Page:United States Statutes at Large Volume 92 Part 1.djvu/698

 92 STAT. 644

PUBLIC LAW 95-372—SEPT. 18, 1978

shall report to the Congress with respect to the use of various bidding options provided for in this subsection. Such report shall include— "(A) the schedule of all lease sales held during such year and the bidding system or systems utilized; "(B) the schedule of all lease sales to be held the following year and the bidding system or systems to be utilized; "(C) the benefits and costs associated with conducting lease sales using the various bidding systems; "(D) if applicable, the reasons why a particular bidding system has not been or will not be utilized; and " (E) if applicable, the reasons why more than 60 per centum or less than 20 per centum of the area leased in the past year, or to be offered for lease in the upcoming year, was or is to be leased under the bidding system authorized by subparagraph (A) of paragraph (1) of this subsection. "(b) An oil and gas lease issued pursuant to this section shall— "(1) be for a tract consisting of a compact area not exceeding five thousand seven hundred and sixty acres, as the Secretary may determine, unless the Secretary finds that a larger area is necessary to comprise a reasonable economic production unit; " (2) be for an initial period of— "(A) five years; or "(B) not to exceed ten years where the Secretary finds that such longer period is necessary to encourage exploration and development in areas because of unusually deep water or other unusually adverse conditions, and as long after such initial period as oil or gas is produced from the area in paying quantities, or drilling or well reworking operations as approved by the Secretary are conducted thereon; "(3) require the payment of amount or value as determined by one of the bidding systems set forth in subsection (a) of this section; "(4) entitle the lessee to explore, develop, and produce the oil and gas contained within the lease area, conditioned upon due diligence requirements and the approval of the development and production plan required by this Act; "(5) provide for suspension or cancellation of the lease during the initial lease term or thereafter pursuant to section 5 of this 43 USC 1334. Act; "(6) contain such rental and other provisions as the Secretary may prescribe at the time of offering the area for lease; and " (7) provide a requirement that the lessee offer 20 per centum of the crude oil, condensate, and natural gas liquids produced on such lease, at the market value and point of delivery applicable to Federal royalty oil, to small or independent refiners as defined in 15 USC 751 note. the Emergency Petroleum Allocation Act of 1973.". (b) Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337) is further amended by striking out subsection (j), by relettering subsections (c) through (i), and all references thereto, as subsections (i) through (o), respectively, and by inserting immediately after subsection (b) the following new subsections: Review. "(c)(1) Following each notice of a proposed lease sale and before the acceptance of bids and the issuance of leases based on such bids, the Secretary shall allow the Attorney General, in consultation with the Federal Trade Commission, thirty days to review the results of such lease sale, except that the Attorney General, after consultation

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