1. (a) To consolidate and protect the oil lands owned by the United States, the Secretary may—

   1. (1) contract with owners and lessees of land inside or adjoining naval petroleum reserves for—

      1. (A) conservation of oil and gas; and
      2. (B) compensation for estimated drainage in lieu of drilling or operating offset wells; and

   2. (2) acquire privately owned lands or leases inside Naval Petroleum Reserve Numbered 1 by exchange of—

      1. (A) lands of the United States inside Naval Petroleum Reserve Numbered 1;
      2. (B) the right to royalty production from any of the naval petroleum reserves; and
      3. (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.
2. (b) The Secretary shall report annually to Congress all agreements under this section.

(Aug. 10, 1956, ch. 1041, 70A Stat. 458; Pub. L. 87–796, § 1(4), Oct. 11, 1962, 76 Stat. 904; Pub. L. 94–258, title II, § 201(5), Apr. 5, 1976, 90 Stat. 309; Pub. L. 96–513, title V, § 513(32)(A), Dec. 12, 1980, 94 Stat. 2933.)

Amendments

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.

Effective Date of 1980 Amendment

Amendment 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.