Page:United States Statutes at Large Volume 58 Part 1.djvu/301

 58 STAT.] 78TH CONG., 2D SESS.-CH. 262 -JUNE 17, 1944 shall from time to time reexamine the need for such production so authorized and if he shall find that the quantity of such production so authorized is no longer required for the. national defense then the quantity of such production shall be reduced to the amount currently required for the national defense; and to use, store, exchange for other petroleum or refined products, or sell the oil and gas products thereof, and those from all royalty oil and gas from lands in the naval reserves, for the benefit of the United States, subject to the applicable limitations and restrictions of this Act; and to exercise exclusive jurisdiction and control over those lands within the borders of naval petroleum reserves numbered 1 and 2 which are embraced by leases granted pursuant to the provisions of the Act of Congress approved February 25, 1920, entitled 'An Act to promote the mining of coal, phosphate, oil, oil shale, gas, and sodium on the public domain' (41 Stat. 437). "Any contract entered into pursuant to the authority granted in the preceding paragraph for joint, unit, or other cooperative plan of exploration, prospecting, conservation, development, use, or opera- tion shall require that the United States be assured of receipt cur- rently of its share of the total production from each of the various 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 such zones underlying such lands on the date fixed in such contract: Provided, however, That any party to such a contract, other than the United States may, pur- suant to the authority hereinabove granted to use and operate the reserves for their protection, conservation, maintenance and testing, be permitted under the terms of such contract to have produced and to receive and shall have charged to its share in the total production from any zone or zones such quantities of petroleum as are necessary to compensate it- "(a) for its share of the current expenses of protecting, con- serving, testing and maintaining in good oil-field condition such lands and the wells and improvements thereon, and its real and personal taxes levied or assessed thereon; and "(b) for surrendering control of the rate of production from its lands: Provided, That if the Secretary of the Navy is not then causing petroleum to be produced pursuant to a joint resolu- tion as referred to in the preceding paragraph, the quantity of petroleum determined to be produced under this subparagraph (b) may, in the absolute discretion of the Secretary, be termi- nated or reduced at any time on reasonable notice. Such quantities permitted to be produced pursuant to the foregoing subparagraphs (a) and (b) shall in no event, however, exceed one- third of its share of the estimated recoverable petroleum on such date fixed in such contract in such zone or zones; and no such contract shall be entered into without prior consultation in regard to all its details with the Naval Affairs Committees of the Congress. "All expenses incurred by the Secretary in exploring, prospecting, conserving, developing, using, and operating lands owned or con- trolled by the United States in the naval petroleum reserves, and in producing petroleum, and the share of the United States of expenses incurred under any contract entered into pursuant to this Act, shall be paid from appropriations made available for such purposes by the Congress. All sales of petroleum, gas, and other hydrocarbons from the naval reserves by the Secretary of the Navy shall be at public sale to the highest qualified bidder at such times, in such amounts, and after such advertisements as the Secretary deems proper. 281 Disposal of products. Jurisdiction and control. 30U.B.C.i181e seq Supp. III, i 183 ct seq. Ante, p. 275. Contract provisions; U. S . share of total production. Allowable consider- ations; compensation to other parties. Limitations. Payment of ex- penses. Sales of hydrocar- bons.

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