103 



and structures, acts, or offenses of any other provision of law is 

 not intended. 



Sec. 5. Administration of Leasing of the Outer Continental 

 Shelf. — (a) (1) The Secretary shall administer the provisions of 

 this Act relating to the leasing of the outer Continental Shelf, and 

 shall prescribe such rules and regulations as may be necessary to 

 carry out such provisions. The Secretary may at any time pre- 

 scribe and amend such rules and regulations as he determines to 

 be necessary and proper in order to provide for the prevention of 

 waste and conservation of the natural resources of the outer Con- 

 tinental Shelf, and the protection of correlative rights therein, 

 and, notwithstanding any other provisions herein, such rules and 

 regulations shall apply to all operations conducted under a lease 

 issued or maintained under the provisions of this Act. In the en- 

 forcement of conservation laws, rules, and regulations the Sec- 

 retary is authorized to cooperate with the conservation agencies 

 of the adjacent States. Without limiting the generality of the 

 foregoinp- provisions of this section, the rules and regulations pre- 

 scribed by the Secretary thereunder may provide for the assign- 

 ment or relinquishment of leases, for the sale of royalty oil and 

 gas accruing or reserved to the United States at not less than 

 market value, and, in the interest of conservation, for unitization, 

 pooling, drilling agreements, suspension of operations or produc- 

 tion, reduction of rentals or royalties, compensatory royalty agree- 

 ments, subsurface storage of oil or gas in any of said submerged 

 lands, and drilling or other easements necessary for operations or 

 production. 



(2) Any person who knowingly and willfully violates any rule 

 or regulation prescribed by the Secretary for the prevention of 

 waste, the conservation of the natural resources, or the protection 

 of correlative rights shall be deemed guilty of a misdemeanor and 

 punishable by a fine of not more than $2,000 or by imprisonment 

 for not more than six months, or by both such fine and imprison- 

 ment, and each day of violation shall be deemed to be a separate 

 offense. The issuance and continuance in effect of any lease, or of 

 any extension, renewal, or replacement of any lease under the 

 provisions of this Act shall be conditioned upon compliance with 

 the regulations issued under this Act and in force and effect on 

 the date of the issuance of the lease if the lease is issued under 

 the provisions of section 8 hereof, or with the regulations issued 

 under the provisions of section 6(b), clause (2), hereof if the 

 lease is maintained under the provisions of section 6 hereof. 



(b) (1) Whenever the owner of a nonproducing lease fails to 

 comply with any of the provisions of this Act, or of the lease, or of 

 the regulations issued under this Act and in force and effect on 

 the date of the issuance of the lease if the lease is issued under 

 the provisions of section 8 hereof, or of the regulations issued 

 under the provisions of section 6(b), clause (2), hereof, if the 

 lease is maintained under the provisions of section 6 hereof, such 

 lease may be canceled by the Secretary, subject to the right of 

 judicial review as provided in section 8(j), if such default con- 

 tinues for the period of thirty days after mailing of notice by 

 registered letter to the lease owner at his record post oflSce 

 address. 



(2) Whenever the owner of any producing lease fails to comply 

 with any of the provisions of this Act, or of the lease, or of the 

 regulations issued under this Act and in force and effect on the 

 date of the issuance of the lease if the lease is issued under the 

 provisions of section 8 hereof, or of the regulations issued under 

 the provisions of section 6(b), clause (2), hereof, if the lease is 

 maintained under the provisions of section 6 hereof, such lease 

 may be forfeited and canceled by an appropriate proceeding in 

 any United States district court having jurisdiction under the 

 provisions of section 4(b) of this Act. 



Prevention of 

 waste. 



Cooperation 

 with State 

 conservation 

 agencies. 



Penalty. 



Cancellation of 

 lease. 



