---
kind: "section"
citation: "10 U.S.C. § 8739"
title: "10"
title_heading: "Armed Forces"
number: "8739"
heading: "Certain oil shale reserves: transfer of jurisdiction and petroleum exploration, development, and production"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/10/8739"
units:
  - "Subtitle C — Navy and Marine Corps"
  - "Part IV — General Administration"
  - "Chapter 869 — Naval Petroleum Reserves"
---

# §8739. Certain oil shale reserves: transfer of jurisdiction and petroleum exploration, development, and production

- (a) **Transfer Required.—**
  - (1) Upon the enactment of this section, the [Secretary](/usc/10/8720.md?p=4) of Energy shall transfer to the [Secretary](/usc/10/8720.md?p=4) of the Interior administrative jurisdiction over all public domain lands included within Oil Shale [Reserve](/usc/10/101.md?p=c-6) Numbered 1 and those public domain lands included within the undeveloped tracts of Oil Shale [Reserve](/usc/10/101.md?p=c-6) Numbered 3.
  - (2) Not later than November 18, 1998, the [Secretary](/usc/10/8720.md?p=4) of Energy shall transfer to the [Secretary](/usc/10/8720.md?p=4) of the Interior administrative jurisdiction over those public domain lands included within the developed tract of Oil Shale [Reserve](/usc/10/101.md?p=c-6) Numbered 3, which consists of approximately 6,000 acres and 24 natural gas wells, together with pipelines and associated facilities.
  - (3) Notwithstanding the transfer of jurisdiction, the [Secretary](/usc/10/8720.md?p=4) of Energy shall continue to be responsible for all environmental restoration, waste management, and environmental compliance activities that are required under Federal and State laws with respect to conditions existing on the lands at the time of the transfer.
  - (4) Upon the transfer to the [Secretary](/usc/10/8720.md?p=4) of the Interior of jurisdiction over public domain lands under this subsection, the other provisions of this chapter shall cease to apply with respect to the transferred lands.
- (b) **Authority To Lease.—**
  - (1) Beginning on November 18, 1997, or as soon thereafter as practicable, the [Secretary](/usc/10/8720.md?p=4) of the Interior shall enter into leases with one or more private entities for the purpose of exploration for, and development and production of, [petroleum](/usc/10/8720.md?p=3) (other than in the form of oil shale) located on or in public domain lands in Oil Shale [Reserves](/usc/10/101.md?p=c-6) Numbered 1 and 3 (including the developed tract of Oil Shale [Reserve](/usc/10/101.md?p=c-6) Numbered 3). Any such lease shall be made in accordance with the requirements of the Mineral Leasing Act ([30 U.S.C. 181](/usc/30/181.md) et seq.) regarding the lease of oil and gas lands and shall be subject to valid existing rights.
  - (2) Notwithstanding the delayed transfer of the developed tract of Oil Shale [Reserve](/usc/10/101.md?p=c-6) Numbered 3 under [subsection (a)(2)](#a-2), the [Secretary](/usc/10/8720.md?p=4) of the Interior shall enter into a lease under [paragraph (1)](#b-1) with respect to the developed tract before November 18, 1998.
- (c) **Management.—** The [Secretary](/usc/10/8720.md?p=4) of the Interior, acting through the Director of the Bureau of Land Management, shall manage the lands transferred under [subsection (a)](#a) in accordance with the Federal Land Policy and Management Act of 1976 ([43 U.S.C. 1701](/usc/43/1701.md) et seq.) and other laws applicable to the public lands.
- (d) **Transfer of Existing Equipment.—** The lease of lands by the [Secretary](/usc/10/8720.md?p=4) of the Interior under this section may include the transfer, at fair market value, of any well, gathering line, or related equipment owned by the [United States](/usc/10/101.md?p=a-1) on the lands transferred under [subsection (a)](#a) and suitable for use in the exploration, development, or production of [petroleum](/usc/10/8720.md?p=3) on the lands.
- (e) **Cost Minimization.—** The cost of any environmental assessment required pursuant to the National Environmental Policy Act of 1969 ([42 U.S.C. 4321](/usc/42/4321.md) et seq.) in connection with a proposed lease under this section shall be paid out of unobligated amounts available for administrative expenses of the Bureau of Land Management.
- (f) **Treatment of Receipts.—**
  - (1) Notwithstanding section 35 of the Mineral Leasing Act ([30 U.S.C. 191](/usc/30/191.md)), all moneys received during the period specified in [paragraph (2)](#f-2) from a lease under this section (including moneys in the form of sales, bonuses, royalties (including interest charges collected under the Federal Oil and Gas Royalty Management Act of 1982 ([30 U.S.C. 1701](/usc/30/1701.md) et seq.)), and rentals) shall be covered into the Treasury of the [United States](/usc/10/101.md?p=a-1) and shall not be subject to distribution to the States pursuant to [subsection (a)](/usc/10/1701.md?p=a) of such section 35.
  - (2) The period referred to in this subsection is the period beginning on November 18, 1997, and ending on the date on which the [Secretary](/usc/10/8720.md?p=4) of Energy and the [Secretary](/usc/10/8720.md?p=4) of the Interior jointly certify to Congress that the sum of the moneys deposited in the Treasury under [paragraph (1)](#f-1) is equal to the total of the following:
    - (A) The cost of all environmental restoration, waste management, and environmental compliance activities incurred by the [United States](/usc/10/101.md?p=a-1) with respect to the lands transferred under [subsection (a)](#a).
    - (B) The cost to the [United States](/usc/10/101.md?p=a-1) to originally install wells, gathering lines, and related equipment on the transferred lands and any other cost incurred by the [United States](/usc/10/101.md?p=a-1) with respect to the lands.
- (g) **Use of Receipts.—**
  - (1) The [Secretary](/usc/10/8720.md?p=4) of the Interior may use, without further appropriation, not more than $1,500,000 of the moneys covered into the Treasury under [subsection (f)(1)](#f-1) to cover the cost of any additional analysis, site characterization, and geotechnical studies deemed necessary by the [Secretary](/usc/10/8720.md?p=4) to support environmental restoration, waste management, or environmental compliance with respect to Oil Shale [Reserve](/usc/10/101.md?p=c-6) Numbered 3. Upon the completion of such studies, the [Secretary](/usc/10/8720.md?p=4) of the Interior shall submit to Congress a report containing—
    - (A) the results and conclusions of such studies; and
    - (B) an estimate of the total cost of the [Secretary](/usc/10/8720.md?p=4)’s preferred alternative to address environmental restoration, waste management, and environmental compliance needs at Oil Shale [Reserve](/usc/10/101.md?p=c-6) Numbered 3.
  - (2) If the cost estimate required by [paragraph (1)(B)](#g-1-B) does not exceed the total of the moneys covered into the Treasury under [subsection (f)(1)](#f-1) and remaining available for obligation as of the date of submission of the report under [paragraph (1)](#g-1), the [Secretary](/usc/10/8720.md?p=4) of the Interior may access such moneys, beginning 60 days after submission of the report and without further appropriation, to cover the costs of implementing the preferred alternative to address environmental restoration, waste management, and environmental compliance needs at Oil Shale [Reserve](/usc/10/101.md?p=c-6) Numbered 3. If the cost estimate exceeds such available moneys, the [Secretary](/usc/10/8720.md?p=4) of the Interior may only access such moneys as authorized by subsequent Act of Congress.

## Source credit

(Added Pub. L. 105–85, div. C, title XXXIV, § 3404(a), Nov. 18, 1997, 111 Stat. 2059, § 7439; amended Pub. L. 107–107, div. A, title X, § 1048(c)(14), Dec. 28, 2001, 115 Stat. 1226; Pub. L. 107–345, § 1, Dec. 17, 2002, 116 Stat. 2894; renumbered § 8739, Pub. L. 115–232, div. A, title VIII, § 807(d)(5), Aug. 13, 2018, 132 Stat. 1836.)

## Notes

### Editorial Notes

### References in Text

The Mineral Leasing Act, referred to in subsec. (b)(1), is act Feb. 25, 1920, ch. 85, 41 Stat. 437, as amended, which is classified generally to chapter 3A (§ 181 et seq.) of Title 30, Mineral Lands and Mining. For complete classification of this Act to the Code, see Short Title note set out under section 181 of Title 30 and Tables.

The Federal Land Policy and Management Act of 1976, referred to in subsec. (c), is Pub. L. 94–579, Oct. 21, 1976, 90 Stat. 2743, as amended, which is classified principally to chapter 35 (§ 1701 et seq.) of Title 43, Public Lands. For complete classification of this Act to the Code, see Short Title note set out under section 1701 of Title 43 and Tables.

The National Environmental Policy Act of 1969, referred to in subsec. (e), is Pub. L. 91–190, Jan. 1, 1970, 83 Stat. 852, as amended, which is classified generally to chapter 55 (§ 4321 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 4321 of Title 42 and Tables.

The Federal Oil and Gas Royalty Management Act of 1982, referred to in subsec. (f)(1), is Pub. L. 97–451, Jan. 12, 1983, 96 Stat. 2447, which is classified generally to chapter 29 (§ 1701 et seq.) of Title 30, Mineral Lands and Mining. For complete classification of this Act to the Code, see Short Title note set out under section 1701 of Title 30 and Tables.

### Prior Provisions

A prior section 8741 was renumbered section 9271 of this title.

### Amendments

2018—Pub. L. 115–232 renumbered section 7439 of this title as this section.

2002—Subsec. (f)(1). Pub. L. 107–345, § 1(1), struck out after first sentence: “Subject to a specific authorization and appropriation for this purpose, such moneys may be used for reimbursement of environmental restoration, waste management, and environmental compliance costs incurred by the United States with respect to the lands transferred under subsection (a).”

Subsec. (g). Pub. L. 107–345, § 1(2), added subsec. (g).

2001—Subsec. (a)(2). Pub. L. 107–107, § 1048(c)(14)(A), substituted “November 18, 1998” for “one year after the date of the enactment of this section”.

Subsec. (b)(1). Pub. L. 107–107, § 1048(c)(14)(B), substituted “November 18, 1997,” for “the date of the enactment of this section,”.

Subsec. (b)(2). Pub. L. 107–107, § 1048(c)(14)(C), substituted “November 18, 1998” for “the end of the one-year period beginning on the date of the enactment of this section”.

Subsec. (f)(2). Pub. L. 107–107, § 1048(c)(14)(D), substituted “November 18, 1997,” for “the date of the enactment of this section”.

### 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.