Title 30 — Mineral Lands and Mining
Chapter 1 — United States Bureau of Mines
§ 4b. Cooperation with individuals, municipalities, etc.; contracts with owners; agreements as to prices
Statutory text
The Secretary of the Interior and the Secretary of Commerce jointly are hereby authorized, within their discretion, to cooperate under formal agreement with individuals, associations, corporations, States, and municipalities, educational institutions, or other bodies, for the purposes of this section: Provided, That before undertaking drilling operations upon any tract or tracts of land, the mineral deposits of which are not the property of the United States, the Secretary of the Interior and the Secretary of Commerce jointly shall enter into a contract or contracts with the owners or lessees, or both, of the mineral rights therein, and the aforesaid contract or contracts shall provide, among other things, that, if deposits of potash minerals or oil shall be discovered in pursuance of operations under said contract or contracts and if and when said mineral deposits shall be mined and sold, the owners or lessees, or both, of said mineral rights shall pay to the Government and its cooperators a royalty of not less than 2½ per centum of the sale value of any potash minerals and oil therefrom, said payments to continue until such time as the total amount derived from said royalty is equal to not more than the cost of the exploration, as may be determined by the Secretary of the Interior and the Secretary of Commerce jointly: Provided further, That all Federal claims for reimbursement under this section shall automatically expire twenty years from the date of approval of the contracts entered into, in accordance with the provisions thereof, unless sooner terminated by agreement between the owners or lessees of the potash mineral rights and oil and the Secretary of the Interior and the Secretary of Commerce jointly: Provided further, That said contract or contracts shall not restrict the Secretary of the Interior and the Secretary of Commerce jointly in the choice of drilling locations within the property or in the conduct of the exploratory operations, so long as such selection or conduct do not interfere unreasonably with the surface of the land or with the improvements thereof, and said contract or contracts shall provide that the United States shall not be liable for damages on account of such reasonable use of the surface as may be necessary in the proper conduct of the work.
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.
Pub. L. 69–674 § 2 · 44 Stat. 768
Enacted · 30 U.S.C. § 4b
June 25, 1926, ch. 674, § 2, 44 Stat. 768
Source evidence
Code source credit
June 25, 1926, ch. 674, § 2, 44 Stat. 768Enacted provision · exact public law section
Sec. 2. The Secretary of the Interior and the Secretary of Commerce jointly are hereby authorized, within their discretion, to cooperate under formal agreement with individuals, associations, corporations, States, municipalities, educational institutions, or other Provisos. Contracts with owners, etc., of lands before commencing drilling. bodies, for the purposes of this Act: Provided, That before under-taking drilling operations upon any tract or tracts of land the Secretary of the Interior and the Secretary of Commerce jointly, shall enter into a contract or contracts with the owners or lessees, or Conditions. both, of the mineral rights therein, which contract shall provide, among other things, that not more than the actual cost of the exploration shall constitute a preferred claim in favor of the United Payment of costs of exploration. States and its cooperators against any minerals developed; and the aforesaid contract or contracts shall provide that the owners or lessees, or both, of said lands and or mineral rights within the radius hereinafter mentioned, shall pay to the Government and its cooperators an amount equal to the actual costs of said explorations, said payments to be made at such time or times, in such manner, and in such proportions as said Secretaries may, in their discretion, No restriction on drilling locations, etc. determine to be equitable: Provided further, That such contract shall not restrict the Secretary of the Interior and the Secretary of Commerce jointly in the choice of drilling locations within the property or in Conditions. the conduct of the exploratory operations, so long as such selections or conduct do not interfere unreasonably with the use of the surface of the land or with the improvements thereon, and such contract shall provide that the United States and its cooperators shall not be liable for damages on account of such reasonable use of the surface as may be necessary in the proper conduct of the work: Provided further, That before such drilling be commenced the Secretary Agreement with owners of contiguous lands, to prevent profiteering, etc. of the Interior and the Secretary of Commerce jointly shall require the owners of land and/or mineral rights therein lying within a radius of not less than one mile of any proposed well, in consideration of the probable increase in value to such lands and/or mineral rights therein incident to any discovery of potash and in order to prevent profiteering, to enter into an agreement whereby the Secretary of the Interior and the Secretary of Commerce, jointly, are empowered to act as referees in determining the maximum price at Which the potash rights in such lands can be sold, which covenant shall run with the lands and/or mineral rights therein: And provided further, Conditions as to marketing price. That the owners of such potash rights, in consideration of the advantage accruing from an equitable price for such potash rights as effected by said Secretary of the Interior and Secretary of Commerce, may be required to enter into an agreement whereby the potash produced from said lands shall be marketed at a price not in excess of a maximum determined by the Secretary of the Interior and the Secretary of Commerce jointly as equitable.
1 of 1 references resolved to an enrolled provision
Editorial Notes
Amendments
1927—Act , amended provisions generally.
Credits
1926–1927 · 2 acts
- 1926June 25, 1926, ch. 674, § 2, 44 Stat. 768
- 1927Mar. 3, 1927, ch. 356, 44 Stat. 1388.
Show as published
(June 25, 1926, ch. 674, § 2, 44 Stat. 768; Mar. 3, 1927, ch. 356, 44 Stat. 1388.)