875 



would have been payable on such production to 

 the State issuing the lease under its laws as they 

 existed on August 7, 1953; 



(10) such lease will terrr'nate within a period 

 of not more than five years from August 7, 1953 in 

 the absence of production or operations for drill- 

 ing, or, in any case in which the lease provides for 

 a longer period, the holder thereof consents In 

 writing, filed with the Secretary, to the reduction 

 of such period so that it will not exceed the maxi- 

 mum period herein specified; and 



(11) the holder of such lease furnishes such 

 surety bond, if any, as the Secretary may require 

 and complies with such other reasonable require- 

 ments as the Secretary may deem necessary to 

 protect the interests of the United States. 



(b) Conduct of operations under lease; sulphur rights. 



Any person holding a mineral lease, which as 

 determined by the Secretary meets the requirements 

 of subsection (a) of this section, may continue to 

 maintain such lease, and may conduct operations 

 thereunder, in accordance with (1) its provisions 

 as to the area, the minerals covered, rentals and, 

 subject to the provisions of paragraphs (8) — (10) 

 of subsection (a) of this section, as to royalties 

 and as to the term thereof and of any extensions, 

 renewals, or replacements authorized therein or 

 heretofore authorized by the laws of the State 

 issuing such lease, or, if oil or gas was not being 

 produced in paying quantities from such lease on 

 or before December U, 1950. or if production in 

 paying quantities has ceased since June 5. 1950, or 

 if the primary term of such lease has expired since 

 December 11, 1950, then for a term from August 7, 

 1953 equal to the term remaining unexpired on 

 December U. 1950, under the provisions of such 

 lease or any extensions, renewals, or replacements 

 authorized therein, or heretofore authorized by the 

 laws of such State, and (2) such regulations as the 

 Secretary may under section 1334 of this title pre- 

 scribe within ninety days after making his deter- 

 mination that such lease meets the requirements of 

 subsection (a) of this section: Provided, however. 

 That any rights to sulphur under any lease main- 

 tained under the provisions of this subsection shall 

 not extend beyond the primary term of such lease 

 or any extension thereof under the provisions of 

 this subsection unless sulphur is being produced in 

 paying quantities or drilling, well reworking, plant 

 construction, or other operations for the production 

 of sulphur, as approved by the Secretary, are being 

 conducted on the area covered by such lease on the 

 date of expiration of such primary term or exten- 

 sion: Provided further. That if sulphur is being 

 produced in paying quantities on such date, then 

 such rights shall continue to be maintained in ac- 

 cordance with such lease and the provisions of this 

 subchapter: Provided further. That, if the primary 

 term of a lease being maintained under this sub- 

 section has expired prior to August 7. 1953 and oil 

 or gas is being produced in paying quantities on 

 such date, then such rights to sulphur as the lessee 

 may have under such lease shall continue for 

 twenty-four months from August 7, 1953 and as 

 long thereafter as sulphur is produced in paying 



quantities, or drilling, well working, plant construc- 

 tion, or other operations for the production of sul- 

 phur, as approved by the Secretary, are being con- 

 ducted on the area covered by the lease. 



(c) Non-waiver of United States claims 



The permission granted in subsection (b) of this 

 section shall not be construed to be a waiver of 

 such claims, if any, as the United States may have 

 against the lessor or the lessee or any other person 

 respecting sums payable or paid for or under the 

 lease, or respecting activities conducted under the 

 lease, prior to August 7. 1953. 



(d) Judicial review of determination. 



Any person complaining of a negative determina- 

 tion by the Secretary of the Interior under this 

 section may have such determination reviewed by 

 the United States District Court for the District of 

 Columbia by filing a petition for review within sixty 

 days after receiving notice of such action by the 

 Secretary. 



(e) Lands beneath navigable waters. 



In the event any lease maintained under this sec- 

 tion covers lands beneath navigable waters, as that 

 term is used in subchapters I and II of this chapter, 

 as well as lands of the outer Continental Shelf, 

 the provisions of this section shall apply to such 

 lease only insofar as it covers lands of the outer 

 Continental Shelf. (Aug. 7. 1953. ch. 345, § 6, 67 

 Stat. 465.) 



§1336. Controversies over jurisdiction; agreements; 

 payments; final settlement or adjudication; ap- 

 proval of notice concerning oil and gas operations 

 in Gulf of Mexico. 



In the event of a controversy between the United 

 States and a State as to whether or not lands are 

 subject to the provisions of this subchapter, the 

 Secretary is authorized, notwithstanding the provi- 

 sions of section 1335 (a) and (b) of this title and 

 with the concurrence of the Attorney General of 

 the United States, to negotiate and enter into agree- 

 ments with the State, its political subdivision or 

 grantee or a lessee thereof, respecting operations 

 under existing mineral leases and payment and 

 impounding of rents, royalties, and other sums pay- 

 able thereunder, or with the State, its political sub- 

 division or grantee, respecting the issuance or 

 nonissuance of new mineral leases pending the set- 

 tlement or adjudication of the controversy. The 

 authorization contained in the preceding sentence 

 of this section shall not be construed to be a limita- 

 tion upon the authority conferred on the Secretary 

 in other sections of this subchapter. Payments 

 made pursuant to such agreement, or pursuant to 

 any stipulation between the United States and a 

 State, shall be considered as compliance with section 

 1335 (a) (4) of this title. Upon the termination 

 of such agreement or stipulation by reason of the 

 final settlement or adjudication of such controversy, 

 if the lands subject to any mineral lease are deter- 

 mined to be in whole or in part lands subject to the 

 provisions of this subchapter, the lessee, if he has not 

 already done so. shall comply with the require- 

 ments of section 1335 'a) of this title, and thereupon 



