An Act to provide for the leasing of oil and gas interests in certain lands owned by the United States in the State of Texas
PL 86-576 (H.R.8740), enacted 07/05/1960

74 S T A T . ] 
PUBLIC LAW 86-576~JULY 5, 1960 
313 
Treasury for Federal income tax purposes as applicable to such vessel; 
(D) that such vessel shall remain documented under the laws of the 
United States for a period of at least five years after the date of 
the exchange, or twenty years from the date of its construction, 
whichever is the later date; and (E) that the foregoing condi-
tions respecting requisition or acquisition of ownership by the 
United States and documentation shall run with the title to such vessel 
and be binding on all owners thereof. Any other conditions respect-
ing purchase or requisition by the United States heretofore applicable 
by statute to any traded-out vessel are hereby made inapplicable to 
such vessel. 
"(6) Neither subsection (e) of this section, nor the nontaxable 
exchange provisions of the Internal Revenue Code, shall apply to the 
exchange of vessels under this subsection. 
"(7) Any repairs or reconversion necessary at the time of the 
exchange to place the traded-out vessel in class and prepare it for 
commercial operation shall be performed in a shipyard within the 
continental United States. 
"(8) The owner of the traded-in vessel, at his own expense and in 
a manner satisfactory to the Secretary of Commerce, shall (A) effect 
deactivation and preparation of the traded-in vessel and its equip-
ment for storage or layup; (B) make delivery of such vessel and its 
equipment at a location designated by the Secretary of Commerce; 
and (C) execute a bond, with one or more approved sureties, condi-
tioned upon indemnifying the United States from all loss resulting 
from any lien against such vessel existing at the time of the exchange. 
"(9) No tanker vessel shall be traded out under the provisions of 
this subsection." 
Approved July 5, 1960. 
Public Law 86-576 
AN ACT 
July 5, 1960 
To provide for the leasing of oil and gas interests in certain lands owned by the 
[H. R. 8740] 
United States in the State of Texas. 
g a s 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled,. That the Secretary in^rVstT"*^ 
of the Interior is authorized to act on behalf of the United States in '"Leasing. 
providing for the exploration, development and leasing of the oil and 
gas deposits in any lands owned by the United States in the State of 
Texas to which articles 5367 and 5368 of the Revised Civil Statutes 
(1925) of said State are applicable and which are not excluded or 
excepted from the provisions of the Mineral Leasing Act for Acquired 
Lands (61 Stat. 913, 30 U.S.C. 351 and the following) by section 3 
thereof. Sec' ions 2-4 and 6-10, both inclusive, of the Mineral Leasing ^^^^^^ ^^ ^-^^^' 
Act for Acquired Lands ^all apply to leases entered into, or proposed 
" * 
to be entered into, under this Act. Neither the proviso to the fourth 
paragraph of section 17 of the Mineral Leasing Act (41 Stat. 443), 
as amended (30 U.S.C. 226) nor any other provision of law which 
would have the effect of depriving the State af Texas of the amounts 
to which it is entitled under section 5368 of its Revised Civil Statutes 
shall api)ly to any lease entered into, or proposed to be entered into, 
under this Act, and every lessee shall be required by the Secretary to 
pay to said State the amounts provided in said section 5368. 
Approved July 5, 1960.