30 U.S.C. § 192a — Cancellation or modification of contracts

Page 58 TITLE 30—MINERAL LANDS AND MINING § 192 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 SIMILAR PROVISIONS Similar provisions were contained in the following prior appropriation act: Pub. L. 103–332, title I, Sept. 30, 1994, 108 Stat. 2508. § 192. Payment of royalties in oil or gas; sale of such oil or gas All royalty accruing to the United States under any oil or gas lease or permit under this chapter on demand of the Secretary of the Inte- rior shall be paid in oil or gas. Upon granting any oil or gas lease under this chapter, and from time to time thereafter dur- ing said lease, the Secretary of the Interior shall, except whenever in his judgment it is de- sirable to retain the same for the use of the United States, offer for sale for such period as he may determine, upon notice and advertise- ment on sealed bids or at public auction, all roy- alty oil and gas accruing or reserved to the United States under such lease. Such advertise- ment and sale shall reserve to the Secretary of the Interior the right to reject all bids whenever within his judgment the interest of the United States demands; and in cases where no satisfac- tory bid is received or where the accepted bidder fails to complete the purchase, or where the Sec- retary of the Interior shall determine that it is unwise in the public interest to accept the offer of the highest bidder, the Secretary of the Inte- rior, within his discretion, may readvertise such royalty for sale, or sell at private sale at not less than the market price for such period, or accept the value thereof from the lessee: Pro- vided, That inasmuch as the public interest will be served by the sale of royalty oil to refineries not having their own source of supply for crude oil, the Secretary of the Interior, when he deter- mines that sufficient supplies of crude oil are not available in the open market to such refin- eries, is authorized and directed to grant pref- erence to such refineries in the sale of oil under the provisions of this section, for processing or use in such refineries and not for resale in kind, and in so doing may sell to such refineries at private sale at not less than the market price any royalty oil accruing or reserved to the United States under leases issued pursuant to this chapter: Provided further, That in selling such royalty oil the Secretary of the Interior may at his discretion prorate such oil among such refineries in the area in which the oil is produced: Provided, however, That pending the making of a permanent contract for the sale of any royalty, oil or gas as herein provided, the Secretary of the Interior may sell the current product at private sale, at not less than the market price: And provided further, That any royalty, oil, or gas may be sold at not less than the market price at private sale to any depart- ment or agency of the United States. (Feb. 25, 1920, ch. 85, § 36, 41 Stat. 451; July 13, 1946, ch. 574, 60 Stat. 533.) Editorial Notes AMENDMENTS 1946—Act July 13, 1946, inserted first two provisos which were enacted in order to assist small business en- terprise by encouraging the operation of oil refineries not having an adequate supply of crude oil. Statutory Notes and Related Subsidiaries OUTER CONTINENTAL SHELF; ROYALTIES FROM LEASES Payment of royalties from mineral leases on sub- merged lands of outer Continental Shelf, see section 1337 of Title 43, Public Lands. § 192a. Cancellation or modification of contracts Where, under any existing contract entered into pursuant to the first proviso in the second paragraph of section 192 of this title, any refin- ery is required to pay a premium price for the purchase of Government royalty oil, such refin- ery may, at its option, by written notice to the Secretary of the Interior, elect either— (1) to terminate such contract, the termi- nation to take place at the end of the calendar month following the month in which such no- tice is given; or (2) to retain such contract with the modi- fications, that (a) the price, on and after March 1, 1949, shall be as defined in the con- tract, without premium payments, (b) any credit thereby resulting from past premium payments shall be added to the refinery’s ac- count, and (c) the Secretary may, at his op- tion, elect to terminate the contract as so modified, such termination to take place at the end of the third calendar month following the month in which written notice thereof is given by the Secretary. (Sept. 1, 1949, ch. 529, § 1, 63 Stat. 682.) 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. § 192b. Application to contracts The provisions of sections 192a to 192c of this title shall apply to all existing contracts for the purchase of Government royalty oil entered into after July 13, 1946, and prior to September 1, 1949, irrespective of whether a determination of preference status was made in connection with the award of such contracts, but shall not apply to any such contract which subsequent to its award has been transferred, through the acquisi- tion of stock interests or other transactions, to the ownership or control of a refinery ineligible for a preference under section 192 of this title, and the regulations in force thereunder at the time of such transfer. (Sept. 1, 1949, ch. 529, § 2, 63 Stat. 682.) 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.