30 U.S.C. § 229 — Preference right to permits or leases of

Page 83 TITLE 30—MINERAL LANDS AND MINING §§ 230 to 233 claim, or unavoidably lost: Provided, however, That the provisions of this section shall not apply to lands reserved for the use of the Navy. No claimant for a permit or lease who has been guilty of any fraud or who had knowledge or rea- sonable grounds to know of any fraud, or who has not acted honestly and in good faith shall be entitled to any of the benefits of this section. All permits or leases hereunder shall inure to the benefit of the claimant and all persons claiming through or under him by lease, con- tract, or otherwise, as their interests may ap- pear. (Feb. 25, 1920, ch. 85, § 19, 41 Stat. 445.) Editorial Notes REFERENCES IN TEXT Section 227 of this title, referred to in text, was omit- ted from the Code. § 229. Preference right to permits or leases of claimants of lands bona fide entered as agri- cultural land; terms and conditions In the case of lands bona fide entered as agri- cultural, and not withdrawn or classified as mineral at the time of entry, but not including lands claimed under any railroad grant, the entryman or patentee, or assigns, where assign- ment 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 com- bine 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 121⁄2 per centum as to such areas within the permit as may not be included within the discovery lease to which the permittee is enti- tled under section 223 of this title. (Feb. 25, 1920, ch. 85, § 20, 41 Stat. 445.) § 229a. Water struck while drilling for oil and gas (a) Acquisition; condition in lease All prospecting permits and leases for oil or gas made or issued under the provisions of this chapter shall be subject to the condition that in case the permittee or lessee strikes water while drilling instead of oil or gas, the Secretary of the Interior may, when such water is of such quality and quantity as to be valuable and usa- ble at a reasonable cost for agricultural, domes- tic, or other purposes, purchase the casing in the well at the reasonable value thereof to be fixed under rules and regulations to be prescribed by the Secretary. (b) Prior leases In cases where water wells producing such water have heretofore been or may hereafter be drilled upon lands embraced in any prospecting permit or lease heretofore issued under this chapter, the Secretary may in like manner pur- chase the casing in such wells. (c) Disposition The Secretary may make such purchase and may lease or operate such wells for the purpose of producing water and of using the same on the public lands or of disposing of such water for beneficial use on other lands, and where such wells have heretofore been plugged or abandoned or where such wells have been drilled prior to the issuance of any permit or lease by persons not in privity with the permittee or lessee, the Secretary may develop the same for the pur- poses of this section: Provided, That owners or occupants of lands adjacent to those upon which such water wells may be developed shall have a preference right to make beneficial use of such water. (d) Revolving fund The Secretary may use so much of any funds available for the plugging of wells, as he may find necessary to start the program provided for by this section, and thereafter he may use the proceeds from the sale or other disposition of such water as a revolving fund for the continu- ation of such program, and such proceeds are hereby appropriated for such purpose. (e) Operations under lease not restricted Nothing in this section shall be construed to restrict operations under any oil or gas lease or permit under any other provision of this chap- ter. (Feb. 25, 1920, ch. 85, § 40, as added June 16, 1934, ch. 557, 48 Stat. 977; amended Pub. L. 94–579, title VII, § 704(a), Oct. 21, 1976, 90 Stat. 2792.) Editorial Notes AMENDMENTS 1976—Subsec. (a). Pub. L. 94–579 struck out proviso re- lating to reservation of land as a water hole under sec- tion 300 of title 43. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1976 AMENDMENT Pub. L. 94–579, title VII, § 704(a), Oct. 21, 1976, 90 Stat. 2792, provided that the amendment made by section 704(a) is effective on and after Oct. 21, 1976. SAVINGS PROVISION Amendment by Pub. L. 94–579 not to be construed as terminating any valid lease, permit, patent, etc., exist- ing on Oct. 21, 1976, see section 701 of Pub. L. 94–579, set out as a note under section 1701 of Title 43, Public Lands. §§ 230 to 233. Repealed. June 22, 1948, ch. 605, § 3, 62 Stat. 576 Section 230, act Mar. 4, 1923, ch. 249, § 1, 42 Stat. 1448, authorized permits and leases for certain United States citizens and corporations in Oklahoma. Section 231, act Mar. 4, 1923, ch. 249, § 2, 42 Stat. 1448, required applications for permits and leases to be made not later than sixty days after Mar. 4, 1923. Section 232, act Mar. 4, 1923, ch. 249, § 3, 42 Stat. 1448, limited amount of land any one person or corporation could be granted. Section 233, act Mar. 4, 1923, ch. 249, § 4, 42 Stat. 1448, provided for payment of royalties to United States.