§187a — Title 30 Mineral Lands and Mining | U.S. Code

Summary

Oil and gas leases can be transferred or subleased, for all or part of the land, to people who are allowed to hold such leases under the law. The transfer can give a whole share or just a part. It becomes effective on the first day of the lease month after three signed originals are filed in the proper land office, with any required bond and proof that the new holder is qualified. Until the Secretary approves, the original holder and their guarantor stay responsible for the lease. The Secretary may refuse approval only if the new holder is not qualified or the bond is not enough, but may also refuse, at his choice, transfers of a separate zone or deposit, part of a legal subdivision, or transfers of less than 640 acres (outside Alaska) or less than 2,560 acres (in Alaska) unless the transfer is the whole lease or clearly helps oil and gas development.

Title 30, §187a

Mineral Lands and Mining — Source: USLM XML via OLRC

Notwithstanding anything to the contrary in section 187 of this title, any oil or gas lease issued under the authority of this chapter may be assigned or subleased, as to all or part of the acreage included therein, subject to final approval by the Secretary and as to either a divided or undivided interest therein, to any person or persons qualified to own a lease under this chapter, and any assignment or sublease shall take effect as of the first day of the lease month following the date of filing in the proper land office of three original executed counterparts thereof, together with any required bond and proof of the qualification under this chapter of the assignee or sublessee to take or hold such lease or interest therein. Until such approval, however, the assignor or sublessor and his surety shall continue to be responsible for the performance of any and all obligations as if no assignment or sublease had been executed. The Secretary shall disapprove the assignment or sublease only for lack of qualification of the assignee or sublessee or for lack of sufficient bond: Provided, however, That the Secretary may, in his discretion, disapprove an assignment of any of the following, unless the assignment constitutes the entire lease or is demonstrated to further the development of oil and gas:

(1)A separate zone or deposit under any lease.

(2)A part of a legal subdivision.

(3)Less than 640 acres outside Alaska or of less than 2,560 acres within Alaska.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1987—Pub. L. 100–203 substituted third to fifth sentences for former third sentence which read as follows: “The Secretary shall disapprove the assignment or sublease only for lack of qualification of the assignee or sublessee or for lack of sufficient bond: Provided, however, That the Secretary may, in his discretion, disapprove an assignment of a separate zone or deposit under any lease, or of a part of a legal subdivision.” 1960—Pub. L. 86–705 amended last sentence to restrict automatic extensions after Sept. 2, 1960. 1954—Act July 29, 1954, authorized partial assignment of a lease in its extended term regardless of reason for extension.

Statutory Notes and Related Subsidiaries

Savings Provision

See note set out under section 181 of this title. Leases Issued Prior to September 2, 1960 Pub. L. 86–705, § 6, Sept. 2, 1960, 74 Stat. 790, provided in part that: “The provisions of this section 6 [amending this section] shall not be applicable to any lease issued prior to the

Effective Date

of this Act [Sept. 2, 1960].”

§187a Oil or gas leases; partial assignments