---
kind: "range"
citation: "30 U.S.C. §§ 185–188"
title: "30"
from: "185"
to: "188"
count: 6
release: "119-102"
url: "https://uscodex.org/usc/30/185..188"
---

# §185. Rights-of-way for pipelines through Federal lands

- (a) **Grant of authority—** Rights-of-way through any Federal lands may be granted by the [Secretary](#b-2) of the Interior or appropriate [agency head](#b-3) for pipeline purposes for the transportation of [oil](/usc/30/181.md), natural gas, synthetic liquid or gaseous fuels, or any refined product produced therefrom to any applicant possessing the qualifications provided in [section 181 of this title](/usc/30/181.md) in accordance with the provisions of this section.
- (b) **Definitions—**
  - (1) For the purposes of this section “Federal lands” means all lands owned by the United States except lands in the National Park System, lands held in trust for an Indian or Indian tribe, and lands on the Outer Continental Shelf. A right-of-way through a Federal reservation shall not be granted if the [Secretary](#b-2) or [agency head](#b-3) determines that it would be inconsistent with the purposes of the reservation.
  - (2) “Secretary” means the Secretary of the Interior.
  - (3) “Agency head” means the head of any Federal department or independent Federal office or agency, other than the [Secretary](#b-2) of the Interior, which has jurisdiction over Federal lands.
- (c) **Inter-agency coordination—**
  - (1) Where the surface of all of the Federal lands involved in a proposed right-of-way or permit is under the jurisdiction of one Federal agency, the [agency head](#b-3), rather than the [Secretary](#b-2), is authorized to grant or renew the right-of-way or permit for the purposes set forth in this section.
  - (2) Where the surface of the Federal lands involved is administered by the [Secretary](#b-2) or by two or more Federal agencies, the [Secretary](#b-2) is authorized, after consultation with the agencies involved, to grant or renew rights-of-way or permits through the Federal lands involved. The [Secretary](#b-2) may enter into interagency agreements with all other Federal agencies having jurisdiction over Federal lands for the purpose of avoiding duplication, assigning responsibility, expediting review of rights-of-way or permit applications, issuing joint regulations, and assuring a decision based upon a comprehensive review of all factors involved in any right-of-way or permit application. Each [agency head](#b-3) shall administer and enforce the provisions of this section, appropriate regulations, and the terms and conditions of rights-of-way or permits insofar as they involve Federal lands under the [agency head](#b-3)’s jurisdiction.
- (d) **Width limitations—** The width of a right-of-way shall not exceed fifty feet plus the ground occupied by the pipeline (that is, the pipe and its related facilities) unless the [Secretary](#b-2) or [agency head](#b-3) finds, and records the reasons for his finding, that in his judgment a wider right-of-way is necessary for operation and maintenance after construction, or to protect the environment or public safety. Related facilities include but are not limited to valves, pump stations, supporting structures, bridges, monitoring and communication devices, surge and storage tanks, terminals, roads, airstrips and campsites and they need not necessarily be connected or contiguous to the pipe and may be the subjects of separate rights-of-way.
- (e) **Temporary permits—** A right-of-way may be supplemented by such temporary permits for the use of Federal lands in the vicinity of the pipeline as the [Secretary](#b-2) or [agency head](#b-3) finds are necessary in connection with construction, operation, maintenance, or termination of the pipeline, or to protect the natural environment or public safety.
- (f) **Regulatory authority—** Rights-of-way or permits granted or renewed pursuant to this section shall be subject to regulations promulgated in accord with the provisions of this section and shall be subject to such terms and conditions as the [Secretary](#b-2) or [agency head](#b-3) may prescribe regarding extent, duration, survey, location, construction, operation, maintenance, use, and termination.
- (g) **Pipeline safety—** The [Secretary](#b-2) or [agency head](#b-3) shall impose requirements for the operation of the pipeline and related facilities in a manner that will protect the safety of workers and protect the public from sudden ruptures and slow degradation of the pipeline.
- (h) **Environmental protection—**
  - (1) Nothing in this section shall be construed to amend, repeal, modify, or change in any way the requirements of [section 102(2)(C)](/usc/30/102.md) [[42 U.S.C. 4332(2)(C)](/usc/42/4332.md)] or any other provision of the National Environmental Policy Act of 1969 [[42 U.S.C. 4321](/usc/42/4321.md) et seq.].
  - (2) The [Secretary](#b-2) or [agency head](#b-3), prior to granting a right-of-way or permit pursuant to this section for a new project which may have a significant impact on the environment, shall require the applicant to submit a plan of construction, operation, and rehabilitation for such right-of-way or permit which shall comply with this section. The [Secretary](#b-2) or [agency head](#b-3) shall issue regulations or impose stipulations which shall include, but shall not be limited to: (A) requirements for restoration, revegetation, and curtailment of erosion of the surface of the land; (B) requirements to insure that activities in connection with the right-of-way or permit will not violate applicable air and water quality standards nor related facility siting standards established by or pursuant to law; (C) requirements designed to control or prevent (i) damage to the environment (including damage to fish and wildlife habitat), (ii) damage to public or private property, and (iii) hazards to public health and safety; and (D) requirements to protect the interests of individuals living in the general area of the right-of-way or permit who rely on the fish, wildlife, and biotic resources of the area for subsistence purposes. Such regulations shall be applicable to every right-of-way or permit granted pursuant to this section, and may be made applicable by the [Secretary](#b-2) or [agency head](#b-3) to existing rights-of-way or permits, or rights-of-way or permits to be renewed pursuant to this section.
- (i) **Disclosure—** If the applicant is a partnership, corporation, association, or other business entity, the [Secretary](#b-2) or [agency head](#b-3) shall require the applicant to disclose the identity of the participants in the entity. Such disclosure shall include where applicable (1) the name and address of each partner, (2) the name and address of each shareholder owning 3 per centum or more of the shares, together with the number and percentage of any class of voting shares of the entity which such shareholder is authorized to vote, and (3) the name and address of each affiliate of the entity together with, in the case of an affiliate controlled by the entity, the number of shares and the percentage of any class of voting stock of that affiliate owned, directly or indirectly, by that entity, and, in the case of an affiliate which controls that entity, the number of shares and the percentage of any class of voting stock of that entity owned, directly or indirectly, by the affiliate.
- (j) **Technical and financial capability—** The [Secretary](#b-2) or [agency head](#b-3) shall grant or renew a right-of-way or permit under this section only when he is satisfied that the applicant has the technical and financial capability to construct, operate, maintain, and terminate the project for which the right-of-way or permit is requested in accordance with the requirements of this section.
- (k) **Public hearings—** The [Secretary](#b-2) or [agency head](#b-3) by regulation shall establish procedures, including public hearings where appropriate, to give Federal, State, and local government agencies and the public adequate notice and an opportunity to comment upon right-of-way applications filed after the date of enactment of this subsection.
- (l) **Reimbursement of costs—** The applicant for a right-of-way or permit shall reimburse the United States for administrative and other costs incurred in processing the application, and the holder of a right-of-way or permit shall reimburse the United States for the costs incurred in monitoring the construction, operation, maintenance, and termination of any pipeline and related facilities on such right-of-way or [permit area](/usc/30/1291.md?p=17) and shall pay annually in advance the fair market rental value of the right-of-way or permit, as determined by the [Secretary](#b-2) or [agency head](#b-3).
- (m) **Bonding—** Where he deems it appropriate the [Secretary](#b-2) or [agency head](#b-3) may require a holder of a right-of-way or permit to furnish a bond, or other security, satisfactory to the [Secretary](#b-2) or [agency head](#b-3) to secure all or any of the obligations imposed by the terms and conditions of the right-of-way or permit or by any rule or regulation of the [Secretary](#b-2) or [agency head](#b-3).
- (n) **Duration of grant—** Each right-of-way or permit granted or renewed pursuant to this section shall be limited to a reasonable term in light of all circumstances concerning the project, but in no event more than thirty years. In determining the duration of a right-of-way the [Secretary](#b-2) or [agency head](#b-3) shall, among other things, take into consideration the cost of the facility, its useful life, and any public purpose it serves. The [Secretary](#b-2) or [agency head](#b-3) shall renew any right-of-way, in accordance with the provisions of this section, so long as the project is in commercial operation and is operated and maintained in accordance with all of the provisions of this section.
- (o) **Suspension or termination of right-of-way—**
  - (1) Abandonment of a right-of-way or noncompliance with any provision of this section may be grounds for suspension or termination of the right-of-way if (A) after due notice to the holder of the right-of-way, (B) a reasonable opportunity to comply with this section, and (C) an appropriate administrative proceeding pursuant to [section 554 of title 5](/usc/5/554.md), the [Secretary](#b-2) or [agency head](#b-3) determines that any such ground exists and that suspension or termination is justified. No administrative proceeding shall be required where the right-of-way by its terms provides that it terminates on the occurrence of a fixed or agreed upon condition, event, or time.
  - (2) If the [Secretary](#b-2) or [agency head](#b-3) determines that an immediate temporary suspension of activities within a right-of-way or [permit area](/usc/30/1291.md?p=17) is necessary to protect public health or safety or the environment, he may abate such activities prior to an administrative proceeding.
  - (3) Deliberate failure of the holder to use the right-of-way for the purpose for which it was granted or renewed for any continuous two-year period shall constitute a rebuttable presumption of abandonment of the right-of-way: Provided, That where the failure to use the right-of-way is due to circumstances not within the holder’s control the [Secretary](#b-2) or [agency head](#b-3) is not required to commence proceedings to suspend or terminate the right-of-way.
- (p) **Joint use of rights-of-way—** In order to minimize adverse environmental impacts and the proliferation of separate rights-of-way across Federal lands, the utilization of rights-of-way in common shall be required to the extent practical, and each right-of-way or permit shall reserve to the [Secretary](#b-2) or [agency head](#b-3) the right to grant additional rights-of-way or permits for compatible uses on or adjacent to rights-of-way or [permit area](/usc/30/1291.md?p=17) granted pursuant to this section.
- (q) **Statutes—** No rights-of-way for the purposes provided for in this section shall be granted or renewed across Federal lands except under and subject to the provisions, limitations, and conditions of this section. Any application for a right-of-way filed under any other law prior to the effective date of this provision may, at the applicant’s option, be considered as an application under this section. The [Secretary](#b-2) or [agency head](#b-3) may require the applicant to submit any additional information he deems necessary to comply with the requirements of this section.
- (r) **Common carriers—**
  - (1) Pipelines and related facilities authorized under this section shall be constructed, operated, and maintained as common carriers.
  - (2)
    - (A) The owners or operators of pipelines subject to this section shall accept, convey, transport, or purchase without discrimination all [oil](/usc/30/181.md) or gas delivered to the pipeline without regard to whether such [oil](/usc/30/181.md) or gas was produced on Federal or non-Federal lands.
    - (B) In the case of [oil](/usc/30/181.md) or gas produced from Federal lands or from the resources on the Federal lands in the vicinity of the pipeline, the [Secretary](#b-2) may, after a full hearing with due notice thereof to the interested parties and a proper finding of facts, determine the proportionate amounts to be accepted, conveyed, transported or purchased.
  - (3)
    - (A) The common carrier provisions of this section shall not apply to any natural gas pipeline operated by any person subject to regulation under the Natural Gas Act [[15 U.S.C. 717](/usc/15/717.md) et seq.] or by any public utility subject to regulation by a State or municipal regulatory agency having jurisdiction to regulate the rates and charges for the sale of natural gas to consumers within the State or municipality.
    - (B) Where natural gas not subject to State regulatory or conservation laws governing its purchase by pipelines is offered for sale, each such pipeline shall purchase, without discrimination, any such natural gas produced in the vicinity of the pipeline.
  - (4) The Government shall in express terms reserve and shall provide in every lease of [oil](/usc/30/181.md) lands under this chapter that the lessee, assignee, or beneficiary, if owner or operator of a controlling interest in any pipeline or of any company operating the pipeline which may be operated accessible to the [oil](/usc/30/181.md) derived from lands under such lease, shall at reasonable rates and without discrimination accept and convey the [oil](/usc/30/181.md) of the Government or of any citizen or company not the owner of any pipeline operating a lease or purchasing gas or [oil](/usc/30/181.md) under the provisions of this chapter.
  - (5) Whenever the [Secretary](#b-2) has reason to believe that any owner or operator subject to this section is not operating any [oil](/usc/30/181.md) or gas pipeline in complete accord with its obligations as a common carrier hereunder, he may request the Attorney General to prosecute an appropriate proceeding before the [Secretary](#b-2) of Energy or Federal Energy Regulatory Commission or any appropriate State agency or the United States district court for the district in which the pipeline or any part thereof is located, to enforce such obligation or to impose any penalty provided therefor, or the [Secretary](#b-2) may, by proceeding as provided in this section, suspend or terminate the said grant of right-of-way for noncompliance with the provisions of this section.
  - (6) The [Secretary](#b-2) or [agency head](#b-3) shall require, prior to granting or renewing a right-of-way, that the applicant submit and disclose all plans, contracts, agreements, or other information or material which he deems necessary to determine whether a right-of-way shall be granted or renewed and the terms and conditions which should be included in the right-of-way. Such information may include, but is not limited to: (A) conditions for, and agreements among owners or operators, regarding the addition of pumping facilities, looping, or otherwise increasing the pipeline or terminal’s throughput capacity in response to actual or anticipated increases in demand; (B) conditions for adding or abandoning intake, offtake, or storage points or facilities; and (C) minimum shipment or purchase tenders.
- (s) **Exports of Alaskan North Slope oil—**
  - (1) Subject to [paragraphs (2) through (6)](#2..6) of this subsection and notwithstanding any other provision of this chapter or any other provision of law (including any regulation) applicable to the export of [oil](/usc/30/181.md) transported by pipeline over right-of-way granted pursuant to [section 1652 of title 43](/usc/43/1652.md), such [oil](/usc/30/181.md) may be exported unless the President finds that exportation of this [oil](/usc/30/181.md) is not in the national interest. The President shall make his national interest determination within five months of November 28, 1995. In evaluating whether exports of this [oil](/usc/30/181.md) are in the national interest, the President shall at a minimum consider—
    - (A) whether exports of this [oil](/usc/30/181.md) would diminish the total quantity or quality of petroleum available to the United States;
    - (B) the results of an appropriate environmental review, including consideration of appropriate measures to mitigate any potential adverse effects of exports of this [oil](/usc/30/181.md) on the environment, which shall be completed within four months of November 28, 1995; and
    - (C) whether exports of this [oil](/usc/30/181.md) are likely to cause sustained material [oil](/usc/30/181.md) supply shortages or sustained [oil](/usc/30/181.md) prices significantly above world market levels that would cause sustained material adverse employment effects in the United States or that would cause substantial harm to consumers, including noncontiguous States and Pacific territories.

    If the President determines that exports of this [oil](/usc/30/181.md) are in the national interest, he may impose such terms and conditions (other than a volume limitation) as are necessary or appropriate to ensure that such exports are consistent with the national interest.

  - (2) Except in the case of [oil](/usc/30/181.md) exported to a country with which the United States entered into a bilateral international [oil](/usc/30/181.md) supply agreement before November 26, 1979, or to a country pursuant to the International Emergency [Oil](/usc/30/181.md) Sharing Plan of the International Energy Agency, any [oil](/usc/30/181.md) transported by pipeline over right-of-way granted pursuant to [section 1652 of title 43](/usc/43/1652.md) shall, when exported, be transported by a vessel documented under the laws of the United States and owned by a citizen of the United States (as determined in accordance with [section 50501 of title 46](/usc/46/50501.md)).
  - (3) Nothing in this subsection shall restrict the authority of the President under the Constitution, the International Emergency Economic Powers Act ([50 U.S.C. 1701](/usc/50/1701.md) et seq.), the National Emergencies Act ([50 U.S.C. 1601](/usc/50/1601.md) et seq.), or Part B of title II of the Energy Policy and Conservation Act ([42 U.S.C. 6271–76](https://uscode.house.gov/view.xhtml?req=(/us/usc/t42/s6271–76))) to prohibit exports.
  - (4) The [Secretary](#b-2) of Commerce shall issue any rules necessary for implementation of the President’s national interest determination, including any licensing requirements and conditions, within 30 days of the date of such determination by the President. The [Secretary](#b-2) of Commerce shall consult with the [Secretary](#b-2) of Energy in administering the provisions of this subsection.
  - (5) If the [Secretary](#b-2) of Commerce finds that exporting [oil](/usc/30/181.md) under authority of this subsection has caused sustained material [oil](/usc/30/181.md) supply shortages or sustained [oil](/usc/30/181.md) prices significantly above world market levels and further finds that these supply shortages or price increases have caused or are likely to cause sustained material adverse employment effects in the United States, the [Secretary](#b-2) of Commerce, in consultation with the [Secretary](#b-2) of Energy, shall recommend, and the President may take, appropriate action concerning exports of this [oil](/usc/30/181.md), which may include modifying or revoking authority to export such [oil](/usc/30/181.md).
  - (6) Administrative action under this subsection is not subject to sections [551](/usc/5/551.md) and [553 through 559](/usc/5/553..559.md) of title 5.
- (t) **Existing rights-of-way—** The [Secretary](#b-2) or [agency head](#b-3) may ratify and confirm any right-of-way or permit for an [oil](/usc/30/181.md) or gas pipeline or related facility that was granted under any provision of law before the effective date of this subsection, if it is modified by mutual agreement to comply to the extent practical with the provisions of this section. Any action taken by the [Secretary](#b-2) or [agency head](#b-3) pursuant to this subsection shall not be considered a major Federal action requiring a detailed statement pursuant to section 102(2)(C) of the National Environmental Policy Act of 1970 (Public Law 90–190; [42 U.S.C. 4321](/usc/42/4321.md)).[^1]
- (u) **Limitations on export—** Any domestically produced crude [oil](/usc/30/181.md) transported by pipeline over rights-of-way granted pursuant to this section, except such crude [oil](/usc/30/181.md) which is either exchanged in similar quantity for convenience or increased efficiency of transportation with persons or the government of an adjacent foreign state, or which is temporarily exported for convenience or increased efficiency of transportation across parts of an adjacent foreign state and reenters the United States, shall be subject to all of the limitations and licensing requirements of the Export Administration Act of 1979 (50 U.S.C. App. 2401 and following)[^2] and, in addition, before any crude [oil](/usc/30/181.md) subject to this section may be exported under the limitations and licensing requirements and penalty and enforcement provisions of the Export Administration Act of 1979 the President must make and publish an express finding that such exports will not diminish the total quantity or quality of petroleum available to the United States, and are in the national interest and are in accord with the provisions of the Export Administration Act of 1979: Provided, That the President shall submit reports to the Congress containing findings made under this section, and after the date of receipt of such report Congress shall have a period of sixty calendar days, thirty days of which Congress must have been in session, to consider whether exports under the terms of this section are in the national interest. If the Congress within this time period passes a concurrent resolution of disapproval stating disagreement with the President’s finding concerning the national interest, further exports made pursuant to the aforementioned Presidential findings shall cease.
- (v) **State standards—** The [Secretary](#b-2) or [agency head](#b-3) shall take into consideration and to the extent practical comply with State standards for right-of-way construction, operation, and maintenance.
- (w) **Reports—**
  - (1) The [Secretary](#b-2) and other appropriate [agency heads](#b-3) shall report to the Committee on Natural Resources of the United States House of Representatives and the Committee on Energy and Natural Resources of the United States Senate annually on the administration of this section and on the safety and environmental requirements imposed pursuant thereto.
  - (2) The [Secretary](#b-2) or [agency head](#b-3) shall promptly notify the Committee on Natural Resources of the United States House of Representatives and the Committee on Energy and Natural Resources of the United States Senate upon receipt of an application for a right-of-way for a pipeline twenty-four inches or more in diameter, and no right-of-way for such a pipeline shall be granted until a notice of intention to grant the right-of-way, together with the [Secretary](#b-2)’s or [agency head](#b-3)’s detailed findings as to the terms and conditions he proposes to impose, has been submitted to such committees.
  - (3) Periodically, but at least once a year, the [Secretary](#b-2) of the Department of Transportation shall cause the examination of all pipelines and associated facilities on Federal lands and shall cause the prompt reporting of any potential leaks or safety problems.
- (x) **Liability—**
  - (1) The [Secretary](#b-2) or [agency head](#b-3) shall promulgate regulations and may impose stipulations specifying the extent to which holders of rights-of-way and permits under this chapter shall be liable to the United States for damage or injury incurred by the United States in connection with the right-of-way or permit. Where the right-of-way or permit involves lands which are under the exclusive jurisdiction of the Federal Government, the [Secretary](#b-2) or [agency head](#b-3) shall promulgate regulations specifying the extent to which holders shall be liable to third parties for injuries incurred in connection with the right-of-way or permit.
  - (2) The [Secretary](#b-2) or [agency head](#b-3) may, by regulation or stipulation, impose a standard of strict liability to govern activities taking place on a right-of-way or [permit area](/usc/30/1291.md?p=17) which the [Secretary](#b-2) or [agency head](#b-3) determines, in his discretion, to present a foreseeable hazard or risk of danger to the United States.
  - (3) Regulations and stipulations pursuant to this subsection shall not impose strict liability for damage or injury resulting from (A) an act of war, or (B) negligence of the United States.
  - (4) Any regulation or stipulation imposing liability without fault shall include a maximum limitation on damages commensurate with the foreseeable risks or hazards presented. Any liability for damage or injury in excess of this amount shall be determined by ordinary rules of negligence.
  - (5) The regulations and stipulations shall also specify the extent to which such holders shall indemnify or hold harmless the United States for liability, damage, or claims arising in connection with the right-of-way or permit.
  - (6) Any regulation or stipulation promulgated or imposed pursuant to this section shall provide that all owners of any interest in, and all affiliates or subsidiaries of any holder of, a right-of-way or permit shall be liable to the United States in the event that a claim for damage or injury cannot be collected from the holder.
  - (7) In any case where liability without fault is imposed pursuant to this subsection and the damages involved were caused by the negligence of a third party, the rules of subrogation shall apply in accordance with the law of the jurisdiction where the damage occurred.
- (y) **Antitrust laws—** The grant of a right-of-way or permit pursuant to this section shall grant no immunity from the operation of the Federal antitrust laws.

# §186. Reservation of easements or rights-of-way for working purposes; reservation of right to dispose of surface of lands; determination before offering of lease; easement periods


Any permit, lease, occupation, or use permitted under this chapter shall reserve to the Secretary of the Interior the right to permit upon such terms as he may determine to be just, for joint or several use, such easements or rights-of-way, including easements in tunnels upon, through, or in the lands leased, occupied, or used as may be necessary or appropriate to the working of the same, or of other lands containing the deposits described in this chapter, and the treatment and shipment of the products thereof by or under authority of the Government, its lessees, or permittees, and for other public purposes. The Secretary of the Interior, in his discretion, in making any lease under this chapter, may reserve to the United States the right to lease, sell, or otherwise dispose of the surface of the lands embraced within such lease under existing law or laws hereafter enacted, insofar as said surface is not necessary for use of the lessee in extracting and removing the deposits therein. If such reservation is made it shall be so determined before the offering of such lease. The said Secretary, during the life of the lease, is authorized to issue such permits for easements herein provided to be reserved.


# §187. Assignment or subletting of leases; relinquishment of rights under leases; conditions in leases for protection of diverse interests in operation of mines, wells, etc.; State laws not impaired


No lease issued under the authority of this chapter shall be assigned or sublet, except with the consent of the Secretary of the Interior. The lessee may, in the discretion of the Secretary of the Interior, be permitted at any time to make written relinquishment of all rights under such a lease, and upon acceptance thereof be thereby relieved of all future obligations under said lease, and may with like consent surrender any legal subdivision of the area included within the lease. Each lease shall contain provisions for the purpose of insuring the exercise of reasonable diligence, skill, and care in the operation of said property; a provision that such rules for the safety and welfare of the miners and for the prevention of undue waste as may be prescribed by said Secretary shall be observed, including a restriction of the workday to not exceeding eight hours in any one day for underground workers except in cases of emergency; provisions prohibiting the employment of any child under the age of sixteen in any mine below the surface; provisions securing the workmen complete freedom of purchase; provision requiring the payment of wages at least twice a month in lawful money of the United States, and providing proper rules and regulations to insure the fair and just weighing or measurement of the coal mined by each miner, and such other provisions as he may deem necessary to insure the sale of the production of such leased lands to the United States and to the public at reasonable prices, for the protection of the interests of the United States, for the prevention of monopoly, and for the safeguarding of the public welfare. None of such provisions shall be in conflict with the laws of the State in which the leased property is situated.


# §187a. Oil or gas leases; partial assignments


Notwithstanding anything to the contrary in [section 187 of this title](/usc/30/187.md), any [oil](/usc/30/181.md) or gas lease issued under the authority of this chapter may be assigned or subleased, as to all or part of the acreage included therein, subject to final approval by the Secretary and as to either a divided or undivided interest therein, to any person or persons qualified to own a lease under this chapter, and any assignment or sublease shall take effect as of the first day of the lease month following the date of filing in the proper land office of three original executed counterparts thereof, together with any required bond and proof of the qualification under this chapter of the assignee or sublessee to take or hold such lease or interest therein. Until such approval, however, the assignor or sublessor and his surety shall continue to be responsible for the performance of any and all obligations as if no assignment or sublease had been executed. The Secretary shall disapprove the assignment or sublease only for lack of qualification of the assignee or sublessee or for lack of sufficient bond: Provided, however, That the Secretary may, in his discretion, disapprove an assignment of any of the following, unless the assignment constitutes the entire lease or is demonstrated to further the development of [oil](/usc/30/181.md) and gas:

- (1) A separate zone or deposit under any lease.
- (2) A part of a legal subdivision.
- (3) Less than 640 acres outside Alaska or of less than 2,560 acres within Alaska.

Requests for approval of assignment or sublease shall be processed promptly by the Secretary. Except where the assignment or sublease is not in accordance with applicable law, the approval shall be given within 60 days of the date of receipt by the Secretary of a request for such approval. Upon approval of any assignment or sublease, the assignee or sublessee shall be bound by the terms of the lease to the same extent as if such assignee or sublessee were the original lessee, any conditions in the assignment or sublease to the contrary notwithstanding. Any partial assignment of any lease shall segregate the assigned and retained portions thereof, and as above provided, release and discharge the assignor from all obligations thereafter accruing with respect to the assigned lands; and such segregated leases shall continue in full force and effect for the primary term of the original lease, but for not less than two years after the date of discovery of [oil](/usc/30/181.md) or gas in paying quantities upon any other segregated portion of the lands originally subject to such lease. Assignments under this section may also be made of parts of leases which are in their extended term because of any provision of this chapter. Upon the segregation by an assignment of a lease issued after September 2, 1960 and held beyond its primary term by production, actual or suspended, or the payment of compensatory royalty, the segregated lease of an undeveloped, assigned, or retained part shall continue for two years, and so long thereafter as [oil](/usc/30/181.md) or gas is produced in paying quantities.


# §187b. Oil or gas leases; written relinquishment of rights; release of obligations


Notwithstanding any provision to the contrary in [section 187 of this title](/usc/30/187.md), a lessee may at any time make and file in the appropriate land office a written relinquishment of all rights under any [oil](/usc/30/181.md) or gas lease issued under the authority of this chapter or of any legal subdivision of the area included within any such lease. Such relinquishment shall be effective as of the date of its filing, subject to the continued obligation of the lessee and his surety to make payment of all accrued rentals and royalties and to place all wells on the lands to be relinquished in condition for suspension or abandonment in accordance with the applicable lease terms and regulations; thereupon the lessee shall be released of all obligations thereafter accruing under said lease with respect to the lands relinquished, but no such relinquishment shall release such lessee, or his bond, from any liability for breach of any obligation of the lease, other than an obligation to drill, accrued at the date of the relinquishment.


# §188. Failure to comply with provisions of lease

- (a) **Forfeiture—** Except as otherwise herein provided, any lease issued under the provisions of this chapter may be forfeited and canceled by an appropriate proceeding in the United States district court for the district in which the property, or some part thereof, is located whenever the lessee fails to comply with any of the provisions of this chapter, of the lease, or of the general regulations promulgated under this chapter and in force at the date of the lease; and the lease may provide for resort to appropriate methods for the settlement of disputes or for remedies for breach of specified conditions thereof.
- (b) **Cancellation—** Any lease issued after August 21, 1935, under the provisions of [section 226 of this title](/usc/30/226.md) shall be subject to cancellation by the Secretary of the Interior after 30 days notice upon the failure of the lessee to comply with any of the provisions of the lease, unless or until the leasehold contains a well capable of production of [oil](/usc/30/181.md) or gas in paying quantities, or the lease is committed to an approved cooperative or unit plan or communitization agreement under [section 226(m) of this title](/usc/30/226.md?p=m) which contains a well capable of production of unitized substances in paying quantities. Such notice in advance of cancellation shall be sent the lease owner by registered letter directed to the lease owner’s record post-office address, and in case such letter shall be returned as undelivered, such notice shall also be posted for a period of thirty days in the United States land office for the district in which the land covered by such lease is situated, or in the event that there is no district land office for such district, then in the post office nearest such land. Notwithstanding the provisions of this section, however, upon failure of a lessee to pay rental on or before the anniversary date of the lease, for any lease on which there is no well capable of producing [oil](/usc/30/181.md) or gas in paying quantities, the lease shall automatically terminate by operation of law: Provided, however, That when the time for payment falls upon any day in which the proper office for payment is not open, payment may be received the next official working day and shall be considered as timely made: Provided, That if the rental payment due under a lease is paid on or before the anniversary date but either (1) the amount of the payment has been or is hereafter deficient and the deficiency is nominal, as determined by the Secretary by regulation, or (2) the payment was calculated in accordance with the acreage figure stated in the lease, or in any decision affecting the lease, or made in accordance with a bill or decision which has been rendered by him and such figure, bill, or decision is found to be in error resulting in a deficiency, such lease shall not automatically terminate unless (1) a new lease had been issued prior to May 12, 1970, or (2) the lessee fails to pay the deficiency within the period prescribed in a notice of deficiency sent to him by the Secretary.
- (c) **Reinstatement—** Where any lease has been or is hereafter terminated automatically by operation of law under this section for failure to pay on or before the anniversary date the full amount of rental due, but such rental was paid on or tendered within twenty days thereafter, and it is shown to the satisfaction of the Secretary of the Interior that such failure was either justifiable or not due to a lack of reasonable diligence on the part of the lessee, the Secretary may reinstate the lease if—
  - (1) a petition for reinstatement, together with the required rental, including back rental accruing from the date of termination of the lease, is filed with the Secretary; and
  - (2) no valid lease has been issued affecting any of the lands covered by the terminated lease prior to the filing of said petition. The Secretary shall not issue any new lease affecting any of the lands covered by such terminated lease for a reasonable period, as determined in accordance with regulations issued by him. In any case where a reinstatement of a terminated lease is granted under this subsection and the Secretary finds that the reinstatement of such lease will not afford the lessee a reasonable opportunity to continue operations under the lease, the Secretary may, at his discretion, extend the term of such lease for such period as he deems reasonable: Provided, That (A) such extension shall not exceed a period equivalent to the time beginning when the lessee knew or should have known of the termination and ending on the date the Secretary grants such petition; (B) such extension shall not exceed a period equal to the unexpired portion of the lease or any extension thereof remaining at the date of termination; and (C) when the reinstatement occurs after the expiration of the term or extension thereof the lease may be extended from the date the Secretary grants the petition.
- (d) **Additional grounds for reinstatement—**
  - (1) Where any [oil](/usc/30/181.md) and gas lease issued pursuant to section [226(b)](/usc/30/226.md?p=b) or [(c)](/usc/30/226.md?p=c) of this title or the Mineral Leasing Act for Acquired Lands ([30 U.S.C. 351](/usc/30/351.md) et seq.) has been, or is hereafter, terminated automatically by operation of law under this section for failure to pay on or before the anniversary date the full amount of the rental due, and such rental is not paid or tendered within twenty days thereafter, and it is shown to the satisfaction of the Secretary of the Interior that such failure was justifiable or not due to lack of reasonable diligence on the part of the lessee, or, no matter when the rental is paid after termination, it is shown to the satisfaction of the Secretary that such failure was inadvertent, the Secretary may reinstate the lease as of the date of termination for the unexpired portion of the primary term of the original lease or any extension thereof remaining at the date of termination, and so long thereafter as [oil](/usc/30/181.md) or gas is produced in paying quantities. In any case where a lease is reinstated under this subsection and the Secretary finds that the reinstatement of such lease (A) occurs after the expiration of the primary term or any extension thereof, or (B) will not afford the lessee a reasonable opportunity to continue operations under the lease, the Secretary may, at his discretion, extend the term of such lease for such period as he deems reasonable, but in no event for more than two years from the date the Secretary authorizes the reinstatement and so long thereafter as [oil](/usc/30/181.md) or gas is produced in paying quantities.
  - (2) No lease shall be reinstated under paragraph (1) of this subsection unless—
    - (A) with respect to any lease that terminated under [subsection (b)](#b) on or before August 8, 2005, a petition for reinstatement (together with the required back rental and royalty accruing after the date of termination) is filed on or before the earlier of—
      - (i) 60 days after the lessee receives from the Secretary notice of termination, whether by return of check or by any other form of actual notice; or
      - (ii) 15 months after the termination of the lease; or
    - (B) with respect to any lease that terminates under [subsection (b)](#b) after August 8, 2005, a petition for reinstatement (together with the required back rental and royalty accruing after the date of termination) is filed on or before the earlier of—
      - (i) 60 days after receipt of the notice of termination sent by the Secretary by certified mail to all lessees of record; or
      - (ii) 24 months after the termination of the lease.
- (e) **Conditions for reinstatement—** Any reinstatement under [subsection (d)](#d) of this section shall be made only if these conditions are met:
  - (1) no valid lease, whether still in existence or not, shall have been issued affecting any of the lands covered by the terminated lease prior to the filing of such petition: Provided, however, That after receipt of a petition for reinstatement, the Secretary shall not issue any new lease affecting any of the lands covered by such terminated lease for a reasonable period, as determined in accordance with regulations issued by him;
  - (2) payment of back rentals and either the inclusion in a reinstated lease issued pursuant to the provisions of [section 226(b) of this title](/usc/30/226.md?p=b) of a requirement for future rentals at a rate of not less than $20 per acre per year, or the inclusion in a reinstated lease issued pursuant to the provisions of [section 226(c) of this title](/usc/30/226.md?p=c) of a requirement that future rentals shall be at a rate not less than $5 per acre per year, all as determined by the Secretary;
  - (3)
    - (A) payment of back royalties and the inclusion in a reinstated lease issued pursuant to the provisions of [section 226(b) of this title](/usc/30/226.md?p=b) of a requirement for future royalties at a rate of not less than 16⅔ percent computed on a sliding scale based upon the average production per well per day, at a rate which shall be not less than 4 percentage points greater than the competitive royality[^1] schedule then in force and used for royalty determination for competitive leases issued pursuant to such section as determined by the Secretary: Provided, That royalty on such reinstated lease shall be paid on all production removed or sold from such lease subsequent to the termination of the original lease;
    - (B) payment of back royalties and inclusion in a reinstated lease issued pursuant to the provisions of [section 226(c) of this title](/usc/30/226.md?p=c) of a requirement for future royalties at a rate not less than 16⅔ percent: Provided, That royalty on such reinstated lease shall be paid on all production removed or sold from such lease subsequent to the cancellation or termination of the original lease; and
  - (4) notice of the proposed reinstatement of a terminated lease, including the terms and conditions of reinstatement, shall be published in the Federal Register at least thirty days in advance of the reinstatement.

  A copy of said notice, together with information concerning rental, royalty, volume of production, if any, and any other matter which the Secretary deemed significant in making this determination to reinstate, shall be furnished to the Committee on Natural Resources of the House of Representatives and the Committee on Energy and Natural Resources of the Senate at least thirty days in advance of the reinstatement. The lessee of a reinstated lease shall reimburse the Secretary for the administrative costs of reinstating the lease, but not to exceed $500. In addition the lessee shall reimburse the Secretary for the cost of publication in the Federal Register of the notice of proposed reinstatement.

- (f) **Issuance of noncompetitive oil and gas lease; conditions—** Where an unpatented [oil](/usc/30/181.md) placer mining claim validly located prior to February 24, 1920, which has been or is currently producing or is capable of producing [oil](/usc/30/181.md) or gas, has been or is hereafter deemed conclusively abandoned for failure to file timely the required instruments or copies of instruments required by [section 1744 of title 43](/usc/43/1744.md), and it is shown to the satisfaction of the Secretary that such failure was inadvertent, justifiable, or not due to lack of reasonable diligence on the part of the owner, the Secretary may issue, for the lands covered by the abandoned unpatented [oil](/usc/30/181.md) placer mining claim, a noncompetitive [oil](/usc/30/181.md) and gas lease, consistent with the provisions of [section 226(e) of this title](/usc/30/226.md?p=e), to be effective from the statutory date the claim was deemed conclusively abandoned. Issuance of such a lease shall be conditioned upon:
  - (1) a petition for issuance of a noncompetitive [oil](/usc/30/181.md) and gas lease, together with the required rental and royalty, including back rental and royalty accruing from the statutory date of abandonment of the [oil](/usc/30/181.md) placer mining claim, being filed with the Secretary—
    - (A) with respect to any claim deemed conclusively abandoned on or before January 12, 1983, on or before the one hundred and twentieth day after January 12, 1983, or
    - (B) with respect to any claim deemed conclusively abandoned after January 12, 1983, on or before the one hundred and twentieth day after final notification by the Secretary or a court of competent jurisdiction of the determination of the abandonment of the [oil](/usc/30/181.md) placer mining claim;
  - (2) a valid lease not having been issued affecting any of the lands covered by the abandoned [oil](/usc/30/181.md) placer mining claim prior to the filing of such petition: Provided, however, That after the filing of a petition for issuance of a lease under this subsection, the Secretary shall not issue any new lease affecting any of the lands covered by such abandoned [oil](/usc/30/181.md) placer mining claim for a reasonable period, as determined in accordance with regulations issued by him;
  - (3) a requirement in the lease for payment of rental, including back rentals accruing from the statutory date of abandonment of the [oil](/usc/30/181.md) placer mining claim, of not less than $5 per acre per year;
  - (4) a requirement in the lease for payment of royalty on production removed or sold from the [oil](/usc/30/181.md) placer mining claim, including all royalty on production made subsequent to the statutory date the claim was deemed conclusively abandoned, of not less than 12½ percent; and
  - (5) compliance with the notice and reimbursement of costs provisions of [paragraph (4)](#e-4) of subsection (e) but addressed to the petition covering the conversion of an abandoned unpatented [oil](/usc/30/181.md) placer mining claim to a noncompetitive [oil](/usc/30/181.md) and gas lease.
- (g) **Treatment of leases—**
  - (1) Except as otherwise provided in this section, a reinstated lease shall be treated as a competitive or a noncompetitive [oil](/usc/30/181.md) and gas lease in the same manner as the original lease issued pursuant to section [226(b)](/usc/30/226.md?p=b) or [(c)](/usc/30/226.md?p=c) of this title.
  - (2) Except as otherwise provided in this section, the issuance of a lease in lieu of an abandoned patented [oil](/usc/30/181.md) placer mining claim shall be treated as a noncompetitive [oil](/usc/30/181.md) and gas lease issued pursuant to [section 226(c) of this title](/usc/30/226.md?p=c).
  - (3) Notwithstanding any other provision of law, any lease issued pursuant to [section 223 of this title](/usc/30/223.md) shall be eligible for reinstatement under the terms and conditions set forth in subsections [(c)](#c), [(d)](#d), and [(e)](#e) of this section, applicable to leases issued under [section 226(c) of this title](/usc/30/226.md?p=c) except, that, upon reinstatement, such lease shall continue for twenty years and so long thereafter as [oil](/usc/30/181.md) or gas is produced in paying quantities.
  - (4) Notwithstanding any other provision of law, any lease issued pursuant to [section 223 of this title](/usc/30/223.md) shall, upon renewal on or after November 15, 1990, continue for twenty years and so long thereafter as [oil](/usc/30/181.md) or gas is produced in paying quantities.
- (h) **Statutory provisions applicable to leases—** The minimum royalty provisions of [section 226(m) of this title](/usc/30/226.md?p=m) and the provisions of [section 209 of this title](/usc/30/209.md) shall be applicable to leases issued pursuant to subsections [(d)](#d) and [(f)](#f) of this section.
- (i) **Royalty reductions—**
  - (1) In acting on a petition to issue a noncompetitive [oil](/usc/30/181.md) and gas lease, under [subsection (f)](#f) of this section or in response to a request filed after issuance of such a lease, or both, the Secretary is authorized to reduce the royalty on such lease if in his judgment it is equitable to do so or the circumstances warrant such relief due to uneconomic or other circumstances which could cause undue hardship or premature termination of production.
  - (2) In acting on a petition for reinstatement pursuant to [subsection (d)](#d) of this section or in response to a request filed after reinstatement, or both, the Secretary is authorized to reduce the royalty in that reinstated lease on the entire leasehold or any tract or portion thereof segregated for royalty purposes if, in his judgment, there are uneconomic or other circumstances which could cause undue hardship or premature termination of production; or because of any written action of the United States, its agents or employees, which preceded, and was a major consideration in, the lessee’s expenditure of [funds](/usc/30/1291.md?p=7) to develop the property under the lease after the rent had become due and had not been paid; or if in the judgment of the Secretary it is equitable to do so for any reason.
- (j) **Discretion of Secretary—** Where, in the judgment of the Secretary of the Interior, drilling operations were being diligently conducted on the last day of the primary term of the lease, and, except for nonpayment of rental, the lessee would have been entitled to extension of his lease, pursuant to [section 226–1(d) of this title](/usc/30/226–1.md?p=d), the Secretary of the Interior may reinstate such lease notwithstanding the failure of the lessee to have made payment of the next year’s rental, provided the conditions of subparagraphs (1) and (2) of section[^2] (c) are satisfied.