Chapter 307. Providing for the lease of oil and gas deposits in or under railroad and other rights of way
745 words·~3 min read·
/statutes-at-large/vol-46/chapter-307-1817036·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
CHAP. 307.— An Act Providing for the lease of oil and gas deposits in or under railroad and other rights of way. May 21, 1930.[[H. R. 8154](/us/bill/71/hr/8154).][[Public, No. 241](/us/pl/71/241).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, That wheneverOil and gas deposits.Leases authorized of, under railroad rights of way, etc. the Secretary of the Interior shall deem it to be consistent with the public interest he is authorized to lease deposits of oil and gas in or under lands embraced in railroad or other rights of way acquired under any law of the United States, whether the same be a base fee or mere easement: *Provided*, That, except as hereinafter *Proviso*.Restricted to owner of right of way. authorized, no lease shall be executed hereunder except to the municipality, corporation, firm, association, or individual by whom such right of way was acquired, or to the lawful successor, assignee, or transferee of such municipality, corporation, firm, association, or individual.
Sec. 2. That the right conferred by this Act may, subject toAssignment authorized. the approval of the Secretary of the Interior, be assigned or sublet by the owner thereof to any corporation, firm, association, or individual. 374 Sec. 3. Owners of adjoining lands allowed to submit bid for royalty to be paid for oil or gas extracted through wells thereon, from the rights of way. That prior to the award of any lease under section 1 of tills Act, the Secretary of the Interior shall notify the owner or lessee of adjoining lands and allow him a reasonable time, to be fixed in the notice given, within which to submit an offer or bid of the amount or percentage of compensatory royalty that such owner will agree to pay for the extraction through wells on his or its adjoining land, of the oil or gas under and from such adjoining right of way, and Offer from holder of right of way.at the same time afford the holder of the railroad or other right of way a like opportunity within the same time to submit its bid or offer as to the amount or percentage of royalty it will agree to pay, if a lease for the extraction of the oil and gas deposits under the Grant of award.right of way be awarded to the holder of such right of way.
In case of competing offers by the said parties in interest, the Secretary shall award the right to extract the oil and gas to the bidder, duly Qualified, making the offer in his opinion most advantageous to the United States. In case but one bid or offer is received after notice duly given, he may, in his discretion award the right to extract the oil and gas to such bidder. Sec. 4. Discretionary right to shut down, etc., wells. That any lease granted by the Secretary of the Interior pursuant to this Act 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.
Sec. 5. Determination of royalty. That the royalty to be paid to the United States under any lease to be issued, or agreement made pursuant to this Act, shall be determined by the Secretary of the Interior, in no case to be less than 12½ per centum in amount or value of the production, *Provisos*.Royalty from land adjacent.nor for more than twenty years: *Provided*, That when the oil or gas is produced from land adjacent to the right of way the amount or value of the royalty to be paid to the United States shall be within the discretion of the Secretary of the Interior: *Provided further*, Reduction on small production.That when the daily average production of any oil well does not exceed ten barrels per day said Secretary may, in his discretion, reduce the royalty on subsequent production.
Sec. 6. Regulations, etc., authorized. That the Secretary of the Interior is authorized and directed to adopt rules and regulations governing the exercise of the discretion and authority conferred by this Act, which rules and regulations shall constitute a part of any application or lease hereunder. Approved, May 21, 1930.