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

(a)

Requirements for validation

The provisions of this section shall apply to any mineral lease covering submerged lands of the outer Continental Shelf issued by any State (including any extension, renewal, or replacement thereof heretofore granted pursuant to such lease or under the laws of such State) if—

(1)

August 7, 1953section 1336 of this title such lease, or a true copy thereof, is filed with the Secretary by the lessee or his duly authorized agent within ninety days from , or within such further period or periods as provided in or as may be fixed from time to time by the Secretary;

(2)

December 21, 1948June 5, 1950 such lease was issued prior to , and would have been on , in force and effect in accordance with its terms and provisions and the law of the State issuing it had the State had the authority to issue such lease;

(3)

there is filed with the Secretary, within the period or periods specified in paragraph (1) of this subsection, (A) a certificate issued by the State official or agency having jurisdiction over such lease stating that it would have been in force and effect as required by the provisions of paragraph (2) of this subsection, or (B) in the absence of such certificate, evidence in the form of affidavits, receipts, canceled checks, or other documents that may be required by the Secretary, sufficient to prove that such lease would have been so in force and effect;

(4)

section 1336 of this titleJune 5, 1950August 7, 1953August 7, 1953section 1338 of this title except as otherwise provided in hereof, all rents, royalties, and other sums payable under such lease between , and , which have not been paid in accordance with the provisions thereof, or to the Secretary or to the Secretary of the Navy, are paid to the Secretary within the period or periods specified in paragraph (1) of this subsection, and all rents, royalties, and other sums payable under such lease after , are paid to the Secretary, who shall deposit such payments in the Treasury in accordance with ;

(5)

August 7, 1953 the holder of such lease certifies that such lease shall continue to be subject to the overriding royalty obligations existing on ;

(6)

such lease was not obtained by fraud or misrepresentation;

(7)

June 23, 1947 such lease, if issued on or after , was issued upon the basis of competitive bidding;

(8)

such lease provides for a royalty to the lessor on oil and gas of not less than 12½ per centum and on sulphur of not less than 5 per centum in amount or value of the production saved, removed, or sold from the lease, or, in any case in which the lease provides for a lesser royalty, the holder thereof consents in writing, filed with the Secretary, to the increase of the royalty to the minimum herein specified;

(9)

June 5, 1950August 7, 1953August 7, 1953 the holder thereof pays to the Secretary within the period or periods specified in paragraph (1) of this subsection an amount equivalent to any severance, gross production, or occupation taxes imposed by the State issuing the lease on the production from the lease, less the State’s royalty interest in such production, between , and and not heretofore paid to the State, and thereafter pays to the Secretary as an additional royalty on the production from the lease, less the United States’ royalty interest in such production, a sum of money equal to the amount of the severance, gross production, or occupation taxes which would have been payable on such production to the State issuing the lease under its laws as they existed on ;

(10)

August 7, 1953 such lease will terminate within a period of not more than five years from in the absence of production or operations for drilling, or, in any case in which the lease provides for a longer period, the holder thereof consents in writing, filed with the Secretary, to the reduction of such period so that it will not exceed the maximum period herein specified; and

(11)

the holder of such lease furnishes such surety bond, if any, as the Secretary may require and complies with such other reasonable requirements as the Secretary may deem necessary to protect the interests of the United States.

(b)

Conduct of operations under lease; sulphur rights

December 11, 1950June 5, 1950December 11, 1950August 7, 1953December 11, 1950section 1334 of this titleProvided, howeverProvided furtherProvided furtherAugust 7, 1953August 7, 1953Any person holding a mineral lease, which as determined by the Secretary meets the requirements of subsection (a) of this section, may continue to maintain such lease, and may conduct operations thereunder, in accordance with (1) its provisions as to the area, the minerals covered, rentals and, subject to the provisions of paragraphs (8)–(10) of subsection (a) of this section, as to royalties and as to the term thereof and of any extensions, renewals, or replacements authorized therein or heretofore authorized by the laws of the State issuing such lease, or, if oil or gas was not being produced in paying quantities from such lease on or before , or if production in paying quantities has ceased since , or if the primary term of such lease has expired since , then for a term from equal to the term remaining unexpired on , under the provisions of such lease or any extensions, renewals, or replacements authorized therein, or heretofore authorized by the laws of such State, and (2) such regulations as the Secretary may under prescribe within ninety days after making his determination that such lease meets the requirements of subsection (a) of this section: , That any rights to sulphur under any lease maintained under the provisions of this subsection shall not extend beyond the primary term of such lease or any extension thereof under the provisions of this subsection unless sulphur is being produced in paying quantities or drilling, well reworking, plant construction, or other operations for the production of sulphur, as approved by the Secretary, are being conducted on the area covered by such lease on the date of expiration of such primary term or extension: , That if sulphur is being produced in paying quantities on such date, then such rights shall continue to be maintained in accordance with such lease and the provisions of this subchapter: , That, if the primary term of a lease being maintained under this subsection has expired prior to and oil or gas is being produced in paying quantities on such date, then such rights to sulphur as the lessee may have under such lease shall continue for twenty-four months from and as long thereafter as sulphur is produced in paying quantities, or drilling, well working, plant construction, or other operations for the production of sulphur, as approved by the Secretary, are being conducted on the area covered by the lease.

(c)

Nonwaiver of United States claims

August 7, 1953The permission granted in subsection (b) of this section shall not be construed to be a waiver of such claims, if any, as the United States may have against the lessor or the lessee or any other person respecting sums payable or paid for or under the lease, or respecting activities conducted under the lease, prior to .

(d)

Judicial review of determination

Any person complaining of a negative determination by the Secretary of the Interior under this section may have such determination reviewed by the United States District Court for the District of Columbia by filing a petition for review within sixty days after receiving notice of such action by the Secretary.

(e)

Lands beneath navigable waters

43 U.S.C. 1301In the event any lease maintained under this section covers lands beneath navigable waters, as that term is used in the Submerged Lands Act [ et seq.], as well as lands of the outer Continental Shelf, the provisions of this section shall apply to such lease only insofar as it covers lands of the outer Continental Shelf.

Aug. 7, 1953, ch. 345, § 6 67 Stat. 465(, .)

Editorial Notes

References in Text

act May 22, 1953, ch. 65 67 Stat. 29 section 1301 of this titleThe Submerged Lands Act, referred to in subsec. (e), is , , which is classified generally to subchapters I (§ 1301 et seq.) and II (§ 1311 et seq.) of this chapter. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Statutory Notes and Related Subsidiaries

Transfer of Functions

section 7152(b) of Title 42 Section 7152(b) of Title 42 Pub. L. 97–100, title II, § 201Dec. 23, 198195 Stat. 1407Nov. 5, 1981Functions of Secretary of the Interior to promulgate regulations under this subchapter which relate to fostering of competition for Federal leases, implementation of alternative bidding systems authorized for award of Federal leases, establishment of diligence requirements for operations conducted on Federal leases, setting of rates for production of Federal leases, and specifying of procedures, terms, and conditions for acquisition and disposition of Federal royalty interests taken in kind, transferred to Secretary of Energy by , The Public Health and Welfare. was repealed by , , , and functions of Secretary of Energy returned to Secretary of the Interior. See House Report No. 97–315, pp. 25, 26, .