§4b Cooperation with individuals, municipalities, etc.; contracts with owners; agreements as to prices

Summary

The heads of the Interior and Commerce departments may make formal agreements with private people, companies, states, cities, schools, and other groups to carry out work under this law. Before drilling on land where the minerals do not belong to the United States, those two department heads must sign contracts with the owners or lessees of the mineral rights. The contracts must say that if potash or oil is found and sold, the owners or lessees must pay the government and its partners at least 2½% of the sale value. Those payments continue until the total royalties equal the exploration costs as decided by the two department heads. Any federal claims for reimbursement under the contracts end twenty years after the contracts are approved, unless everyone agrees to end them sooner. The contracts cannot stop the government from choosing drilling spots or doing exploration work, so long as those choices do not unreasonably harm the surface or buildings. The contracts must also say the United States is not liable for damages from reasonable surface use needed to do the work.