Page:United States Statutes at Large Volume 70A.djvu/516

458 458 (b) The Secretary has exclusive jurisdiction and control over those lands inside naval petroleum reserves numbered 1 and 2 that are covered by leases granted under sections 181-184, 185-188, 189-194, 201, 202-209, 211-214, 223, 224-226, 226d, 226e, 227-229a, 241, 251 and 261-263 of title 30, and shall administer those leases. § 7422. Administration (a) The Secretary of the Navy, directly or by contract, lease, or otherwise, shall explore, prospect, conserve, develop, use, and operate the naval petroleum reserves in his discretion, subject to approval by the President. (b) The naval petroleum reserves and lands outside naval petroleum reserve numbered 1 covered by contracts under section 7426 of this title shall be used and operated for— (1) the protection, conservation, maintenance, and testing of those reserves; or (2) the production of petroleum whenever and to the extent that the Secretary, with the approval of the President, finds that it is needed for national defense and the production is authorized by a joint resolution of Congress. § 7423. Periodic re-examination of production requirements The Secretary of the Navy shall from time to time re-examine the need for the production of petroleum for national defense when that production is authorized under section 7422 of this title. If he finds that the authorized quantity is no longer needed, he shall reduce production to the amount currently needed for national defense. §7424. Protection of oil reserves; contracts for conservation (a) To consolidate and protect the oil lands owned by the United States, the Secretary of the Navy may— (1) contract with owners and lessees of land inside or adjoining naval petroleum reserves for— (A) conservation in the ground of oil and gas; and (B) compensation for estimated drainage in lieu of drilling or operating offset wells; and (2) acquire privately owned lands or leases inside naval petroleum reserve numbered 1 by exchange of— (A) lands of the United States inside naval petroleum reserve numbered 1; (B) the right to royalty production from any of the naval petroleum reserves; and (C) the right to any money due the United States as a result of the wrongful extraction of petroleum products from lands inside naval petroleum reserve numbered 1. (b) The Secretary shall report annually to Congress all agreements under this section. § 7425. Acquisition by condemnation and purchase (a) Whenever the Secretary of the Navy is unable to make arrangements he considers satisfactory for— (1) exchanges of land or agreements for conservation authorized by section 7424 of this title; or

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