§7426. Cooperative or unit plans affecting Naval Petroleum Reserve Numbered 1

(a) Subject to the provisions of section 7422(c) of this title, the Secretary may contract for joint, unit, or other cooperative plans of exploration, prospecting, conservation, development, use, and operation of lands owned or controlled by the United States inside Naval Petroleum Reserve Numbered 1 and lands owned or leased by private interests-

(1) inside Naval Petroleum Reserve Numbered 1; or

(2) outside Naval Petroleum Reserve Numbered 1 on the same geologic structure.

(b) Each contract under this section shall require that the United States will be assured of receiving currently its share of the total production from each of the commercially productive zones underlying all lands covered by the contract, as determined from time to time on the basis of estimates of its original share of the quantities of recoverable oil, gas, natural gasoline, and associated hydrocarbons in those zones on the date fixed in the contract.

(c) Any party to such a contract, other than the United States, may be permitted by the contract to produce and to receive, and shall have charged to its share in the total production from any zone, petroleum in such quantities as are necessary to compensate that party-

(1) for its share of the current expenses of protecting, conserving, testing, and maintaining in good oil-field condition the lands, wells, and improvements thereon, and its real and personal taxes levied or assessed thereon; and

(2) for surrendering control of the rate of production from its lands.

The quantity of petroleum permitted to be produced as compensation for surrendering control of the rate of production may, in the discretion of the Secretary, be reduced or eliminated at any time on reasonable notice if the Secretary is not then having petroleum produced for national defense under section 7422 of this title.

(d) In no event may the quantity of petroleum produced under subsection (c) from any zone for any private contracting party exceed one-third of its share of the recoverable petroleum in that zone as estimated on the date fixed in the contract.

(e) No contract may be made under this section until the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives have been consulted as to all its details.

(Aug. 10, 1956, ch. 1041, 70A Stat. 459 ; Pub. L. 94–258, title II, §201(7), Apr. 5, 1976, 90 Stat. 309 ; Pub. L. 96–513, title V, §513(32)(A), (B), Dec. 12, 1980, 94 Stat. 2933 ; Pub. L. 98–525, title XIV, §1405(52), Oct. 19, 1984, 98 Stat. 2625 ; Pub. L. 104–106, div. A, title XV, §1502(a)(2), Feb. 10, 1996, 110 Stat. 502 ; Pub. L. 106–65, div. A, title X, §1067(1), Oct. 5, 1999, 113 Stat. 774 .)

Historical and Revision Notes

Revised section	Source (U.S. Code)	Source (Statutes at Large)
7426(a)	34 U.S.C. 524 (63d through 122d words of 1st par.).	June 4, 1920, ch. 228, (1st par., 63d through 122d words, of amended 3d and 4th provisos), 41 Stat. 813 ; June 30, 1938, ch. 851, §1, 52 Stat. 1252 ; June 17, 1944, ch. 262, 58 Stat. 280 .
7426(b), (c), (d), (e)	34 U.S.C. 524 (2d par.).	June 4, 1920, ch. 228 (2d par. of amended 3d and 4th provisos), 41 Stat. 813; June 30, 1938, ch. 851, §1, 52 Stat. 1252 ; June 17, 1944, ch. 262, 58 Stat. 281 .

In subsection (b) the words "Each contract under this section" are substituted for the words "Any contract entered into pursuant to * * * conservation, development, use, or operation" for brevity.

In subsection (c) the words "pursuant to the authority herein granted * * * conservation, maintenance and testing" are omitted as surplusage. The words "or zones" are omitted under the authority of 1 U.S.C. 1.

In subsection (d) the words "from any zone for any private contracting party" are added for clarity. The words "or zones" are omitted for the reason previously stated.

Amendments

1999-Subsec. (e). Pub. L. 106–65 substituted "and the Committee on Armed Services" for "and the Committee on National Security".

1996-Subsec. (e). Pub. L. 104–106 substituted "Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives" for "Committees on Armed Services of the Senate and the House of Representatives".

1984-Subsec. (a). Pub. L. 98–525 inserted in provisions preceding par. (1) "of this title" after "section 7422(c)".

1980-Pub. L. 96–513, §513(32)(B), substituted "Naval Petroleum Reserve Numbered 1" for "naval petroleum reserve numbered 1" in section catchline.

Subsec. (a). Pub. L. 96–513, §513(32)(A), substituted "Naval Petroleum Reserve Numbered 1" for "naval petroleum reserve numbered 1" wherever appearing.

1976-Subsec. (a). Pub. L. 94–258 substituted "Subject to the provisions of section 7422(c), the Secretary" for "The Secretary of the Navy".

Effective Date of 1980 Amendment

Amendment by Pub. L. 96–513 effective Dec. 12, 1980, see section 701(b)(3) of Pub. L. 96–513, set out as a note under section 101 of this title.

Section Referred to in Other Sections

This section is referred to in sections 7425, 7428 of this title; title 43 section 1601.