30 U.S.C. § 228 — Prospecting permits and leases to persons of lands not withdrawn; terms and conditions of; fraud of claimants

submitted 106 years ago by ch. 85 to r/title-30-MINERAL-LANDS-AND-MINING · 348 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law lets certain early oil and gas claimants from 1919 and 1920 get prospecting permits or leases on land, even though the land rules had changed, as long as they met spending and application deadlines. Anyone who committed fraud loses these benefits, and Navy-reserved land is excluded.

This section protects people who staked oil and gas claims before certain federal land rules changed. Who qualifies. Someone who, on October 1, 1919, was already occupying or claiming oil or gas land in good faith — having started that claim while the land was still open to oil and gas location — and who had already done everything the old law required except make an actual discovery, and who still hadn't made that discovery by February 25, 1920, and who had spent at least $250 total on each such claim, can qualify for a prospecting permit. To qualify, that person had to apply within six months after February 25, 1920. The permit comes with the same terms, conditions, and acreage limits as any other prospecting permit under this chapter. If discovery was already made. If that same kind of person had already made a discovery before February 25, 1920, they're entitled to a lease instead of a permit, on terms the Secretary of the Interior sets, unless section 227 of this title says otherwise. Higher royalty in known fields. If a prospecting permit covers land inside a known geological structure of a producing oil or gas field, any lease later issued on it must charge a royalty of at least 12.5% of all oil or gas produced — except oil or gas used to run the operation itself, or unavoidably lost. Exception for Navy land. None of this applies to land that is reserved for the Navy's use. Fraud bars benefits. Anyone who committed fraud, knew or had reason to know of fraud, or didn't act honestly and in good faith cannot get any benefit under this section. Transfer of rights. Any permit or lease granted under this section benefits not just the original claimant, but also anyone who claims through that person by lease, contract, or another arrangement, according to their share of interest.

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

Any person who on October 1, 1919, was a bona fide occupant or claimant of oil or gas lands under a claim initiated while such lands were not withdrawn from oil or gas location and entry, and who had previously performed all acts under then existing laws necessary to valid locations thereof except to make discovery, and upon which discovery had not been made prior to February 25, 1920, and who has performed work or expended on or for the benefit of such locations an amount equal in the aggregate of $250 for each location if application therefor shall be made within six months from February 25, 1920, shall be entitled to prospecting permits thereon upon the same terms and conditions, and limitations as to acreage, as other permits provided for in this chapter, or where any such person has made such discovery, prior to said February 25, 1920, he shall be entitled to a lease thereon under such terms as the Secretary of the Interior may prescribe unless otherwise provided for in section 227 1 of this title: Provided, That where such prospecting permit is granted upon land within any known geologic structure of a producing oil or gas field, the royalty to be fixed in any lease thereafter granted thereon or any portion thereof shall be not less than 12½ per-centum of all the oil or gas produced except oil or gas used for production purposes on the claim, or unavoidably lost: Provided, however, That the provisions of this section shall not apply to lands reserved for the use of the Navy. No claimant for a permit or lease who has been guilty of any fraud or who had knowledge or reasonable grounds to know of any fraud, or who has not acted honestly and in good faith shall be entitled to any of the benefits of this section.

All permits or leases hereunder shall inure to the benefit of the claimant and all persons claiming through or under him by lease, contract, or otherwise, as their interests may appear.

Source credit: (Feb. 25, 1920, ch. 85, § 19, 41 Stat. 445.)

history & why it existsrecord from the source credit

1920Enacted · Act of Feb. 25, 1920, ch. 85 · 41 Stat. 445

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

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