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30 U.S.C. § 223 — Leases; amount and survey of land; term of lease; royalties and annual rental

Federal law — U.S. Code and appendices · legal_authorities

30 U.S.C. § 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 one-fourth of the land embraced in the prospecting 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section226&num=0&edition=prelim) 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 12½ per centum in am

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Source file: Laws/federal/codes/united-states-code/title-30/section-223-leases-amount-and-survey-of-land-term-of-lease-royalties-and-annual-rent--7ac0c81c57.md
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Source location: Title 30, Chapter 3A, § 223; chapter-3a-leases-and-prospecting-permits.md

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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 one-fourth of the land embraced in the prospecting 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section226&num=0&edition=prelim) 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 12½ 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section226&num=0&edition=prelim) 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.

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Federal law — U.S. Code and appendices · legal_authorities

30 U.S.C. § 226 — Leasing of oil and gas parcels

**(a) Leasing authorized** (1) **In general** — Any parcel of land subject to disposition under this chapter that is known or believed to contain oil or gas deposits shall be made available for leasing, subject to paragraph (2), by the Secretary of the Interior, not later than 18 months after the date of receipt by the Secretary of an expression of interest in leasing the applicable parcel of land available for disposition under this section, if the Secretary determines that the parcel of land is open to oil or gas leasing under the approved resource management plan applicable to the planning area in which the parcel of land is located that is in effect on the date on which the expression of interest was submitted to the Secretary (referred to in this subsection as the “approved resource management plan”). (2) **Resource management plans** (A) *Lease terms and conditions* — A lease issued by the Secretary under this section with respect to an applicable parcel of land made available for leasing under paragraph (1)— (i) shall be subject to the terms and conditions of the approved resource management plan; and (ii) may not require any stipulations or mitigation requirements not included in the approved resource management plan. (B) *Effect of amendment* — The initiation of an amendment to an approved resource management plan shall not prevent or delay the Secretary from making the applicable parcel of land available for leasing in accordance with that approved resource management plan if the other requirements of this section have been met, as determined by the Secretary. **(b) Lands within known geologic structure of a producing oil or gas field; lands within special tar sand areas; competitive bidding; royalties** (1) (A) All lands to be leased wh

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Federal law — U.S. Code and appendices · legal_authorities

30 U.S.C. § 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section226&num=0&edition=prelim) 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section226/m&num=0&edition=prelim) 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 sit

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Federal law — U.S. Code and appendices · legal_authorities

30 U.S.C. § 229 — Preference right to permits or leases of claimants of lands bona fide entered as agricultural land; terms and conditions

In the case of lands bona fide entered as agricultural, and not withdrawn or classified as mineral at the time of entry, but not including lands claimed under any railroad grant, the entryman or patentee, or assigns, where assignment was made prior to January 1, 1918, if the entry has been patented with the mineral right reserved, shall be entitled to a preference right to a permit and to a lease, as herein provided, in case of discovery; and within an area not greater than a township such entryman and patentees, or assigns holding restricted patents may combine their holdings, not to exceed two thousand five hundred and sixty acres for the purpose of making joint application. Leases executed under this section and embracing only lands so entered shall provide for the payment of a royalty of not less than 12½ per centum as to such areas within the permit as may not be included within the discovery lease to which the permittee is entitled under [section 223 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section223&num=0&edition=prelim).

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Federal law — U.S. Code and appendices · legal_authorities

30 U.S.C. § 223 — Leases; amount and survey of land; term of

Page 72 TITLE 30—MINERAL LANDS AND MINING §§ 221 to 222i moval 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.) Editorial Notes 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 ap- plicant 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 develop- ment, extraction’’, respectively. SUBCHAPTER IV—OIL AND GAS §§ 221 to 222i. Omitted Editorial Notes 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, exten- sion, location of lands, marking land, notice of applica- tion for permits, permits in Alaska, exchanging per- mits for leases, and limited extensions to Dec. 31, 1938. Section 222, act Jan. 11, 1922, ch. 28, 42 Stat. 356, au- thorized 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,

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