30 U.S.C. § 203 — Additional lands or deposits

Page 66 TITLE 30—MINERAL LANDS AND MINING § 203 1 So in original. The comma probably should not appear. (3) Conditions for approval In approving a logical mining unit, the Sec- retary may provide, among other things, that (i) diligent development, continuous operation, and production on any Federal lease or non-Federal land in the logical mining unit shall be con- strued as occurring on all Federal leases in that logical mining unit, and (ii) the rentals and roy- alties for all Federal leases in a logical mining unit may be combined, and advanced royalties paid for any lease within a logical mining unit may be credited against such combined royal- ties. (4) Amendment to lease The Secretary may amend the provisions of any lease included in a logical mining unit so that mining under that lease will be consistent with the requirements imposed on that logical mining unit. (5) Leases issued before date of enactment of this Act Leases issued before the date of enactment of this Act may be included with the consent of all lessees in such logical mining unit, and, if so in- cluded, shall be subject to the provisions of this section. (6) Lessee required to form unit By regulation the Secretary may require a les- see under this chapter to form a logical mining unit, and may provide for determination of par- ticipating acreage within a unit. (7) Required acreage No logical mining unit shall be approved by the Secretary if the total acreage (both Federal and non-Federal) of the unit would exceed twen- ty-five thousand acres. (8) Acreage limitations for coal leases not waived Nothing in this section shall be construed to waive the acreage limitations for coal leases contained in section 184(a) of this title. (Feb. 25, 1920, ch. 85, § 2(d), as added Pub. L. 94–377, § 5(b), Aug. 4, 1976, 90 Stat. 1086; amended Pub. L. 109–58, title IV, § 433, Aug. 8, 2005, 119 Stat. 761.) Editorial Notes REFERENCES IN TEXT The date of enactment of this Act, referred to in par. (5), probably means the date of enactment of Pub. L. 94–377, which was approved Aug. 4, 1976. This section, referred to in pars. (5) and (8), is section 2 of act Feb. 25, 1920, which 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 classi- fied to section 202 of this title, and subsec. (d) of sec- tion 2, as added by section 5(b) of Pub. L. 94–377, is clas- sified to this section. CODIFICATION Section is comprised of subsec. (d) of section 2 of act Feb. 25, 1920, as added by Pub. L. 94–377. Subsecs. (a) and (b) of said section 2 are classified to section 201 of this title. Subsec. (c) of said section 2 is classified to section 202 of this title. AMENDMENTS 2005—Par. (2). Pub. L. 109–58 designated existing pro- visions as subpar. (A) and added subpar. (B). 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. § 203. Additional lands or deposits (a) In general (1) Except as provided in paragraph (3), on a finding by the Secretary under paragraph (2), any person, association, or corporation holding a lease of coal lands or coal deposits under the provisions of this chapter may with the approval of the Secretary of the Interior,1 secure modi- fications of the original coal lease by including additional coal lands or coal deposits contiguous or cornering to those embraced in the lease. (2) A finding referred to in paragraph (1) is a finding by the Secretary that the modifica- tions— (A) would be in the interest of the United States; (B) would not displace a competitive interest in the lands; and (C) would not include lands or deposits that can be developed as part of another potential or existing operation. (3) In no case shall the total area added by modifications to an existing coal lease under paragraph (1)— (A) exceed 960 acres; or (B) add acreage larger than that in the origi- nal lease. (b) Terms and conditions The Secretary shall prescribe terms and condi- tions which shall be consistent with this chapter and applicable to all of the acreage in such modified lease except that nothing in this sec- tion shall require the Secretary to apply the production or mining plan requirements of sec- tions 202a(2) and 207(c) of this title. (c) Royalties The minimum royalty provisions of section 207(a) of this title shall not apply to any lands covered by this modified lease prior to a modi- fication until the term of the original lease or extension thereof which became effective prior to the effective date of this Act has expired. (Feb. 25, 1920, ch. 85, § 3, 41 Stat. 439; Pub. L. 94–377, § 13(b), Aug. 4, 1976, 90 Stat. 1090; Pub. L. 95–554, § 3, Oct. 30, 1978, 92 Stat. 2074; Pub. L. 109–58, title IV, § 432, Aug. 8, 2005, 119 Stat. 760.) Editorial Notes REFERENCES IN TEXT Sections 202a(2) and 207(c) of this title, referred to in subsec. (b), was in the original ‘‘section 2(d)(2) and 7(c) of this Act (30 U.S.C. 201(d)(2) and 207(c))’’, and was translated as sections 202a(2) and 207(c) of this title to reflect the probable intent of Congress. The effective date of this Act, referred to in subsec. (c), probably means the date of enactment of Pub. L. 95–554, which was approved Oct. 30, 1978. AMENDMENTS 2005—Pub. L. 109–58 designated first sentence as par. (1) of subsec. (a), substituted ‘‘Except as provided in 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