30 U.S.C. § 205 — Consolidation of leases

Page 67 TITLE 30—MINERAL LANDS AND MINING § 207 paragraph (3), on a finding by the Secretary under para- graph (2), any person’’ for ‘‘Any person’’ and ‘‘secure modifications of the original coal lease by including ad- ditional coal lands or coal deposits contiguous or cor- nering to those embraced in the lease’’ for ‘‘upon a finding by him that it would be in the interest of the United States, secure modifications of the original coal lease by including additional coal lands or coal deposits contiguous or cornering to those embraced in such lease, but in no event shall the total area added by such modifications to an existing coal lease exceed one hun- dred sixty acres, or add acreage larger than that in the original lease’’, added pars. (2) and (3), and designated second and third sentences as subsecs. (b) and (c), re- spectively. 1978—Pub. L. 95–554 authorized modification of leases to include coal lands or coal deposits cornering to those embraced in the leases and inserted provision respect- ing application of production or mining plan require- ments of sections 202a(2) and 207(c) and minimum roy- alty provisions of section 207(a) of this title. 1976—Pub. L. 94–377 struck out the advantage to the lessee as one of the conditions for modification of the original lease, substituted provision prohibiting the ad- dition of total area in excess of 160 acres or adding acreage larger than that in the original lease for provi- sion limiting the total area embraced in such modified lease to an aggregate of 2560 acres, and inserted provi- sion authorizing the Secretary to prescribe terms and conditions consistent with this chapter which shall be applicable to the total acreage in the modified lease. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2005 AMENDMENT Amendment by Pub. L. 109–58 applicable with respect to any coal lease issued before, on, or after Aug. 8, 2005, see section 438 of Pub. L. 109–58, set out as a note under section 201 of this title. SAVINGS PROVISION Pub. L. 94–377, § 13(b), Aug. 4, 1976, 90 Stat. 1090, pro- vided that the amendment made by that section is sub- ject to valid existing rights. § 204. Repealed. Pub. L. 94–377, § 13(a), Aug. 4, 1976, 90 Stat. 1090 Section, act Feb. 25, 1920, ch. 85, § 4, 41 Stat. 439, pro- vided for the leasing of an additional tract of land or coal deposit, not to exceed 2560 acres, upon a showing by a lessee that all workable deposits of coal would be exhausted, worked out, or removed within three years thereafter. Statutory Notes and Related Subsidiaries SAVINGS PROVISION Pub. L. 94–377, § 13(a), Aug. 4, 1976, 90 Stat. 1090, pro- vided that the repeal of this section is subject to valid existing rights. § 205. Consolidation of leases If, in the judgment of the Secretary of the In- terior, the public interest will be subserved thereby, lessees holding under lease areas not exceeding the maximum permitted under this chapter may consolidate their leases through the surrender of the original leases and the in- clusion of such areas in a new lease of not to ex- ceed two thousand five hundred and sixty acres of contiguous lands. (Feb. 25, 1920, ch. 85, § 5, 41 Stat. 439.) § 206. Noncontiguous coal or phosphate tracts in single lease Where coal or phosphate lands aggregating two thousand five hundred and sixty acres and subject to lease hereunder do not exist as con- tiguous areas, the Secretary of the Interior is authorized, if, in his opinion the interests of the public and of the lessee will be thereby sub- served, to embrace in a single lease noncontig- uous tracts which can be operated as a single mine or unit. (Feb. 25, 1920, ch. 85, § 6, 41 Stat. 439.) § 207. Conditions of lease (a) Term of lease; annual rentals; royalties; read- justment of conditions A coal lease shall be for a term of twenty years and for so long thereafter as coal is pro- duced annually in commercial quantities from that lease. Any lease which is not producing in commercial quantities at the end of ten years shall be terminated. The Secretary shall by reg- ulation prescribe annual rentals on leases. A lease shall require payment of a royalty in such amount as the Secretary shall determine of not less than 121⁄2 per centum of the value of coal as defined by regulation, except the Secretary may determine a lesser amount in the case of coal re- covered by underground mining operations. The lease shall include such other terms and condi- tions as the Secretary shall determine. Such rentals and royalties and other terms and condi- tions of the lease will be subject to readjust- ment at the end of its primary term of twenty years and at the end of each ten-year period thereafter if the lease is extended. (b) Diligent development and continued oper- ation; suspension of condition on payment of advance royalties (1) Each lease shall be subject to the condi- tions of diligent development and continued op- eration of the mine or mines, except where oper- ations under the lease are interrupted by strikes, the elements, or casualties not attrib- utable to the lessee. (2) The Secretary of the Interior, upon deter- mining that the public interest will be served thereby, may suspend the condition of continued operation upon the payment of advance royal- ties. (3) Advance royalties described in paragraph (2) shall be no less than the production royalty which would otherwise be paid and shall be com- puted on a fixed reserve to production ratio (de- termined by the Secretary). (4) Advance royalties described in paragraph (2) shall be computed— (A) based on— (i) the average price in the spot market for sales of comparable coal from the same re- gion during the last month of each applica- ble continued operation year; or (ii) in the absence of a spot market for comparable coal from the same region, by using a comparable method established by the Secretary of the Interior to capture the commercial value of coal; and (B) based on commercial quantities, as de- fined by regulation by the Secretary of the In- terior. (5) The aggregate number of years during the period of any lease for which advance royalties