Title 30Mineral Lands and MiningRelease 119-73

§1702 Definitions

Title 30 › Chapter CHAPTER 29— - OIL AND GAS ROYALTY MANAGEMENT › § 1702

Last updated Apr 6, 2026|Official source

Summary

Defines the main words used in the chapter so people know what each term means. "Federal land" — land or land rights the United States owns that are covered by the mineral leasing laws. "Indian allottee" — an Indian who has land held in trust by the United States or whose title can’t be sold without federal permission. "Indian lands" — land or land interests of an Indian tribe or allottee held in trust, restricted from sale, or managed under 43 U.S.C. 1613(g), excluding lands covered by section 3 of the Act of June 28, 1906 (34 Stat. 539). "Indian tribe" — any named group of Indians for which land is held in trust, restricted, or managed under 43 U.S.C. 1613(g). "Lease" — a government-issued or approved contract or similar agreement that allows oil or gas exploration or removal. "Lease site" — the land or submerged land where a lease lets oil or gas be explored or taken. "Lessee" — the person who holds the lease or has been assigned the operating rights. "Mineral leasing law" — any federal law run by the Secretary that allows leasing of oil or gas. "Oil or gas" — oil or gas that comes from or is assigned to the Outer Continental Shelf, federal, or Indian lands. "Outer Continental Shelf" — has the meaning given in the Outer Continental Shelf Lands Act (Public Law 95–372). "Operator" — anyone who controls or runs operations on a lease site. "Person" — an individual or any type of business group (company, partnership, joint venture, etc.). "Production" — activities to remove oil or gas, including removal, field work, transfer off the site, monitoring, maintenance, and workover drilling. "Royalty" — payments owed to the United States, an Indian tribe, or an allottee based on the amount or value of production, including minimum lease royalties. "Secretary" — the Secretary of the Interior or their designee. "State" — the U.S. States, the District of Columbia, Puerto Rico, U.S. territories and possessions, and the Trust Territory of the Pacific Islands. "Adjustment" — a change to a filed report that fixes an underpayment or overpayment and any extra payment or credit tied to it. "Administrative proceeding" — an Interior Department process where a Secretary or delegated State decision can be appealed. "Assessment" — a fee the Secretary or delegated State charges that is not a principal royalty, interest, or civil/criminal penalty. "Commence" — for lawsuits, the filing and service of papers; for demands, the date the Secretary, delegated State, lessee, or designee receives the demand; if the Secretary sues a designee, the lessee who named the designee must be notified. "Credit" — using an overpayment to lower or cancel a due obligation. "Delegated State" — a State that, under agreement at 30 U.S.C. 1735, carries out Secretary powers. "Demand" — a written order to pay from the Secretary or a delegated State to a lessee or designee (with notice to the lessee who named the designee), or a written claim by a lessee or designee asserting money is due; it does not mean royalty or production reports. "Designee" — the person a lessee names under 30 U.S.C. 1712(a); the designation takes effect when the Secretary receives it until changed in writing. "Obligation" — a duty of the government or of a lessee/designee to deliver oil or gas in kind or to pay, refund, offset, or credit money, interest, penalties, assessments, or principal amounts like royalties, rentals, bonuses, or net profit shares. "Order to pay" — a written order naming the lease, production month, dollar amount, and reasons for the amount claimed. "Overpayment" — money paid that is more than legally required, including excess estimated payments for a production month. "Payment" — satisfying an obligation in whole or part. "Penalty" — a civil fine allowed by law for violating this chapter, a mineral leasing law, or a lease term. "Refund" — returning an overpayment. "State concerned" — a State that gets part of the royalties or other payments from a lease. "Underpayment" — paying less than legally required. "United States" — the U.S. Government and any department, agency, or instrumentality of it, the several States, the District of Columbia, and U.S. territories.

Full Legal Text

Title 30, §1702

Mineral Lands and Mining — Source: USLM XML via OLRC

For the purposes of this chapter, the term—
(1)“Federal land” means all land and interests in land owned by the United States which are subject to the mineral leasing laws, including mineral resources or mineral estates reserved to the United States in the conveyance of a surface or nonmineral estate;
(2)“Indian allottee” means any Indian for whom land or an interest in land is held in trust by the United States or who holds title subject to Federal restriction against alienation;
(3)“Indian lands” means any lands or interest in lands of an Indian tribe or an Indian allottee held in trust by the United States or which is subject to Federal restriction against alienation or which is administered by the United States pursuant to section 1613(g) of title 43, including mineral resources and mineral estates reserved to an Indian tribe or an Indian allottee in the conveyance of a surface or nonmineral estate, except that such term does not include any lands subject to the provisions of section 3 of the Act of June 28, 1906 (34 Stat. 539);
(4)“Indian tribe” means any Indian tribe, band, nation, pueblo, community, rancheria, colony, or other group of Indians, including the Metlakatla Indian Community of Annette Island Reserve, for which any land or interest in land is held by the United States in trust or which is subject to Federal restriction against alienation or which is administered by the United States pursuant to section 1613(g) of title 43;
(5)“lease” means any contract, profit-share arrangement, joint venture, or other agreement issued or approved by the United States under a mineral leasing law that authorizes exploration for, extraction of, or removal of oil or gas;
(6)“lease site” means any lands or submerged lands, including the surface of a severed mineral estate, on which exploration for, or extraction or removal of, oil or gas is authorized pursuant to a lease;
(7)“lessee” means any person to whom the United States issues an oil and gas lease or any person to whom operating rights in a lease have been assigned;
(8)“mineral leasing law” means any Federal law administered by the Secretary authorizing the disposition under lease of oil or gas;
(9)“oil or gas” means any oil or gas originating from, or allocated to, the Outer Continental Shelf, Federal, or Indian lands;
(10)“Outer Continental Shelf” has the same meaning as provided in the Outer Continental Shelf Lands Act (Public Law 95–372);
(11)“operator” means any person, including a lessee, who has control of, or who manages operations on, an oil and gas lease site on Federal or Indian lands or on the Outer Continental Shelf;
(12)“person” means any individual, firm, corporation, association, partnership, consortium, or joint venture;
(13)“production” means those activities which take place for the removal of oil or gas, including such removal, field operations, transfer of oil or gas off the lease site, operation monitoring, maintenance, and workover drilling;
(14)“royalty” means any payment based on the value or volume of production which is due to the United States or an Indian tribe or an Indian allottee on production of oil or gas from the Outer Continental Shelf, Federal, or Indian lands, or any minimum royalty owed to the United States or an Indian tribe or an Indian allottee under any provision of a lease;
(15)“Secretary” means the Secretary of the Interior or his designee;
(16)“State” means the several States of the Union, the District of Columbia, Puerto Rico, the territories and possessions of the United States, and the Trust Territory of the Pacific Islands;
(17)“adjustment” means an amendment to a previously filed report on an obligation, and any additional payment or credit, if any, applicable thereto, to rectify an underpayment or overpayment on an obligation;
(18)“administrative proceeding” means any Department of the Interior agency process in which a demand, decision or order issued by the Secretary or a delegated State is subject to appeal or has been appealed;
(19)“assessment” means any fee or charge levied or imposed by the Secretary or a delegated State other than—
(A)the principal amount of any royalty, minimum royalty, rental bonus, net profit share or proceed of sale;
(B)any interest; or
(C)any civil or criminal penalty;
(20)“commence” means—
(A)with respect to a judicial proceeding, the service of a complaint, petition, counterclaim, cross claim, or other pleading seeking affirmative relief or seeking credit or recoupment: Provided, That if the Secretary commences a judicial proceeding against a designee, the Secretary shall give notice of that commencement to the lessee who designated the designee, but the Secretary is not required to give notice to other lessees who may be liable pursuant to section 1712(a) of this title, for the obligation that is the subject of the judicial proceeding; or
(B)with respect to a demand, the receipt by the Secretary or a delegated State or a lessee or its designee (with written notice to the lessee who designated the designee) of the demand;
(21)“credit” means the application of an overpayment (in whole or in part) against an obligation which has become due to discharge, cancel or reduce the obligation;
(22)“delegated State” means a State which, pursuant to an agreement or agreements under section 1735 of this title, performs authorities, duties, responsibilities, or activities of the Secretary;
(23)“demand” means—
(A)an order to pay issued by the Secretary or the applicable delegated State to a lessee or its designee (with written notice to the lessee who designated the designee) that has a reasonable basis to conclude that the obligation in the amount of the demand is due and owing; or
(B)a separate written request by a lessee or its designee which asserts an obligation due the lessee or its designee that provides a reasonable basis to conclude that the obligation in the amount of the demand is due and owing, but does not mean any royalty or production report, or any information contained therein, required by the Secretary or a delegated State;
(24)“designee” means the person designated by a lessee pursuant to section 1712(a) of this title, with such written designation effective on the date such designation is received by the Secretary and remaining in effect until the Secretary receives notice in writing that the designation is modified or terminated;
(25)“obligation” means—
(A)any duty of the Secretary or, if applicable, a delegated State—
(i)to take oil or gas royalty in kind; or
(ii)to pay, refund, offset, or credit monies including (but not limited to)—
(I)the principal amount of any royalty, minimum royalty, rental, bonus, net profit share or proceed of sale; or
(II)any interest; and
(B)any duty of a lessee or its designee (subject to the provisions of section 1712(a) of this title)—
(i)to deliver oil or gas royalty in kind; or
(ii)to pay, offset or credit monies including (but not limited to)—
(I)the principal amount of any royalty, minimum royalty, rental, bonus, net profit share or proceed of sale;
(II)any interest;
(III)any penalty; or
(IV)any assessment,
(26)“order to pay” means a written order issued by the Secretary or the applicable delegated State to a lessee or its designee (with notice to the lessee who designated the designee) which—
(A)asserts a specific, definite, and quantified obligation claimed to be due, and
(B)specifically identifies the obligation by lease, production month and monetary amount of such obligation claimed to be due and ordered to be paid, as well as the reason or reasons such obligation is claimed to be due, but such term does not include any other communication or action by or on behalf of the Secretary or a delegated State;
(27)“overpayment” means any payment by a lessee or its designee in excess of an amount legally required to be paid on an obligation and includes the portion of any estimated payment for a production month that is in excess of the royalties due for that month;
(28)“payment” means satisfaction, in whole or in part, of an obligation;
(29)“penalty” means a statutorily authorized civil fine levied or imposed for a violation of this chapter, any mineral leasing law, or a term or provision of a lease administered by the Secretary;
(30)“refund” means the return of an overpayment;
(31)“State concerned” means, with respect to a lease, a State which receives a portion of royalties or other payments under the mineral leasing laws from such lease;
(32)“underpayment” means any payment or nonpayment by a lessee or its designee that is less than the amount legally required to be paid on an obligation; and
(33)“United States” means the United States Government and any department, agency, or instrumentality thereof, the several States, the District of Columbia, and the territories of the United States.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 3 of the Act of June 28, 1906 (34 Stat. 539), referred to in par. (3), is not classified to the Code. “Outer Continental Shelf” as provided in the Outer Continental Shelf Lands Act (Public Law 95–372), referred to in par. (10), is defined in section 1331(a) of Title 43, Public Lands.

Amendments

1996—Par. (7). Pub. L. 104–185, § 2(1), amended par. (7) generally. Prior to amendment, par. (7) read as follows: “ ‘lessee’ means any person to whom the United States, an Indian tribe, or an Indian allottee, issues a lease, or any person who has been assigned an obligation to make royalty or other payments required by the lease;”. Pars. (17) to (25). Pub. L. 104–185, § 2(2), added pars. (17) to (25). Par. (25)(B). Pub. L. 104–200, substituted “provisions of section 1712(a)” for “provision of section 1712(a)” in introductory provisions. Pars. (26) to (33). Pub. L. 104–185, § 2(2), added pars. (26) to (33). 1988—Pars. (3), (4). Pub. L. 92–203 inserted “or which is administered by the United States pursuant to section 1613(g) of title 43” after “alienation”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1996 AmendmentAmendment by Pub. L. 104–185 applicable with respect to production of oil and gas after the first day of the month following Aug. 13, 1996, see section 11 of Pub. L. 104–185, set out as a note under section 1701 of this title.

Effective Date

of 1988 Amendment Pub. L. 92–203, § 29(f)(2), as added by Pub. L. 100–241, § 15, Feb. 3, 1988, 101 Stat. 1813, provided that: “The amendment made by paragraph (1) [amending this section] shall be effective as if originally included in section 3 of Public Law 97–451 [this section].” Applicability of 1996 AmendmentAmendment by Pub. L. 104–185 not applicable to any privately owned minerals or with respect to Indian lands, see section 9 and 10 of Pub. L. 104–185, set out as a note under section 1701 of this title.

Executive Documents

Termination of Trust Territory of the Pacific Islands For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions.

Reference

Citations & Metadata

Citation

30 U.S.C. § 1702

Title 30Mineral Lands and Mining

Last Updated

Apr 6, 2026

Release point: 119-73