§1608 — Title 43 Public Lands | U.S. Code

Summary

Requires that 2 percent of the value of minerals and 2 percent of all rentals and bonuses from mineral leases in Alaska be paid into the Alaska Native Fund. This rule applies to minerals covered by the Mineral Leasing Act of 1920 and to conditional or subsumed State leases under the Alaska Statehood Act (sections 6(g) and 6(h)). For certain State leases the 2 percent payments must be made within 60 days after the State gets the money, and bonuses from the September 1969 sale and rentals before December 18, 1971 are excluded. Any patent the State later receives must keep the same 2 percent royalty and 2 percent of future rentals and bonuses for the Fund. The United States must also deduct the same 2 percent amounts from Federal mineral revenues after December 18, 1971 before dividing shares under the Alaska Statehood Act. The U.S. can enforce these payments for the benefit of Alaska Natives and can withhold money otherwise due the State to cover missed payments. Payments for estimated oil or gas drainage and royalties taken in kind must be treated as if paid in cash. Payments into the Fund stop once $500,000,000 (less certain advance payments under section 407 of the Trans-Alaska Pipeline Authorization Act) has been paid; after reimbursement to the Treasury and that total is reached, the rule ends. These rules do not cover Outer Continental Shelf revenues.

Title 43, §1608

Public Lands — Source: USLM XML via OLRC

(a)The provisions of this section shall apply to all minerals that are subject to disposition under the Mineral Leasing Act of 1920, as amended and supplemented [30 U.S.C. 181 et seq.].

(b)With respect to conditional leases and sales of minerals heretofore or hereafter made pursuant to section 6(g) of the Alaska Statehood Act, and with respect to mineral leases of the United States that are or may be subsumed by the State under section 6(h) of the Alaska Statehood Act, until such time as the provisions of subsection (c) become operative the State shall pay into the Alaska Native Fund from the royalties, rentals, and bonuses hereafter received by the State (1) a royalty of 2 per centum upon the gross value (as such gross value is determined for royalty purposes under such leases or sales) of such minerals produced or removed from such lands, and (2) 2 per centum of all rentals and bonuses under such leases or sales, excluding bonuses received by the State at the September 1969 sale of minerals from tentatively approved lands and excluding rentals received pursuant to such sale before December 18, 1971. Such payment shall be made within sixty days from the date the revenues are received by the State.

(c)Each patent hereafter issued to the State under the Alaska Statehood Act, including a patent of lands heretofore selected and tentatively approved, shall reserve for the benefit of the Natives, and for payment into the Alaska Native Fund, (1) a royalty of 2 per centum upon the gross value (as such gross value is determined for royalty purposes under any disposition by the State) of the minerals thereafter produced or removed from such lands, and (2) 2 per centum of all revenues thereafter derived by the State from rentals and bonuses from the disposition of such minerals.

(d)All bonuses, rentals, and royalties received by the United States after December 18, 1971, from the disposition by it of such minerals in public lands in Alaska shall be distributed as provided in the Alaska Statehood Act, except that prior to calculating the shares of the State and the United States as set forth in such Act, (1) a royalty of 2 per centum upon the gross value of such minerals produced (as such gross value is determined for royalty purposes under the sale or lease), and (2) 2 per centum of all rentals and bonuses shall be deducted and paid into the Alaska Native Fund. The respective shares of the State and the United States shall be calculated on the remaining balance.

(e)The provisions of this section shall be enforceable by the United States for the benefit of the Natives, and in the event of default by the State in making the payments required, in addition to any other remedies provided by law, there shall be deducted annually by the Secretary of the Treasury from any grant-in-aid or from any other sums payable to the State under any provision of Federal law an amount equal to any such underpayment, which amount shall be deposited in the Fund.

(f)Revenues received by the United States or the State as compensation for estimated drainage of oil or gas shall, for the purposes of this section, be regarded as revenues from the disposition of oil and gas. In the event the United States or the State elects to take royalties in kind, there shall be paid into the Fund on account thereof an amount equal to the royalties that would have been paid into the Fund under the provisions of this section had the royalty been taken in cash.

(g)The payments required by this section shall continue only until a sum of $500,000,000 has been paid into the Alaska Native Fund less the total of advance payments paid into the Alaska Native Fund pursuant to section 407 of the Trans-Alaska Pipeline Authorization Act. Thereafter, payments which would otherwise go into the Alaska Native Fund will be made to the United States Treasury as reimbursement for the advance payments authorized by section 407 of the Trans-Alaskan Pipeline Authorization Act. The provisions of this section shall no longer apply, and the reservation required in patents under this section shall be of no further force and effect, after a total sum of $500,000,000 has been paid to the Alaska Native Fund and to the United States Treasury pursuant to this subsection.

(h)When computing the final payment into the Fund the respective shares of the United States and the State with respect to payments to the Fund required by this section shall be determined pursuant to this subsection and in the following order:

(1)first, from sources identified under subsections (b) and (c) hereof; and

(2)then, from sources identified under subsection (d) hereof.

(i)The provisions of this section do not apply to mineral revenues received from the Outer Continental Shelf.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Mineral Leasing Act of 1920, referred to in subsec. (a), is act Feb. 25, 1920, ch. 85, 41 Stat. 437, known as the Mineral Leasing Act, which is classified generally to chapter 3A (§ 181 et seq.) of Title 30, Mineral Lands and Mining. For complete classification of this Act to the Code, see

Short Title

note set out under section 181 of Title 30 and Tables. The Alaska Statehood Act, referred to in subsecs. (b), (c), and (d), is Pub. L. 85–508, July 7, 1958, 72 Stat. 339, which is set out as a note preceding section 21 of Title 48. For complete classification of this Act to the Code, see Tables. section 407 of the Trans-Alaska Pipeline Authorization Act, referred to in subsec. (g), probably means section 407(a) of Pub. L. 93–153, which is set out as a note below.

Amendments

1973—Subsec. (g). Pub. L. 93–153 inserted provisions covering advance payments into the Alaska Native Fund pursuant to section 407 of the Trans-Alaska Pipeline Authorization Act and the reimbursement of the United States Treasury for payments made.

Statutory Notes and Related Subsidiaries

Advance Payments to Alaska Natives Until Commencement of Deliveries of North Slope Crude Oil to Pipeline Pub. L. 93–153, title IV, § 407(a), Nov. 16, 1973, 87 Stat. 591, authorized $5,000,000 to be paid from the United States Treasury to the Alaska Native Fund every six months of each fiscal year beginning with the fiscal year ending June 30, 1976, as advance payments chargeable against revenues paid under this section until delivery of North Slope crude oil to a pipeline commenced.

§1608 Revenue Sharing