30 U.S.C. § 304 — Provisions authorized in lease

submitted 96 years ago by ch. 307 to r/title-30-MINERAL-LANDS-AND-MINING · 78 words · no verdicts yet

in plain englishAI-generated · not legal advice

Oil and gas leases the Interior Secretary grants may include a clause, if the Secretary chooses, letting the lease holder shut down an unprofitable well with the Secretary's approval. The lease holder can later restart that well once it would be profitable again. The lease holder can also abandon any well that stops producing oil or gas in paying amounts.

This section has no lettered subsections. It lets — but does not require — the Secretary of the Interior to add a specific flexibility clause to leases granted under this chapter. If the Secretary chooses to include it, that clause gives the lease holder the right, with the Secretary's approval: to shut down a well or wells whose operation has become unprofitable; to resume operating them later, once resuming might result in profit; and to abandon any well or wells that stop producing oil or gas in paying quantities.

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

Any lease granted by the Secretary of the Interior pursuant to this chapter may, in the discretion of said Secretary, contain a provision giving the lessee the right, with the approval of said Secretary, to shut down the operation of any well or wells the operation of which has become unprofitable, to resume operations when such resumption may result in profit, and to abandon any well or wells that cease to produce oil and/or gas in paying quantities.

Source credit: (May 21, 1930, ch. 307, § 4, 46 Stat. 374.)

history & why it existsrecord from the source credit

1930Enacted · Act of May 21, 1930, ch. 307 · 46 Stat. 374

A history note hasn’t been published yet. The record shows enactment by ch. 307 on 1930-05-21.

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