30 U.S.C. § 228 — Prospecting permits and leases to persons

Page 82 TITLE 30—MINERAL LANDS AND MINING §§ 226a, 226b 1 See References in Text note below. seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under sec- tion 1001 of this title and Tables. AMENDMENTS 1988—Subsec. (a). Pub. L. 100–443, § 5(c)(1), inserted ‘‘or under the Geothermal Steam Act of 1970’’ after ‘‘under this chapter’’ and directed that ‘‘oil and gas’’ be strick- en which was executed by striking those words where they appeared after ‘‘not issue any’’ in introductory provisions, but not where they appeared in par. (3) as the probable intent of Congress. Subsec. (b). Pub. L. 100–443, § 5(c)(2), inserted ‘‘, coal, oil shale, phosphate, potassium, sulphur, gilsonite or geothermal resources’’ after ‘‘oil and gas’’. §§ 226a, 226b. Repealed. Aug. 8, 1946, ch. 916, § 14, 60 Stat. 958 Section 226a, act July 8, 1940, ch. 548, 54 Stat. 742, re- lated to lease of lands not within known productive field. See section 226 of this title. Section 226b, acts July 29, 1942, ch. 534, § 1, 56 Stat. 726; Dec. 22, 1943, ch. 376, 57 Stat. 608; Sept. 27, 1944, ch. 429, 58 Stat. 755; Nov. 30, 1945, ch. 495, 59 Stat. 587, re- lated to preference right to new oil and gas lease upon expiration of five-year non-competitive oil and gas lease. See section 226 of this title. Statutory Notes and Related Subsidiaries SAVINGS PROVISION See note set out under section 181 of this title. § 226c. Reduction of royalties under existing leases From and after August 8, 1946, the royalty ob- ligation to the United States under all leases re- quiring payment of royalty in excess of 121⁄2 per centum, except leases issued or to be issued upon competitive bidding, is reduced to 121⁄2 per centum in amount or value of production re- moved or sold from said leases as to (1) such leases, or such part of the lands subject thereto, and the deposits underlying the same, as are not believed to be within the productive limits of any oil or gas deposit, as such productive limits are found by the Secretary to exist on August 8, 1946, and (2) any production on a lease from an oil or gas deposit which was discovered after May 27, 1941, by a well or wells drilled within the boundaries of the lease, and which is determined by the Secretary to be a new deposit; and (3) any production on or allocated to a lease pursuant to an approved unit or cooperative agreement from an oil or gas deposit which was discovered after May 27, 1941, on land committed to such agree- ment, and which is determined by the Secretary to be a new deposit, where such lease was in- cluded in such agreement at the time of dis- covery, or was included in a duly executed and filed application for the approval of such agree- ment at the time of discovery. (Aug. 8, 1946, ch. 916, § 12, 60 Stat. 957.) Editorial Notes CODIFICATION Section was not enacted as part of act Feb. 25, 1920, ch. 85, 41 Stat. 437, known as the Mineral Leasing Act, which comprises this chapter. Statutory Notes and Related Subsidiaries SAVINGS PROVISION See note set out under section 181 of this title. OUTER CONTINENTAL SHELF; REFUNDS ON MINERAL- LEASE PAYMENTS Refunds of excess payments with respect to oil, gas, and other leases on submerged lands of outer Conti- nental Shelf, see section 1339 of Title 43, Public Lands. §§ 226d, 226e. Omitted Editorial Notes CODIFICATION Sections were completely amended by Pub. L. 86–705, § 2, Sept. 2, 1960, 74 Stat. 781, and included in section 17 of Mineral Leasing Act of Feb. 25, 1920, classified to sec- tion 226 of this title. Section 226d, act Feb. 25, 1920, ch. 85, § 17a, as added Aug. 8, 1946, ch. 916, § 4, 60 Stat. 952, provided for the ex- change of leases and fixed royalty rates for new leases. Section 226e, act Feb. 25, 1920, ch. 85, § 17b, as added Aug. 8, 1946, ch. 916, § 5, 60 Stat. 952; amended July 29, 1954, ch. 644, § 1(4), (5), 68 Stat. 585, permitted establish- ment of cooperative or unit plans, setting up proce- dures for regulating production, approving contracts and preventing waste. § 227. Omitted Editorial Notes CODIFICATION Section, acts Feb. 25, 1920, ch. 85, § 18, 41 Stat. 443; Feb. 25, 1928, ch. 104, 45 Stat. 148, authorized the United States to issue leases for a period of twenty years to persons who relinquished all rights claimed or pos- sessed prior to July 3, 1910 under preexisting placer mining law provided relinquishment was filed in the General Land Office within six months after Feb. 25, 1920. § 228. Prospecting permits and leases to persons of lands not withdrawn; terms and condi- tions of; fraud of claimants Any person who on October 1, 1919, was a bona fide occupant or claimant of oil or gas lands under a claim initiated while such lands were not withdrawn from oil or gas location and entry, and who had previously performed all acts under then existing laws necessary to valid locations thereof except to make discovery, and upon which discovery had not been made prior to February 25, 1920, and who has performed work or expended on or for the benefit of such locations an amount equal in the aggregate of $250 for each location if application therefor shall be made within six months from February 25, 1920, shall be entitled to prospecting permits thereon upon the same terms and conditions, and limitations as to acreage, as other permits provided for in this chapter, or where any such person has made such discovery, prior to said February 25, 1920, he shall be entitled to a lease thereon under such terms as the Secretary of the Interior may prescribe unless otherwise pro- vided for in section 227 1 of this title: Provided, That where such prospecting permit is granted upon land within any known geologic structure of a producing oil or gas field, the royalty to be fixed in any lease thereafter granted thereon or any portion thereof shall be not less than 121⁄2 per-centum of all the oil or gas produced except oil or gas used for production purposes on the Page 83 TITLE 30—MINERAL LANDS AND MINING §§ 230 to 233 claim, or unavoidably lost: Provided, however, That the provisions of this section shall not apply to lands reserved for the use of the Navy. No claimant for a permit or lease who has been guilty of any fraud or who had knowledge or rea- sonable grounds to know of any fraud, or who has not acted honestly and in good faith shall be entitled to any of the benefits of this section. All permits or leases hereunder shall inure to the benefit of the claimant and all persons claiming through or under him by lease, con- tract, or otherwise, as their interests may ap- pear. (Feb. 25, 1920, ch. 85, § 19, 41 Stat. 445.) Editorial Notes REFERENCES IN TEXT Section 227 of this title, referred to in text, was omit- ted from the Code. § 229. Preference right to permits or leases of claimants of lands bona fide entered as agri- cultural land; terms and conditions In the case of lands bona fide entered as agri- cultural, and not withdrawn or classified as mineral at the time of entry, but not including lands claimed under any railroad grant, the entryman or patentee, or assigns, where assign- ment was made prior to January 1, 1918, if the entry has been patented with the mineral right reserved, shall be entitled to a preference right to a permit and to a lease, as herein provided, in case of discovery; and within an area not greater than a township such entryman and patentees, or assigns holding restricted patents may com- bine their holdings, not to exceed two thousand five hundred and sixty acres for the purpose of making joint application. Leases executed under this section and embracing only lands so entered shall provide for the payment of a royalty of not less than 121⁄2 per centum as to such areas within the permit as may not be included within the discovery lease to which the permittee is enti- tled under section 223 of this title. (Feb. 25, 1920, ch. 85, § 20, 41 Stat. 445.) § 229a. Water struck while drilling for oil and gas (a) Acquisition; condition in lease All prospecting permits and leases for oil or gas made or issued under the provisions of this chapter shall be subject to the condition that in case the permittee or lessee strikes water while drilling instead of oil or gas, the Secretary of the Interior may, when such water is of such quality and quantity as to be valuable and usa- ble at a reasonable cost for agricultural, domes- tic, or other purposes, purchase the casing in the well at the reasonable value thereof to be fixed under rules and regulations to be prescribed by the Secretary. (b) Prior leases In cases where water wells producing such water have heretofore been or may hereafter be drilled upon lands embraced in any prospecting permit or lease heretofore issued under this chapter, the Secretary may in like manner pur- chase the casing in such wells. (c) Disposition The Secretary may make such purchase and may lease or operate such wells for the purpose of producing water and of using the same on the public lands or of disposing of such water for beneficial use on other lands, and where such wells have heretofore been plugged or abandoned or where such wells have been drilled prior to the issuance of any permit or lease by persons not in privity with the permittee or lessee, the Secretary may develop the same for the pur- poses of this section: Provided, That owners or occupants of lands adjacent to those upon which such water wells may be developed shall have a preference right to make beneficial use of such water. (d) Revolving fund The Secretary may use so much of any funds available for the plugging of wells, as he may find necessary to start the program provided for by this section, and thereafter he may use the proceeds from the sale or other disposition of such water as a revolving fund for the continu- ation of such program, and such proceeds are hereby appropriated for such purpose. (e) Operations under lease not restricted Nothing in this section shall be construed to restrict operations under any oil or gas lease or permit under any other provision of this chap- ter. (Feb. 25, 1920, ch. 85, § 40, as added June 16, 1934, ch. 557, 48 Stat. 977; amended Pub. L. 94–579, title VII, § 704(a), Oct. 21, 1976, 90 Stat. 2792.) Editorial Notes AMENDMENTS 1976—Subsec. (a). Pub. L. 94–579 struck out proviso re- lating to reservation of land as a water hole under sec- tion 300 of title 43. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1976 AMENDMENT Pub. L. 94–579, title VII, § 704(a), Oct. 21, 1976, 90 Stat. 2792, provided that the amendment made by section 704(a) is effective on and after Oct. 21, 1976. SAVINGS PROVISION Amendment by Pub. L. 94–579 not to be construed as terminating any valid lease, permit, patent, etc., exist- ing on Oct. 21, 1976, see section 701 of Pub. L. 94–579, set out as a note under section 1701 of Title 43, Public Lands. §§ 230 to 233. Repealed. June 22, 1948, ch. 605, § 3, 62 Stat. 576 Section 230, act Mar. 4, 1923, ch. 249, § 1, 42 Stat. 1448, authorized permits and leases for certain United States citizens and corporations in Oklahoma. Section 231, act Mar. 4, 1923, ch. 249, § 2, 42 Stat. 1448, required applications for permits and leases to be made not later than sixty days after Mar. 4, 1923. Section 232, act Mar. 4, 1923, ch. 249, § 3, 42 Stat. 1448, limited amount of land any one person or corporation could be granted. Section 233, act Mar. 4, 1923, ch. 249, § 4, 42 Stat. 1448, provided for payment of royalties to United States.