30 U.S.C. § 187a : US Code - Section 187A: Oil or gas leases; partial assignments

Search 30 U.S.C. § 187a : US Code - Section 187A: Oil or gas leases; partial assignments

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.
Requests for approval of assignment or sublease shall be processed
promptly by the Secretary. Except where the assignment or sublease
is not in accordance with applicable law, the approval shall be
given within 60 days of the date of receipt by the Secretary of a
request for such approval. Upon approval of any assignment or
sublease, the assignee or sublessee shall be bound by the terms of
the lease to the same extent as if such assignee or sublessee were
the original lessee, any conditions in the assignment or sublease
to the contrary notwithstanding. Any partial assignment of any
lease shall segregate the assigned and retained portions thereof,
and as above provided, release and discharge the assignor from all
obligations thereafter accruing with respect to the assigned lands;
and such segregated leases shall continue in full force and effect
for the primary term of the original lease, but for not less than
two years after the date of discovery of oil or gas in paying
quantities upon any other segregated portion of the lands
originally subject to such lease. Assignments under this section
may also be made of parts of leases which are in their extended
term because of any provision of this chapter. Upon the segregation
by an assignment of a lease issued after September 2, 1960 and held
beyond its primary term by production, actual or suspended, or the
payment of compensatory royalty, the segregated lease of an
undeveloped, assigned, or retained part shall continue for two
years, and so long thereafter as oil or gas is produced in paying
quantities.