Title 30, Mineral Lands and MiningRelease 119-102

§303 Conditions Precedent to Award of Lease; Preferred Class; Bidding

Title 30 › CHAPTER 5 — LEASE OF OIL AND GAS DEPOSITS IN OR UNDER RAILROADS AND OTHER RIGHTS-OF-WAY › § 303

Last updated Aug 21, 2026|Official source

Summary

Before awarding any lease under section 301, the Secretary of the Interior must notify the owner or lessee of adjoining land and the holder of any railroad or other right of way. The notice will give a set, reasonable time to send a bid saying the dollar amount or percentage royalty they will pay for oil or gas taken through wells on the adjoining land. If both parties bid, the Secretary will give the right to the bidder he decides is most beneficial to the United States. If only one bid is received, he may award it to that bidder.

Full Legal Text

Title 30, §303

Mineral Lands and Mining, Source: USLM XML via OLRC

Prior to the award of any lease under section 301 of this title, the Secretary of the Interior shall notify the owner or lessee of adjoining lands and allow him a reasonable time, to be fixed in the notice given, within which to submit an offer or bid of the amount or percentage of compensatory royalty that such owner will agree to pay for the extraction through wells on his or its adjoining land, of the oil or gas under and from such adjoining right of way, and at the same time afford the holder of the railroad or other right of way a like opportunity within the same time to submit its bid or offer as to the amount or percentage of royalty it will agree to pay, if a lease for the extraction of the oil and gas deposits under the right of way be awarded to the holder of such right of way. In case of competing offers by the said parties in interest, the Secretary shall award the right to extract the oil and gas to the bidder, duly qualified, making the offer in his opinion most advantageous to the United States. In case but one bid or offer is received after notice duly given, he may, in his discretion, award the right to extract the oil and gas to such bidder.

Reference

Citations & Metadata

Citation

30 U.S.C. § 303

Title 30, Mineral Lands and Mining

Last Updated

Aug 21, 2026

Release point: 119-102