* Act of February 25, 1920 (P.L. 66-146, 41 Stat. 437, as amended; 30 U.S.C. 181(note)), 181-187, 187a-b, 188-195, 201-202, 202a, 203-208, 208-1, 208-2, 209, 211-214, 221-226, 226-2, 226-3, 227-229, 229a, 241, 251, 261-263

Lands Subject to Disposition

Sec. 1. Deposits of coal, phos-phate, sodium, potassium, oil, oil shale, gilsonite (including all vein- type solid hydrocarbons), or gas, and lands containing such de-posits owned by the United States, includ-ing those in National Forests, but excluding lands acquired under the authority of the Appalachian For-est Act, approved March 1, 1911 (36 Stat. 961), and those in incorporated cities, towns, and vil-lages and in National Parks and Monuments, those acquired under other Acts subsequent to February 25, 1920, and lands within the naval petro-leum and oil-shale reserves, except as herein-after provided, shall be subject to disposition in the form and man-ner provid-ed by Chapter 3, Title 30, United States Code to citizens of the United States, or to associations of such citizens, or to any corporation organized under the laws of the United States or of any State or Territory thereof, or in the case of coal, oil, oil shale, or gas, to municipalities. Citizens of another country, the laws, customs or regulations of which deny similar or like privileges to citizens or corporations of this country shall not by stock ownership, stock holding, or stock control, own any interest in any lease acquired under the provisions of said sections.

The term "oil" shall embrace all nongaseous hydrocarbon substances other than those substances leasable as coal, oil shale, or gilsonite (including all vein-type solid hydrocarbons).

The term "combined hydrocarbon lease" shall refer to a lease issued in a special tar sand area pursuant to section 226 of this title after November 16, 1981.

The term "special tar sand area" means-

(1) an area designated by the Secretary of the Interior's orders of November 20, 1980 (45 FR 76800-76801) and January 21, 1981 (46 FR 6077-6078) as containing substantial deposits of tar sand.

The United States reserves the ownership of and the right to extract helium from all gas produced from lands leased or otherwise granted under the provisions of said sec-tions, under such rules and regula-tions as shall be prescribed by the Secretary of the Interior: Provided further, That in the extraction of helium from gas pro-duced from such lands it shall be so extracted as to cause no substantial delay in the delivery of gas produced from the well to the purchaser thereof. (30 U.S.C. 181)

Note.-This Act applies to (1) National Forest lands reserved from the public domain or which were acquired by exchange under the Act of March 20, 1922 (42 Stat. 465; 16 U.S.C. 485), or similar law, by terms of which "public land" or the timber thereon is granted in exchange, and (2) national grasslands and other Title III, Bankhead-Jones Farm Tenant Act lands, reserved from the public domain. It does not apply to "acquired" lands in either category.

The Bureau of Land Management, Department of the Interior, is re-sponsible for leasing under this Act. Tech-nical administration of leases and permits is the responsi-bility of the U.S. Geological Survey. By interdepart-mental agree-ment all applications to lease lands under Forest Ser-vice jurisdiction are re-ferred to the Forest Service for review, recommendation or consent, and special stipulations to protect the surface and subsur-face functions.

Leases and Exploration

Sec. 2. (a)(1) The Secretary of the Interior is authorized to divide any lands subject to this chapter which have been classified for coal leasing into leasing tracts of such size as he finds appropriate and in the public interest and which will permit the mining of all coal which can be economically extracted in such tract and thereafter he shall, in his discretion, upon the request of any qualified applicant or on his own motion, from time to time, offer such lands for leasing and shall award leases thereon by com-petitive bidding: Provided, That notwith-standing the competitive bidding require-ment of this section, the Secretary may, subject to such conditions which he deems appro-priate, negotiate the sale at fair market value of coal the removal of which is necessary and incidental to the exercise of a right-of-way permit issued pursuant to Title V of the Federal Land Policy and Man-age-ment Act of 1976 (43 U.S.C. 1761 et seq.). No less than 50 per centum of the total acreage offered for lease by the Secretary in any one year shall be leased under a system of deferred bonus payment. Upon default or cancella-tion of any coal lease for which bonus pay-ments are due, any unpaid remain-der of the bid shall be immediately payable to the United States. A reasonable number of leasing tracts shall be reserved and offered for lease in accordance with this section to public bodies, including Federal agencies, rural electric cooperatives, or nonprofit corporations controlled by any of such entities: Provided, That the coal so offered for lease shall be for use by such entity or entities in implementing a definite plan to produce energy for their own use or for sale to their mem-bers or custom-ers (except for short-term sales to others). No bid shall be accepted which is less than the fair market value, as determined by the Secretary, of the coal subject to the lease. Prior to his determina-tion of the fair market value of the coal subject to the lease, the Secre-tary shall give opportunity for and consider-ation to public com-ments on he fair market value. Nothing in this section shall be construed to require the Secretary to make public his judgement as to the fair market value of the coal to be leased, or the comments he receives thereon prior to the issuance of the lease. He is authorized, in awarding leases for coal lands im-proved and occupied or claimed in good faith, prior to Feb-ruary 25, 1920, to con-sider and recognize equitable rights of such occupants or claimants.

(2)(A) The Secretary shall not issue a lease or leases under the terms of this chapter to any person, associa-tion, corporation, or any subsidiary, affiliate, or persons con-trolled by or under common control with such person, association, or corporation, where any such entity holds a lease or leases issued by the United States to coal deposits and has held such lease or leases for a period of ten years when such entity is not, except as provided for in section 207(b) of this title, produc-ing coal from the lease deposits in commercial quantities. In comput-ing the ten-year period referred to in the preceding sentence, periods of time prior to August 4, 1976, shall not be counted.

(B) Any lease proposal which permits surface coal mining within the boundaries of National Forest which the Secretary proposes to issue under this chapter shall be submitted to the Governor of each State within which the coal deposits subject to such lease are located. No such lease may be issued under this chapter before the expira-tion of the sixty-day period begin-ning on the date of such submission. If any Governor to whom a proposed lease was submitted under this subpara-graph objects to the issuance of such lease, such lease shall not be issued before the expiration of the six-month period beginning on the date the Secretary is notified by the Governor of such objection. During such six-month period, the Governor may submit to the Secretary of rea-sons why such lease should not be issued and the Secre-tary shall, on the basis of such statement, recon-sider the issuance of such lease.

(3)(A)(i) No lease sale shall be held unless the lands containing the coal deposits have been included in a comprehensive land-use plan and such sale is compatible with such plan. The Secretary of the Interior shall pre-pare such land-use plans on lands under his responsibility where such plans have not been previously prepared. The Secretary of the Interior shall inform the Sec-retary of Agriculture of substantial devel-op-ment interest in coal leasing on lands within the National Forest System. Upon receipt of such noti-fication from the Secretary of the Interior, the Secre-tary of Agriculture shall prepare a comprehensive land-use plan for such areas where such plans have not been previously prepared. The plan of the Secretary of Agriculture shall take into consideration the proposed coal development in these lands: Provided, That where the Secretary of the Interior finds that because of non-Federal interest in the surface or because the coal resources are insuf-ficient to justify the preparation costs of a Federal com-prehensive land-uses plan, the lease sale can be held if the lands containing the coal deposits have been included in either comprehensive land-use plan pre-pared by the State within which the lands are located or a land use analysis pre-pared by the Secretary of the Interi-or.

(ii) In preparing such land-use plans, the Secretary of the Interi-or or, in the case of lands within the National Forest Sys-tem, the Secretary of Agricul-ture, or in the case of a finding by the Secre-tary of the Interior that because of non-Federal inter-ests in the surface or insufficient Federal coal, no Federal compre-hensive land-use plans can be appropriately prepared, the re-sponsible State entity shall con-sult with appropriate State agen-cies and local governments and the general public and shall pro-vide an opportu-nity for public hearing on proposed plans prior to their adop-tion, if requested by any person having an interest which is, or may be, adversely affected by the adop-tion of such plans.

(iii) Leases covering lands the surface of which is under the jurisdiction of any Federal agency other than the Department of the Interior may be issued only upon consent of the other Federal agency and upon such conditions as it may prescribe with respect to the use and protection of the nonmineral interests in those lands.

(B) Each land-use plan prepared by the Secretary (or in the case of lands within the National Forest System, the Secretary of Agriculture pursuant to subparagraph (A)(i)) shall include an assessment of the amount of coal deposits in such land, identifying the amount of such coal which is recoverable by deep mining operations and the amount of such coal which is recoverable by surface mining operations.

(C) Prior to issuance of any coal lease, the Secretary shall consider effects which mining of the proposed lease might have on an impacted commu-nity or area, includ-ing, but not limited to, im-pacts on the environ-ment, on agri-cultural and other economic activities, and on public services. Prior to issuance of a lease, the Secretary shall evaluate and compare the effects of recover-ing coal by deep mining, by surface mining, and by any other method to deter-mine which method or methods or sequence of methods achieves the maximum economic recovery of the coal within the proposed leasing tract. This evaluation and compari-son by the Secretary shall be in writing but shall not prohibit the issuance of a lease; however, no mining operating plan shall be ap-proved which is not found to achieve the maximum economic recovery of the coal within the tract. Public hearings in the area shall be held by the Secretary prior to the lease sale.

(D) No lease sale shall be held until after the notice of the proposed offering for lease has been given once a week for three consecutive weeks in a newspaper of gen-er-al circulation in the county in which the lands are situated in accordance with regulations prescribed by the Secretary.

(E) Each coal lease shall contain provisions requiring compliance with the Federal Water Pollution Control Act (33 U.S.C. 1151- 1175)(33 U.S.C. 1251 et seq.) and the Clean Air Act (42 U.S.C. 7401 et seq.).

(b)(1) The Secretary may, under such regulations as he may prescribe, issue to any person an exploration license. No person may conduct coal exploration for commercial purposes for any coal on lands subject to this chapter without such an exploration license. Each exploration license shall be for a term of not more than two years and shall be subject to a reasonable fee. An exploration license shall confer no right to a lease under this chap-ter. The issuance of exploration licenses shall not preclude the Sec-retary from issuing coal leases at such times and loca-tions and to such persons as he deems appropriate. No exploration license will be is-sued for any land on which a coal lease has been issued. A sepa-rate exploration license will be required

for exploration in each State. An application for an exploration li-cense shall identify general areas and probable methods of explora-tion. Each ex-ploration license shall contain such reasonable conditions as the Secretary may require, includ-ing conditions to in-sure the protec-tion of the environ-ment, and shall be subject to all applicable Federal, State, and local laws and regula-tions. Upon violation of any such conditions or laws the Secretary may revoke the exploration license.

(2) A licensee may not cause substantial disturbance to the natural land surface. He may not remove any coal for sale but may remove a reasonable amount of coal from the lands sub-ject to this chapter includ-ed under his license for analysis and study. A licensee must comply with all appli-cable rules and regulations of the Federal agency having juris-dic-tion over the surface of the lands subject to this chapter. Exploration licenses cover-ing lands the surface of which is under the jurisdiction of any Federal agen-cy other than the Department of the Interior may be issued only upon such conditions as it may prescribe with respect to the use and protection of the nonmineral interests in those lands.

(3) The licensee shall furnish to the Secretary copies of all data (including, but not limited to, geo-logical, geophysical, and core drill-ing analyses) obtained during such exploration. The Secretary shall maintain the confidentiality of all data so ob-tained until after the areas involved have been leased or until such time as he determines that making the data available to the public would not damage the com-petitive position of the licensee, whichever comes first.

(4) Any person who willfully conducts coal exploration for com-mercial purposes on lands subject to this chapter without an exploration li-cense issued hereunder shall be subject to a fine of not more than $1,000 for each day of violation. All data collected by said person on any Federal lands as a result of such violation shall be made immediately available to the Secretary, who shall make the data available to the pub-lic as soon as it is practicable. No penalty under this subsection shall be assessed unless such person is given notice and opportunity for a hearing with respect to such viola-tion. (30 U.S.C. 201)

(c) No company or corporation operating a common-carrier railroad shall be given or hold a permit or lease under the provisions of this chapter for any coal deposits except for its own use for railroad purpos-es; and such limitations of use shall be expressed in all permits and leases issued to such companies or corporations; and no such company or corporation shall receive or hold under permit or lease more than ten thousand two hundred and forty acres in the aggregate nor more than one permit or lease for each two hun-dred miles of its railroad lines served or to be served from such coal deposits exclusive of spurs or switches and exclusive of branch lines built to connect the leased coal with the railroad, and also exclusive of parts of the railroad operated mainly by power produced other-wise than by steam.

Nothing in this section and sec-tion 201 of this title shall preclude such a railroad of less than two hundred miles in length from secur-ing one permit or lease thereunder but no railroad shall hold a permit or lease for lands in any State in which it does not operate main or branch lines. (30 U.S.C. 202)

(d)(1) The Secretary, upon deter-mining that maximum economic recovery of the coal deposit or de-posits is served thereby, may ap-prove the consolida-tion of coal leases into logical mining unit. Such consolidation may only take place after a public hearing, if re-quested by any person whose inter-est is or may be adversely affected. A logical mining unit is an area of land in which the coal resources can be developed in an efficient, eco-nomical, and orderly manner as a unit with due regard to conservation of coal reserves and other resources. A logical mining unit may consist of one or more Federal leaseholds, and may include inter-vening or adjacent lands in which the United States does not own the coal resources, but all the lands in a logical mining unit must be under the effec-tive control of a single opera-tor, be able to be devel-oped and operated as a single opera-tional and be con-tigu-ous.

(2) After the Secretary has approved the establishment of a logi-cal mining unit, any mining plan ap-proved for that unit must require such diligent development, opera-tion, and produc-tion that the re-serves of the entire unit will be mined within a period estab-lished by the Secretary which shall not be more than forty years.

(3) In approving a logical min-ing unit, the Secretary may provide, among other things, that (i) diligent devel-opment, continuous opera-tion, and production on any Federal lease or non-Federal land in the logical mining unit shall be construed as occurring on all Federal leases in that logical mining unit, and (ii) the rentals and royal-ties for all Federal leases in a logi-cal min-ing unit may be combined, and advanced royalties paid for any lease within logical mining unit may be credited against such combined royalties.

(4)The Secretary may amend the provisions of any lease included in a logical mining unit so that min-ing under that lease will be consis-tent with the requirements imposed on that logical mining unit.

(5) Leases issued before the date of enactment of this Act may be included with the consent of all lessees in such logical mining unit, and, if so included, shall be subject to the provisions of this section.

(6) By regulation the Secretary may require a lessee under this chapter to form a logical mining unit, and may provide for determi-nation of participating acreage with-in a unit.

(7) No logical mining unit shall be approved by the Secretary if the total acreage (both Federal and non-Federal) of the unit would exceed twenty-five thousand acres.

(8) Nothing in this section shall be construed to waive the acreage limitations for coal leases contained in section 184(a) of this title. (30 U.S.C. 202a)

Additional Contigu-ous or Corner-ing Lands

Sec. 3. Any person, association, or corporation holding a lease of coal lands or coal deposits under the provisions of this chapter may with the approval of interest of the Unit-ed States, secure modifications of the original coal lease by including additional coal lands or coal depos-its contigu-ous or concerning to those embraced in such lease, but in no event shall the total area added by such modifications to an existing coal lease exceed one hundred sixty acres, or add acreage larger than that in the original lease. The Secretary shall prescribe terms and conditions which shall be consistent with this chapter and applicable to all of the acreage in such modified lease except that nothing in this section shall require the Secretary to apply the production or mining plan require-ment of section 202a(2) and 207(c) of this title. The minimum royalty provi-sions of section 207(a) of this title shall not apply to any lands covered by this modified lease prior to a modi-fication until the term of the original lease or exten-sion thereof which became effective prior to the effective date of this Act has expired. (30 U.S.C 203)

Sec. 4. Repealed. Pub.L. 94-377, Sec. 13(a), Aug. 4, 1976, 90 Stat. 1090 (30 U.S.C. 204)

Consolidation of Leases

Sec. 5. If, in the judgment of the Secretary of the Interior, the public interest will be subserved thereby, lessees holding under lease areas not exceeding the maximum permitted under this chapter may consolidate their leases through the surrender of the original leases and the inclusion of such areas in a new lease of not to exceed two thousand five hundred and sixty acres of contiguous lands. (30 U.S.C. 205)

Noncontiguous Coal or Phosphate tracts in Single Lease

Sec. 6. Where coal or phosphate lands aggregating two thousand five hundred and sixty acres and subject to lease hereunder do not exist as contiguous areas, the Secretary of the Interior is authorized, if, in his opinion the interests of the public and of the lessee will be thereby subserved, to embrace in a single lease noncontiguous tracts which can be operated as a single mine or unit. (30 U.S.C. 206)

Conditions of Lease

Sec. 7. (a) A coal lease shall be for a term of twenty years and for so long thereafter as coal is produced annually in commercial quantities from that lease. Any lease which is not producing in commercial quantities at the end of ten years shall be terminated. The Secretary shall by regulation prescribe annual rentals on leases. A lease shall require payment of a royalty in such amount as the Secretary shall determine of not less than 12 1/2 per centum of the value of coal as defined by regulation, except the Secretary may determine a lesser amount in the case of coal recovered by underground mining opera-tions. The lease shall include such other terms and conditions as the Secretary shall determine. Such rentals and royalties and other terms and conditions of the lease will be subject to readjustment at the end of its primary term of twenty years and at the end of each ten-year period thereafter if the lease is extended.

(b) Each lease shall be subject to the conditions of diligent development and continued operation of the mine or mines, except where opera-tions under the lease are interrupted by strikes, the elements, or casual-ties not attribut-able to the lessee. The Secretary of the Interior, upon determining that the public interest will be served thereby, may suspend the condition of continued operation upon the payment of advance royal-ties. Such advance royalties shall be no less than the production royal-ty which would otherwise be paid and shall be computed on a fixed reserve to production ratio (deter-mined by the Secretary). The aggregate number of years during the period of any lease for which ad-vance royalties may be accepted in lieu of the condition of continued operation shall not exceed ten. The amount of any production royalty paid for any year shall be reduced (but not below 0) by the amount of any advance royalties paid under such lease to the extent that such advance royal-ties have not been used to reduce production royalties for a prior year. No ad-vance royal-ty paid during the initial twenty-year term of a lease shall be used to reduce a production royalty after the twentieth year of a lease. The Secretary may, upon six months' notifi-cation to the lessee cease to accept ad-vance royalties in lieu of the re-quirement of continued operation. Nothing in this subsection shall be construed to affect the requirement contained in the second sentence of subsection (a) of this section relat-ing to commence-ment of production at the end of ten years.

(c) Prior to taking any action on a leasehold which might cause a significant disturbance of the envi-ronment, and not later than three years after a lease is issued, the lessee shall submit for the Secretary's approval an operation and reclamation plan. The Secretary shall approve or disapprove the plan or require that it be modi-fied. Where the land involved is under the surface jurisdiction of another Fed-eral agency, that other agency must consent to the terms of such approval. (30 U.S.C. 207)

Sec. 8. In order to provide for the supply of strictly local domestic needs for fuel, the Secretary of the Interior may, under such rules and regula-tions as he may prescribe in advance, issue limited licenses or permits to individuals or associa-tions of indi-viduals to prospect for, mine, and take for their use but not for sale, coal from the public lands without payment of royalty for the coal mined or the land occupied, on such conditions not inconsistent with this chapter as in his opinion will safeguard the public interests. This privilege shall not extend to any corporations. In the case of municipal corporations the Secre-tary of the Interior may issue such limit-ed license or permit, for not to exceed three hundred and twenty acres for a municipality of less than one hun-dred thousand population, and not to exceed one thousand two hundred and eighty acres for a mu-nicipality of not less than one hun-dred thousand and not more than one hundred and fifty thousand population; and not to exceed two thousand five hundred and sixty acres for a municipality of one hun-dred and fifty thousand population or more, the land to be selected within the State wherein the munici-pal applicant may be located, upon condition that such municipal corpo-rations will mine the coal therein under proper conditions and dispose of the same without profit to resi-dents of such municipality for house-hold use: Provided, That the acquisi-tion or holding of a lease under sections 181, 201, and 202 to 207 of this title shall be no bar to the holding of such tract or opera-tion of such mine under said limited

license. (30 U.S.C. 208)

Exploratory Program for Evalua-tion of Known Recoverable Coal Resources

Sec. 8A. (a) The Secretary is au-thorized and directed to conduct a comprehensive exploratory pro-gram designed to obtain sufficient data and information to evaluate the ex-tent, location, and potential for develop-ing the known recoverable coal resources within the coal lands subject to this chapter. This pro-gram shall be designed to obtain the resource information necessary for determining whether commercial quantities of coal are present and the geographical extent of the coal fields and for estimating the amount of such coal which is recoverable by deep mining operations and the amount of such coal which is recov-erable by surface mining operations in order to pro-vide a basis for

(1) developing a comprehen-sive land use plan pursuant to sec-tion 2;

(2) improving the information regarding the value of public re-sources and revenues which should be expected from leasing;

(3) increasing competition among producers of coal, or prod-ucts derived from the conver-sion of coal, by providing data and informa-tion to all potential bidders equally and equitably;

(4) providing the public with information on the nature of the coal deposits and the associated stratum and the value of the public resources being offered for sale; and

(5) providing the basis for the assessment of the amount of coal deposits in those lands subject to this chapter under subparagraph (B) of section 201(a)(3) of this title.

(b) The Secretary, through the United States Geological Survey, is authorized to conduct seismic, geo-physical, geochemical, or strati-graphic drilling, or to contract for or pur-chase the results of such explor-atory activities from commercial or other sources which may be needed to implement the provisions of this section.

(c) Nothing in this section shall limit any person from conduction exploratory geophysical surveys including seismic, geophysical, chemical surveys to the extent per-mitted by section 201(b) of this title. The information obtained from the ex-ploratory drilling carried out by a person not under contract with the United States Government for such drilling prior to award of a lease shall be provided the confidentiality pursuant to sub-section (d) of this section.

(d) The Secretary shall make available to the public by appropri-ate means all data, information, maps, interpre-tations, and surveys which are ob-tained directly by the Department of the Interior or under a service contract pursuant to sub-sec-tion (b) of this section. The Secre-tary shall maintain a confiden-tiality of all proprietary data or information purchased from commercial sources while not under contract with the United States Government until after the areas involved have been leased.

(e) All Federal departments or agen-cies are authorized and directed to provide the Secretary with any information or data that may be deemed necessary to assist the Sec-re-tary in implement-ing the explor-atory program pursu-ant to this sec-tion. Proprietary information or data provided to the Secretary under the provisions of this subsec-tion shall remain confidential for such period of time as agreed to by the head of the department or agency from whom the information is re-quested. In addi-tion, the Secretary is authorized and directed to utilize the existing capa-bilities and resourc-es of other Feder-al departments and agencies by appro-priate agreement.

(f) The Secretary is directed to prepare, publish, and keep current a series of detailed geological, and geophysical maps of, and reports concerning, all coal lands to be offered for leasing under this chapter, based on data and information compiled pursuant to this section. Such maps and reports shall be prepared and revised at reasonable intervals beginning eighteen months after the date of enactment of this Act. Such maps and reports shall be made available on a continuing basis to any person on request.

(g) Within six months after the date of enactment of this Act, the Secretary shall develop and transmit to Congress an implementation plan for the coal lands exploration program authorized by this section, including procedures for making the data and information available to the public pursuant to subsection (d) of this section, and maps and reports pursuant to subsection (f) of this section. The implementation plan shall include a projected schedule of exploratory activities and identification of the regions and areas which will be explored under the coal lands exploration program during the first five years following the enactment of this section. In addi-tion, the imple-mentation plan shall include estimates of the appropria-tions and staffing required to imple-ment the coal lands explora-tion program.

(h) The stratigraphic drilling authorized in subsection (b) of this section shall be carried out in such a man-ner as to obtain information pertain-ing to all recoverable reserves. For the purpose of com-ply-ing with subsec-tion (a) of this sec-tion, the Secretary shall require all those authorized to con-duct stratigraphic drilling pursuant to subsection (b) of this section to supply a statement of the results of test bor-ing of core sampling includ-ing logs of the drill holes; the thick-ness of the coal seams found; an analysis of the chemical properties to such coal; and an analysis of the strata layers lying above all the seams of coal. All drilling activities shall be con-ducted using the best current tech-nol-ogy and practices. (30 U.S.C. 208-1)

Report to Congress on Leas-ing and Production of Coal Lands

Sec. 8B. Within six months after the end of each fiscal year, the Secretary shall submit to the Congress a report on the leasing and production of coal lands subject to this chapter during such fiscal year; a summary of management, supervi-sion, and en-forcement activi-ties; and recommen-dations to the Congress for improvements in management, envi-ronmental safeguards, and amount of production in leasing and mining operations on coal lands subject to this chapter. Each sub-mis-sion shall also contain a report by the Attorney General of the Unit-ed States on competition in the coal and energy industries, including an analysis of whether the antitrust provisions of this chapter and the antitrust laws are effective in pre-serving or promoting competition in the coal or energy industry. (30 U.S.C. 208-2)

Phosphate Deposits

Sec. 9. (a) The Secretary of the Interior is authorized to lease to any applicant qualified under this chapter, through advertisement, competi-tive bidding, or such other methods as he may by general regu-lations adopt, and phosphate depos-its of the United States, and lands containing such deposits, including associated and related minerals, when in his judgement the public interest will be served thereby. The lands shall be leased under such terms and condi-tions as are herein speci-fied, in units reasonably com-pact in form of not to exceed two thousand five hun-dred and sixty acres.

(b) Where prospecting or explor-atory work is necessary to determine the existence or workability of phosphate deposits in any unclaimed, undeveloped area, the Secretary of the Interior is authorized to issue, to any applicant qualified under this chap-ter, a pros-pecting permit which shall give the exclusive right to pros-pect for phos-phate deposits, in-cluding associated minerals, for a per-i-od of two years, for not more than two thousand five hundred and six-ty acres; and if prior to the expi-ration of the permit the permittee shows to the Secretary that valuable deposits of phosphate have been discovered within the area covered by his permit, the permittee shall be entitled to a lease for any or all of the land embraced in the prospecting permit.

(c) Any phosphate permit issued under this section may be extended by the Secretary for such an additional period, not in excess for four years, as he deems advisable, if he finds that the permittee has been unable, with reasonable diligence, to determine the existence or workabil-ity of phos-phate deposits in the area covered by the permit and desires to prosecute further prospecting or ex-ploration, or for other reasons war-ranting such an extension in the o-pin-ion of the Secretary. (30 U.S.C. 211)

Surveys; Royalties; Term of Leases

Sec. 10. Each lease shall describe the leased lands by the legal subdivisions of the public-land surveys. All leases shall be conditioned upon the payment to the Unit-ed States of such royalties as may be specified in the lease, which shall be fixed by the Secretary of the Interior in advance of offering the same, at not less than 5 per centum of the gross value of the output of phosphates or phos-phate rock and associated or related min-erals. Royalties shall be due and payable as specified in the lease either monthly or quarterly on the last day of the month next following the month or quarter in which the minerals are sold or re-moved from the leased land. Each lease shall provide for the payment of a rental payable at the date of the lease and annually thereafter which shall be not less than 25 cents per acre for the first year, 50 cents per acre for the second and third years, respec-tively, and $1 per acre for each year thereafter, during the continuance of the lease. The rental paid for any year shall be credited against the royalties for that year. Leases shall be for a term of twenty years and so long thereafter as the lessee com-plies with the terms and conditions of the lease and upon the further condition that at the end of each twenty-year period succeeding the date of the lease such reasonable readjustment of the terms and condi-tions thereof may be made therein as may be prescribed by the Secre-tary of the Interior unless otherwise provided by law at the expiration of such periods. Leases shall be conditioned upon minimum annual production or the payment of a minimum royalty in lieu thereof, except when produc-tion is interrupted by strikes, the elements, or casualties not attribut-able to the lessee. The Secretary of the Interior may permit suspension of operations under any such leases when marketing condi-tions are such that the leases cannot be operated except at a loss. (30 U.S.C. 212)

Royalties for Use of Deposits of Silica, Limestone, or Other Rock

Sec. 11. Any lease to develop and extract phosphates, phosphate rock, and associated or related min-er-als under the provisions of section 211 to 214 of this title shall provide that the lessee may use so much of any deposit of silica or limestone or other rock situated on any public lands em-braced in the lease as may be utilized in the processing or refining of the phosphates, phosphate rock, and associated or related minerals mined from the leased lands or from other lands upon payments of such royalty as may be determined by the Secretary of the Interior, which royalty may be stated in the lease or, as to the leases already issued, may be provided for in an attachment to the lease to be duly executed by the lessor and the lessee. (30 U.S.C. 213)

Use of Surface of Other Public Lands

Sec. 12. The holder of any lease or permit issued under the provisions of section 211 to 214 of this title shall have the right to use so much of the surface of unappropriated and unentered public lands not a part of his lease or permit, not exceeding eighty acres in area, as may be determined by the Secretary to be necessary or convenient for the extraction, treatment, and removal of the mineral deposits, but this provision shall not be applicable to

national forest lands. (30 U.S.C. 214)

Sec. 13. Section expired. (30 U.S.C. 221)

Note.-The original provisions of Section 13 have been removed and superceded by subsequent amendments to the Act and no longer apply to the leasing of Oil and Gas. However, most existing Oil and Gas leases that are producing or are capable of producing oil and gas were issued under provisions of Section 13. These provisions are included below for reference.

That the Secretary of the Interior is hereby authorized, under such necessary and proper rules and regulations as he may prescribe, to grant to any applicant qualified under this Act a pros-pecting permit, which shall give the exclusive right, for a period not exceeding two years, to prospect for oil or gas upon not to exceed two thousand five hun-dred and sixty acres of land wherein such deposits belong to the Unit-ed States and are not within any known geo-logical structure of a producing oil or gas field upon condition that the permittee shall begin drill-ing opera-tions within six months from the date of the permit, and shall, within one year from and after the date of the permit, drill for oil or gas to an aggregate depth of not less than two thousand feet unless valuable deposits or oil or gas shall be sooner discov-ered. The Secretary of the Interior may, if he shall find that the permittee has been unable with the exercise of dili-gence to test the land in the time granted by the permit, extend any such permit for such time, not ex-ceeding two years, and upon such condi-tions as he shall pre-scribe. Whether the lands sought in any such application and per-mit are surveyed or unsur-veyed the appli-cant shall, prior to filing his application for permit, locate such lands in a reasonably com-pact form and according to the legal subdivisions of the public land surveys if the land be surveyed; and in an approximately square or rectangular tract if the land be an unsurveyed tract, the length of which shall not exceed two and one-half times its width, and if he shall cause to be erected upon the land for which a permit is sought a monument not less than four feet high, at some conspicuous place thereon, and shall post a notice in writing on or near said monument, stating that an application for permit will be made within thirty days after date of posting said notice, the name of the applicant, the date of the notice, and such a general description of the land to be covered by such permit by reference to courses and distances from such monument and such other natural objects and permanent monuments as will reasonably identify the land, stating the amount there-of in acres, he shall during the period of thirty days following such marking and posting, be entitled to a pref-er-ence right over others to a permit for the land so identified. The appli-cant shall, within ninety days after receiving a permit, mark each of the corners of the tract described in the permit upon the ground with substantial monuments, so that the boundaries can be readily traced on the ground, and shall post in a conspicuous place upon the lands a notice that such permit has been granted and a de-scription of the lands covered thereby: Pro-vided, That in the Territory of Alas-ka pros-pect-ing permits not more than five in number may be granted to any qualified appli-cant for periods not exceeding four years, actual drilling opera-tions shall begin within two years from date of permit, and oil and gas wells shall be drilled to a depth of not less than five hundred feet, unless valuable deposits of oil or gas shall be sooner discovered, within three years from date of the permit and to an aggregate depth of not less than two thousand feet unless valuable deposits of oil or gas shall be sooner discovered, within four years from date of permit: Provided further, That in said Territory the applicant shall have a preference right over others to a permit for land identified by temporary monuments and notice posted on or near the same for six months following such marking and posting, and upon receiving a permit he shall mark the corners of the tract described in the permit upon the ground with substantial monuments within one year after receiving such permit.

Leases; Amount and Survey of Land; Term of Lease; Royalties and Annual Rental

Sec. 14. Upon establishing to the satisfaction of the Secretary of the Interior that valuable deposits of oil or gas have been discovered within the limits of the land em-braced in any permit, the permittee shall be enti-tled to a lease for one-fourth of the land embraced in the prospect-ing permit: Provided, That the permittee shall be granted a lease for as much as one hundred and sixty acres of said lands, if there be that num-ber of acres within the permit. The area to be selected by the per-mittee, shall be in reasonably compact form and, if surveyed, to be described by the legal subdivisions of the public-land surveys; if unsur-veyed, to be sur-veyed by the Gov-ernment at the expense of the appli-cant for lease in accordance with rules and regulations to be pre-scribed by the Secretary of the Interi-or, and the lands leased shall be conformed to and taken in accor-dance with the legal subdivisions of such surveys; deposits made to cover expense of surveys shall be deemed appropriated for that pur-pose, and any excess deposits may be repaid to the person or persons making such deposit or their legal representatives. Such leases shall be for a term of twenty years upon a royalty of 5 per centum in amount or value of the production and the annual payment in advance of a rental of $1 per acre, the rental paid for any one year to be credited against the royalties as they accrue for that year, and shall con-tinue in force otherwise as pre-scribed in section 226 of this title for leases issued prior to August 21, 1935. The permittee shall also be entitled to a preference right to a lease for the remainder of the land in his pros-pecting permit at a royalty of not less than 12 1/2 per centum in amount or value of the production nor more than the royalty rate pre-scribed by regulation in force on January 1, 1935, for secondary leases issued under this section, and under such other condi-tions as are fixed for oil or gas leases issued under section 226 of this title the royalty to be determined by competitive bidding or fixed by such other method as the Secretary may by regulations prescribe: Provided further, That the Secretary shall have the right to reject any or all bids. (30 U.S.C. 223)

Payments for Oil or Gas Taken Prior to Application for Lease

Sec. 15. Until the permittee shall apply for lease to the one quarter of

the permit area heretofore provided for he shall pay to the United States 20 per centum of the gross value of all oil or gas secured by him from the lands embraced within his per-mit and sold or otherwise disposed of or held by him for sale or other disposition. (30 U.S.C. 224)

Condition of Lease, Forfeiture for Violation

Sec. 16. All leases of lands con-taining oil or gas, made or issued under the provisions of this chapter, shall be subject to the condition that the lessee will, in conducting his explo-rations and mining operations, use all reasonable precautions to prevent waste of oil or gas developed in the land, or the entrance of water through wells drilled by him to the oil sands or oil-bearing strata, to the destruction or injury of the oil deposits. Violations of the provi-sions of this section shall constitute grounds for the forfeiture of the lease, to be en-forced as provided in this chapter. (30 U.S.C. 225)

Lease of Oil and Gas Lands

Sec. 17. (a) All lands subject to disposition under this chapter which are known or believed to contain oil or gas deposits may be leased by the Secretary.

(b)(1)(A) All lands to be leased which are not subject to leasing under paragraphs (2) and (3) of this sub-section shall be leased as provid-ed in this paragraph to the highest responsible qualified bidder by competitive bidding under general regulations in units of not more than 2,560 acres, except in Alaska, where units shall be not more than 5,760 acres. Such units shall be as nearly compact as possible. Lease sales shall be conducted by oral bidding. Lease sales shall be held for each State where eligible lands are avail-able at least quarterly and more frequently if the Secretary of the Interior deter-mines such sales are necessary. A lease shall be condi-tioned upon the pay-ment of a royalty at a rate of not less than 12.5 percent in amount or value of the production removed or sold from the lease. The Secretary shall accept the highest bid from a responsible qualified bidder which is equal to or greater than the national minimum acceptable bid, without evaluation of the value of the lands proposed for lease. Leases shall be issued within 60 days following payment by the successful bidder of the remainder of the bonus bid, if any, and the annual rental for the first lease year. All bids for less than the national minimum acceptable bid shall be rejected. Lands for which no bids are received or for which the highest bid is less than the national minimum acceptable bid shall be offered promptly within 30 days for leasing under subsection (c) of this section and shall remain available for leasing for a period of 2 years after the competitive lease sale.

(B) The national minimum acceptable bid shall be $2 per acre for a period of 2 years from December 22, 1987. Thereafter, the Secretary may establish by regulation a higher national minimum acceptable bid for all leases based upon a finding that such action is necessary:

(i) to enhance financial returns to the United States; and

(ii) to promote more efficient management of oil and gas resources on Federal lands.

Ninety days before the Secretary makes any change in the national minimum acceptable bid, the Secre-tary shall notify the Committee on Interior and Insular Affairs of the United States House of Representa-tives and the Committee on Energy and Natural Resources of the United States Senate. The pro-posal or promulgation of any regulation to establish a national minimum acceptable bid shall not be considered a major Federal action subject to the require-ments of section 4332(2)(C) of Title 42.

(2) If the lands to be leased are within a special tar sand area, they shall be leased to the highest re-sponsible qualified bidder by com-petitive bidding under general regu-la-tions in units of not more than five thousand one hundred and twenty acres, which shall be as nearly compact as possible, upon the payment by the lessee of such bonus as may be accepted by the Secretary. Royalty shall be 12 1/2 per centum in amount or value of production removed or sold from the lease, subject to subsection (k)(1)(c) of this section. The Secretary may lease such additional lands in special tar sand area as may be required in support of any operations necessary for the recovery of tar sands.

(3)(A) If the United States held a vested future interest in a mineral estate that, immediately prior to becoming a vested present interest, was subject to a lease under which oil or gas was being produced, or had a well capable of producing, in paying quantities at an annual average production volume per well per day of either not more than 15 barrels per day of oil or condensate, or not more than 60,000 cubic feet of gas, the holder of lease may elect to continue the lease as a noncompetitive lease under subsection (c)(1) of this section.

(B) An election under this paragraph is effective-

(i) in the case of an interest which vested after January 1, 1990, and on or before October 24, 1992, if the election is made before the date that is 1 year after October 24, 1992;

(ii) in the case of an interest which vests within 1 year after October 24, 1992, if the election is made before the date that is 2 years after October 24, 1992; and

(iii) in any case other than those described in clause (i) or (ii), if the election is made prior to the interest becoming a vested present interest.

(C) Notwithstanding the con-sent requirement referenced in sec-tion 352 of this title, the Secre-tary shall issue a noncompetitive lease under subsection (c)(1) of this section to a holder who makes an election under subparagraph (A) and who is qualified to hold a lease under this chapter. Such lease shall be subject to all terms and condi-tions under this chapter that are applica-ble to leases issued under subsection (c)(1) of this section.

(D) A lease issued pursuant to this paragraph shall continue so long as oil or gas continues to be pro-duced in paying quantities.

(E) This paragraph shall apply only to those lands under the

administration of the Secretary of Agriculture where the United States acquired an interest in such lands pursuant to the Act of March 1, 1911 (36 Stat. 961 and following).

(c)(1) If the lands to be leased are not leased under subsection (b)(1) of this section, or are not subject to competitive leasing under subsection (b)(2) of this section, the person first making application for the lease who is qualified to hold a lease under this chapter shall be entitled to a lease of such lands without competitive bidding, upon payment of a non-refundable application fee of at least $75. A lease under this subsection shall be conditioned upon the payment of a royalty at a rate of 12.5 percent in amount or value of the production removed or sold from the lease. Leases shall be issued within 60 days of the date on which the Secretary identifies the first responsible qualified applicant.

(2)(A) Lands (i) which were posted for sale under subsection (b)(1) of this section but for which no bids were received or for which the highest bid was less than the national minimum acceptable bid and (ii) for which, at the end of the period referred to in subsection (b)(1) of this section no lease has been issued and no lease application is pending under paragraph (1) of this subsection, shall again be avail-able for leasing only in accordance with subsection (b)(1) of this sec-tion.

(B) The land in any lease which is issued under paragraph (1) of this subsection or under subsec-tion (b)(1) of this section which lease terminates, expires, is canceled or is relin-quished shall again be available for leasing only in accor-dance with subsection (b)(1) of this section.

(d) All leases issued under this section as amended by the Federal Onshore Oil and Gas Leasing Re-form Act of 1987, shall be condi-tioned upon payment by the lessee of a rental of not less than $1.50 per acre per year for the first through fifth years of the lease and not less than $2.00 per acre per year for each year thereafter. A minimum royalty in lieu of rental of not less than the rental which otherwise would be required for that lease year shall be payable at the expira-tion of each lease year beginning on or after a discovery of oil or gas in paying quantities on the lands leased.

(e) Competitive and noncompeti-tive leases issued under this section shall be for a primary term of ten years: Provided, however, That competitive leases issued in special tar sand areas shall also be for a primary term of ten years. Each such lease shall continue so long after its primary term as oil or gas is produced in paying quantities. Any lease issued under this section for land on which, or for which under an approved cooperative or unit plan of development or operation, actual drilling operations were commenced prior to the end of its primary term and are being diligently prosecuted at that time shall be extended for two years and so long thereafter as oil or gas is produced in paying quantities.

(f) At least 45 days before offering lands for lease under this section, and at least 30 days before approving applications for permits to drill under the provisions of a lease or substantially modifying the terms of any lease issued under this section, the Secretary shall provide notice of the proposed action. Such notice shall be posted in the appropriate local office of the leasing and land management agency. Such notice shall include the terms or modified lease terms and maps or a narrative description of the affected lands. Where the inclusion of maps in such notice is not practicable, maps of the affected lands shall be made available to the public for review. Such maps shall show the location of all tracts to be leased, and of all the leases already issued in the general area. The requirements of this subsection are in addition to any public notice required by other law.

(g) The Secretary of the Interior, or for National Forest lands, the Secretary of Agriculture, shall regulate all surface-disturbing activities conducted pursuant to any lease issued under this chapter, and shall determine reclamation and other actions as required in the interests of conservation of surface resources. No permit to drill on an oil and gas lease issued under this chapter may be granted without the analysis and approval by the Secretary concerned of a plan of operations covering proposed surface-disturbing activities within the lease area. The Secretary concerned shall, by rule or regulation, establish such stan-dards as may be necessary to ensure that an adequate bond, surety, or other financial arrangement will be estab-lished prior to the commencement of surface disturbing activities on any lease, to ensure the complete and timely reclamation of the lease tract, and the restoration of any lands or surface waters adverse-ly affected by lease operations after the abandonment or cessation of oil and gas operations on the lease. The Secretary shall not issue a lease or leases or approve the assignment of any lease or leases under the terms of this sec-tion to any person, associ-ation, corporation, or any subsidiary, affiliate, or per-son controlled by or under common control with such person, association, or corporation, during any period in which, as de-termined by the Secretary of the Interior or Secretary of Agriculture, such entity has failed or refused to com-ply in any material respect with the reclamation requirements and other standards established under this section for any prior lease to which such re-quirements and stan-dards applied. Prior to making such determination with respect to any such entity, the con-cerned Secretary shall provide such entity with adequate notification and an opportuni-ty to comply with such reclamation requirements and other standards and shall consider whether any adminis-trative or judicial appeal is pending. Once the entity has com-plied with the reclamation require-ment or other standard concerned an oil or gas lease may be issued to such entity under this chapter.

(h) The Secretary of Interior may not issue any lease on National Forest System Lands reserved from the public domain over the objection of the Secretary of Agriculture.

(i) No lease issued under this sec-tion which is subject to termi-na-tion because of cessation of produc-tion shall be terminated for this cause so long as rework-ing or drill-ing opera-tions which were com-menced on the land prior to or within 60 days after cessation of production are con-duct-ed thereon with reasonable dili-gence, or so long as oil or gas is produced in paying quantities as a result of such opera-tions. No lease issued under this section shall expire because operations or produc-tion is suspended under any order, or with the consent of the Secretary. No lease issued under this section cov-ering lands on which there is a well capable of producing oil or gas in paying quantities shall expire be-cause the lessee fails to produce the same until the lessee is al-lowed a reasonable time, which shall be not less than 60 days after notice by registered or certi-fied mail, within which to place such well in produc-ing status or unless, after such status is estab-lished, production is discon-tinued on the lease premises without permis-sion granted by the Secre-tary under the provisions of this chapter.

(j) Whenever it appears to the Secretary that lands owned by the United States are being drained of oil or gas by wells drilled on adja-cent lands, he may negotiate agree-ments whereby the United States, or the United States and its lessees, shall be compensated for such drain-age. Such agreement shall be made with the consent of the les-sees, if any, affected thereby. If such agreement is entered into, the prima-ry term of any lease for which com-pensatory royalty is being paid, or any exten-sion of primary term, shall be ex-tended for the peri-od during which such com-pensatory royalty is paid and for a period of one year from discontinuance of such pay-ment and so long thereafter as oil or gas is produced in paying quantities. The Secretary shall report to Con-gress at the beginning of each regu-lar session all such agreements entered into during the previous year which involve un-leased Gov-ernment lands.

(k) If, during the primary term or extended term of any lease issued under this section, a verified state-ment is filed by any mining claim-ant pursu-ant to subsection (c) of section 527 of this title, whether such filing occurred prior to September 2, 1960 or thereafter, asserting the existence of a conflicting unpatented mining claim or claims upon which diligent work is being prosecuted as to any lands covered by the lease, the running of time under such lease shall be suspended as to the lands involved from the first day of the month following the filing of such verified statement until a final decision is rendered in the matter.

(l) The Secretary of the Interior shall upon timely application therefor, issue a new lease in exchange for any lease issued for a term of 20 years, or any renewal thereof, or any lease issued prior to August 8, 1946, in exchange for a 20 year lease, such new lease to be for a primary term of 5 years and so long thereafter as oil or gas is pro-duced in paying quantities and at a royalty rate of not less than 12.5 percent in amount or value of the production removed or sold from such leases, except that the royalty rate shall be 12.5 percent in amount or value of the production removed or sold from said leases as to (1) such leas-es, or such parts of the lands subject thereto and the depos-its underlying the same, are not be-lieved to be within the productive limits of any producing oil or gas deposits, as such produc-tive limits are found by the Secretary to have existed on August 8, 1946; and (2) any produc-tion 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 deter-mined by the Secretary to be a new deposit; and (3) any production on or allo-cated to a lease pursuant to an ap-proved coop-erative or unit plan of development or operation from an oil or gas deposit which was discovered after May 27, 1941, on land committed to such plan, and which is determined by the Secre-tary to be a new deposit, where such lease, or a lease for which it is exchanged, was included in such plan at the time of discovery or was included in a duly executed and filed applica-tion for the approval of such plan at the time of discovery.

(m) For the purpose of more properly conserving the natural resources of any oil or gas pool, field, or like area, or any part there-of (whether or not any part of said oil or gas pool, field, or like area, is then subject to any cooperative or unit plan of develop-ment or opera-tion), lessees thereof and their repre-sentatives may unite with each other, or jointly or separately with others, in collectively adopting and operating under a cooperative or unit plan of development or opera-tion of such pool, field, or like area, or any part thereof, whenever deter-mined and certified by the Secretary of the Interior to be neces-sary or advisable in the public inter-est. The Secretary is thereunto authorized, in his discretion, with the consent of the holders of leases involved, to establish, alter, change, or revoke drilling, producing, rental, minimum royalty, and royalty requirements of such leases and to make such regulations with reference to such leases, with like consent on the part of the lessees, in connection with the insti-tution and operation of any such cooperative or unit plan as he may deem necessary or proper to secure the proper pro-tection of the public inter-est. The Secretary may provide that oil and gas leases hereafter issued under this chapter shall contain a provision requiring the lessee to operate under such a rea-sonable cooperative or unit plan, and he may prescribe such a plan under which such lessee shall oper-ate, which shall adequately protect the rights of all parties in interest, in-cluding the United States.

Any plan authorized by the pre-ceding paragraph which includes lands owned by the United States may, in the discretion of the Secretary, contain a provision whereby authority is vest-ed in the Secretary of the Interior, or any such person, committee, or State or Federal offi-cer or agency as may be designated in the plan, to alter or modify from time to time the rate of prospecting and development and the quantity and rate of production under such plan. All leases operated under any such plan approved or pre-scribed by the Secretary shall be excepted in deter-mining holdings or control under the provisions of any section of this chapter.

When separate tracts cannot be independently developed and operat-ed in conformity with an established well-spacing or development pro-gram, any lease or a portion thereof, may be pooled with other lands, whether or not owned by the United States, under a communitization or drilling agree-ment providing for an apportionment of production or royalties among the separate tracts of land comprising the drilling or spacing unit when determined by the Secre-tary of the Interior to be in the public interest, and operations or production pursu-ant to such an agreement shall be deemed to be operations or production as to each such lease committed thereto.

Any lease issued for a term of twenty years, or any renewal there-of, or any portion of such lease that has be-come the subject of a cooper-ative or unit plan of development or operation of a pool, field, or like area, which plan has the approval of the Secretary of the Interior, shall continue in force until the termina-tion of such plan. Any other lease issued under any section of this chapter which has heretofore or may hereafter be committed to any such plan that contains a general provi-sion for allocation of oil or gas shall contin-ue in force and effect as to the land committed so long as the lease remains subject to the plan: Provided, That production is had in paying quanti-ties under the plan prior to the expira-tion date of the term of such lease. Any lease here-tofore or hereafter com-mitted to any such plan embracing lands that are in part within and in part outside of the area covered by any such plan shall be segregated into sepa-rate leases as to the lands committed and the lands not committed as of the effec-tive date of unitization: Provid-ed, however, That any such lease as to the nonunitized portion shall continue in force and effect for the term thereof but for not less than two years from the date of such segregation and so long there-after as oil and gas is produced in paying quantities. The minimum royalty or discovery rental under any lease that has become subject to any coopera-tive or unit plan of development or operation, or other plan that contains a general provi-sion for allocation of oil or gas, shall be payable only with respect to the lands subject to such lease to which oil or gas shall be allocated under such plan. Any lease which shall be eliminated from any such approved or prescribed plan, of from any communitization or drilling agree-ment authorized by this sec-tion, and any lease which shall be in effect at the termi-nation of any such approved or prescribed plan, or at the termination of any such communitization or drilling agree-ment, unless relinquished, shall con-tinue in effect for the original term thereof, but for not less than two years, and so long thereafter as oil or gas is produced in paying quanti-ties.

The Secretary of the Interior is hereby authorized, on such condi-tions as he may prescribe, to ap-prove operat-ing, drilling, or devel-opment con-tracts made by one or more lessees of oil or gas leases, with one or more persons, associations, or corporations whenever, in his discretion, the conservation of natural products or the public con-venience or necessity may require it or the interests of the United States may be best subserved thereby. All leases operated under such approved oper-ating, drilling, or development con-tracts, and interests thereunder, shall be except-ed in determining holdings or con-trol under the provi-sion of this chapter.

The Secretary of the Interior, to avoid waste or to promote conserva-tion of natural resources, may autho-rize the subsurface storage of oil or gas, whether or not produced from federally owned lands, in lands leased or subject to lease under this chapter. Such authoriza-tion may provide for the payment of a storage fee or rental on such stored oil or gas or, in lieu of such fee or rental, for a royalty other than that prescribed in the lease when such stored oil or gas is produced in con-junction with oil or gas not previ-ously pro-duced. Any lease on which storage is so authorized shall be extended at least for the period of storage and so long there-after as oil or gas not previously produced is produced in paying quantities.

(n)(1)(A) The owner of (1) an oil and gas lease issued prior to No-vember 16, 1981, or (2) a valid claim to any hydrocarbon resources leasable under this section based on a mineral location made prior to January 21, 1926, and located with-in a special tar sand area shall be entitled to convert such lease or claim to a combined hydrocarbon lease for a primary term of ten years upon the filing of an application within two years from November 16, 1981, contain-ing an acceptable plan of operations which assures reasonable protection of the environ-ment and diligent devel-op-ment of those resources requiring enhanced recovery methods of de-vel-opment or mining. For purposes of conver-sion, no claim shall be deemed invalid solely because it was located as a placer location rather than a lode location or vice versa, notwith-standing any previous adjudication on that issue.

(B) The Secretary shall issue final regulations to implement this section within six months of No-vember 16, 1981. If any oil and gas lease eligible for conversion under this section would otherwise expire after November 16, 1981, and before six months following the issuance of implementing regula-tions, the lessee may preserve his conversion right under such lease for a period ending six months after the issuance of implementing regulations by filing with the Sec-re-tary, before the expiration of the lease, a notice of intent to file an application for conversion. Upon submission of a complete plan of operations in substantial compliance with the regulations promulgated by the Sec-retary for the filing of such plans, the Secretary shall suspend the running of the terms of any oil and gas lease proposed for conver-sion until the plan is finally approved or disapproved. The Secretary shall act upon a proposed plan of opera-tions within fifteen months of its submittal.

(C) When an existing oil and gas lease is converted to a combined hydrocarbon lease, the royalty shall be that provided for in the original oil and gas lease and for a converted mining claim, 12.5 per centum in amount or value of pro-duction removed or sold from the lease.

(2) Except as provided in this section, nothing in the Combined Hydrocarbon Leasing Act of 1981 shall be construed to dimin-ish or in-crease the rights of any lessee under any oil and gas lease issued prior to No-vember 16, 1981.

(o)(1) Prior to the commence-ment of surface-disturbing activities relat-ing to the development of oil and gas deposits on lands described under paragraph (5), the Secretary of Agriculture shall require, pursu-ant to regulations promulgated by the Secretary, that such activities be subject to terms and conditions as provided under para-graph (2).

(2) The terms and conditions referred to in paragraph (1) shall require that reasonable advance notice be furnished to the Secretary of Agriculture at lease 60 days prior to the com-mencement of surface dis-turbing activities.

(3) Advance notice under para-graph (2) shall include each of the following items of information:

(A) A designated field rep-re-sentative.

(B) A map showing the location and dimensions of all im-prove-ments, including but not limited to, well sites and road and pipeline accesses.

(C) A plan of operations, of an interim character if necessary, setting forth a schedule for con-struc-tion and drilling.

(D) A plan of erosion and sedimentation control.

(E) Proof of ownership of mineral title. Nothing in this sub-sec-tion shall be construed to affect any authority of the State in which the lands concerned are located to impose any require-ments with re-spect to such oil and gas opera-tions. (4) The person proposing to develop oil and gas deposits on lands described under paragraph (5) shall either-

(A) permit the Secretary to market merchantable timber owned by the United States on lands sub-ject to such activities; or

(B) arrange to purchase merchantable timber on lands sub-ject to such surface disturbing activ-ities from the Secretary of Agricul-ture, or otherwise arrange for the disposition of such mer-chantable timber, upon such terms and upon such advance notice of the items referred to in subparagraphs (A) through (E) of paragraph (3) as the Secretary may accept.

(5)(A) The lands referred to in this subsection are those lands referenced in subparagraph (B) which are under the administration of the Secretary of Agriculture where the United States acquired an inter-est in such lands pursuant to the Act of March 1, 1911 (36 Stat. 961 and follow-ing), but does not have an interest in oil and gas de-posits that may be present under such lands. This subsection does not apply to any such lands where, under the provisions of its acquisi-tion of an interest in the lands, the United States is to acquire any oil and gas deposits that may be present under such lands in the future but such interest has not yet vested with the United States.

(B) This subsection shall only apply in the Allegheny Nation-al Forest. (30 U.S.C. 226)

Sec. 18. Omitted. (This section authorized the United States to issue leases for a period of twenty years to persons who relinquished all rights claimed or possessed prior to July 3, 1910 under preexisting plac-er mining law provided relinquish-ment was filed in the General Land Office within six months after Feb. 25, 1920.) (30 U.S.C. 227)

Prospecting Permits and Leases to Persons of Lands Not Withdrawn

Sec. 19. 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 are not withdrawn from oil or gas location and entry, and who had previously performed all acts under then existing laws neces-sary to valid locations thereof ex-cept 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 thereof 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 pro-vided for in this chapter, or where any such person has made such discovery, prior to said February 25, 1920, he shall be enti-tled to a lease thereon under such terms as the Secretary of the Interior may pre-scribe unless otherwise provided for in section 227 of this title: Provided, That where such prospecting permit is granted upon land within any known geologic structure of a pro-ducing oil or gas field, the royalty to be fixed in any lease thereafter granted thereon or any portion thereof shall be not less than 12 1/2 per centum of all the oil or gas produced except oil or gas used for production purposes on the claim, or

unavoidably lost: Provided, howev-er, That the provisions of this sec-tion shall not apply to lands re-served for the use of the Navy. No claim-ant for a permit or lease who has been guilty of any fraud or who had knowledge or reasonable grounds to know of any fraud, or who has not acted honestly and in good faith, shall be entitled to any of the bene-fits of this section.

All permits or leases hereunder shall insure to the benefit of the claimant and all persons claiming through or under him by lease, contract, or otherwise, as their inter-ests may appear. (30 U.S.C. 228)

Preference Right to Permits or Leases of Claimants of Agricultur-al Land

Sec. 20. In the case of lands bona fide entered as agricultural, and not withdrawn or classified as mineral at the time of entry, but not includ-ing lands claimed under any railroad grant, the entryman or pat-entee, or assigns, where assignment was made prior to January 1, 1918, if the entry has been patented with the mineral right reserved, shall be entitled to a pref-erence right to a permit and to a lease, as herein provided, in case of discov-ery; and within an area not greater than a township such entryman and pat-en-tees, or assigns holding restricted patents may combine 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 pay-ment of a royalty of not less than 12 1/2 per centum as to such areas within the permit as may not be included with-in the discovery lease to which the permit-tee is entitled under section 223 of this title. (30 U.S.C. 229)

Leases of Lands

Sec. 21. (a) The Secretary of the Interior is hereby authorized to lease to any person or corporation quali-fied under this chapter any deposits of oil shale, and gilsonite (including all vein-type solid hydrocarbons) be-longing to the United States and the surface of so much of the public lands contain-ing such deposits, or land adjacent thereto, as may be required for the extraction and reduction of the leased minerals, under such rules and regulations, not inconsistent with this chapter, as he may prescribe. No lease hereunder shall exceed five thousand one hundred and twenty acres of land, to be described by the legal subdivisions of the public-land surveys, or if unsur-veyed, to be surveyed by the United States, at the expense of the applicant, in accor-dance with regula-tions to be prescribed by the Secre-tary of the Interior. Leases may be indeterminate periods, upon such conditions as may be imposed by the Secretary of the Interior, includ-ing covenants relative to methods of mining, prevention of waste, and productive development. For the privilege of mining, extracting, and disposing of the oil or other miner-als covered by a lease under this section the lessee shall pay to the United States such royalties as shall be specified in the lease and an annual rental, payable at the begin-ning of each year, at the rate of 50 cents per acre per annum, for the lands in-cluded in the lease, the rental paid for any one year to be credited against the royalties accruing for that year; such royalties to be sub-ject to readjust-ment at the end of each twenty-year peri-od by the Secretary of Interior. For the purpose of encouraging the production of petroleum products from shales the Secretary may, in his discretion, waive the payment of any royalty and rental during the first five years of any lease. Any person having a valid claim to such minerals under existing laws on January 1, 1919, shall, upon the relinquish-ment of such claim, be entitled to a lease under the provi-sions of this section for such an area of the land relin-quished as shall not exceed the maximum area authorized by this section to be leased to an individual or corporation. No claimant for a lease who has been guilty of any fraud or who had knowl-edge or reasonable grounds to know of any fraud, or who has not acted honestly and in good faith, shall be entitled to any of the bene-fits of this section. Not more than one lease shall be granted under this section to any one person, associa-tion, or corpora-tion except that with respect to leases for gilsonite (in-clud-ing all vein-type solid hydrocar-bons) no person, association, or corporation shall acquire or hold more than seven thousand six hun-dred eighty acres in any one State with-out re-spect to number of leases.

(b) If an offer for a lease under the provisions of this section for deposits other than oil shale is based upon a mineral location, the validity of which might be ques-tioned be-cause the claim was based on a placer location rather than on a lode loca-tion, or vice versa, the offeror shall have a preference right to a lease of the offer is filed not more than one year after September 2, 1960.

(c) With respect to gilsonite (including all vein-type solid hy-drocar-bons) a lease under the multiple use principle may issue notwithstanding the existence of an out-standing lease issued under any other provision of this chapter.

(d)(1) The Secretary may within the State of Colorado lease to the holder of the Federal oil shale lease known as Federal Prototype Tract C-a additional lands necessary for the disposal of oil shale wastes and the materials removed from the mined lands, and for the building of plants, reduction works, and other facilities connected with oil shale operations (which lease shall be referred to hereinafter as an "offsite lease"). The Secretary may only issue one offsite lease not to exceed six thousand four hundred acres. An offsite lease may not serve more than one Federal oil shale lease and may not be transferred except in conjunction with the transfer of the Federal oil shale lease that it serves.

(2) The Secretary may issue one offsite lease of not more than three hundred and twenty acres to any person, association or corpora-tion which has the right to develop oil shale on non-Federal lands. An offsite lease serving non-Federal oil shale land may not serve more than one oil shale opera-tion and may not be transferred except in conjunction with the transfer of the non-Federal oil shale land that it serves. Not more than two offsite leases may be issued under this paragraph.

(3) An offsite lease shall in-clude no rights to any mineral de-posits.

(4) The Secretary may issue offsite leases after consideration of the need for such lands, impacts of the envi-ronment and other resource values, and upon a determination that the public interest will be served thereby.

(5) An offsite lease for lands the surface of which is under the jurisdiction of a Federal agency other than the Department of the Interior shall be issued only with the consent of that other Federal agency and shall be subject to such terms and conditions as it may prescribe.

(6) An offsite lease shall be for such periods of time and shall include such lands, subject to the acreage limitations contained in this subsection, as the Secretary determines to be necessary to achieve the purposes for which the lease is issued, and shall contain such provisions as he determined are needed for protection of environmental and other resource values.

(7) An offsite lease shall provide for the payment of an annual rental which shall reflect the fair market value of the rights granted and which shall be subject to such revisions as the Secretary, in his discretion, determines may be needed from time to time to continue to reflect the fair market value.

(8) An offsite lease may, at the option of the lessee, include provisions for payments on any year which payments shall be credited against any portion of the annual rental for a subsequent year to the extent that such payment is payable by the Secretary of the Treasury under section 191 of this title to the State within the boundaries of which the leases lands are located. Such funds shall be paid by the Secretary of the Treasury to the appropriate State in accordance with section 191 of this title, and such funds shall be distributed by the State only to those counties, municipalities, or jurisdictional subdivisions impacted by oil shale development and/or where the lease is sited.

(9) An offsite lease shall remain subject to leasing under the other provisions of this chapter where such leasing would be incompatible with the offsite lease.

(e) In recognition of the unique character of oil shale development:

(1) In determining whether to offer or issue an offsite lease under subsection (d) of this section, the Secretary shall consult with the Governor and appropriate State, local, and tribal officials of the State where the lands to be leased are located, and of any additional State likely to be affected significantly by the social, econom-ic, or environ-mental effects of de-velopment under such a lease, in order to coordinate Federal and State planning processes, minimize duplication of permits, avoid delays, and anticipate and mit-igate likely impacts of development.

(2) The Secretary may issue an offsite lease under this subsection after consideration of (A) the need for leasing, (B) impacts on the envi-ron-ment and other resources values, (C) socioeco-nomic factors, and (D) information from consultations with the Governors of the affected States.

(3) Before determining whether to offer an offsite lease under subsection (d) of this section, the Secretary shall seek the recommendation of the Governor of the State in which the lands to be leased are located as to whether or not to lease such lands, what alternative actions are available, and what special conditions could be added to the proposed lease to mitigate impacts. The Secretary shall accept the rec-om-mendations of the Gover-nor if he determines that they pro-vide for a reasonable balance be-tween the national interest and the State's inter-ests. The Secretary shall com-muni-cate to the Governor, in writ-ing, and publish in the Feder-al Reg-ister the reasons for his deter-mi-nation to accept or reject such Governor's recommendations. (30 U.S.C. 241)

Leases to Claimants of With-drawn Lands

Sec. 22. Any bona fide occupant or claimant of oil or gas bearing lands in the Territory of Alaska, who, or whose predecessors in inter-est, prior to withdrawal had com-piled otherwise with the require-ments of the mining laws, but had made no discovery of oil or gas in wells and who prior to withdraw-al had made substantial improvements for the discovery of oil or gas on or for each location or had prior to February 25, 1920 expended not less than $250 in improvements on or for each loca-tion shall be entitled, upon relin-quishment or surrender to the United States within one year from February 25, 1920, or within six months after final denial or withdrawal of application for patent, to a lease or leases, under this chapter covering such lands, not exceeding five leases in number and not ex-ceeding an aggregate of one thou-sand two hundred and eighty acres in each: Provided, That the annual lease rentals for lands in the Territo-ry of Alaska not within any known geological struc-ture of a producing oil or gas field and the royalty pay-ments from produc-tion of oil or gas sold or removed from such lands shall be identical with those pre-scribed for such leases covering similar lands in the States of the United States, except that leases which may issue pursuant to appli-cations or offers to lease such lands, which applications or offers were filed prior to and were pending on May 3, 1958, shall require the pay-ment of 25 cents per acre as lease rental for the first year of such leas-es; but the aforesaid excep-tion shall not apply in any way to royal-ties to be re-quired under leases which may issue pursuant to offers or applica-tions filed prior to May 3, 1958.

The Secretary of the Interior shall neither prescribe nor approve any cooperative or unit plan of de-velop-ment or operation nor any operating,

drilling, or development contract establishing different royalty or rental rates for Alaska lands than for simi-lar lands within the States of the United States.

No claimant for a lease who has been guilty of any fraud or who had knowledge or reasonable 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. (30 U.S.C. 251)

Prospecting Permits; Lands In-clud-ed; Acreage

Sec. 23. The Secretary of the Interior is hereby authorized, under such rules and regulations as he may prescribe, to grant to any quali-fied applicant a prospecting permit which shall give the exclusive right to prospect for chlorides, sulphates, carbonates, borates, silicates, or nitrates of sodi-um in lands belong-ing to the United States for a period of not exceeding two years: Provid-ed, That the area to be in-clud-ed in such a permit shall not exceed two thousand five hundred and sixty acres of land in reasonably compact form. (30 U.S.C. 261)

Leases to Permittees; Survey of Lands; Royalties and Annual Rent-als

Sec. 24. Upon showing to the satisfaction of the Secretary of the Interior that valuable deposits of one of the substances enumerated in section 261 of this title have been discovered by the permittee within the area cov-ered by his permit and that such land is chiefly valuable therefor, the permittee shall be entitled to a lease for any or all of the land embraced in the prospecting permit at a royalty of not less than 2 per centum of the quantity or gross value of the output of sodium com-pounds and other related prod-ucts at the point of shipment to mar-ket; the lands in such lease to be taken in compact form by legal subdivisions of the public land surveys or, if the land be not surveyed, by survey executed at the cost of the permittee in accordance with regulations prescribed by the Secretary of the Interior. Lands known to contain valuable deposits of one of the substances enumerated in section 261 of this title and not covered by permits or leases shall be subject to lease by the Secretary of the Interior through advertisement, competitive bidding, or such other methods as he may by general regulations adopt and in such areas as he shall fix, not exceeding two thousand five hundred and sixty acres. All leases under this section shall be condi-tioned upon the payment by the lessee of such royalty as may be fixed in the lease, not less than 2 per centum of the quantity or gross value of the output of sodium com-pounds and other related products at the point of shipment to market, and the payment in advance of a rental of 25 cents per acre for the first calen-dar year or fraction thereof, 50 cents pr acre for the second, third, fourth, and fifth calendar years respectively; and $1 per acre per annum thereafter during the continu-ance of the lease, such rental for any one year to be credited against royalties accruing for that year. Leases under this section shall be for a period of twenty years, with pref-erential right in the lessee to renew for successive periods of ten years upon such reasonable terms and conditions as may be prescribed by the Secretary of the Interior unless otherwise provided by law at the expiration of such period: Pro-vided, That nothing in this chapter shall prohibit the mining and sale of sodium compounds under potassium leases issued pursuant to sub chapter VII [141 et seq.] of chapter 3 of this title and subchapter IX of this chapter, nor the mining and sale of po-tas-sium com-pounds as a by-product from sodium leases taken under this section: Provided further, That on application by any lessee the Secretary of the Interior is authorized to modify the rental and royalty provisions stipulated in any existing sodium lease to conform to the provisions of this section. (30 U.S.C. 262)

Permits to Use or Lease of Nonmineral Lands

Sec. 25. In addition to areas of such mineral land which may be included in any such prospecting permits or leases, the Secretary of the Interior, in his discretion, may grant to a per-mittee or lessee of lands containing sodium deposits, and subject to the payment of an annual rental of not less than 25 cents per acre, the exclusive right to use, during the life of the permit or lease, a tract of unoccupied non-mineral public land, not exceed-ing forty acres in area, for camp sites, refining works, and other purposes connected with and neces-sary to the proper develop-ment and use of the deposits cov-ered by the permit or lease. (30 U.S.C. 263)

Cancellation of Prospecting Permits

Sec. 26. The Secretary of the Interior shall reserve and may exercise the authority to cancel any prospecting permit upon failure by the permittee to exercise due diligence in the prosecution of the prospecting work in accordance with the terms and conditions stated in the permit, and shall insert in every such permit issued under the provisions of this chapter appropriate provisions for its cancellation by him. (30 U.S.C. 183)

Limitations on Leases

Sec. 27. (a)(1) No person, asso-ciation, or corporation, or any sub-sidiary, affiliate, or persons con-trolled by or under common control with such person, association, or corporation shall take, hold, own or control at one time, whether ac-quired directly from the Secretary under this chapter or otherwise, coal leases or permits on an aggre-gate of more than forty-six thousand and eighty acres in any one State and in no case greater than an ag-gregate of one hundred thousand acres in the Unit-ed States: Provid-ed, That any per-son, association, or corporation currently holding, own-ing, or con-trolling more than an aggregate of one hundred thou-sand acres in the United States on the date of enactment of this section shall not be required on account of this section to relinquish said leases or permits: Provided further, that in no case shall such person, associa-tion, or corpora-tion be permitted to take, hold, own, or control any fur-ther Federal coal leases or permits until such time as their holding, ownership, or control of Federal leases or permits has been reduced below an aggregate of one hundred thousand acres within the United States.

(2) Repealed. P.L. 94-377, sec. 11(b), Aug. 4, 1976, 90 Stat. 1090.

(b)(1) No person, association, or corporation, except as otherwise provided in this subsection, shall take, hold, own, or control at one time, whether acquired directly from the Secretary under this chapter, or otherwise, sodium leases or permits on an aggregate of more than five thou-sand one hundred and twenty acres in any one State.

(2) The Secretary may, in his discretion, where the same is neces-sary in order to secure the economic mining of sodium compounds leas-able under this chapter, permit a person, associa-tion, or corporation to take or hold sodium leases or permits on up to fifteen thousand three hundred and sixty acres in any one State.

(c) No person, association, or corporation shall take, hold, own, or control at one time, whether ac-quired directly from the Secretary under this chapter, or otherwise, phosphate leases or permits on an aggregate of more than twenty thou-sand four hundred and eighty acres in the United States.

(d)(1) No person, association, or corporation, except as otherwise provided in the chapter, shall take, hold, own or control at one time, whether acquired directly from the Secretary under this chapter, or otherwise, oil or gas leases (includ-ing options for such leases or inter-ests therein) on land held under the provisions of this chapter exceeding in the aggregate two hundred forty-six thousand and eighty acres in any one State other than Alaska. Provided, however, That acreage held in special tar sand areas shall not be chargeable against such State limitations. In the case of the State of Alaska, the limit shall be three hundred thousand acres in the north-ern leasing district and three hun-dred thousand acres in the south-ern leasing district, and the boundary between said two districts shall be the left limit of the Tanana River from the border between the United States and Canada to the confluence of the Tanana and Yukon Rivers, and the left limit of the Yukon River from said confluence to its principal southern mouth.

(2) No person, association, or corporation shall take, hold, own, or control at one time options to acquire interests in oil or gas leases under the provisions of this chapter which involve, in the aggregate, more than two hundred thousand acres of land in any one State other than Alaska or, in the case of Alaska, more than two hundred thousand acres in each of its two leasing districts, as hereinbefore described. No option to acquire any interest in such an oil or gas lease shall be enforceable if entered into for a period of more than three years (which three years shall be inclusive of any renewal period if a right to renew is reserved by any party to the option) without the prior approval of the Secretary. In any case in which an option to acquire the optionor's entire interest in the whole or a part of the acreage under a lease is entered into, the acreage to which the option is applicable shall be charged both to the optionor and to the optionee, but the charge to the optionor shall cease when the option is exercised. In any case in which an option to acquire a part of the optionor's interest in the whole or a part of the acreage under a lease is entered into, the acreage to which the option is applicable shall be fully charged to the optionor and a share thereof shall also be charged to the optionee as his interest may appear, but after the option is exer-cised said acreage shall be charged to the parties pro rata as their inter-ests may appear. In any case in which an assignment is made of a part of a lessee's inter-est in the whole or part of the acre-age under a lease or an applica-tion for a lease, the acreage shall be charged to the parties pro rata as their interests may appear. No option or renewal there-of shall be enforceable until notice thereof has been filed with the Secretary or an officer or em-ployee of the Depart-ment of the Interior desig-nated by him to re-ceive the same. Each such notice shall include, in addition to any other matters prescribed by the Secretary, the names and addresses of the parties thereto, the serial number of the lease or application for a lease to which the option is applicable, and a statement of the number of acres covered thereby and of the interests and obligations of the parties thereto and shall be subscribed by all parties to the option or their duly authorized agents. An option which has not been exercised shall remain charged as hereinbefore provided until notice of its relinquishment or surrender has been filed, by wither party, with the Secretary or any officer or employee of the Department of the Interior designated by him to receive the same. In addition, each holder of any such option shall file with the Secretary or an officer or employee of the Department of the Interior as aforesaid within ninety days after the 30th day of June and the 31st day of December in each year a statement showing, in addition to any other matters prescribed by the Secretary, his name, the name and address of each grantor of an option held by him, the serial number of every lease or application for a lease to which such an option is applicable, the number of acres covered by each such option, the total acreage in each State to which such options are applicable, and his interest and obligation under each such option. The failure of the holder of an option so to file shall render the option unenforceable by him. The unenforcibility of any option under the provisions of this paragraph shall no diminish the number of acres deemed to be held under op-tion by any person, association, or cor-pora-tion in computing the amount chargeable under the first sentence of this paragraph and shall not re-lieve any party thereto of any liability to cancellation, forfeiture, forced disposition, or other sanction provided by law. The Secretary may prescribe forms on which the notice and statements required by this paragraph shall be made.

(e)(1) No person, association, or corporation shall take, hold, own or control at one time any interest as a member of an association or as a stockholder in a corporation holding a lease, option, or permit under the provisions of this chapter which, together with the area embraced in any direct holding, ownership or control by him of such a lease, option, or permit or any other inter-est which he may have as a member of other associations or as a stock-holder in other corporations holding, owning or controlling such leases, options, or permits for any kind of minerals, exceeds in the aggregate an amount equivalent to the maxi-mum number of acres of the respec-tive kinds of minerals allowed to any one lessee, optionee, or permit-tee under this chapter, except that no person shall be charged with his pro rata share of any acreage hold-ings of any association or cor-pora-tion unless he is the bene-ficial own-er of more than 10 per centum of the stock or other instruments of owner-ship or control of such associ-a-tion or corpo-ration, and ex-cept that within three years after Septem-ber 2, 1960 no valid option in existence prior to Septem-ber 2, 1960 held by a corporation or asso-ciation on Sep-tember 2, 1960 shall be chargeable to any stockholder of such corpora-tion or to a member of such associa-tion so long as said option shall be so held by such corporation or asso-ciation under the provisions of this chapter.

(2) No contract for development and operation of any lands leased under this chapter, whether or not coupled with an interest in such lease, and no lease held, owned, or controlled in common by two or more persons, associations, or cor-po-rations shall be deemed to create a separate associa-tion under the preceding paragraph of this subsection between or among the contracting parties or those who hold, own or control the lease in common, but the proportionate interest of each such party shall be charged against the total acreage permitted to be held, owned or controlled by such party under this chapter. The total acreage so held, owned, or controlled in common by two or more parties shall not exceed, in the aggregate, an amount equivalent to the maximum number of acres of the respective kinds of minerals allowed to any one lessee, optionee, or permittee under this chapter.

(f) Nothing contained in subsection (e) of this section shall be construed (i) to limit sections 227, 228, 251 of this title or (ii), subject to the approval of the Secretary, to prevent any number of lessees under this chapter from combining their several interests so far as may be necessary for the purpose of constructing and carrying on the business of a refinery or of establishing and constructing, as a common carrier, a pipeline or railroad to be operated and used by them jointly in the transportation of oil from their several wells or from the wells of other lessees under this chapter or in the transportation of coal or (iii) to increase the acreage which may be taken, held, owned, or controlled under this section.

(g) Any ownership or interest otherwise forbidden in this chapter which may be acquired by descent, will, judgment, or decree may be held for two years after its acquisition and no longer.

(h)(1) If any interest in any lease is owned, or controlled, directly or indirectly, by means of stock or otherwise, in violation of any of the provisions of this chapter, the lease may be canceled, or the interest so owned may be compelled to dispose of the interest, in any appropriate proceed-ing instituted by the Attorney General. Such a proceeding shall be instituted in the United States district court for the district in which the leased property or some part thereof is located or in which the defendant may be found.

(2) The right to cancel or forfeit for violation of any of the provisions of this chapter shall not apply so as to affect adversely the title or inter-est of a bona fide pur-chaser of any lease, interest in a lease, option to acquire a lease or an interest therein, or per-mit which lease, interest, option or permit was acquired and is held by a quali-fied person, association, or corpora-tion in conformity with those provisions, even though the holdings of the person, association, or corporation from which the lease, interest, op-tion, or permit was acquired, or of his predecessor in title (including the original lessee of the United States) may have been canceled or forfeited or may be or may have been subject to cancellation or forfeiture for any such violation. If, in any such proceeding, an un-derly-ing lease, interest, option, or permit is canceled or forfeited to the Gov-ernment the there are valid interests therein or valid options to acquire the lease or an interest therein which are not subject to cancellation, forfeiture, or compulsory disposition, the underlying lease, inter-est, option, or permit shall be sold by the Secretary to the highest responsible qualified bidder by competitive bidding under gener-al regulations subject to all outstanding valid interests therein and valid options pertaining thereto. Likewise if, in any such proceeding, less than the whole interest in a lease, inter-est, option, or permit is canceled or forfeited to the Government, the partial interests so canceled or forfeited shall be sold by the Secretary to the highest respon-sible qualified bidder by competitive bidding under general regulations. If com-petitive bidding fails to pro-duce a satisfacto-ry offer the Secre-tary may, in either of these cases, sell the interest in question by such other method as he deems appropri-ate on terms not less favorable to the Government than those of the best competitive bid received.

(3) The commencement and conclusion of every proceeding under this subsection shall be promptly noted on the appropriate public records of the Bureau of Land Management.

(i) Effective September 21, 1959, any person, association, or corpo-ra-tion who is a party to any proceed-ing with respect to a viola-tion of any provision of this chapter, wheth-er initiated prior to said date or thereafter, shall have the right to be dismissed prompt-ly as such a party upon showing that he holds and acquired as a bona fide purchas-er the interest involving him as such a party without violating any provisions of this chapter. No hearing upon any such showing shall be re-quired unless the Secretary pres-ents prima facie evidence indicat-ing a possible viola-tion of this chapter on the part of the alleged bona fide purchaser.

(j) If during any such proceed-ing, a party thereto files with the Secre-tary a waiver of his rights under his lease (including particularly, where

applicable, rights to drill and to assign) or if such rights are sus-pended by the Secretary pending a decision in the proceeding, whether initiated prior to enactment of this chapter or thereaf-ter, payment of rentals and running of time against the term of the lease or leases in-volved shall be suspended as of the first day of the month following the filing of the waiver or suspension of the rights until the first day of the month following the final decision in the proceeding or the revocation of the waiver or suspension.

(k) Except as otherwise provided in this chapter, if any lands or de-posits subject to the provisions of this chapter shall be subleased, trusteed, possessed, or controlled by any device permanently, temporari-ly, directly, indirectly, tacitly, or in any manner whatsoever, so that they form a part of or are in any wise controlled by any combination in the form of an un-lawful trust, with the consent of the lessee, optionee, or permittee, or form the subject of any contract or conspira-cy in re-straint of trade in the mining or selling of coal, phosphate, oil, oil shale, gilsonite (including all vein-type solid hydrocarbons), gas, or sodium entered into by the lessee, optionee, or permittee or any agreement or understanding, written, verbal, or otherwise, to which such lessee, optionee, or permittee shall be a party, of which his or its output is to be or become the sub-ject, to control the price or prices thereof or of any holding of such lands by any individual, partnership, associa-tion, corporation, or control in excess of the amounts of lands provided in this chapter, the lease, option, or permit shall be forfeited by appro-priate court proceedings.

(l)(1) At each stage in the formulation and promulgation of rules and regulations concerning coal leasing pursuant to this chapter, and at each stage in the issuance, renew-al, and read-justment of coal leases under this chapter, the Secre-tary of the Interior shall con-sult with and give due consider-ation to the views and advice of the At-tor-ney General of the United States.

(2) No coal lease may be issued, renewed, or readjusted under this chapter until at least thirty days after the Secretary of the Interior notifies the Attorney General of the proposed issuance, renewal, or read-justment. Such notification shall contain such infor-mation as the Attorney General may require in order to advise the Secretary of the Interior as to whether such lease would create or maintain a situation incon-sistent with the anti-trust laws. If the Attorney General advises the Secre-tary of the Interior that a lease would create or main-tain such a situation, the Secretary of the Interi-or that a lease would create or main-tain such a situation, the Secre-tary of the Interi-or may not issue such lease, not may he renew or readjust such lease for a period not to exceed one year, as the case may be, unless he thereafter conducts a public hearing on the record in ac-cordance with subchapter II of chap-ter 5 of Title 5 and finds there-in that such issuance, renewal, or read-just-ment is neces-sary to effectu-ate the purposes of this chap-ter, that it is consistent with the public interest, and that there are no rea-sonable alternatives consistent with this chapter, the antitrust laws, and the public interest.

(3) Nothing in this chapter shall be deemed to convey to any person, association, corporation, or other business organization immunity from civil or criminal liability, or to create de-fenses to actions, under any antitrust law.

(4) As used in this subsection, the term "antitrust law" means-

(A) the Act entitled "An Act to protect trade and commerce against unlawful restraints and monopolies", approved July 2, 1890 (15 U.S.C. 1 et seq.), as amended;

(B) the Act entitled "An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes", approved October 15, 1914 (15 U.S.C. 12 et seq.), as amended;

(C) The Federal Trade Com-mission Act (15 U.S.C. 41 et seq.), as amended;

(D) sections 73 and 74 of the Act entitled "An Act to reduce taxation, to provide revenue for the Government, and for other purposes", approved August 27, 1894 (15 U.S.C. 8 and 9), as amended; or

(E) the Act of June 19, 1936, chapter 592 (15 U.S.C. 13, 13a, 13b, and 21a). (30 U.S.C. 184)

Rights-of-way for Pipe-lines through Federal Lands

Sec. 28. (a) Rights-of-way through any Federal lands may be granted by the Secretary of the Inte-rior or appropri-ate agency head for pipeline purpos-es for the transporta-tion of oil, natural gas, synthetic liquid or gaseous fuels, or any refined product produced therefrom to any applicant possessing the qualifications provided in section 1 of this Act, as amended, in accordance with the provisions of this section.

(b)(1) For the purposes of this section "Federal lands" means all lands owned by the United States except lands in the National Park System, lands held in trust for an Indian or Indian tribe, and lands on the Outer Continen-tal Shelf. A right-of-way through a Federal reservation shall not be granted if the Secretary or agency head deter-mines that it would be inconsistent with the purposes of the reservation.

(2) "Secretary" means the Sec-retary of the Interior.

(3) "Agency head" means the head of any Federal department or independent Federal office or agen-cy, other than the Secretary of the Inte-rior, which has jurisdiction over Federal lands.

(c)(1) Where the surface of all of the Federal lands involved in a proposed right-of-way or permit is under the jurisdiction of one Federal agency, the agency head, rather than the Secretary, is authorized to grant or renew the right-of-way or permit for the pur-poses set forth in this section.

(2) Where the surface of the Federal lands involved is adminis-tered by the Secretary or by two or more Federal agencies, the Secretary is authorized, after consultation with the agencies involved, to grant or renew rights-of-way or permits through the Federal lands involved. The Secretary may enter into inter-agency agreements with all other Federal agencies having juris-diction over Federal lands for the purpose of avoiding duplication, assigning responsibility, expediting review of rights-of-way or permit applications, issuing joint regulations, and assur-ing a decision based upon a compre-hensive review of all factors in-volved in any right-of-way or permit application. Each agency head shall administer and enforce the provi-sions of this sec-tion, appropriate regulations, and the terms and con-ditions of rights-of-way or permits insofar as they involve Federal lands under the agency head's jurisdiction.

(d) The width of a right-of-way shall not exceed fifty feet plus the ground occupied by the pipeline (that is, the pipe and its related facilities) unless the Secretary or agency head finds, and records the reasons for his finding, that in his judgment a wider right-of-way is necessary for opera-tion and maintenance after construction, or to protect the environment or public safety. Related facilities include but are not limited to valves, pump stations, supporting structures, bridges, monitoring and communication devices, surge and storage tanks, terminals, roads, airstrips and campsites, and they need not necessarily be connected or contiguous to the pipe and may be the subjects of separate rights-of-way.

(e) A right-of-way may be sup-plemented by such temporary per-mits for the use of Federal lands in the vicinity of the pipeline as the Secretary or agency head finds are necessary in connec-tion with con-struction, operation, maintenance, or termination of the pipeline, or to protect the natural environment or public safety.

(f) Rights-of-way or permits granted or renewed pursuant to this section shall be subject to regula-tions pro-mulgated in accord with the provi-sions of this section and shall be subject to such terms and condi-tions as the Secretary or agency head may prescribe re-garding extent, duration, survey, location, construction, operation, maintenance, use, and termination.

(g) The Secretary or agency head shall impose requirements for the operation of the pipeline and related facilities in a manner that will pro-tect the safety of workers and pro-tect the public from sudden ruptures and slow degradation of the pipe-line.

(h)(1) Nothing in this section shall be construed to amend, repeal, modify, or change in any way the require-ments of section 102(2)(C) or any other provision of the Na-tion-al Environ-mental Policy Act of 1969 (P.L. 91-190, 83 Stat. 852).

(2) The Secretary or agency head, prior to granting a right- of-way or permit pursuant to this section for a new project which may have a significant impact on the environment, shall require the applicant to submit a plan of construction, operation, and rehabilitation for such right-of-way or permit which shall comply with this section. The Secretary or agency head shall issue regulations or impose stipulations which shall include, but shall not be limited to:

(A) requirements for restoration, revegetation, and curtailment of erosion of the surface of the land; (B) requirements to insure that activities in connection with the right-of-way or permit will not violate applicable air and water quality standards nor related facility siting standards established by or pursuant to law;

(C) requirements designed to control or prevent

(i) damage to the environment (including damage to fish and wildlife habitat),

(ii) damage to public or private property, and

(iii) hazards to public health and safety; and

(D) require-ments to protect the inter-ests of individuals living in the general area of the right-of-way or permit who rely on the fish, wild-life, and biotic resourc-es of the area for subsis-tence pur-poses. Such regula-tions shall be applica-ble to every right-of-way or permit granted pur-suant to this section, and may be applicable by the Secretary or agen-cy head to existing rights-of-way or permits, or rights-of-way or permits to be re-newed pursuant to this sec-tion.

(i) If the applicant is a partnership, corporation, association, or other business entity, the Secretary or agency head shall require the appli-cant to disclose the identity of the partici-pants in the entity. Such disclosure shall include where appli-cable (1) the name and address of each partner, (2) the name and ad-dress of each shareholder owning 3 per centum or more of the shares, together with the number and per-centage of any class of voting shares of the entity which such shareholder is authorized to vote, and (3) the name and address of each affiliate to the entity togeth-er with, in the case of an affiliate controlled by the entity, the number of shares and the percentage of any class of voting stock of that affiliate owned, directly or indirect-ly, by that entity, and in the case of an affiliate which controls that entity, the num-ber of shares and the per-centage of any class of voting stock of that entity owned, directly or indirectly by the affiliate.

(j) The Secretary or agency head shall grant or renew a right-of-way or permit under this section only when he is satisfied that the appli-cant has the technical and financial capability to construct, operate, maintain, and terminate the project for which the right-of-way or permit is requested in accordance with the requirements of this section.

(k) The Secretary or agency head by regulation shall establish proce-dures, including public hearings where appropriate, to give Federal, State, and local government agen-cies and the public adequate notice and an opportunity to comment upon right-of-way applica-tions filed after the date of enact-ment of this subsection.

(l) The applicant for a right-of-way or permit shall reim-burse the United States for adminis-trative and other costs incurred in processing the application, and the holder of a right-of-way or permit shall reim-burse the United States for the costs incurred in monitoring the construction, operation, mainte-nance, and termination of any pipe-line and related facilities on such right-of-way or permit area and shall pay annually in advance the fair market rental value of the right-of-way or permit, as deter-mined by the Secre-tary or agency head.

(m) Where he deems it appropri-ate the Secretary or agency head may require a holder of a right-of-way or permit to furnish a bond, or other security, satisfactory to the Secretary or agen-cy head to secure all or any of the obligations imposed by the terms and conditions of the right-of-way or permit or by any rule or regulation of the Secre-tary or agency head. (n) Each right-of-way or permit granted or renewed pursuant to this section shall be limited to a reason-able term in light of all circumstanc-es con-cerning the project, but in no event more than thirty years. In determin-ing the duration of a right-of-way, the Sec-retary or agen-cy head shall, among other things, take into consideration the cost of the facility, its useful life, and any public purpose it serves. The Secre-tary or agency head shall re-new any right-of-way, in accordance with the provisions of this section, so long as the project is in commercial opera-tion and is operated and maintained in accordance with all of the provisions of this section.

(o)(1) Abandonment of a right- of-way or noncompliance with any provisions of this section may be grounds for suspension or termi-na-tion of the right-of-way if (A) after due notice to the holder of the right-of-way, (B) a reasonable op-por-tunity to comply with this sec-tion, and (C) an appro-priate admin-istrative proceeding pursuant to Title 5, United States Code, sec-tion 554, the Secretary or agency head determines that any such ground exists and that suspension or termination is justi-fied. No administrative pro-ceeding shall be required where the right-of-way by its terms provides that it terminates on the occurrence of a fixed or agreed upon condition, event or time.

(2) If the Secretary or agency head determines that an immediate temporary suspension of activities within a right-of-way or permit area is necessary to protect public health or safety or the environment, he may abate such activities prior to an adminis-trative proceeding.

(3) Deliberate failure of the holder to use the right-of-way for the purpose for which it was granted or renewed for any continuous two-year period shall constitute a rebuttable pre-sumption of abandon-ment of the right-of-way: Provided, That where the failure to use the right-of-way is due to circumstances not within the holder's control the Secretary or agency head is not required to commence proceed-ings to suspend or terminate the right-of-way.

(p) In order to minimize adverse environmental impacts and the pro-liferation of separate rights-of-way across Federal lands, the utilization of rights-of-way in common shall be required to the extent practical, and each right-of-way or permit shall reserve to the Secretary or agency head the right to grant additional rights-of-way or permits for compat-ible uses on or adjacent to rights-of-way or permit area granted pursuant to this section.

(q) No rights-of-way for the purposes provided for in this section shall be granted or renewed across Federal lands except under and subject to the provisions, limitations, and conditions of this section. Any application for a right-of-way filed under any other law prior to the effective date of this provision may, at the applicant's option, be consid-ered as an applica-tion under this section. The Secretary or agen-cy head may require the applicant to submit any additional information he deems necessary to comply with the re-quirements of this section.

(r)(1) Pipelines and related facili-ties authorized under this section shall be constructed, operated, and main-tained as common carriers.

(2)(A) The owners or operators of pipelines subject to this section shall accept, convey, transport, or pur-chase without discrimination all oil or gas delivered to the pipeline without regard to whether such oil or gas was produced on Federal or non-Federal lands.

(B) In the case of oil or gas produced from Federal lands or from the resources on the Federal lands in the vicinity of the pipeline, the Secretary may, after a full hear-ing with due notice thereof to the interested parties and a prop-er find-ing of facts, determine the propor-tionate amounts to be accepted, conveyed, transported or purchased.

(3)(A) The common carrier provisions of this section shall not apply to any natural gas pipeline operated by any person subject to regulation under the Natural Gas Act or by any public utility subject to regulation by a State or municipal regulatory agency having jurisdic-tion to regulate the rates and charges for the sale of natural gas to consumers within the State or municipality.

(B) Where natural gas not subject to State regulatory or conservation laws governing its purchase by pipelines is offered for sale, each such pipeline shall purchase, without discrimination, any such natural gas produced in the vicinity of the pipeline.

(4) The Government shall in express terms reserve and shall provide in every lease of oil lands under this Act that the lessee, assignee, or beneficiary, if owner or operator of a controlling interest in any pipeline or of any company operating the pipeline which may be operated accessible to the oil derived from lands under such lease, shall at reasonable rates and without discrimination accept and convey the oil of the Government or of any citizen or company not the owner of any pipeline operating a lease or pur-chasing gas or oil under the pro-visions of this Act.

(5) Whenever the Secretary has reason to believe that any owner or operator subject to this section is not operating any oil or gas pipeline in complete accord with its obliga-tions as a common carrier hereun-der, he may request the Attorney General to prosecute an appropriate proceeding before the Interstate Commerce Commission or Federal Power Commission or any appropri-ate State agency or the United States District Court for the district in which the pipeline or any part thereof is locat-ed, to enforce such obligation or to impose any penalty provided there-for, or the Secretary may, by pro-ceeding as provided in this section, suspend or terminate the said grant of right-of-way for noncompliance with the provi-sions of this section.

(6) The Secretary or agency head shall require, prior to granting or renewing a right-of-way, that the applicant submit and disclose all plans, contracts, agreements, or other in-formation or material which he deems necessary to determine whether a right-of-way shall be granted or renewed and the terms and conditions which should be included in the right-of-way. Such information may include, but is not limited to: (A) conditions for, and agreements among owners or opera-tors, regarding the addition of pumping facilities looping, or oth-er-wise in-creasing the pipeline or terminal's throughout capacity in response to actual or anticipated increases in demand; (B) conditions for adding or aban-doning intake, offtake, or stor-age points or facili-ties; and (C) minimum ship-ment or pur-chase tenders.

(s) In order to minimize adverse environmental impacts and to pre-vent the proliferation of separate rights-of-way across Federal lands, the Secretary shall, in consultation with other Federal and State agen-cies, review the need for a national system of transporta-tion and utility corridors across Federal lands and submit a report of his findings and recommendations to the Congress and the President by July 1, 1975.

(t) The Secretary or agency head may ratify and confirm any right- of-way or permit for an oil or gas pipeline or related facility that was granted under any provision of law before the effective date of this sub-section, if it is modified by mutual agreement to comply to the extent practical with the provisions of this section. Any action taken by the Secretary or agency head pursuant to this subsection shall not be considered a major Federal action requiring a detailed statement pursuant to section 102(2)(C) of the National Environmental Policy Act of 1970 (P.L. 91-190; 42 U.S.C. 4321).

(u) Any domestically produced crude oil transported by pipeline over rights-of-way granted pursuant to section 28 of the Mineral Leasing Act of 1920, except such crude oil which is temporarily exported for conve-nience or increased efficiency of transporta-tion across parts of an adjacent foreign state and reenters the United States, shall be subject to all of the limitations and licens-ing require-ments of the Export Admin-is-tration Act of 1969 (Act of De-cem-ber 30, 1969; 83 Stat. 841) and, in addition, before any crude oil sub-ject to this section may be ex-ported under the limitations and licensing requirements and penalty and en-forcement provisions of the Export Administration Act of 1969 the President must make and publish an express finding that such exports will not diminish the total quantity or quality of petroleum available to the United States, and are in the national inter-est and are in accord with the provisions of the Export Administration Act of 1969: Pro-vid-ed, That the President shall sub-mit reports to the Congress con-taining findings made under this section, and after the date of receipt of such report Congress shall have a period of sixty calendar days, thirty