30 U.S.C. § 251 — Leases to claimants of withdrawn lands; terms and conditions; acreage; annual rentals and royalties; fraud of claimants

submitted 106 years ago by ch. 85 to r/title-30-MINERAL-LANDS-AND-MINING · 386 words · no verdicts yet

in plain englishAI-generated · not legal advice

Certain Alaska oil and gas claimants who lost their land to a federal withdrawal can get a lease instead. They must give up their claim within set deadlines and meet spending and improvement requirements. Rental and royalty rates match those for similar U.S. lands, with one exception for early-1958 applications.

This section covers a bona fide occupant or claimant of oil- or gas-bearing land in the Territory of Alaska. To qualify, that person (or their predecessor) must have followed the mining laws before the land was withdrawn from private claims, even though they never actually found oil or gas in a well. Before the withdrawal, they must have either made substantial improvements aimed at discovering oil or gas on each location, or spent at least $250 improving each location before February 25, 1920. If they gave up their claim to the United States — within one year of February 25, 1920, or within six months after their patent application was finally denied or withdrawn — they're entitled to a lease (or up to five leases) under this chapter. Each lease can't cover more than 1,280 acres in total. Annual rent and royalties for Alaska land outside any known oil or gas field must match the rates charged for similar leases in the states. There is one exception: leases issued on applications filed and still pending before May 3, 1958 require only 25 cents per acre as the first year's rent. This lower first-year rent exception does not apply to the royalty rates on those leases. The Secretary of the Interior cannot approve any cooperative or joint development plan, or any operating, drilling, or development contract, that sets different royalty or rental rates for Alaska land than for similar land in the states. Finally, no one gets a lease under this section if they committed fraud, knew or should have known about fraud, or did not act honestly and in good faith.

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

Any bona fide occupant or claimant of oil or gas bearing lands in the Territory of Alaska, who, or whose predecessors in interest, prior to withdrawal had complied otherwise with the requirements of the mining laws, but had made no discovery of oil or gas in wells and who prior to withdrawal had made substantial improvements for the discovery of oil or gas on or for each location or had prior to February 25, 1920 expended not less than $250 in improvements on or for each location shall be entitled, upon relinquishment or surrender to the United States within one year from February 25, 1920, or within six months after final denial or withdrawal of application for patent, to a lease or leases, under this chapter covering such lands, not exceeding five leases in number and not exceeding an aggregate of one thousand two hundred and eighty acres in each: Provided, That the annual lease rentals for lands in the Territory of Alaska not within any known geological structure of a producing oil or gas field and the royalty payments from production of oil or gas sold or removed from such lands shall be identical with those prescribed for such leases covering similar lands in the States of the United States, except that leases which may issue pursuant to applications or offers to lease such lands, which applications or offers were filed prior to and were pending on May 3, 1958, shall require the payment of 25 cents per acre as lease rental for the first year of such leases; but the aforesaid exception shall not apply in any way to royalties to be required under leases which may issue pursuant to offers or applications filed prior to May 3, 1958.

The Secretary of the Interior shall neither prescribe nor approve any cooperative or unit plan of development or operation nor any operating, drilling, or development contract establishing different royalty or rental rates for Alaska lands than for similar lands within the States of the United States.

No claimant for a 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.

Source credit: (Feb. 25, 1920, ch. 85, § 22, 41 Stat. 446; Pub. L. 85–505, § 10, July 3, 1958, 72 Stat. 324.)

history & why it existsrecord from the source credit

1920Enacted · Act of Feb. 25, 1920, ch. 85 · 41 Stat. 446
1958Amended · Pub. L. 85-505 · 72 Stat. 324

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

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