§ 1335. — Validation and maintenance of prior leases.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 43USC1335]
TITLE 43--PUBLIC LANDS
CHAPTER 29--SUBMERGED LANDS
SUBCHAPTER III--OUTER CONTINENTAL SHELF LANDS
Sec. 1335. Validation and maintenance of prior leases
(a) Requirements for validation
The provisions of this section shall apply to any mineral lease
covering submerged lands of the outer Continental Shelf issued by any
State (including any extension, renewal, or replacement thereof
heretofore granted pursuant to such lease or under the laws of such
State) if--
(1) such lease, or a true copy thereof, is filed with the
Secretary by the lessee or his duly authorized agent within ninety
days from August 7, 1953, or within such further period or periods
as provided in section 1336 of this title or as may be fixed from
time to time by the Secretary;
(2) such lease was issued prior to December 21, 1948, and would
have been on June 5, 1950, in force and effect in accordance with
its terms and provisions and the law of the State issuing it had the
State had the authority to issue such lease;
(3) there is filed with the Secretary, within the period or
periods specified in paragraph (1) of this subsection, (A) a
certificate issued by the State official or agency having
jurisdiction over such lease stating that it would have been in
force and effect as required by the provisions of paragraph (2) of
this subsection, or (B) in the absence of such certificate, evidence
in the form of affidavits, receipts, canceled checks, or other
documents that may be required by the Secretary, sufficient to prove
that such lease would have been so in force and effect;
(4) except as otherwise provided in section 1336 of this title
hereof, all rents, royalties, and other sums payable under such
lease between June 5, 1950, and August 7, 1953, which have not been
paid in accordance with the provisions thereof, or to the Secretary
or to the Secretary of the Navy, are paid to the Secretary within
the period or periods specified in paragraph (1) of this subsection,
and all rents, royalties, and other sums payable under such lease
after August 7, 1953, are paid to the Secretary, who shall deposit
such payments in the Treasury in accordance with section 1338 of
this title;
(5) the holder of such lease certifies that such lease shall
continue to be subject to the overriding royalty obligations
existing on August 7, 1953;
(6) such lease was not obtained by fraud or misrepresentation;
(7) such lease, if issued on or after June 23, 1947, was issued
upon the basis of competitive bidding;
(8) such lease provides for a royalty to the lessor on oil and
gas of not less than 12\1/2\ per centum and on sulphur of not less
than 5 per centum in amount or value of the production saved,
removed, or sold from the lease, or, in any case in which the lease
provides for a lesser royalty, the holder thereof consents in
writing, filed with the Secretary, to the increase of the royalty to
the minimum herein specified;
(9) the holder thereof pays to the Secretary within the period
or periods specified in paragraph (1) of this subsection an amount
equivalent to any severance, gross production, or occupation taxes
imposed by the State issuing the lease on the production from the
lease, less the State's royalty interest in such production, between
June 5, 1950, and August 7, 1953 and not heretofore paid to the
State, and thereafter pays to the Secretary as an additional royalty
on the production from the lease, less the United States' royalty
interest in such production, a sum of money equal to the amount of
the severance, gross production, or occupation taxes which would
have been payable on such production to the State issuing the lease
under its laws as they existed on August 7, 1953;
(10) such lease will terminate within a period of not more than
five years from August 7, 1953 in the absence of production or
operations for drilling, or, in any case in which the lease provides
for a longer period, the holder thereof consents in writing, filed
with the Secretary, to the reduction of such period so that it will
not exceed the maximum period herein specified; and
(11) the holder of such lease furnishes such surety bond, if
any, as the Secretary may require and complies with such other
reasonable requirements as the Secretary may deem necessary to
protect the interests of the United States.
(b) Conduct of operations under lease; sulphur rights
Any person holding a mineral lease, which as determined by the
Secretary meets the requirements of subsection (a) of this section, may
continue to maintain such lease, and may conduct operations thereunder,
in accordance with (1) its provisions as to the area, the minerals
covered, rentals and, subject to the provisions of paragraphs (8)-(10)
of subsection (a) of this section, as to royalties and as to the term
thereof and of any extensions, renewals, or replacements authorized
therein or heretofore authorized by the laws of the State issuing such
lease, or, if oil or gas was not being produced in paying quantities
from such lease on or before December 11, 1950, or if production in
paying quantities has ceased since June 5, 1950, or if the primary term
of such lease has expired since December 11, 1950, then for a term from
August 7, 1953 equal to the term remaining unexpired on December 11,
1950, under the provisions of such lease or any extensions, renewals, or
replacements authorized therein, or heretofore authorized by the laws of
such State, and (2) such regulations as the Secretary may under section
1334 of this title prescribe within ninety days after making his
determination that such lease meets the requirements of subsection (a)
of this section: Provided, however, That any rights to sulphur under any
lease maintained under the provisions of this subsection shall not
extend beyond the primary term of such lease or any extension thereof
under the provisions of this subsection unless sulphur is being produced
in paying quantities or drilling, well reworking, plant construction, or
other operations for the production of sulphur, as approved by the
Secretary, are being conducted on the area covered by such lease on the
date of expiration of such primary term or extension: Provided further,
That if sulphur is being produced in paying quantities on such date,
then such rights shall continue to be maintained in accordance with such
lease and the provisions of this subchapter: Provided further, That, if
the primary term of a lease being maintained under this subsection has
expired prior to August 7, 1953 and oil or gas is being produced in
paying quantities on such date, then such rights to sulphur as the
lessee may have under such lease shall continue for twenty-four months
from August 7, 1953 and as long thereafter as sulphur is produced in
paying quantities, or drilling, well working, plant construction, or
other operations for the production of sulphur, as approved by the
Secretary, are being conducted on the area covered by the lease.
(c) Nonwaiver of United States claims
The permission granted in subsection (b) of this section shall not
be construed to be a waiver of such claims, if any, as the United States
may have against the lessor or the lessee or any other person respecting
sums payable or paid for or under the lease, or respecting activities
conducted under the lease, prior to August 7, 1953.
(d) Judicial review of determination
Any person complaining of a negative determination by the Secretary
of the Interior under this section may have such determination reviewed
by the United States District Court for the District of Columbia by
filing a petition for review within sixty days after receiving notice of
such action by the Secretary.
(e) Lands beneath navigable waters
In the event any lease maintained under this section covers lands
beneath navigable waters, as that term is used in the Submerged Lands
Act [43 U.S.C. 1301 et seq.], as well as lands of the outer Continental
Shelf, the provisions of this section shall apply to such lease only
insofar as it covers lands of the outer Continental Shelf.
(Aug. 7, 1953, ch. 345, Sec. 6, 67 Stat. 465.)
References in Text
The Submerged Lands Act, referred to in subsec. (e), is act May 22,
1953, ch. 65, 67 Stat. 29, which is classified generally to subchapters
I (Sec. 1301 et seq.) and II (Sec. 1311 et seq.) of this chapter. For
complete classification of this Act to the Code, see Short Title note
set out under section 1301 of this title and Tables.
Transfer of Functions
Functions of Secretary of the Interior to promulgate regulations
under this subchapter which relate 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 sections 1331, 1336, 1337, 1353,
1356a of this title.
