30 U.S.C. § 1017 — Unit and communitization agreements

Page 221 TITLE 30—MINERAL LANDS AND MINING § 1017 Editorial Notes REFERENCES IN TEXT The Act of August 25, 1916 (39 Stat. 535), referred to in subsec. (c), is act Aug. 25, 1916, ch. 408, 39 Stat. 535, known as the National Park Service Organic Act, which enacted sections 1, 2, 3, and 4 of Title 16, Con- servation, and provisions set out as a note under sec- tion 100101 of Title 54, National Park Service and Re- lated Programs. Sections 1 to 4 of the Act were re- pealed and restated as section 1865(a) of Title 18, Crimes and Criminal Procedure, and section 100101(a), chapter 1003, and sections 100751(a), 100752, 100753, and 102101 of Title 54 by Pub. L. 113–287, §§ 3, 4(a)(1), 7, Dec. 19, 2014, 128 Stat. 3094, 3260, 3272. For complete classification of this Act to the Code, see Tables. For disposition of former sections of this title, see Disposition Table pre- ceding section 100101 of Title 54. AMENDMENTS 2005—Pub. L. 109–58 inserted section catchline. Statutory Notes and Related Subsidiaries TRANSFER OF FUNCTIONS ‘‘Secretary of Energy’’ substituted for ‘‘Federal Power Commission’’ in subsec. (b) pursuant to sections 301(b), 703, and 707 of Pub. L. 95–91, which are classified to sections 7151(b), 7293, and 7297 of Title 42, The Public Health and Welfare, and which terminated the Federal Power Commission and transferred its functions (with certain exceptions) to the Secretary of Energy. § 1015. Requirement for lessees Leases under this chapter may be issued only to citizens of the United States, associations of such citizens, corporations organized under the laws of the United States or of any State or the District of Columbia, or governmental units, in- cluding, without limitation, municipalities. (Pub. L. 91–581, § 16, Dec. 24, 1970, 84 Stat. 1571; Pub. L. 109–58, title II, § 236(16), Aug. 8, 2005, 119 Stat. 672.) Editorial Notes AMENDMENTS 2005—Pub. L. 109–58 inserted section catchline. § 1016. Administration Administration of this chapter shall be under the principles of multiple use of lands and re- sources, and geothermal leases shall, insofar as feasible, allow for coexistence of other leases of the same lands for deposits of minerals under the laws applicable to them, for the location and production of claims under the mining laws, and for other uses of the areas covered by them. Op- erations under such other leases or for such other uses, however, shall not unreasonably interfere with or endanger operations under any lease issued pursuant to this chapter, nor shall operations under leases so issued unreasonably interfere with or endanger operations under any lease, license, claim, or permit issued pursuant to the provisions of any other Act. (Pub. L. 91–581, § 17, Dec. 24, 1970, 84 Stat. 1571; Pub. L. 109–58, title II, § 236(17), Aug. 8, 2005, 119 Stat. 672.) Editorial Notes AMENDMENTS 2005—Pub. L. 109–58 inserted section catchline. § 1017. Unit and communitization agreements (a) Adoption of units by lessees (1) In general For the purpose of more properly conserving the natural resources of any geothermal res- ervoir, field, or like area, or any part thereof (whether or not any part of the geothermal reservoir, field, or like area, is subject to any cooperative plan of development or operation (referred to in this section as a ‘‘unit agree- ment’’)), lessees thereof and their representa- tives may unite with each other, or jointly or separately with others, in collectively adopt- ing and operating under a unit agreement for the reservoir, field, or like area, or any part thereof, including direct use resources, if de- termined and certified by the Secretary to be necessary or advisable in the public interest. (2) Majority interest of single leases A majority interest of owners of any single lease shall have the authority to commit the lease to a unit agreement. (3) Initiative of Secretary The Secretary may also initiate the forma- tion of a unit agreement, or require an exist- ing Federal lease to commit to a unit agree- ment, if in the public interest. (4) Modification of lease requirements by Sec- retary (A) In general The Secretary may, in the discretion of the Secretary and with the consent of the holders of leases involved, establish, alter, change, or revoke rates of operations (in- cluding drilling, operations, production, and other requirements) of the leases and make conditions with respect to the leases, with the consent of the lessees, in connection with the creation and operation of any such unit agreement as the Secretary may con- sider necessary or advisable to secure the protection of the public interest. (B) Unlike terms or rates Leases with unlike lease terms or royalty rates shall not be required to be modified to be in the same unit. (b) Requirement of plans under new leases The Secretary may— (1) provide that geothermal leases issued under this chapter shall contain a provision requiring the lessee to operate under a unit agreement; and (2) prescribe the unit agreement under which the lessee shall operate, which shall ade- quately protect the rights of all parties in in- terest, including the United States. (c) Modification of rate of prospecting, develop- ment, and production The Secretary may require that any unit agreement authorized by this section that ap- plies to land owned by the United States contain a provision under which authority is vested in the Secretary, or any person, committee, or State or Federal officer or agency as may be designated in the unit agreement to alter or Page 222 TITLE 30—MINERAL LANDS AND MINING § 1018 modify, from time to time, the rate of prospecting and development and the quantity and rate of production under the unit agree- ment. (d) Exclusion from determination of holding or control Any land that is subject to a unit agreement approved or prescribed by the Secretary under this section shall not be considered in deter- mining holdings or control under section 1006 of this title. (e) Pooling of certain land If separate tracts of land cannot be independ- ently developed and operated to use geothermal resources pursuant to any section of this chap- ter— (1) the land, or a portion of the land, may be pooled with other land, whether or not owned by the United States, for purposes of develop- ment and operation under a communitization agreement providing for an apportionment of production or royalties among the separate tracts of land comprising the production unit, if the pooling is determined by the Secretary to be in the public interest; and (2) operation or production pursuant to the communitization agreement shall be treated as operation or production with respect to each tract of land that is subject to the communitization agreement. (f) Unit agreement review (1) In general Not later than 5 years after the date of ap- proval of any unit agreement and at least every 5 years thereafter, the Secretary shall— (A) review each unit agreement; and (B) after notice and opportunity for com- ment, eliminate from inclusion in the unit agreement any land that the Secretary de- termines is not reasonably necessary for unit operations under the unit agreement. (2) Basis for elimination The elimination shall— (A) be based on scientific evidence; and (B) occur only if the elimination is deter- mined by the Secretary to be for the purpose of conserving and properly managing the geothermal resource. (3) Extension Any land eliminated under this subsection shall be eligible for an extension under section 1005(g) of this title if the land meets the re- quirements for the extension. (g) Drilling or development contracts (1) In general The Secretary may, on such conditions as the Secretary may prescribe, approve drilling or development contracts made by one or more lessees of geothermal leases, with one or more persons, associations, or corporations if, in the discretion of the Secretary, the con- servation of natural resources or the public convenience or necessity may require or the interests of the United States may be best served by the approval. (2) Holdings or control Each lease operated under an approved drill- ing or development contract, and interest under the contract, shall be excepted in deter- mining holdings or control under section 1006 of this title. (h) Coordination with State governments The Secretary shall coordinate unitization and pooling activities with appropriate State agencies. (Pub. L. 91–581, § 18, Dec. 24, 1970, 84 Stat. 1571; Pub. L. 100–443, § 4, Sept. 22, 1988, 102 Stat. 1768; Pub. L. 109–58, title II, § 227, Aug. 8, 2005, 119 Stat. 666.) Editorial Notes AMENDMENTS 2005—Pub. L. 109–58 inserted section catchline and amended text generally. Prior to amendment, text re- lated to cooperative or unit plan of development or op- eration of geothermal pool, field, or like area, public interest, determination and certification, regulations, protection of parties in interest, authority respecting rate of prospecting, development, and production, five year review, and leases excepted from control for pur- poses of State acreage limitation. 1988—Pub. L. 100–443, § 4, inserted provisions relating to five year review of plans and elimination of leases from plans. § 1018. Data from Federal agencies Upon request of the Secretary, other Federal departments and agencies shall furnish him with any relevant data then in their possession or knowledge concerning or having bearing upon fair and adequate charges to be made for geo- thermal steam produced or to be produced for conversion to electric power or other purposes. Data given to any department or agency as con- fidential under law shall not be furnished in any fashion which identifies or tends to identify the business entity whose activities are the subject of such data or the person or persons who fur- nished such information. (Pub. L. 91–581, § 19, Dec. 24, 1970, 84 Stat. 1572; Pub. L. 109–58, title II, § 236(18), Aug. 8, 2005, 119 Stat. 673.) Editorial Notes AMENDMENTS 2005—Pub. L. 109–58 inserted section catchline. § 1019. Disposal of moneys from sales, bonuses, rentals, and royalties (a) In general Except with respect to lands in the State of Alaska, all monies received by the United States from sales, bonuses, rentals, and royalties under this chapter shall be paid into the Treasury of the United States. Of amounts deposited under this subsection, subject to the provisions of sub- section (b) of section 191 of this title and section 1004(a)(2) of this title— (1) 50 percent shall be paid to the State with- in the boundaries of which the leased lands or geothermal resources are or were located; and (2) 25 percent shall be paid to the county within the boundaries of which the leased lands or geothermal resources are or were lo- cated.