US (United States) Code. Title 10. Subtitle C. Part IV. Chapter 641: Naval petroleum reserves

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Armed Forces

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-CITE-

10 USC CHAPTER 641 - NAVAL PETROLEUM RESERVES 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

.

-HEAD-

CHAPTER 641 - NAVAL PETROLEUM RESERVES

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Sec.

7420. Definitions.

7421. Jurisdiction and control.

7422. Administration.

7423. Periodic re-examination of production requirements.

7424. Protection of oil reserves; contracts for conservation.

7425. Acquisition by condemnation and purchase.

(7426. Repealed.)

7427. Cooperative or unit plans in the naval petroleum reserves.

7428. Agreements and leases: provision for change.

7429. Re-lease of certain lands: lessee's preferential right.

7430. Disposition of products.

7431. Requirements as to consultation and approval.

7432. Authorizations of appropriations.

7433. Disposition of royalties.

(7434. Repealed.)

7435. Foreign interest.

7436. Regulations.

7437. Violations by lessee.

7438. Rifle, Colorado, plant; possession, use, and transfer of.

7439. Certain oil shale reserves: transfer of jurisdiction and

petroleum exploration, development, and production.

AMENDMENTS

2000 - Pub. L. 106-398, Sec. 1 (div. C, title XXXIV, Sec.

3402(b)(3)), Oct. 30, 2000, 114 Stat. 1654, 1654A-484, struck out

item 7426 ''Cooperative or unit plans affecting Naval Petroleum

Reserve Numbered 1''.

1997 - Pub. L. 105-85, div. C, title XXXIV, Sec. 3404(b), Nov.

18, 1997, 111 Stat. 2061, added item 7439.

1996 - Pub. L. 104-201, div. A, title X, Sec. 1074(a)(19), Sept.

23, 1996, 110 Stat. 2660, struck out item 7434 ''Annual report to

congressional committees''.

Pub. L. 104-106, div. A, title XV, Sec. 1502(a)(28)(B),

1503(b)(4), Feb. 10, 1996, 110 Stat. 506, 513, substituted

''Agreements'' for ''Agreement'' in item 7428 and ''congressional

committees'' for ''Armed Services Committees'' in item 7434.

1990 - Pub. L. 101-510, div. A, title XIII, Sec. 1331(9), Nov.

5, 1990, 104 Stat. 1673, amended item 7434 generally, substituting

''Annual report'' for ''Quarterly reports''.

1980 - Pub. L. 96-513, title V, Sec. 513(32)(C), Dec. 12, 1980,

94 Stat. 2933, substituted ''Naval Petroleum Reserve Numbered'' for

''naval petroleum reserve numbered'' in item 7426.

1979 - Pub. L. 96-137, Sec. 3(b)(2), Dec. 12, 1979, 93 Stat.

1062, substituted ''Authorizations of appropriations'' for ''Naval

petroleum reserve special account'' in item 7432.

1976 - Pub. L. 94-258, title II, Sec. 201(20), Apr. 5, 1976, 90

Stat. 313, added item 7420 and substituted ''Naval petroleum

reserve special account'' for ''Expenditures; appropriations

chargeable'' in item 7432.

1962 - Pub. L. 87-796, Sec. 1(13), Oct. 11, 1962, 76 Stat. 906,

substituted ''Rifle, Colorado, plant; possession, use, and transfer

of'' for ''Exclusion of naval oil shale reserves'' in item 7438.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in title 30 section 353; title 42

sections 7156, 7235.

-CITE-

10 USC Sec. 7420 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

-HEAD-

Sec. 7420. Definitions

-STATUTE-

In this chapter:

(1) The term ''national defense'' includes the needs of, and

the planning and preparedness to meet, essential defense,

industrial, and military emergency energy requirements relative

to the national safety, welfare, and economy, particularly

resulting from foreign military or economic actions.

(2) The term ''naval petroleum reserves'' means the naval

petroleum and oil shale reserves established by this chapter,

including Naval Petroleum Reserve Numbered 1 (Elk Hills), located

in Kern County, California, established by Executive order of the

President, dated September 2, 1912; Naval Petroleum Reserve

Numbered 2 (Buena Vista), located in Kern County, California,

established by Executive order of the President, dated December

13, 1912; Naval Petroleum Reserve Numbered 3 (Teapot Dome),

located in Wyoming, established by Executive order of the

President, dated April 30, 1915; Oil Shale Reserve Numbered 1,

located in Colorado, established by Executive order of the

President, dated December 6, 1916, as amended by Executive order

dated June 12, 1919; Oil Shale Reserve Numbered 2, located in

Utah, established by Executive order of the President, dated

December 6, 1916; and Oil Shale Reserve Numbered 3, located in

Colorado, established by Executive order of the President, dated

September 27, 1924.

(3) The term ''petroleum'' includes crude oil, gases (including

natural gas), natural gasoline, and other related hydrocarbons,

oil shale, and the products of any of such resources.

(4) The term ''Secretary'' means the Secretary of Energy.

(5) The term ''small refiner'' means an owner of a refinery or

refineries (including refineries not in operation) who qualifies

as a small business refiner under the rules and regulations of

the Small Business Administration.

(6) The term ''maximum efficient rate'' means the maximum

sustainable daily oil or gas rate from a reservoir which will

permit economic development and depletion of that reservoir

without detriment to the ultimate recovery.

-SOURCE-

(Added Pub. L. 94-258, title II, Sec. 201(1), Apr. 5, 1976, 90

Stat. 307; amended Pub. L. 96-513, title V, Sec. 513(30), Dec. 12,

1980, 94 Stat. 2933; Pub. L. 100-26, Sec. 7(k)(5), Apr. 21, 1987,

101 Stat. 284.)

-MISC1-

AMENDMENTS

1987 - Pub. L. 100-26 substituted colon for dash at end of

introductory provisions, inserted ''The term'' in each par.,

substituted periods for semicolons in pars. (1) to (4) and period

for ''; and'' in par. (5).

1980 - Pub. L. 96-513 in introductory text struck out ''(a)''

before ''In'', in par. (2) struck out provisions relating to Naval

Petroleum Reserve Numbered 4, and in par. (4) substituted

''Energy'' for ''the Navy''.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section

701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of

this title.

DISPOSAL OF NAVAL PETROLEUM RESERVES

Pub. L. 105-261, div. C, title XXXIV, Oct. 17, 1998, 112 Stat.

2265, as amended by Pub. L. 106-398, Sec. 1 (div. C, title XXXIV,

Sec. 3403(a), (c)), Oct. 30, 2000, 114 Stat. 1654, 1654A-484,

1654A-489, provided that:

''SEC. 3401. DEFINITIONS.

''In this title:

''(1) The term 'naval petroleum reserves' has the meaning given

the term in section 7420(2) of title 10, United States Code.

''(2) The term 'Naval Petroleum Reserve Numbered 2' means the

naval petroleum reserve, commonly referred to as the Buena Vista

unit, that is located in Kern County, California, and was

established by Executive order of the President, dated December

13, 1912.

''(3) The term 'Naval Petroleum Reserve Numbered 3' means the

naval petroleum reserve, commonly referred to as the Teapot Dome

unit, that is located in the State of Wyoming and was established

by Executive order of the President, dated April 30, 1915.

''(4) The term 'Oil Shale Reserve Numbered 2' means the naval

petroleum reserve that is located in the State of Utah and was

established by Executive order of the President, dated December

6, 1916.

''(5) The term 'antitrust laws' has the meaning given the term

in section 1(a) of the Clayton Act (15 U.S.C. 12(a)), except that

the term also includes -

''(A) the Act of June 19, 1936 (15 U.S.C. 13 et seq.;

commonly known as the Robinson-Patman Act); and

''(B) section 5 of the Federal Trade Commission Act (15

U.S.C. 45), to the extent that such section applies to unfair

methods of competition.

''(6) The term 'petroleum' has the meaning given the term in

section 7420(3) of title 10, United States Code.

''SEC. 3402. AUTHORIZATION OF APPROPRIATIONS.

''(a) Amount. - There are hereby authorized to be appropriated to

the Secretary of Energy $22,500,000 for fiscal year 1999 for the

purpose of carrying out -

''(1) activities under chapter 641 of title 10, United States

Code, relating to the naval petroleum reserves;

''(2) closeout activities at Naval Petroleum Reserve Numbered 1

upon the sale of that reserve under subtitle B of title XXXIV of

the National Defense Authorization Act for Fiscal Year 1996

(Public Law 104-106; 10 U.S.C. 7420 note); and

''(3) activities under this title relating to the disposition

of Naval Petroleum Reserve Numbered 2, Naval Petroleum Reserve

Numbered 3, and Oil Shale Reserve Numbered 2.

''(b) Period of Availability. - Funds appropriated pursuant to

the authorization of appropriations in subsection (a) shall remain

available until expended.

''SEC. 3403. DISPOSAL OF NAVAL PETROLEUM RESERVE NUMBERED 2.

''(a) Disposal of Ford City Lots Authorized. - (1) Subject to

section 3406, the Secretary of Energy may dispose of the portion of

Naval Petroleum Reserve Numbered 2 that is located within the town

lots in Ford City, California, which are identified as 'Drill Sites

Numbered 3A, 4, 6, 9A, 20, 22, 24, and 26' and described in the

document entitled 'Ford City Drill Site Locations - NPR-2,' and

accompanying maps on file in the office of the Deputy Assistant

Secretary for Naval Petroleum and Oil Shale Reserves of the

Department of Energy.

''(2) The Secretary of Energy shall carry out the disposal

authorized by paragraph (1) by competitive sale or lease consistent

with commercial practices, by transfer to another Federal agency or

a public or private entity, or by such other means as the Secretary

considers appropriate. Any competitive sale or lease under this

subsection shall provide for the disposal of all right, title, and

interest of the United States in the property to be conveyed. The

Secretary of Energy may use the authority provided by the Act of

June 14, 1926 (43 U.S.C. 869 et seq.; commonly known as the

Recreation and Public Purposes Act), in the same manner and to the

same extent as the Secretary of the Interior, to dispose of the

portion of Naval Petroleum Reserve Numbered 2 described in

paragraph (1).

''(3) Section 2696(a) of title 10, United States Code, regarding

the screening of real property for further Federal use before

disposal, shall apply to the disposal authorized by paragraph (1).

''(b) Transfer of Administrative Jurisdiction Authorized. - (1)

The Secretary of Energy shall continue to administer Naval

Petroleum Reserve Numbered 2 (other than the portion of the reserve

authorized for disposal under subsection (a)) in accordance with

chapter 641 of title 10, United States Code, until such time as the

Secretary makes a determination to abandon oil and gas operations

in Naval Petroleum Reserve Numbered 2 in accordance with commercial

operating practices.

''(2) After oil and gas operations are abandoned in Naval

Petroleum Reserve Numbered 2, the Secretary of Energy may transfer

to the Secretary of the Interior administrative jurisdiction and

control over all public domain lands included within Naval

Petroleum Reserve Numbered 2 (other than the portion of the reserve

authorized for disposal under subsection (a)) for management in

accordance with the general land laws.

''(c) Relationship to Antitrust Laws. - This section does not

modify, impair, or supersede the operation of the antitrust laws.

''SEC. 3404. DISPOSAL OF NAVAL PETROLEUM RESERVE NUMBERED 3.

''(a) Administration Pending Termination of Operations. - The

Secretary of Energy shall continue to administer Naval Petroleum

Reserve Numbered 3 in accordance with chapter 641 of title 10,

United States Code, until such time as the Secretary makes a

determination to abandon oil and gas operations in Naval Petroleum

Reserve Numbered 3 in accordance with commercial operating

practices.

''(b) Disposal Authorized. - After oil and gas operations are

abandoned in Naval Petroleum Reserve Numbered 3, the Secretary of

Energy may dispose of the reserve as provided in this subsection.

Subject to section 3406, the Secretary shall carry out any such

disposal of the reserve by sale or lease or by transfer to another

Federal agency. Any sale or lease shall provide for the disposal

of all right, title, and interest of the United States in the

property to be conveyed and shall be conducted in accordance with

competitive procedures consistent with commercial practices, as

established by the Secretary.

''(c) Relationship to Antitrust Laws. - This section does not

modify, impair, or supersede the operation of the antitrust laws.

''SEC. 3405. DISPOSAL OF OIL SHALE RESERVE NUMBERED 2.

''(a) Definitions. - In this section:

''(1) NOSR-2. - The term 'NOSR-2' means Oil Shale Reserve

Numbered 2, as identified on a map on file in the Office of the

Secretary of the Interior.

''(2) Moab site. - The term 'Moab site' means the Moab uranium

milling site located approximately three miles northwest of Moab,

Utah, and identified in the Final Environmental Impact Statement

issued by the Nuclear Regulatory Commission in March 1996 in

conjunction with Source Materials License No. SUA-917.

''(3) Map. - The term 'map' means the map depicting the

boundaries of NOSR-2, to be kept on file and available for public

inspection in the offices of the Department of the Interior.

''(4) Tribe. - The term 'Tribe' means the Ute Indian Tribe of

the Uintah and Ouray Indian Reservation.

''(5) Trustee. - The term 'Trustee' means the Trustee of the

Moab Mill Reclamation Trust.

''(b) Conveyance. - (1) Except as provided in paragraph (2) and

subsection (e), all right, title, and interest of the United States

in and to all Federal lands within the exterior boundaries of

NOSR-2 (including surface and mineral rights) are hereby conveyed

to the Tribe in fee simple. The Secretary of Energy shall execute

and file in the appropriate office a deed or other instrument

effectuating the conveyance made by this section.

''(2) The conveyance under paragraph (1) does not include the

following:

''(A) The portion of the bed of Green River contained entirely

within NOSR-2, as depicted on the map.

''(B) The land (including surface and mineral rights) to the

west of the Green River within NOSR-2, as depicted on the map.

''(C) A 1/4 mile scenic easement on the east side of the Green

River within NOSR-2.

''(c) Conditions on Conveyance. - (1) The conveyance under

subsection (b) is subject to valid existing rights in effect on the

day before the date of the enactment of the Floyd D. Spence

National Defense Authorization Act for Fiscal Year 2001 (Oct. 30,

2000).

''(2) On completion of the conveyance under subsection (b), the

United States relinquishes all management authority over the

conveyed land, including tribal activities conducted on the land.

''(3) The land conveyed to the Tribe under subsection (b) shall

not revert to the United States for management in trust status.

''(4) The reservation of the easement under subsection (b)(2)(C)

shall not affect the right of the Tribe to use and maintain access

to the Green River through the use of the road within the easement,

as depicted on the map.

''(5) Each withdrawal that applies to NOSR-2 and that is in

effect on the date of the enactment of the Floyd D. Spence National

Defense Authorization Act for Fiscal Year 2001 (Oct. 30, 2000) is

revoked to the extent that the withdrawal applies to NOSR-2.

''(6) Notwithstanding that the land conveyed to the Tribe under

subsection (b) shall not be part of the reservation of the Tribe,

such land shall be deemed to be part of the reservation of the

Tribe for the purposes of criminal and civil jurisdiction.

''(d) Administration of Unconveyed Land and Interests in Land. -

(1) The land and interests in land excluded by subparagraphs (A)

and (B) of subsection (b)(2) from conveyance under subsection (b)

shall be administered by the Secretary of the Interior in

accordance with the Federal Land Policy and Management Act of 1976

(43 U.S.C. 1701 et seq.).

''(2) Not later than three years after the date of the enactment

of the Floyd D. Spence National Defense Authorization Act for

Fiscal Year 2001 (Oct. 30, 2000), the Secretary of the Interior

shall submit to Congress a land use plan for the management of the

land and interests in land referred to in paragraph (1).

''(3) There are authorized to be appropriated to the Secretary of

the Interior such sums as are necessary to carry out this

subsection.

''(e) Royalty. - (1) Notwithstanding the conveyance under

subsection (b), the United States retains a nine percent royalty

interest in the value of any oil, gas, other hydrocarbons, and all

other minerals that are produced, saved, and sold from the conveyed

land during the period beginning on the date of the conveyance and

ending on the date the Secretary of Energy releases the royalty

interest under subsection (i).

''(2) The royalty payments shall be made by the Tribe or its

designee to the Secretary of Energy during the period that the oil,

gas, hydrocarbons, or minerals are being produced, saved, sold, or

extracted. The Secretary of Energy shall retain and use the

payments in the manner provided in subsection (i)(3).

''(3) The royalty interest retained by the United States under

this subsection does not include any development, production,

marketing, and operating expenses.

''(4) The Tribe shall submit to the Secretary of Energy and to

Congress an annual report on resource development and other

activities of the Tribe concerning the conveyance under subsection

(b).

''(5) Not later than five years after the date of the enactment

of the Floyd D. Spence National Defense Authorization Act for

Fiscal Year 2001 (Oct. 30, 2000), and every five years thereafter,

the Tribe shall obtain an audit of all resource development

activities of the Tribe concerning the conveyance under subsection

(b), as provided under chapter 75 of title 31, United States Code.

The results of each audit under this paragraph shall be included in

the next annual report submitted under paragraph (4).

''(f) River Management. - (1) The Tribe shall manage, under

Tribal jurisdiction and in accordance with ordinances adopted by

the Tribe, land of the Tribe that is adjacent to, and within 1/4

mile of, the Green River in a manner that -

''(A) maintains the protected status of the land; and

''(B) is consistent with the government-to-government agreement

and in the memorandum of understanding dated February 11, 2000,

as agreed to by the Tribe and the Secretary of the Interior.

''(2) An ordinance referred to in paragraph (1) shall not impair,

limit, or otherwise restrict the management and use of any land

that is not owned, controlled, or subject to the jurisdiction of

the Tribe.

''(3) An ordinance adopted by the Tribe and referenced in the

government-to-government agreement may not be repealed or amended

without the written approval of both the Tribe and the Secretary of

the Interior.

''(g) Plant Species. - (1) In accordance with a

government-to-government agreement between the Tribe and the

Secretary of the Interior, in a manner consistent with levels of

legal protection in effect on the date of the enactment of the

Floyd D. Spence National Defense Authorization Act for Fiscal Year

2001 (Oct. 30, 2000), the Tribe shall protect, under ordinances

adopted by the Tribe, any plant species that is -

''(A) listed as an endangered species or threatened species

under section 4 of the Endangered Species Act of 1973 (16 U.S.C.

1533); and

''(B) located or found on the NOSR-2 land conveyed to the

Tribe.

''(2) The protection described in paragraph (1) shall be

performed solely under tribal jurisdiction.

''(h) Horses. - (1) The Tribe shall manage, protect, and assert

control over any horse not owned by the Tribe or tribal members

that is located or found on the NOSR-2 land conveyed to the Tribe

in a manner that is consistent with Federal law governing the

management, protection, and control of horses in effect on the date

of the enactment of the Floyd D. Spence National Defense

Authorization Act for Fiscal Year 2001 (Oct. 30, 2000).

''(2) The management, control, and protection of horses described

in paragraph (1) shall be performed solely -

''(A) under tribal jurisdiction; and

''(B) in accordance with a government-to-government agreement

between the Tribe and the Secretary of the Interior.

''(i) Remedial Action at Moab Site. - (1)(A) The Secretary of

Energy shall prepare a plan for remediation, including ground water

restoration, of the Moab site in accordance with title I of the

Uranium Mill Tailings Radiation Control Act of 1978 (42 U.S.C. 7911

et seq.). The Secretary of Energy shall enter into arrangements

with the National Academy of Sciences to obtain the technical

advice, assistance, and recommendations of the National Academy of

Sciences in objectively evaluating the costs, benefits, and risks

associated with various remediation alternatives, including removal

or treatment of radioactive or other hazardous materials at the

site, ground water restoration, and long-term management of

residual contaminants. If the Secretary prepares a remediation

plan that is not consistent with the recommendations of the

National Academy of Sciences, the Secretary shall submit to

Congress a report explaining the reasons for deviation from the

National Academy of Sciences' recommendations.

''(B) The remediation plan required by subparagraph (A) shall be

completed not later than one year after the date of the enactment

of the Floyd D. Spence National Defense Authorization Act for

Fiscal Year 2001 (Oct. 30, 2000), and the Secretary of Energy shall

commence remedial action at the Moab site as soon as practicable

after the completion of the plan.

''(C) The license for the materials at the Moab site issued by

the Nuclear Regulatory Commission shall terminate one year after

the date of the enactment of the Floyd D. Spence National Defense

Authorization Act for Fiscal Year 2001, unless the Secretary of

Energy determines that the license may be terminated earlier.

Until the license is terminated, the Trustee, subject to the

availability of funds appropriated specifically for a purpose

described in clauses (i) through (iii) or made available by the

Trustee from the Moab Mill Reclamation Trust, may carry out -

''(i) interim measures to reduce or eliminate localized high

ammonia concentrations in the Colorado River, identified by the

United States Geological Survey in a report dated March 27, 2000;

''(ii) activities to dewater the mill tailings at the Moab

site; and

''(iii) other activities related to the Moab site, subject to

the authority of the Nuclear Regulatory Commission and in

consultation with the Secretary of Energy.

''(D) As part of the remediation plan for the Moab site required

by subparagraph (A), the Secretary of Energy shall develop, in

consultation with the Trustee, the Nuclear Regulatory Commission,

and the State of Utah, an efficient and legal means for

transferring all responsibilities and title to the Moab site and

all the materials therein from the Trustee to the Department of

Energy.

''(2) The Secretary of Energy shall limit the amounts expended in

carrying out the remedial action under paragraph (1) to -

''(A) amounts specifically appropriated for the remedial action

in an appropriation Act; and

''(B) other amounts made available for the remedial action

under this subsection.

''(3)(A) The royalty payments received by the Secretary of Energy

under subsection (e) shall be available to the Secretary, without

further appropriation, to carry out the remedial action under

paragraph (1) until such time as the Secretary determines that all

costs incurred by the United States to carry out the remedial

action (other than costs associated with long-term monitoring) have

been paid.

''(B) Upon making the determination referred to in subparagraph

(A), the Secretary of Energy shall transfer all remaining royalty

amounts to the general fund of the Treasury and release to the

Tribe the royalty interest retained by the United States under

subsection (e).

''(4)(A) Funds made available to the Department of Energy for

national security activities shall not be used to carry out the

remedial action under paragraph (1), except that the Secretary of

Energy may use such funds for program direction directly related to

the remedial action.

''(B) There are authorized to be appropriated to the Secretary of

Energy to carry out the remedial action under paragraph (1) such

sums as are necessary.

''(5) If the Moab site is sold after the date on which the

Secretary of Energy completes the remedial action under paragraph

(1), the seller shall pay to the Secretary of Energy, for deposit

in the general fund of the Treasury, the portion of the sale price

that the Secretary determines resulted from the enhancement of the

value of the Moab site as a result of the remedial action. The

enhanced value of the Moab site shall be equal to the difference

between -

''(A) the fair market value of the Moab site on the date of the

enactment of the Floyd D. Spence National Defense Authorization

Act for Fiscal Year 2001 (Oct. 30, 2000), based on information

available on that date; and

''(B) the fair market value of the Moab site, as appraised on

completion of the remedial action.

''SEC. 3406. ADMINISTRATION.

''(a) Protection of Existing Rights. - At the discretion of the

Secretary of Energy, the disposal of property under this title

shall be subject to any contract related to the United States

ownership interest in the property in effect at the time of

disposal, including any lease agreement pertaining to the United

States interest in Naval Petroleum Reserve Numbered 2.

''(b) Deposit of Receipts. - Notwithstanding any other law, all

monies received by the United States from the disposal of property

under this title, including any monies received from a lease

entered into under this title, shall be deposited in the general

fund of the Treasury.

''(c) Treatment of Royalties. - Any petroleum accruing to the

United States as royalty from any lease of lands transferred under

this title shall be delivered to the United States, or shall be

paid for in money, as the Secretary of the Interior may elect.

''(d) Elements of Lease. - A lease under this title may provide

for the exploration for, and development and production of,

petroleum, other than petroleum in the form of oil shale.

''(e) Waiver of Requirements Regarding Consultation and Approval.

- Section 7431 of title 10, United States Code, shall not apply to

the disposal of property under this title.

''(f) Oil Shale Reserve Numbered 2. - This section does not apply

to the transfer of Oil Shale Reserve Numbered 2 under section

3405.''

Pub. L. 104-106, div. C, title XXXIV, subtitle B, Feb. 10, 1996,

110 Stat. 631, as amended by Pub. L. 106-65, div. A, title X, Sec.

1067(6), Oct. 5, 1999, 113 Stat. 774, provided that:

''SEC. 3411. DEFINITIONS.

''For purposes of this subtitle:

''(1) The terms 'Naval Petroleum Reserve Numbered 1' and

'reserve' mean Naval Petroleum Reserve Numbered 1, commonly

referred to as the Elk Hills Unit, located in Kern County,

California, and established by Executive order of the President,

dated September 2, 1912.

''(2) The term 'naval petroleum reserves' has the meaning given

that term in section 7420(2) of title 10, United States Code,

except that the term does not include Naval Petroleum Reserve

Numbered 1.

''(3) The term 'unit plan contract' means the unit plan

contract between equity owners of the lands within the boundaries

of Naval Petroleum Reserve Numbered 1 entered into on June 19,

1944.

''(4) The term 'effective date' means the date of the enactment

of this Act (Feb. 10, 1996).

''(5) The term 'Secretary' means the Secretary of Energy.

''(6) The term 'appropriate congressional committees' means the

Committee on Armed Services of the Senate and the Committee on

Armed Services and the Committee on Commerce (now Committee on

Energy and Commerce) of the House of Representatives.

''SEC. 3412. SALE OF NAVAL PETROLEUM RESERVE NUMBERED 1.

''(a) Sale of Reserve Required. - Subject to section 3414, not

later than two years after the effective date, the Secretary of

Energy shall enter into one or more contracts for the sale of all

right, title, and interest of the United States in and to all lands

owned or controlled by the United States inside Naval Petroleum

Reserve Numbered 1. Chapter 641 of title 10, United States Code,

shall not apply to the sale of the reserve.

''(b) Equity Finalization. - (1) Not later than eight months

after the effective date, the Secretary shall finalize equity

interests of the known oil and gas zones in Naval Petroleum Reserve

Numbered 1 in the manner provided by this subsection.

''(2) The Secretary shall retain the services of an independent

petroleum engineer, mutually acceptable to the equity owners, who

shall prepare a recommendation on final equity figures. The

Secretary may accept the recommendation of the independent

petroleum engineer for final equity in each known oil and gas zone

and establish final equity interest in Naval Petroleum Reserve

Numbered 1 in accordance with the recommendation, or the Secretary

may use such other method to establish final equity interest in the

reserve as the Secretary considers appropriate.

''(3) If, on the effective date, there is an ongoing equity

redetermination dispute between the equity owners under section

9(b) of the unit plan contract, the dispute shall be resolved in

the manner provided in the unit plan contract within eight months

after the effective date. The resolution shall be considered final

for all purposes under this section.

''(c) Notice of Sale. - Not later than two months after the

effective date, the Secretary shall publish a notice of intent to

sell Naval Petroleum Reserve Numbered 1. The Secretary shall make

all technical, geological, and financial information relevant to

the sale of the reserve available to all interested and qualified

buyers upon request. The Secretary, in consultation with the

Administrator of General Services, shall ensure that the sale

process is fair and open to all interested and qualified parties.

''(d) Establishment of Minimum Sale Price. - (1) Not later than

seven months after the effective date, the Secretary shall retain

the services of five independent experts in the valuation of oil

and gas fields to conduct separate assessments, in a manner

consistent with commercial practices, of the value of the interest

of the United States in Naval Petroleum Reserve Numbered 1. The

independent experts shall complete their assessments within 11

months after the effective date. In making their assessments, the

independent experts shall consider (among other factors) -

''(A) all equipment and facilities to be included in the sale;

''(B) the estimated quantity of petroleum and natural gas in

the reserve; and

''(C) the net present value of the anticipated revenue stream

that the Secretary and the Director of the Office of Management

and Budget jointly determine the Treasury would receive from the

reserve if the reserve were not sold, adjusted for any

anticipated increases in tax revenues that would result if the

reserve were sold.

''(2) The independent experts retained under paragraph (1) shall

also determine and submit to the Secretary the estimated total

amount of the cost of any environmental restoration and remediation

necessary at the reserve. The Secretary shall report the estimate

to the Director of the Office of Management and Budget, the

Secretary of the Treasury, and Congress.

''(3) The Secretary, in consultation with the Director of the

Office of Management and Budget, shall set the minimum acceptable

price for the reserve. The Secretary may not set the minimum

acceptable price below the higher of -

''(A) the average of the five assessments prepared under

paragraph (1); and

''(B) the average of three assessments after excluding the high

and low assessments.

''(e) Administration of Sale; Draft Contract. - (1) Not later

than two months after the effective date, the Secretary shall

retain the services of an investment banker or an appropriate

equivalent financial adviser to independently administer, in a

manner consistent with commercial practices and in a manner that

maximizes sale proceeds to the Government, the sale of Naval

Petroleum Reserve Numbered 1 under this section. Costs and fees of

retaining the investment banker or financial adviser may be paid

out of the proceeds of the sale of the reserve.

''(2) Not later than 11 months after the effective date, the

investment banker or financial adviser retained under paragraph (1)

shall complete a draft contract or contracts for the sale of Naval

Petroleum Reserve Numbered 1, which shall accompany the

solicitation of offers and describe the terms and provisions of the

sale of the interest of the United States in the reserve.

''(3) The draft contract or contracts shall identify -

''(A) all equipment and facilities to be included in the sale;

and

''(B) any potential claim or liability (including liability for

environmental restoration and remediation), and the extent of any

such claim or liability, for which the United States is

responsible under subsection (g).

''(4) The draft contract or contracts, including the terms and

provisions of the sale of the interest of the United States in the

reserve, shall be subject to review and approval by the Secretary,

the Secretary of the Treasury, and the Director of the Office of

Management and Budget. Each of those officials shall complete the

review of, and approve or disapprove, the draft contract or

contracts not later than 12 months after the effective date.

''(f) Solicitation of Offers. - (1) Not later than 13 months

after the effective date, the Secretary shall publish the

solicitation of offers for Naval Petroleum Reserve Numbered 1.

''(2) Not later than 18 months after the effective date, the

Secretary shall identify the highest responsible offer or offers

for purchase of the interest of the United States in Naval

Petroleum Reserve Numbered 1 that, in total, meet or exceed the

minimum acceptable price determined under subsection (d)(3).

''(3) The Secretary shall take such action immediately after the

effective date as is necessary to obtain from an independent

petroleum engineer within 10 months after that date a reserve

report prepared in a manner consistent with commercial practices.

The Secretary shall use the reserve report in support of the

preparation of the solicitation of offers for the reserve.

''(g) Future Liabilities. - To effectuate the sale of the

interest of the United States in Naval Petroleum Reserve Numbered

1, the Secretary may extend such indemnities and warranties as the

Secretary considers reasonable and necessary to protect the

purchaser from claims arising from the ownership in the reserve by

the United States.

''(h) Maintaining Production. - Until the sale of Naval Petroleum

Reserve Numbered 1 is completed under this section, the Secretary

shall continue to produce the reserve at the maximum daily oil or

gas rate from a reservoir, which will permit maximum economic

development of the reservoir consistent with sound oil field

engineering practices in accordance with section 3 of the unit plan

contract.

''(i) Noncompliance With Deadlines. - At any time during the

two-year period beginning on the effective date, if the Secretary

determines that the actions necessary to complete the sale of the

reserve within that period are not being taken or timely completed,

the Secretary shall transmit to the appropriate congressional

committees a written notification of that determination together

with a plan setting forth the actions that will be taken to ensure

that the sale of the reserve will be completed within that period.

The Secretary shall consult with the Director of the Office of

Management and Budget in preparing the plan for submission to the

committees.

''(j) Oversight. - The Comptroller General shall monitor the

actions of the Secretary relating to the sale of the reserve and

report to the appropriate congressional committees any findings on

such actions that the Comptroller General considers appropriate to

report to the committees.

''(k) Acquisition of Services. - The Secretary may enter into

contracts for the acquisition of services required under this

section under the authority of paragraph (7) of section 303(c) of

the Federal Property and Administrative Services Act of 1949 (41

U.S.C. 253(c)), except that the notification required under

subparagraph (B) of such paragraph for each contract shall be

submitted to Congress not less than 7 days before the award of the

contract.

''SEC. 3413. EFFECT OF SALE OF RESERVE.

''(a) Effect on Existing Contracts. - (1) In the case of any

contract, in effect on the effective date, for the purchase of

production from any part of the United States' share of Naval

Petroleum Reserve Numbered 1, the sale of the interest of the

United States in the reserve shall be subject to the contract for a

period of three months after the closing date of the sale or until

termination of the contract, whichever occurs first. The term of

any contract entered into after the effective date for the purchase

of the production shall not exceed the anticipated closing date for

the sale of the reserve.

''(2) The Secretary shall exercise the termination procedures

provided in the contract between the United States and Bechtel

Petroleum Operation, Inc., Contract Number DE-ACO1-85FE60520 so

that the contract terminates not later than the date of closing of

the sale of Naval Petroleum Reserve Numbered 1 under section 3412.

''(3) The Secretary shall exercise the termination procedures

provided in the unit plan contract so that the unit plan contract

terminates not later than the date of closing of the sale of

reserve.

''(b) Effect on Antitrust Laws. - Nothing in this subtitle shall

be construed to alter the application of the antitrust laws of the

United States to the purchaser or purchasers (as the case may be)

of Naval Petroleum Reserve Numbered 1 or to the lands in the

reserve subject to sale under section 3412 upon the completion of

the sale.

''(c) Preservation of Private Right, Title, and Interest. -

Nothing in this subtitle shall be construed to adversely affect the

ownership interest of any other entity having any right, title, and

interest in and to lands within the boundaries of Naval Petroleum

Reserve Numbered 1 and which are subject to the unit plan contract.

''(d) Transfer of Otherwise Nontransferable Permit. - The

Secretary may transfer to the purchaser or purchasers (as the case

may be) of Naval Petroleum Reserve Numbered 1 the incidental take

permit regarding the reserve issued to the Secretary by the United

States Fish and Wildlife Service and in effect on the effective

date if the Secretary determines that transfer of the permit is

necessary to expedite the sale of the reserve in a manner that

maximizes the value of the sale to the United States. The

transferred permit shall cover the identical activities, and shall

be subject to the same terms and conditions, as apply to the permit

at the time of the transfer.

''SEC. 3414. CONDITIONS ON SALE PROCESS.

''(a) Notice Regarding Sale Conditions. - The Secretary may not

enter into any contract for the sale of Naval Petroleum Reserve

Numbered 1 under section 3412 until the end of the 31-day period

beginning on the date on which the Secretary submits to the

appropriate congressional committees a written notification -

''(1) describing the conditions of the proposed sale; and

''(2) containing an assessment by the Secretary of whether it

is in the best interests of the United States to sell the reserve

under such conditions.

''(b) Authority to Suspend Sale. - (1) The Secretary may suspend

the sale of Naval Petroleum Reserve Numbered 1 under section 3412

if the Secretary and the Director of the Office of Management and

Budget jointly determine that -

''(A) the sale is proceeding in a manner inconsistent with

achievement of a sale price that reflects the full value of the

reserve; or

''(B) a course of action other than the immediate sale of the

reserve is in the best interests of the United States.

''(2) Immediately after making a determination under paragraph

(1) to suspend the sale of Naval Petroleum Reserve Numbered 1, the

Secretary shall submit to the appropriate congressional committees

a written notification describing the basis for the determination

and requesting a reconsideration of the merits of the sale of the

reserve.

''(c) Effect of Reconsideration Notice. - After the Secretary

submits a notification under subsection (b), the Secretary may not

complete the sale of Naval Petroleum Reserve Numbered 1 under

section 3412 or any other provision of law unless the sale of the

reserve is authorized in an Act of Congress enacted after the date

of the submission of the notification.

''SEC. 3415. TREATMENT OF STATE OF CALIFORNIA CLAIM REGARDING

RESERVE.

''(a) Reservation of Funds. - After the costs incurred in the

conduct of the sale of Naval Petroleum Reserve Numbered 1 under

section 3412 are deducted, nine percent of the remaining proceeds

from the sale of the reserve shall be reserved in a contingent fund

in the Treasury for payment to the State of California for the

Teachers' Retirement Fund of the State in the event that, and to

the extent that, the claims of the State against the United States

regarding production and proceeds of sale from Naval Petroleum

Reserve Numbered 1 are -

''(1) settled by agreement with the United States under

subsection (c); or

''(2) finally resolved in favor of the State by a court of

competent jurisdiction, if a settlement agreement is not reached.

''(b) Disposition of Funds. - In such amounts as may be provided

in appropriation Acts, amounts in the contingent fund shall be

available for paying a claim described in subsection (a). After

final disposition of the claims, any unobligated balance in the

contingent fund shall be credited to the general fund of the

Treasury. If no payment is made from the contingent fund within 10

years after the effective date, amounts in the contingent fund

shall be credited to the general fund of the Treasury.

''(c) Settlement Offer. - Not later than 30 days after the date

of the sale of Naval Petroleum Reserve Numbered 1 under section

3412, the Secretary shall offer to settle all claims of the State

of California against the United States with respect to lands in

the reserve located in sections 16 and 36 of township 30 south,

range 23 east, Mount Diablo Principal Meridian, California, and

production or proceeds of sale from the reserve, in order to

provide proper compensation for the State's claims. The Secretary

shall base the amount of the offered settlement payment from the

contingent fund on the fair value for the State's claims, including

the mineral estate, not to exceed the amount reserved in the

contingent fund.

''(d) Release of Claims. - Acceptance of the settlement offer

made under subsection (c) shall be subject to the condition that

all claims against the United States by the State of California for

the Teachers' Retirement Fund of the State be released with respect

to lands in Naval Petroleum Reserve Numbered 1, including sections

16 and 36 of township 30 south, range 23 east, Mount Diablo

Principal Meridian, California, or production or proceeds of sale

from the reserve.

''SEC. 3416. STUDY OF FUTURE OF OTHER NAVAL PETROLEUM RESERVES.

''(a) Study Required. - The Secretary of Energy shall conduct a

study to determine which of the following options, or combinations

of options, regarding the naval petroleum reserves (other than

Naval Petroleum Reserve Numbered 1) would maximize the value of the

reserves to the United States:

''(1) Retention and operation of the naval petroleum reserves

by the Secretary under chapter 641 of title 10, United States

Code.

''(2) Transfer of all or a part of the naval petroleum reserves

to the jurisdiction of another Federal agency for administration

under chapter 641 of title 10, United States Code.

''(3) Transfer of all or a part of the naval petroleum reserves

to the Department of the Interior for leasing in accordance with

the Mineral Leasing Act (30 U.S.C. 181 et seq.) and surface

management in accordance with the Federal Land Policy and

Management Act (of 1976) (43 U.S.C. 1701 et seq.).

''(4) Sale of the interest of the United States in the naval

petroleum reserves.

''(b) Conduct of Study. - The Secretary shall retain an

independent petroleum consultant to conduct the study.

''(c) Considerations Under Study. - An examination of the value

to be derived by the United States from the transfer or sale of the

naval petroleum reserves shall include an assessment and estimate

of the fair market value of the interest of the United States in

the naval petroleum reserves. The assessment and estimate shall be

made in a manner consistent with customary property valuation

practices in the oil and gas industry.

''(d) Report and Recommendations Regarding Study. - Not later

than June 1, 1996, the Secretary shall submit to Congress a report

describing the results of the study and containing such

recommendations (including proposed legislation) as the Secretary

considers necessary to implement the option, or combination of

options, identified in the study that would maximize the value of

the naval petroleum reserves to the United States.''

-CITE-

10 USC Sec. 7421 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

-HEAD-

Sec. 7421. Jurisdiction and control

-STATUTE-

(a) The Secretary shall take possession of all properties inside

the naval petroleum reserves that are or may become subject to the

control of and use by the United States for national defense

purposes, except as otherwise provided in this chapter.

(b) The Secretary has exclusive jurisdiction and control over

those lands inside Naval Petroleum Reserves Numbered 1 and 2 that

are covered by leases granted under sections 181-184, 185-188,

189-194, 201, 202-209, 211-214, 223, 224-226, 226d, 226e, 227-229a,

241, 251, and 261-263 of title 30, and shall administer those

leases.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 457; Pub. L. 87-796, Sec. 1(1),

Oct. 11, 1962, 76 Stat. 904; Pub. L. 94-258, title II, Sec. 201(2),

Apr. 5, 1976, 90 Stat. 307; Pub. L. 98-525, title XIV, Sec.

1405(50), Oct. 19, 1984, 98 Stat. 2625.)

-MISC1-

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7421(a) 34 U.S.C. 524 (1st June 4, 1920, ch.

36 words of 1st 228 (1st par., 1st

par.). 36 words, of

amended 3d and 4th

provisos), 41 Stat.

813; June 30, 1938,

ch. 851, Sec. 1, 52

Stat. 1253; June

17, 1944, ch. 262,

58 Stat. 280.

7421(b) 34 U.S.C. 524 (293d June 4, 1920, ch.

word to end of 1st 228 (1st par.,

par.). 294th word to end,

of amended 3d and

4th provisos), 41

Stat. 813; June 30,

1938, ch. 851, Sec.

1, 52 Stat. 1252;

June 17, 1944, ch.

262, 58 Stat. 280.

34 U.S.C. 524a. Feb. 25, 1928, ch.

104, 45 Stat. 148.

-------------------------------

In subsection (b) the reference to the transfer of jurisdiction

and administration is omitted as executed.

-REFTEXT-

REFERENCES IN TEXT

Section 194 of title 30, referred to in subsec. (b), was repealed

by Pub. L. 89-554, Sec. 8(a), Sept. 6, 1966, 80 Stat. 644.

Section 204 of title 30, included within the reference to

sections 202-209 in subsec. (b), was repealed by Pub. L. 94-377,

Sec. 13(a), Aug. 4, 1976, 90 Stat. 1090, subject to valid existing

rights.

Sections 226d and 226e of title 30, referred to in subsec. (b),

were omitted from the Code. See section 226 of Title 30, Mineral

Lands and Mining.

Section 227 of title 30, referred to in subsec. (b), was omitted

from the Code.

-MISC2-

AMENDMENTS

1984 - Subsec. (b). Pub. L. 98-525 substituted ''Naval Petroleum

Reserves Numbered'' for ''naval petroleum reserves numbered''.

1976 - Subsec. (a). Pub. L. 94-258 struck out ''of the Navy''

after ''Secretary'', ''and oil shale'' after ''naval petroleum'',

and substituted ''for national defense purposes'' for ''for naval

purposes'', and ''this chapter'' for ''section 7438 hereof''.

1962 - Subsec. (a). Pub. L. 87-796 empowered the Secretary to

take possession of all properties inside the oil shale reserves,

and inserted the exception clause.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 43 section 1601.

-CITE-

10 USC Sec. 7422 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

-HEAD-

Sec. 7422. Administration

-STATUTE-

(a) The Secretary, directly or by contract, lease, or otherwise,

shall explore, prospect, conserve, develop, use, and operate the

naval petroleum reserves in his discretion, subject to the

provisions of subsection (c) and the other provisions of this

chapter; except that no petroleum leases shall be granted at Naval

Petroleum Reserves Numbered 1 and 3.

(b) Except as otherwise provided in this chapter, particularly

subsection (c), the naval petroleum reserves shall be used and

operated for -

(1) the protection, conservation, maintenance, and testing of

those reserves; or

(2) the production of petroleum whenever and to the extent that

the Secretary, with the approval of the President, finds that

such production is needed for national defense purposes and the

production is authorized by a joint resolution of Congress.

(c)(1) In administering Naval Petroleum Reserves Numbered 1, 2,

and 3, the Secretary is authorized and directed -

(A) to further explore, develop, and operate such reserves;

(B) to produce, during any extension of a period under

paragraph (2), such reserves -

(i) at the maximum efficient rate consistent with sound

engineering practices; or

(ii) at a lesser rate consistent with sound engineering

practices and the protection, conservation, maintenance, and

testing of such reserves if the Secretary determines that the

minimum price described in section 7430(b)(2) of this title

cannot be attained for the United States share of petroleum

(other than natural gas liquids) produced from such Reserves;

(C) during such production period or any extension thereof to

sell or otherwise dispose of the United States share of such

petroleum produced from such reserves as provided in section 7430

of this title; and

(D) to construct, acquire, or contract for the use of storage

and shipping facilities on and off the reserves and pipelines and

associated facilities on and off the reserves for transporting

petroleum from such reserves to the points where the production

from such reserves will be refined or shipped.

Any pipeline in the vicinity of a naval petroleum reserve not

otherwise operated as a common carrier may be acquired by the

Secretary by condemnation, if necessary, if the owner thereof

refuses to accept, convey, and transport without discrimination and

at reasonable rates any petroleum produced at such reserve. With

the approval of the Secretary, rights-of-way for new pipelines and

associated facilities may be acquired by the exercise of the right

of eminent domain in the appropriate United States district court.

Such rights-of-way may be acquired in the manner set forth in

sections 3114-3116 and 3118 of title 40, and the prospective holder

of the right-of-way is ''the authority empowered by law to acquire

the lands'' within the meaning of that Act. Such new pipelines

shall accept, convey, and transport without discrimination and at

reasonable rates any petroleum produced at such reserves as a

common carrier.

(2) After April 5, 1982, the President may extend the period of

production in the case of any naval petroleum reserve for

additional periods of not to exceed three years each -

(A) after the President requires an investigation to be made,

in the case of each extension, to determine the necessity for

continued production from such naval petroleum reserve;

(B) after the President submits to the Congress, at least 180

days before the expiration of the current production period

prescribed by this section, or any extension thereof, a copy of

the report made to him on such investigation together with a

certification by him that continued production from such naval

petroleum reserve is in the national interest; and

(C) if neither House of Congress within ninety days after

receipt of such report and certification adopts a resolution

disapproving further production from such naval petroleum

reserve.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 458; Pub. L. 87-599, Sec. 1,

Aug. 24, 1962, 76 Stat. 401; Pub. L. 87-796, Sec. 1(2), Oct. 11,

1962, 76 Stat. 904; Pub. L. 94-258, title II, Sec. 201(3), Apr. 5,

1976, 90 Stat. 307; Pub. L. 96-137, Sec. 3(a), Dec. 12, 1979, 93

Stat. 1061; Pub. L. 96-513, title V, Sec. 513(31), Dec. 12, 1980,

94 Stat. 2933; Pub. L. 98-525, title XIV, Sec. 1405(51), Oct. 19,

1984, 98 Stat. 2625; Pub. L. 99-413, Sec. 1(a), Aug. 29, 1986, 100

Stat. 944; Pub. L. 100-202, Sec. 101(g) (title II, Sec. 201), Dec.

22, 1987, 101 Stat. 1329-213, 1329-242; Pub. L. 101-189, div. A,

title XVI, Sec. 1622(f)(2), Nov. 29, 1989, 103 Stat. 1605; Pub. L.

107-217, Sec. 3(b)(30), Aug. 21, 2002, 116 Stat. 1297.)

-MISC1-

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7422 34 U.S.C. 524 (1st June 4, 1920, ch.

par., 37th through 228 (1st par., 37th

62d words, and 123d through 62d words,

through 185th and 123d through

words). 185th words, of

amended 3d and 4th

provisos), 41 Stat.

813; June 30, 1938,

ch. 851, Sec. 1, 52

Stat. 1252; June

17, 1944, ch. 262,

58 Stat. 280.

-------------------------------

AMENDMENTS

2002 - Subsec. (c)(1). Pub. L. 107-217 substituted ''sections

3114-3116 and 3118 of title 40'' for ''the Act of February 26, 1931

(40 U.S.C. 258a-258e)'' in concluding provisions.

1989 - Subsec. (c)(2)(B). Pub. L. 101-189 substituted ''180 days

before'' for ''one hundred eighty days prior to''.

1987 - Subsec. (c)(1)(B)(ii). Pub. L. 100-202 inserted ''(other

than natural gas liquids)'' after ''petroleum''.

1986 - Subsec. (c)(1)(B). Pub. L. 99-413, Sec. 1(a)(1), added

subpar. (B) and struck out former subpar. (B) which read as

follows: ''to produce such reserves at the maximum efficient rate

consistent with sound engineering practices for a period ending not

later than April 5, 1982;''.

Subsec. (c)(3). Pub. L. 99-413, Sec. 1(a)(2), struck out par. (3)

which conditioned the production authorization for Naval Petroleum

Reserve Numbered 1 upon private owners' agreements with the

Secretary to continue operations of such reserve under a unitized

plan contract that protected the public interest.

1984 - Subsec. (b). Pub. L. 98-525 struck out ''of this section''

after ''subsection (c)'' in provisions preceding par. (1).

1980 - Subsec. (c)(1). Pub. L. 96-513, Sec. 513(31)(A)-(D), in

cl. (B) substituted provisions respecting termination on April 5,

1982, for provisions respecting commencement and termination,

respectively, ninety days after date of enactment of the Naval

Petroleum Reserves Production Act of 1976, and not to exceed six

years after such date, in cl. (C) substituted ''provided in section

7430 of this title'' for ''hereinafter provided'', and in text

following cl. (D) substituted ''discrimination'' for

''discrimiation'', and ''(40 U.S.C. 258a-258e)'' for '', chapter

307 (46 Stat. 1421; 40 U.S.C. 258(a))''.

Subsec. (c)(2). Pub. L. 96-513, Sec. 513(31)(E), substituted

''After April 5, 1982,'' for ''At the conclusion of the six-year

production period authorized by paragraph (1)(B) of this

subsection''.

Subsec. (c)(3). Pub. L. 96-513, Sec. 513(31)(F), substituted ''by

July 4, 1976'' for ''within ninety days after the date of enactment

of the Naval Petroleum Reserves Production Act of 1976''.

1979 - Subsec. (c)(1). Pub. L. 96-137 struck out in text

following subpar. (D), provision requiring that pipelines and

associated facilities constructed at or procured for Naval

Petroleum Reserve Numbered 1 pursuant to this subsection have

adequate capacity to accommodate not less than three hundred fifty

thousand barrels of oil per day and be fully operable as soon as

possible, but not later than three years after the date of

enactment of the Naval Petroleum Reserves Production Act of 1976.

1976 - Subsec. (a). Pub. L. 94-258 substituted provisions

authorizing the Secretary to explore, etc., the naval petroleum

reserves in his discretion, subject to subsec. (c) of this section

and this chapter and excepting specified Reserves from leasing

arrangements, for provisions authorizing the Secretary of the Navy,

except as provided in section 7438 hereof, to explore, etc., the

naval petroleum preserves and oil shale reserves in his discretion,

subject to Presidential approval.

Subsec. (b). Pub. L. 94-258 in introductory cl. substituted

provisions authorizing use and operation of naval petroleum

reserves except as otherwise provided in this chapter and in

particular subsec. (c) of this section, for provisions authorizing

use and operation of naval petroleum and oil shale reserves and

lands outside naval petroleum reserve numbered 1 covered by

contracts under section 7426 of this title and in cl. (2) struck

out reference to gas, oil shale and products thereof.

Subsec. (c). Pub. L. 94-258 substituted provisions setting forth

manner of administration by Secretary of Naval Petroleum Reserves

Numbered 1, 2, and 3, authorizing President to extend period of

production of any naval petroleum reserve, and conditioning

production authorization for Reserve Numbered 1, for provisions

authorizing the Secretary to develop naval petroleum reserve

numbered 4, South Barrow gas field, and to supply gas to government

installations at or near Point Barrow and to the native village of

Barrow.

1962 - Subsec. (a). Pub. L. 87-796 substituted ''Except as

otherwise provided in section 7438 hereof, the Secretary'' for

''The Secretary'', and included oil shale reserves.

Subsec. (b). Pub. L. 87-796 included oil shale reserves in the

opening provisions, and substituted ''petroleum, gas, oil shale and

products thereof whenever'' for ''petroleum whenever'' in cl. (2).

Subsec. (c). Pub. L. 87-599 added subsec. (c).

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section

701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of

this title.

AVAILABILITY OF REVENUES FROM SALE OF NATURAL GAS FOR USE IN GAS

PROTECTION ACTIVITY

Pub. L. 101-512, title II, Nov. 5, 1990, 104 Stat. 1947, provided

in part: ''That, notwithstanding any other provision of law,

revenues received from the sale of natural gas after the date of

enactment of this Act (Nov. 5, 1990) from wells drilled or

communitized in fiscal year 1990 and thereafter as part of gas

protection activity at the Naval Oil Shale Reserves shall be

deposited in this account, to remain available until expended, for

use in further gas protection activity''.

CONNECTIONS TO PIPELINE IN SOUTH BARROW GAS FIELD

Section 3 of Pub. L. 87-599 provided that: ''The Federal agency

or agencies in control of any pipeline between gas wells in the

South Barrow gas field and the town of Barrow may authorize

purchasers of the gas or carriers of the gas to install connections

to such pipeline.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7423, 7430, 7431 of this

title; title 43 section 1601.

-CITE-

10 USC Sec. 7423 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

-HEAD-

Sec. 7423. Periodic re-examination of production requirements

-STATUTE-

The Secretary shall from time to time reexamine the need for the

production of petroleum from oil shale for national defense when

that production is authorized under section 7422 of this title. If

he finds that the authorized quantity is no longer needed, he shall

reduce production to the amount currently needed for national

defense.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 458; Pub. L. 87-796, Sec. 1(3),

Oct. 11, 1962, 76 Stat. 904; Pub. L. 94-258, title II, Sec. 201(4),

Apr. 5, 1976, 90 Stat. 309.)

-MISC1-

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Large)

---------------------------------------------------------------------

7423 34 U.S.C. 524 (186th June 4, 1920, ch.

through 243d words 228 (1st par.,

of 1st par.). 186th through 243d

words, of amended

3d and 4th

provisos), 41 Stat.

813; June 30, 1938,

ch. 851, Sec. 1, 52

Stat. 1252; June

17, 1944, ch. 262,

58 Stat. 280.

-------------------------------

AMENDMENTS

1976 - Pub. L. 94-258 struck out ''of the Navy'' after

''Secretary'' and ''or products'' after ''petroleum''.

1962 - Pub. L. 87-796 directed the Secretary to reexamine, from

time to time, the need for production of products from oil shale.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 43 section 1601.

-CITE-

10 USC Sec. 7424 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

-HEAD-

Sec. 7424. Protection of oil reserves; contracts for conservation

-STATUTE-

(a) To consolidate and protect the oil lands owned by the United

States, the Secretary may -

(1) contract with owners and lessees of land inside or

adjoining naval petroleum reserves for -

(A) conservation of oil and gas; and

(B) compensation for estimated drainage in lieu of drilling

or operating offset wells; and

(2) acquire privately owned lands or leases inside Naval

Petroleum Reserve Numbered 1 by exchange of -

(A) lands of the United States inside Naval Petroleum Reserve

Numbered 1;

(B) the right to royalty production from any of the naval

petroleum reserves; and

(C) the right to any money due the United States as a result

of the wrongful extraction of petroleum products from lands

inside Naval Petroleum Reserve Numbered 1.

(b) The Secretary shall report annually to Congress all

agreements under this section.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 458; Pub. L. 87-796, Sec. 1(4),

Oct. 11, 1962, 76 Stat. 904; Pub. L. 94-258, title II, Sec. 201(5),

Apr. 5, 1976, 90 Stat. 309; Pub. L. 96-513, title V, Sec.

513(32)(A), Dec. 12, 1980, 94 Stat. 2933.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

7424 34 U.S.C. 524 (4th June 4, 1920, ch.

par., less 1st 228 (4th par., less

proviso). 1st proviso, of

amended 3d and 4th

provisos), 41 Stat.

813; June 30, 1938,

ch. 851, Sec. 1, 52

Stat. 1252; June

17, 1944, ch. 262,

58 Stat. 282.

-------------------------------

AMENDMENTS

1980 - Subsec. (a). Pub. L. 96-513 substituted ''Naval Petroleum

Reserve Numbered 1'' for ''naval petroleum reserve numbered 1''

wherever appearing.

1976 - Subsec. (a). Pub. L. 94-258 struck out ''of the Navy''

after ''Secretary'', ''and oil shale'' after ''petroleum'' in par.

(1), and ''in the ground'' after ''conservation'' in subpar. (A) of

par. (1).

1962 - Subsec. (a). Pub. L. 87-796 inserted provisions in cl. (1)

empowering the Secretary to contract with owners and lessees of

land inside or adjoining oil shale reserves.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section

701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7425 of this title; title

43 section 1601.

-CITE-

10 USC Sec. 7425 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

-HEAD-

Sec. 7425. Acquisition by condemnation and purchase

-STATUTE-

(a) Whenever the Secretary is unable to make arrangements he

considers satisfactory for exchanges of land or agreements for

conservation authorized by section 7424 of this title, the

Secretary may acquire, with the approval of the President, such

privately owned lands and leases -

(1) by purchase, inside the naval petroleum reserves, or

outside those reserves on the same geologic structure; and

(2) by condemnation, inside Naval Petroleum Reserve Numbered 1,

or, if there is substantial drainage, outside that reserve on the

same geologic structure.

(b) The Secretary shall report annually to Congress all

proceedings for purchase and condemnation under this section.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 458; Pub. L. 94-258, title II,

Sec. 201(6), Apr. 5, 1976, 90 Stat. 309; Pub. L. 96-513, title V,

Sec. 513(32)(A), Dec. 12, 1980, 94 Stat. 2933; Pub. L. 106-398,

Sec. 1 (div. C, title XXXIV, Sec. 3402(b)(1)), Oct. 30, 2000, 114

Stat. 1654, 1654A-484.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

7425 34 U.S.C. 524 (5th June 4, 1920, ch.

par., 1st 123 228 (5th par., 1st

words, and 169th 123 words, and

through 193d 169th through 193d

words). words, of amended

3d and 4th

provisos), 41 Stat.

813; June 30, 1938,

ch. 851, Sec. 1, 52

Stat. 1252; June

17, 1944, ch. 262,

58 Stat. 282.

-------------------------------

The words ''Whenever the Secretary of the Navy is unable'' are

substituted for the words ''In the event of the inability of the

Secretary of the Navy'' for brevity.

AMENDMENTS

2000 - Subsec. (a). Pub. L. 106-398 substituted ''for exchanges

of land or agreements for conservation authorized by section 7424

of this title, the Secretary may acquire'' for ''for -

''(1) exchanges of land or agreements for conservation

authorized by section 7424 of this title; or

''(2) contracts for joint, unit, or other cooperative plans

with respect to lands or leases authorized by section 7426 of

this title;

he may acquire''.

1980 - Subsec. (a). Pub. L. 96-513 substituted ''Naval Petroleum

Reserve Numbered 1'' for ''naval petroleum reserve numbered 1''.

1976 - Subsec. (a). Pub. L. 94-258 struck out ''of the Navy''

after ''Secretary''.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section

701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 43 section 1601.

-CITE-

10 USC Sec. 7426 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

-HEAD-

(Sec. 7426. Repealed. Pub. L. 106-398, Sec. 1 (div. C, title XXXIV,

Sec. 3402(a)), Oct. 30, 2000, 114 Stat. 1654, 1654A-484)

-MISC1-

Section, acts Aug. 10, 1956, ch. 1041, 70A Stat. 459; Pub. L.

94-258, title II, Sec. 201(7), Apr. 5, 1976, 90 Stat. 309; Pub. L.

96-513, title V, Sec. 513(32)(A), (B), Dec. 12, 1980, 94 Stat.

2933; Pub. L. 98-525, title XIV, Sec. 1405(52), Oct. 19, 1984, 98

Stat. 2625; Pub. L. 104-106, div. A, title XV, Sec. 1502(a)(2),

Feb. 10, 1996, 110 Stat. 502; Pub. L. 106-65, div. A, title X,

Sec. 1067(1), Oct. 5, 1999, 113 Stat. 774, related to cooperative

or unit plans affecting Naval Petroleum Reserve Numbered 1.

SAVINGS PROVISION

Pub. L. 106-398, Sec. 1 (div. C, title XXXIV, Sec. 3402(c)), Oct.

30, 2000, 114 Stat. 1654, 1654A-484, provided that: ''The repeal of

section 7426 of title 10, United States Code, shall not affect the

validity of contracts that are in effect under such section on the

day before the date of the enactment of this Act (Oct. 30, 2000).

No such contract may be extended or renewed on or after the date of

the enactment of this Act.''

-CITE-

10 USC Sec. 7427 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

-HEAD-

Sec. 7427. Cooperative or unit plans in the naval petroleum

reserves

-STATUTE-

The Secretary, with the consent of the President, may make

agreements, with respect to lands inside the naval petroleum

reserves, of the same type as the Secretary of the Interior may

make under section 17(m) of the Act of February 25, 1920 (30 U.S.C.

226(m)). No such agreement made by the Secretary may extend the

term of any lease unless the agreement so provides.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 460; Pub. L. 94-258, title II,

Sec. 201(8), Apr. 5, 1976, 90 Stat. 309; Pub. L. 96-513, title V,

Sec. 513(33), Dec. 12, 1980, 94 Stat. 2934; Pub. L. 100-456, div.

A, title XII, Sec. 1233(g)(3), Sept. 29, 1988, 102 Stat. 2058.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

7427 30 U.S.C. 236b (last Aug. 8, 1946, ch.

46 words). 916, Sec. 13 (29th

through 85th words)

60 Stat. 958.

-------------------------------

AMENDMENTS

1988 - Pub. L. 100-456 substituted ''section 17(m)'' for

''section 17(j)'' and ''30 U.S.C. 226(m)'' for ''30 U.S.C.

226(j)''.

1980 - Pub. L. 96-513 substituted ''section 17(j) of the Act of

February 25, 1920 (30 U.S.C. 226(j))'' for ''section 226e of title

30''.

1976 - Pub. L. 94-258 struck out ''of the Navy'' after

''Secretary'' wherever appearing.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section

701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of

this title.

-EXEC-

EX. ORD. NO. 12929. DELEGATION OF AUTHORITY REGARDING NAVAL

PETROLEUM AND OIL SHALE RESERVES

Ex. Ord. No. 12929, Sept. 29, 1994, 59 F.R. 50473, provided:

By the authority vested in me as President by the Constitution

and the laws of the United States of America, including section 301

of title 3 and sections 7427 and 7428 of title 10, United States

Code, and in order to meet the goals and requirements of the Naval

Petroleum and Oil Shale Reserves, it is hereby ordered as follows:

The functions vested in the President by sections 7427 and 7428

of title 10 of the United States Code are delegated to the

Secretary of Energy. William J. Clinton.

Temporary delegations of functions of President under this

section were contained in the following prior Executive Orders:

Ex. Ord. No. 12784, Dec. 19, 1991, 56 F.R. 66339.

Ex. Ord. No. 12659, Dec. 15, 1988, 53 F.R. 50911.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 43 section 1601.

-CITE-

10 USC Sec. 7428 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

-HEAD-

Sec. 7428. Agreements and leases: provision for change

-STATUTE-

Every unit or cooperative plan of development and operation and

every lease affecting lands owned by the United States within Naval

Petroleum Reserve Numbered 2 and the oil shale reserves shall

contain a provision authorizing the Secretary, subject to approval

by the President and to any limitation in the plan or lease, to

change from time to time the rate of prospecting and development

on, and the quantity and rate of production from, lands of the

United States under the plan or lease, notwithstanding any other

provision of law.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 460; Pub. L. 87-796, Sec. 1(5),

Oct. 11, 1962, 76 Stat. 905; Pub. L. 94-258, title II, Sec. 201(9),

Apr. 5, 1976, 90 Stat. 309; Pub. L. 106-398, Sec. 1 (div. C, title

XXXIV, Sec. 3402(b)(2)), Oct. 30, 2000, 114 Stat. 1654, 1654A-484.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

7428 34 U.S.C. 524 June 4, 1920, ch.

(proviso of 6th 228 (6th par.,

par.). proviso, of amended

3d and 4th

provisos), 41 Stat.

813; June 30, 1938,

ch. 851, Sec. 1, 52

Stat. 1252; June

17, 1944, ch. 262,

58 Stat. 282.

-------------------------------

The words ''entered into after July 1, 1937'' and ''entered into

subsequent to July 1, 1937'' are omitted as surplusage. The words

''in his discretion'' are omitted as surplusage.

AMENDMENTS

2000 - Pub. L. 106-398 struck out '', except a plan authorized by

section 7426 of this title,'' after ''development and operation''.

1976 - Pub. L. 94-258 substituted ''within Naval Petroleum

Reserve Numbered 2 and the oil shale reserves shall contain a

provision authorizing the Secretary'' for ''within the naval

petroleum and oil shale reserves shall contain a provision

authorizing the Secretary of the Navy''.

1962 - Pub. L. 87-796 included leases affecting lands within oil

shale reserves.

-TRANS-

DELEGATION OF FUNCTIONS

Functions of the President under this section were delegated to

the Secretary of Energy by Ex. Ord. No. 12929, Sept. 29, 1994, 59

F.R. 50473, set out as a note under section 7427 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 43 section 1601.

-CITE-

10 USC Sec. 7429 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

-HEAD-

Sec. 7429. Re-lease of certain lands: lessee's preferential right

-STATUTE-

The Secretary, on terms prescribed by him, may re-lease lands in

the naval petroleum reserves that were covered by leases made

before July 1, 1936, and terminated by law at the expiration of

their initial twenty-year periods. If any such land is to be

re-leased, the Secretary shall give to the former lessee

preferential rights to the new lease.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 460; Pub. L. 94-258, title II,

Sec. 201(10), Apr. 5, 1976, 90 Stat. 309.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

7429 34 U.S.C. 524 (6th June 4, 1920, ch.

par., less 228 (6th par., less

proviso). proviso, of amended

3d and 4th

provisos), 41 Stat.

813; June 30, 1938,

ch. 851, Sec. 1, 52

Stat. 1253; June

17, 1944, ch. 262,

58 Stat. 282.

-------------------------------

The source law provided that leases of lands of the United States

within the naval petroleum reserves in existence before July 1,

1936, except leases that had become part of an approved unit or

cooperative plan and agreement, should terminate at the end of

their initial 20-year period, and that the lands covered by these

leases could then be re-leased by the Secretary of the Navy. All of

the leases covered by this provision have terminated as provided

therein. Thus the provision for the termination of the leases is

executed and the only remaining effect of the source is to

authorize the re-lease of the lands formerly covered by the

terminated leases. This section is worded accordingly. Reference

to the classes of leases that were excepted from the termination is

omitted as unnecessary because these leases were, of course, not

terminated. They are not affected, since this section refers only

to leases that were ''terminated by law''. The word ''conditions''

is omitted as included in the word ''terms''.

AMENDMENTS

1976 - Pub. L. 94-258 struck out ''of the Navy'' after

''Secretary''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 43 section 1601.

-CITE-

10 USC Sec. 7430 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

-HEAD-

Sec. 7430. Disposition of products

-STATUTE-

(a) In administering the naval petroleum reserves under this

chapter, the Secretary shall use, store, or sell the petroleum

produced from the naval petroleum reserves and lands covered by

joint, unit, or other cooperative plans.

(b)(1) Subject to paragraph (2) and notwithstanding any other

provision of law, each sale of the United States share of petroleum

shall be made by the Secretary at public sale to the highest

qualified bidder, at such time, in such amounts, and after such

advertising as the Secretary considers proper and without regard to

Federal, State, or local regulations controlling sales or

allocation of petroleum products. Each sale of the United States

share of petroleum shall be for periods of not more than one year,

except that a sale of natural gas may be made for a period of more

than one year.

(2) The Secretary may not sell any part of the United States

share of petroleum produced from Naval Petroleum Reserves Numbered

2 and 3 at a price less than the current sales price, as estimated

by the Secretary, of comparable petroleum in the same area.

(3) For purposes of paragraph (2), the term ''petroleum'' does

not include natural gas liquids.

(c) In no event shall the Secretary permit the award of any

contract which would result in any person obtaining control,

directly or indirectly, over more than 20 percent of the estimated

annual United States share of petroleum produced from Naval

Petroleum Reserve Numbered 1.

(d) Each proposal for sale under this title shall provide that

the terms of every sale of the United States share of petroleum

from the naval petroleum reserves shall be so structured as to give

full and equal opportunity for the acquisition of petroleum by all

interested persons, including major and independent oil producers

and refiners alike. When the Secretary, in consultation with the

Secretary of the Interior, determines that the public interests

will be served by the sale of petroleum to small refiners not

having their own adequate sources of supply of petroleum, the

Secretary is authorized and directed to set aside a portion of the

United States share of petroleum produced for sale to such refiners

under the provisions of this section for processing or use in such

refineries, except that -

(1) none of the production sold to small refiners may be resold

in kind;

(2) production must be sold at a cost of not less than the

prevailing local market price of comparable petroleum;

(3) the set-aside portion may not exceed 25 percent of the

estimated annual United States share of the total production from

all producing naval petroleum reserves; and

(4) notwithstanding the provisions of subsection (b), the

Secretary may, at his discretion if he deems it to be in the

public interest, prorate such petroleum among such refiners for

sale, without competition, at not less than the prevailing local

market price of comparable petroleum.

(e) Any petroleum produced from the naval petroleum reserves,

except such petroleum which is either exchanged in similar

quantities for convenience or increased efficiency or

transportation with persons or the government of an adjacent

foreign state, or which is temporarily exported for convenience or

increased efficiency of transportation across parts of an adjacent

foreign state and reenters the United States, shall be subject to

all of the limitations and licensing requirements of the Export

Administration Act of 1979 (50 U.S.C. App. 2401 et seq.) and, in

addition, before any petroleum subject to this section may be

exported under the limitations and licensing requirement and

penalty and enforcement provisions of the Export Administration Act

of 1979, the President must make and publish an express finding

that such exports will not diminish the total quality or quantity

of petroleum available to the United States and that such exports

are in the national interest and are in accord with the Export

Administration Act of 1979.

(f) During the period of production or any extension thereof

authorized by section 7422(c) of this title, the consultation and

approval requirements of section 7431(a)(3) of this title are

waived.

(g)(1) Prior to the promulgation of any rules and regulations,

plans of development and amendments thereto, and in the entering

and making of contracts and operating agreements relating to the

development, production, or sale of petroleum in or from the

reserves, the Secretary shall consult with and give due

consideration to the views of the Attorney General of the United

States with respect to matters which may affect competition.

(2) No contract or operating agreement may be made, issued, or

executed under this chapter until at least 15 days after the

Secretary notifies the Attorney General of the proposed contract or

operating agreement. Such notification shall contain such

information as the Attorney General may require in order to advise

the Secretary as to whether such contract or operating agreement

may create or maintain a situation inconsistent with the antitrust

laws. If, within such 15-day period, the Attorney General advises

the Secretary that a contract or operating agreement may create or

maintain a situation inconsistent with the antitrust laws, then the

Secretary may not make, issue, or execute that contract or

operating agreement.

(h) Nothing in this chapter shall be deemed to confer on any

person immunity from civil or criminal liability, or to create

defenses to actions, under the antitrust laws.

(i) In this section, the term ''antitrust laws'' means -

(1) the Sherman Act (15 U.S.C. 1 et seq.);

(2) the Clayton Act (15 U.S.C. 12 et seq.);

(3) the Federal Trade Commission Act (15 U.S.C. 41 et seq.);

(4) sections 73 and 74 of the Wilson Tariff Act (15 U.S.C. 8

and 9); and

(5) sections 2, 3, and 4 of the Act of June 19, 1936 (commonly

referred to as the ''Robinson-Patman Act'') (15 U.S.C. 13a, 13b,

and 21a).

(j) Any pipeline which accepts, conveys, or transports any

petroleum produced from Naval Petroleum Reserves Numbered 1 or

Numbered 3 shall accept, convey, and transport without

discrimination and at reasonable rates any such petroleum as a

common carrier insofar as petroleum from such reserves is

concerned. Every contract entered into by the Secretary for the

sale of any petroleum owned by the United States which is produced

from such reserves shall contain provisions implementing the

requirements of the preceding sentence if the contractor owns a

controlling interest in any pipeline or any company operating any

pipeline, or is the operator of any pipeline, which carries any

petroleum produced from such naval petroleum reserves. The

Secretary may promulgate rules and regulations for the purpose of

carrying out the provisions of this section and he, or the

Secretary of the Interior where the authority extends to him, may

declare forfeit any contract, operating agreement, right-of-way,

permit, or easement held by any person violating any such rule or

regulation. This section shall not apply to any natural gas common

carrier pipeline operated by any person subject to regulation under

the Natural Gas Act (15 U.S.C. 717 et seq.) or any public utility

subject to regulation by a State or municipal regulatory agency

having jurisdiction to regulate the rates and charges for the sale

of natural gas to consumers within the State or municipality.

(k)(1) With respect to all or any part of the United States share

of petroleum produced from the naval petroleum reserves, the

President may direct that the Secretary -

(A) place that petroleum in the Strategic Petroleum Reserve as

authorized by sections 151 through 166 of the Energy Policy and

Conservation Act (42 U.S.C. 6231-6246); or

(B) exchange, directly or indirectly, that petroleum for other

petroleum to be placed in the Strategic Petroleum Reserve under

such terms and conditions and by such methods as the Secretary

determines to be appropriate, without regard to otherwise

applicable Federal procurement statutes and regulations.

(2) The requirements of section 159 of the Energy Policy and

Conservation Act (42 U.S.C. 6239) do not apply to actions taken

under this subsection.

(l)(1) Notwithstanding any other provision of this chapter (but

subject to paragraph (2)), during any period in which the

production of petroleum is authorized from Naval Petroleum Reserves

Numbered 1, 2, or 3, the Secretary, at the request of the Secretary

of Defense, may provide any portion of the United States share of

petroleum so produced to the Department of Defense for its use,

exchange, or sale in order to meet petroleum product requirements

of the Department of Defense.

(2) Petroleum may be provided to the Department of Defense under

paragraph (1) either directly or by such exchange as the Secretary

deems appropriate. Appropriate reimbursement reasonably reflecting

the fair market value shall be provided by the Secretary of Defense

for petroleum provided under this subsection.

(3) Any exchange made pursuant to this subsection may be made

without regard to otherwise applicable Federal procurement statutes

and regulations.

(4) Paragraph (1) does not apply to any petroleum set aside for

small refiners under subsection (d) or placed in the Strategic

Petroleum Reserve under subsection (k).

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 460; Pub. L. 87-599, Sec. 2,

Aug. 24, 1962, 76 Stat. 401; Pub. L. 87-796, Sec. 1(6), Oct. 11,

1962, 76 Stat. 905; Pub. L. 94-258, title II, Sec. 201(11), Apr. 5,

1976, 90 Stat. 309; Pub. L. 96-294, title VIII, Sec. 804, June 30,

1980, 94 Stat. 777; Pub. L. 96-513, title V, Sec. 513(34), Dec. 12,

1980, 94 Stat. 2934; Pub. L. 97-22, Sec. 11(a)(10), July 10, 1981,

95 Stat. 138; Pub. L. 98-525, title XIV, Sec. 1405(53), Oct. 19,

1984, 98 Stat. 2625; Pub. L. 99-413, Sec. 1(b), (c), Aug. 29, 1986,

100 Stat. 944, 945; Pub. L. 100-26, Sec. 7(k)(9), Apr. 21, 1987,

101 Stat. 284; Pub. L. 100-202, Sec. 101(g) (title II, Sec. 201),

Dec. 22, 1987, 101 Stat. 1329-213, 1329-242; Pub. L. 100-456, div.

A, title XII, Sec. 1233(e)(2), Sept. 29, 1988, 102 Stat. 2057; Pub.

L. 106-398, Sec. 1 (div. C, title XXXIV, Sec. 3401), Oct. 30, 2000,

114 Stat. 1654, 1654A-484; Pub. L. 107-107, div. A, title X, Sec.

1048(e)(12), Dec. 28, 2001, 115 Stat. 1228.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

7430(a) 34 U.S.C. 524 (244th June 4, 1920, ch.

through 293d words 228 (1st par.,

of 1st par.). 244th through 293d

words, of amended

3d and 4th

provisos), 41 Stat.

813; June 30, 1938,

ch. 851, Sec. 1, 52

Stat. 1252; June

17, 1944, ch. 262,

58 Stat. 281.

7430(b) 34 U.S.C. 524 (2d June 4, 1920, ch.

sentence of 3d 228 (3d par., 2d

par.). sentence, of

amended 3d and 4th

provisos), 41 Stat.

813; June 30, 1938,

ch. 851, Sec. 1, 52

Stat. 1252; June

17, 1944, ch. 262,

58 Stat. 281.

-------------------------------

In subsection (a) the words ''subject to the applicable

limitations and restrictions of this Act'' are omitted as

surplusage and the words ''in administering'' are inserted.

In subsection (b) the words ''under this section'' are

substituted for the words ''from the naval reserves'' to make it

clear that the requirements of this subsection apply to sales of

petroleum, gas, and other hydrocarbons from lands outside petroleum

reserve numbered 1 covered by joint, unit, or other cooperative

plans as well as the sale of those products from the naval reserves

proper. Subsection (a) is the only authority for the sale of

petroleum, gas, and other hydrocarbons from the naval petroleum

reserves.

-REFTEXT-

REFERENCES IN TEXT

The Export Administration Act of 1979, referred to in subsec.

(e), is Pub. L. 96-72, Sept. 29, 1979, 93 Stat. 503, which is

classified principally to section 2401 et seq. of the Appendix to

Title 50, War and National Defense. For complete classification of

this Act to the Code, see Short Title note set out under section

2401 of the Appendix to Title 50 and Tables.

The Sherman Act, referred to in subsec. (i)(1), is act July 2,

1890, ch. 647, 26 Stat. 209, as amended, which is classified to

sections 1 to 7 of Title 15, Commerce and Trade. For complete

classification of this Act to the Code, see Short Title note set

out under section 1 of Title 15 and Tables.

The Clayton Act, referred to in subsec. (i)(2), is act Oct. 15,

1914, ch. 323, 38 Stat. 730, as amended, which is classified

generally to sections 12, 13, 14 to 19, 20, 21, and 22 to 27 of

Title 15, and sections 52 and 53 of Title 29, Labor. For further

details and complete classification of this Act to the Code, see

References in Text note set out under section 12 of Title 15 and

Tables.

The Federal Trade Commission Act, referred to in subsec. (i)(3),

is act Sept. 26, 1914, ch. 311, 38 Stat. 717, as amended, which is

classified generally to subchapter I (Sec. 41 et seq.) of chapter 2

of Title 15. For complete classification of this Act to the Code,

see section 58 of Title 15 and Tables.

Sections 73 and 74 of the Wilson Tariff Act, referred to in

subsec. (i)(4), are sections 73 and 74 of act Aug. 27, 1894, ch.

349, 28 Stat. 570, which enacted sections 8 and 9, respectively, of

Title 15.

Act of June 19, 1936, referred to in subsec. (i)(5), is act June

19, 1936, ch. 592, 49 Stat. 1526, popularly known as the

Robinson-Patman Antidiscrimination Act and also as the

Robinson-Patman Price Discrimination Act, which enacted sections

13a, 13b, and 21a of Title 15 and amended section 13 of Title 15.

For complete classification of this Act to the Code, see Short

Title note set out under section 13 of Title 15 and Tables.

The Natural Gas Act, referred to in subsec. (j), is act June 21,

1938, ch. 556, 52 Stat. 821, as amended, which is classified

generally to chapter 15B (Sec. 717 et seq.) of Title 15. For

complete classification of this Act to the Code, see section 717w

of Title 15 and Tables.

-MISC2-

AMENDMENTS

2001 - Subsec. (b)(2). Pub. L. 107-107 substituted ''at a price

less than the current sales price'' for ''at a price less than the

higher of - (A) the current sales price'', substituted a period for

''; or'' after ''petroleum in the same area'', and struck out

subpar. (B) which read as follows: ''the price of petroleum being

purchased for the Strategic Petroleum Reserve, minus the cost of

transporting petroleum from the naval petroleum reserve concerned

to the nearest storage area of the Strategic Petroleum Reserve,

with adjustments for the difference in the quality of the petroleum

being purchased for the Strategic Petroleum Reserve and petroleum

being produced from the naval petroleum reserve concerned.''

2000 - Subsec. (b)(2). Pub. L. 106-398 substituted ''Naval

Petroleum Reserves Numbered 2 and 3'' for ''Naval Petroleum

Reserves Numbered 1, 2, and 3'' in introductory provisions and

struck out ''90 percent of'' before ''the current sales price'' in

subpar. (A).

1988 - Subsec. (b)(3). Pub. L. 100-456 realigned margin of par.

(3) and substituted a period for comma at end.

1987 - Subsec. (b)(3). Pub. L. 100-202 added par. (3).

Subsec. (i). Pub. L. 100-26 substituted ''In'' for ''As used

in''.

1986 - Subsec. (b). Pub. L. 99-413, Sec. 1(b), designated

existing provisions as par. (1), substituted ''Subject to paragraph

(2) and notwithstanding'' for ''Notwithstanding'', and added par.

(2).

Subsec. (g)(2). Pub. L. 99-413, Sec. 1(c), substituted ''15

days'' for ''30 days'' and ''15-day'' for ''30-day''.

1984 - Subsec. (d)(4). Pub. L. 98-525, Sec. 1405(53)(A), struck

out ''of this section'' after ''subsection (b)''.

Subsec. (g)(2). Pub. L. 98-525, Sec. 1405(53)(B), substituted

''30 days'' for ''thirty days'' and ''30-day'' for ''thirty day''.

Subsec. (l)(4). Pub. L. 98-525, Sec. 1405(53)(C), struck out ''of

this section'' after ''subsection (d)'' and ''subsection (k)''.

1981 - Subsec. (e). Pub. L. 97-22 substituted ''Export

Administration Act of 1979'' for ''Export Administration Act of

1969'' in three places.

1980 - Subsec. (b). Pub. L. 96-294, Sec. 804(a), struck out ''for

periods of not more than one year,'' after ''qualified bidder,''

and inserted last sentence limiting sales of the United States

share of petroleum to periods of not more than one year, except for

sales of natural gas.

Subsecs. (c), (d)(3). Pub. L. 96-513(34)(A), substituted

''percent'' for ''per centum''.

Subsec. (e). Pub. L. 96-513, Sec. 513(34)(B), substituted ''(50

U.S.C. App. 2401 et seq.)'' for ''(83 Stat. 841)''.

Subsec. (f). Pub. L. 96-513, Sec. 513(34)(C), inserted references

to this title wherever appearing.

Subsec. (i). Pub. L. 96-513, Sec. 513(34)(D), substituted ''(1)

the Sherman Act (15 U.S.C. 1 et seq.);'', ''(2) the Clayton Act (15

U.S.C. 12 et seq.);'', ''(3) the Federal Trade Commission Act (15

U.S.C. 41 et seq.);'', ''(4) sections 73 and 74 of the Wilson

Tariff Act (15 U.S.C. 8 and 9); and'', and ''(5) sections 2, 3, and

4 of the Act of June 19, 1936 (commonly referred to as the

'Robinson-Patman Act') (15 U.S.C. 13a, 13b, and 21a).'' for ''(1)

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;'' ''(2) 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;'' ''(3) the Federal Trade

Commission Act (15 U.S.C. 41 et seq.), as amended;'' ''(4) 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'', and

''(5) sections 2, 3, and 4 of the Act of June 19, 1936, chapter 592

(15 U.S.C. 13a, 13b, and 21a)'', respectively.

Subsec. (j). Pub. L. 96-513, Sec. 513(34)(E), inserted ''(15

U.S.C. 717 et seq.)''.

Subsec. (k). Pub. L. 96-294, Sec. 804(b), amended subsec. (k)

generally, inserting references to the Secretary, provision

authorizing the exchange of petroleum under terms and conditions

determined appropriate without regard to Federal procurement

statutes and regulations, and provision making 42 U.S.C. 6239

inapplicable.

Subsec. (l). Pub. L. 96-294, Sec. 804(c), added subsec. (l).

1976 - Subsec. (a). Pub. L. 94-258 substituted provisions setting

forth requirements for Secretary in administering naval petroleum

reserves under this chapter, for provisions setting forth

requirements for Secretary of the Navy in administering naval

petroleum and oil shale reserves under this chapter.

Subsec. (b). Pub. L. 94-258 inserted ''Notwithstanding any other

provision of law'' before ''each sale'', reference to United States

share of petroleum, provision relating to periods of sale, and

provision exempting Federal, State, or local regulations

controlling sales or allocation of petroleum products, and struck

out applicability to sales of gas, other hydrocarbons, oil shale,

or products therefrom.

Subsecs. (c) to (k). Pub. L. 94-258 added subsecs. (c) to (k).

1962 - Subsec. (a). Pub. L. 87-796 included provision for

administration of oil shale reserves, required the Secretary of the

Navy to use, store, sell, or exchange oil shale and products

therefrom produced from oil shale reserves for other petroleum or

refined products, and deleted provision which required the

Secretary to use, store, sell, or exchange gas products from lands

in the South Barrow gas field of naval petroleum reserve numbered 4

for other petroleum or refined products.

Pub. L. 87-599 required the Secretary of the Navy to use, store,

sell, or exchange gas products from lands in the South Barrow gas

field of naval petroleum reserve numbered 4 for other petroleum or

refined products.

Subsec. (b). Pub. L. 87-796 included sale of oil shale and

products from petroleum, gas, other hydrocarbons, and oil shale.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section

701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of

this title.

-TRANS-

DELEGATION OF FUNCTIONS

Functions vested in President by subsec. (k) of this section

delegated to Secretary of Energy by section 1-102 of Ex. Ord. No.

12231, Aug. 4, 1980, 45 F.R. 52139, set out as a note under section

6240 of Title 42, The Public Health and Welfare.

-MISC5-

MINIMUM SELLING PRICE OF UNITED STATES SHARE OF PETROLEUM

Pub. L. 106-291, title II, Oct. 11, 2000, 114 Stat. 976, provided

in part: ''That the requirements of 10 U.S.C. 7430(b)(2)(B) shall

not apply to fiscal year 2001 and any fiscal year thereafter''.

Similar provisions were contained in the following appropriation

and authorization acts:

Pub. L. 106-113, div. B, Sec. 1000(a)(3) (title II), Nov. 29,

1999, 113 Stat. 1535, 1501A-179.

Pub. L. 105-277, div. A, Sec. 101(e) (title II), Oct. 21, 1998,

112 Stat. 2681-231, 2681-276.

Pub. L. 105-85, div. C, title XXXIV, Sec. 3402, Nov. 18, 1997,

111 Stat. 2059.

Pub. L. 105-83, title II, Nov. 14, 1997, 111 Stat. 1580.

Pub. L. 104-208, div. A, title I, Sec. 101(d) (title II), Sept.

30, 1996, 110 Stat. 3009-181, 3009-210.

Pub. L. 104-201, div. C, title XXXIV, Sec. 3402, Sept. 23, 1996,

110 Stat. 2858.

Pub. L. 104-134, title I, Sec. 101(c) (title II), Apr. 26, 1996,

110 Stat. 1321-156, 1321-187; renumbered title I, Pub. L. 104-140,

Sec. 1(a), May 2, 1996, 110 Stat. 1327.

Pub. L. 104-106, div. C, title XXXIV, Sec. 3402, Feb. 10, 1996,

110 Stat. 631.

Pub. L. 103-337, div. C, title XXXV, Sec. 3502, Oct. 5, 1994,

108 Stat. 3111.

Pub. L. 103-332, title II, Sept. 30, 1994, 108 Stat. 2525.

Pub. L. 103-138, title II, Nov. 11, 1993, 107 Stat. 1405.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7422 of this title; title

42 section 6506; title 43 section 1601.

-CITE-

10 USC Sec. 7431 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

-HEAD-

Sec. 7431. Requirements as to consultation and approval

-STATUTE-

(a) The Committee on Armed Services of the Senate and the

Committee on Armed Services of the House of Representatives must be

consulted and the President's approval must be obtained before any

condemnation proceedings may be started under this chapter and

before any of the following transactions authorized by this chapter

may be effective:

(1) A lease of any part of the naval petroleum reserves.

(2) A contract to alienate from the United States the use,

control, or possession of any part of the naval petroleum

reserves (except that consultation and Presidential approval are

not required in connection with the issuance of permits,

licenses, easements, grazing and agricultural leases,

rights-of-way, and similar contracts pertaining to use of the

surface area of the naval petroleum reserves).

(3) A contract to sell the petroleum (other than royalty oil

and gas) produced from any part of the naval petroleum reserves.

(4) A contract for conservation or for compensation for

estimated drainage.

(5) An agreement to exchange land, the right to royalty

production, or the right to any money due the United States.

(b)(1) During the period of production authorized by section

7422(c) of this title, the Secretary shall submit to the Committee

on Armed Services of the Senate and the Committee on Armed Services

of the House of Representatives any new plans or substantial

amendments to ongoing plans for the exploration, development, and

production of the naval petroleum reserves.

(2) All plans or substantial amendments submitted to the Congress

pursuant to this section shall contain a report by the Attorney

General of the United States with respect to the anticipated

effects of such plans or amendments on competition. Such plans or

amendments shall not be implemented until sixty days after such

plans or amendments have been submitted to such committees.

(c) During the period of production authorized by section 7422(c)

of this title, the Secretary shall submit annual reports as of the

first day of the fiscal year to the Committee on Armed Services of

the Senate and the Committee on Armed Services of the House of

Representatives, and such committees shall cause such reports to be

printed as a Senate or House document, as appropriate. The

Secretary shall include in such reports, with respect to each naval

petroleum reserve, an explanation in detail of the following:

(1) The status of the exploration, development, and production

programs.

(2) The production that has been achieved, including the

disposition of such production and the proceeds realized

therefrom.

(3) The status of pipeline construction and procurement and

problems related to the availability of transportation

facilities.

(4) A summary of future plans for exploration, development,

production, disposal, and transportation of the production from

the naval petroleum reserves.

(5) Such other information regarding the reserve as the

Secretary deems appropriate.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 460; Pub. L. 87-796, Sec. 1(7),

Oct. 11, 1962, 76 Stat. 905; Pub. L. 94-258, title II, Sec.

201(12), Apr. 5, 1976, 90 Stat. 311; Pub. L. 98-525, title XIV,

Sec. 1405(52), Oct. 19, 1984, 98 Stat. 2625; Pub. L. 99-145, title

XIII, Sec. 1303(a)(25), Nov. 8, 1985, 99 Stat. 740; Pub. L.

104-106, div. A, title XV, Sec. 1502(a)(2), Feb. 10, 1996, 110

Stat. 502; Pub. L. 106-65, div. A, title X, Sec. 1067(1), Oct. 5,

1999, 113 Stat. 774.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

7431 34 U.S.C. 524 (1st June 4, 1920, ch.

proviso of 4th 228 (4th par., 1st

par.). proviso, of amended

3d and 4th

provisos), 41 Stat.

813; June 30, 1938,

ch. 851, Sec. 1, 52

Stat. 1252; June

17, 1944, ch. 262,

58 Stat. 282.

-------------------------------

AMENDMENTS

1999 - Subsecs. (a), (b)(1), (c). Pub. L. 106-65 substituted

''and the Committee on Armed Services'' for ''and the Committee on

National Security''.

1996 - Subsecs. (a), (b)(1), (c). Pub. L. 104-106 substituted

''Committee on Armed Services of the Senate and the Committee on

National Security of the House of Representatives'' for

''Committees on Armed Services of the Senate and the House of

Representatives''.

1985 - Subsec. (c). Pub. L. 99-145 in pars. (1) to (3)

substituted ''The'' for ''the'' at beginning and periods for the

semicolons at end, in par. (4) substituted ''A summary'' for ''a

summary'' and a period for ''; and'', and in par. (5) substituted

''Such'' for ''such''.

1984 - Subsecs. (b)(1), (c). Pub. L. 98-525 inserted ''of this

title'' after ''section 7422(c)''.

1976 - Pub. L. 94-258 designated existing provisions as subsec.

(a), struck out ''or oil shale'' in pars. (1) and (2) before

''reserves'', struck out ''and oil shale'' in pars. (2) and (3),

before ''reserves'' substituted ''petroleum (other than royalty oil

and gas)'' for ''oil and gas (other than royalty oil and gas), oil

shale, and products therefrom'' in par. (3), and added subsecs. (b)

and (c).

1962 - Pub. L. 87-796 included oil shale reserves in cls. (1) and

(2), inserted provisions in cl. (2) excepting consultation and

Presidential approval in connection with issuance of permits,

licenses, easements, grazing and agricultural leases,

rights-of-way, and similar contracts pertaining to use of surface

area of naval petroleum and oil shale reserves, and included oil

shale, and products therefrom produced from any part of oil shale

reserves.

CONTRACT FOR STUDIES OF POTENTIAL TRANSFER OUT OF FEDERAL CONTROL

OF FACILITIES AND FUNCTIONS AT ELK HILLS AND TEAPOT DOME;

RESTRICTIONS

Pub. L. 101-45, title I, Sec. 501, June 30, 1989, 103 Stat. 103,

provided that no funds appropriated or made available under Pub. L.

101-45 or any other Act were to be used by the executive branch to

contract with organizations outside Department of Energy to perform

studies of potential transfer out of Federal ownership, management

or control by sale, lease, or other disposition, in whole or in

part, of facilities and functions of Naval Petroleum Reserve

Numbered 1 (Elk Hills) and Naval Petroleum Reserve Numbered 3

(Teapot Dome), and prohibited negotiation of changes to unit plan

contract with Chevron which governed operation of Elk Hills, where

purpose of changes was to prepare for divestiture of the Reserve,

prior to repeal by Pub. L. 104-134, title I, Sec. 101(c) (title

II), Apr. 26, 1996, 110 Stat. 1321-156, 1321-187; renumbered title

I, Pub. L. 104-140, Sec. 1(a), May 2, 1996, 110 Stat. 1327.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7430 of this title; title

43 section 1601.

-CITE-

10 USC Sec. 7432 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

-HEAD-

Sec. 7432. Authorizations of appropriations

-STATUTE-

(a) Funds for the following purposes may not be appropriated

unless such appropriations have been specifically authorized by

law:

(1) Exploration, prospecting, conservation, development, use,

operations, and production of the naval petroleum reserves as

authorized by this chapter.

(2) Production (including preparation for production) as

authorized by this chapter or as may be authorized after April 5,

1976.

(3) The construction and operation of facilities both within

and outside the naval petroleum reserves incident to the

production and the delivery of petroleum, including pipelines and

shipping terminals.

Sums appropriated for such purposes shall remain available until

expended.

(b) Contracts under this chapter providing for the obligation of

funds may be entered into for a period of five years, renewable for

an additional five-year period; however, such contracts may

obligate funds only to the extent that such funds are made

available in appropriation Acts.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 461; Pub. L. 87-796, Sec. 1(8),

Oct. 11, 1962, 76 Stat. 905; Pub. L. 94-258, title II, Sec.

201(13), Apr. 5, 1976, 90 Stat. 312; Pub. L. 96-137, Sec. 3(b)(1),

Dec. 12, 1979, 93 Stat. 1061; Pub. L. 96-513, title V, Sec.

513(35), Dec. 12, 1980, 94 Stat. 2934.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

7432 34 U.S.C. 524 (3d June 4, 1920, ch.

par., less 2d 228 (3d par., less

sentence; 5th par., 2d sentence; 5th

124th through 168th par., 124th through

words). 168th words, of

amended 3d and 4th

provisos), 41 Stat.

813; June 30, 1938,

ch. 851, Sec. 1, 52

Stat. 1252; June

17, 1944, ch. 262,

58 Stat. 281.

-------------------------------

In subsection (a) the words ''by the Congress'' are omitted as

surplusage.

In subsection (b) the words ''There is authorized to be

appropriated'' are omitted as surplusage.

AMENDMENTS

1980 - Subsec. (a)(1). Pub. L. 96-513 substituted a period for

the semicolon at the end.

1979 - Pub. L. 96-137 struck out provisions relating to the naval

petroleum reserves special account.

1976 - Pub. L. 94-258 substituted ''Naval petroleum reserves

special account'' for ''Expenditures: appropriations chargeable''

in section catchline.

Subsec. (a). Pub. L. 94-258 substituted provisions establishing a

special account on the books of the Treasury Department to be

designated as the ''naval petroleum reserves special account'', and

authorizing to be credited proceeds resulting from the sale or

exchange of the United States share of petroleum, refined petroleum

products, appropriation funds, royalties, or other revenue from the

operation of the reserves, for provisions authorizing the

expenditure of funds from available appropriations for expenses

incurred in the administration of the reserves.

Subsec. (b). Pub. L. 94-258 substituted provisions which made

funds in the naval petroleum reserve special account available in

sums specified in annual appropriations acts for enumerated expense

items, for provisions which authorized expenditures to be made

under the direction of the President and requiring the President to

submit an estimate of expenditures necessary to carry out the

purposes of this chapter.

Subsecs. (c), (d). Pub. L. 94-258 added subsecs. (c) and (d).

1962 - Subsec. (a). Pub. L. 87-796 substituted ''with respect to

the naval petroleum and oil shale reserves shall be paid from

appropriations made available for the purposes specified in this

chapter'' for ''in exploring, prospecting, conserving, developing,

using and operating lands owned or controlled by the United States

in the naval petroleum reserves, and in producing petroleum, and

the share of the United States of expenses incurred under any

contract entered into under this chapter, shall be paid from

appropriations made available for those purposes''.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section

701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of

this title.

ABOLITION OF NAVAL PETROLEUM RESERVES SPECIAL ACCOUNT

Section 3(c) of Pub. L. 96-137 provided that: ''The naval

petroleum reserves special account established by section 7432 of

title 10, United States Code, as in existence on the day before the

date of the enactment of this Act (Dec. 12, 1979), is abolished.

Unappropriated balances of funds in the naval petroleum reserves

special account on the date of the enactment of this Act shall be

transferred on the books of the Treasury into miscellaneous

receipts, and all moneys accruing to the United States after such

date under chapter 641 of title 10, United States Code, shall be

covered into the Treasury as miscellaneous receipts.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 43 section 1601.

-CITE-

10 USC Sec. 7433 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

-HEAD-

Sec. 7433. Disposition of royalties

-STATUTE-

(a) Any oil, gas, gasoline or other substance accruing to the

United States as royalty from any lease under this chapter shall be

delivered to the United States, or shall be paid for in money, as

the Secretary elects.

(b) All money accruing to the United States from lands in the

naval petroleum reserves shall be covered into the Treasury.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 461; Pub. L. 87-796, Sec. 1(9),

Oct. 11, 1962, 76 Stat. 905; Pub. L. 94-258, title II, Sec.

201(14), (15), Apr. 5, 1976, 90 Stat. 313.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

7433 34 U.S.C. 524 (10th June 4, 1920, ch.

par.). 228 (10th par. of

amended 3d and 4th

provisos), 41 Stat.

813; June 30, 1938,

ch. 851, Sec. 1, 52

Stat. 1254; June

17, 1944, ch. 262,

58 Stat. 281.

-------------------------------

In subsection (a) the words ''or all'' are omitted as

surplusage. The words ''under this chapter'' are substituted for

the words ''of lands within the naval petroleum reserves or other

naval fuel reserves under the authority of this section'' for

brevity. The words ''be delivered to the United States, or shall

be paid for in money'' are substituted for the words ''be paid for

in money or be paid in kind'' for clarity. Neither gas, oil,

gasoline, nor hydrocarbon can be ''paid'', but any one of them may

be delivered.

In subsection (b) the words ''except as otherwise provided in

this section'' are omitted as surplusage. There is no exception

within the chapter to the rule stated in subsection (b). The word

''paid'' is substituted for the words ''which may accrue'' for

clarity. The words ''under this chapter'' are substituted for the

words ''under the provisions of this section or of sections * * *

on account of the petroleum products extracted therefrom'' for

brevity. The two terms are coextensive. The sections of 30 U.S.C.

that are cited in 34 U.S.C. 524 (10th par.) comprise the entire Act

of Feb. 25, 1920, ch. 85, 41 Stat. 437, as amended. The

application of that Act to the Navy is covered in Sec. 7427 of this

title. The words ''as miscellaneous receipts'' are omitted as

surplusage.

AMENDMENTS

1976 - Subsec. (a). Pub. L. 94-258, Sec. 201(14), struck out ''of

the Navy'' after ''Secretary''.

Subsec. (b). Pub. L. 94-258, Sec. 201(15), struck out ''and oil

shale'' after ''petroleum''.

1962 - Subsec. (a). Pub. L. 87-796 substituted ''or other

substance'' for ''or other hydrocarbon substance''.

Subsec. (b). Pub. L. 87-796 substituted ''All money accruing to

the United States from lands in the naval petroleum and oil shale

reserves'' for ''Money paid to the United States for petroleum

products under this chapter''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 16 section 470h; title 30

section 191; title 43 section 1601.

-CITE-

10 USC Sec. 7434 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

-HEAD-

(Sec. 7434. Repealed. Pub. L. 104-66, title I, Sec. 1051(g), Dec.

21, 1995, 109 Stat. 716)

-MISC1-

Section, acts Aug. 10, 1956, ch. 1041, 70A Stat. 461; Sept. 2,

1958, Pub. L. 85-861, Sec. 33(a)(35), 72 Stat. 1566; Oct. 11, 1962,

Pub. L. 87-796, Sec. 1(10), 76 Stat. 906; Apr. 5, 1976, Pub. L.

94-258, title II, Sec. 201(16), 90 Stat. 313; Dec. 12, 1980, Pub.

L. 96-513, title V, Sec. 513(36), 94 Stat. 2934; Nov. 5, 1990, Pub.

L. 101-510, div. A, title XIII, Sec. 1311(7), 104 Stat. 1670,

directed Secretary to submit annual report to Congress on

production from naval petroleum reserves during the preceding

year. Pub. L. 104-106, div. A, title XV, Sec. 1502(a)(28)(A),

Feb. 10, 1996, 110 Stat. 506, which directed the general amendment

of this section, could not be executed because of prior repeal by

Pub. L. 104-66.

-CITE-

10 USC Sec. 7435 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

-HEAD-

Sec. 7435. Foreign interest

-STATUTE-

(a) If the laws, customs, or regulations of any foreign country

deny the privilege of leasing public lands to citizens or

corporations of the United States, citizens of that foreign

country, or corporations controlled by citizens of that country,

may not, by contract made after July 1, 1937, or by stock

ownership, holding, or control, acquire or own any interest in, or

right to any benefit from, any lease of land in the naval

petroleum, naval oil shale, or other naval fuel reserves made under

sections 181-184, 185-188, 189-194, 201, 202-209, 211-214, 223,

224-226, 226d, 226e, 227-229a, 241, 251, and 261-263 of title 30,

or under this chapter.

(b) The Secretary may cancel any lease for any violation of this

section.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 461; Pub. L. 87-796, Sec.

1(11), Oct. 11, 1962, 76 Stat. 906; Pub. L. 94-258, title II, Sec.

201(17), Apr. 5, 1976, 90 Stat. 313.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

7435 34 U.S.C. 524 (8th June 4, 1920, ch.

par.). 228 (8th par. of

amended 3d and 4th

provisos), 41 Stat.

813; June 30, 1938,

ch. 851, Sec. 1, 52

Stat. 1254; June

17, 1944, ch. 262,

58 Stat. 281.

-------------------------------

In subsection (a) the words ''foreign country'' are substituted

for the words ''another country'' for clarity.

In subsection (b) the word ''for'' is substituted for the words

''in the event of'' for brevity.

-REFTEXT-

REFERENCES IN TEXT

Section 194 of title 30, referred to in subsec. (a), was repealed

by Pub. L. 89-554, Sec. 8(a), Sept. 6, 1966, 80 Stat. 644.

Section 204 of title 30, referred to in subsec. (a), was repealed

by Pub. L. 94-377, Sec. 13(a), Aug. 4, 1976, 90 Stat. 1090, subject

to valid existing rights.

Sections 226d and 226e of title 30, referred to in subsec. (a),

were omitted from the Code. See section 226 of Title 30, Mineral

Lands and Mining.

Section 227 of title 30, referred to in subsec. (a), was omitted

from the Code.

-MISC2-

AMENDMENTS

1976 - Subsec. (b). Pub. L. 94-258 struck out ''of the Navy''

after ''Secretary''.

1962 - Subsec. (a). Pub. L. 87-796 substituted ''land in the

naval petroleum, naval oil shale, or other naval fuel reserves''

for ''land in the naval petroleum or other naval fuel reserves''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 43 section 1601.

-CITE-

10 USC Sec. 7436 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

-HEAD-

Sec. 7436. Regulations

-STATUTE-

(a) The Secretary may prescribe regulations and take any proper

action to accomplish the purposes of this chapter.

(b) All statements, reports, and representations required by the

regulations shall be under oath, unless otherwise specified, and in

such form as the Secretary requires.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 461; Pub. L. 94-258, title II,

Sec. 201(18), Apr. 5, 1976, 90 Stat. 313.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

7436 34 U.S.C. 524 (9th June 4, 1920, ch.

par.). 228 (9th par. of

amended 3d and 4th

provisos), 41 Stat.

813; June 30, 1938,

ch. 851, Sec. 1, 52

Stat. 1254; June

17, 1944, ch. 262,

58 Stat. 281.

-------------------------------

In subsection (a) the words ''necessary rules and'' are omitted

as surplusage, and the words ''to take any proper action'' are

substituted for the words ''to do any and all things necessary or

proper'' for brevity.

AMENDMENTS

1976 - Subsec. (a). Pub. L. 94-258 struck out ''of the Navy,

subject to approval by the President,'' after ''Secretary''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7437 of this title; title

43 section 1601.

-CITE-

10 USC Sec. 7437 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

-HEAD-

Sec. 7437. Violations by lessee

-STATUTE-

(a) If a lessee fails to comply with any provision of this

chapter, of his lease, or of regulations issued under section 7436

of this title that are in force on the date of his lease, the lease

may be forfeited and cancelled by an appropriate proceeding in the

United States district court for the district in which any part of

the property is located.

(b) The lease may provide appropriate methods for the settlement

of disputes and remedies for breach of specified conditions.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 461.)

-MISC1-

Historical and Revision Notes

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Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

7437 34 U.S.C. 524 (11th June 4, 1920, ch.

par., less 228 (11th par.,

proviso). less proviso, of

amended 3d and 4th

provisos), 41 Stat.

813; June 30, 1938,

ch. 851, Sec. 1, 52

Stat. 1254; June

17, 1944, ch. 262,

58 Stat. 281.

-------------------------------

In subsection (a) the words ''the district in which any part of

the property is located'' are substituted for the words ''the

district in which the property, or some part thereof, is located,''

for brevity.

In subsection (b) the words ''for resort to'' and ''for'' are

omitted as surplusage.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 43 section 1601.

-CITE-

10 USC Sec. 7438 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

-HEAD-

Sec. 7438. Rifle, Colorado, plant; possession, use, and transfer of

-STATUTE-

(a) The Secretary shall take possession of the experimental

demonstration facility near Rifle, Colorado, which was constructed

and operated by the Department of the Interior on lands on or near

the naval oil shale reserves under the Act of April 5, 1944 (30

U.S.C. 321 et seq.).

(b) The Secretary, subject to the approval of the President,

shall by contract, lease, or otherwise encourage the use of the

facility described in subsection (a) in research, development,

test, evaluation, and demonstration work. For such purposes the

Secretary may use or lease for use by institutions, organizations,

or individuals, public or private, the facility described in

subsection (a) and may construct, install, and operate, or lease

for operation additional experimental facilities on such lands.

The Secretary may, after consultation with the Committee on Armed

Services of the Senate and the Committee on Armed Services of the

House of Representatives, mine and remove, or authorize the mining

and removal, of any oil shale or products therefrom from lands in

the naval oil shale reserves that may be needed for such

experimentation.

(c) Nothing in this chapter shall be construed -

(1) to authorize the commercial development and operation of

the naval oil shale reserves by the Government in competition

with private industry; or

(2) in diminution of the responsibility of the Secretary in

providing oil shale and products therefrom for needs of national

defense.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 462; Pub. L. 87-796, Sec.

1(12), Oct. 11, 1962, 76 Stat. 906; Pub. L. 94-258, title II, Sec.

201(19), Apr. 5, 1976, 90 Stat. 313; Pub. L. 96-513, title V, Sec.

513(37), Dec. 12, 1980, 94 Stat. 2934; Pub. L. 104-106, div. A,

title XV, Sec. 1502(a)(2), Feb. 10, 1996, 110 Stat. 502; Pub. L.

106-65, div. A, title X, Sec. 1067(1), Oct. 5, 1999, 113 Stat.

774.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

7438 34 U.S.C. 524 June 4, 1920, ch.

(proviso of 11th 228 (11th par.,

par.). proviso, of amended

3d and 4th

provisos), 41 Stat.

813; June 30, 1938,

ch. 851, Sec. 1, 52

Stat. 1254; June

17, 1944, ch. 262,

58 Stat. 281.

-------------------------------

The words ''this chapter does not authorize'' are substituted for

the words ''nothing herein contained shall be construed to permit''

for brevity.

-REFTEXT-

REFERENCES IN TEXT

Act April 5, 1944, referred to in subsec. (a), is act Apr. 5,

1944, ch. 172, 58 Stat. 190, as amended, which is classified

generally to chapter 6 (Sec. 321 et seq.) of Title 30, Mineral

Lands and Mining. For complete classification of this Act to the

Code see Tables.

-MISC2-

AMENDMENTS

1999 - Subsec. (b). Pub. L. 106-65 substituted ''and the

Committee on Armed Services'' for ''and the Committee on National

Security''.

1996 - Subsec. (b). Pub. L. 104-106 substituted ''Committee on

Armed Services of the Senate and the Committee on National Security

of the House of Representatives'' for ''Committees on Armed

Services of the Senate and the House of Representatives''.

1980 - Subsec. (a). Pub. L. 96-513, Sec. 513(37)(A), substituted

provisions relating to authority of the Secretary under the

specified statute, for provisions relating to authority of the

Administrator of the Energy Research and Development Administration

under the specified statute.

Subsec. (b). Pub. L. 96-513, Sec. 513(37)(B), substituted

provisions relating to authorities of the Secretary, for provisions

relating to authorities of the Administrator of the Energy Research

and Development Administration.

Subsec. (c). Pub. L. 96-513, Sec. 513(37)(C), substituted ''in

this chapter'' for ''herein contained''.

1976 - Subsec. (a). Pub. L. 94-258 substituted ''Administrator of

the Energy Research and Development Administration'' for

''Secretary of the Interior''.

Subsec. (b). Pub. L. 94-258 substituted ''Administrator of the

Energy Research and Development Administration'' for ''Secretary of

the Interior'' wherever appearing therein and struck out ''of the

Navy'' after ''Secretary'' wherever appearing.

Subsec. (c). Pub. L. 94-258 struck out ''of the Navy'' after

''Secretary''.

1962 - Pub. L. 87-796 amended section generally by substituting

provisions relating to the possession, use, and transfer of the

experimental demonstration facility near Rifle, Colorado, for

provisions which stated that this chapter does not authorize the

development or operation of the naval oil-shale reserves.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section

701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7421, 7422 of this title;

title 43 section 1601.

-CITE-

10 USC Sec. 7439 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle C - Navy and Marine Corps

PART IV - GENERAL ADMINISTRATION

CHAPTER 641 - NAVAL PETROLEUM RESERVES

-HEAD-

Sec. 7439. Certain oil shale reserves: transfer of jurisdiction and

petroleum exploration, development, and production

-STATUTE-

(a) Transfer Required. - (1) Upon the enactment of this section,

the Secretary of Energy shall transfer to the Secretary of the

Interior administrative jurisdiction over all public domain lands

included within Oil Shale Reserve Numbered 1 and those public

domain lands included within the undeveloped tracts of Oil Shale

Reserve Numbered 3.

(2) Not later than November 18, 1998, the Secretary of Energy

shall transfer to the Secretary of the Interior administrative

jurisdiction over those public domain lands included within the

developed tract of Oil Shale Reserve Numbered 3, which consists of

approximately 6,000 acres and 24 natural gas wells, together with

pipelines and associated facilities.

(3) Notwithstanding the transfer of jurisdiction, the Secretary

of Energy shall continue to be responsible for all environmental

restoration, waste management, and environmental compliance

activities that are required under Federal and State laws with

respect to conditions existing on the lands at the time of the

transfer.

(4) Upon the transfer to the Secretary of the Interior of

jurisdiction over public domain lands under this subsection, the

other provisions of this chapter shall cease to apply with respect

to the transferred lands.

(b) Authority To Lease. - (1) Beginning on November 18, 1997, or

as soon thereafter as practicable, the Secretary of the Interior

shall enter into leases with one or more private entities for the

purpose of exploration for, and development and production of,

petroleum (other than in the form of oil shale) located on or in

public domain lands in Oil Shale Reserves Numbered 1 and 3

(including the developed tract of Oil Shale Reserve Numbered 3).

Any such lease shall be made in accordance with the requirements of

the Mineral Leasing Act (30 U.S.C. 181 et seq.) regarding the lease

of oil and gas lands and shall be subject to valid existing rights.

(2) Notwithstanding the delayed transfer of the developed tract

of Oil Shale Reserve Numbered 3 under subsection (a)(2), the

Secretary of the Interior shall enter into a lease under paragraph

(1) with respect to the developed tract before November 18, 1998.

(c) Management. - The Secretary of the Interior, acting through

the Director of the Bureau of Land Management, shall manage the

lands transferred under subsection (a) in accordance with the

Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et

seq.) and other laws applicable to the public lands.

(d) Transfer of Existing Equipment. - The lease of lands by the

Secretary of the Interior under this section may include the

transfer, at fair market value, of any well, gathering line, or

related equipment owned by the United States on the lands

transferred under subsection (a) and suitable for use in the

exploration, development, or production of petroleum on the lands.

(e) Cost Minimization. - The cost of any environmental assessment

required pursuant to the National Environmental Policy Act of 1969

(42 U.S.C. 4321 et seq.) in connection with a proposed lease under

this section shall be paid out of unobligated amounts available for

administrative expenses of the Bureau of Land Management.

(f) Treatment of Receipts. - (1) Notwithstanding section 35 of

the Mineral Leasing Act (30 U.S.C. 191), all moneys received during

the period specified in paragraph (2) from a lease under this

section (including moneys in the form of sales, bonuses, royalties

(including interest charges collected under the Federal Oil and Gas

Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.)), and

rentals) shall be covered into the Treasury of the United States

and shall not be subject to distribution to the States pursuant to

subsection (a) of such section 35.

(2) The period referred to in this subsection is the period

beginning on November 18, 1997, and ending on the date on which the

Secretary of Energy and the Secretary of the Interior jointly

certify to Congress that the sum of the moneys deposited in the

Treasury under paragraph (1) is equal to the total of the

following:

(A) The cost of all environmental restoration, waste

management, and environmental compliance activities incurred by

the United States with respect to the lands transferred under

subsection (a).

(B) The cost to the United States to originally install wells,

gathering lines, and related equipment on the transferred lands

and any other cost incurred by the United States with respect to

the lands.

(g) Use of Receipts. - (1) The Secretary of the Interior may use,

without further appropriation, not more than $1,500,000 of the

moneys covered into the Treasury under subsection (f)(1) to cover

the cost of any additional analysis, site characterization, and

geotechnical studies deemed necessary by the Secretary to support

environmental restoration, waste management, or environmental

compliance with respect to Oil Shale Reserve Numbered 3. Upon the

completion of such studies, the Secretary of the Interior shall

submit to Congress a report containing -

(A) the results and conclusions of such studies; and

(B) an estimate of the total cost of the Secretary's preferred

alternative to address environmental restoration, waste

management, and environmental compliance needs at Oil Shale

Reserve Numbered 3.

(2) If the cost estimate required by paragraph (1)(B) does not

exceed the total of the moneys covered into the Treasury under

subsection (f)(1) and remaining available for obligation as of the

date of submission of the report under paragraph (1), the Secretary

of the Interior may access such moneys, beginning 60 days after

submission of the report and without further appropriation, to

cover the costs of implementing the preferred alternative to

address environmental restoration, waste management, and

environmental compliance needs at Oil Shale Reserve Numbered 3. If

the cost estimate exceeds such available moneys, the Secretary of

the Interior may only access such moneys as authorized by

subsequent Act of Congress.

-SOURCE-

(Added Pub. L. 105-85, div. C, title XXXIV, Sec. 3404(a), Nov. 18,

1997, 111 Stat. 2059; amended Pub. L. 107-107, div. A, title X,

Sec. 1048(c)(14), Dec. 28, 2001, 115 Stat. 1226; Pub. L. 107-345,

Sec. 1, Dec. 17, 2002, 116 Stat. 2894.)

-REFTEXT-

REFERENCES IN TEXT

The Mineral Leasing Act, referred to in subsec. (b)(1), is act

Feb. 25, 1920, ch. 85, 41 Stat. 437, as amended, which is

classified generally to chapter 3A (Sec. 181 et seq.) of Title 30,

Mineral Lands and Mining. For complete classification of this Act

to the Code, see Short Title note set out under section 181 of

Title 30 and Tables.

The Federal Land Policy and Management Act of 1976, referred to

in subsec. (c), is Pub. L. 94-579, Oct. 21, 1976, 90 Stat. 2743, as

amended, which is classified principally to chapter 35 (Sec. 1701

et seq.) of Title 43, Public Lands. For complete classification of

this Act to the Code, see Short Title note set out under section

1701 of Title 43 and Tables.

The National Environmental Policy Act of 1969, referred to in

subsec. (e), is Pub. L. 91-190, Jan. 1, 1970, 83 Stat. 852, as

amended, which is classified generally to chapter 55 (Sec. 4321 et

seq.) of Title 42, The Public Health and Welfare. For complete

classification of this Act to the Code, see Short Title note set

out under section 4321 of Title 42 and Tables.

The Federal Oil and Gas Royalty Management Act of 1982, referred

to in subsec. (f)(1), is Pub. L. 97-451, Jan. 12, 1983, 96 Stat.

2447, which is classified generally to chapter 29 (Sec. 1701 et

seq.) of Title 30, Mineral Lands and Mining. For complete

classification of this Act to the Code, see Short Title note set

out under section 1701 of Title 30 and Tables.

-MISC2-

AMENDMENTS

2002 - Subsec. (f)(1). Pub. L. 107-345, Sec. 1(1), struck out

after first sentence: ''Subject to a specific authorization and

appropriation for this purpose, such moneys may be used for

reimbursement of environmental restoration, waste management, and

environmental compliance costs incurred by the United States with

respect to the lands transferred under subsection (a).''

Subsec. (g). Pub. L. 107-345, Sec. 1(2), added subsec. (g).

2001 - Subsec. (a)(2). Pub. L. 107-107, Sec. 1048(c)(14)(A),

substituted ''November 18, 1998'' for ''one year after the date of

the enactment of this section''.

Subsec. (b)(1). Pub. L. 107-107, Sec. 1048(c)(14)(B), substituted

''November 18, 1997,'' for ''the date of the enactment of this

section,''.

Subsec. (b)(2). Pub. L. 107-107, Sec. 1048(c)(14)(C), substituted

''November 18, 1998'' for ''the end of the one-year period

beginning on the date of the enactment of this section''.

Subsec. (f)(2). Pub. L. 107-107, Sec. 1048(c)(14)(D), substituted

''November 18, 1997,'' for ''the date of the enactment of this

section''.

-CITE-