30 U.S.C. § 229a — Water struck while drilling for oil and gas

submitted 106 years ago by ch. 85 to r/title-30-MINERAL-LANDS-AND-MINING · 364 words · no verdicts yet

in plain englishAI-generated · not legal advice

Oil and gas leases on public land come with a condition: if the driller hits usable water instead of oil or gas, the Secretary of the Interior can buy the well casing and develop the well to provide water for farming, homes, or other uses. This applies to older wells too, and neighboring landowners get first right to use the water. The Secretary can use a revolving fund from water sales to keep this program running.

(a) Acquisition; condition in lease. Every oil and gas prospecting permit and lease under this chapter comes with a built-in condition: if the permit or lease holder strikes water instead of oil or gas while drilling, and that water is good enough quality and quantity to be useful and affordable for farming, home use, or other purposes, the Secretary of the Interior can buy the well's casing at a fair price, set under rules the Secretary writes. (b) Prior leases. The Secretary can also buy the casing from water wells that were drilled earlier, or that may be drilled later, on land already covered by a permit or lease issued under this chapter. (c) Disposition. The Secretary can buy these wells and then lease or run them to produce water for use on public land or for sale to other land. This also applies to wells that were plugged, abandoned, or drilled by someone unrelated to the current permit or lease holder before the permit or lease existed. However, owners or occupants of land next to a developed water well get first right to make good use of that water. (d) Revolving fund. The Secretary can use money set aside for plugging wells to start this water program, and afterward can use the money earned from selling or otherwise using the water to keep funding the program going, as a revolving fund. That money is automatically set aside (appropriated) for this purpose. (e) Operations under lease not restricted. Nothing in this section limits normal drilling and operating activity under any other oil or gas lease or permit covered by this chapter.

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

(a) Acquisition; condition in lease

All prospecting permits and leases for oil or gas made or issued under the provisions of this chapter shall be subject to the condition that in case the permittee or lessee strikes water while drilling instead of oil or gas, the Secretary of the Interior may, when such water is of such quality and quantity as to be valuable and usable at a reasonable cost for agricultural, domestic, or other purposes, purchase the casing in the well at the reasonable value thereof to be fixed under rules and regulations to be prescribed by the Secretary.

(b) Prior leases

In cases where water wells producing such water have heretofore been or may hereafter be drilled upon lands embraced in any prospecting permit or lease heretofore issued under this chapter, the Secretary may in like manner purchase the casing in such wells.

The Secretary may make such purchase and may lease or operate such wells for the purpose of producing water and of using the same on the public lands or of disposing of such water for beneficial use on other lands, and where such wells have heretofore been plugged or abandoned or where such wells have been drilled prior to the issuance of any permit or lease by persons not in privity with the permittee or lessee, the Secretary may develop the same for the purposes of this section: Provided, That owners or occupants of lands adjacent to those upon which such water wells may be developed shall have a preference right to make beneficial use of such water.

(d) Revolving fund

The Secretary may use so much of any funds available for the plugging of wells, as he may find necessary to start the program provided for by this section, and thereafter he may use the proceeds from the sale or other disposition of such water as a revolving fund for the continuation of such program, and such proceeds are hereby appropriated for such purpose.

(e) Operations under lease not restricted

Nothing in this section shall be construed to restrict operations under any oil or gas lease or permit under any other provision of this chapter.

Source credit: (Feb. 25, 1920, ch. 85, § 40, as added June 16, 1934, ch. 557, 48 Stat. 977; amended Pub. L. 94–579, title VII, § 704(a), Oct. 21, 1976, 90 Stat. 2792.)

history & why it existsrecord from the source credit

1920Enacted · Act of Feb. 25, 1920, ch. 85 · 48 Stat. 977
1976Amended · Pub. L. 94-579 · 90 Stat. 2792

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

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