provisions of this chapter; except that no petroleum
leases shall be granted at Naval Petroleum Reserves Numbered 1 and 3.
"(b) Except as otherwise provided in this chapter, particularly
subsection (c) of this section, the naval petroleum reserves shall be
used and operated for—
"(1) the protection, conservation, maintenance, and testing of
those reserves; or
"(2) the production of petroleum whenever and to the extent
that the Secretary, with the approval of the President, finds that
such production is needed for national defense purposes and the
production is authorized by a joint resolution of Congress.
"(c) (1) In administering Naval Petroleum Reserves Numbered 1,
2, and 3, the Secretary is authorized and directed—
"(A) to further explore, develop, and operate such reserves;
"(B) commencing within ninety days after the date of enactment of the Naval Petroleum Reserves Production Act of 1976,
to produce such reserves at the maximum efficient rate consistent
with sound engineering practices for a period not to exceed six
years after the date of enactment of such Act ;
"(C) during such production period or any extension thereof
to sell or otherwise dispose of the United States share of such
petroleum produced from such reserves as hereinafter provided;
and
"(D) to construct, acquire, or contract for the use of storage
and shipping facilities on and off the reserves and pipelines and
associated facilities on and off the reserves for transporting petroleum from such reserves to the points where the production from
.«?uch reserves will be refined or shipped.
Any pipeline in the vicinity of a naval petroleum reserve not otherwise operated as a common carrier may be acquired by the Secretary
by condemnation, if necessary, if the owner thereof refuses to accept,
convey, and transport without discrimiation and at reasonable rates
any petroleum produced at such reserve. With the approval of the
Secretary, rights-of-way for new pipelines and associated facilities
may be acquired by the exercise of the right of eminent domain in
the appropriate United States district court. Such rights-of-way may
be acquired in the manner set forth in the Act of February 26, 1931,
chapter 307 (46_ Stat. 1421; 40 U.S.C. 258(a)), and the prospective
holder of the right-of-Avay is 'the authority empowered by law to
acquire the lands' within the meaning of that Act. Such new pipelines
shall accept, convey, and transport without discrimination and at reasonable rates any petroleum produced at such reserves as a common
carrier. Pipelines and associated facilities constructed at or procured
for Naval Petroleum Reserve Numbered 1 pursuant to this subsection
shall have adeFile Typeapplication/pdfFile Modified2022-12-07File Created2011-11-11