ALLcrimesfood&drugstaxestelecomcommercehealthconservationtransportationagricultureveteransbrowse all titles »
0

30 U.S.C. § 209Suspension, waiver, or reduction of rents or royalties to promote development or operation; extension of lease on suspension of operations and production

submitted 106 years ago by ch. 85 to r/title-30-MINERAL-LANDS-AND-MINING · 336 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law lets the Secretary of the Interior waive, suspend, or reduce rent and royalty payments on certain mineral leases, to encourage development or conservation. It also requires a special royalty review for tar sand leases and extends lease terms if the Secretary suspends operations.

This section is one continuous provision. To encourage the greatest possible recovery of coal, oil, gas, oil shale, gilsonite, phosphate, sodium, potassium, and sulfur, and to conserve natural resources, the Secretary of the Interior can waive, suspend, or reduce a lease's rental or minimum royalty payment, or reduce the royalty on all or part of a leasehold, whenever the Secretary judges it necessary to promote development or because the lease can't be successfully operated under its current terms. There's a special rule for tar sand. To help develop and maximize production from tar sand, if the lessee asks, the Secretary must review the royalty rates in each combined hydrocarbon lease in special tar sand areas before commercial operations start. "Tar sand" here means rock (other than coal, oil shale, or gilsonite) that either contains a hydrocarbon material with a gas-free thickness, at the reservoir's original temperature, greater than 10,000 centipoise, or contains a hydrocarbon material and is produced by mining or quarrying rather than pumping. If the Secretary directs or agrees to suspend operations and production on a lease for conservation reasons, the rental or minimum royalty payments due under that lease are suspended for the same period, and the lease's term is extended by adding on that suspension period. These rules apply to all oil and gas leases under this chapter, including ones inside an approved unit or cooperative development plan. But nothing in this section lets the Secretary waive, suspend, or reduce advance royalties.
the actual law source: uscode.house.gov ↗public domain

The Secretary of the Interior, for the purpose of encouraging the greatest ultimate recovery of coal, oil, gas, oil shale 1 gilsonite (including all vein-type solid hydrocarbons),,2 phosphate, sodium, potassium and sulfur, and in the interest of conservation of natural resources, is authorized to waive, suspend, or reduce the rental, or minimum royalty, or reduce the royalty on an entire leasehold, or on any tract or portion thereof segregated for royalty purposes, whenever in his judgment it is necessary to do so in order to promote development, or whenever in his judgment the leases cannot be successfully operated under the terms provided therein.3Provided, however, That in order to promote development and the maximum production of tar sand, at the request of the lessee, the Secretary shall review, prior to commencement of commercial operations, the royalty rates established in each combined hydrocarbon lease issued in special tar sand areas. For purposes of this section, the term “tar sand” means any consolidated or unconsolidated rock (other than coal, oil shale, or gilsonite) that either: (1) contains a hydrocarbonaceous material with a gas-free viscosity, at original reservoir temperature, greater than 10,000 centipoise, or (2) contains a hydrocarbonaceous material and is produced by mining or quarrying. In the event the Secretary of the Interior, in the interest of conservation, shall direct or shall assent to the suspension of operations and production under any lease granted under the terms of this chapter, any payment of acreage rental or of minimum royalty prescribed by such lease likewise shall be suspended during such period of suspension of operations and production; and the term of such lease shall be extended by adding any such suspension period thereto. The provisions of this section shall apply to all oil and gas leases issued under this chapter, including those within an approved or prescribed plan for unit or cooperative development and operation. Nothing in this section shall be construed as granting to the Secretary the authority to waive, suspend, or reduce advance royalties.

Source credit: (Feb. 25, 1920, ch. 85, § 39, as added Feb. 9, 1933, ch. 45, 47 Stat. 798; amended Aug. 8, 1946, ch. 916, § 10, 60 Stat. 957; June 3, 1948, ch. 379, § 7, 62 Stat. 291; Pub. L. 94–377, § 14, Aug. 4, 1976, 90 Stat. 1091; Pub. L. 97–78, § 1(3), (7), Nov. 16, 1981, 95 Stat. 1070, 1071.)

history & why it existsrecord from the source credit
  • 1920Enacted · Act of Feb. 25, 1920, ch. 85 · 47 Stat. 798
  • 1946Amended · Act of Aug. 8, 1946, ch. 916 · 60 Stat. 957
  • 1948Amended · Act of June 3, 1948, ch. 379 · 62 Stat. 291
  • 1976Amended · Pub. L. 94-377 · 90 Stat. 1091
  • 1981Amended · Pub. L. 97-78 · 95 Stat. 1070, 1071

A history note hasn’t been published yet. The record shows enactment by ch. 85 on 1920-02-25.

all 0 arguments · sorted by: best

0/280

no arguments yet — make the first case