A bill to facilitate and encourage the production of oil from tar sand and other hydrocarbon deposits.
PL 97-78 (H.R.3975), enacted 11/16/1981

95 STAT. 1070 
PUBLIC LAW 97-78—NOV. 16, 1981 
Public Law 97-78 
97th Congress 
Nov. 16, 1981 
[H.R. 3975] 
Oil production. 
Mineral land 
leeising. 
Definitions. 
An Act 
Royalties. 
To facilitate and encourage the production of oil from tar sand and other hydrocar-
bon deposits. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled. That (1) section 1 (30 
U.S.C. 181), sections 21 (a) and (c) (30 U.S.C. 241 (a) and (c)), and 
section 34 (30 U.S.C. 182) of the Mineral Lands Leasing Act of 1920, as 
amended, are amended by deleting "native asphalt, solid and semi-
solid bitumen, and bituminous rock (including oil-impregnated rock 
or sands from which oil is recoverable only by special treatment after 
the deposit is mined or quarried)" and by inserting in lieu thereof 
"gilsonite (including all vein-t^e solid hydrocarbons),", except that 
in the first sentence of section 21(a) the word "and" should be 
inserted before "gilsonite" and the comma after the parenthesis 
should be eliminated in section 21. 
(2) Section 27(k) of such Act (30 U.S.C. 184(k)) is amended by 
deleting "native asphalt, solid and semisolid bitumen, bituminous 
rock," and by inserting in lieu thereof "gilsonite (including all vein-
t3rpe solid hydrocarbons),". 
(3) Section 39 of such Act (30 U.S.C. 209) is amended bv inserting 
"gilsonite (including all vein-type solid hydrocarbons), after "oil 
shale". 
(4) Section 1 of such Act (30 U.S.C. 181) is further amended by 
adding after the first paragraph the following new paragraphs: 
"The term 'oil' shall embrace all nongaseous hydrocarbon sub-
stances other than those substances leasable as coal, oil shale, or 
gilsonite (including all vein-type solid hydrocarbons). 
"The term 'combined hydrocarbon lease' shall refer to a lease 
issued in a special tar sand area pursuant to section 17 after the date 
of enactment of the Combined Hydrocarbon Leasing Act of 1981. 
"The term 'special tar sand area' means (1) an area designated by 
the Secretary of the Interior's orders of November 20, 1980 (45 FR 
76800-76801) and January 21, 1981 (46 FR 6077-6078) as containing 
substantial deposits of 
tar sand.". 
(5) Section 27(d)(1) of such Act (30 U.S.C. 184(dXl)) is amended by 
inserting before the period at the end of the first sentence the 
following: ^'Provided, however. That acreage held in special tar sand 
areas shall not be chargeable against such State limitations.". 
(6Xa) Section 17(b) of such Act (30 U.S.C. 226(b)) is amended by 
inserting "(1)" after "(b)" and adding a new subsection to read as 
follows: 
"(2) If the lands to be leased are within a special tar sand area, they 
shall be leased to the highest responsible qualified bidder by competi-
tive bidding under general regulations in units of not more than five 
thousand one hundred and twenty acres, which shall be as nearly 
compact as possible, upon the payment by the lessee of such bonus as 
may be accepted by the Secretary. Royalty shall be 12V2 per centum 
in amount or value of production removed or sold from the lease. 
PUBLIC LAW 97-78—NOV. 16, 1981 
95 STAT. 1071 
"Tar sand." 
Application 
filing. 
subject to section 17(k)(l)(c). The Secretary may lease such additional ^^f^-
lands in special tar sand areas as may be required in support of any 
operations necessary for the recovery of tar sands.". 
(b) Section 17(c) of such Act (30 U.S.C. 226(c)) is amended by deleting 
"within any known geological structure of a producing oil or gas 
field," and inserting in lieu thereof "subject to leasing under subsec-
tion (b),". 
(c) Section 17(e) of such Act (30 U.S.C. 226(e)) is amended by 
inserting before the period at the end of the first sentence the 
following: ": Provided, however, That competitive leases issued in 
special tar sand areas shall also be for a primary term often years.". 
(7) Section 39 of such Act (30 U.S.C. 209) is amended by adding after 
the period following the first sentence: "Provided, however. That in 
order to promote development and the maximum production of tar 
sand, at the request of the lessee, the Secretary shall review, prior to 
commencement of commercial operations, the royalty rates estab-
lished in each combined hydrocarbon lease issued in special tar sand 
areas. For purposes of this section, the term 'tar sand' means any 
consolidated or unconsolidated rock (other than coal, oil shale, or 
gilsonite) that either: (1) contains a hydrocarbonaceous material with 
a gas-free viscosity, at original reservoir temperature, greater than 
10,000 centipoise, or (2) contains a hydrocarbonaceous material and is 
produced by mining or quarrying.". 
(8) Section 17 of such Act (30 U.S.C. 226) is amended by adding at 
the end thereof the following new subsection: 
"(k)(l)(A) The owner of (1) an oil and gas lease issued prior to the 
date of enactment of the Combined Hydrocarbon Leasing Act of 1981 
or (2) a valid claim to any hydrocarbon resources leasable under this 
section based on a mineral location made prior to January 21,1926, 
and located within a special tar sand area shall be entitled to convert 
such lease or claim to a combined hydrocarbon lease for a primary 
term of ten years upon the filing of an application within two years 
from the date of enactment of that Act containing an acceptable plan 
of operations which assures reasonable protection of the environment 
and diligent development of those resources requiring enhanced 
recovery methods of development or mining. For purposes of conver-
sion, no claim shall be deemed invalid solely because it was located as 
a placer location rather than a lode location or vice versa, notwith-
standing any previous adjudication on that issue. 
"(B) The Secretary shall issue final regulations to implement this Regulations 
section within six months of the effective date of this Act. If any oil 
and gas lease eligible for conversion under this section would other-
wise expire after the date of this Act and before six months following 
the issuance of implementing regulations, the lessee may preserve 
his conversion right under such lease for a period ending six months 
after the issuance of implementing regulations by filing with the 
Secretary, before the expiration of the lease, a notice of intent to file 
an application for conversion. Upon submission of a complete plan of 
operations in substantial compliance with the regulations promul-
gated by the Secretary for the filing of such plans, the Secretary shall 
suspend the running of the term of any oil and gas lease proposed for 
conversion until the plan is finally approved or disapproved. The 
Secretary shall act upon a proposed plan of operations within fifteen 
months of its submittal. 
"(C) When an existing oil and gas lease is converted to a combined Royalties. 
hydrocarbon lease, the royalty shall be that provided for in the 
original oil and gas lease and for a converted mining claim, 12 V
a per 
95 STAT. 1072 
PUBLIC LAW 97-78—NOV. 16, 1981 
centum in amount or value of production removed or sold from the 
lease. 
"(2) Except as provided in this section, nothing in the Combined 
Hydrocarbon Leasing Act of 1981 shall be construed to diminish or 
increase the rights of any lessee under any oil and gas lease issued 
prior to the enactment of such Act.". 
(9)(a) Section 2 of the Mineral Leasing Act for Acquired Lands (30 
U.S.C. 351) is amended by adding at the end thereof: "The term 'oil' 
shall embrace all nongaseous hydrocarbon substances other than 
those leasable as coal, oil shale, or gilsonite (including all vein-type 
solid hydrocarbons).". 
(b) Section 3 of such Act (30 U.S.C. 352) is amended by inserting 
"gilsonite (including all vein-type solid hydrocarbons), after "oil 
shale". 
30 use 181 
(10) Nothing in this Act shall affect the taxable status of production 
"o^- 
from tar sand under the Crude Oil Windfall Profit Tax Act of 1980 
26 use 1 note. 
(Public Law 96-223), reduce the depletion allowance for production 
from tar sand, or otherwise affect the existing tax status applicable to 
such production. 
Prohibition. 
(H) No provision of this Act shall apply to national parks, national 
??tY^^ ^^^ 
monuments, or other lands where mineral leasing is prohibited by 
law. The Secretary of the Interior shall apply the provisions of this 
Act to the Glen Csmyon National Recreation Area, and to any other 
units of the national park system where mineral leasing is permitted, 
in accordemce with any applicable minerals management plan if the 
Secretary finds that there will be no resulting significant adverse 
impacts on the administration of such area, or on other contiguous 
units of 
the national park system. 
Approved November 16, 1981. 
note. 
LEGISLATIVE HISTORY—H.R. 3975: 
HOUSE REPORT No. 97-174 (Comm. on Interior and Insular Affairs). 
SENATE REPORT No. 97-250 (eomm. on Energy and Natural Resources). 
CONGRESSIONAL RECORD, Vol. 127 (1981): 
July 14, considered and passed House. 
Oct. 29, considered and passed Senate.