§ 187a. — Oil or gas leases; partial assignments.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 30USC187a]
TITLE 30--MINERAL LANDS AND MINING
CHAPTER 3A--LEASES AND PROSPECTING PERMITS
SUBCHAPTER I--GENERAL PROVISIONS
Sec. 187a. Oil or gas leases; partial assignments
Notwithstanding anything to the contrary in section 187 of this
title, any oil 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 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 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 or gas
is produced in paying quantities.
(Feb. 25, 1920, ch. 85, Sec. 30A, formerly Sec. 30a, as added Aug. 8,
1946, ch. 916, Sec. 7, 60 Stat. 955; amended July 29, 1954, ch. 644,
Sec. 1(6), 68 Stat. 585; Pub. L. 86-705, Sec. 6, Sept. 2, 1960, 74 Stat.
790; renumbered Sec. 30A and amended Pub. L. 100-203, title V,
Sec. 5103, Dec. 22, 1987, 101 Stat. 1330-258.)
Amendments
1987--Pub. L. 100-203 substituted third to fifth sentences for
former third sentence which read as follows: ``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 a separate zone or deposit under any lease, or of a part
of a legal subdivision.''
1960--Pub. L. 86-705 amended last sentence to restrict automatic
extensions after Sept. 2, 1960.
1954--Act July 29, 1954, authorized partial assignment of a lease in
its extended term regardless of reason for extension.
Savings Provision
See note set out under section 181 of this title.
Leases Issued Prior to September 2, 1960
Section 6 of Pub. L. 86-705 provided in part that: ``The provisions
of this section 6 [amending this section] shall not be applicable to any
lease issued prior to the effective date of this Act [Sept. 2, 1960].''
Section Referred to in Other Sections
This section is referred to in title 10 sections 7421, 7435.
