30 U.S.C. § 229a : US Code - Section 229A: Water struck while drilling for oil and gas

Search 30 U.S.C. § 229a : US Code - Section 229A: Water struck while drilling for oil and gas

(a) Acquisition; condition in lease
All prospecting permits and leases for oil or gas made or issued
under the provisions of this chapter shall be subject to the
condition that in case the permittee or lessee strikes water while
drilling instead of oil or gas, the Secretary of the Interior may,
when such water is of such quality and quantity as to be valuable
and usable at a reasonable cost for agricultural, domestic, or
other purposes, purchase the casing in the well at the reasonable
value thereof to be fixed under rules and regulations to be
prescribed by the Secretary.
(b) Prior leases
In cases where water wells producing such water have heretofore
been or may hereafter be drilled upon lands embraced in any
prospecting permit or lease heretofore issued under this chapter,
the Secretary may in like manner purchase the casing in such wells.
(c) Disposition
The Secretary may make such purchase and may lease or operate
such wells for the purpose of producing water and of using the same
on the public lands or of disposing of such water for beneficial
use on other lands, and where such wells have heretofore been
plugged or abandoned or where such wells have been drilled prior to
the issuance of any permit or lease by persons not in privity with
the permittee or lessee, the Secretary may develop the same for the
purposes of this section: Provided, That owners or occupants of
lands adjacent to those upon which such water wells may be
developed shall have a preference right to make beneficial use of
such water.
(d) Revolving fund
The Secretary may use so much of any funds available for the
plugging of wells as he may find necessary to start the program
provided for by this section, and thereafter he may use the
proceeds from the sale or other disposition of such water as a
revolving fund for the continuation of such program, and such
proceeds are hereby appropriated for such purpose.
(e) Operations under lease not restricted
Nothing in this section shall be construed to restrict operations
under any oil or gas lease or permit under any other provision of
this chapter.