10 U.S.C. § 8720 — Definitions

Page 3352 TITLE 10—ARMED FORCES § 8720 1980—Pub. L. 96–513, title V, § 513(32)(C), Dec. 12, 1980, 94 Stat. 2933, substituted ‘‘Naval Petroleum Reserve Numbered’’ for ‘‘naval petroleum reserve numbered’’ in item 7426. 1979—Pub. L. 96–137, § 3(b)(2), Dec. 12, 1979, 93 Stat. 1062, substituted ‘‘Authorizations of appropriations’’ for ‘‘Naval petroleum reserve special account’’ in item 7432. 1976—Pub. L. 94–258, title II, § 201(20), Apr. 5, 1976, 90 Stat. 313, added item 7420 and substituted ‘‘Naval petro- leum reserve special account’’ for ‘‘Expenditures; ap- propriations chargeable’’ in item 7432. 1962—Pub. L. 87–796, § 1(13), Oct. 11, 1962, 76 Stat. 906, substituted ‘‘Rifle, Colorado, plant; possession, use, and transfer of’’ for ‘‘Exclusion of naval oil shale reserves’’ in item 7438. § 8720. Definitions In this chapter: (1) The term ‘‘national defense’’ includes the needs of, and the planning and preparedness to meet, essential defense, industrial, and mili- tary emergency energy requirements relative to the national safety, welfare, and economy, particularly resulting from foreign military or economic actions. (2) The term ‘‘naval petroleum reserves’’ means the naval petroleum and oil shale re- serves established by this chapter, including Naval Petroleum Reserve Numbered 1 (Elk Hills), located in Kern County, California, es- tablished by Executive order of the President, dated September 2, 1912; Naval Petroleum Re- serve Numbered 2 (Buena Vista), located in Kern County, California, established by Execu- tive order of the President, dated December 13, 1912; Naval Petroleum Reserve Numbered 3 (Teapot Dome), located in Wyoming, estab- lished by Executive order of the President, dated April 30, 1915; Oil Shale Reserve Num- bered 1, located in Colorado, established by Executive order of the President, dated De- cember 6, 1916, as amended by Executive order dated June 12, 1919; Oil Shale Reserve Num- bered 2, located in Utah, established by Execu- tive order of the President, dated December 6, 1916; and Oil Shale Reserve Numbered 3, lo- cated in Colorado, established by Executive order of the President, dated September 27, 1924. (3) The term ‘‘petroleum’’ includes crude oil, gases (including natural gas), natural gaso- line, and other related hydrocarbons, oil shale, and the products of any of such resources. (4) The term ‘‘Secretary’’ means the Sec- retary of Energy. (5) The term ‘‘small refiner’’ means an owner of a refinery or refineries (including refineries not in operation) who qualifies as a small busi- ness refiner under the rules and regulations of the Small Business Administration. (6) The term ‘‘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. (Added Pub. L. 94–258, title II, § 201(1), Apr. 5, 1976, 90 Stat. 307, § 7420; amended Pub. L. 96–513, title V, § 513(30), Dec. 12, 1980, 94 Stat. 2933; Pub. L. 100–26, § 7(k)(5), Apr. 21, 1987, 101 Stat. 284; re- numbered § 8720, Pub. L. 115–232, div. A, title VIII, § 807(d)(5), Aug. 13, 2018, 132 Stat. 1836.) Editorial Notes AMENDMENTS 2018—Pub. L. 115–232 renumbered section 7420 of this title as this section. 1987—Pub. L. 100–26 substituted colon for dash at end of introductory provisions, inserted ‘‘The term’’ in each par., substituted periods for semicolons in pars. (1) to (4) and period for ‘‘; and’’ in par. (5). 1980—Pub. L. 96–513 in introductory text struck out ‘‘(a)’’ before ‘‘In’’, in par. (2) struck out provisions re- lating to Naval Petroleum Reserve Numbered 4, and in par. (4) substituted ‘‘Energy’’ for ‘‘the Navy’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Amendment by Pub. L. 115–232 effective Feb. 1, 2019, with provision for the coordination of amendments and special rule for certain redesignations, see section 800 of Pub. L. 115–232, set out as a note preceding section 3001 of this title. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–513 effective Dec. 12, 1980, see section 701(b)(3) of Pub. L. 96–513, set out as a note under section 101 of this title. NAVAL PETROLEUM RESERVE Pub. L. 109–58, title III, subtitle D, Aug. 8, 2005, 119 Stat. 694, provided that: ‘‘SEC. 331. TRANSFER OF ADMINISTRATIVE JURIS- DICTION AND ENVIRONMENTAL REMEDIATION, NAVAL PETROLEUM RESERVE NUMBERED 2, KERN COUNTY, CALIFORNIA. ‘‘(a) ADMINISTRATION JURISDICTION TRANSFER TO SEC- RETARY OF THE INTERIOR.—Effective on the date of the enactment of this Act [Aug. 8, 2005], administrative ju- risdiction and control over all public domain lands in- cluded within Naval Petroleum Reserve Numbered 2 lo- cated in Kern County, California (other than the lands specified in subsection (b)), are transferred from the Secretary to the Secretary of the Interior for manage- ment, subject to subsection (c), in accordance with the laws governing management of the public lands, and the regulations promulgated under such laws, including the Mineral Leasing Act (30 U.S.C. 181 et seq.) and the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.). ‘‘(b) EXCLUSION OF CERTAIN RESERVE LANDS.—The transfer of administrative jurisdiction made by sub- section (a) does not include the following lands: ‘‘(1) That portion of Naval Petroleum Reserve Num- bered 2 authorized for disposal under section 3403(a) of the Strom Thurmond National Defense Authoriza- tion Act for Fiscal Year 1999 (Public Law 105–261; 10 U.S.C. 7420 note [now 10 U.S.C. 8720 note]). ‘‘(2) That portion of the surface estate of Naval Pe- troleum Reserve Numbered 2 conveyed to the City of Taft, California, by section 333. ‘‘(c) PURPOSE OF TRANSFER.— ‘‘(1) PRODUCTION OF HYDROCARBON RESOURCES.—Not- withstanding any other provision of law, the prin- cipal purpose of the lands subject to transfer under subsection (a) is the production of hydrocarbon re- sources, and the Secretary of the Interior shall man- age the lands in a fashion consistent with this pur- pose. In managing the lands, the Secretary of the In- terior shall regulate operations to prevent unneces- sary degradation and to provide for ultimate eco- nomic recovery of the resources. ‘‘(2) DISPOSAL AUTHORITY AND SURFACE USE.—The Secretary of the Interior may make disposals of lands subject to transfer under subsection (a), or allow commercial or non-profit surface use of such lands, not to exceed 10 acres each, so long as the disposals or surface uses do not materially interfere with the ultimate economic recovery of the hydrocarbon re- Page 3353 TITLE 10—ARMED FORCES § 8720 sources of such lands. All revenues received from the disposal of lands under this paragraph or from allow- ing the surface use of such lands shall be deposited in the Naval Petroleum Reserve Numbered 2 Lease Rev- enue Account established by section 332. ‘‘(d) CONFORMING AMENDMENT.—[Amended section 3403 of Pub. L. 105–261, set out below.] ‘‘SEC. 332. NAVAL PETROLEUM RESERVE NUM- BERED 2 LEASE REVENUE ACCOUNT. ‘‘(a) ESTABLISHMENT.—There is established in the Treasury a special deposit account to be known as the ‘Naval Petroleum Reserve Numbered 2 Lease Revenue Account’ (in this section referred to as the ‘lease rev- enue account’). The lease revenue account is a revolv- ing account, and amounts in the lease revenue account shall be available to the Secretary of the Interior, without further appropriation, for the purposes speci- fied in subsection (b). ‘‘(b) PURPOSES OF ACCOUNT.— ‘‘(1) ENVIRONMENTAL-RELATED COSTS.—The lease revenue account shall be the sole and exclusive source of funds to pay for any and all costs and ex- penses incurred by the United States for— ‘‘(A) environmental investigations (other than any environmental investigations that were con- ducted by the Secretary before the transfer of the Naval Petroleum Reserve Numbered 2 lands under section 331), remediation, compliance actions, re- sponse, waste management, impediments, fines or penalties, or any other costs or expenses of any kind arising from, or relating to, conditions exist- ing on or below the Naval Petroleum Reserve Num- bered 2 lands, or activities occurring or having oc- curred on such lands, on or before the date of the transfer of such lands; and ‘‘(B) any future remediation necessitated as a re- sult of pre-transfer and leasing activities on such lands. ‘‘(2) TRANSITION COSTS.—The lease revenue account shall also be available for use by the Secretary of the Interior to pay for transition costs incurred by the Department of the Interior associated with the trans- fer and leasing of the Naval Petroleum Reserve Num- bered 2 lands. ‘‘(c) FUNDING.—The lease revenue account shall con- sist of the following: ‘‘(1) Notwithstanding any other provision of law, for a period of three years after the date of the trans- fer of the Naval Petroleum Reserve Numbered 2 lands under section 331, the sum of $500,000 per year of rev- enue from leases entered into before that date, in- cluding bonuses, rents, royalties, and interest charges collected pursuant to the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et. seq.), derived from the Naval Petroleum Reserve Numbered 2 lands, shall be deposited into the lease revenue account. ‘‘(2) Subject to subsection (d), all revenues derived from leases on Naval Petroleum Reserve Numbered 2 lands issued on or after the date of the transfer of such lands, including bonuses, rents, royalties, and interest charges collected pursuant to the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.), shall be deposited into the lease revenue account. ‘‘(d) LIMITATION.—Funds in the lease revenue account shall not exceed $3,000,000 at any one time. Whenever funds in the lease revenue account are obligated or ex- pended so that the balance in the account falls below that amount, lease revenues referred to in subsection (c)(2) shall be deposited in the account to maintain a balance of $3,000,000. ‘‘(e) TERMINATION OF ACCOUNT.—At such time as the Secretary of the Interior certifies that remediation of all environmental contamination of Naval Petroleum Reserve Numbered 2 lands in existence as of the date of the transfer of such lands under section 331 has been successfully completed, that all costs and expenses of investigation, remediation, compliance actions, re- sponse, waste management, impediments, fines, or pen- alties associated with environmental contamination of such lands in existence as of the date of the transfer have been paid in full, and that the transition costs of the Department of the Interior referred to in sub- section (b)(2) have been paid in full, the lease revenue account shall be terminated and any remaining funds shall be distributed in accordance with subsection (f). ‘‘(f) DISTRIBUTION OF REMAINING FUNDS.—Section 35 of the Mineral Leasing Act (30 U.S.C. 191) shall apply to the payment and distribution of all funds remaining in the lease revenue account upon its termination under subsection (e). ‘‘SEC. 333. LAND CONVEYANCE, PORTION OF NAVAL PETROLEUM RESERVE NUMBERED 2, TO CITY OF TAFT, CALIFORNIA. ‘‘(a) CONVEYANCE.—Effective on the date of the enact- ment of this Act [Aug. 8, 2005], there is conveyed to the City of Taft, California (in this section referred to as the ‘City’), all surface right, title, and interest of the United States in and to a parcel of real property con- sisting of approximately 220 acres located in the NE1⁄4, the NE1⁄4 of the NW1⁄4, and the N1⁄2 of the SE1⁄4 of the NW1⁄4 of section 18, township 32 south, range 24 east, Mount Diablo meridian, Kern County, California. ‘‘(b) CONSIDERATION.—The conveyance under sub- section (a) is made without the payment of consider- ation by the City. ‘‘(c) TREATMENT OF EXISTING RIGHTS.—The convey- ance under subsection (a) is subject to valid existing rights, including Federal oil and gas lease SAC–019577. ‘‘(d) TREATMENT OF MINERALS.—All coal, oil, gas, and other minerals within the lands conveyed under sub- section (a) are reserved to the United States, except that the United States and its lessees, licensees, per- mittees, or assignees shall have no right of surface use or occupancy of the lands. Nothing in this subsection shall be construed to require the United States or its lessees, licensees, permittees, or assignees to support the surface of the conveyed lands. ‘‘(e) INDEMNIFY AND HOLD HARMLESS.—The City shall indemnify, defend, and hold harmless the United States for, from, and against, and the City shall assume all re- sponsibility for, any and all liability of any kind or na- ture, including all loss, cost, expense, or damage, aris- ing from the City’s use or occupancy of, or operations on, the land conveyed under subsection (a), whether such use or occupancy of, or operations on, occurred be- fore or occur after the date of the enactment of this Act. ‘‘(f) INSTRUMENT OF CONVEYANCE.—Not later than 1 year after the date of the enactment of this Act, the Secretary shall execute, file, and cause to be recorded in the appropriate office a deed or other appropriate in- strument documenting the conveyance made by this section. ‘‘SEC. 334. REVOCATION OF LAND WITHDRAWAL. ‘‘Effective on the date of the enactment of this Act [Aug. 8, 2005], the Executive Order of December 13, 1912, which created Naval Petroleum Reserve Numbered 2, is revoked in its entirety.’’ DISPOSAL OF NAVAL PETROLEUM RESERVES Pub. L. 105–261, div. C, title XXXIV, Oct. 17, 1998, 112 Stat. 2265, as amended by Pub. L. 106–398, § 1 [div. C, title XXXIV, § 3403(a), (c)], Oct. 30, 2000, 114 Stat. 1654, 1654A–484, 1654A–489; Pub. L. 108–204, title I, § 129, Mar. 2, 2004, 118 Stat. 547; Pub. L. 109–58, title III, § 331(d), Aug. 8, 2005, 119 Stat. 695; Pub. L. 110–181, div. C, title XXXIV, § 3402, Jan. 28, 2008, 122 Stat. 590, provided that: ‘‘SEC. 3401. DEFINITIONS. ‘‘In this title: ‘‘(1) The term ‘naval petroleum reserves’ has the meaning given the term in section 7420(2) [now 8720(2)] of title 10, United States Code. ‘‘(2) The term ‘Naval Petroleum Reserve Numbered 2’ means the naval petroleum reserve, commonly re- ferred to as the Buena Vista unit, that is located in Page 3354 TITLE 10—ARMED FORCES § 8720 Kern County, California, and was established by Ex- ecutive order of the President, dated December 13, 1912. ‘‘(3) The term ‘Naval Petroleum Reserve Numbered 3’ means the naval petroleum reserve, commonly re- ferred to as the Teapot Dome unit, that is located in the State of Wyoming and was established by Execu- tive order of the President, dated April 30, 1915. ‘‘(4) The term ‘Oil Shale Reserve Numbered 2’ means the naval petroleum reserve that is located in the State of Utah and was established by Executive order of the President, dated December 6, 1916. ‘‘(5) The term ‘antitrust laws’ has the meaning given the term in section 1(a) of the Clayton Act (15 U.S.C. 12(a)), except that the term also includes— ‘‘(A) the Act of June 19, 1936 (15 U.S.C. 13 et seq.; commonly known as the Robinson-Patman Act); and ‘‘(B) section 5 of the Federal Trade Commission Act (15 U.S.C. 45), to the extent that such section applies to unfair methods of competition. ‘‘(6) The term ‘petroleum’ has the meaning given the term in section 7420(3) [now 8720(3)] of title 10, United States Code. ‘‘SEC. 3402. AUTHORIZATION OF APPROPRIATIONS. ‘‘(a) AMOUNT.—There are hereby authorized to be ap- propriated to the Secretary of Energy $22,500,000 for fis- cal year 1999 for the purpose of carrying out— ‘‘(1) activities under chapter 641 [now 869] of title 10, United States Code, relating to the naval petro- leum reserves; ‘‘(2) closeout activities at Naval Petroleum Reserve Numbered 1 upon the sale of that reserve under sub- title B of title XXXIV of the National Defense Au- thorization Act for Fiscal Year 1996 (Public Law 104–106; 10 U.S.C. 7420 note [now 10 U.S.C. 8720 note]); and ‘‘(3) activities under this title relating to the dis- position of Naval Petroleum Reserve Numbered 2, Naval Petroleum Reserve Numbered 3, and Oil Shale Reserve Numbered 2. ‘‘(b) PERIOD OF AVAILABILITY.—Funds appropriated pursuant to the authorization of appropriations in sub- section (a) shall remain available until expended. ‘‘SEC. 3403. DISPOSAL OF NAVAL PETROLEUM RE- SERVE NUMBERED 2. ‘‘(a) DISPOSAL OF FORD CITY LOTS AUTHORIZED.—(1) Subject to section 3406, the Secretary of Energy may dispose of the portion of Naval Petroleum Reserve Numbered 2 that is located within the town lots in Ford City, California, which are identified as ‘Drill Sites Numbered 3A, 4, 6, 9A, 20, 22, 24, and 26’ and described in the document entitled ‘Ford City Drill Site Loca- tions—NPR–2,’ and accompanying maps on file in the office of the Deputy Assistant Secretary for Naval Pe- troleum and Oil Shale Reserves of the Department of Energy. ‘‘(2) The Secretary of Energy shall carry out the dis- posal authorized by paragraph (1) by competitive sale or lease consistent with commercial practices, by transfer to another Federal agency or a public or pri- vate entity, or by such other means as the Secretary considers appropriate. Any competitive sale or lease under this subsection shall provide for the disposal of all right, title, and interest of the United States in the property to be conveyed. The Secretary of Energy may use the authority provided by the Act of June 14, 1926 (43 U.S.C. 869 et seq.; commonly known as the Recre- ation and Public Purposes Act), in the same manner and to the same extent as the Secretary of the Interior, to dispose of the portion of Naval Petroleum Reserve Numbered 2 described in paragraph (1). ‘‘(3) Section 2696(a) of title 10, United States Code, re- garding the screening of real property for further Fed- eral use before disposal, shall apply to the disposal au- thorized by paragraph (1). ‘‘[(b) Repealed. Pub. L. 109–58, title III, § 331(d), Aug. 8, 2005, 119 Stat. 695.] ‘‘(c) RELATIONSHIP TO ANTITRUST LAWS.—This section does not modify, impair, or supersede the operation of the antitrust laws. ‘‘SEC. 3404. DISPOSAL OF NAVAL PETROLEUM RE- SERVE NUMBERED 3. ‘‘(a) ADMINISTRATION PENDING TERMINATION OF OPER- ATIONS.—The Secretary of Energy shall continue to ad- minister Naval Petroleum Reserve Numbered 3 in ac- cordance with chapter 641 [now 869] of title 10, United States Code, until such time as the Secretary makes a determination to abandon oil and gas operations in Naval Petroleum Reserve Numbered 3 in accordance with commercial operating practices. ‘‘(b) DISPOSAL AUTHORIZED.—After oil and gas oper- ations are abandoned in Naval Petroleum Reserve Numbered 3, the Secretary of Energy may dispose of the reserve as provided in this subsection. Subject to section 3406, the Secretary shall carry out any such dis- posal of the reserve by sale or lease or by transfer to another Federal agency. Any sale or lease shall provide for the disposal of all right, title, and interest of the United States in the property to be conveyed and shall be conducted in accordance with competitive proce- dures consistent with commercial practices, as estab- lished by the Secretary. ‘‘(c) RELATIONSHIP TO ANTITRUST LAWS.—This section does not modify, impair, or supersede the operation of the antitrust laws. ‘‘SEC. 3405. DISPOSAL OF OIL SHALE RESERVE NUMBERED 2. ‘‘(a) DEFINITIONS.—In this section: ‘‘(1) NOSR–2.—The term ‘NOSR–2’ means Oil Shale Reserve Numbered 2, as identified on a map on file in the Office of the Secretary of the Interior. ‘‘(2) MOAB SITE.—The term ‘Moab site’ means the Moab uranium milling site located approximately three miles northwest of Moab, Utah, and identified in the Final Environmental Impact Statement issued by the Nuclear Regulatory Commission in March 1996 in conjunction with Source Materials License No. SUA–917. ‘‘(3) MAP.—The term ‘map’ means the map depict- ing the boundaries of NOSR–2, to be kept on file and available for public inspection in the offices of the Department of the Interior. ‘‘(4) TRIBE.—The term ‘Tribe’ means the Ute Indian Tribe of the Uintah and Ouray Indian Reservation. ‘‘(5) TRUSTEE.—The term ‘Trustee’ means the Trustee of the Moab Mill Reclamation Trust. ‘‘(b) CONVEYANCE.—(1) Except as provided in para- graph (2) and subsection (e), all right, title, and inter- est of the United States in and to all Federal lands within the exterior boundaries of NOSR–2 (including surface and mineral rights) are hereby conveyed to the Tribe in fee simple. The Secretary of Energy shall exe- cute and file in the appropriate office a deed or other instrument effectuating the conveyance made by this section. ‘‘(2) The conveyance under paragraph (1) does not in- clude the following: ‘‘(A) The portion of the bed of Green River con- tained entirely within NOSR–2, as depicted on the map. ‘‘(B) The land (including surface and mineral rights) to the west of the Green River within NOSR–2, as depicted on the map. ‘‘(C) A 1⁄4 mile scenic easement on the east side of the Green River within NOSR–2. ‘‘(c) CONDITIONS ON CONVEYANCE.—(1) The conveyance under subsection (b) is subject to valid existing rights in effect on the day before the date of the enactment of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 [Oct. 30, 2000]. ‘‘(2) On completion of the conveyance under sub- section (b), the United States relinquishes all manage- ment authority over the conveyed land, including trib- al activities conducted on the land. ‘‘(3) With respect to the land conveyed to the Tribe under subsection (b)— ‘‘(A) the land shall not be subject to any Federal re- striction on alienation; and ‘‘(B) notwithstanding any provision to the contrary in the constitution, bylaws, or charter of the Tribe, Page 3355 TITLE 10—ARMED FORCES § 8720 the Act of May 11, 1938 (commonly known as the ‘In- dian Mineral Leasing Act of 1938’) (25 U.S.C. 396a et seq.), the Indian Mineral Development Act of 1982 (25 U.S.C. 2101 et seq.), section 2103 of the Revised Stat- utes (25 U.S.C. 81), or section 2116 of the Revised Stat- utes (25 U.S.C. 177), or any other law, no purchase, grant, lease, or other conveyance of the land (or any interest in the land), and no exploration, develop- ment, or other agreement relating to the land that is authorized by resolution by the governing body of the Tribe, shall require approval by the Secretary of the Interior or any other Federal official. ‘‘(4) The reservation of the easement under sub- section (b)(2)(C) shall not affect the right of the Tribe to use and maintain access to the Green River through the use of the road within the easement, as depicted on the map. ‘‘(5) Each withdrawal that applies to NOSR–2 and that is in effect on the date of the enactment of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 [Oct. 30, 2000] is revoked to the ex- tent that the withdrawal applies to NOSR–2. ‘‘(6) Notwithstanding that the land conveyed to the Tribe under subsection (b) shall not be part of the res- ervation of the Tribe, such land shall be deemed to be part of the reservation of the Tribe for the purposes of criminal and civil jurisdiction. ‘‘(d) ADMINISTRATION OF UNCONVEYED LAND AND IN- TERESTS IN LAND.—(1) The land and interests in land ex- cluded by subparagraphs (A) and (B) of subsection (b)(2) from conveyance under subsection (b) shall be adminis- tered by the Secretary of the Interior in accordance with the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.). ‘‘(2) Not later than three years after the date of the enactment of the Floyd D. Spence National Defense Au- thorization Act for Fiscal Year 2001 [Oct. 30, 2000], the Secretary of the Interior shall submit to Congress a land use plan for the management of the land and in- terests in land referred to in paragraph (1). ‘‘(3) There are authorized to be appropriated to the Secretary of the Interior such sums as are necessary to carry out this subsection. ‘‘(e) ROYALTY.—(1) Notwithstanding the conveyance under subsection (b), the United States retains a nine percent royalty interest in the value of any oil, gas, other hydrocarbons, and all other minerals that are produced, saved, and sold from the conveyed land dur- ing the period beginning on the date of the conveyance and ending on the date the Secretary of Energy re- leases the royalty interest under subsection (i). ‘‘(2) The royalty payments shall be made by the Tribe or its designee to the Secretary of Energy during the period that the oil, gas, hydrocarbons, or minerals are being produced, saved, sold, or extracted. The Sec- retary of Energy shall retain and use the payments in the manner provided in subsection (i)(3). ‘‘(3) The royalty interest retained by the United States under this subsection does not include any de- velopment, production, marketing, and operating ex- penses. ‘‘(4) The Tribe shall submit to the Secretary of En- ergy and to Congress an annual report on resource de- velopment and other activities of the Tribe concerning the conveyance under subsection (b). ‘‘(5) Not later than five years after the date of the en- actment of the Floyd D. Spence National Defense Au- thorization Act for Fiscal Year 2001 [Oct. 30, 2000], and every five years thereafter, the Tribe shall obtain an audit of all resource development activities of the Tribe concerning the conveyance under subsection (b), as provided under chapter 75 of title 31, United States Code. The results of each audit under this paragraph shall be included in the next annual report submitted under paragraph (4). ‘‘(f) RIVER MANAGEMENT.—(1) The Tribe shall manage, under Tribal jurisdiction and in accordance with ordi- nances adopted by the Tribe, land of the Tribe that is adjacent to, and within 1⁄4 mile of, the Green River in a manner that— ‘‘(A) maintains the protected status of the land; and ‘‘(B) is consistent with the government-to-govern- ment agreement and in the memorandum of under- standing dated February 11, 2000, as agreed to by the Tribe and the Secretary of the Interior. ‘‘(2) An ordinance referred to in paragraph (1) shall not impair, limit, or otherwise restrict the manage- ment and use of any land that is not owned, controlled, or subject to the jurisdiction of the Tribe. ‘‘(3) An ordinance adopted by the Tribe and ref- erenced in the government-to-government agreement may not be repealed or amended without the written approval of both the Tribe and the Secretary of the In- terior. ‘‘(g) PLANT SPECIES.—(1) In accordance with a govern- ment-to-government agreement between the Tribe and the Secretary of the Interior, in a manner consistent with levels of legal protection in effect on the date of the enactment of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 [Oct. 30, 2000], the Tribe shall protect, under ordinances adopted by the Tribe, any plant species that is— ‘‘(A) listed as an endangered species or threatened species under section 4 of the Endangered Species Act of 1973 (16 U.S.C. 1533); and ‘‘(B) located or found on the NOSR–2 land conveyed to the Tribe. ‘‘(2) The protection described in paragraph (1) shall be performed solely under tribal jurisdiction. ‘‘(h) HORSES.—(1) The Tribe shall manage, protect, and assert control over any horse not owned by the Tribe or tribal members that is located or found on the NOSR–2 land conveyed to the Tribe in a manner that is consistent with Federal law governing the manage- ment, protection, and control of horses in effect on the date of the enactment of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 [Oct. 30, 2000]. ‘‘(2) The management, control, and protection of horses described in paragraph (1) shall be performed solely— ‘‘(A) under tribal jurisdiction; and ‘‘(B) in accordance with a government-to-govern- ment agreement between the Tribe and the Secretary of the Interior. ‘‘(i) REMEDIAL ACTION AT MOAB SITE.—(1)(A) The Sec- retary of Energy shall prepare a plan for remediation, including ground water restoration, of the Moab site in accordance with title I of the Uranium Mill Tailings Radiation Control Act of 1978 (42 U.S.C. 7911 et seq.). The Secretary of Energy shall enter into arrangements with the National Academy of Sciences to obtain the technical advice, assistance, and recommendations of the National Academy of Sciences in objectively evalu- ating the costs, benefits, and risks associated with var- ious remediation alternatives, including removal or treatment of radioactive or other hazardous materials at the site, ground water restoration, and long-term management of residual contaminants. If the Secretary prepares a remediation plan that is not consistent with the recommendations of the National Academy of Sciences, the Secretary shall submit to Congress a re- port explaining the reasons for deviation from the Na- tional Academy of Sciences’ recommendations. ‘‘(B) The remediation plan required by subparagraph (A) shall be completed not later than one year after the date of the enactment of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 [Oct. 30, 2000], and the Secretary of Energy shall commence re- medial action at the Moab site as soon as practicable after the completion of the plan. ‘‘(C) The license for the materials at the Moab site issued by the Nuclear Regulatory Commission shall terminate one year after the date of the enactment of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001, unless the Secretary of Energy determines that the license may be terminated earlier. Until the license is terminated, the Trustee, subject to the availability of funds appropriated specifically for a Page 3356 TITLE 10—ARMED FORCES § 8720 purpose described in clauses (i) through (iii) or made available by the Trustee from the Moab Mill Reclama- tion Trust, may carry out— ‘‘(i) interim measures to reduce or eliminate local- ized high ammonia concentrations in the Colorado River, identified by the United States Geological Sur- vey in a report dated March 27, 2000; ‘‘(ii) activities to dewater the mill tailings at the Moab site; and ‘‘(iii) other activities related to the Moab site, sub- ject to the authority of the Nuclear Regulatory Com- mission and in consultation with the Secretary of En- ergy. ‘‘(D) As part of the remediation plan for the Moab site required by subparagraph (A), the Secretary of En- ergy shall develop, in consultation with the Trustee, the Nuclear Regulatory Commission, and the State of Utah, an efficient and legal means for transferring all responsibilities and title to the Moab site and all the materials therein from the Trustee to the Department of Energy. ‘‘(2) The Secretary of Energy shall limit the amounts expended in carrying out the remedial action under paragraph (1) to— ‘‘(A) amounts specifically appropriated for the re- medial action in an appropriation Act; and ‘‘(B) other amounts made available for the remedial action under this subsection. ‘‘(3)(A) The royalty payments received by the Sec- retary of Energy under subsection (e) shall be available to the Secretary, without further appropriation, to carry out the remedial action under paragraph (1) until such time as the Secretary determines that all costs in- curred by the United States to carry out the remedial action (other than costs associated with long-term monitoring) have been paid. ‘‘(B) Upon making the determination referred to in subparagraph (A), the Secretary of Energy shall trans- fer all remaining royalty amounts to the general fund of the Treasury and release to the Tribe the royalty in- terest retained by the United States under subsection (e). ‘‘(4)(A) Funds made available to the Department of Energy for national security activities shall not be used to carry out the remedial action under paragraph (1), except that the Secretary of Energy may use such funds for program direction directly related to the re- medial action. ‘‘(B) There are authorized to be appropriated to the Secretary of Energy to carry out the remedial action under paragraph (1) such sums as are necessary. ‘‘(5) If the Moab site is sold after the date on which the Secretary of Energy completes the remedial action under paragraph (1), the seller shall pay to the Sec- retary of Energy, for deposit in the general fund of the Treasury, the portion of the sale price that the Sec- retary determines resulted from the enhancement of the value of the Moab site as a result of the remedial action. The enhanced value of the Moab site shall be equal to the difference between— ‘‘(A) the fair market value of the Moab site on the date of the enactment of the Floyd D. Spence Na- tional Defense Authorization Act for Fiscal Year 2001 [Oct. 30, 2000], based on information available on that date; and ‘‘(B) the fair market value of the Moab site, as ap- praised on completion of the remedial action. ‘‘(6)(A) Not later than October 1, 2019, the Secretary of Energy shall complete remediation at the Moab site and removal of the tailings to the Crescent Junction site in Utah. ‘‘(B) In the event the Secretary of Energy is unable to complete remediation at the Moab Site by October 1, 2019, the Secretary shall submit to Congress a plan setting forth the projected completion date and the es- timated funding to meet the revised date. The Sec- retary shall submit the plan, if required, to Congress not later than October 2, 2019. ‘‘SEC. 3406. ADMINISTRATION. ‘‘(a) PROTECTION OF EXISTING RIGHTS.—At the discre- tion of the Secretary of Energy, the disposal of prop- erty under this title shall be subject to any contract re- lated to the United States ownership interest in the property in effect at the time of disposal, including any lease agreement pertaining to the United States inter- est in Naval Petroleum Reserve Numbered 2. ‘‘(b) DEPOSIT OF RECEIPTS.—Notwithstanding any other law, all monies received by the United States from the disposal of property under this title, including any monies received from a lease entered into under this title, shall be deposited in the general fund of the Treasury. ‘‘(c) TREATMENT OF ROYALTIES.—Any petroleum ac- cruing to the United States as royalty from any lease of lands transferred under this title shall be delivered to the United States, or shall be paid for in money, as the Secretary of the Interior may elect. ‘‘(d) ELEMENTS OF LEASE.—A lease under this title may provide for the exploration for, and development and production of, petroleum, other than petroleum in the form of oil shale. ‘‘(e) WAIVER OF REQUIREMENTS REGARDING CONSULTA- TION AND APPROVAL.—Section 7431 [now 8731] of title 10, United States Code, shall not apply to the disposal of property under this title. ‘‘(f) OIL SHALE RESERVE NUMBERED 2.—This section does not apply to the transfer of Oil Shale Reserve Numbered 2 under section 3405.’’ Pub. L. 104–106, div. C, title XXXIV, subtitle B, Feb. 10, 1996, 110 Stat. 631, as amended by Pub. L. 106–65, div. A, title X, § 1067(6), Oct. 5, 1999, 113 Stat. 774; Pub. L. 113–291, div. A, title X, § 1071(b)(12), Dec. 19, 2014, 128 Stat. 3507, provided that: ‘‘SEC. 3411. DEFINITIONS. ‘‘For purposes of this subtitle: ‘‘(1) The terms ‘Naval Petroleum Reserve Numbered 1’ and ‘reserve’ mean Naval Petroleum Reserve Num- bered 1, commonly referred to as the Elk Hills Unit, located in Kern County, California, and established by Executive order of the President, dated September 2, 1912. ‘‘(2) The term ‘naval petroleum reserves’ has the meaning given that term in section 7420(2) [now 8720(2)] of title 10, United States Code, except that the term does not include Naval Petroleum Reserve Numbered 1. ‘‘(3) The term ‘unit plan contract’ means the unit plan contract between equity owners of the lands within the boundaries of Naval Petroleum Reserve Numbered 1 entered into on June 19, 1944. ‘‘(4) The term ‘effective date’ means the date of the enactment of this Act [Feb. 10, 1996]. ‘‘(5) The term ‘Secretary’ means the Secretary of Energy. ‘‘(6) The term ‘appropriate congressional commit- tees’ means the Committee on Armed Services of the Senate and the Committee on Armed Services and the Committee on Commerce [now Committee on En- ergy and Commerce] of the House of Representatives. ‘‘SEC. 3412. SALE OF NAVAL PETROLEUM RESERVE NUMBERED 1. ‘‘(a) SALE OF RESERVE REQUIRED.—Subject to section 3414, not later than two years after the effective date, the Secretary of Energy shall enter into one or more contracts for the sale of all right, title, and interest of the United States in and to all lands owned or con- trolled by the United States inside Naval Petroleum Reserve Numbered 1. Chapter 641 [now 869] of title 10, United States Code, shall not apply to the sale of the reserve. ‘‘(b) EQUITY FINALIZATION.—(1) Not later than eight months after the effective date, the Secretary shall fi- nalize equity interests of the known oil and gas zones in Naval Petroleum Reserve Numbered 1 in the manner provided by this subsection. ‘‘(2) The Secretary shall retain the services of an independent petroleum engineer, mutually acceptable to the equity owners, who shall prepare a recommenda- tion on final equity figures. The Secretary may accept the recommendation of the independent petroleum en- Page 3357 TITLE 10—ARMED FORCES § 8720 gineer for final equity in each known oil and gas zone and establish final equity interest in Naval Petroleum Reserve Numbered 1 in accordance with the rec- ommendation, or the Secretary may use such other method to establish final equity interest in the reserve as the Secretary considers appropriate. ‘‘(3) If, on the effective date, there is an ongoing eq- uity redetermination dispute between the equity own- ers under section 9(b) of the unit plan contract, the dis- pute shall be resolved in the manner provided in the unit plan contract within eight months after the effec- tive date. The resolution shall be considered final for all purposes under this section. ‘‘(c) NOTICE OF SALE.—Not later than two months after the effective date, the Secretary shall publish a notice of intent to sell Naval Petroleum Reserve Num- bered 1. The Secretary shall make all technical, geo- logical, and financial information relevant to the sale of the reserve available to all interested and qualified buyers upon request. The Secretary, in consultation with the Administrator of General Services, shall en- sure that the sale process is fair and open to all inter- ested and qualified parties. ‘‘(d) ESTABLISHMENT OF MINIMUM SALE PRICE.—(1) Not later than seven months after the effective date, the Secretary shall retain the services of five independent experts in the valuation of oil and gas fields to conduct separate assessments, in a manner consistent with commercial practices, of the value of the interest of the United States in Naval Petroleum Reserve Num- bered 1. The independent experts shall complete their assessments within 11 months after the effective date. In making their assessments, the independent experts shall consider (among other factors)— ‘‘(A) all equipment and facilities to be included in the sale; ‘‘(B) the estimated quantity of petroleum and nat- ural gas in the reserve; and ‘‘(C) the net present value of the anticipated rev- enue stream that the Secretary and the Director of the Office of Management and Budget jointly deter- mine the Treasury would receive from the reserve if the reserve were not sold, adjusted for any antici- pated increases in tax revenues that would result if the reserve were sold. ‘‘(2) The independent experts retained under para- graph (1) shall also determine and submit to the Sec- retary the estimated total amount of the cost of any environmental restoration and remediation necessary at the reserve. The Secretary shall report the estimate to the Director of the Office of Management and Budg- et, the Secretary of the Treasury, and Congress. ‘‘(3) The Secretary, in consultation with the Director of the Office of Management and Budget, shall set the minimum acceptable price for the reserve. The Sec- retary may not set the minimum acceptable price below the higher of— ‘‘(A) the average of the five assessments prepared under paragraph (1); and ‘‘(B) the average of three assessments after exclud- ing the high and low assessments. ‘‘(e) ADMINISTRATION OF SALE; DRAFT CONTRACT.—(1) Not later than two months after the effective date, the Secretary shall retain the services of an investment banker or an appropriate equivalent financial adviser to independently administer, in a manner consistent with commercial practices and in a manner that maxi- mizes sale proceeds to the Government, the sale of Naval Petroleum Reserve Numbered 1 under this sec- tion. Costs and fees of retaining the investment banker or financial adviser may be paid out of the proceeds of the sale of the reserve. ‘‘(2) Not later than 11 months after the effective date, the investment banker or financial adviser retained under paragraph (1) shall complete a draft contract or contracts for the sale of Naval Petroleum Reserve Numbered 1, which shall accompany the solicitation of offers and describe the terms and provisions of the sale of the interest of the United States in the reserve. ‘‘(3) The draft contract or contracts shall identify— ‘‘(A) all equipment and facilities to be included in the sale; and ‘‘(B) any potential claim or liability (including li- ability for environmental restoration and remedi- ation), and the extent of any such claim or liability, for which the United States is responsible under sub- section (g). ‘‘(4) The draft contract or contracts, including the terms and provisions of the sale of the interest of the United States in the reserve, shall be subject to review and approval by the Secretary, the Secretary of the Treasury, and the Director of the Office of Management and Budget. Each of those officials shall complete the review of, and approve or disapprove, the draft contract or contracts not later than 12 months after the effec- tive date. ‘‘(f) SOLICITATION OF OFFERS.—(1) Not later than 13 months after the effective date, the Secretary shall publish the solicitation of offers for Naval Petroleum Reserve Numbered 1. ‘‘(2) Not later than 18 months after the effective date, the Secretary shall identify the highest responsible offer or offers for purchase of the interest of the United States in Naval Petroleum Reserve Numbered 1 that, in total, meet or exceed the minimum acceptable price de- termined under subsection (d)(3). ‘‘(3) The Secretary shall take such action imme- diately after the effective date as is necessary to obtain from an independent petroleum engineer within 10 months after that date a reserve report prepared in a manner consistent with commercial practices. The Sec- retary shall use the reserve report in support of the preparation of the solicitation of offers for the reserve. ‘‘(g) FUTURE LIABILITIES.—To effectuate the sale of the interest of the United States in Naval Petroleum Reserve Numbered 1, the Secretary may extend such in- demnities and warranties as the Secretary considers reasonable and necessary to protect the purchaser from claims arising from the ownership in the reserve by the United States. ‘‘(h) MAINTAINING PRODUCTION.—Until the sale of Naval Petroleum Reserve Numbered 1 is completed under this section, the Secretary shall continue to produce the reserve at the maximum daily oil or gas rate from a reservoir, which will permit maximum eco- nomic development of the reservoir consistent with sound oil field engineering practices in accordance with section 3 of the unit plan contract. ‘‘(i) NONCOMPLIANCE WITH DEADLINES.—At any time during the two-year period beginning on the effective date, if the Secretary determines that the actions nec- essary to complete the sale of the reserve within that period are not being taken or timely completed, the Secretary shall transmit to the appropriate congres- sional committees a written notification of that deter- mination together with a plan setting forth the actions that will be taken to ensure that the sale of the reserve will be completed within that period. The Secretary shall consult with the Director of the Office of Manage- ment and Budget in preparing the plan for submission to the committees. ‘‘(j) OVERSIGHT.—The Comptroller General shall mon- itor the actions of the Secretary relating to the sale of the reserve and report to the appropriate congressional committees any findings on such actions that the Comptroller General considers appropriate to report to the committees. ‘‘(k) ACQUISITION OF SERVICES.—The Secretary may enter into contracts for the acquisition of services re- quired under this section under the authority of para- graph (7) of section 3304(a) of title 41, United States Code, except that the notification required under sub- paragraph (B) of such paragraph for each contract shall be submitted to Congress not less than 7 days before the award of the contract. ‘‘SEC. 3413. EFFECT OF SALE OF RESERVE. ‘‘(a) EFFECT ON EXISTING CONTRACTS.—(1) In the case of any contract, in effect on the effective date, for the purchase of production from any part of the United Page 3358 TITLE 10—ARMED FORCES § 8720 States’ share of Naval Petroleum Reserve Numbered 1, the sale of the interest of the United States in the re- serve shall be subject to the contract for a period of three months after the closing date of the sale or until termination of the contract, whichever occurs first. The term of any contract entered into after the effec- tive date for the purchase of the production shall not exceed the anticipated closing date for the sale of the reserve. ‘‘(2) The Secretary shall exercise the termination procedures provided in the contract between the United States and Bechtel Petroleum Operation, Inc., Contract Number DE–ACO1–85FE60520 so that the contract ter- minates not later than the date of closing of the sale of Naval Petroleum Reserve Numbered 1 under section 3412. ‘‘(3) The Secretary shall exercise the termination procedures provided in the unit plan contract so that the unit plan contract terminates not later than the date of closing of the sale of reserve. ‘‘(b) EFFECT ON ANTITRUST LAWS.—Nothing in this subtitle shall be construed to alter the application of the antitrust laws of the United States to the pur- chaser or purchasers (as the case may be) of Naval Pe- troleum Reserve Numbered 1 or to the lands in the re- serve subject to sale under section 3412 upon the com- pletion of the sale. ‘‘(c) PRESERVATION OF PRIVATE RIGHT, TITLE, AND IN- TEREST.—Nothing in this subtitle shall be construed to adversely affect the ownership interest of any other en- tity having any right, title, and interest in and to lands within the boundaries of Naval Petroleum Reserve Numbered 1 and which are subject to the unit plan con- tract. ‘‘(d) TRANSFER OF OTHERWISE NONTRANSFERABLE PER- MIT.—The Secretary may transfer to the purchaser or purchasers (as the case may be) of Naval Petroleum Re- serve Numbered 1 the incidental take permit regarding the reserve issued to the Secretary by the United States Fish and Wildlife Service and in effect on the ef- fective date if the Secretary determines that transfer of the permit is necessary to expedite the sale of the re- serve in a manner that maximizes the value of the sale to the United States. The transferred permit shall cover the identical activities, and shall be subject to the same terms and conditions, as apply to the permit at the time of the transfer. ‘‘SEC. 3414. CONDITIONS ON SALE PROCESS. ‘‘(a) NOTICE REGARDING SALE CONDITIONS.—The Sec- retary may not enter into any contract for the sale of Naval Petroleum Reserve Numbered 1 under section 3412 until the end of the 31-day period beginning on the date on which the Secretary submits to the appropriate congressional committees a written notification— ‘‘(1) describing the conditions of the proposed sale; and ‘‘(2) containing an assessment by the Secretary of whether it is in the best interests of the United States to sell the reserve under such conditions. ‘‘(b) AUTHORITY TO SUSPEND SALE.—(1) The Secretary may suspend the sale of Naval Petroleum Reserve Num- bered 1 under section 3412 if the Secretary and the Di- rector of the Office of Management and Budget jointly determine that— ‘‘(A) the sale is proceeding in a manner inconsistent with achievement of a sale price that reflects the full value of the reserve; or ‘‘(B) a course of action other than the immediate sale of the reserve is in the best interests of the United States. ‘‘(2) Immediately after making a determination under paragraph (1) to suspend the sale of Naval Petroleum Reserve Numbered 1, the Secretary shall submit to the appropriate congressional committees a written notifi- cation describing the basis for the determination and requesting a reconsideration of the merits of the sale of the reserve. ‘‘(c) EFFECT OF RECONSIDERATION NOTICE.—After the Secretary submits a notification under subsection (b), the Secretary may not complete the sale of Naval Pe- troleum Reserve Numbered 1 under section 3412 or any other provision of law unless the sale of the reserve is authorized in an Act of Congress enacted after the date of the submission of the notification. ‘‘SEC. 3415. TREATMENT OF STATE OF CALIFORNIA CLAIM REGARDING RESERVE. ‘‘(a) RESERVATION OF FUNDS.—After the costs in- curred in the conduct of the sale of Naval Petroleum Reserve Numbered 1 under section 3412 are deducted, nine percent of the remaining proceeds from the sale of the reserve shall be reserved in a contingent fund in the Treasury for payment to the State of California for the Teachers’ Retirement Fund of the State in the event that, and to the extent that, the claims of the State against the United States regarding production and proceeds of sale from Naval Petroleum Reserve Num- bered 1 are— ‘‘(1) settled by agreement with the United States under subsection (c); or ‘‘(2) finally resolved in favor of the State by a court of competent jurisdiction, if a settlement agreement is not reached. ‘‘(b) DISPOSITION OF FUNDS.—In such amounts as may be provided in appropriation Acts, amounts in the con- tingent fund shall be available for paying a claim de- scribed in subsection (a). After final disposition of the claims, any unobligated balance in the contingent fund shall be credited to the general fund of the Treasury. If no payment is made from the contingent fund within 10 years after the effective date, amounts in the contin- gent fund shall be credited to the general fund of the Treasury. ‘‘(c) SETTLEMENT OFFER.—Not later than 30 days after the date of the sale of Naval Petroleum Reserve Num- bered 1 under section 3412, the Secretary shall offer to settle all claims of the State of California against the United States with respect to lands in the reserve lo- cated in sections 16 and 36 of township 30 south, range 23 east, Mount Diablo Principal Meridian, California, and production or proceeds of sale from the reserve, in order to provide proper compensation for the State’s claims. The Secretary shall base the amount of the of- fered settlement payment from the contingent fund on the fair value for the State’s claims, including the min- eral estate, not to exceed the amount reserved in the contingent fund. ‘‘(d) RELEASE OF CLAIMS.—Acceptance of the settle- ment offer made under subsection (c) shall be subject to the condition that all claims against the United States by the State of California for the Teachers’ Re- tirement Fund of the State be released with respect to lands in Naval Petroleum Reserve Numbered 1, includ- ing sections 16 and 36 of township 30 south, range 23 east, Mount Diablo Principal Meridian, California, or production or proceeds of sale from the reserve. ‘‘SEC. 3416. STUDY OF FUTURE OF OTHER NAVAL PETROLEUM RESERVES. ‘‘(a) STUDY REQUIRED.—The Secretary of Energy shall conduct a study to determine which of the following options, or combinations of options, regarding the naval petroleum reserves (other than Naval Petroleum Reserve Numbered 1) would maximize the value of the reserves to the United States: ‘‘(1) Retention and operation of the naval petro- leum reserves by the Secretary under chapter 641 [now 869] of title 10, United States Code. ‘‘(2) Transfer of all or a part of the naval petroleum reserves to the jurisdiction of another Federal agency for administration under chapter 641 [now 869] of title 10, United States Code. ‘‘(3) Transfer of all or a part of the naval petroleum reserves to the Department of the Interior for leasing in accordance with the Mineral Leasing Act (30 U.S.C. 181 et seq.) and surface management in accordance with the Federal Land Policy and Management Act [of 1976] (43 U.S.C. 1701 et seq.). ‘‘(4) Sale of the interest of the United States in the naval petroleum reserves. Page 3359 TITLE 10—ARMED FORCES § 8722 ‘‘(b) CONDUCT OF STUDY.—The Secretary shall retain an independent petroleum consultant to conduct the study. ‘‘(c) CONSIDERATIONS UNDER STUDY.—An examination of the value to be derived by the United States from the transfer or sale of the naval petroleum reserves shall include an assessment and estimate of the fair market value of the interest of the United States in the naval petroleum reserves. The assessment and estimate shall be made in a manner consistent with customary property valuation practices in the oil and gas indus- try. ‘‘(d) REPORT AND RECOMMENDATIONS REGARDING STUDY.—Not later than June 1, 1996, the Secretary shall submit to Congress a report describing the results of the study and containing such recommendations (in- cluding proposed legislation) as the Secretary considers necessary to implement the option, or combination of options, identified in the study that would maximize the value of the naval petroleum reserves to the United States.’’ § 8721. Jurisdiction and control (a) The Secretary shall take possession of all properties inside the naval petroleum reserves that are or may become subject to the control of and use by the United States for national de- fense purposes, except as otherwise provided in this chapter. (b) The Secretary has exclusive jurisdiction and control over those lands inside Naval Petro- leum Reserves Numbered 1 and 2 that are cov- ered by leases granted under sections 181–184, 185–188, 189–194, 201, 202–209, 211–214, 223, 224–226, 226d, 226e, 227–229a, 241, 251, and 261–263 of title 30, and shall administer those leases. (Aug. 10, 1956, ch. 1041, 70A Stat. 457, § 7421; Pub. L. 87–796, § 1(1), Oct. 11, 1962, 76 Stat. 904; Pub. L. 94–258, title II, § 201(2), Apr. 5, 1976, 90 Stat. 307; Pub. L. 98–525, title XIV, § 1405(50), Oct. 19, 1984, 98 Stat. 2625; renumbered § 8721, Pub. L. 115–232, div. A, title VIII, § 807(d)(5), Aug. 13, 2018, 132 Stat. 1836.) HISTORICAL AND REVISION NOTES Revised section Source (U.S. Code) Source (Statutes at Large) 7421(a) ..... 34 U.S.C. 524 (1st 36 words of 1st par.). June 4, 1920, ch. 228 (1st par., 1st 36 words, of amended 3d and 4th provisos), 41 Stat. 813; June 30, 1938, ch. 851, § 1, 52 Stat. 1253; June 17, 1944, ch. 262, 58 Stat. 280. 7421(b) ..... 34 U.S.C. 524 (293d word to end of 1st par.). June 4, 1920, ch. 228 (1st par., 294th word to end, of amended 3d and 4th provisos), 41 Stat. 813; June 30, 1938, ch. 851, § 1, 52 Stat. 1252; June 17, 1944, ch. 262, 58 Stat. 280. 34 U.S.C. 524a. Feb. 25, 1928, ch. 104, 45 Stat. 148. In subsection (b) the reference to the transfer of ju- risdiction and administration is omitted as executed. Editorial Notes REFERENCES IN TEXT Section 194 of title 30, referred to in subsec. (b), was repealed by Pub. L. 89–554, § 8(a), Sept. 6, 1966, 80 Stat. 644. Section 204 of title 30, included within the reference to sections 202–209 in subsec. (b), was repealed by Pub. L. 94–377, § 13(a), Aug. 4, 1976, 90 Stat. 1090, subject to valid existing rights. Sections 226d and 226e of title 30, referred to in sub- sec. (b), were omitted from the Code. See section 226 of Title 30, Mineral Lands and Mining. Section 227 of title 30, referred to in subsec. (b), was omitted from the Code. PRIOR PROVISIONS A prior section 8721, acts Aug. 10, 1956, ch. 1041, 70A Stat. 538; Sept. 2, 1958, Pub. L. 85–861, § 1(190)(A), 72 Stat. 1534, related to hospital benefits for members of Air Force, other than of Regular Air Force, prior to repeal by Pub. L. 99–661, div. A, title VI, § 604(f)(1)(A), Nov. 14, 1986, 100 Stat. 3877. AMENDMENTS 2018—Pub. L. 115–232 renumbered section 7421 of this title as this section. 1984—Subsec. (b). Pub. L. 98–525 substituted ‘‘Naval Petroleum Reserves Numbered’’ for ‘‘naval petroleum reserves numbered’’. 1976—Subsec. (a). Pub. L. 94–258 struck out ‘‘of the Navy’’ after ‘‘Secretary’’, ‘‘and oil shale’’ after ‘‘naval petroleum’’, and substituted ‘‘for national defense pur- poses’’ for ‘‘for naval purposes’’, and ‘‘this chapter’’ for ‘‘section 7438 hereof’’. 1962—Subsec. (a). Pub. L. 87–796 empowered the Sec- retary to take possession of all properties inside the oil shale reserves, and inserted the exception clause. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Amendment by Pub. L. 115–232 effective Feb. 1, 2019, with provision for the coordination of amendments and special rule for certain redesignations, see section 800 of Pub. L. 115–232, set out as a note preceding section 3001 of this title. § 8722. Administration (a) The Secretary, directly or by contract, lease, or otherwise, shall explore, prospect, con- serve, develop, use, and operate the naval petro- leum reserves in his discretion, subject to the provisions of subsection (c) and the other provi- sions of this chapter; except that no petroleum leases shall be granted at Naval Petroleum Re- serves Numbered 1 and 3. (b) Except as otherwise provided in this chap- ter, particularly subsection (c), the naval petro- leum reserves shall be used and operated for— (1) the protection, conservation, mainte- nance, 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 pro- duction is needed for national defense pur- poses and the production is authorized by a joint resolution of Congress. (c)(1) In administering Naval Petroleum Re- serves Numbered 1, 2, and 3, the Secretary is au- thorized and directed— (A) to further explore, develop, and operate such reserves; (B) to produce, during any extension of a pe- riod under paragraph (2), such reserves— (i) at the maximum efficient rate con- sistent with sound engineering practices; or (ii) at a lesser rate consistent with sound engineering practices and the protection, conservation, maintenance, and testing of such reserves if the Secretary determines that the minimum price described in section 8730(b)(2) of this title cannot be attained for