43 U.S.C. § 1335 — Validation and maintenance of prior

Page 333 TITLE 43—PUBLIC LANDS § 1335 WEST DELTA FIELD Pub. L. 101–380, title VI, § 6004(b), Aug. 18, 1990, 104 Stat. 558, provided that: ‘‘Section 5(j) of the Outer Con- tinental Shelf Lands Act [43 U.S.C. 1334(j)], as added by this section, shall not be applicable with respect to Blocks 17 and 18 of the West Delta Field offshore Lou- isiana.’’ Executive Documents KEY LARGO CORAL REEF PRESERVE Secretary of the Interior to prescribe rules and regu- lations governing the protection and conservation of the coral and other mineral resources in the area des- ignated Key Largo Coral Reef Preserve, see Proc. No. 3339, Mar. 15, 1960, 25 F.R. 2352, set out as a note under section 320101 of Title 54, National Park Service and Related Programs. § 1335. Validation and maintenance of prior leases (a) Requirements for validation The provisions of this section shall apply to any mineral lease covering submerged lands of the outer Continental Shelf issued by any State (including any extension, renewal, or replace- ment thereof heretofore granted pursuant to such lease or under the laws of such State) if— (1) such lease, or a true copy thereof, is filed with the Secretary by the lessee or his duly authorized agent within ninety days from Au- gust 7, 1953, or within such further period or periods as provided in section 1336 of this title or as may be fixed from time to time by the Secretary; (2) such lease was issued prior to December 21, 1948, and would have been on June 5, 1950, in force and effect in accordance with its terms and provisions and the law of the State issuing it had the State had the authority to issue such lease; (3) there is filed with the Secretary, within the period or periods specified in paragraph (1) of this subsection, (A) a certificate issued by the State official or agency having jurisdic- tion over such lease stating that it would have been in force and effect as required by the pro- visions of paragraph (2) of this subsection, or (B) in the absence of such certificate, evidence in the form of affidavits, receipts, canceled checks, or other documents that may be re- quired by the Secretary, sufficient to prove that such lease would have been so in force and effect; (4) except as otherwise provided in section 1336 of this title hereof, all rents, royalties, and other sums payable under such lease be- tween June 5, 1950, and August 7, 1953, which have not been paid in accordance with the pro- visions thereof, or to the Secretary or to the Secretary of the Navy, are paid to the Sec- retary within the period or periods specified in paragraph (1) of this subsection, and all rents, royalties, and other sums payable under such lease after August 7, 1953, are paid to the Sec- retary, who shall deposit such payments in the Treasury in accordance with section 1338 of this title; (5) the holder of such lease certifies that such lease shall continue to be subject to the overriding royalty obligations existing on Au- gust 7, 1953; (6) such lease was not obtained by fraud or misrepresentation; (7) such lease, if issued on or after June 23, 1947, was issued upon the basis of competitive bidding; (8) such lease provides for a royalty to the lessor on oil and gas of not less than 121⁄2 per centum and on sulphur of not less than 5 per centum in amount or value of the production saved, removed, or sold from the lease, or, in any case in which the lease provides for a less- er royalty, the holder thereof consents in writ- ing, filed with the Secretary, to the increase of the royalty to the minimum herein speci- fied; (9) the holder thereof pays to the Secretary within the period or periods specified in para- graph (1) of this subsection an amount equiva- lent to any severance, gross production, or oc- cupation taxes imposed by the State issuing the lease on the production from the lease, less the State’s royalty interest in such pro- duction, between June 5, 1950, and August 7, 1953 and not heretofore paid to the State, and thereafter pays to the Secretary as an addi- tional royalty on the production from the lease, less the United States’ royalty interest in such production, a sum of money equal to the amount of the severance, gross production, or occupation taxes which would have been payable on such production to the State issuing the lease under its laws as they existed on August 7, 1953; (10) such lease will terminate within a period of not more than five years from August 7, 1953 in the absence of production or operations for drilling, or, in any case in which the lease pro- vides for a longer period, the holder thereof consents in writing, filed with the Secretary, to the reduction of such period so that it will not exceed the maximum period herein speci- fied; and (11) the holder of such lease furnishes such surety bond, if any, as the Secretary may re- quire and complies with such other reasonable requirements as the Secretary may deem nec- essary to protect the interests of the United States. (b) Conduct of operations under lease; sulphur rights Any person holding a mineral lease, which as determined by the Secretary meets the require- ments of subsection (a) of this section, may con- tinue to maintain such lease, and may conduct operations thereunder, in accordance with (1) its provisions as to the area, the minerals covered, rentals and, subject to the provisions of para- graphs (8)–(10) of subsection (a) of this section, as to royalties and as to the term thereof and of any extensions, renewals, or replacements au- thorized therein or heretofore authorized by the laws of the State issuing such lease, or, if oil or gas was not being produced in paying quantities from such lease on or before December 11, 1950, or if production in paying quantities has ceased since June 5, 1950, or if the primary term of such lease has expired since December 11, 1950, then for a term from August 7, 1953 equal to the term remaining unexpired on December 11, 1950, under the provisions of such lease or any extensions, Page 334 TITLE 43—PUBLIC LANDS § 1336 renewals, or replacements authorized therein, or heretofore authorized by the laws of such State, and (2) such regulations as the Secretary may under section 1334 of this title prescribe within ninety days after making his determination that such lease meets the requirements of sub- section (a) of this section: Provided, however, That any rights to sulphur under any lease maintained under the provisions of this sub- section shall not extend beyond the primary term of such lease or any extension thereof under the provisions of this subsection unless sulphur is being produced in paying quantities or drilling, well reworking, plant construction, or other operations for the production of sul- phur, as approved by the Secretary, are being conducted on the area covered by such lease on the date of expiration of such primary term or extension: Provided further, That if sulphur is being produced in paying quantities on such date, then such rights shall continue to be main- tained in accordance with such lease and the provisions of this subchapter: Provided further, That, if the primary term of a lease being main- tained under this subsection has expired prior to August 7, 1953 and oil or gas is being produced in paying quantities on such date, then such rights to sulphur as the lessee may have under such lease shall continue for twenty-four months from August 7, 1953 and as long thereafter as sul- phur is produced in paying quantities, or drill- ing, well working, plant construction, or other operations for the production of sulphur, as ap- proved by the Secretary, are being conducted on the area covered by the lease. (c) Nonwaiver of United States claims The permission granted in subsection (b) of this section shall not be construed to be a waiv- er of such claims, if any, as the United States may have against the lessor or the lessee or any other person respecting sums payable or paid for or under the lease, or respecting activities con- ducted under the lease, prior to August 7, 1953. (d) Judicial review of determination Any person complaining of a negative deter- mination by the Secretary of the Interior under this section may have such determination re- viewed by the United States District Court for the District of Columbia by filing a petition for review within sixty days after receiving notice of such action by the Secretary. (e) Lands beneath navigable waters In the event any lease maintained under this section covers lands beneath navigable waters, as that term is used in the Submerged Lands Act [43 U.S.C. 1301 et seq.], as well as lands of the outer Continental Shelf, the provisions of this section shall apply to such lease only inso- far as it covers lands of the outer Continental Shelf. (Aug. 7, 1953, ch. 345, § 6, 67 Stat. 465.) Editorial Notes REFERENCES IN TEXT The Submerged Lands Act, referred to in subsec. (e), is act May 22, 1953, ch. 65, 67 Stat. 29, which is classified generally to subchapters I (§ 1301 et seq.) and II (§ 1311 et seq.) of this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 1301 of this title and Tables. Statutory Notes and Related Subsidiaries TRANSFER OF FUNCTIONS Functions of Secretary of the Interior to promulgate regulations under this subchapter which relate to fos- tering of competition for Federal leases, implementa- tion of alternative bidding systems authorized for award of Federal leases, establishment of diligence re- quirements for operations conducted on Federal leases, setting of rates for production of Federal leases, and specifying of procedures, terms, and conditions for ac- quisition and disposition of Federal royalty interests taken in kind, transferred to Secretary of Energy by section 7152(b) of Title 42, The Public Health and Wel- fare. Section 7152(b) of Title 42 was repealed by Pub. L. 97–100, title II, § 201, Dec. 23, 1981, 95 Stat. 1407, and func- tions of Secretary of Energy returned to Secretary of the Interior. See House Report No. 97–315, pp. 25, 26, Nov. 5, 1981. § 1336. Controversies over jurisdiction; agree- ments; payments; final settlement or adju- dication; approval of notice concerning oil and gas operations in Gulf of Mexico In the event of a controversy between the United States and a State as to whether or not lands are subject to the provisions of this sub- chapter, the Secretary is authorized, notwith- standing the provisions of section 1335(a) and (b) of this title and with the concurrence of the At- torney General of the United States, to nego- tiate and enter into agreements with the State, its political subdivision or grantee or a lessee thereof, respecting operations under existing mineral leases and payment and impounding of rents, royalties, and other sums payable there- under, or with the State, its political subdivi- sion or grantee, respecting the issuance or nonissuance of new mineral leases pending the settlement or adjudication of the controversy. The authorization contained in the preceding sentence of this section shall not be construed to be a limitation upon the authority conferred on the Secretary in other sections of this sub- chapter. Payments made pursuant to such agreement, or pursuant to any stipulation be- tween the United States and a State, shall be considered as compliance with section 1335(a)(4) of this title. Upon the termination of such agreement or stipulation by reason of the final settlement or adjudication of such controversy, if the lands subject to any mineral lease are de- termined to be in whole or in part lands subject to the provisions of this subchapter, the lessee, if he has not already done so, shall comply with the requirements of section 1335(a) of this title, and thereupon the provisions of section 1335(b) of this title shall govern such lease. The notice concerning ‘‘Oil and Gas Operations in the Sub- merged Coastal Lands of the Gulf of Mexico’’ issued by the Secretary on December 11, 1950 (15 F.R. 8835), as amended by the notice dated Janu- ary 26, 1951 (16 F.R. 953), and as supplemented by the notices dated February 2, 1951 (16 F.R. 1203), March 5, 1951 (16 F.R. 2195), April 23, 1951 (16 F.R. 3623), June 25, 1951 (16 F.R. 6404), August 22, 1951 (16 F.R. 8720), October 24, 1951 (16 F.R. 10998), De- cember 21, 1951 (17 F.R. 43), March 25, 1952 (17 F.R. 2821), June 26, 1952 (17 F.R. 5833), and De- cember 24, 1952 (18 F.R. 48), respectively, is ap- proved and confirmed.