An Act to authorize the Secretary of the Interior to prevent terminations of oil and gas leases in cases where there is a nominal deficiency in the rental payment, and to authorize him to reinstate under some conditions oil and gas leases terminated by op
PL 91-245 (S.1193), enacted 05/09/1970

76 Stat. 943. 
206 
PUBLIC LAW 91-245-MAY 12, 1970 
[84 STAT. 
Public Law 91-245 
May 12, 1970 
^^ ACT 
[s- 1193] 
To authorize the Secretary of the Interior to prevent terminations of oil and gas 
leases in oases wiiere there is a nominal deficiency in the rental payment, and 
to authorize him to reinstate under some conditions oil and gas leases termi-
nated by operation of law for failure to pay rental timely. 
Be it enacted hy the Senate and House of Representatives 
of the 
Actl^a^mend'ments^ United Statcs of America in Congress assembled, That section 31(b) 
^
Q 
of the Mineral Leasing Act of 1920 (41 Stat. 460), as amended (30 
76 stat^ 943. ' 
U.S.C. 188 (b)), is amended by changing the period at the end thereof 
to a colon and adding the following: '•'•Provided, That if the rental 
payment due under a lease is paid on or before the anniversary date 
but either (1) the amount of the payment has been or is hereafter 
deficient and the deficiency is nominal, as determined by the Secretary 
by regulation, or (2) the payment was calculated in accordance with 
the acreage figure stated in the lease, or in any decision affecting the 
lease, or made in accordance with a bill or decision which has been ren-
dered by him and such figure, bill, or decision is found to be in error 
resulting in a deficiency, such lease shall not automatically terminate 
unless (1) a new lease had been issued prior to the date of this Act or 
(2) the lessee fails to pay the deficiency within the period prescribed 
in a notice of deficiency sent to him by the Secretary." 
ie?iir"?efr 
SEC. 2. Section 31(c) of the Mineral Leasing Act of 1920 (41 Stat. 
statement. 
450), as amended (30 U.S.C. 188(c)), is amended to read as follows: 
"(c) Where any lease has been or is hereafter terminated automati-
cally by operation of law under this section for failure to pay on or 
before the anniversary date the full amount of rental due, but such 
rental w^as paid on or tendered within tw-enty days thereafter, and it 
is showui to the satisfaction of the Secretary of the Interior that such 
failure was either justifiable or not due to a lack of reasonable dili-
gence on the part of the lessee, the Secretary may reinstate the lease 
if— 
"(1) a petition for reinstatement, together with the required 
rental, including back rental accruing from the date of termina-
tion of the lease, is filed with the Secretary; and 
"(2) no valid lease has been issued affecting any of the lands 
covered by the terminated lease prior to the filing of said peti-
tion. The Secretary shall not issue any new lease affecting any 
of the lands covered by such terminated lease for a reasonable 
E
eriod, as determined m accordance with regulations issued by 
im. In any case where a reinstatement of a terminated lease 
is granted under this subsection and the Secretary finds that the 
reinstatement of such lease will not afford the lessee a reasonable 
opportunity to continue operations under the lease, the Secre-
tary may, at his discretion, extend the term of such lease for such 
period as he deems reasonable: Provided, That (A) such exten-
sion shall not exceed a period equivalent to the time be^nning 
when the lessee knew or should have known of the termination 
and ending on the date the Secretary grants such petition; (B) 
such extension shall not exceed a j)eriod equal to the unexpired 
portion of the lease or any extension thereof remaining at the 
date of termination; and (C) when the reinstatement occurs after 
the expiration of the term or extension thereof the lease may be 
extended from the date the Secretary grants the petition." 
Approved May 12, 1970.