§ 188.
(c)
Reinstatement
Where any lease 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 rental due, but such rental was paid on or tendered within twenty days thereafter, and it is shown to the satisfaction of the Secretary of the Interior that such failure was either justifiable or not due to a lack of reasonable diligence 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 termination 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 petition. 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. 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 Secretary may, at his discretion, extend the term of such lease for such period as he deems reasonable: Provided, That (A) such extension shall not exceed a period equivalent to the time beginning 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 period 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.
(e)
Conditions for reinstatement
Any reinstatement under subsection (d) of this section shall be made only if these conditions are met:
(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:
(2)
payment of back rentals and the inclusion in a reinstated lease issued pursuant to the provisions of
section 226(b) of this title of a requirement for future rentals at a rate of not less than $20 per acre per year, as determined by the Secretary;
(3)
payment of back royalties and the inclusion in a reinstated lease issued pursuant to the provisions of
section 226(b) of this title of a requirement for future royalties at a rate of not less than 20 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
1
So in original. Probably should be “royalty”.
schedule then in force and used for royalty 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; 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 significant in making this determination to reinstate, shall be furnished to the Committee on Natural Resources 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 reinstating 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.
([Feb. 25, 1920, ch. 85, § 31], [41 Stat. 450]; [Aug. 8, 1946, ch. 916, § 9], [60 Stat. 956]; [July 29, 1954, ch. 644, § 1(7)], [68 Stat. 585]; [Pub. L. 87–822, § 1], Oct. 15, 1962, [76 Stat. 943]; [Pub. L. 91–245], §§ 1, 2, May 12, 1970, [84 Stat. 206]; [Pub. L. 97–451, title IV, § 401], Jan. 12, 1983, [96 Stat. 2462]; [Pub. L. 100–203, title V], §§ 5102(d)(2), 5104, Dec. 22, 1987, [101 Stat. 1330–258], 1330–259; [Pub. L. 101–567, § 1], Nov. 15, 1990, [104 Stat. 2802]; [Pub. L. 103–437, § 11(a)(1)], Nov. 2, 1994, [108 Stat. 4589]; [Pub. L. 109–58, title III, § 371(b)], Aug. 8, 2005, [119 Stat. 734]; [Pub. L. 117–169, title V, § 50262(a)(2)], (c)(2), (e)(2), Aug. 16, 2022, [136 Stat. 2056–2058].)