---
kind: "section"
citation: "10 U.S.C. § 8724"
title: "10"
title_heading: "Armed Forces"
number: "8724"
heading: "Protection of oil reserves; contracts for conservation"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/10/8724"
units:
  - "Subtitle C — Navy and Marine Corps"
  - "Part IV — General Administration"
  - "Chapter 869 — Naval Petroleum Reserves"
---

# §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.

## Source credit

(Aug. 10, 1956, ch. 1041, 70A Stat. 458, § 7424; Pub. L. 87–796, § 1(4), Oct. 11, 1962, 76 Stat. 904; Pub. L. 94–258, title II, § 201(5), Apr. 5, 1976, 90 Stat. 309; Pub. L. 96–513, title V, § 513(32)(A), Dec. 12, 1980, 94 Stat. 2933; renumbered § 8724, Pub. L. 115–232, div. A, title VIII, § 807(d)(5), Aug. 13, 2018, 132 Stat. 1836.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised section | Source (U.S. Code) | Source (Statutes at Large) |
| 7424 | 34 U.S.C. 524 (4th par., less 1st proviso). | June 4, 1920, ch. 228 (4th par., less 1st proviso, 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. 282. |

### Editorial Notes

### Amendments

2018—Pub. L. 115–232 renumbered section 7424 of this title as this section.

1980—Subsec. (a). Pub. L. 96–513 substituted “Naval Petroleum Reserve Numbered 1” for “naval petroleum reserve numbered 1” wherever appearing.

1976—Subsec. (a). Pub. L. 94–258 struck out “of the Navy” after “Secretary”, “and oil shale” after “petroleum” in par. (1), and “in the ground” after “conservation” in subpar. (A) of par. (1).

1962—Subsec. (a). Pub. L. 87–796 inserted provisions in cl. (1) empowering the Secretary to contract with owners and lessees of land inside or adjoining oil shale reserves.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2018 Amendment

Amendment by Pub. L. 115–232 effective Feb. 1, 2019, with provision for the coordination of amendments and special rule for certain redesignations, see section 800 of Pub. L. 115–232, set out as a note preceding section 3001 of this title.

### 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.