§ 1003. — Bids; competitive bidding; first application of qualified person without competitive bidding.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 30USC1003]
TITLE 30--MINERAL LANDS AND MINING
CHAPTER 23--GEOTHERMAL STEAM AND ASSOCIATED GEOTHERMAL RESOURCES
Sec. 1003. Bids; competitive bidding; first application of
qualified person without competitive bidding
If lands to be leased under this chapter are within any known
geothermal resources area, they shall be leased to the highest
responsible qualified bidder by competitive bidding under regulations
formulated by the Secretary. If the lands to be leased are not within
any known geothermal resources area, the qualified person first making
application for the lease shall be entitled to a lease of such lands
without competitive bidding. Notwithstanding the foregoing, at any time
within one hundred and eighty days following December 24, 1970:
(a) Conversion to geothermal lease
with respect to all lands which were on September 7, 1965,
subject to valid leases or permits issued under the Mineral Leasing
Act of February 25, 1920, as amended (30 U.S.C. 181 et seq.), or
under the Mineral Leasing Act of Acquired Lands, as amended (30
U.S.C. 351, 358), or to existing mining claims located on or prior
to September 7, 1965, the lessees or permittees or claimants or
their successors in interest who are qualified to hold geothermal
leases shall have the right to convert such leases or permits or
claims to geothermal leases covering the same lands;
(b) Consideration of first person in conflicting land
interests
where there are conflicting claims, leases, or permits therefor
embracing the same land, the person who first was issued a lease or
permit, or who first recorded the mining claim shall be entitled to
first consideration;
(c) Conversion to application for geothermal lease
with respect to all lands which were on September 7, 1965, the
subject of applications for leases or permits under the above Acts,
the applicants may convert their applications to applications for
geothermal leases having priorities dating from the time of filing
of such applications under such Acts;
(d) Acreage limitation
no person shall be permitted to convert mineral leases, permits,
applications therefor, or mining claims for more than 10,240 acres;
and
(e) Regulations; substantial expenditures for exploration,
development, or production of geothermal steam
requisite for conversion
the conversion of leases, permits, and mining claims and
applications for leases and permits shall be accomplished in
accordance with regulations prescribed by the Secretary. No right to
conversion to a geothermal lease shall accrue to any person under
this section unless such person shows to the reasonable satisfaction
of the Secretary that substantial expenditures for the exploration,
development, or production of geothermal steam have been made by the
applicant who is seeking conversion, on the lands for which a lease
is sought or on adjoining, adjacent, or nearby Federal or non-
Federal lands.
(f) Competitive geothermal lease; time for payment of
highest bid and first year rental
with respect to lands within any known geothermal resources area
and which are subject to a right to conversion to a geothermal
lease, such lands shall be leased by competitive bidding: Provided,
That, the competitive geothermal lease shall be issued to the person
owning the right to conversion to a geothermal lease if he makes
payment of an amount equal to the highest bona fide bid for the
competitive geothermal lease, plus the rental for the first year,
within thirty days after he receives written notice from the
Secretary of the amount of the highest bid.
(Pub. L. 91-581, Sec. 4, Dec. 24, 1970, 84 Stat. 1566.)
References in Text
The Mineral Leasing Act of February 25, 1920, referred to in
subsecs. (a) and (c), is act Feb. 25, 1920, ch. 85, 41 Stat. 437, as
amended, known as the Mineral Leasing Act, which is classified generally
to chapter 3A (Sec. 181 et seq.) of this title. For complete
classification of this Act to the Code, see Short Title note set out
under section 181 of this title and Tables.
The Mineral Leasing Act of Acquired Lands, referred to in subsecs.
(a) and (c), probably means the Mineral Leasing Act for Acquired Lands,
act Aug. 7, 1947, ch. 513, 61 Stat. 913, as amended, which is classified
generally to chapter 7 (Sec. 351 et seq.) of this title. For complete
classification of this Act to the Code, see Short Title note set out
under section 351 of this title and Tables.
Transfer of Functions
Functions of Secretary of the Interior to promulgate regulations
under this chapter relating to fostering of competition for Federal
leases, implementation of alternative bidding systems authorized for
award of Federal leases, establishment of diligence requirements for
operations conducted on Federal leases, setting of rates for production
of Federal leases, and specifying of procedures, terms, and conditions
for acquisition and disposition of Federal royalty interests taken in
kind, transferred to Secretary of Energy by section 7152(b) of Title 42,
The Public Health and Welfare. Section 7152(b) of Title 42 was repealed
by Pub. L. 97-100, title II, Sec. 201, Dec. 23, 1981, 95 Stat. 1407, and
functions of Secretary of Energy returned to Secretary of the Interior.
See House Report No. 97-315, pp. 25, 26, Nov. 5, 1981.
Section Referred to in Other Sections
This section is referred to in section 1006 of this title.
