876 



the provisions of section 1335 (bi of this title shall 

 govern such lease. The notice concerning "Oil and 

 Gas Operations in the Submerged Coastal Lands of 

 the Gulf of Mexico" issued by the Secretary on 

 December 11. 1950 a5 F. R. 8835i. as amended by 

 the notice dated January 26. 1951 a6 F. R. 953). 

 and as supplemented by the notices dated February 

 2, 1951 (16 F. R. 1203). March 5. 1951 (16 P. R. 

 2195>. April 23. 1951 (16 F. R. 3623>. June 25. 1951 

 (16 F. R. 6404». August 22. 1951 (16 P. R. 8720). 

 October 24. 1951 (16 F. R. 10998). December 21. 1951 

 (17 F. R. 43). March 25. 1952 (17 F. R. 2821). June 

 26. 1952 (17 F. R. 5833). and December 24. 1952 (18 

 P. R. 48). respectively, is approved and confirmed. 

 (Aug. 7. 1953. ch. 345. § 7. 67 Stat. 467.) 



§ 1337. Grant of leases by Secretary, 

 (a) Oil and gas leases; award to highest bidder; 

 method of bidding. 



In order to meet the urgent need for further 

 exploration and development of the oil and gas 

 deposits of the submerged lands of the outer Con- 

 tinental Shelf, the Secretary is authorized to grant 

 to the highest responsible qualified bidder by com- 

 petitive bidding imder regulations promulgated in 

 advance, oil and gas leasee on submerged lands of 

 the outer Continental Shelf which are not covered 

 by leases meeting the requirements of section 1335 



(a) of this title. The bidding shall be (1) by sealed 

 bids, and (2) at the discretion of the Secretary, on 

 the basis of a cash bonus with a royalty fixed by 

 the Secretary at not less than 12 'i per centum in 

 amount or value of the production saved, removed or 

 sold, or on the basis of royalty, but at not less than 

 the per centum above mentioned, with a cash bonus 

 fixed by the Secretary. 



(b) Terms and provisions of oil and gas leases. 



An oil and gas lease issued by the Secretary 

 pursuant to this section shall (1) cover a compact 

 area not exceeding five thousand seven hundred 

 and sixty acres, as the Secretary may determine, 

 (2) be for a period of five years and as long there- 

 after as oil or gas may be produced from the area 

 in paying quantities, or drilling or well reworking 

 onerations as approved by the Secretary are con- 

 ducted thereon, (3) require the payment of a royalty 

 of not less than 12 Vi per centum, in the amount 

 or value of the production saved, removed, or sold 

 from the lease, and (4) contain such rental provi- 

 sions and such other terms and provisions as the 

 Secretary may prescribe at the time of offering the 

 area for lease. 



(c) Sulphur leases; award to highest bidder; method 

 of bidding. 



In order to meet the urgent need for further ex- 

 ploration and development of the sulphur deposits 

 in the submerged lands of the outer Continental 

 Shelf, the Secretary is authorized to grant to the 

 qualified persons offering the highest cash bonuses 

 on a basis of competitive bidding sulphur leases on 

 submerged lands of the outer Continental Shelf, 

 which are not covered by leases which include 

 sulphur and meet the requirements of section 1335 

 (a) of this title, and which sulphur leases shall be 

 offered for bid by sealed bids and granted on sep- 



arate leases from oil and gas leases, and for a sep- 

 arate consideration, and without priority or pref- 

 erence accorded to oil and gas lessees on the same 

 area. 



(d) Terms and provisions of sulphur leases. 



A sulphur lease issued by the Secretary pursuant 

 to this section shall (1) cover an area of such size 

 and dimensions as the Secretary may determine, 

 (2) be for a period of not more than ten years 

 and so long thereafter as sulphur may be produced 

 from the area in paying quantities or drilling, well 

 reworking, plant construction, or other operations 

 for the production of sulphur, as approved by the 

 Secretary, are conducted thereon, (3) require the 

 payment to the United States of such royalty as 

 may be specified in the lease but not less than 5 

 per centum of the gross production or value of the 

 sulphur at the wellhead, and (4) contain such 

 rental provisions and such other terms and pro- 

 visions as the Secretary may by regulation pre- 

 scribe at the time of offering the area for lease. 



(e) Other mineial leases; award to highest bidder; 

 terms and conditions. 



The Secretary is authorized to grant to the qual- 

 ified persons offering the highest cash bonuses on 

 a basis of competitive bidding leases of any mineral 

 other than oil, gas. and sulphur in any area of the 

 outer Continental Shelf not then under lease for 

 such mineral upon such royalty, rental, and other 

 terms and conditions as the Secretary may pre- 

 scribe at the time of offering the area for lease. 



(f) Publication of notices of sale and terms of bidding. 

 Notice of sale of leases, and the terms of bidding, 



authorized by this section shall be published at 

 least thirty days before the date of sale in accord- 

 ance with rules and regulations promulgated by the 

 Secretary. 



(g) Disposition of revenues. 



All moneys paid to the Secretary for or under 

 leases granted pursuant to this section shall be de- 

 posited in the Treasury in accordance with section 

 1338 of this title. 



(h) Issuance of lease as non-prejudicial to ultimate 

 settlement or adjudication of controversies. 



The issuance of any lease by the Secretary pur- 

 suant to this subchapter, or the making of any in- 

 terim arrangements by the Secretary pursuant to 

 section 1336 of this title shall not prejudice the 

 ultimate settlement or adjudication of the question 

 as to whether or not the area involved is in the outer 

 Continental Shelf. 



(i) Cancellation of leases for fraud. 



The Secretary may cancel any lease obtained by 

 fraud or misrepresentation. 



(j) Judicial review of cancellation of lease; petition 

 within sixty days. 



Any person complaining of a cancellation of a 

 lease by the Secretary may have the Secretary's 

 action. reviewed in the United States District Court 

 for the District of Columbia by filing a petition 

 for review within sixty days after the Secretary 

 takes such action. (Aug. 7, 1953, ch. 345, § 8. 67 

 Stat. 468.) 



