Federal Oil and Gas Royalty Management Act of 1982
PL 97-451 (H.R.5121), enacted 01/12/1983

PUBLIC LAW 97-451—JAN. 12, 1983 
96 STAT. 2447 
Public Law 97-451 
97th Congress 
An Act 
To ensure that all oil and gas originated on the public lands and on the Outer 
Jan. 12, 1983 
C!ontinental Shelf are properly accounted for under the direction of the Secretary 
rHR 51211 
of the Interior, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled. 
Federal Oil and 
Gas Royalty 
SHORT TITLE AND TABLE OF CONTENTS 
£^^^1982°*^ 
SECTION 1. This Act may be cited as the "Federal Oil and Gas 30 use I70i 
Royalty Management Act of 1982". 
"o^. 
TABLE OF CONTENTS 
Sec. 1. Short title and table of contents. 
Sec. 2. Findings and purposes. 
Sec. 3. Definitions. 
TITLE I—FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT 
Sec. 101. Duties of the Secretary. 
Sec. 102. Duties of lessees, operators, and motor vehicle transporters. 
Sec. 103. Required recordkeeping. 
Sec. 104. Prompt disbursement of royalties. 
Sec. 105. Explanation of payments. 
Sec. 106. Liabilities and bonding. 
Sec. 107. Hearings and investigations. 
Sec. 108. Inspections. 
Sec. 109. Civil penalties. 
Sec. 110. Criminal penalties. 
Sec. 111. Royalty interest, penalties and pa}anents. 
Sec. 112. Ii^junction and specific enforcement authority. 
Sec. 113. Rewards. 
Sec. 114. Noncompetitive oil and gas lease royalty rates. 
TITLE II—STATES AND INDIAN TRIBES 
Sec. 201. Application of title. 
Sec. 202. Cooperative agreements. 
Sec. 203. Information. 
Sec. 204. State suits under Federal law. 
Sec. 205. Delegation to States. 
Sec. 206. Shared civil penalties. 
TITLE III—GENERAL PROVISIONS 
Sec. 301. Secretarial authority. 
Sec. 302. Reports. 
Sec. 303. Study of other minerals. 
Sec. 304. Relation to other laws. 
Sec. 305. Effective date. 
Sec. 306. Funding. 
Sec. 307. Statute of limitations. 
Sec. 308. Expanded royalty obligations. 
Sec. 309. Severability. 
TITLE rV-REINSTATEMENT OF LEASES AND CONVERSION OF 
UNPATENTED OIL PLACER CLAIMS 
Sec. 401. Amendment of Mineral Lands Leasing Act of 1920. 
96 STAT. 2448 
PUBLIC LAW 97-451—JAN. 12,1983 
FINDINGS AND PURPOSES 
30 use 1701. 
SEC. 2. (a) Congress finds that— 
(1) the Secretary of the Interior should enforce effectively and 
uniformly existing regulations under the mineral leasing laws 
providing for the inspection of production activities on lease 
sites on Federal and Indian lands; 
(2) the system of accounting with respect to royalties and 
other payments due and owing on oil and gas produced from 
such lease sites is archaic and inadequate; 
(3) it is essential that the Secretary initiate procedures to 
improve methods of accounting for such royalties and payments 
and to provide for routine inspection of activities related to the 
production of oil and gas on such lease sites; and 
(4) the Secretary should aggressively carry out his trust re-
sponsibility in the administration of Indian oil and gas. 
(b) It is the purpose of this Act— 
(1) to clarify, reaffirm, expand, and define the responsibilities 
and obligations of lessees, operators, and other persons involved 
in transportation or sale of oil and gas from the Federal and 
Indian lands and the Outer Continental Shelf; 
(2) to clarify, reaffirm, expand and define the authorities and 
responsibilities of the Secretary of the Interior to implement 
and maintain a royalty management system for oil and gas 
legises on Federal lands, Indian lands, and the Outer Continen-
tal Shelf; 
(3) to require the development of enforcement practices that 
ensure the prompt and proper collection and disbursement of oil 
and gas revenues owed to the United States and Indian lessors 
and those inuring to the benefit of States; 
(4) to fulfill the trust responsibility of the United States for 
the administration of Indian oil and gas resources; and 
(5) to effectively utilize the capabilities of the States and 
Indian tribes in developing and maintaining an efficient and 
effective Federal royalty management system. 
DEFINITIONS 
30 use 1702. 
SEC. 3. For the purposes of this Act, the term— 
(1) "Federal land" means all land and interests in land owned 
by the United States which are subject to the mineral leasing 
laws, including mineral resources or mineral estates reserved to 
the United States in the conveyance of a surface or nonmineral 
estate; 
(2) "Indian allottee" means any Indian for whom land or an 
interest in land is held in trust by the United States or who 
holds title subject to Federal restriction against alienation; 
(3) "Indian lands" means any lands or interest in lands of an 
Indian tribe or an Indian allottee held in trust by the United 
States or which is subject to Federal restriction against alien-
ation, including mineral resources and mineral estates reserved 
to an Indian tribe or an Indian allottee in the conveyance of a 
surface or nonmineral estate, except that such term does not 
include any lands subject to the provisions of section 3 of the 
Act of June 28,1906 (34 Stat. 539); 
(4) "Indian tribe" means any Indian tribe, band, nation, 
pueblo, community, rancheria, colony, or other group of Indi-
PUBLIC LAW 97-451—JAN. 12, 1983 
96 STAT. 2449 
ans, including the Metlakatla Indian Community of Annette 
Island Reserve, for which any land or interest in land is held by 
the United States in trust or which is subject to Federal restric-
tion against alienation; 
(5) "lease" means any contract, profit-share arrangement, 
joint venture, or other agreement issued or approved by the 
United States under a mineral leasing law that authorizes 
exploration for, extraction of, or removal of oil or gas; 
(6) "lease site" means any lands or submerged lands, includ-
ing the surface of a severed mineral estate, on which explora-
tion for, or extraction or removal of, oil or gas is authorized 
pursuant to a lease; 
(7) "lessee" means any person to whom the United States, an 
Indian tribe, or an Indian allottee, issues a lease, or any person 
who has been assigned an obligation to make royalty or other 
payments required by the lease; 
(8) "mineral leasing law" means any Federal law adminis-
tered by the Secretary authorizing the disposition under lease of 
oil or gas; 
(9) "oil or gas" means any oil or gas originating from, or 
allocated to, the Outer Continental Shelf, Federal, or Indian 
lands; 
(10) "Outer Continental Shelf has the same meaning as 
provided in the Outer Continental Shelf Lands Act (Public Law 
95-372); 
43 use 1801 
(11) "operator" means any person, including a lessee, who has 
"ote. 
control of, or who manages operations on, an oil and gas lease 
site on Federal or Indian lands or on the Outer Continental 
Shelf; 
(12) "person" means any individual, firm, corporation, associ-
ation, partnership, consortium, or joint venture; 
(13) "production" means those activities which take place for 
the removal of oil or gas, including such removal, field oper-
ations, transfer of oil or gas off the lease site, operation monitor-
ing, maintenance, and workover drilling; 
(14) "royalty" means any payment based on the value or 
volume of production which is due to the United States or an 
Indian tribe or an Indian allottee on production of oil or gas 
from the Outer Continental Shelf, Federal, or Indian lands, or 
any minimum royalty owed to the United States or an Indian 
tribe or an Indian allottee under any provision of a lease; 
(15) "Secretary" means the Secretary of the Interior or his 
designee; and 
(16) "State" means the several States of the Union, the Dis-
trict of Columbia, Puerto Rico, the territories and possessions of 
the United States, and the Trust Territory of the Pacific Islands. 
TITLE I—FEDERAL ROYALTY MANAGEMENT AND 
ENFORCEMENT 
DUTIES OF THE SECRETARY 
SEC. 101. (a) The Secretary shall establish a comprehensive inspec- Comprehensive 
tion, collection and fiscal and production accounting and auditing accounting and 
system to provide the capability to accurately determine oil and gas |J USC^ITH. 
royalties, interest, fines, penalties, fees, deposits, and other pay-
96 STAT. 2450 
PUBLIC LAW 97-451—JAN. 12, 1983 
Lease accounts, 
audits. 
Contract 
authority. 
Availability of 
Secretary's 
material. 
ments owed, and to collect and account for such amounts in a timely 
manner, 
(b) The Secretary shall— 
(1) establish procedures to ensure that authorized and prop-
erly identified representatives of the Secretary will inspect at 
least once annusdly each lease site producing or expected to 
produce significant quantities of oil or gas in any year or which 
has a history of noncompliance with applicable provisions of law 
or regulations; and 
(2) establish and maintain adequate programs providing for 
the training of all such authorized representatives in methods 
and techniques of inspection and accounting that will be used in 
the implementation of this Act. 
(cXD The Secretary shall audit and reconcile, to the extent practi-
cable, all current and past lease accounts for leases of oil or gas and 
take appropriate actions to make additional collections or refunds as 
warranted. The Secretary shall conduct audits and reconciliations of 
lease accounts in conformity with the business practices and record-
keeping systems which were required of the lessee by the Secretary 
for the period covered by the audit. The Secretary shall give priority 
to auditing those lease accounts identified by a State or Indian tribe 
as having si^ificant potential for underpayment. The Secretary 
may also audit accounts and records of selected lessees and opera-
tors. 
(2) The Secretary may enter into contracts or other appropriate 
arrangements with independent certified public accountants to un-
dertake audits of accounts and records of any lessee or operator 
relating to the lease of oil or gas. Selection of such independent 
certified public accountants shall be by competitive bidding in 
accordance with the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 252), except that the Secretary may not enter 
into a contract or other arrangement with any independent certified 
public accountant to audit any lessee or operator where such lessee 
or operator is a primary audit client of such certified public 
accountant. 
(3) All books, accounts, financial records, reports, files, and other 
papers of the Secretary, or used by the Secretary, which are reason-
ably necessaiy to facilitate the audits required under this section 
shall be made available to any person or governmental entity 
conducting audits under this Act. 
DUTIES OP LESSEES, OPERATORS, AND MOTOR VEHICLE TRANSPORTERS 
30 use 1712. 
SEC. 102. (a) A lessee-
C
D who is required to make any royalty or other pa3mient 
under a lease or under the mineral leasing laws, shall make 
such payments in the time and manner as may be specified by 
the Secretary; and 
(2) shall notify the Secretary, in the time and manner as may 
be specified by the Secretary, of any gissignment the lessee may 
have made of the obligation to make any royalty or other 
payment under a lease or under the mineral leasing laws. 
O
t
)
) All operator shall— 
(1) develop and comply with a site security plan designed to 
protect the oil or gas produced or stored on an onshore le£ise site 
from theft, which plan shall conform with such minimum stand-
PUBLIC LAW 97-451—JAN. 12, 1983 
96 STAT. 2451 
ards as the Secretary may prescribe by rule, taking into account 
the variety of circumstances at lease sites; 
(2) develop and comply with such minimum site security 
measures as the Secretary deems appropriate to protect oil or 
gas produced or stored on a lease site or on the Outer Continen-
tal Shelf from theft; and 
(3) not later than the 5th business day after any well begins 
production an3rwhere on a lease site or allocated to a lease site, 
or resumes production in the case of a well which has been off of 
production for more than 90 days, notify the Secretary, in the 
manner prescribed by the Secretary, of the date on which such 
production has begun or resumed. 
(cXD Any person engaged in transporting by motor vehicle any oil 
from any lease site, or allocated to any such lease site, shall carry, 
on his person, in his vehicle, or in his immediate control, documen-
tation showing, at a minimum, the amount, origin, and intended 
first destination of the oil. 
(2) Any person engaged in transporting any oil or gas by pipeline 
from any lease site, or allocated to any lease site, on Federal or 
Indian lands shall maintain documentation showing, at a minimum, 
amount, origin, and intended first destination of such oil or gas. 
REQUIRED RECORDKEEPING 
SEC. 103. (a) A lessee, operator, or other person directly involved in 30 use 1713. 
developing, producing, transporting, purchasing, or selling oil or gas 
subject to this Act through the point of first sale or the point of 
royalty computation, whichever is later, shall establish and main-
tain any records, make any reports, and provide any information 
that the Secretary may, by rule, reasonably require for the purposes 
of implementing this Act or determining compliance with rules or 
orders under tms Act. Upon the request of any officer or employee 
duly designated by the Secretary or any State or Indian tribe 
conducting an audit or investigation pursuant to this Act, the 
appropriate records, reports, or information which may be required 
by this section shall be meide available for inspection and duplica-
tion by such officer or employee. State, or Indian tribe. 
(b) Records required by the Secretaiy with respect to oil and gas 
leases from Federal or Indian lands or the Outer Continental Shelf 
shall be maintained for 6 years after the records are generated 
unless the Secretary notifies the record holder that he has initiated 
an audit or investigation involving such records and that such 
records must be maintained for a longer period. In any case when an 
audit or investigation is underway, records shall be maintained 
until the Secretary releases the record holder of the obligation to 
maintain such records. 
Record, report or 
information 
inspection and 
duplication. 
PROMPT DISBURSEMENT OF ROYALTIES 
SEC. 104. (a) Section 35 of the Mineral Lands Leasing Act of 1920 
(approved February 25,1920; 41 Stat. 437; 30 U.S.C. 191) is amended 
by deleting "as soon as practicable after March 31 and September 30 
of each year" and by adding at the end thereof "Pajnnents to States 
under this section with respect to any moneys received by the 
United States, shall be made not later than the last business day of 
the month in which such moneys are warranted by the United 
States Treasury to the Secretary as having been received, except for 
97-200 O—84—pt. 2 
35 : QL3 
96 STAT. 2452 
PUBLIC LAW 97-451—JAN. 12, 1983 
any portion of such moneys which is under challenge and placed in a 
suspense account pending resolution of a dispute. Such warrants 
shall be issued by the United States Treasury not later than 10 days 
after receipt of such moneys by the Treasury. Moneys placed in a 
suspense account which are determined to be payable to a State 
shall be made not later than the last business day of the month in 
which such dispute is resolved. Any such amount placed in a 
suspense account pending resolution shall bear interest until the 
dispute is resolved.', 
Indian land 
(b) Deposits of any royalty funds derived from the production of oil 
royalty funds, 
or gas from, or allocated to, Indian lands shall be made by the 
30^SC 1
7
1
4 
Secretary to the appropriate Indian account at the earliest practica-
ble date after such funds are received by the Secretary but in no 
case later than the last business day of the month in which such 
funds are received. 
30 use 1
7
1
4 
(c) The provisions of this section shall apply with respect to 
^°^- 
payments received by the Secretary after October 1,1983, unless the 
Secretary, by rule, prescribes an earlier effective date. 
EXPLANATION OF PAYMENTS 
30 use 1715. 
SEC. 105. (a) When any payment (including amounts due from 
receipt of any royalty, bonus, interest charge, fine, or rental) is made 
by the United States to a State with respect to any oil or gas lease on 
vHi :>».u 08 Federal lands or is deposited in the appropriate Indian account on 
behalf of an Indian tribe or Indian allottee with respect to any oil 
and gas lease on Indian lands, there shall be provided, together with 
such pajnnent, a description of the type of payment being made, the 
period covered by such pavment, the source of such payment, pro-
duction amounts, the roysuty rate, unit value and such other infor-
mation as may be agreed upon by the Secretary and the recipient 
w J 
t T ^
^ 
State, Indian tribe, or Indian allottee. 
(b) This section shall take effect with respect to payments made 
after October 1, 1983, unless the Secretary, by rule, prescribes an 
earlier effective date. 
LIABILITIES AND BONDING 
80 use 1716. 
SEC. 106. A person (including any agent or employee of the United 
States and any independent contractor) authorised to collect, re-
ceive, account for, or otherwise handle any moneys payable to, or 
received by, the Department of the Interior which are derived from 
the sale, lease, or other disposal of any oil or gas shall be— 
(1) liable to the United States for any losses caused by any 
intentional or reckless action or inaction of such individual with 
respect to such moneys; and 
(2) in the case of an independent contractor, required as the 
Secretary deems necessary to maintain a bond commensurate 
with the amount of money for which such individual could be 
liable to the United States. 
HEARINGS AND INVESTIGATIONS 
30 use 1717. 
SEC. 107. (a) In carrying out his duties under this Act the Secre-
tary may conduct any investigation or other inquiry necessary and 
appropriate and may conduct, after notice, any hearing or audit, 
necessary and appropriate to carrying out his duties under this Act. 
PUBLIC LAW 97-451—JAN. 12, 1983 
96 STAT. 2453 
SEC. 108. (aXD On any lease site on Federal or Indian lands, any 
authorized and properly identified representative of the Secretary 
may stop and inspect any motor vehicle that he has probable cause 
to believe is carrying oil from a lease site on Federal or Indian lands 
or allocated to such a lease site, for the purpose of determining 
whether the driver of such vehicle has documentation related to 
such oil as required by law. 
(2) Any authorized and properly identified representative of the 
Secretary, accompanied by any appropriate law enforcement officer, 
or an appropriate law enforcement officer alone, may stop and 
inspect any motor vehicle which is not on a lease site if he has 
probable cause to believe the vehicle is canying oil from a lease site 
on Federal or Indian lands or allocated to such a lease site. Such 
inspection shall be for the purpose of determining whether the 
driver of such vehicle has the documentation required by law. 
(b) Authorized and properly identified representatives of the Sec-
retary may without advance notice, enter upon, travel across and 
inspect lease sites on Federal or Indian lands and may obtain from 
the operator immediate access to secured facilities on such lease 
sites, for the purpose of making any inspection or investigation for 
determining whether there is compliance with the requirements of 
the mineral leasing laws and this Act. The Secretary shall develop 
guidelines setting forth the coverage and the frequency of such 
inspections. 
Affidavits. 
Depositions. 
In connection with any such hearings, inquiry, investigation, or 
audit, the Secretary is also authorized where reasonably necessary— 
(1) to require by special or general order, any person to submit 
in writing such affidavits and answers to questions as the 
Secretary may reasonably prescribe, which submission shall be 
made within such reasonable period and under oath or other-
wise, as may be necessary; 
(2) to administer oaths; 
I 
(3) to require by subpena the attendance and testimony of Subpena 
I 
witnesses and the production of all books, papers, production 
I 
and financial records, documents, matter, and materials, as the 
1 
Secretary may request; 
(4) to order testimony to be taken by deposition before any 
person who is designated by the Secretary and who has the 
power to administer oaths, and to compel testimony and the 
1 
production of evidence in the same manner as authorized under 
paragraph (3) of this subsection; and 
V 
(5) to pay witnesses the same fees and mileage as are paid in 
like circumstances in the courts of the United States, 
(b) In case of refusal to obey a subpena served upon any person 
under this section, the district court of the United States for any 
district in which such person is found, resides, or transacts business, 
upon application by the Attorney General at the request of the 
Secretary and after notice to such person, shall have jurisdiction to 
issue an order requiring such person to appear and give testimony 
before the Secretaiy or to appear and produce documents before the 
Secret£uy. Any failure to obey such order of the court may be 
punished by such court as contempt thereof and subject to a penalty 
ofup to $10,000 a day. 
INSPECTIONS 
Refusal to obey 
subpena. 
30 u s e 1718. 
96 STAT. 2454 
PUBLIC LAW 97-451—JAN. 12, 1983 
(c) For the purpose of making any inspection or investigation 
under this Act, the Secretary shall have the same right to enter 
upon or travel across any lease site as the lessee or operator has 
acquired by purchase, condemnation, or otherwise. 
Noncompliance 
with 
requirements or 
inspections. 
30 u s e 1719. 
False 
information. 
Stolen or 
unlawfully 
removed oil and 
gas. 
CIVIL PENALTIES 
SEC. 109. (a) Any person who— 
(1) after due notice of violation or after such violation has 
been reported under subparagraph (A), fails or refuses to 
comply with any requirements of this Act or any mineral 
leasing law, any rule or regulation thereunder, or the terms of 
any lease or permit issued thereunder; or 
(2) fails to permit inspection authorized in section 108 or fails 
to notify the Secretary of any assignment under section 102(a)(2) 
shall be liable for a penalty of up to $500 per violation for each day 
such violation continues, dating from the date of such notice or 
report. A penalty under this subsection may not be applied to any 
person who is otherwise liable for a violation of paragraph (1) if: 
(A) the violation was discovered and reported to the Secretary 
or his authorized representative by the liable person and cor-
rected within 20 days sifter such report or such longer time as 
the Secretary may agree to; or 
(B) after the due notice of violation required in paragraph (1) 
has been given to such person by the Secretary or his authorized 
representative, such person has corrected the violation within 
20 days of such notification or such longer time as the Secretary 
may agree to. 
(b) If corrective action is not taken within 40 days or a longer 
period as the Secretary may agree to, after due notice or the report 
referred to in subsection (a)(1), such person shall be liable for a civil 
penalty of not more than $5,000 per violation for each day such 
violation continues, dating from the date of such notice or report. 
(c) Any person who— 
(1) knowingly or willfully fails to make any royalty pa3niient 
by the date as specified by statute, regulation, order or terms of 
the lease; 
(2) fails or refuses to permit lawful entry, inspection, or audit; 
or 
(3) knowingly or willfully fails or refuses to comply with 
subsection 102(bX3), 
shall be liable for a peneilty of up to $10,000 per violation for each 
day such violation continues. 
(d) Any person who— 
(1) knowingly or willfully prepares, maintains, or submits 
false, inaccurate, or misleading reports, notices, affidavits, 
records, data, or other written information; 
(2) knowingly or willfully takes or removes, transports, uses 
or diverts any oil or gas from any lease site without having valid 
legal authority to do so; or 
(3) purchases, accepts, sells, transports, or conveys to another, 
any oil or gas knowing or having reason to know that such oil or 
gas was stolen or unlawfully removed or diverted, 
shall be liable for a penalty of up to $25,000 per violation for each 
day such violation continues. 
PUBLIC LAW 97-451—JAN. 12, 1983 
96 STAT. 2455 
Review of 
administrative 
record. 
(e) No penalty under this section shall be assessed until the person 
Hearing. 
charged with a violation has been given the opportunity for a 
hearing on the record. 
(f) The amount of any penalty under this section, as finally 
determined may be deducted from any sums owing by the United 
States to the person charged. 
(g) On a case-by-case basis the Secretary may compromise or 
reduce civil penalties under this section. 
(h) Notice under this subsection (a) shall be by personal service by 
an authorized representative of the Secretary or by registered mail. 
Any person may, in the manner prescribed by the Secretary, desig-
nate a representative to receive any notice under this subsection. 
(i) In determining the amount of such penalty, or whether it 
should be remitted or reduced, and in what amount, the Secretary 
shall state on the record the reasons for his determinations. 
(j) Any person who has requested a hearing in accordance with 
subsection (e) within the time the Secretary has prescribed for such 
a hearing and who is aggrieved by a final order of the Secretary 
under this section may seek review of such order in the United 
States district court for the judicial district in which the violation 
allegedly took place. Review by the district court shall be only on 
the administrative record and not de novo. Such an action shall be 
barred unless filed within 90 days after the Secretary's final order, 
(k) If any person fails to pay an assessment of a civil penalty 
under this Act— 
(1) after the order making the assessment has become a final 
order and if such person does not file a petition for judicial 
review of the order in accordance with subsection (j), or 
(2) after a court in an action brought under subsection (j) has 
entered a final judgment in favor of the Secretary, 
the court shall have jurisdiction to award the amount assessed plus 
interest from the date of the expiration of the 90-day period referred 
to in subsection (j). Judgment by the court shall include an order to 
pay. 
(1) No person shall be liable for a civil penalty under subsection (a) 
or (b) for failure to pay any rentel for any lease automatically 
terminated 
pursuant to section 31 of the Mineral Leasing Act of 
1920. 
30 use 188. 
CRIMINAL PENALTIES 
SEC. 110. Any person who commits an act for which a civil penalty 
30 use 1720. 
is provided in section 109(d) shall, upon conviction, be punished by a 
fine of not more than $50,000, or by imprisonment for not more than 
2 years, or both. 
Failure to pay 
assessments. 
ROYALTY INTEREST, PENALTIES AND PAYMENTS 
SEC. H I . (a) In the case of oil and gas leases where royalty 
30 use 1721. 
payments are not received by the Secretary on the date that such 
payments are due, or are less than the amount due, the Secretary 
shall charge interest on such late payments or underpayments at 
the rate applicable under section 6621 of the Internal Revenue Code 
of 1954. In the case of an underpayment or partial payment, interest 
26 use 6621. 
shall be computed and charged only on the amount of the deficiency 
and not on the total amount due. 
96 STAT. 2456 
PUBLIC LAW 97-451—JAN. 12, 1983 
26 u s e 6621. 
Interest deposit 
to Indian 
account. 
Indian royalty 
funds, late 
deposit. 
26 u s e 6621. 
15 u s e 751 note. 
\i^'i 
30 u s e 191. 
(b) Any payment made by the Secretary to a State under section 
35 of the Mineral Lands Leasing Act of 1920 (30 U.S.C. 191) and any 
other pa5nnent made by the Secretary to a State from any oil or gas 
royalty received by the Secretary which is not paid on the date 
required under section 35 shall include an interest charge computed 
at the rate applicable under section 6621 of the Internal Revenue 
Code of 1954. 
(c) All interest charges collected under this Act or under other 
applicable laws because of nonpayment, late payment or underpay-
ment of royalties due and owing an Indian tribe or an Indian 
allottee shall be deposited to the same account as the royalty with 
respect to which such interest is paid. 
(d) Any deposit of royalty funds made by the Secretary to an 
Indian account which is not made by the date required under 
subsection 104(b) shall include an interest charge computed at the 
rate applicable under section 6621 of the Internal Revenue Code of 
1954. 
(e) Notwithstanding any other provision of law, no State will be 
assessed for any interest or penalties found to be due against the 
Secretary for failure to comply with the Emergency Petroleum 
Allocation Act of 1973 or regulation of the Secretary of Energy 
thereunder concerning crude oil certification or pricing with respect 
to crude oil taken by the Secretary in kind as royalty. Any State 
share of an overcharge, resulting from such failure to comply, shall 
be assessed against moneys found to be due and owing to such State 
as a result of audits of royalty accounts for transactions which took 
place prior to the date of the enactment of this Act except that if 
after the completion of such audits, sufficient moneys have not been 
found due and owing to any State, the State shall be assessed the 
balance of that State s share of the overcharge. 
(f) Interest shall be charged under this section only for the 
number of days a payment is late. 
(g) The first sentence of section 35 of the Act of February 25, 1920 
is amended by inserting "including interest charges collected under 
the Federal Oil and Gas Royalty Management Act of 1982" between 
"royalties" and "and". 
eivil action by 
Attorney 
Generjil. 
30 u s e 1722. 
.mi o« 
INJUNCTION AND SPECIFIC ENFORCEMENT AUTHORITY 
SEC. 112. (a) In addition to any other remedy under this Act or any 
mineral leasing law, the Attorney General of the United States or 
his designee may bring a civil action in a district court of the United 
States, which shall have jurisdiction over such actions— 
(1) to restrain any violation of this Act; or 
(2) to compel the taking of any action required by or under 
this Act or any mineral leasing law of the United States. 
(b) A civil action described in subsection (a) may be brought only 
in the United States district court for the judicial district wherein 
the act, omission, or transaction constituting a violation under this 
Act or any other mineral leasing law occurred, or wherein the 
defendant is found or transacts business. 
REWARDS 
30 use 1723. 
SEC. 113. Where amounts representing royalty or other payments 
owed to the United States with respect to any oil and gas lease on 
Federal lands or the Outer Continental Shelf are recovered pursu-
PUBLIC LAW 97-451—JAN. 12, 1983 
96 STAT. 2457 
ant to any action taken by the Secretary under this Act as a result 
of information provided to the Secretary by any person, the Secre-
tary is authorized to pay to such person an amount equal to not 
more than 10 percent of such recovered amounts. The preceding 
sentence shall not apply to information provided by an officer or 
employee of the United States, an officer or employee of a State or 
Indian tribe acting pursuant to a cooperative agreement or delega-
tion under this Act, or any person acting pursuant to a contract 
authorized by this Act. 
NONCOMPETITIVE OIL AND GAS LEASE ROYALTY RATES 
SEC. 114. The Secretary is directed to conduct a thorough study of 
the effects of a change in the royalty rate under section 17(c) of the 
Mineral Leasing Act of 1920 on: (a) the exploration, development, or 
production of oil or gas; and (b) the overall revenues generated by 
such change. Such study shall be completed and submitted to Con-
gress within six months after the date of enactment of this Act. 
TITLE II—STATES AND INDIAN TRIBES 
»•*' 
APPUCATION OF TITLE 
SEC. 201. This title shall apply only with respect to oil and gas 
leases on Federal lands or Indian lands. Nothing in this title shall be 
construed to apply to any lease on the Outer Continental Shelf 
Study. 
30 u s e 226. 
Submittal to 
Congress. 
30 u s e 1731. 
COOPERATIVE AGREEMENTS 
SEC. 202. (a) The Secretary is authorized to enter into a coopera- 30 use 1732. 
tive agreement or agreements with any State or Indian tribe to 
share oil or gas royalty management information, to carry out 
inspection, auditing, investigation or enforcement (not including the 
collection of royalties, civil or criminal penalties or other payments) 
activities under this Act in cooperation with the Secretary, and to 
carry out any other activity described in section 108 of this Act. The 
Secretary shall not enter into any such cooperative agreement with 
a State with respect to any such activities on Indian lands, except 
with the permission of the Indian tribe involved. 
(b) Except as provided in section 203, and pursuant to a coopera-
tive agreement— 
(1) each State shall, upon request, have access to all royalty 
accounting information in the possession of the Secretary 
respecting the production, removal, or sale of oil or gas from 
leases on Federal lands within the State; and 
^ '[ ' 
(2) each Indian tribe shall, upon request, have access to all 
royalty accounting information in the possession of the Secre-
tary respecting the production, removal, or sale of oil or gas 
from leases on Indian lands under the jurisdiction of such tribe. 
Information shall be made available under paragraphs (1) and (2) as Information 
soon as practicable after it comes into the possession of the Secre- availability. 
tary. Effective October 1, 1983, such information shall be made Effective date. 
available under paragraphs (1) and (2) not later than 30 days after 
such information comes into the possession of the Secretary. 
(c) Any cooperative agreement entered into pursuant to this sec-
tion shall be in accordance with the provisions of the Federal Grant 
and Cooperative Agreement Act of 1977, and shall contain such 41 use 501 note. 
96 STAT. 2458 
PUBLIC LAW 97-451—JAN. 12, 1983 
terms and conditions as the Secretary deems appropriate and con-
sistent with the purposes of this Act, including, but not limited to, a 
limitation on the use of Federal assistance to those costs which are 
directly required to carry out the agreed upon activities. 
Trade secrets 
and proprietary 
and confidential 
information, 
availability. 
30 use 1733. 
Liability for 
wrongful 
disclosure. 
INFORMATION 
SEC. 203. (a) Trade secrets, proprietary and other confidential 
information shall be made available by the Secretary, pursuant to a 
cooperative agreement, to a State or Indian tribe upon request only 
i
f
— 
(1) such State or Indian tribe consents in writing to restrict 
' ' the dissemination of the information to those who are directly 
involved in an audit or investigation under this Act and who 
have a need to know; 
(2) such State or tribe accepts liability for wrongful disclosure; 
(3) in the case of a State, such State demonstrates that such 
information is essential to the conduct of an audit or investiga-
tion or to litigation under section 204; and 
(4) in the case of an Indian tribe, such tribe demonstrates that 
such information is essential to the conduct of an audit or 
investigation and waives sovereign immunity by express con-
sent for wrongful disclosure by such tribe. 
(b) The United States shall not be liable for the wrongful disclo-
sure by any individual, State, or Indian tribe of any information 
provided to such individual. State, or Indian tribe pursuant to any 
cooperative agreement or a delegation, authorized by this Act. 
(c) Whenever any individual, State, or Indian tribe has obtained 
possession of information pursuant to a cooperative agreement au-
thorized by this section, or any individual or State has obtained 
possession of information pursuant to a delegation under section 
205, the individual shall be subject to the same provisions of law 
with respect to the disclosure of such information as would apply to 
an officer or employee of the United States or of any department or 
agency thereof and the State or Indian tribe shall be subject to the 
same provisions of law with respect to the disclosure of such infor-
mation as would apply to the United States or any department or 
agency thereof. No State or State officer or employee who receives 
trade secrets, proprietary information, or other confidential infor-
mation under this Act may be required to disclose such information 
under State law. 
? . 
STATE SUITS UNDER FEDERAL LAW 
30 use 1734. 
SEC. 204. (aXD A State may commence a civil action under this 
section against any person to recover any royalty, interest, or civil 
penalty which the State believes is due, based upon credible evi-
dence, with respect to any oil and gas lease on Federal lands located 
within the State. 
n 
(2)(A) No action may be commenced under paragraph (1) prior to 
90 days after the State has given notice in writing to the Secretary 
of the payment required. Such 90-day limitation may be waived by 
the Secretary on a case-by-case basis. 
(B) If, within the 90-day period specified in subparagraph (A), the 
Secretary issues a demand for the payment concerned, no action 
may be commenced under paragraph (1) with respect to such pay-
^ n '. ^
> 
ment during a 45-day period after issuance of such demand. If, 
PUBLIC LAW 97-451—JAN. 12, 1983 
96 STAT. 2459 
during such 45-day period, the Secretary receives payment in full, 
no action may be commenced under paragraph (1). 
(C) If the Secretary refers the case to the Attorney General of the 
United States within the 45-day period referred to in subparagraph 
(B) or within 10 business days siter the expiration of such 45-day 
period, no action may be commenced under paragraph (1) if the 
Attorney General, within 45 days after the date of such referral, 
commences, and thereafter diligently prosecutes, a civil action in a 
court of the United States with respect to the pa3nnent concerned. 
(3) The State shall notify the Secretary and the Attorney General 
of the United States of any suit filed by the State under this section. 
(4) A court in issuing any final order in any action brought under 
paragraph (1) may award costs of litigation including reasonable 
attorney and expert witness fees, to any party in such action if the 
court determines such an award is appropriate. 
(b) An action brought under subsection (a) of this section may be 
brought only in a United States district court for the judicial district 
in which the lease site or the leasing activity complained of is 
located. Such district court shall have jurisdiction, without regard to 
the amount in controversy or the citizenship of the parties, to 
require compliance or order pa3nnent in any such action. 
(cXD Notwithstanding any other provision of law, any civil pen-
alty recovered by a State under subsection (a) shall be retained by 
the State and may be expended in such manner and for such 
purposes as the State deems appropriate. 
(2) Any rent, royalty, or interest recovered by a State under 
subsection (a) shall be deposited in the Treasury of the United States 
in the same manner, and subject to the same requirements, as are 
applicable in the case of any rent, royalty, or interest collected by an 
officer or employee of the United States, except that such amounts 
shall be deposited in the Treasury not later than 10 days after 
receipt by the State. 
DELEGATION TO STATES 
SEC. 205. (a) Upon written request of any State, the Secretary is 
authorized to delegate, in accordance with the provisions of this 
section, all or parit of the authorities and responsibilities of the 
Secretary under this Act to conduct inspections, audits, and investi-
gations to any State with respect to all Federal lands or Indian lands 
within the State; except that the Secretary may not undertake such 
a delegation with respect to any Indian lands, except with the 
permission of the Indian tribe allottee involved. 
(b) After notice and opportunity for a hearing, the Secretary is 
authorized to delegate such authorities and responsibilities granted 
under this section as the State has requested, if the Secretary finds 
that— 
(1) it is likely that the State will provide adequate resources to 
achieve the purposes of this Act; 
(2) the State has demonstrated that it will effectively and 
faithfully administer the rules and regulations of the Secretary 
under this Act in accordance with the requirements of subsec-
tions (c) and (d) of this section; and 
(3) such delegation will not create an unreasonable burden on 
any lessee, 
with respect to the Federal lands and Indian lands within the State. 
Notification of 
Secretary and 
Attorney 
General. 
30 u s e 1735. 
Hearing. 
96 STAT. 2460 
PUBLIC LAW 97-451—JAN. 12, 1983 
Regulations. 
Standards. 
Hearing. 
30 u s e 1736. 
'ti^i 
~r»?^iJ Qt) 
(c) The Secretary shall promulgate regulations which define those 
functions, if any, which must be carried out jointly in order to avoid 
duplication of effort, and any delegation to any State must be made 
in accordance with those requirements. 
(d) The Secretary shall by rule promulgate standards and regula-
tions, pertaining to the authorities and responsibilities under sub-
section (a), including standards and regulations pertaining to: 
(1) audits performed; 
(2) records and accounts to be maintained; and 
(3) reporting procedures to be required by States under this 
section. 
Such standards and regulations shall be designed to provide reason-
able assurance that a uniform and effective royalty management 
system will prevail among the States. The records and accounts 
under paragraph (2) shall be sufficient to allow the Secretary to 
monitor the performance of any State under this section. 
(e) If, after notice and opportunity for a hearing, the Secretary 
finds that any State to which any authority or responsibility of the 
Secretary has been delegated under this section is in violation of any 
requirement of this section or any rule thereunder, or that an 
affirmative finding by the Secretary under subsection (b) can no 
longer be made, the Secretary may revoke such delegation. 
(0 The Secretary shall compensate any State for those costs which 
may be necessary to carry out the delegated activities under this 
section. Payment shall be made no less than every quarter during 
the fiscal year. 
SHARED CIVIL PENALTIES 
SEC. 206. An amount equal to 50 per centum of any civil penalty 
collected by the Federal Government under this Act resulting from 
activities conducted by a State or Indian tribe pursuant to a coopera-
tive agreement under section 202 or a State under a delegation 
under section 205, shall be payable to such State or tribe. Such 
amount shall be deducted from any compensation due such State or 
Indian tribe under section 202 or such State under section 205. 
TITLE III—GENERAL PROVISIONS 
Regulations. 
30 u s e 1751. 
Contracts. 
SECRETARIAL AUTHORITY 
SEC. 301. (a) The Secretary shall prescribe such rules and regula-
tions as he deems reasonably necessary to carry out this Act. 
OJ) Rules and regulations issued to implement this Act shall be 
issued in conformity with section 553 of title 5 of the United States 
Code, notwithstanding section 553(a)(2) of that title. 
(c) In addition to entering into cooperative agreements or delega-
tion of authority authorized under this Act, the Secretary may 
contract with such non-Federal Government inspectors, auditors, 
and other persons as he deems necessary to aid in carrying out his 
functions under this Act and its implementation. With respect to his 
auditing and enforcement functions under this Act, the Secretary 
shall coordinate such functions so as to avoid to the maximum 
extent practicable, subjecting lessees, operators, or other persons to 
audits or investigations of the same subject matter by more than one 
auditing or investigating entity at the same time. 
PUBLIC LAW 97-451—JAN. 12, 1983 
96 STAT. 2461 
REPORTS 
SEC. 302. (a) The Secretary shall submit to the Congress an annual 
report on the implementation of this Act. The information to be 
included in the report and the format of the report shall be devel-
oped by the Secretary after consulting with the Committees on 
Interior and Insular Affairs of the House of Representatives and on 
Energy and Natural Resources of the Senate. The Secretary shall 
also report on the progress of the Department in reconciling account 
balances. 
(b) Commencing with fiscal year 1984, the Inspector General of the 
Department of the Interior shall conduct a biennial audit of the 
Federal royalty management system. The Inspector General shall 
submit the results of such audit to the Secretary and to the 
Congress. 
STUDY OF OTHER MINERALS 
SEC. 303. (a) The Secretary shall study the question of the ade-
quacy of royalty management for coal, uranium and other energy 
and nonenergy minerals on Federal and Indian lands. The study 
shall include proposed legislation if the Secretary determines that 
such legislation is necessary to ensure prompt and proper collection 
of revenues owed to the United States, the States and Indian tribes 
or Indian allottees from the sale, lease or other disposal of such 
minerals. 
(b) The study required by subsection (a) of this section shall be 
submitted to Congress not later than one year from the date of the 
enactment of this Act. 
Submittal to 
Congress. 
30 u s e 1752. 
Biennial audit, 
submittal to 
Secretary and 
Congress. 
30 u s e 1752 
note. 
Submittal to 
Congress. 
RELATION TO OTHER LAWS 
SEC. 304. (a) The penalties and authorities provided in this Act are 
supplemental to, and not in derogation of, any penalties or authori-
ties contained in any other provision of law. 
(b) Nothing in this Act shall be construed to reduce the responsi-
bilities of the Secretary to ensure prompt and proper collection of 
revenues from coal, uranium and other energy and nonenergy 
minerals on Federal and Indian lands, or to restrain the Secretary 
from entering into cooperative agreements or other appropriate 
arrangements with States and Indian tribes to share royalty man-
agement responsibilities and activities for such minerals under 
existing authorities. 
(c) Except as expressly provided in subsection 302(b), nothing in 
this Act shall be construed to enlarge, diminish, or otherwise affect 
the authority or responsibility of the Inspector General of the 
Department of the Interior or of the Comptroller General of the 
United States. 
(d) No provision of this Act impairs or affects lands and interests 
in land entrusted to the Tennessee Valley Authority. 
30 u s e 1753. 
>S'S' 
EFFECTIVE DATE 
SEC. 305. The provisions of this Act shall apply to oil and gas 
leases issued before, on, or after the date of the enactment of this 
Act, except that in the case of a lease issued before such date, no 
30 u s e 1701 
note. 
96 STAT. 2462 
PUBLIC LAW 97-451—JAN. 12, 1983 
provision of this Act or any rule or regulation prescribed under this 
Act shall alter the express and specific provisions of such a lease. 
FUNDING 
30 use 1754. 
SEC. 306. Effective October 1,1983, there are hereby authorized to 
be appropriated such sums as may be necessary to carry out the 
provisions of this Act, including such sums as may be necessary for 
the cooperative agreements, contracts, and delegations authorized 
by this Act: Provided, That nothing in this Act shall be construed to 
J 
affect or impair any authority to enter into contracts or make 
pajmients under any other provision of law. 
STATUTE OF UMITATIONS 
30 use 1755. 
SEC. 307. Except in the case of fraud, any action to recover 
penalties under this Act shall be barred unless the action is com-
menced within 6 years after the date of the act or omission which is 
the basis for the action. 
EXPANDED ROYALTY OBUGATIONS 
30 use 1756. 
SEC. 308. Any lessee is liable for royalty payments on oil or gas 
lost or wasted from a lease site when such loss or waste is due to 
negligence on the part of the operator of the lease, or due to the 
failure to comply with any rule or regulation, order or citation 
issued under this Act or any mineral leasing law. 
SEVERABIUTY 
30 use 1757. 
SEC. 309. If any provision of this Act or the applicability thereof to 
any person or circumstances is held invalid, the remainder of this 
Act and the application of such provision to other persons or circum-
stances shall not be Eiffected thereby. 
TITLE IV—REINSTATEMENT OF LEASES AND CONVERSION 
OF UNPATENTED OIL PLACER CLAIMS 
AMENDMENT OF MINERAL LANDS LEASING ACT OF 1920 
SEC. 401. Section 31 of the Mineral Lands Leasing Act of 1920 (30 
U.S.C. 188) is amended by redesignating subsection (d) as subsection 
(j) and by inserting after subsection (c) the following new 
subsections: 
"(d)(1) Where any oil and gas lease issued pursuant to section 17(b) 
30 use 226. 
or section 17(c) of this Act or the Mineral Leasing Act for Acquired 
Lands (30 U.S.C. 351 et seq.), has been, or is hereafter, terminated 
automatically by operation of law under this section for failure to 
pay on or before the anniversary date the full amount of the rental 
due, and such rental is not paid or tendered within twenty days 
thereafter, and it is shown to the satisfaction of the Secretary of the 
Interior that such failure was justifiable or not due to lack of 
reasonable diligence on the part of the lessee, or, no matter when 
the rental is paid after termination, it is shown to the satisfaction of 
the Secretary that such failure was inadvertent, the Secretary may 
reinstate the lease as of the date of termination for the unexpired 
portion of the primary term of the original lease or any extension 
thereof remaining at the date of termination, and so long thereafter 
'M' 
PUBLIC LAW 97-451—JAN. 12, 1983 
96 STAT. 2463 
as oil or gas is produced in pajdng quantities. In any case where a 
lease is reinstated under this subsection and the Secretary finds that 
the reinstatement of such lease (A) occurs after the expiration of 
the primary term or any extension thereof, or (B) will not afford the 
lessee a reasonable opportunity to continue operations under the 
lease, the Secretary may, at his discretion, extend the term of such 
lease for such period as he deems reasonable, but in no event for 
more than two years from the date the Secretary authorizes the 
reinstatement and so long thereafter as oil or gas is produced in 
* 
paving quantities. 
(2) No lease shall be reinstated under paragraph (1) of this 
subsection unless— 
"(A) with respect to any lease that terminated under subsec-
tion (b) of this section prior to enactment of the Federal Oil and 
Gas Rovalty Management Act of 1982: 
^"te> P- 2447. 
(i) the lessee tendered rental prior to enactment of such 
s 
Act and the final determination that the lease terminated 
was made by the Secretary or a court less than three years 
before enactment of such Act, and 
"(id a petition for reinstatement together with the 
required back rental and royalty accruing from the date of 
termination, is filed with the Secretary on or before the one 
hundred and twentieth day after enactment of such Act, or 
"(B) with respect to any lease that terminated under subsec-
tion (b) of this section on or after enactment of the Federal Oil 
and Gas Royalty Management Act of 1982, a petition for rein-
statement together with the required back rental and royalty 
accruing from the date of termination is filed on or before the 
earlier of— 
"(i) sixty days after the lessee receives from the Secretary 
notice of termination, whether by return of check or by any 
other form of actual notice, or 
"(ii) fifteen months after termination of the lease. 
"(e) Any reinstatement under subsection (d) of this section shall be 
Reinstatement 
made only if these conditions are met: 
conditions. 
"(1) no valid lease, whether still in existence or not, shall have 
been issued affecting any of the lands covered by the terminated 
lease prior to the filing of such petition: Provided, however, That 
after receipt of a petition for reinstatement, the Secretary shall 
not issue any new lease affecting any of the lands covered by 
,, , 
such terminated lease for a reasonable period, as determined in 
" 
accordance with regulations issued by him; 
"(2) payment of back rentals and either the inclusion in a 
reinstated lease issued pursuant to the provisions of section 
17(b) of this Act of a requirement for future rentals at a rate of 
30 use 226. 
not less than $10 per acre per year, or the inclusion in a 
reinstated lease issued pursuant to the provisions of section 
17(c) of this Act of a requirement that future rentals shall be at 
a rate not less than $5 per acre per year, all as determined by 
the Secretary; 
"(3)(A) payment of back royalties and the inclusion in a 
u 
reinstated lease issued pursuant to the provisions of section 
17(b) of this Act of a requirement for future royalties at a rate of 
not less than 16% percent computed on a sliding scale based 
upon the average production per well per day, at a rate which 
shall be not less than 4 percentage points greater than the 
competitive royality schedule then in force and used for royalty 
96 STAT. 2464 
PUBLIC LAW 97-451—JAN. 12, 1983 
30 use 226. 
Notice, 
publication in 
Federal 
Register. 
Copy, submittal 
to congressional 
committees. 
Cost of 
publication in 
Federal 
Register. 
30 u s e 226. 
Ante, p. 2447. 
determination for competitive leases issued pursuant to such 
section as determined by the Secretary: Provided, That royalty 
on such reinstated lease shall be paid on all production removed 
or sold from such lease subsequent to the termination of the 
original lease; 
"(B) payment of back royalties and inclusion in a reinstated 
lease issued pursuant to the provisions of section 17(c) of this 
Act of a requirement for future royalties at a rate not less than 
16% percent: Provided, That royalty on such reinstated lease 
shall be paid on all production removed or sold from such lease 
subsequent to the cancellation or termination of the original 
lease; and 
"(4) notice of the proposed reinstatement of a terminated 
lease, including the terms and conditions of reinstatement, shall 
be published in the Federal Register at least thirty days in 
advance of the reinstatement. 
A copy of said notice, together with information concerning rental, 
royalty, volume of production, if any, and any other matter which 
the Secretary deemed significsint in making this determination to 
reinstate, shall be furnished to the Committee on Interior and 
Insular Affairs of the House of Representatives and the Committee 
on Energy and Natural Resources of the Senate at least thirty days 
in advance of the reinstatement. The lessee of a reinstated lease 
shall reimburse the Secretary for the administrative costs of rein-
stating the lease, but not to exceed $500. In addition the lessee shall 
reimburse the Secretary for the cost of publication in the Federal 
Register of the notice of proposed reinstatement. 
"(f) Where an unpatented oil placer mining claim validly located 
prior to February 24,1920, which has been or is currently producing 
or is capable of producing oil or gas, has been or is hereafter deemed 
conclusively abandoned for failure to file timely the required instru-
ments or copies of instruments required by section 314 of the 
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1744), 
and it is shown to the satisfaction of the Secretary that such failure 
was inadvertent, justifiable, or not due to lack of reasonable dili-
gence on the pait of the owner, the Secretary may issue, for the 
lands covered by the abandoned unpatented oil placer mining claim, 
a noncompetitive oil and gas lease, consistent with the provisions of 
section 17(e) of this Act, to be effective from the statutory date the 
claim was deemed conclusively abandoned. Issuance of such a lease 
shall be conditioned upon: 
"(1) a petition for issuance of a noncompetitive oil and gas 
lease, together with the required rental and royalty, including 
back rental and royalty accruing from the statutory date of 
abandonment of the oil placer mining claim, being filed with 
the Secretary— 
"(A) with respect to any claim deemed conclusively aban-
doned on or before the date of enactment of the Federal Oil 
, 
and Gas Royalty Management Act of 1982, on or before the 
one hundred and twentieth day after such date of enact-
ment, or 
"(B) with respect to any claim deemed conclusively aban-
doned after such date of enactment, on or before the one 
hundred and twentieth day after final notification by the 
Secretary or a court of competent jurisdiction of the deter-
PUBLIC LAW 97-451—JAN. 12, 1983 
96 STAT. 2465 
mination of the abandonment of the oil placer mining 
claim; 
"(2) a valid lease not having been issued affecting any of the 
lands covered by the abandoned oil placer mining claim prior to 
the filing of such petition: Provided, however. That after the 
filing of a petition for issuance of a lease under this subsection, 
the Secretary shall not issue any new lease affecting any of the 
lands covered by such abandoned oil placer mining claim for a 
reasonable period, as determined in accordance with regula-
tions issued by him; 
"(3) a requirement in the lease for pajnnent of rental, includ-
ing back rentals accruing from the statutory date of abandon-
ment of the oil placer mining claim, of not less than $5 per acre 
per year; 
"(4) a requirement in the lease for pa5nnent of royalty on 
production removed or sold from the oil placer mining claim, 
including all royalty on production made subsequent to the 
statutory date the claim was deemed conclusively abandoned, of 
not less than 12 y2 percent; and 
"(5) compliance with the notice and reimbursement of costs 
provisions of paragraph (4) of subsection (e) but addressed to the 
petition covering the conversion of an abandoned unpatented oil 
placer mining claim to a noncompetitive oil and gas lease. 
"(g)(1) Except £is otherwise provided in this section, a reinstated 
lease shall be treated as a competitive or a noncompetitive oil and 
gas lease in the same manner as the original lease issued pursuant 
to section 17(b) or 17(c) of this Act. 
30 use 226. 
"(2) Except as otherwise provided in this section, the issuance of a 
lease in lieu of an abandoned patented oil placer mining claim shall 
be treated as a noncompetitive oil and gas lease issued pursuant to 
section 17(c) of this Act. 
"(h) The minimum royalty provisions of section 17(j) and the 
provisions of section 39 of this Act shall be applicable to leases 30 use 209. 
issued pursuant to subsections (d) and (f) of this section. 
"(i)(l) In acting on a petition to issue a noncompetitive oil and gas 
lease, under subsection (f) of this section or in response to a request 
filed after issuance of such a lease, or both, the Secretary is author-
ized to reduce the royalty on such lease if in his judgment it is 
equitable to do so or the circumstances warrant such relief due to 
uneconomic or other circumstances which could cause undue hard-
ship or premature termination of production. 
"(2) In acting on a petition for reinstatement pursuant to subsec-
tion (d) of this section or in response to a request filed after 
reinstatement, or both, the Secretary is authorized to reduce the 
royalty in that reinstated lease on the entire leasehold or any tract 
or portion thereof segregated for royalty purposes if, in his judg-
96 STAT. 2466 
PUBLIC LAW 97-451—JAN. 12, 1983 
ment, there are uneconomic or other circumstances which could 
cause undue hardship or premature termination of production; or 
because of any written action of the United States, its agents or 
employees, wWch preceded, and was a major consideration in, the 
lessee's expenditure of funds to develop the property under the lease 
after the rent had become due and had not been paid; or if in the 
judgment of the Secretary it is equitable to do so for any reason.". 
Approved January 12,1983. 
LEGISLATIVE HISTORY—H.R. 5121 (S. 2305): 
HOUSE REPORT No. 97-859 (Comm. on Interior and Insular Affairs). 
SENATE REPORT No. 97-512 accompanying 8. 2305 (Comm. on Energy and Natural 
Resources). 
CONGRESSIONAL RECORD, Vol. 128 (1982): 
Sept. 29, considered and passed House. 
Dec. 6, considered and passed Senate, amended, in lieu of S. 2305. 
Dec. 13, House concurred in Senate amendments with an amendment. 
Dec. 16, Senate concurred in House amendment with an amendment. 
Dec. 18, House concurred in Senate amendment with an amendment. 
Dec. 21, Senate dissigreed to House amendment; House receded from its 
amendment and concurred in Senate amendment. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 19, No. 2 (1983): 
Jan. 12, Presidential statement.