---
kind: "range"
citation: "10 U.S.C. §§ 8721–8738"
title: "10"
from: "8721"
to: "8738"
count: 16
release: "119-102"
url: "https://uscodex.org/usc/10/8721..8738"
---

# §8721. Jurisdiction and control

- (a) The [Secretary](/usc/10/8720.md?p=4) shall take possession of all properties inside the [naval petroleum reserves](/usc/10/8720.md?p=2) that are or may become subject to the control of and use by the [United States](/usc/10/101.md?p=a-1) for [national defense](/usc/10/8720.md?p=1) purposes, except as otherwise provided in this chapter.
- (b) The [Secretary](/usc/10/8720.md?p=4) has exclusive jurisdiction and control over those lands inside [Naval Petroleum Reserves](/usc/10/8720.md?p=2) Numbered 1 and 2 that are covered by leases granted under sections 181–184, 185–188, 189–194, [201](/usc/30/201.md), 202–209, 211–214, [223](/usc/30/223.md), 224–226, [226d](/usc/30/226d.md), [226e](/usc/30/226e.md), 227–229a, [241](/usc/30/241.md), [251](/usc/30/251.md), and 261–263 of title 30, and shall administer those leases.

# §8722. Administration

- (a) The [Secretary](/usc/10/8720.md?p=4), directly or by contract, lease, or otherwise, shall explore, prospect, conserve, develop, use, and operate the [naval petroleum reserves](/usc/10/8720.md?p=2) in his discretion, subject to the provisions of [subsection (c)](#c) and the other provisions of this chapter; except that no [petroleum](/usc/10/8720.md?p=3) leases shall be granted at [Naval Petroleum Reserves](/usc/10/8720.md?p=2) Numbered 1 and 3.
- (b) Except as otherwise provided in this chapter, particularly [subsection (c)](#c), the [naval petroleum reserves](/usc/10/8720.md?p=2) shall be used and operated for—
  - (1) the protection, conservation, maintenance, and testing of those [reserves](/usc/10/101.md?p=c-6); or
  - (2) the production of [petroleum](/usc/10/8720.md?p=3) whenever and to the extent that the [Secretary](/usc/10/8720.md?p=4), with the approval of the President, finds that such production is needed for [national defense](/usc/10/8720.md?p=1) purposes and the production is authorized by a joint resolution of Congress.
- (c)
  - (1) In administering [Naval Petroleum Reserves](/usc/10/8720.md?p=2) Numbered 1, 2, and 3, the [Secretary](/usc/10/8720.md?p=4) is authorized and directed—
    - (A) to further explore, develop, and operate such [reserves](/usc/10/101.md?p=c-6);
    - (B) to produce, during any extension of a period under [paragraph (2)](#c-2), such [reserves](/usc/10/101.md?p=c-6)—
      - (i) at the [maximum efficient rate](/usc/10/8720.md?p=6) consistent with sound engineering practices; or
      - (ii) at a lesser [rate](/usc/10/101.md?p=b-9) consistent with sound engineering practices and the protection, conservation, maintenance, and testing of such [reserves](/usc/10/101.md?p=c-6) if the [Secretary](/usc/10/8720.md?p=4) determines that the minimum price described in [section 8730(b)(2) of this title](/usc/10/8730.md?p=b-2) cannot be attained for the [United States](/usc/10/101.md?p=a-1) share of [petroleum](/usc/10/8720.md?p=3) (other than natural gas liquids) produced from such [Reserves](/usc/10/101.md?p=c-6);
    - (C) during such production period or any extension thereof to sell or otherwise dispose of the [United States](/usc/10/101.md?p=a-1) share of such [petroleum](/usc/10/8720.md?p=3) produced from such [reserves](/usc/10/101.md?p=c-6) as provided in [section 8730 of this title](/usc/10/8730.md); and
    - (D) to construct, acquire, or contract for the use of storage and shipping [facilities](/usc/10/227.md?p=b-2) on and off the [reserves](/usc/10/101.md?p=c-6) and pipelines and associated [facilities](/usc/10/227.md?p=b-2) on and off the [reserves](/usc/10/101.md?p=c-6) for transporting [petroleum](/usc/10/8720.md?p=3) from such [reserves](/usc/10/101.md?p=c-6) to the points where the production from such [reserves](/usc/10/101.md?p=c-6) will be refined or shipped.

    Any pipeline in the vicinity of a naval [petroleum](/usc/10/8720.md?p=3) [reserve](/usc/10/101.md?p=c-6) not otherwise operated as a common carrier may be acquired by the [Secretary](/usc/10/8720.md?p=4) by condemnation, if necessary, if the owner thereof refuses to accept, convey, and transport without discrimination and at reasonable [rates](/usc/10/101.md?p=b-9) any [petroleum](/usc/10/8720.md?p=3) produced at such [reserve](/usc/10/101.md?p=c-6). With the approval of the [Secretary](/usc/10/8720.md?p=4), rights-of-way for new pipelines and associated [facilities](/usc/10/227.md?p=b-2) may be acquired by the exercise of the right of eminent domain in the appropriate [United States](/usc/10/101.md?p=a-1) district [court](/usc/10/704.md?p=c-3-A). Such rights-of-way may be acquired in the manner set forth in sections 3114–3116 and [3118](/usc/40/3118.md) of title 40, and the prospective holder of the right-of-way is “the authority empowered by law to acquire the land” within the meaning of those sections. Such new pipelines shall accept, convey, and transport without discrimination and at reasonable [rates](/usc/10/101.md?p=b-9) any [petroleum](/usc/10/8720.md?p=3) produced at such [reserves](/usc/10/101.md?p=c-6) as a common carrier.

  - (2) After April 5, 1982, the President may extend the period of production in the case of any naval [petroleum](/usc/10/8720.md?p=3) [reserve](/usc/10/101.md?p=c-6) for additional periods of not to exceed three years each—
    - (A) after the President requires an investigation to be made, in the case of each extension, to determine the necessity for continued production from such naval [petroleum](/usc/10/8720.md?p=3) [reserve](/usc/10/101.md?p=c-6);
    - (B) after the President submits to the Congress, at least 180 days before the expiration of the current production period prescribed by this section, or any extension thereof, a copy of the report made to him on such investigation together with a certification by him that continued production from such naval [petroleum](/usc/10/8720.md?p=3) [reserve](/usc/10/101.md?p=c-6) is in the national interest; and
    - (C) if neither House of Congress within ninety days after receipt of such report and certification adopts a resolution disapproving further production from such naval [petroleum](/usc/10/8720.md?p=3) [reserve](/usc/10/101.md?p=c-6).

# §8723. Periodic re-examination of production requirements


The [Secretary](/usc/10/8720.md?p=4) shall from time to time reexamine the need for the production of [petroleum](/usc/10/8720.md?p=3) from oil shale for [national defense](/usc/10/8720.md?p=1) when that production is authorized under [section 8722 of this title](/usc/10/8722.md). If he finds that the authorized quantity is no longer needed, he shall reduce production to the amount currently needed for [national defense](/usc/10/8720.md?p=1).


# §8724. Protection of oil reserves; contracts for conservation

- (a) To consolidate and protect the oil lands owned by the [United States](/usc/10/101.md?p=a-1), the [Secretary](/usc/10/8720.md?p=4) may—
  - (1) contract with owners and lessees of land inside or adjoining [naval petroleum reserves](/usc/10/8720.md?p=2) for—
    - (A) conservation 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](/usc/10/8720.md?p=3) [Reserve](/usc/10/101.md?p=c-6) Numbered 1 by exchange of—
    - (A) lands of the [United States](/usc/10/101.md?p=a-1) inside Naval [Petroleum](/usc/10/8720.md?p=3) [Reserve](/usc/10/101.md?p=c-6) Numbered 1;
    - (B) the right to royalty production from any of the [naval petroleum reserves](/usc/10/8720.md?p=2); and
    - (C) the right to any money due the [United States](/usc/10/101.md?p=a-1) as a result of the wrongful extraction of [petroleum](/usc/10/8720.md?p=3) products from lands inside Naval [Petroleum](/usc/10/8720.md?p=3) [Reserve](/usc/10/101.md?p=c-6) Numbered 1.
- (b) The [Secretary](/usc/10/8720.md?p=4) shall report annually to Congress all agreements under this section.

# §8725. Acquisition by condemnation and purchase

- (a) Whenever the [Secretary](/usc/10/8720.md?p=4) is unable to make arrangements he considers satisfactory for exchanges of land or agreements for conservation authorized by [section 8724 of this title](/usc/10/8724.md), the [Secretary](/usc/10/8720.md?p=4) may acquire, with the approval of the President, such privately owned lands and leases—
  - (1) by purchase, inside the [naval petroleum reserves](/usc/10/8720.md?p=2), or outside those [reserves](/usc/10/101.md?p=c-6) on the same geologic structure; and
  - (2) by condemnation, inside Naval [Petroleum](/usc/10/8720.md?p=3) [Reserve](/usc/10/101.md?p=c-6) Numbered 1, or, if there is substantial drainage, outside that [reserve](/usc/10/101.md?p=c-6) on the same geologic structure.
- (b) The [Secretary](/usc/10/8720.md?p=4) shall report annually to Congress all proceedings for purchase and condemnation under this section.

# §8727. Cooperative or unit plans in the naval petroleum reserves


The [Secretary](/usc/10/8720.md?p=4), with the consent of the President, may make agreements, with respect to lands inside the [naval petroleum reserves](/usc/10/8720.md?p=2), of the same type as the [Secretary](/usc/10/8720.md?p=4) of the Interior may make under section 17(m) of the Act of February 25, 1920 ([30 U.S.C. 226(m)](/usc/30/226.md?p=m)). No such agreement made by the [Secretary](/usc/10/8720.md?p=4) may extend the term of any lease unless the agreement so provides.


# §8728. Agreements and leases: provision for change


Every unit or cooperative plan of development and operation and every lease affecting lands owned by the [United States](/usc/10/101.md?p=a-1) within Naval [Petroleum](/usc/10/8720.md?p=3) [Reserve](/usc/10/101.md?p=c-6) Numbered 2 and the oil shale [reserves](/usc/10/101.md?p=c-6) shall contain a provision authorizing the [Secretary](/usc/10/8720.md?p=4), subject to approval by the President and to any limitation in the plan or lease, to change from time to time the [rate](/usc/10/101.md?p=b-9) of prospecting and development on, and the quantity and [rate](/usc/10/101.md?p=b-9) of production from, lands of the [United States](/usc/10/101.md?p=a-1) under the plan or lease, notwithstanding any other provision of law.


# §8729. Re-lease of certain lands: lessee’s preferential right


The [Secretary](/usc/10/8720.md?p=4), on terms prescribed by him, may re-lease lands in the [naval petroleum reserves](/usc/10/8720.md?p=2) that were covered by leases made before July 1, 1936, and terminated by law at the expiration of their initial twenty-year periods. If any such land is to be re-leased, the [Secretary](/usc/10/8720.md?p=4) shall give to the former lessee preferential rights to the new lease.


# §8730. Disposition of products

- (a) In administering the [naval petroleum reserves](/usc/10/8720.md?p=2) under this chapter, the [Secretary](/usc/10/8720.md?p=4) shall use, store, or sell the [petroleum](#b-3) produced from the [naval petroleum reserves](/usc/10/8720.md?p=2) and lands covered by joint, unit, or other cooperative plans.
- (b)
  - (1) Subject to [paragraph (2)](#b-2) and notwithstanding any other provision of law, each sale of the [United States](/usc/10/101.md?p=a-1) share of [petroleum](#b-3) shall be made by the [Secretary](/usc/10/8720.md?p=4) at public sale to the highest qualified bidder, at such time, in such amounts, and after such advertising as the [Secretary](/usc/10/8720.md?p=4) considers proper and without regard to Federal, [State](/usc/10/2815a.md?p=g-2), or local regulations controlling sales or allocation of [petroleum](#b-3) products. Each sale of the [United States](/usc/10/101.md?p=a-1) share of [petroleum](#b-3) shall be for periods of not more than one year, except that a sale of natural gas may be made for a period of more than one year.
  - (2) The [Secretary](/usc/10/8720.md?p=4) may not sell any part of the [United States](/usc/10/101.md?p=a-1) share of [petroleum](#b-3) produced from [Naval Petroleum Reserves](/usc/10/8720.md?p=2) Numbered 2 and 3 at a price less than the current sales price, as estimated by the [Secretary](/usc/10/8720.md?p=4), of comparable [petroleum](#b-3) in the same area.
  - (3) For purposes of [paragraph (2)](#b-2), the term “petroleum” does not include natural gas liquids.
- (c) In no event shall the [Secretary](/usc/10/8720.md?p=4) permit the award of any contract which would result in any person obtaining control, directly or indirectly, over more than 20 percent of the estimated annual [United States](/usc/10/101.md?p=a-1) share of [petroleum](#b-3) produced from Naval [Petroleum](#b-3) [Reserve](/usc/10/101.md?p=c-6) Numbered 1.
- (d) Each proposal for sale under this title shall provide that the terms of every sale of the [United States](/usc/10/101.md?p=a-1) share of [petroleum](#b-3) from the [naval petroleum reserves](/usc/10/8720.md?p=2) shall be so structured as to give full and equal opportunity for the acquisition of [petroleum](#b-3) by all interested persons, including major and independent oil producers and refiners alike. When the [Secretary](/usc/10/8720.md?p=4), in consultation with the [Secretary](/usc/10/8720.md?p=4) of the Interior, determines that the public interests will be served by the sale of [petroleum](#b-3) to [small refiners](/usc/10/8720.md?p=5) not having their own adequate sources of supply of [petroleum](#b-3), the [Secretary](/usc/10/8720.md?p=4) is authorized and directed to set aside a portion of the [United States](/usc/10/101.md?p=a-1) share of [petroleum](#b-3) produced for sale to such refiners under the provisions of this section for processing or use in such refineries, except that—
  - (1) none of the production sold to [small refiners](/usc/10/8720.md?p=5) may be resold in kind;
  - (2) production must be sold at a cost of not less than the prevailing local market price of comparable [petroleum](#b-3);
  - (3) the set-aside portion may not exceed 25 percent of the estimated annual [United States](/usc/10/101.md?p=a-1) share of the total production from all producing [naval petroleum reserves](/usc/10/8720.md?p=2); and
  - (4) notwithstanding the provisions of [subsection (b)](#b), the [Secretary](/usc/10/8720.md?p=4) may, at his discretion if he deems it to be in the public interest, prorate such [petroleum](#b-3) among such refiners for sale, without competition, at not less than the prevailing local market price of comparable [petroleum](#b-3).
- (e) Any [petroleum](#b-3) produced from the [naval petroleum reserves](/usc/10/8720.md?p=2), except such [petroleum](#b-3) which is either exchanged in similar quantities for convenience or increased efficiency of transportation with persons or the government of an adjacent foreign [state](/usc/10/2815a.md?p=g-2), or which is temporarily exported for convenience or increased efficiency of transportation across parts of an adjacent foreign [state](/usc/10/2815a.md?p=g-2) and reenters the [United States](/usc/10/101.md?p=a-1), shall be subject to all of the limitations and licensing requirements of the Export Administration Act of 1979 ([50 U.S.C. 4601](/usc/50/4601.md) et seq.) and, in addition, before any [petroleum](#b-3) subject to this section may be exported under the limitations and licensing requirement and penalty and enforcement provisions of the Export Administration Act of 1979, the President must make and publish an express finding that such exports will not diminish the total quality or quantity of [petroleum](#b-3) available to the [United States](/usc/10/101.md?p=a-1) and that such exports are in the national interest and are in accord with the Export Administration Act of 1979.
- (f) During the period of production or any extension thereof authorized by [section 8722(c) of this title](/usc/10/8722.md?p=c), the consultation and approval requirements of [section 8731(a)(3) of this title](/usc/10/8731.md?p=a-3) are waived.
- (g)
  - (1) Prior to the promulgation of any rules and regulations, plans of development and amendments thereto, and in the entering and making of contracts and operating agreements relating to the development, production, or sale of [petroleum](#b-3) in or from the [reserves](/usc/10/101.md?p=c-6), the [Secretary](/usc/10/8720.md?p=4) shall consult with and give due consideration to the views of the Attorney General of the [United States](/usc/10/101.md?p=a-1) with respect to matters which may affect competition.
  - (2) No contract or operating agreement may be made, issued, or executed under this chapter until at least 15 days after the [Secretary](/usc/10/8720.md?p=4) notifies the Attorney General of the proposed contract or operating agreement. Such notification shall contain such information as the Attorney General may require in order to advise the [Secretary](/usc/10/8720.md?p=4) as to whether such contract or operating agreement may create or maintain a situation inconsistent with the [antitrust laws](#i). If, within such 15-day period, the Attorney General advises the [Secretary](/usc/10/8720.md?p=4) that a contract or operating agreement may create or maintain a situation inconsistent with the [antitrust laws](#i), then the [Secretary](/usc/10/8720.md?p=4) may not make, issue, or execute that contract or operating agreement.
- (h) Nothing in this chapter shall be deemed to confer on any person immunity from civil or criminal liability, or to create defenses to actions, under the [antitrust laws](#i).
- (i) In this section, the term “antitrust laws” means—
  - (1) the Sherman Act ([15 U.S.C. 1](/usc/15/1.md) et seq.);
  - (2) the Clayton Act ([15 U.S.C. 12](/usc/15/12.md) et seq.);
  - (3) the Federal Trade Commission Act ([15 U.S.C. 41](/usc/15/41.md) et seq.);
  - (4) sections 73 and 74 of the Wilson Tariff Act ([15 U.S.C. 8](/usc/15/8.md) and 9); and
  - (5) sections 2, 3, and 4 of the Act of June 19, 1936 (commonly referred to as the “Robinson-Patman Act”) ([15 U.S.C. 13a](/usc/15/13a.md), 13b, and 21a).
- (j) Any pipeline which accepts, conveys, or transports any [petroleum](#b-3) produced from [Naval Petroleum Reserves](/usc/10/8720.md?p=2) Numbered 1 or Numbered 3 shall accept, convey, and transport without discrimination and at reasonable [rates](/usc/10/101.md?p=b-9) any such [petroleum](#b-3) as a common carrier insofar as [petroleum](#b-3) from such [reserves](/usc/10/101.md?p=c-6) is concerned. Every contract entered into by the [Secretary](/usc/10/8720.md?p=4) for the sale of any [petroleum](#b-3) owned by the [United States](/usc/10/101.md?p=a-1) which is produced from such [reserves](/usc/10/101.md?p=c-6) shall contain provisions implementing the requirements of the preceding sentence if the [contractor](/usc/10/9511.md?p=7) owns a controlling interest in any pipeline or any company operating any pipeline, or is the operator of any pipeline, which carries any [petroleum](#b-3) produced from such [naval petroleum reserves](/usc/10/8720.md?p=2). The [Secretary](/usc/10/8720.md?p=4) may promulgate rules and regulations for the purpose of carrying out the provisions of this section and he, or the [Secretary](/usc/10/8720.md?p=4) of the Interior where the authority extends to him, may declare forfeit any contract, operating agreement, right-of-way, permit, or easement held by any person violating any such rule or regulation. This section shall not apply to any natural gas common carrier pipeline operated by any person subject to regulation under the Natural Gas Act ([15 U.S.C. 717](/usc/15/717.md) et seq.) or any public utility subject to regulation by a [State](/usc/10/2815a.md?p=g-2) or municipal regulatory [agency](/usc/10/4701.md?p=g-1) having jurisdiction to regulate the [rates](/usc/10/101.md?p=b-9) and charges for the sale of natural gas to consumers within the [State](/usc/10/2815a.md?p=g-2) or municipality.
- (k)
  - (1) With respect to all or any part of the [United States](/usc/10/101.md?p=a-1) share of [petroleum](#b-3) produced from the [naval petroleum reserves](/usc/10/8720.md?p=2), the President may direct that the [Secretary](/usc/10/8720.md?p=4)—
    - (A) place that [petroleum](#b-3) in the Strategic [Petroleum](#b-3) [Reserve](/usc/10/101.md?p=c-6) as authorized by [sections 151 through 166](/usc/10/151..166.md) of the Energy Policy and Conservation Act ([42 U.S.C. 6231–624](https://uscode.house.gov/view.xhtml?req=(/us/usc/t42/s6231–624))6); or
    - (B) exchange, directly or indirectly, that [petroleum](#b-3) for other [petroleum](#b-3) to be placed in the Strategic [Petroleum](#b-3) [Reserve](/usc/10/101.md?p=c-6) under such terms and conditions and by such methods as the [Secretary](/usc/10/8720.md?p=4) determines to be appropriate, without regard to otherwise applicable Federal procurement statutes and regulations.
  - (2) The requirements of section 159 of the Energy Policy and Conservation Act ([42 U.S.C. 6239](/usc/42/6239.md)) do not apply to actions taken under this subsection.
- (l)
  - (1) Notwithstanding any other provision of this chapter (but subject to [paragraph (2)](#l-2)), during any period in which the production of [petroleum](#b-3) is authorized from [Naval Petroleum Reserves](/usc/10/8720.md?p=2) Numbered 1, 2, or 3, the [Secretary](/usc/10/8720.md?p=4), at the request of the [Secretary](/usc/10/8720.md?p=4) of Defense, may provide any portion of the [United States](/usc/10/101.md?p=a-1) share of [petroleum](#b-3) so produced to the [Department](/usc/10/101.md?p=a-6) of Defense for its use, exchange, or sale in order to meet [petroleum](#b-3) product requirements of the [Department](/usc/10/101.md?p=a-6) of Defense.
  - (2) [Petroleum](#b-3) may be provided to the [Department](/usc/10/101.md?p=a-6) of Defense under [paragraph (1)](#l-1) either directly or by such exchange as the [Secretary](/usc/10/8720.md?p=4) deems appropriate. Appropriate reimbursement reasonably reflecting the fair market value shall be provided by the [Secretary](/usc/10/8720.md?p=4) of Defense for [petroleum](#b-3) provided under this subsection.
  - (3) Any exchange made pursuant to this subsection may be made without regard to otherwise applicable Federal procurement statutes and regulations.
  - (4) [Paragraph (1)](#l-1) does not apply to any [petroleum](#b-3) set aside for [small refiners](/usc/10/8720.md?p=5) under [subsection (d)](#d) or placed in the Strategic [Petroleum](#b-3) [Reserve](/usc/10/101.md?p=c-6) under [subsection (k)](#k).

# §8731. Requirements as to consultation and approval

- (a) The Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives must be consulted and the President’s approval must be obtained before any condemnation proceedings may be started under this chapter and before any of the following transactions authorized by this chapter may be effective:
  - (1) A lease of any part of the [naval petroleum reserves](/usc/10/8720.md?p=2).
  - (2) A contract to alienate from the [United States](/usc/10/101.md?p=a-1) the use, control, or possession of any part of the [naval petroleum reserves](/usc/10/8720.md?p=2) (except that consultation and Presidential approval are not required in connection with the issuance of permits, licenses, easements, grazing and agricultural leases, rights-of-way, and similar contracts pertaining to use of the surface area of the [naval petroleum reserves](/usc/10/8720.md?p=2)).
  - (3) A contract to sell the [petroleum](/usc/10/8720.md?p=3) (other than royalty oil and gas) produced from any part of the [naval petroleum reserves](/usc/10/8720.md?p=2).
  - (4) A contract for conservation or for compensation for estimated drainage.
  - (5) An agreement to exchange land, the right to royalty production, or the right to any money due the [United States](/usc/10/101.md?p=a-1).
- (b)
  - (1) During the period of production authorized by [section 8722(c) of this title](/usc/10/8722.md?p=c), the [Secretary](/usc/10/8720.md?p=4) shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives any new plans or substantial amendments to ongoing plans for the exploration, development, and production of the [naval petroleum reserves](/usc/10/8720.md?p=2).
  - (2) All plans or substantial amendments submitted to the Congress pursuant to this section shall contain a report by the Attorney General of the [United States](/usc/10/101.md?p=a-1) with respect to the anticipated effects of such plans or amendments on competition. Such plans or amendments shall not be implemented until sixty days after such plans or amendments have been submitted to such committees.

# §8732. Authorizations of appropriations

- (a) [Funds](/usc/10/2871.md?p=6) for the following purposes may not be appropriated unless such appropriations have been specifically authorized by law:
  - (1) Exploration, prospecting, conservation, development, use, operations, and production of the [naval petroleum reserves](/usc/10/8720.md?p=2) as authorized by this chapter.
  - (2) Production (including preparation for production) as authorized by this chapter or as may be authorized after April 5, 1976.
  - (3) The construction and operation of [facilities](/usc/10/227.md?p=b-2) both within and outside the [naval petroleum reserves](/usc/10/8720.md?p=2) incident to the production and the [delivery](/usc/10/8697.md?p=d-2) of [petroleum](/usc/10/8720.md?p=3), including pipelines and shipping terminals.

  Sums appropriated for such purposes shall remain available until expended.

- (b) Contracts under this chapter providing for the obligation of [funds](/usc/10/2871.md?p=6) may be entered into for a period of five years, renewable for an additional five-year period; however, such contracts may obligate [funds](/usc/10/2871.md?p=6) only to the extent that such [funds](/usc/10/2871.md?p=6) are made available in appropriation Acts.

# §8733. Disposition of royalties

- (a) Any oil, gas, gasoline or other substance accruing to the [United States](/usc/10/101.md?p=a-1) as royalty from any lease under this chapter shall be delivered to the [United States](/usc/10/101.md?p=a-1), or shall be paid for in money, as the [Secretary](/usc/10/8720.md?p=4) elects.
- (b) All money accruing to the [United States](/usc/10/101.md?p=a-1) from lands in the [naval petroleum reserves](/usc/10/8720.md?p=2) shall be covered into the Treasury.

# §8735. Foreign interest

- (a) If the laws, customs, or regulations of any foreign country deny the privilege of leasing public lands to citizens or corporations of the [United States](/usc/10/101.md?p=a-1), citizens of that foreign country, or corporations controlled by citizens of that country, may not, by contract made after July 1, 1937, or by stock ownership, holding, or control, acquire or own any interest in, or right to any benefit from, any lease of land in the naval [petroleum](/usc/10/8720.md?p=3), naval oil shale, or other naval fuel [reserves](/usc/10/101.md?p=c-6) made under sections 181–184, 185–188, 189–194, [201](/usc/30/201.md), 202–209, 211–214, [223](/usc/30/223.md), 224–226, [226d](/usc/30/226d.md), [226e](/usc/30/226e.md), 227–229a, [241](/usc/30/241.md), [251](/usc/30/251.md), and 261–263 of title 30, or under this chapter.
- (b) The [Secretary](/usc/10/8720.md?p=4) may cancel any lease for any violation of this section.

# §8736. Regulations

- (a) The [Secretary](/usc/10/8720.md?p=4) may prescribe regulations and take any proper action to accomplish the purposes of this chapter.
- (b) All statements, reports, and representations required by the regulations shall be under oath, unless otherwise specified, and in such form as the [Secretary](/usc/10/8720.md?p=4) requires.

# §8737. Violations by lessee

- (a) If a lessee fails to comply with any provision of this chapter, of his lease, or of regulations issued under [section 8736 of this title](/usc/10/8736.md) that are in force on the date of his lease, the lease may be forfeited and cancelled by an appropriate proceeding in the [United States](/usc/10/101.md?p=a-1) district [court](/usc/10/704.md?p=c-3-A) for the district in which any part of the property is located.
- (b) The lease may provide appropriate methods for the settlement of disputes and remedies for breach of specified conditions.

# §8738. Rifle, Colorado, plant; possession, use, and transfer of

- (a) The [Secretary](/usc/10/8720.md?p=4) shall take possession of the experimental demonstration [facility](/usc/10/227.md?p=b-2) near Rifle, Colorado, which was constructed and operated by the [Department](/usc/10/101.md?p=a-6) of the Interior on lands on or near the naval oil shale [reserves](/usc/10/101.md?p=c-6) under the Act of April 5, 1944 ([30 U.S.C. 321](https://uscode.house.gov/view.xhtml?req=(/us/usc/t30/s321)) et seq.).
- (b) The [Secretary](/usc/10/8720.md?p=4), subject to the approval of the President, shall by contract, lease, or otherwise encourage the use of the [facility](/usc/10/227.md?p=b-2) described in [subsection (a)](#a) in research, development, test, evaluation, and demonstration work. For such purposes the [Secretary](/usc/10/8720.md?p=4) may use or lease for use by institutions, organizations, or individuals, public or private, the [facility](/usc/10/227.md?p=b-2) described in [subsection (a)](#a) and may construct, install, and operate, or lease for operation additional experimental [facilities](/usc/10/227.md?p=b-2) on such lands. The [Secretary](/usc/10/8720.md?p=4) may, after consultation with the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives, mine and remove, or authorize the mining and removal, of any oil shale or products therefrom from lands in the naval oil shale [reserves](/usc/10/101.md?p=c-6) that may be needed for such experimentation.
- (c) Nothing in this chapter shall be construed—
  - (1) to authorize the commercial development and operation of the naval oil shale [reserves](/usc/10/101.md?p=c-6) by the Government in competition with private industry; or
  - (2) in diminution of the responsibility of the [Secretary](/usc/10/8720.md?p=4) in providing oil shale and products therefrom for needs of [national defense](/usc/10/8720.md?p=1).