§ 229a. — Water struck while drilling for oil and gas.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 30USC229a]
TITLE 30--MINERAL LANDS AND MINING
CHAPTER 3A--LEASES AND PROSPECTING PERMITS
SUBCHAPTER IV--OIL AND GAS
Sec. 229a. Water struck while drilling for oil and gas
(a) Acquisition; condition in lease
All prospecting permits and leases for oil or gas made or issued
under the provisions of this chapter shall be subject to the condition
that in case the permittee or lessee strikes water while drilling
instead of oil or gas, the Secretary of the Interior may, when such
water is of such quality and quantity as to be valuable and usable at a
reasonable cost for agricultural, domestic, or other purposes, purchase
the casing in the well at the reasonable value thereof to be fixed under
rules and regulations to be prescribed by the Secretary.
(b) Prior leases
In cases where water wells producing such water have heretofore been
or may hereafter be drilled upon lands embraced in any prospecting
permit or lease heretofore issued under this chapter, the Secretary may
in like manner purchase the casing in such wells.
(c) Disposition
The Secretary may make such purchase and may lease or operate such
wells for the purpose of producing water and of using the same on the
public lands or of disposing of such water for beneficial use on other
lands, and where such wells have heretofore been plugged or abandoned or
where such wells have been drilled prior to the issuance of any permit
or lease by persons not in privity with the permittee or lessee, the
Secretary may develop the same for the purposes of this section:
Provided, That owners or occupants of lands adjacent to those upon which
such water wells may be developed shall have a preference right to make
beneficial use of such water.
(d) Revolving fund
The Secretary may use so much of any funds available for the
plugging of wells as he may find necessary to start the program provided
for by this section, and thereafter he may use the proceeds from the
sale or other disposition of such water as a revolving fund for the
continuation of such program, and such proceeds are hereby appropriated
for such purpose.
(e) Operations under lease not restricted
Nothing in this section shall be construed to restrict operations
under any oil or gas lease or permit under any other provision of this
chapter.
(Feb. 25, 1920, ch. 85, Sec. 40, as added June 16, 1934, ch. 557, 48
Stat. 977; amended Pub. L. 94-579, title VII, Sec. 704(a), Oct. 21,
1976, 90 Stat. 2792.)
Amendments
1976--Subsec. (a). Pub. L. 94-579 struck out proviso relating to
reservation of land as a water hole under section 300 of title 43.
Effective Date of 1976 Amendment
Section 704(a) of Pub. L. 94-579 provided that the amendment made by
that section is effective on and after Oct. 21, 1976.
Savings Provision
Amendment by Pub. L. 94-579 not to be construed as terminating any
valid lease, permit, patent, etc., existing on Oct. 21, 1976, see
section 701 of Pub. L. 94-579, set out as a note under section 1701 of
Title 43, Public Lands.
Section Referred to in Other Sections
This section is referred to in title 10 sections 7421, 7435.
