30 U.S.C. § 192 : US Code - Section 192: Payment of royalties in oil or gas; sale of such oil or gas

Search 30 U.S.C. § 192 : US Code - Section 192: Payment of royalties in oil or gas; sale of such oil or gas

All royalty accruing to the United States under any oil or gas
lease or permit under this chapter on demand of the Secretary of
the Interior shall be paid in oil or gas.
Upon granting any oil or gas lease under this chapter, and from
time to time thereafter during said lease, the Secretary of the
Interior shall, except whenever in his judgment it is desirable to
retain the same for the use of the United States, offer for sale
for such period as he may determine, upon notice and advertisement
on sealed bids or at public auction, all royalty oil and gas
accruing or reserved to the United States under such lease. Such
advertisement and sale shall reserve to the Secretary of the
Interior the right to reject all bids whenever within his judgment
the interest of the United States demands; and in cases where no
satisfactory bid is received or where the accepted bidder fails to
complete the purchase, or where the Secretary of the Interior shall
determine that it is unwise in the public interest to accept the
offer of the highest bidder, the Secretary of the Interior, within
his discretion, may readvertise such royalty for sale, or sell at
private sale at not less than the market price for such period, or
accept the value thereof from the lessee: Provided, That inasmuch
as the public interest will be served by the sale of royalty oil to
refineries not having their own source of supply for crude oil, the
Secretary of the Interior, when he determines that sufficient
supplies of crude oil are not available in the open market to such
refineries, is authorized and directed to grant preference to such
refineries in the sale of oil under the provisions of this section,
for processing or use in such refineries and not for resale in
kind, and in so doing may sell to such refineries at private sale
at not less than the market price any royalty oil accruing or
reserved to the United States under leases issued pursuant to this
chapter: Provided further, That in selling such royalty oil the
Secretary of the Interior may at his discretion prorate such oil
among such refineries in the area in which the oil is produced:
Provided, however, That pending the making of a permanent contract
for the sale of any royalty, oil or gas as herein provided, the
Secretary of the Interior may sell the current product at private
sale, at not less than the market price: And provided further, That
any royalty, oil, or gas may be sold at not less than the market
price at private sale to any department or agency of the United
States.