30 U.S.C. § 209 : US Code - Section 209: Suspension, waiver, or reduction of rents or royalties to promote development or operation; extension of lease on suspension of operations and production

Search 30 U.S.C. § 209 : US Code - Section 209: Suspension, waiver, or reduction of rents or royalties to promote development or operation; extension of lease on suspension of operations and production

The Secretary of the Interior, for the purpose of encouraging the
greatest ultimate recovery of coal, oil, gas, oil shale, gilsonite
(including all vein-type solid hydrocarbons), phosphate, sodium,
potassium and sulfur, and in the interest of conservation of
natural resources, is authorized to waive, suspend, or reduce the
rental, or minimum royalty, or reduce the royalty on an entire
leasehold, or on any tract or portion thereof segregated for
royalty purposes, whenever in his judgment it is necessary to do so
in order to promote development, or whenever in his judgment the
leases cannot be successfully operated under the terms provided
therein.(!1) Provided, however, That in order to promote
development and the maximum production of tar sand, at the request
of the lessee, the Secretary shall review, prior to commencement of
commercial operations, the royalty rates established in each
combined hydrocarbon lease issued in special tar sand areas. For
purposes of this section, the term "tar sand" means any
consolidated or unconsolidated rock (other than coal, oil shale, or
gilsonite) that either: (1) contains a hydrocarbonaceous material
with a gas-free viscosity, at original reservoir temperature,
greater than 10,000 centipoise, or (2) contains a hydrocarbonaceous
material and is produced by mining or quarrying. In the event the
Secretary of the Interior, in the interest of conservation, shall
direct or shall assent to the suspension of operations and
production under any lease granted under the terms of this chapter,
any payment of acreage rental or of minimum royalty prescribed by
such lease likewise shall be suspended during such period of
suspension of operations and production; and the term of such lease
shall be extended by adding any such suspension period thereto. The
provisions of this section shall apply to all oil and gas leases
issued under this chapter, including those within an approved or
prescribed plan for unit or cooperative development and operation.
Nothing in this section shall be construed as granting to the
Secretary the authority to waive, suspend, or reduce advance
royalties.
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Repealed. Pub. L. 97-468, title VI, Sec. 615(a)(3), Jan. 14, 1983, 96 Stat. 2578
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