§ 192. — Payment of royalties in oil or gas; sale of such oil or gas.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 30USC192]
TITLE 30--MINERAL LANDS AND MINING
CHAPTER 3A--LEASES AND PROSPECTING PERMITS
SUBCHAPTER I--GENERAL PROVISIONS
Sec. 192. Payment of royalties in oil or gas; sale of such oil
or gas
All royalty accruing to the United States under any oil or gas lease
or permit under this chapter on demand of the Secretary of the Interior
shall be paid in oil or gas.
Upon granting any oil or gas lease under this chapter, and from time
to time thereafter during said lease, the Secretary of the Interior
shall, except whenever in his judgment it is desirable to retain the
same for the use of the United States, offer for sale for such period as
he may determine, upon notice and advertisement on sealed bids or at
public auction, all royalty oil and gas accruing or reserved to the
United States under such lease. Such advertisement and sale shall
reserve to the Secretary of the Interior the right to reject all bids
whenever within his judgment the interest of the United States demands;
and in cases where no satisfactory bid is received or where the accepted
bidder fails to complete the purchase, or where the Secretary of the
Interior shall determine that it is unwise in the public interest to
accept the offer of the highest bidder, the Secretary of the Interior,
within his discretion, may readvertise such royalty for sale, or sell at
private sale at not less than the market price for such period, or
accept the value thereof from the lessee: Provided, That inasmuch as the
public interest will be served by the sale of royalty oil to refineries
not having their own source of supply for crude oil, the Secretary of
the Interior, when he determines that sufficient supplies of crude oil
are not available in the open market to such refineries, is authorized
and directed to grant preference to such refineries in the sale of oil
under the provisions of this section, for processing or use in such
refineries and not for resale in kind, and in so doing may sell to such
refineries at private sale at not less than the market price any royalty
oil accruing or reserved to the United States under leases issued
pursuant to this chapter: Provided further, That in selling such royalty
oil the Secretary of the Interior may at his discretion prorate such oil
among such refineries in the area in which the oil is produced:
Provided, however, That pending the making of a permanent contract for
the sale of any royalty, oil or gas as herein provided, the Secretary of
the Interior may sell the current product at private sale, at not less
than the market price: And provided further, That any royalty, oil, or
gas may be sold at not less than the market price at private sale to any
department or agency of the United States.
(Feb. 25, 1920, ch. 85, Sec. 36, 41 Stat. 451; July 13, 1946, ch. 574,
60 Stat. 533.)
Amendments
1946--Act July 13, 1946, inserted first two provisos which were
enacted in order to assist small business enterprise by encouraging the
operation of oil refineries not having an adequate supply of crude oil.
Outer Continental Shelf; Royalties From Leases
Payment of royalties from mineral leases on submerged lands of outer
Continental Shelf, see section 1337 of Title 43, Public Lands.
Section Referred to in Other Sections
This section is referred to in sections 192a, 192b, 275, 285 of this
title; title 10 sections 7421, 7435.
