Legislación
US (United States) Code. Title 10. Subtitle C. Part IV. Chapter 641: Naval petroleum reserves
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10 USC CHAPTER 641 - NAVAL PETROLEUM RESERVES 01/06/03
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TITLE 10 - ARMED FORCES
Subtitle C - Navy and Marine Corps
PART IV - GENERAL ADMINISTRATION
CHAPTER 641 - NAVAL PETROLEUM RESERVES
.
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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 Repealed.)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 Repealed.)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.
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CHAPTER REFERRED TO IN OTHER SECTIONS
This chapter is referred to in title 30 section 353; title 42
sections 7156, 7235.
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10 USC Sec. 7420 01/06/03
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TITLE 10 - ARMED FORCES
Subtitle C - Navy and Marine Corps
PART IV - GENERAL ADMINISTRATION
CHAPTER 641 - NAVAL PETROLEUM RESERVES
-HEAD-
Sec. 7420. Definitions
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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.
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(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.)
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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-
Historical and Revision Notes
---------------------------------------------------------------------
Revised section Source (U.S. Code) Source (Statutes at
Large)
---------------------------------------------------------------------
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-
Historical and Revision Notes
---------------------------------------------------------------------
Revised section Source (U.S. Code) Source (Statutes at
Large)
---------------------------------------------------------------------
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-
Historical and Revision Notes
---------------------------------------------------------------------
Revised section Source (U.S. Code) Source (Statutes at
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
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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-
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| Idioma: | inglés |
| País: | Estados Unidos |
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