Mineral Leasing Act -- Potash

Page 87

TITLE 30—MINERAL LANDS AND MINING

(Apr. 17, 1926, ch. 158, § 6, 44 Stat. 302; July 16,
1932, ch. 498, 47 Stat. 701.)
CODIFICATION
Section was not enacted as part of act Feb. 25, 1920,
ch. 85, 41 Stat. 437, known as the Mineral Leasing Act,
which comprises this chapter.
AMENDMENTS
1932—Act July 16, 1932, substituted ‘‘States of Louisiana and New Mexico’’ for ‘‘State of Louisiana’’.

§ 283

CODIFICATION
Section was not enacted as part of act Feb. 25, 1920,
ch. 85, 41 Stat. 437, known as the Mineral Leasing Act,
which comprises this chapter.

§ 283. Lands containing valuable deposits not
covered by permits or leases; authority to
lease; acreage; conditions; renewals; exemptions from rentals and royalties; suspension
of operations

SUBCHAPTER IX—POTASH
§ 281. Prospecting permits for chlorides, sulphates, carbonates, borates, silicates, or nitrates of potassium; authorization; acreage;
lands affected
The Secretary of the Interior is hereby authorized, under such rules and regulations as he
may prescribe, to grant to any qualified applicant a prospecting permit which shall give the
exclusive right to prospect for chlorides, sulphates, carbonates, borates, silicates, or nitrates of potassium in lands belonging to the
United States for a period of not exceeding two
years: Provided, That the area to be included in
such a permit shall not exceed two thousand five
hundred and sixty acres of land in reasonably
compact form: Provided further, That the prospecting provisions of this subchapter shall not
apply to lands and deposits in or adjacent to
Searles Lake, California, which lands may be
leased by the Secretary of the Interior under the
terms and provisions of this subchapter.
(Feb. 7, 1927, ch. 66, § 1, 44 Stat. 1057.)
REFERENCES IN TEXT
This subchapter, referred to in text, was in the original ‘‘this Act’’, meaning act Feb. 7, 1927, ch. 66, 44 Stat.
1057, as amended, which enacted this subchapter,
amended sections 181 and 193 of this title, and repealed
subchapter VII (§ 141 et seq.) of chapter 3 of this title.
For complete classification of this Act to the Code, see
Tables.
CODIFICATION
Section was not enacted as part of act Feb. 25, 1920,
ch. 85, 41 Stat. 437, known as the Mineral Leasing Act,
which comprises this chapter.

§ 282. Leases to permittees of lands showing valuable deposits; royalty
Upon showing to the satisfaction of the Secretary of the Interior that valuable deposits of
one of the substances enumerated in this subchapter has been discovered by the permittee
within the area covered by his permit, and that
such land is chiefly valuable therefor, the permittee shall be entitled to a lease for any or all
of the land embraced in the prospecting permit,
at a royalty of not less than 2 per centum of the
quantity or gross value of the output of potassium compounds and other related products, except sodium, at the point of shipment to market, such lease to be taken in compact form by
legal subdivisions of the public land surveys, or
if the land be not surveyed, by survey executed
at the cost of the permittee in accordance with
regulations prescribed by the Secretary of the
Interior.
(Feb. 7, 1927, ch. 66, § 2, 44 Stat. 1057.)

Lands known to contain valuable deposits
enumerated in this subchapter and not covered
by permits or leases shall be held subject to
lease by the Secretary of the Interior through
advertisement, competitive bidding, or such
other methods as he may by general regulations
adopt, and in such areas as he shall fix, not exceeding two thousand five hundred and sixty
acres; all leases to be conditioned upon the payment by the lessee of such royalty as may be
fixed in the lease, not less than 2 per centum of
the quantity or gross value of the output of potassium compounds and other related products,
except sodium, at the point of shipment to market, and the payment in advance of a rental of
25 cents per acre for the first calendar year or
fraction thereof; 50 cents per acre for the second,
third, fourth, and fifth years, respectively; and
$1 per acre per annum thereafter during the continuance of the lease, such rental for any year
being credited against royalties accruing for
that year. Any lease issued under this subchapter shall be for a term of twenty years and
so long thereafter as the lessee complies with
the terms and conditions of the lease and upon
the further condition that at the end of each
twenty-year period succeeding the date of the
lease such reasonable adjustment of the terms
and conditions thereof may be made therein as
may be prescribed by the Secretary of the Interior unless otherwise provided by law at the expiration of such periods. Leases shall be conditioned upon a minimum annual production or
the payment of a minimum royalty in lieu
thereof, except when production is interrupted
by strikes, the elements, or casualties not attributable to the lessee. The Secretary of the Interior may permit suspension of operations
under any such leases when marketing conditions are such that the leases cannot be operated except at a loss. The Secretary upon application by the lessee prior to the expiration of
any existing lease in good standing shall amend
such lease to provide for the same tenure and to
contain the same conditions, including adjustment at the end of each twenty-year period succeeding the date of said lease, as provided for in
this subchapter. In the discretion of the Secretary of the Interior the area involved in any
lease resulting from a prospecting permit may
be exempt from any rental in excess of 25 cents
per acre for twenty years succeeding its issue,
and the production of potassium compounds
under such a lease may be exempt from any royalty in excess of the minimum prescribed in this
subchapter for the same period.
(Feb. 7, 1927, ch. 66, § 3, 44 Stat. 1057; June 3, 1948,
ch. 379, § 9, 62 Stat. 292.)

TITLE 30—MINERAL LANDS AND MINING

§ 284

CODIFICATION
Section was not enacted as part of act Feb. 25, 1920,
ch. 85, 41 Stat. 437, known as the Mineral Leasing Act,
which comprises this chapter.

Page 88

omitted from this section as executed to section 193 of
this title.
Section was not enacted as part of act Feb. 25, 1920,
ch. 85, 41 Stat. 437, known as the Mineral Leasing Act,
which comprises this chapter.

AMENDMENTS
1948—Act June 3, 1948, increased renewal term from
ten to twenty years, provided for reasonable adjustment of terms, provided minimum conditions, and permitted suspension of operations under certain conditions.

§ 284. Lands containing coal or other minerals in
addition to potassium deposits; issuance of
prospecting permits and leases; covenants in
potassium leases
Prospecting permits or leases may be issued
under the provisions of this subchapter for deposits of potassium in public lands, also containing deposits of coal or other minerals, on condition that such other deposits be reserved to the
United States for disposal under appropriate
laws: Provided, That if the interests of the Government and of the lessee will be subserved
thereby, potassium leases may include covenants providing for the development by the lessee of chlorides, sulphates, carbonates, borates,
silicates, or nitrates of sodium, magnesium, aluminum, or calcium, associated with the potassium deposits leased, on terms and conditions
not inconsistent with the sodium provisions of
subchapter VII of this chapter: Provided further,
That where valuable deposits of mineral now
subject to disposition under the general mining
laws are found in fissure veins on any of the
lands subject to permit or lease under this subchapter, the valuable minerals so found shall
continue subject to disposition under the said
general mining laws notwithstanding the presence of potash therein.
(Feb. 7, 1927, ch. 66, § 4, 44 Stat. 1058.)
REFERENCES IN TEXT
The sodium provisions of subchapter VII of this chapter, referred to in text, was in the original ‘‘the sodium
provisions of the Act of February 25, 1920 (Forty-first
Statutes at Large, page 437)’’, which means sections 23
to 25 of act Feb. 25, 1920, ch. 85, 41 Stat. 447, which are
classified to subchapter VII (§ 261 et seq.) of this chapter.
CODIFICATION
Section was not enacted as part of act Feb. 25, 1920,
ch. 85, 41 Stat. 437, known as the Mineral Leasing Act,
which comprises this chapter.

§ 285. Laws applicable
The general provisions of sections 182 to 184,
185 to 188, 189 to 192, 193, and 194 1 of this title,
are made applicable to permits and leases under
this subchapter.
(Feb. 7, 1927, ch. 66, § 5, 44 Stat. 1058; Aug. 8, 1946,
ch. 916, § 11, 60 Stat. 957.)
REFERENCES IN TEXT
Section 194 of this title, referred to in text, was repealed by Pub. L. 89–554, § 8(a), Sept. 6, 1966, 80 Stat. 644.

AMENDMENTS
1946—Act Aug. 8, 1946, struck out reference to section
181 of this title.
SAVINGS PROVISION
See note set out under section 181 of this title.

§ 286. Disposition of royalties and rents from potassium leases
All money received from royalties and rentals
from any lease issued or renewed under the provisions of subchapter VII of chapter 3 of this
title, shall be paid into, reserved, and appropriated as follows: 521⁄2 per centum to the Reclamation Fund, 10 per centum to the Treasury of
the United States as miscellaneous receipts, and
371⁄2 per centum shall be paid by the Secretary of
the Treasury, after the expiration of each fiscal
year, to the State within the boundaries of
which the leased lands or deposits are or were
located, such money to be used by such State or
subdivision thereof for the construction and
maintenance of public roads or for the support
of schools or other public educational institutions, as the legislature of the State may direct.
(Feb. 7, 1927, ch. 66, § 6, 44 Stat. 1058; June 1, 1948,
ch. 356, 62 Stat. 279.)
REFERENCES IN TEXT
Subchapter VII of chapter 3, referred to in text, was
in the original ‘‘the Act entitled ‘An Act to authorize
exploration for and disposition of potassium’ approved
October 2, 1917’’, meaning act Oct. 2, 1917, ch. 62, 40
Stat. 297, which was classified to subchapter VII (§ 141
et seq.) of chapter 3 of this title and which was repealed
by act Feb. 7, 1927, ch. 66, § 6, 44 Stat. 1058.
CODIFICATION
Section is composed of the second sentence of section
6 of act Feb. 7, 1927, as added by act June 1, 1948. The
first sentence of section 6 repealed former sections 141
to 152 of this title and did not affect pending applications for permits or leases filed prior to Jan. 1, 1926, or
valid claims existent on Feb. 7, 1927, and thereafter
maintained in compliance with the laws under which
initiated, which claims could be perfected under such
laws, including discovery.
Section was not enacted as part of act Feb. 25, 1920,
ch. 85, 41 Stat. 437, known as the Mineral Leasing Act,
which comprises this chapter.

§ 287. Extension of prospecting permits
Any prospecting permit issued under this subchapter may be extended by the Secretary of the
Interior for a period not exceeding two years,
upon a showing of satisfactory cause.
(Feb. 7, 1927, ch. 66, § 7, as added May 7, 1932, ch.
174, 47 Stat. 151.)

CODIFICATION
Provision of this section that section 193 of this title
was amended to include deposits of potassium was
1 See

References in Text note below.

CODIFICATION
Section was not enacted as part of act Feb. 25, 1920,
ch. 85, 41 Stat. 437, known as the Mineral Leasing Act,
which comprises this chapter.

Page 89

TITLE 30—MINERAL LANDS AND MINING

CHAPTER 4—LEASE OF GOLD, SILVER, OR
QUICKSILVER
DEPOSITS
WHEN
TITLE
CONFIRMED BY COURT OF PRIVATE LAND
CLAIMS
Sec.

291.

292.
293.

Lease of gold, silver, or quicksilver deposits
on lands title to which confirmed by Court
of Private Land Claims.
Royalties and rentals; disposition.
Duties of Secretary of the Interior.

§ 291. Lease of gold, silver, or quicksilver deposits on lands title to which confirmed by
Court of Private Land Claims
All gold, silver, or quicksilver deposits, or
mines or minerals of the same on lands embraced within any land claim confirmed or hereafter confirmed by decree of the Court of Private Land Claims, and which did not convey the
mineral rights to the grantee by the terms of
the grant, and to which such grantee has not become otherwise entitled in law or in equity, may
be leased by the Secretary of the Interior to the
grantee, or to those claiming through or under
him, for a period of twenty years, with the preferential right in the lessee to renew the same
for successive periods of ten years, upon such
reasonable terms and conditions as may be prescribed by the Secretary of the Interior, unless
otherwise provided by law at the time of the expiration of such periods.
(June 8, 1926, ch. 503, § 1, 44 Stat. 710.)
§ 292. Royalties and rentals; disposition
For the privilege of mining or extracting the
gold, silver, or quicksilver deposits in the land
covered by such lease, the lessee shall pay to the
United States a royalty, which shall not be less
than 5 per centum nor more than 121⁄2 per centum of the net value of the output of the gold,
silver, or quicksilver at the mine, due and payable at the end of each month succeeding that of
the extraction of the minerals from the mine.
All moneys received from royalties and rentals
under the provisions of this chapter shall be deposited in the Treasury of the United States,
and disposed of in the same manner as rentals
and royalties under the provisions of section 191
of this title.
(June 8, 1926, ch. 503, § 2, 44 Stat. 710.)
§ 293. Duties of Secretary of the Interior
The Secretary of the Interior is hereby authorized to perform any and all acts and to
make such rules and regulations as may be necessary and proper for the purpose of carrying
this chapter into full force and effect.

§ 304

Sec.

305.
306.

Royalties under lease.
Rules and regulations.

§ 301. Authorization for lease of oil and gas deposits; by and to whom leased
Whenever the Secretary of the Interior shall
deem it to be consistent with the public interest
he is authorized to lease deposits of oil and gas
in or under lands embraced in railroad or other
rights of way acquired under any law of the
United States, whether the same be a base fee or
mere easement: Provided, That, except as hereinafter authorized, no lease shall be executed hereunder except to the municipality, corporation,
firm, association, or individual by whom such
right of way was acquired, or to the lawful successor, assignee, or transferee of such municipality, corporation, firm, association, or individual.
(May 21, 1930, ch. 307, § 1, 46 Stat. 373.)
§ 302. Assignment of lease; subletting
The right conferred by this chapter may, subject to the approval of the Secretary of the Interior, be assigned or sublet by the owner thereof
to any corporation, firm, association, or individual.
(May 21, 1930, ch. 307, § 2, 46 Stat. 373.)
§ 303. Conditions precedent to award of lease;
preferred class; bidding
Prior to the award of any lease under section
301 of this title, the Secretary of the Interior
shall notify the owner or lessee of adjoining
lands and allow him a reasonable time, to be
fixed in the notice given, within which to submit an offer or bid of the amount or percentage
of compensatory royalty that such owner will
agree to pay for the extraction through wells on
his or its adjoining land, of the oil or gas under
and from such adjoining right of way, and at the
same time afford the holder of the railroad or
other right of way a like opportunity within the
same time to submit its bid or offer as to the
amount or percentage of royalty it will agree to
pay, if a lease for the extraction of the oil and
gas deposits under the right of way be awarded
to the holder of such right of way. In case of
competing offers by the said parties in interest,
the Secretary shall award the right to extract
the oil and gas to the bidder, duly qualified,
making the offer in his opinion most advantageous to the United States. In case but one bid
or offer is received after notice duly given, he
may, in his discretion, award the right to extract the oil and gas to such bidder.
(May 21, 1930, ch. 307, § 3, 46 Stat. 374.)

(June 8, 1926, ch. 503, § 3, 44 Stat. 710.)

§ 304. Provisions authorized in lease

CHAPTER 5—LEASE OF OIL AND GAS DEPOSITS IN OR UNDER RAILROADS AND
OTHER RIGHTS-OF-WAY

Any lease granted by the Secretary of the Interior pursuant to this chapter may, in the discretion of said Secretary, contain a provision
giving the lessee the right, with the approval of
said Secretary, to shut down the operation of
any well or wells the operation of which has become unprofitable, to resume operations when
such resumption may result in profit, and to
abandon any well or wells that cease to produce
oil and/or gas in paying quantities.

Sec.

301.
302.
303.
304.

Authorization for lease of oil and gas deposits; by and to whom leased.
Assignment of lease; subletting.
Conditions precedent to award of lease; preferred class; bidding.
Provisions authorized in lease.