§ 209. — Suspension, waiver, or reduction of rents or royalties to promote development or operation; extension of lease on suspension of operations and production.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 30USC209]
TITLE 30--MINERAL LANDS AND MINING
CHAPTER 3A--LEASES AND PROSPECTING PERMITS
SUBCHAPTER II--COAL
Sec. 209. Suspension, waiver, or reduction of rents or royalties
to promote development or operation; extension of lease on
suspension of operations and production
The Secretary of the Interior, for the purpose of encouraging the
greatest ultimate recovery of coal, oil, gas, oil shale, gilsonite
(including all vein-type solid hydrocarbons), phosphate, sodium,
potassium and sulfur, and in the interest of conservation of natural
resources, is authorized to waive, suspend, or reduce the rental, or
minimum royalty, or reduce the royalty on an entire leasehold, or on any
tract or portion thereof segregated for royalty purposes, whenever in
his judgment it is necessary to do so in order to promote development,
or whenever in his judgment the leases cannot be successfully operated
under the terms provided therein.\1\ Provided, however, That in order to
promote development and the maximum production of tar sand, at the
request of the lessee, the Secretary shall review, prior to commencement
of commercial operations, the royalty rates established in each combined
hydrocarbon lease issued in special tar sand areas. For purposes of this
section, the term ``tar sand'' means any consolidated or unconsolidated
rock (other than coal, oil shale, or gilsonite) that either: (1)
contains a hydrocarbonaceous material with a gas-free viscosity, at
original reservoir temperature, greater than 10,000 centipoise, or (2)
contains a hydrocarbonaceous material and is produced by mining or
quarrying. In the event the Secretary of the Interior, in the interest
of conservation, shall direct or shall assent to the suspension of
operations and production under any lease granted under the terms of
this chapter, any payment of acreage rental or of minimum royalty
prescribed by such lease likewise shall be suspended during such period
of suspension of operations and production; and the term of such lease
shall be extended by adding any such suspension period thereto. The
provisions of this section shall apply to all oil and gas leases issued
under this chapter, including those within an approved or prescribed
plan for unit or cooperative development and operation. Nothing in this
section shall be construed as granting to the Secretary the authority to
waive, suspend, or reduce advance royalties.
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\1\ So in original. The period probably should be a colon.
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(Feb. 25, 1920, ch. 85, Sec. 39, as added Feb. 9, 1933, ch. 45, 47 Stat.
798; amended Aug. 8, 1946, ch. 916, Sec. 10, 60 Stat. 957; June 3, 1948,
ch. 379, Sec. 7, 62 Stat. 291; Pub. L. 94-377, Sec. 14, Aug. 4, 1976, 90
Stat. 1091; Pub. L. 97-78, Sec. 1(3), (7), Nov. 16, 1981, 95 Stat. 1070,
1071.)
Amendments
1981--Pub. L. 97-78 inserted reference to gilsonite (including all
vein-type solid hydrocarbons) and inserted proviso that, in order to
promote development and the maximum production of tar sand, at the
request of the lessee, the Secretary review, prior to commencement of
commercial operations, the royalty rates established in each combined
hydrocarbon lease issued in special tar sand areas, and that, for
purposes of this section, ``tar sand'' means any consolidated or
unconsolidated rock (other than coal, oil shale, or gilsonite) that
either contains a hydrocarbonaceous material with a gas-free viscosity,
at original reservoir temperature, greater than 10,000 centipoise, or
contains a hydrocarbonaceous material and is produced by mining or
quarrying.
1976--Pub. L. 94-377 inserted sentence at end that nothing in this
section shall be construed as granting to the Secretary authority to
waive, suspend, or reduce advance royalties.
1948--Act June 3, 1948, extended applicability of section to oil
shale, phosphate, sodium, potassium, and sulphur.
1946--Act Aug. 8, 1946, principally inserted first and third
sentences relating to waiver, suspension or reduction of royalties or
rentals, and applicability of section to cooperative or unit plans,
respectively.
Savings Provision
See note set out under section 181 of this title.
Section Referred to in Other Sections
This section is referred to in sections 188, 1272 of this title;
title 10 sections 7421, 7435.
