App. C— Mineral Laws of the United States • 305 



deposits available only through prospecting permits and 

 leases. This move was a major departure from earlier 

 policy, replacing free entry and disposal with a discre- 

 tionary system. As initially adopted, prospecting per- 

 mits could be issued to the first qualified applicant wish- 

 ing to explore lands whose mineral potential was 

 unknown. Discovery of a valuable deposit entitled the 

 prospector to a preference-right lease to develop and pro- 

 duce the mineral if the land was found to be chiefly val- 

 uable for that purpose. Known mineral lands could be 

 leased by advertisement, competitive bid, or other meth- 

 ods adopted by the Secretary of the Interior. 



Prospecting permits are no longer available for oil, 

 gas, or coal. Lands known to contain these substances 

 may be leased only by competitive bid. Non-competitive 

 leases may be issued to the first qualified applicant for 

 lands outside the known geologic structure of a produc- 

 ing oil or gas field. The Secretary has broad discretion 

 to impose conditions for diligence, safety, environmental 

 protection, rents and royalties, and other factors needed 

 to protect the interest of the United States and the pub- 

 lic welfare. 



Like the Mining Law of 1872, the Mineral Leasing 

 Act of 1920 is applicable only to the public domain (for 

 the most part, land which has been retained in Federal 

 ownership since its original acquisition as part of the 

 territory of the United States). The Mineral Leasing Act 

 for Acquired Land was enacted in 1947 and made the 

 fuel, fertilizer, and chemical minerals in acquired land 

 available under the provisions of the Leasing Act of 

 1920. Permits and leases on acquired land (mostly na- 

 tional forests in the Eastern States) can be issued only 

 with the consent of the surface management agency and 

 must be consistent with the primary purpose for which 

 the land was acquired. Hardrock minerals in acquired 

 national forests and grasslands are available under sim- 

 ilar conditions. 



Materials Sales System 



The Materials Act of 1947 made "common varieties" 

 of sand, stone, gravel, cinders, and clay in Federal lands 

 available for sale at fair market value or by competitive 

 bidding. The Surface Resources Act of 1955 removed 

 these materials from entry and patent under the Gen- 

 eral Mining Law. The miner does not acquire a prop- 

 erty right to the source of these materials, and the use 

 of a site may be communal or nonexclusive. Govern- 

 mental and nonprofit entities are not charged for mate- 

 rial taken for public or nonprofit purposes. 



Offshore Mineral Management 



Outer Continental Shelf Lands Act 



The Outer Continental Shelf Lands Act (OCSLA) 

 was adopted in 1953 and provides for the leasing of 

 mineral resources in submerged lands that are beyond 

 State waters and subject to U.S. jurisdiction and con- 

 trol (table C-1). The law's primary focus is on oil, gas, 

 and sulphur but Section 8(k) authorizes the Secretary 

 of the Interior to lease other minerals also occurring in 

 the outer continental shelf. 



Oil and gas leases are granted to the highest bidder 

 pursuant to a 5-year leasing program. The program is 

 based on a determination of national energy needs and 

 must also consider the effects of leasing on other re- 

 sources, regional development and energy needs, indus- 

 try interest in particular areas, and environmental sen- 

 sitivity and marine productivity of different areas of the 

 continental shelf. The size, timing, and location of pro- 

 posed lease sales and lessees' proposed development and 

 production plans are subject to review by affected State 

 and local governments. Recommendations from State 

 and local governments must be accepted if the Secre- 

 tary determines that they provide for a reasonable bal- 

 ance between the national interest and the well-being 

 of local citizens. A flexible bidding system is provided 

 in which the royalty rate, cash bonus, work commit- 

 ment, profit share, or any combination of them may be 

 the biddable factor. 



A comprehensive program is not required for 

 minerals other than oil and gas, and bidding for leases 

 is limited to the highest cash bonus. It is unclear to what 

 extent the law's coordination and environmental pro- 

 tection provisions apply to these other minerals. 

 Leases under OCSLA are not explicitly limited to U.S. 

 citizens by the statute, but such a limitation has been 

 imposed by regulation. See 30 CFR 256.35(b). 



Deep Seabed Hard Minerals Resources Act 



The fifth legal system was adopted in 1980 as an in- 

 terim measure pending the entry into force of a law of 

 the sea treaty binding on the United States. The Deep 

 Seabed Hard Minerals Resources Act (DSHMRA) ap- 

 plies to the exploration for and commercial recovery of 

 manganese nodules in the seabed beyond the continen- 

 tal shelf or resource jurisdiction of any nation. In con- 

 trast with the other laws, where the United States as- 

 serts jurisdiction based on territorial control, DSHMRA's 



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