§ 207. Conditions of lease

Footnotes

1. 1 So in original. Two pars. (6) have been enacted.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1920

   War Prohibition Act

   Pub. L. 66–85 § 7 · 41 Stat. 305

   Enacted · 30 U.S.C. § 207

   Feb. 25, 1920, ch. 85, § 7, 41 Stat. 439

   Source evidence

   Code source credit
   Feb. 25, 1920, ch. 85, § 7, 41 Stat. 439

   Enacted provision · exact public law section
   Sec. 7. None of the provisions of this Act shall be construed to No repeal of War Prohibition Act, or regulations. Vol. 40, pp. 958, 1047. repeal any of the provisions of the “War Prohibition Act,” or to limit or annul any order or regulation prohibiting the manufacture, sale, or disposition of intoxicating liquors within certain prescribed zones or districts, nor shall the provisions of this Act be construed Enforcement by military and naval authorities continued. to prohibit the use of the power of the military or naval authorities to enforce the regulations of the President or Secretary of War or Navy issued in pursuance of law, prohibiting the manufacture, use, possession, sale, or other disposition of intoxicating liquors during the period of the war and demobilization thereafter.

2. 1976

   Federal Coal Leasing Amendments Act of 1975

   Pub. L. 94–377 § 6 · 90 Stat. 1083

   1. Amended · 30 U.S.C. § 207

      Pub. L. 94–377 designated existing provisions as subsec. (a)

   2. Substituted · 30 U.S.C. § 207

      Pub. L. 94–377 substituted provisions limiting the lease term to 20 years and for so long thereafter as coal is produced annually in commercial quantities for provision authorizing leases for indeterminate periods upon condition of diligent development and continued operation except for strikes, the elements, or casualties not attributable to lessees; provisions for payment of royalties as determined by the Secretary of not less than 12½ per centum of coal value, except as reduced for coal from underground mining operations for provisions specifying royalties as stated in the lease, but not less than 5 cents per ton; provision for rentals as prescribed by regulation for provision setting rentals as fixed by the Secretary at not less than 25 cents per acre for the first year, 50 cents for the second, third, fourth and fifth years, and $1 for each year thereafter, and provision for readjustment of royalties and terms and conditions after primary period of twenty years and subsequent ten year intervals for provision for readjustment after twenty years unless otherwise provided by law

   3. Added · 30 U.S.C. § 207

      Pub. L. 94–377 added subsecs. (b) and (c)

   Source evidence

   Code amendment note
   Pub. L. 94–377 designated existing provisions as subsec. (a), substituted provisions limiting the lease term to 20 years and for so long thereafter as coal is produced annually in commercial quantities for provision authorizing leases for indeterminate periods upon condition of diligent development and continued operation except for strikes, the elements, or casualties not attributable to lessees; provisions for payment of royalties as determined by the Secretary of not less than 12½ per centum of coal value, except as reduced for coal from underground mining operations for provisions specifying royalties as stated in the lease, but not less than 5 cents per ton; provision for rentals as prescribed by regulation for provision setting rentals as fixed by the Secretary at not less than 25 cents per acre for the first year, 50 cents for the second, third, fourth and fifth years, and $1 for each year thereafter, and provision for readjustment of royalties and terms and conditions after primary period of twenty years and subsequent ten year intervals for provision for readjustment after twenty years unless otherwise provided by law, and added subsecs. (b) and (c).

   Enacted provision · exact public law section
   Sec. 6. Section 7 of the Mineral Lands Leasing Act (30 U.S.C. 207) is amended to read as follows: “Sec. 7. (a) A coal lease shall be for a term of twenty years and Terms and conditions. for so long thereafter as coal is produced annually in commercial quantities from that lease. Any lease which is not producing in commercial quantities at the end of ten years shall be terminated. The Regulation. Royalty. Secretary shall by regulation prescribe annual rentals on leases. A lease shall require payment of a royalty in such amount as the Secretary shall determine of not less than 12(4 per centum of the value of coal as defined by regulation, except the Secretary may determine a lesser amount in the case of coal recovered by underground mining operations. The lease shall include such other terms and conditions as the Secretary shall determine. Such rentals and royalties and other terms and conditions of the lease will be subject to readjustment at the end of its primary term of twenty years and at the end of each ten-year period thereafter if the lease is extended. “(b) Each lease shall be subject to the conditions of diligent development and continued operation of the mine or mines, except where operations under the lease are interrupted by strikes, the elements, or casualties not attributable to the lessee. The Secretary of the Interior, Advance royalties. upon determining that the public interest will be served thereby, may suspend the condition of continued operation upon the payment of advance royalties. Such advance royalties shall be no less than the production royalty which would otherwise be paid and shall be computed on a fixed reserve to production ratio (determined by the Secretary). The aggregate number of years during the period of any lease for which advance royalties may be accepted in lieu of the condition of continued operation shall not exceed ten. The amount of any production royalty paid for any year shall be reduced (but not below 0) by the amount of any advance royalties paid under such lease to the extent that such advance royalties have not been used to reduce production royalties for a prior year. No advance royalty paid during the initial twenty-year term of a lease shall be used to reduce a production royalty after the twentieth year of a lease. The Secretary may, upon six months’ notification to the lessee cease to accept advance royalties in lieu of the requirement of continued operation. Nothing in this subsection shall be construed to affect the requirement contained in the second sentence of subsection (a) relating to commencement of production at the end of ten years. “(c) Prior to taking any action on a leasehold which might cause Operation and reclamation plan, submittal to Secretary. a significant disturbance of the environment, and not later than three years after a lease is issued, the lessee shall submit for the Secretary’s approval an operation and reclamation plan. The Secretary shall approve or disapprove the plan or require that it be modified. Where the land involved is under the surface jurisdiction of another Federal agency, that other agency must consent to the terms of such approval.”.

3. 2005

   Coal Leasing Amendments Act of 2005

   Pub. L. 109–58 § 434 · 119 Stat. 594

   1. Amended · 30 U.S.C. § 207(b)

      Pub. L. 109–58, § 434, designated first to third and seventh and eighth sentences as pars. (1) to (3) and (6) and (7), respectively

   2. Substituted · 30 U.S.C. § 207(b)

      Pub. L. 109–58, § 434, substituted “Advance royalties described in paragraph (2)” for “Such advance royalties” in par. (3)

   3. Added · 30 U.S.C. § 207(b)

      Pub. L. 109–58, § 434, added pars. (4), (5), and (6) related to amount of any production royalty paid

   4. Struck · 30 U.S.C. § 207(b)

      Pub. L. 109–58, § 434, struck out fourth to sixth sentences which read as follows: “The aggregate number of years during the period of any lease for which advance royalties may be accepted in lieu of the condition of continued operation shall not exceed ten. The amount of any production royalty paid for any year shall be reduced (but not below 0) by the amount of any advance royalties paid under such lease to the extent that such advance royalties have not been used to reduce production royalties for a prior year. No advance royalty paid during the initial twenty-year term of a lease shall be used to reduce a production royalty after the twentieth year of a lease.”

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 109–58, § 434, designated first to third and seventh and eighth sentences as pars. (1) to (3) and (6) and (7), respectively, substituted “Advance royalties described in paragraph (2)” for “Such advance royalties” in par. (3), added pars. (4), (5), and (6) related to amount of any production royalty paid, and struck out fourth to sixth sentences which read as follows: “The aggregate number of years during the period of any lease for which advance royalties may be accepted in lieu of the condition of continued operation shall not exceed ten. The amount of any production royalty paid for any year shall be reduced (but not below 0) by the amount of any advance royalties paid under such lease to the extent that such advance royalties have not been used to reduce production royalties for a prior year. No advance royalty paid during the initial twenty-year term of a lease shall be used to reduce a production royalty after the twentieth year of a lease.”

   Enacted provision · exact public law section
   SEC. 434. PAYMENT OF ADVANCE ROYALTIES UNDER COAL LEASES.   Section 7(b) of the Mineral Leasing Act (30 U.S.C. 207(b)) is amended— (1) in the first sentence, by striking “Each lease” and inserting the following: “(1) Each lease”; (2) in the second sentence, by striking “The Secretary” and inserting the following: “(2) The Secretary” ; (3) in the third sentence, by striking “Such advance royalties” and inserting the following: “(3) Advance royalties described in paragraph (2)” ; (4) in the seventh sentence, by striking “The Secretary” and inserting the following: “(6) The Secretary” ; (5) in the last sentence, by striking “Nothing” and inserting the following: “(7) Nothing” ; (6) by striking the fourth, fifth, and sixth sentences; and (7) by inserting after paragraph (3) (as designated by paragraph (3)) the following: “(4) Advance royalties described in paragraph (2) shall be computed— “(A) based on— “(i) the average price in the spot market for sales of comparable coal from the same region during the last month of each applicable continued operation year; or “(ii) in the absence of a spot market for comparable coal from the same region, by using a comparable method established by the Secretary of the Interior to capture the commercial value of coal; and “(B) based on commercial quantities, as defined by regulation by the Secretary of the Interior. “(5) The aggregate number of years during the period of any lease for which advance royalties may be accepted in lieu of the condition of continued operation shall not exceed 20 years. “(6) The amount of any production royalty paid for any year shall be reduced (but not below 0) by the amount of any advance royalties paid under a lease described in paragraph (5) to the extent that the advance royalties have not been used to reduce production royalties for a prior year.” .

   Effective date note
   Amendment by Pub. L. 109–58 applicable with respect to any coal lease issued before, on, or after Aug. 8, 2005, see section 438 of Pub. L. 109–58, set out as a note under section 201 of this title.

4. 2005

   Coal Leasing Amendments Act of 2005

   Pub. L. 109–58 § 435 · 119 Stat. 594

   Struck · 30 U.S.C. § 207(c)

   Pub. L. 109–58, § 435, struck out “and not later than three years after a lease is issued,” before “the lessee shall submit”

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 109–58, § 435, struck out “and not later than three years after a lease is issued,” before “the lessee shall submit”.

   Enacted provision · exact public law section
   SEC. 435. ELIMINATION OF DEADLINE FOR SUBMISSION OF COAL LEASE OPERATION AND RECLAMATION PLAN.   Section 7(c) of the Mineral Leasing Act (30 U.S.C. 207(c)) is amended by striking “and not later than three years after a lease is issued,”.

   Effective date note
   Amendment by Pub. L. 109–58 applicable with respect to any coal lease issued before, on, or after Aug. 8, 2005, see section 438 of Pub. L. 109–58, set out as a note under section 201 of this title.

5. 2025

   Pub. L. 119–21 title V § 50202(a) · 139 Stat. 145

   Substituted · 30 U.S.C. § 207(a)

   Pub. L. 119–21 substituted “12½ percent, except such amount shall be not more than 7 percent during the period that begins on July 4, 2025, and ends September 30, 2034,” for “12½ per centum”

   Unresolved: Pub. L. 119–21 was not found in the local Statutes at Large index.

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 119–21 substituted “12½ percent, except such amount shall be not more than 7 percent during the period that begins on July 4, 2025, and ends September 30, 2034,” for “12½ per centum”.

9 of 10 references resolved to an enrolled provision · 1 unresolved