10 U.S.C. § 8722 — Administration

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 Page 3360 TITLE 10—ARMED FORCES § 8722 the United States share of petroleum (other than natural gas liquids) produced from such Reserves; (C) during such production period or any ex- tension thereof to sell or otherwise dispose of the United States share of such petroleum pro- duced from such reserves as provided in sec- tion 8730 of this title; and (D) to construct, acquire, or contract for the use of storage and shipping facilities on and off the reserves and pipelines and associated facilities on and off the reserves for trans- porting petroleum from such reserves to the points where the production from such re- serves will be refined or shipped. Any pipeline in the vicinity of a naval petro- leum reserve not otherwise operated as a com- mon carrier may be acquired by the Secretary by condemnation, if necessary, if the owner thereof refuses to accept, convey, and transport without discrimination and at reasonable rates any petroleum produced at such reserve. With the approval of the Secretary, rights-of-way for new pipelines and associated facilities may be acquired by the exercise of the right of eminent domain in the appropriate United States district court. Such rights-of-way may be acquired in the manner set forth in sections 3114–3116 and 3118 of title 40, and the prospective holder of the right-of-way is ‘‘the authority empowered by law to acquire the land’’ within the meaning of those sections. Such new pipelines shall accept, convey, and transport without discrimination and at reasonable rates any petroleum produced at such reserves as a common carrier. (2) After April 5, 1982, the President may ex- tend the period of production in the case of any naval petroleum reserve for additional periods of not to exceed three years each— (A) after the President requires an investiga- tion to be made, in the case of each extension, to determine the necessity for continued pro- duction from such naval petroleum reserve; (B) after the President submits to the Con- gress, at least 180 days before the expiration of the current production period prescribed by this section, or any extension thereof, a copy of the report made to him on such investiga- tion together with a certification by him that continued production from such naval petro- leum reserve is in the national interest; and (C) if neither House of Congress within nine- ty days after receipt of such report and certifi- cation adopts a resolution disapproving fur- ther production from such naval petroleum re- serve. (Aug. 10, 1956, ch. 1041, 70A Stat. 458, § 7422; Pub. L. 87–599, § 1, Aug. 24, 1962, 76 Stat. 401; Pub. L. 87–796, § 1(2), Oct. 11, 1962, 76 Stat. 904; Pub. L. 94–258, title II, § 201(3), Apr. 5, 1976, 90 Stat. 307; Pub. L. 96–137, § 3(a), Dec. 12, 1979, 93 Stat. 1061; Pub. L. 96–513, title V, § 513(31), Dec. 12, 1980, 94 Stat. 2933; Pub. L. 98–525, title XIV, § 1405(51), Oct. 19, 1984, 98 Stat. 2625; Pub. L. 99–413, § 1(a), Aug. 29, 1986, 100 Stat. 944; Pub. L. 100–202, § 101(g) [title II, § 201], Dec. 22, 1987, 101 Stat. 1329–213, 1329–242; Pub. L. 101–189, div. A, title XVI, § 1622(f)(2), Nov. 29, 1989, 103 Stat. 1605; Pub. L. 107–217, § 3(b)(30), Aug. 21, 2002, 116 Stat. 1297; Pub. L. 108–178, § 4(b)(6), Dec. 15, 2003, 117 Stat. 2641; renumbered § 8722 and amended Pub. L. 115–232, div. A, title VIII, §§ 807(d)(5), 809(a), Aug. 13, 2018, 132 Stat. 1836, 1840.) HISTORICAL AND REVISION NOTES Revised section Source (U.S. Code) Source (Statutes at Large) 7422 ......... 34 U.S.C. 524 (1st par., 37th through 62d words, and 123d through 185th words). June 4, 1920, ch. 228 (1st par., 37th through 62d words, and 123d through 185th words, 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. Editorial Notes PRIOR PROVISIONS Section 8722, acts Aug. 10, 1956, ch. 1041, 70A Stat. 539; Sept. 2, 1958, Pub. L. 85–861, § 1(190)(B), (C), 72 Stat. 1534, related to hospital and related benefits for members of a Citizens’ Air Training Camp and for members of Air Force not covered by former section 8721 of this title, 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, § 807(d)(5), renumbered section 7422 of this title as this section. Subsec. (c)(1)(B)(ii). Pub. L. 115–232, § 809(a), sub- stituted ‘‘section 8730(b)(2)’’ for ‘‘section 7430(b)(2)’’. Subsec. (c)(1)(C). Pub. L. 115–232, § 809(a), substituted ‘‘section 8730’’ for ‘‘section 7430’’. 2003—Subsec. (c)(1). Pub. L. 108–178 substituted ‘‘land’ within the meaning of those sections’’ for ‘‘lands’ with- in the meaning of that Act’’ in concluding provisions. 2002—Subsec. (c)(1). Pub. L. 107–217 substituted ‘‘sec- tions 3114–3116 and 3118 of title 40’’ for ‘‘the Act of Feb- ruary 26, 1931 (40 U.S.C. 258a–258e)’’ in concluding provi- sions. 1989—Subsec. (c)(2)(B). Pub. L. 101–189 substituted ‘‘180 days before’’ for ‘‘one hundred eighty days prior to’’. 1987—Subsec. (c)(1)(B)(ii). Pub. L. 100–202 inserted ‘‘(other than natural gas liquids)’’ after ‘‘petroleum’’. 1986—Subsec. (c)(1)(B). Pub. L. 99–413, § 1(a)(1), added subpar. (B) and struck out former subpar. (B) which read as follows: ‘‘to produce such reserves at the max- imum efficient rate consistent with sound engineering practices for a period ending not later than April 5, 1982;’’. Subsec. (c)(3). Pub. L. 99–413, § 1(a)(2), struck out par. (3) which conditioned the production authorization for Naval Petroleum Reserve Numbered 1 upon private owners’ agreements with the Secretary to continue op- erations of such reserve under a unitized plan contract that protected the public interest. 1984—Subsec. (b). Pub. L. 98–525 struck out ‘‘of this section’’ after ‘‘subsection (c)’’ in provisions preceding par. (1). 1980—Subsec. (c)(1). Pub. L. 96–513, § 513(31)(A)–(D), in cl. (B) substituted provisions respecting termination on April 5, 1982, for provisions respecting commencement and termination, respectively, ninety days after date of enactment of the Naval Petroleum Reserves Production Act of 1976, and not to exceed six years after such date, in cl. (C) substituted ‘‘provided in section 7430 of this title’’ for ‘‘hereinafter provided’’, and in text following cl. (D) substituted ‘‘discrimination’’ for ‘‘discrimiation’’, and ‘‘(40 U.S.C. 258a–258e)’’ for ‘‘, chapter 307 (46 Stat. 1421; 40 U.S.C. 258(a))’’. Subsec. (c)(2). Pub. L. 96–513, § 513(31)(E), substituted ‘‘After April 5, 1982,’’ for ‘‘At the conclusion of the six- year production period authorized by paragraph (1)(B) of this subsection’’. Subsec. (c)(3). Pub. L. 96–513, § 513(31)(F), substituted ‘‘by July 4, 1976’’ for ‘‘within ninety days after the date Page 3361 TITLE 10—ARMED FORCES § 8724 of enactment of the Naval Petroleum Reserves Produc- tion Act of 1976’’. 1979—Subsec. (c)(1). Pub. L. 96–137 struck out in text following subpar. (D), provision requiring that pipelines and associated facilities constructed at or procured for Naval Petroleum Reserve Numbered 1 pursuant to this subsection have adequate capacity to accommodate not less than three hundred fifty thousand barrels of oil per day and be fully operable as soon as possible, but not later than three years after the date of enactment of the Naval Petroleum Reserves Production Act of 1976. 1976—Subsec. (a). Pub. L. 94–258 substituted provi- sions authorizing the Secretary to explore, etc., the naval petroleum reserves in his discretion, subject to subsec. (c) of this section and this chapter and except- ing specified Reserves from leasing arrangements, for provisions authorizing the Secretary of the Navy, ex- cept as provided in section 7438 hereof, to explore, etc., the naval petroleum preserves and oil shale reserves in his discretion, subject to Presidential approval. Subsec. (b). Pub. L. 94–258 in introductory cl. sub- stituted provisions authorizing use and operation of naval petroleum reserves except as otherwise provided in this chapter and in particular subsec. (c) of this sec- tion, for provisions authorizing use and operation of naval petroleum and oil shale reserves and lands out- side naval petroleum reserve numbered 1 covered by contracts under section 7426 of this title and in cl. (2) struck out reference to gas, oil shale and products thereof. Subsec. (c). Pub. L. 94–258 substituted provisions set- ting forth manner of administration by Secretary of Naval Petroleum Reserves Numbered 1, 2, and 3, au- thorizing President to extend period of production of any naval petroleum reserve, and conditioning produc- tion authorization for Reserve Numbered 1, for provi- sions authorizing the Secretary to develop naval petro- leum reserve numbered 4, South Barrow gas field, and to supply gas to government installations at or near Point Barrow and to the native village of Barrow. 1962—Subsec. (a). Pub. L. 87–796 substituted ‘‘Except as otherwise provided in section 7438 hereof, the Sec- retary’’ for ‘‘The Secretary’’, and included oil shale re- serves. Subsec. (b). Pub. L. 87–796 included oil shale reserves in the opening provisions, and substituted ‘‘petroleum, gas, oil shale and products thereof whenever’’ for ‘‘pe- troleum whenever’’ in cl. (2). Subsec. (c). Pub. L. 87–599 added subsec. (c). 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 2003 AMENDMENT Amendment by Pub. L. 108–178 effective Aug. 21, 2002, see section 5 of Pub. L. 108–178, set out as a note under section 5334 of Title 5, Government Organization and Employees. 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. AVAILABILITY OF REVENUES FROM SALE OF NATURAL GAS FOR USE IN GAS PROTECTION ACTIVITY Pub. L. 101–512, title II, Nov. 5, 1990, 104 Stat. 1947, provided in part: ‘‘That, notwithstanding any other provision of law, revenues received from the sale of natural gas after the date of enactment of this Act [Nov. 5, 1990] from wells drilled or communitized in fis- cal year 1990 and thereafter as part of gas protection activity at the Naval Oil Shale Reserves shall be depos- ited in this account, to remain available until ex- pended, for use in further gas protection activity’’. CONNECTIONS TO PIPELINE IN SOUTH BARROW GAS FIELD Pub. L. 87–599, § 3, Aug. 24, 1962, 76 Stat. 401, provided that: ‘‘The Federal agency or agencies in control of any pipeline between gas wells in the South Barrow gas field and the town of Barrow may authorize purchasers of the gas or carriers of the gas to install connections to such pipeline.’’ § 8723. Periodic re-examination of production re- quirements The Secretary shall from time to time reex- amine the need for the production of petroleum from oil shale for national defense when that production is authorized under section 8722 of this title. If he finds that the authorized quan- tity is no longer needed, he shall reduce produc- tion to the amount currently needed for na- tional defense. (Aug. 10, 1956, ch. 1041, 70A Stat. 458, § 7423; Pub. L. 87–796, § 1(3), Oct. 11, 1962, 76 Stat. 904; Pub. L. 94–258, title II, § 201(4), Apr. 5, 1976, 90 Stat. 309; renumbered § 8723 and amended Pub. L. 115–232, div. A, title VIII, §§ 807(d)(5), 809(a), Aug. 13, 2018, 132 Stat. 1836, 1840.) HISTORICAL AND REVISION NOTES Revised section Source (U.S. Code) Source (Statutes at Large) 7423 ......... 34 U.S.C. 524 (186th through 243d words of 1st par.). June 4, 1920, ch. 228 (1st par., 186th through 243d words, 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. Editorial Notes PRIOR PROVISIONS A prior section 8723 was renumbered section 9263 of this title. AMENDMENTS 2018—Pub. L. 115–232, § 809(a), substituted ‘‘section 8722’’ for ‘‘section 7422’’. Pub. L. 115–232, § 807(d)(5), renumbered section 7423 of this title as this section. 1976—Pub. L. 94–258 struck out ‘‘of the Navy’’ after ‘‘Secretary’’ and ‘‘or products’’ after ‘‘petroleum’’. 1962—Pub. L. 87–796 directed the Secretary to re- examine, from time to time, the need for production of products from oil shale. 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. § 8724. Protection of oil reserves; contracts for conservation (a) To consolidate and protect the oil lands owned by the United States, the Secretary may— (1) contract with owners and lessees of land inside or adjoining naval petroleum reserves for—