42 USC 6506a - Competitive leasing of oil and gas

U.S Code last checked for updates: Aug 03, 2025

§ 6506a.

Competitive leasing of oil and gas

(a)

In general

(b)

Mitigation of adverse effects

(c)

Land use planning; BLM wilderness study

(d)

First lease sale

(e)

Withdrawals

(f)

Bidding systems

(g)

Geological structures

(h)

Size of lease tracts

(i)

Terms

(1)

In general

(2)

Renewal of leases with discoveries

(3)

Renewal of leases without discoveries

At the end of the primary term of a lease the Secretary shall renew for an additional 10-year term a lease that does not meet the requirements of paragraph (1) if the lessee submits to the Secretary an application for renewal not later than 60 days before the expiration of the primary lease and pays the Secretary a renewal fee of $100 per acre of leased land, and—

(A)

the lessee provides evidence, and the Secretary agrees that, the lessee has diligently pursued exploration that warrants continuation with the intent of continued exploration or future potential development of the leased land; or

(B)

all or part of the lease—

(i)

is part of a unit agreement covering a lease described in subparagraph (A); and

(ii)

has not been previously contracted out of the unit.

(4)

Applicability

(5)

Expiration for failure to produce

(6)

Termination

(j)

Unit agreements

(1)

In general

(2)

Consultation

(3)

Production allocation methodology

(A)

The Secretary may use a production allocation methodology for each participating area within a unit that includes solely Federal land in the Reserve.

(B)

The Secretary shall use a production allocation methodology for each participating area within a unit that includes Federal land in the Reserve and non-Federal land based on the characteristics of each specific oil or gas pool, field, reservoir, or like area to take into account reservoir heterogeneity and area variation in reservoir producibility across diverse leasehold interests. The implementation of the foregoing production allocation methodology shall be controlled by agreement among the affected lessors and lessees.

(4)

Benefit of operations

(5)

Pooling

(k)

Exploration incentives

(1)

In general

(A)

Waiver, suspension, or reduction

(B)

Applicability

(2)

Suspension of operations and production

(3)

Suspension of payments

(l)

Receipts

(m)

Explorations

(n)

Environmental impact statements

(1)

Judicial review

(2)

Initial lease sales

(o)

Regulations

(p)

Waiver of administration for conveyed lands

(1)

In general

Notwithstanding section 1613(g) of title 43—

(A)

the Secretary of the Interior shall waive administration of any oil and gas lease to the extent that the lease covers any land in the Reserve in which all of the subsurface estate is conveyed to the Arctic Slope Regional Corporation (referred to in this subsection as the “Corporation”);

(B)

(i)

in a case in which a conveyance of a subsurface estate described in subparagraph (A) does not include all of the land covered by the oil and gas lease, the person that owns the subsurface estate in any particular portion of the land covered by the lease shall be entitled to all of the revenues reserved under the lease as to that portion, including, without limitation, all the royalty payable with respect to oil or gas produced from or allocated to that portion;

(ii)

in a case described in clause (i), the Secretary of the Interior shall—

(I)

segregate the lease into 2 leases, 1 of which shall cover only the subsurface estate conveyed to the Corporation; and

(II)

waive administration of the lease that covers the subsurface estate conveyed to the Corporation; and

(iii)

the segregation of the lease described in clause (ii)(I) has no effect on the obligations of the lessee under either of the resulting leases, including obligations relating to operations, production, or other circumstances (other than payment of rentals or royalties); and

(C)

nothing in this subsection limits the authority of the Secretary of the Interior to manage the federally-owned surface estate within the Reserve.

(Pub. L. 94–258, title I, § 107, formerly Pub. L. 96–514, title I, Dec. 12, 1980, 94 Stat. 2964; Pub. L. 98–620, title IV, § 402(41), Nov. 8, 1984, 98 Stat. 3360; Pub. L. 105–83, title I, § 128, Nov. 14, 1997, 111 Stat. 1568; renumbered Pub. L. 94–258, title I, § 107, and amended Pub. L. 109–58, title III, § 347(a)(2), (b), Aug. 8, 2005, 119 Stat. 704.)

cite as: 42 USC 6506a