Source: https://www.law.cornell.edu/uscode/text/43/1353
Timestamp: 2017-04-24 17:15:30
Document Index: 88409012

Matched Legal Cases: ['§ 1353', '§\u202f1353', '§\u202f27', '§\u202f208', '§\u202f751', '§\u202f717', 'art 203', 'art 252', 'art 552', 'art 55930', 'art 560', 'art 1201', 'art 1202', 'art 1203', 'art 1206', 'art 1207', 'art 1208', 'art 1212', 'art 1218', 'art 1241', 'art 1243']

43 U.S. Code § 1353 - Federal purchase and disposition of oil and gas | US Law | LII / Legal Information Institute
§ 1353.
Federal purchase and disposition of oil and gas
The United States shall have the right to purchase not to exceed 16⅔ per centum by volume of the oil and gas produced pursuant to a lease issued or maintained in accordance with this subchapter, at the regulated price, or, if no regulated price applies, at the fair market value at the well head of the oil and gas saved, removed, or sold, except that any oil or gas obtained by the United States as royalty or net profit share shall be credited against the amount that may be purchased under this subsection.
Title to any royalty, net profit share, or purchased oil or gas may be transferred, upon request, by the Secretary to the Secretary of Defense, to the Administrator of the General Services Administration, or to the Secretary of Energy, for disposal within the Federal Government.
The Secretary, except as provided in this subsection, may offer to the public and sell by competitive bidding for not more than its regulated price, or, if no regulated price applies, not less than its fair market value, any part of the oil (A) obtained by the United States pursuant to any lease as royalty or net profit share, or (B) purchased by the United States pursuant to subsection (a)(2) of this section.
Whenever, after consultation with the Secretary of Energy, the Secretary determines that small refiners do not have access to adequate supplies of oil at equitable prices, the Secretary may dispose of any oil which is taken as a royalty or net profit share accruing or reserved to the United States pursuant to any lease issued or maintained under this subchapter, or purchased by the United States pursuant to subsection (a)(2) of this section, by conducting a lottery for the sale of such oil, or may equitably allocate such oil among the competitors for the purchase of such oil, at the regulated price, or if no regulated price applies, at its fair market value. The Secretary shall limit participation in any allocation or lottery sale to assure such access and shall publish notice of such allocation or sale, and the terms thereof, at least thirty days in advance. Such notice shall include qualifications for participation, the amount of oil to be sold, and any limitation in the amount of oil which any participant may be entitled to purchase.
The Secretary may only sell or otherwise dispose of oil described in paragraph (1) of this subsection in accordance with any provision of law, or regulations issued in accordance with such provisions, which provide for the Secretary of Energy to allocate, transfer, exchange, or sell oil in amounts or at prices determined by such provision of law or regulations.
Except as provided in paragraph (2) of this subsection, the Secretary, pursuant to such terms as he determines, many [1] offer to the public and sell by competitive bidding for not more than its regulated price, or, if no regulated price applies, not less than its fair market value any part of the gas (A) obtained by the United States pursuant to a lease as royalty or net profit share, or (B) purchased by the United States pursuant to subsection (a)(2) of this section.
Whenever, after consultation with and advice from the Secretary of Energy, the Federal Energy Regulatory Commission determines that an emergency shortage of natural gas is threatening to cause severe economic or social dislocation in any region of the United States and that such region can be serviced in a practical, feasible, and efficient manner by royalty, net profit share, or purchased gas obtained pursuant to the provisions of this section, the Secretary of the Interior may allocate or conduct a lottery for the sale of such gas, and shall limit participation in any allocation or lottery sale of such gas to any person servicing such region, but he shall not sell any such gas for more than its regulated price, or, if no regulated price applies, less than its fair market value. Prior to selling or allocating any gas pursuant to this subsection, the Secretary shall consult with the Federal Energy Regulatory Commission.
(1) the term “regulated price” means the highest price—
at which oil many 1 be sold pursuant to the Emergency Petroleum Allocation Act of 1973 [2] [15 U.S.C. 751 et seq.] and any rule or order issued under such Act;
at which natural gas may be sold to natural-gas companies pursuant to the Natural Gas Act [15 U.S.C. 717 et seq.], any other Act, regulations governing natural gas pricing, or any rule or order issued under any such Act or any such regulations; or
at which either Federal oil or gas may be sold under any other provision of law or rule or order thereunder which sets a price (or manner for determining a price) for oil or gas; and
the term “small refiner” has the meaning given such term by Small Business Administration Standards 128.3–8(d) and (g), as in effect on September 18, 1978, or as there-after revised or amended.
(Aug. 7, 1953, ch. 345, § 27, as added Pub. L. 95–372, title II, § 208, Sept. 18, 1978, 92 Stat. 666.)
[1]  So in original. Probably should be “may”.[2]  See References in Text note below.
The Emergency Petroleum Allocation Act of 1973, referred to in subsec. (e)(1)(A), is Pub. L. 93–159, Nov. 27, 1973, 87 Stat. 628, as amended, which was classified generally to chapter 16A (§ 751 et seq.) of Title 15, Commerce and Trade, and was omitted from the Code pursuant to section 760g of Title 15, which provided for the expiration of the President’s authority under that chapter on Sept. 30, 1981.
The Natural Gas Act, referred to in subsec. (e)(1)(B), is act June 21, 1938, ch. 556, 52 Stat. 821, as amended, which is classified generally to chapter 15B (§ 717 et seq.) of Title 15. For complete classification of that Act to the Code, see section 717w of Title 15 and Tables.
30 CFR - Mineral Resources30 CFR Part 203 - RELIEF OR REDUCTION IN ROYALTY RATES30 CFR Part 252 - OUTER CONTINENTAL SHELF (OCS) OIL AND GAS INFORMATION PROGRAM30 CFR Part 552 - OUTER CONTINENTAL SHELF (OCS) OIL AND GAS INFORMATION PROGRAM30 CFR Part 55930 CFR Part 560 - OUTER CONTINENTAL SHELF OIL AND GAS LEASING30 CFR Part 1201 - GENERAL30 CFR Part 1202 - ROYALTIES30 CFR Part 1203 - RELIEF OR REDUCTION IN ROYALTY RATES30 CFR Part 1206 - PRODUCT VALUATION30 CFR Part 1207 - SALES AGREEMENTS OR CONTRACTS GOVERNING THE DISPOSAL OF LEASE PRODUCTS30 CFR Part 1208 - SALE OF FEDERAL ROYALTY OIL30 CFR Part 1212 - RECORDS AND FILES MAINTENANCE30 CFR Part 1218 - COLLECTION OF ROYALTIES, RENTALS, BONUSES, AND OTHER MONIES DUE THE FEDERAL GOVERNMENT30 CFR Part 1241 - PENALTIES30 CFR Part 1243 - SUSPENSIONS PENDING APPEAL AND BONDING - OFFICE OF NATURAL RESOURCES REVENUE