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Title 10, Armed ForcesRelease 119-102

§8724 Protection of Oil Reserves; Contracts for Conservation

Title 10 › Subtitle C — Navy and Marine Corps › PART IV — GENERAL ADMINISTRATION › CHAPTER 869 — NAVAL PETROLEUM RESERVES › § 8724

Last updated Aug 21, 2026|Official source

Summary

The Secretary may make deals with owners or leaseholders of land inside or next to naval petroleum reserves to save oil and gas and to pay for estimated oil lost by draining instead of drilling offset wells. The Secretary may also trade U.S. lands, rights to royalty production from any naval petroleum reserve, or rights to money owed the United States for wrongfully taken oil to get privately owned lands or leases inside Naval Petroleum Reserve Numbered 1. Every year the Secretary must tell Congress about all of these agreements.

Full Legal Text

Title 10, §8724

Armed Forces, Source: USLM XML via OLRC

(a)To consolidate and protect the oil lands owned by the United States, the Secretary may—
(1)contract with owners and lessees of land inside or adjoining naval petroleum reserves for—
(A)conservation of oil and gas; and
(B)compensation for estimated drainage in lieu of drilling or operating offset wells; and
(2)acquire privately owned lands or leases inside Naval Petroleum Reserve Numbered 1 by exchange of—
(A)lands of the United States inside Naval Petroleum Reserve Numbered 1;
(B)the right to royalty production from any of the naval petroleum reserves; and
(C)the right to any money due the United States as a result of the wrongful extraction of petroleum products from lands inside Naval Petroleum Reserve Numbered 1.
(b)The Secretary shall report annually to Congress all agreements under this section.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised sectionSource (U.S. Code)Source (Statutes at Large) 742434 U.S.C. 524 (4th par., less 1st proviso).
June 4, 1920, ch. 228 (4th par., less 1st proviso, of amended 3d and 4th provisos), 41 Stat. 813;
June 30, 1938, ch. 851, § 1, 52 Stat. 1252;
June 17, 1944, ch. 262, 58 Stat. 282.

Editorial Notes

Amendments

2018—Pub. L. 115–232 renumbered section 7424 of this title as this section. 1980—Subsec. (a). Pub. L. 96–513 substituted “Naval Petroleum Reserve Numbered 1” for “naval petroleum reserve numbered 1” wherever appearing. 1976—Subsec. (a). Pub. L. 94–258 struck out “of the Navy” after “Secretary”, “and oil shale” after “petroleum” in par. (1), and “in the ground” after “conservation” in subpar. (A) of par. (1). 1962—Subsec. (a). Pub. L. 87–796 inserted provisions in cl. (1) empowering the Secretary to contract with owners and lessees of land inside or adjoining oil shale reserves.

Statutory Notes and Related Subsidiaries

Effective Date

of 2018 AmendmentAmendment by Pub. L. 115–232 effective Feb. 1, 2019, with provision for the coordination of

Amendments

and special rule for certain redesignations, see section 800 of Pub. L. 115–232, set out as a note preceding section 3001 of this title.

Effective Date

of 1980 AmendmentAmendment by Pub. L. 96–513 effective Dec. 12, 1980, see section 701(b)(3) of Pub. L. 96–513, set out as a note under section 101 of this title.

Reference

Citations & Metadata

Citation

10 U.S.C. § 8724

Title 10, Armed Forces

Last Updated

Aug 21, 2026

Release point: 119-102