30 U.S.C. § 226–1 — Extension of noncompetitive oil or gas lease issued before September 2, 1960

submitted 66 years ago by Pub. L. 86-705 to r/title-30-MINERAL-LANDS-AND-MINING · 434 words · no verdicts yet

in plain englishAI-generated · not legal advice

Older noncompetitive oil and gas leases issued before September 2, 1960 can get one extension after their first five-year term ends. The extension's length depends on whether the land sits inside a known producing field, and the leaseholder must apply within the deadline.

(a) Lands not withdrawn from leasing: When the initial 5-year term of a noncompetitive oil or gas lease issued before September 2, 1960 — one that has been kept up under the applicable statutes and regulations — expires, the record titleholder gets one extension, unless another law now says otherwise, for whatever part of the leased land is not withdrawn from leasing on the lease's expiration date. But a withdrawal doesn't block the extension if actual drilling operations on the land started before the withdrawal took effect and were still being diligently pursued on the lease's expiration date. A withdrawal does not count for this purpose until 90 days after the government mails notice of it, by registered or certified mail, to each affected lessee. (b) Known and unknown geologic structures of producing fields: For land not within the known geologic structure of a producing oil or gas field, this kind of lease is extended for 5 years, then continues as long as oil or gas is produced in paying quantities. For land within the known geologic structure of a producing field, the extension is 2 years, then continues the same way. (c) Application requirement: An extended lease follows the rules and regulations in force when its initial 5-year term expired. No extension is granted unless the record titleholder — or an assignee whose assignment has been filed for approval, or an operator whose operating agreement has been filed for approval — applies within the 90 days before the lease expires. (d) Commencement of actual drilling operations: A lease issued before September 2, 1960 that has been properly maintained, and on which actual drilling operations — directly or under an approved cooperative or unit development plan — started before the primary term ended and were being diligently pursued at that time, is extended 2 years, and then continues as long as oil or gas is produced in paying quantities.

the actual law source: uscode.house.gov ↗public domain

(a) Lands not withdrawn from leasing

Upon the expiration of the initial five-year term of any noncompetitive oil or gas lease which was issued prior to September 2, 1960, and which has been maintained in accordance with applicable statutory requirements and regulations, the record titleholder thereof shall be entitled to a single extension of the lease, unless then otherwise provided by law, for such lands covered by it as are not, on the expiration date of the lease, withdrawn from leasing. A withdrawal, however, shall not affect the right to an extension if actual drilling operations on such lands were commenced prior to the effective date of the withdrawal and were being diligently prosecuted on the expiration date of the lease. No withdrawal shall be effective within the meaning of this section until ninety days after notice thereof has been sent by registered or certified mail to each lessee to be affected by such withdrawal.

(b) Known and unknown geologic structures of producing fields

As to lands not within the known geologic structure of a producing oil or gas field, a noncompetitive oil or gas lease to which this section is applicable shall be extended for a period of five years and so long thereafter as oil or gas is produced in paying quantities. As to lands within the known geologic structure of a producing oil or gas field, a noncompetitive lease to which this section is applicable shall be extended for a period of two years and so long thereafter as oil or gas is produced in paying quantities.

Any noncompetitive oil or gas lease extended under this section shall be subject to the rules and regulations in force at the expiration of the initial five-year term of the lease. No extension shall be granted, however, unless within a period of ninety days prior to the expiration date of the lease an application therefor is filed by the record titleholder or an assignee whose assignment has been filed for approval or an operator whose operating agreement has been filed for approval.

(d) Commencement of actual drilling operations

Any lease issued prior to September 2, 1960, which has been maintained in accordance with applicable statutory requirements and regulations and which pertains to land on which, or for which under an approved cooperative or unit plan of development or operation, actual drilling operations were commenced prior to the end of its primary term and are being diligently prosecuted at that time shall be extended for two years and so long thereafter as oil or gas is produced in paying quantities.

Source credit: (Pub. L. 86–705, § 4, Sept. 2, 1960, 74 Stat. 789.)

history & why it existsrecord from the source credit

1960Enacted · Pub. L. 86-705 · 74 Stat. 789

A history note hasn’t been published yet. The record shows enactment by Pub. L. 86-705 on 1960-09-02.

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