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

Summary

You may assign or sublease an oil or gas lease, for all or part of the acres and as a divided or undivided interest, but only to someone who is allowed to hold a lease and only after the Secretary gives final approval. The assignment 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 the new owner qualifies. Until approved, the original lessee and their surety must keep meeting all lease duties. The Secretary can refuse approval if the new person is not qualified or the bond is not enough. The Secretary may also refuse certain partial transfers of a separate zone or deposit, part of a legal subdivision, or parcels smaller than 640 acres outside Alaska or smaller than 2,560 acres in Alaska, unless the transfer is the whole lease or clearly helps develop the oil or gas.

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