30 U.S.C. § 226 : US Code - Section 226: Lease of oil and gas lands

    (a) Authority of Secretary
      All lands subject to disposition under this chapter which are
    known or believed to contain oil or gas deposits may be leased by
    the Secretary.
    (b) Lands within known geologic structure of a producing oil or gas
      field; lands within special tar sand areas; competitive bidding;
      royalties
      (1)(A) All lands to be leased which are not subject to leasing
    under paragraphs (2) and (3) of this subsection shall be leased as
    provided in this paragraph to the highest responsible qualified
    bidder by competitive bidding under general regulations in units of
    not more than 2,560 acres, except in Alaska, where units shall be
    not more than 5,760 acres. Such units shall be as nearly compact as
    possible. Lease sales shall be conducted by oral bidding. Lease
    sales shall be held for each State where eligible lands are
    available at least quarterly and more frequently if the Secretary
    of the Interior determines such sales are necessary. A lease shall
    be conditioned upon the payment of a royalty at a rate of not less
    than 12.5 percent in amount or value of the production removed or
    sold from the lease. The Secretary shall accept the highest bid
    from a responsible qualified bidder which is equal to or greater
    than the national minimum acceptable bid, without evaluation of the
    value of the lands proposed for lease. Leases shall be issued
    within 60 days following payment by the successful bidder of the
    remainder of the bonus bid, if any, and the annual rental for the
    first lease year. All bids for less than the national minimum
    acceptable bid shall be rejected. Lands for which no bids are
    received or for which the highest bid is less than the national
    minimum acceptable bid shall be offered promptly within 30 days for
    leasing under subsection (c) of this section and shall remain
    available for leasing for a period of 2 years after the competitive
    lease sale.
      (B) The national minimum acceptable bid shall be $2 per acre for
    a period of 2 years from December 22, 1987. Thereafter, the
    Secretary, subject to paragraph (2)(B), may establish by regulation
    a higher national minimum acceptable bid for all leases based upon
    a finding that such action is necessary: (i) to enhance financial
    returns to the United States; and (ii) to promote more efficient
    management of oil and gas resources on Federal lands. Ninety days
    before the Secretary makes any change in the national minimum
    acceptable bid, the Secretary shall notify the Committee on Natural
    Resources of the United States House of Representatives and the
    Committee on Energy and Natural Resources of the United States
    Senate. The proposal or promulgation of any regulation to establish
    a national minimum acceptable bid shall not be considered a major
    Federal action subject to the requirements of section 4332(2)(C) of
    title 42.
      (2)(A)(i) If the lands to be leased are within a special tar sand
    area, they shall be leased to the highest responsible qualified
    bidder by competitive bidding under general regulations in units of
    not more than 5,760 acres, which shall be as nearly compact as
    possible, upon the payment by the lessee of such bonus as may be
    accepted by the Secretary.
      (ii) Royalty shall be 12(!1/2) per centum in amount or value of
    production removed or sold from the lease, subject to subsection
    (k)(1)(c) (!1) of this section.

      (iii) The Secretary may lease such additional lands in special
    tar sand areas as may be required in support of any operations
    necessary for the recovery of tar sands.
      (iv) No lease issued under this paragraph shall be included in
    any chargeability limitation associated with oil and gas leases.
      (B) For any area that contains any combination of tar sand and
    oil or gas (or both), the Secretary may issue under this chapter,
    separately - 
        (i) a lease for exploration for and extraction of tar sand; and
        (ii) a lease for exploration for and development of oil and
      gas.

      (C) A lease issued for tar sand shall be issued using the same
    bidding process, annual rental, and posting period as a lease
    issued for oil and gas, except that the minimum acceptable bid
    required for a lease issued for tar sand shall be $2 per acre.
      (D) The Secretary may waive, suspend, or alter any requirement
    under section 183 of this title that a permittee under a permit
    authorizing prospecting for tar sand must exercise due diligence,
    to promote any resource covered by a combined hydrocarbon lease.
      (3)(A) If the United States held a vested future interest in a
    mineral estate that, immediately prior to becoming a vested present
    interest, was subject to a lease under which oil or gas was being
    produced, or had a well capable of producing, in paying quantities
    at an annual average production volume per well per day of either
    not more than 15 barrels per day of oil or condensate, or not more
    than 60,000 cubic feet of gas, the holder of the lease may elect to
    continue the lease as a noncompetitive lease under subsection
    (c)(1) of this section.
      (B) An election under this paragraph is effective - 
        (i) in the case of an interest which vested after January 1,
      1990, and on or before October 24, 1992, if the election is made
      before the date that is 1 year after October 24, 1992;
        (ii) in the case of an interest which vests within 1 year after
      October 24, 1992, if the election is made before the date that is
      2 years after October 24, 1992; and
        (iii) in any case other than those described in clause (i) or
      (ii), if the election is made prior to the interest becoming a
      vested present interest.

      (C) Notwithstanding the consent requirement referenced in section
    352 of this title, the Secretary shall issue a noncompetitive lease
    under subsection (c)(1) of this section to a holder who makes an
    election under subparagraph (A) and who is qualified to hold a
    lease under this chapter. Such lease shall be subject to all terms
    and conditions under this chapter that are applicable to leases
    issued under subsection (c)(1) of this section.
      (D) A lease issued pursuant to this paragraph shall continue so
    long as oil or gas continues to be produced in paying quantities.
      (E) This paragraph shall apply only to those lands under the
    administration of the Secretary of Agriculture where the United
    States acquired an interest in such lands pursuant to the Act of
    March 1, 1911 (36 Stat. 961 and following).
    (c) Lands subject to leasing under subsection (b); first qualified
      applicant
      (1) If the lands to be leased are not leased under subsection
    (b)(1) of this section or are not subject to competitive leasing
    under subsection (b)(2) of this section, the person first making
    application for the lease who is qualified to hold a lease under
    this chapter shall be entitled to a lease of such lands without
    competitive bidding, upon payment of a non-refundable application
    fee of at least $75. A lease under this subsection shall be
    conditioned upon the payment of a royalty at a rate of 12.5 percent
    in amount or value of the production removed or sold from the
    lease. Leases shall be issued within 60 days of the date on which
    the Secretary identifies the first responsible qualified applicant.
      (2)(A) Lands (i) which were posted for sale under subsection
    (b)(1) of this section but for which no bids were received or for
    which the highest bid was less than the national minimum acceptable
    bid and (ii) for which, at the end of the period referred to in
    subsection (b)(1) of this section no lease has been issued and no
    lease application is pending under paragraph (1) of this
    subsection, shall again be available for leasing only in accordance
    with subsection (b)(1) of this section.
      (B) The land in any lease which is issued under paragraph (1) of
    this subsection or under subsection (b)(1) of this section which
    lease terminates, expires, is cancelled or is relinquished shall
    again be available for leasing only in accordance with subsection
    (b)(1) of this section.
    (d) Annual rentals
      All leases issued under this section, as amended by the Federal
    Onshore Oil and Gas Leasing Reform Act of 1987, shall be
    conditioned upon payment by the lessee of a rental of not less than
    $1.50 per acre per year for the first through fifth years of the
    lease and not less than $2 per acre per year for each year
    thereafter. A minimum royalty in lieu of rental of not less than
    the rental which otherwise would be required for that lease year
    shall be payable at the expiration of each lease year beginning on
    or after a discovery of oil or gas in paying quantities on the
    lands leased.
    (e) Primary terms
      Competitive and noncompetitive leases issued under this section
    shall be for a primary term of 10 years: Provided, however, That
    competitive leases issued in special tar sand areas shall also be
    for a primary term of ten years. Each such lease shall continue so
    long after its primary term as oil or gas is produced in paying
    quantities. Any lease issued under this section for land on which,
    or for which under an approved cooperative or unit plan of
    development or operation, actual drilling operations were commenced
    prior to the end of its primary term and are being diligently
    prosecuted at that time shall be extended for two years and so long
    thereafter as oil or gas is produced in paying quantities.
    (f) Notice of proposed action; posting of notice; terms and maps
      At least 45 days before offering lands for lease under this
    section, and at least 30 days before approving applications for
    permits to drill under the provisions of a lease or substantially
    modifying the terms of any lease issued under this section, the
    Secretary shall provide notice of the proposed action. Such notice
    shall be posted in the appropriate local office of the leasing and
    land management agencies. Such notice shall include the terms or
    modified lease terms and maps or a narrative description of the
    affected lands. Where the inclusion of maps in such notice is not
    practicable, maps of the affected lands shall be made available to
    the public for review. Such maps shall show the location of all
    tracts to be leased, and of all leases already issued in the
    general area. The requirements of this subsection are in addition
    to any public notice required by other law.
    (g) Regulation of surface-disturbing activities; approval of plan
      of operations; bond or surety; failure to comply with reclamation
      requirements as barring lease; opportunity to comply with
      requirements
      The Secretary of the Interior, or for National Forest lands, the
    Secretary of Agriculture, shall regulate all surface-disturbing
    activities conducted pursuant to any lease issued under this
    chapter, and shall determine reclamation and other actions as
    required in the interest of conservation of surface resources. No
    permit to drill on an oil and gas lease issued under this chapter
    may be granted without the analysis and approval by the Secretary
    concerned of a plan of operations covering proposed surface-
    disturbing activities within the lease area. The Secretary
    concerned shall, by rule or regulation, establish such standards as
    may be necessary to ensure that an adequate bond, surety, or other
    financial arrangement will be established prior to the commencement
    of surface-disturbing activities on any lease, to ensure the
    complete and timely reclamation of the lease tract, and the
    restoration of any lands or surface waters adversely affected by
    lease operations after the abandonment or cessation of oil and gas
    operations on the lease. The Secretary shall not issue a lease or
    leases or approve the assignment of any lease or leases under the
    terms of this section to any person, association, corporation, or
    any subsidiary, affiliate, or person controlled by or under common
    control with such person, association, or corporation, during any
    period in which, as determined by the Secretary of the Interior or
    Secretary of Agriculture, such entity has failed or refused to
    comply in any material respect with the reclamation requirements
    and other standards established under this section for any prior
    lease to which such requirements and standards applied. Prior to
    making such determination with respect to any such entity the
    concerned Secretary shall provide such entity with adequate
    notification and an opportunity to comply with such reclamation
    requirements and other standards and shall consider whether any
    administrative or judicial appeal is pending. Once the entity has
    complied with the reclamation requirement or other standard
    concerned an oil or gas lease may be issued to such entity under
    this chapter.
    (h) National Forest System Lands
      The Secretary of the Interior may not issue any lease on National
    Forest System Lands reserved from the public domain over the
    objection of the Secretary of Agriculture.
    (i) Termination
      No lease issued under this section which is subject to
    termination because of cessation of production shall be terminated
    for this cause so long as reworking or drilling operations which
    were commenced on the land prior to or within sixty days after
    cessation of production are conducted thereon with reasonable
    diligence, or so long as oil or gas is produced in paying
    quantities as a result of such operations. No lease issued under
    this section shall expire because operations or production is
    suspended under any order, or with the consent, of the Secretary.
    No lease issued under this section covering lands on which there is
    a well capable of producing oil or gas in paying quantities shall
    expire because the lessee fails to produce the same unless the
    lessee is allowed a reasonable time, which shall be not less than
    sixty days after notice by registered or certified mail, within
    which to place such well in producing status or unless, after such
    status is established, production is discontinued on the leased
    premises without permission granted by the Secretary under the
    provisions of this chapter.
    (j) Drainage agreements; primary term of lease, extension
      Whenever it appears to the Secretary that lands owned by the
    United States are being drained of oil or gas by wells drilled on
    adjacent lands, he may negotiate agreements whereby the United
    States, or the United States and its lessees, shall be compensated
    for such drainage. Such agreements shall be made with the consent
    of the lessees, if any, affected thereby. If such agreement is
    entered into, the primary term of any lease for which compensatory
    royalty is being paid, or any extension of such primary term, shall
    be extended for the period during which such compensatory royalty
    is paid and for a period of one year from discontinuance of such
    payment and so long thereafter as oil or gas is produced in paying
    quantities.
    (k) Mining claims; suspension of running time of lease
      If, during the primary term or any extended term of any lease
    issued under this section, a verified statement is filed by any
    mining claimant pursuant to subsection (c) of section 527 of this
    title, whether such filing occur prior to September 2, 1960 or
    thereafter, asserting the existence of a conflicting unpatented
    mining claim or claims upon which diligent work is being prosecuted
    as to any lands covered by the lease, the running of time under
    such lease shall be suspended as to the lands involved from the
    first day of the month following the filing of such verified
    statement until a final decision is rendered in the matter.
    (l) Exchange of leases; conditions
      The Secretary of the Interior shall, upon timely application
    therefor, issue a new lease in exchange for any lease issued for a
    term of twenty years, or any renewal thereof, or any lease issued
    prior to August 8, 1946, in exchange for a twenty-year lease, such
    new lease to be for a primary term of five years and so long
    thereafter as oil or gas is produced in paying quantities and at a
    royalty rate of not less than 12 1/2  per centum in amount or value
    of the production removed or sold from such leases, except that the
    royalty rate shall be 12 1/2  per centum in amount or value of the
    production removed or sold from said leases as to (1) such leases,
    or such parts of the lands subject thereto and the deposits
    underlying the same, as are not believed to be within the
    productive limits of any producing oil or gas deposit, as such
    productive limits are found by the Secretary to have existed on
    August 8, 1946; and (2) any production on a lease from an oil or
    gas deposit which was discovered after May 27, 1941, by a well or
    wells drilled within the boundaries of the lease, and which is
    determined by the Secretary to be a new deposit; and (3) any
    production on or allocated to a lease pursuant to an approved
    cooperative or unit plan of development or operation from an oil or
    gas deposit which was discovered after May 27, 1941, on land
    committed to such plan, and which is determined by the Secretary to
    be a new deposit, where such lease, or a lease for which it is
    exchanged, was included in such plan at the time of discovery or
    was included in a duly executed and filed application for the
    approval of such plan at the time of discovery.
    (m) Cooperative or unit plan; authority of Secretary of the
      Interior to alter or modify; communitization or drilling
      agreements; term of lease, conditions; Secretary to approve
      operating, drilling or development contracts, and subsurface
      storage
      For the purpose of more properly conserving the natural resources
    of any oil or gas pool, field, or like area, or any part thereof
    (whether or not any part of said oil or gas pool, field, or like
    area, is then subject to any cooperative or unit plan of
    development or operation), lessees thereof and their
    representatives may unite with each other, or jointly or separately
    with others, in collectively adopting and operating under a
    cooperative or unit plan of development or operation of such pool,
    field, or like area, or any part thereof, whenever determined and
    certified by the Secretary of the Interior to be necessary or
    advisable in the public interest. The Secretary is thereunto
    authorized, in his discretion, with the consent of the holders of
    leases involved, to establish, alter, change, or revoke drilling,
    producing, rental, minimum royalty, and royalty requirements of
    such leases and to make such regulations with reference to such
    leases, with like consent on the part of the lessees, in connection
    with the institution and operation of any such cooperative or unit
    plan as he may deem necessary or proper to secure the proper
    protection of the public interest. The Secretary may provide that
    oil and gas leases hereafter issued under this chapter shall
    contain a provision requiring the lessee to operate under such a
    reasonable cooperative or unit plan, and he may prescribe such a
    plan under which such lessee shall operate, which shall adequately
    protect the rights of all parties in interest, including the United
    States.
      Any plan authorized by the preceding paragraph which includes
    lands owned by the United States may, in the discretion of the
    Secretary, contain a provision whereby authority is vested in the
    Secretary of the Interior, or any such person, committee, or State
    or Federal officer or agency as may be designated in the plan, to
    alter or modify from time to time the rate of prospecting and
    development and the quantity and rate of production under such
    plan. All leases operated under any such plan approved or
    prescribed by the Secretary shall be excepted in determining
    holdings or control under the provisions of any section of this
    chapter.
      When separate tracts cannot be independently developed and
    operated in conformity with an established well-spacing or
    development program, any lease, or a portion thereof, may be pooled
    with other lands, whether or not owned by the United States, under
    a communitization or drilling agreement providing for an
    apportionment of production or royalties among the separate tracts
    of land comprising the drilling or spacing unit when determined by
    the Secretary of the Interior to be in the public interest, and
    operations or production pursuant to such an agreement shall be
    deemed to be operations or production as to each such lease
    committed thereto.
      Any lease issued for a term of twenty years, or any renewal
    thereof, or any portion of such lease that has become the subject
    of a cooperative or unit plan of development or operation of a
    pool, field, or like area, which plan has the approval of the
    Secretary of the Interior, shall continue in force until the
    termination of such plan. Any other lease issued under any section
    of this chapter which has heretofore or may hereafter be committed
    to any such plan that contains a general provision for allocation
    of oil or gas shall continue in force and effect as to the land
    committed so long as the lease remains subject to the plan:
    Provided, That production is had in paying quantities under the
    plan prior to the expiration date of the term of such lease. Any
    lease heretofore or hereafter committed to any such plan embracing
    lands that are in part within and in part outside of the area
    covered by any such plan shall be segregated into separate leases
    as to the lands committed and the lands not committed as of the
    effective date of unitization: Provided, however, That any such
    lease as to the nonunitized portion shall continue in force and
    effect for the term thereof but for not less than two years from
    the date of such segregation and so long thereafter as oil or gas
    is produced in paying quantities. The minimum royalty or discovery
    rental under any lease that has become subject to any cooperative
    or unit plan of development or operation, or other plan that
    contains a general provision for allocation of oil or gas, shall be
    payable only with respect to the lands subject to such lease to
    which oil or gas shall be allocated under such plan. Any lease
    which shall be eliminated from any such approved or prescribed
    plan, or from any communitization or drilling agreement authorized
    by this section, and any lease which shall be in effect at the
    termination of any such approved or prescribed plan, or at the
    termination of any such communitization or drilling agreement,
    unless relinquished, shall continue in effect for the original term
    thereof, but for not less than two years, and so long thereafter as
    oil or gas is produced in paying quantities.
      The Secretary of the Interior is hereby authorized, on such
    conditions as he may prescribe, to approve operating, drilling, or
    development contracts made by one or more lessees of oil or gas
    leases, with one or more persons, associations, or corporations
    whenever, in his discretion, the conservation of natural products
    or the public convenience or necessity may require it or the
    interests of the United States may be best subserved thereby. All
    leases operated under such approved operating, drilling, or
    development contracts, and interests thereunder, shall be excepted
    in determining holdings or control under the provisions of this
    chapter.
      The Secretary of the Interior, to avoid waste or to promote
    conservation of natural resources, may authorize the subsurface
    storage of oil or gas, whether or not produced from federally owned
    lands, in lands leased or subject to lease under this chapter. Such
    authorization may provide for the payment of a storage fee or
    rental on such stored oil or gas or, in lieu of such fee or rental,
    for a royalty other than that prescribed in the lease when such
    stored oil or gas is produced in conjunction with oil or gas not
    previously produced. Any lease on which storage is so authorized
    shall be extended at least for the period of storage and so long
    thereafter as oil or gas not previously produced is produced in
    paying quantities.
    (n) Conversion of oil and gas leases and claims on hydrocarbon
      resources to combined hydrocarbon leases for primary term of 10
      years; application
      (1)(A) The owner of (1) an oil and gas lease issued prior to
    November 16, 1981, or (2) a valid claim to any hydrocarbon
    resources leasable under this section based on a mineral location
    made prior to January 21, 1926, and located within a special tar
    sand area shall be entitled to convert such lease or claim to a
    combined hydrocarbon lease for a primary term of ten years upon the
    filing of an application within two years from November 16, 1981,
    containing an acceptable plan of operations which assures
    reasonable protection of the environment and diligent development
    of those resources requiring enhanced recovery methods of
    development or mining. For purposes of conversion, no claim shall
    be deemed invalid solely because it was located as a placer
    location rather than a lode location or vice versa, notwithstanding
    any previous adjudication on that issue.
      (B) The Secretary shall issue final regulations to implement this
    section within six months of November 16, 1981. If any oil and gas
    lease eligible for conversion under this section would otherwise
    expire after November 16, 1981, and before six months following the
    issuance of implementing regulations, the lessee may preserve his
    conversion right under such lease for a period ending six months
    after the issuance of implementing regulations by filing with the
    Secretary, before the expiration of the lease, a notice of intent
    to file an application for conversion. Upon submission of a
    complete plan of operations in substantial compliance with the
    regulations promulgated by the Secretary for the filing of such
    plans, the Secretary shall suspend the running of the term of any
    oil and gas lease proposed for conversion until the plan is finally
    approved or disapproved. The Secretary shall act upon a proposed
    plan of operations within fifteen months of its submittal.
      (C) When an existing oil and gas lease is converted to a combined
    hydrocarbon lease, the royalty shall be that provided for in the
    original oil and gas lease and for a converted mining claim, 12 1/2
     per centum in amount or value of production removed or sold from
    the lease.
      (2) Except as provided in this section, nothing in the Combined
    Hydrocarbon Leasing Act of 1981 shall be construed to diminish or
    increase the rights of any lessee under any oil and gas lease
    issued prior to November 16, 1981.
    (o) Certain outstanding oil and gas deposits
      (1) Prior to the commencement of surface-disturbing activities
    relating to the development of oil and gas deposits on lands
    described under paragraph (5), the Secretary of Agriculture shall
    require, pursuant to regulations promulgated by the Secretary, that
    such activities be subject to terms and conditions as provided
    under paragraph (2).
      (2) The terms and conditions referred to in paragraph (1) shall
    require that reasonable advance notice be furnished to the
    Secretary of Agriculture at least 60 days prior to the commencement
    of surface disturbing activities.
      (3) Advance notice under paragraph (2) shall include each of the
    following items of information:
        (A) A designated field representative.
        (B) A map showing the location and dimensions of all
      improvements, including but not limited to, well sites and road
      and pipeline accesses.
        (C) A plan of operations, of an interim character if necessary,
      setting forth a schedule for construction and drilling.
        (D) A plan of erosion and sedimentation control.
        (E) Proof of ownership of mineral title.

    Nothing in this subsection shall be construed to affect any
    authority of the State in which the lands concerned are located to
    impose any requirements with respect to such oil and gas
    operations.
      (4) The person proposing to develop oil and gas deposits on lands
    described under paragraph (5) shall either - 
        (A) permit the Secretary to market merchantable timber owned by
      the United States on lands subject to such activities; or
        (B) arrange to purchase merchantable timber on lands subject to
      such surface disturbing activities from the Secretary of
      Agriculture, or otherwise arrange for the disposition of such
      merchantable timber, upon such terms and upon such advance notice
      of the items referred to in subparagraphs (A) through (E) of
      paragraph (3) as the Secretary may accept.

      (5)(A) The lands referred to in this subsection are those lands
    referenced in subparagraph (B) which are under the administration
    of the Secretary of Agriculture where the United States acquired an
    interest in such lands pursuant to the Act of March 1, 1911 (36
    Stat. 961 and following), but does not have an interest in oil and
    gas deposits that may be present under such lands. This subsection
    does not apply to any such lands where, under the provisions of its
    acquisition of an interest in the lands, the United States is to
    acquire any oil and gas deposits that may be present under such
    lands in the future but such interest has not yet vested with the
    United States.
      (B) This subsection shall only apply in the Allegheny National
    Forest.
    (p) Deadlines for consideration of applications for permits
      (1) In general
        Not later than 10 days after the date on which the Secretary
      receives an application for any permit to drill, the Secretary
      shall - 
          (A) notify the applicant that the application is complete; or
          (B) notify the applicant that information is missing and
        specify any information that is required to be submitted for
        the application to be complete.
      (2) Issuance or deferral
        Not later than 30 days after the applicant for a permit has
      submitted a complete application, the Secretary shall - 
          (A) issue the permit, if the requirements under the National
        Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and
        other applicable law have been completed within such timeframe;
        or
          (B) defer the decision on the permit and provide to the
        applicant a notice - 
            (i) that specifies any steps that the applicant could take
          for the permit to be issued; and
            (ii) a list of actions that need to be taken by the agency
          to complete compliance with applicable law together with
          timelines and deadlines for completing such actions.
      (3) Requirements for deferred applications
        (A) In general
          If the Secretary provides notice under paragraph (2)(B), the
        applicant shall have a period of 2 years from the date of
        receipt of the notice in which to complete all requirements
        specified by the Secretary, including providing information
        needed for compliance with the National Environmental Policy
        Act of 1969.
        (B) Issuance of decision on permit
          If the applicant completes the requirements within the period
        specified in subparagraph (A), the Secretary shall issue a
        decision on the permit not later than 10 days after the date of
        completion of the requirements described in subparagraph (A),
        unless compliance with the National Environmental Policy Act of
        1969 and other applicable law has not been completed within
        such timeframe.
        (C) Denial of permit
          If the applicant does not complete the requirements within
        the period specified in subparagraph (A) or if the applicant
        does not comply with applicable law, the Secretary shall deny
        the permit.