874 



1335 of this title, such leas? may be canceled by the 

 Secretary, subject to the right of judicial review as 

 provided in section 1337 (j) of this title, if such de- 

 fault continues for the period of thirty days after 

 mailing of notice by registered letter to the lease 

 owner at his record post office address. 



(2) Whenever the owner of any producing- lease 

 fails to comply with any of the provisions of this 

 subchapter, or of the lease, or of the regulations 

 issued under this subchapter and in force and ef- 

 fect on the date of the issuance of the lease if the 

 lease is issued under the provisions of section 1337 

 of this title, or of the regulations issued under the 

 provisions of section 1335 (b) (2) of this title, 

 hereof, if the lease is maintained under the pro- 

 visions of section 1335 of this title, such lease may 

 be forfeited and canceled by an appropriate pro- 

 ceeding in any United States district court having 

 jurisdiction under the provisions of section 1333 



(b) of this title. 



(c) Pipeline riglits-of-way; forfeiture of grant. 



Rights-of-way through the submerged lands of 

 the outer Continental Shelf, whether or not such 

 lands are included in a lease maintained or issued 

 pursuant to this subchapter, may be granted by the 

 Secretary for pipeline purposes for the transporta- 

 tion of oil. natural gas, sulphur, or other mineral 

 under such regulations and upon such conditions 

 as to the application therefor and the survey, loca- 

 tion and width thereof as may be prescribed by the 

 Secretary, and upon the express condition that such 

 oil or gas pipelines shall transport or purchase with- 

 out discrimination, oil or natural gas produced from 

 said submerged lands in the vicinity of the pipeline 

 in such proportionate amounts as the Federal 

 Power Commission, in the case of gas, and the In- 

 terstate Commerce Commission, in the case of oil. 

 may. after a full hearing with due notice thereof 

 to the interested parties, determine to be reason- 

 able, taking into account, among other things, 

 conservation and the prevention of waste. Failure 

 to comply with the provisions of this section or the 

 regulations and conditions prescribed thereunder 

 shall be ground for forfeiture of the grant in an 

 appropriate judicial proceeding instituted by the 

 United States in any United States district court 

 having jurisdiction under the provisions of section 

 1333 (b) of this title. (Aug. 7, 1953, ch. 345. 15. 

 67 Stat 464.) 



Key Largo Coral Reef Preserve 



Secretary of the Interior to prescribe rules and regu- 

 lations governing the protection and conservation of the 

 coral and other mineral resources In the area designated 

 Key Largo Coral Reef Preserve, see Proc. No. 3339. Mar. 

 15, 1960. 25 P. R. 2352. set out as a note under section 

 461 of Title 16, Conservation 



§ 1335. Validation and maintenance of prior leases, 

 (a) Requirements for validation. 



The provisions of this section shall apply to any 

 mineral lease covering submerged lands of the outer 

 Continental Shelf issued by any State (including 

 any extension, renewal, or replacement thereof 

 heretofore granted pursuant to such lease or under 

 the laws of such State) if — 



(1) such lease, or a true copy thereof, is filed 



with the Secretary by the lessee or his duly au- 

 thorized agent within ninety days from the effec- 

 tive date of this subchapter, or within such 

 further period or periods as provided in section 

 1336 of this title or as may be fixed from time to 

 time by the Secretary ; 



(2) such lease was issued prior to December 21, 

 1948, and would have been on June 5, 1950, in force 

 and effect in accordance with its terms and pro- 

 visions and the law of the State issuing it had the 

 State had the authority to issue such lease; 



(3) there is filed with the Secretary, within 

 the period or periods specified in paragraph (1> 

 of this subsection, (A) a certificate issued by the 

 State official or agency having jurisdiction over 

 such lease stating that it would have been in force 

 and effect as required by the provisions of para- 

 graph (2) of this subsection, or (B) in the absence 

 of such certificate, evidence in the form of aCB- 

 davits, receipts, canceled checks, or other docu- 

 ments that may be required by the Secretary, suf- 

 ficient to prove that such lease would have been 

 so in force and effect; 



(4) except as otherwise provided in section 1336 

 of this title hereof, all rents, royalties, and other 

 sums payable under such lease between June 5. 

 1950, and August 7, 1953, which have not been paid 

 in accordance with the provisions thereof, or to 

 the Secretary or to the Secretary of the Navy, are 

 paid to the Secretary within the period or periods 

 specified in paragraph (1) of this subsection, and 

 all rents, royalties, and other sums payable under 

 such lease after August 7, 1953, are paid to the 

 Secretary, who shall deposit such payments in the 

 Treasury in accordance with section 1338 of this 

 title; 



(5) the holder of such lease certifies that such 

 lease shall continue to be subject to the overriding 

 royalty obligations existing on August 7, 1953; 



(6) such lease was not obtained by fraud or 

 misrepresentation ; 



(7) such lease, if issued on or after June 23, 

 1947, was issued upon the basis of competitive 

 bidding; 



(8) such lease provides for a royalty to the 

 lessor on oil and gas of not less than 12'/2 per 

 centum and on sulphur of not less than 5 per 

 centum in amount or value of the production 

 saved, removed, or sold from the lease, or, In 

 any case in which the lease provides for a lesser 

 royalty, the holder thereof consents In writing, 

 filed with the Secretary, to the increase of the 

 royalty to the minimum herein specified; 



(9) the holder thereof pays to the Secretary 

 within the period or periods specified In paragraph 

 (1) of this subsection an amount equivalent to 

 any severance, gross production, or occupation 

 taxes imposed by the St^te issuing the lease on 

 the production from the lease, less the State's 

 royalty interest In such production, between 

 June 5. 1950, and August 7, 1953 and not hereto- 

 fore paid to the State, and thereafter pays to the 

 Secretary as an additional royalty on the pro- 

 duction from the lease, less the United States' 

 royalty interest in such production, a sum of 

 money equal to the amount of the severance, 

 gross production, or occfipation taxes which 



