---
kind: "section"
citation: "30 U.S.C. § 1702"
title: "30"
title_heading: "Mineral Lands and Mining"
number: "1702"
heading: "Definitions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/30/1702"
units:
  - "Chapter 29 — Oil and Gas Royalty Management"
---

# §1702. Definitions


For the purposes of this chapter, the term—

- (1) “Federal land” means all land and interests in land owned by the [United States](#33) which are subject to the [mineral leasing laws](#8), including mineral resources or mineral estates reserved to the [United States](#33) in the conveyance of a surface or nonmineral estate;
- (2) “Indian allottee” means any Indian for whom land or an interest in land is held in trust by the [United States](#33) or who holds title subject to Federal restriction against alienation;
- (3) “Indian lands” means any lands or interest in lands of an [Indian tribe](#4) or an [Indian allottee](#2) held in trust by the [United States](#33) or which is subject to Federal restriction against alienation or which is administered by the [United States](#33) pursuant to [section 1613(g) of title 43](/usc/43/1613.md?p=g), including mineral resources and mineral estates reserved to an [Indian tribe](#4) or an [Indian allottee](#2) in the conveyance of a surface or nonmineral estate, except that such term does not include any lands subject to the provisions of section 3 of the Act of June 28, 1906 (34 Stat. 539);
- (4) “Indian tribe” means any Indian tribe, band, nation, pueblo, community, rancheria, colony, or other group of Indians, including the Metlakatla Indian Community of Annette Island Reserve, for which any land or interest in land is held by the [United States](#33) in trust or which is subject to Federal restriction against alienation or which is administered by the [United States](#33) pursuant to [section 1613(g) of title 43](/usc/43/1613.md?p=g);
- (5) “lease” means any contract, profit-share arrangement, joint venture, or other agreement issued or approved by the [United States](#33) under a [mineral leasing law](#8) that authorizes exploration for, extraction of, or removal of [oil or gas](#9);
- (6) “lease site” means any lands or submerged lands, including the surface of a severed mineral estate, on which exploration for, or extraction or removal of, [oil or gas](#9) is authorized pursuant to a [lease](#5);
- (7) “lessee” means any [person](#12) to whom the [United States](#33) issues an oil and gas [lease](#5) or any [person](#12) to whom operating rights in a [lease](#5) have been assigned;
- (8) “mineral leasing law” means any Federal law administered by the [Secretary](#15) authorizing the disposition under [lease](#5) of [oil or gas](#9);
- (9) “oil or gas” means any oil or gas originating from, or allocated to, the Outer Continental Shelf, Federal, or [Indian lands](#3);
- (10) “Outer Continental Shelf” has the same meaning as provided in the Outer Continental Shelf Lands Act (Public Law 95–372);
- (11) “operator” means any [person](#12), including a [lessee](#7), who has control of, or who manages operations on, an oil and gas [lease site](#6) on Federal or [Indian lands](#3) or on the Outer Continental Shelf;
- (12) “person” means any individual, firm, corporation, association, partnership, consortium, or joint venture;
- (13) “production” means those activities which take place for the removal of [oil or gas](#9), including such removal, field operations, transfer of [oil or gas](#9) off the [lease site](#6), operation monitoring, maintenance, and workover drilling;
- (14) “royalty” means any [payment](#28) based on the value or volume of [production](#13) which is due to the [United States](#33) or an [Indian tribe](#4) or an [Indian allottee](#2) on [production](#13) of [oil or gas](#9) from the Outer Continental Shelf, Federal, or [Indian lands](#3), or any minimum royalty owed to the [United States](#33) or an [Indian tribe](#4) or an [Indian allottee](#2) under any provision of a [lease](#5);
- (15) “Secretary” means the Secretary of the Interior or his [designee](#24);
- (16) “State” means the several States of the Union, the District of Columbia, Puerto Rico, the territories and possessions of the [United States](#33), and the Trust Territory of the Pacific Islands;
- (17) “adjustment” means an amendment to a previously filed report on an [obligation](#25), and any additional [payment](#28) or [credit](#21), if any, applicable thereto, to rectify an [underpayment](#32) or [overpayment](#27) on an [obligation](#25);
- (18) “administrative proceeding” means any Department of the Interior agency process in which a [demand](#23), decision or order issued by the [Secretary](#15) or a [delegated State](#22) is subject to appeal or has been appealed;
- (19) “assessment” means any fee or charge levied or imposed by the [Secretary](#15) or a [delegated State](#22) other than—
  - (A) the principal amount of any [royalty](#14), minimum [royalty](#14), rental bonus, net profit share or proceed of sale;
  - (B) any interest; or
  - (C) any civil or criminal [penalty](#29);
- (20) “commence” means—
  - (A) with respect to a judicial proceeding, the service of a complaint, petition, counterclaim, cross claim, or other pleading seeking affirmative relief or seeking [credit](#21) or recoupment: Provided, That if the [Secretary](#15) [commences](#20) a judicial proceeding against a [designee](#24), the [Secretary](#15) shall give notice of that commencement to the [lessee](#7) who designated the [designee](#24), but the [Secretary](#15) is not required to give notice to other [lessees](#7) who may be liable pursuant to [section 1712(a) of this title](/usc/30/1712.md?p=a), for the [obligation](#25) that is the subject of the judicial proceeding; or
  - (B) with respect to a [demand](#23), the receipt by the [Secretary](#15) or a [delegated State](#22) or a [lessee](#7) or its [designee](#24) (with written notice to the [lessee](#7) who designated the [designee](#24)) of the [demand](#23);
- (21) “credit” means the application of an [overpayment](#27) (in whole or in part) against an [obligation](#25) which has become due to discharge, cancel or reduce the [obligation](#25);
- (22) “delegated State” means a [State](#16) which, pursuant to an agreement or agreements under [section 1735 of this title](/usc/30/1735.md), performs authorities, duties, responsibilities, or activities of the [Secretary](#15);
- (23) “demand” means—
  - (A) an [order to pay](#26) issued by the [Secretary](#15) or the applicable [delegated State](#22) to a [lessee](#7) or its [designee](#24) (with written notice to the [lessee](#7) who designated the [designee](#24)) that has a reasonable basis to conclude that the [obligation](#25) in the amount of the [demand](#23) is due and owing; or
  - (B) a separate written request by a [lessee](#7) or its [designee](#24) which asserts an [obligation](#25) due the [lessee](#7) or its [designee](#24) that provides a reasonable basis to conclude that the [obligation](#25) in the amount of the [demand](#23) is due and owing, but does not mean any [royalty](#14) or [production](#13) report, or any information contained therein, required by the [Secretary](#15) or a [delegated State](#22);
- (24) “designee” means the [person](#12) designated by a [lessee](#7) pursuant to [section 1712(a) of this title](/usc/30/1712.md?p=a), with such written designation effective on the date such designation is received by the [Secretary](#15) and remaining in effect until the [Secretary](#15) receives notice in writing that the designation is modified or terminated;
- (25) “obligation” means—
  - (A) any duty of the [Secretary](#15) or, if applicable, a [delegated State](#22)—
    - (i) to take [oil or gas](#9) [royalty](#14) in kind; or
    - (ii) to pay, [refund](#30), offset, or [credit](#21) monies including (but not limited to)—
      - (I) the principal amount of any [royalty](#14), minimum [royalty](#14), rental, bonus, net profit share or proceed of sale; or
      - (II) any interest; and
  - (B) any duty of a [lessee](#7) or its [designee](#24) (subject to the provisions of [section 1712(a) of this title](/usc/30/1712.md?p=a))—
    - (i) to deliver [oil or gas](#9) [royalty](#14) in kind; or
    - (ii) to pay, offset or [credit](#21) monies including (but not limited to)—
      - (I) the principal amount of any [royalty](#14), minimum [royalty](#14), rental, bonus, net profit share or proceed of sale;
      - (II) any interest;
      - (III) any [penalty](#29); or
      - (IV) any [assessment](#19),

    which arises from or relates to any [lease](#5) administered by the [Secretary](#15) for, or any [mineral leasing law](#8) related to, the exploration, [production](#13) and development of [oil or gas](#9) on [Federal lands](#1) or the Outer Continental Shelf;

- (26) “order to pay” means a written order issued by the [Secretary](#15) or the applicable [delegated State](#22) to a [lessee](#7) or its [designee](#24) (with notice to the [lessee](#7) who designated the [designee](#24)) which—
  - (A) asserts a specific, definite, and quantified [obligation](#25) claimed to be due, and
  - (B) specifically identifies the [obligation](#25) by [lease](#5), [production](#13) month and monetary amount of such [obligation](#25) claimed to be due and ordered to be paid, as well as the reason or reasons such [obligation](#25) is claimed to be due, but such term does not include any other communication or action by or on behalf of the [Secretary](#15) or a [delegated State](#22);
- (27) “overpayment” means any [payment](#28) by a [lessee](#7) or its [designee](#24) in excess of an amount legally required to be paid on an [obligation](#25) and includes the portion of any estimated [payment](#28) for a [production](#13) month that is in excess of the [royalties](#14) due for that month;
- (28) “payment” means satisfaction, in whole or in part, of an [obligation](#25);
- (29) “penalty” means a statutorily authorized civil fine levied or imposed for a violation of this chapter, any [mineral leasing law](#8), or a term or provision of a [lease](#5) administered by the [Secretary](#15);
- (30) “refund” means the return of an [overpayment](#27);
- (31) “State concerned” means, with respect to a [lease](#5), a [State](#16) which receives a portion of [royalties](#14) or other [payments](#28) under the [mineral leasing laws](#8) from such [lease](#5);
- (32) “underpayment” means any [payment](#28) or nonpayment by a [lessee](#7) or its [designee](#24) that is less than the amount legally required to be paid on an [obligation](#25); and
- (33) “United States” means the United States Government and any department, agency, or instrumentality thereof, the several [States](#16), the District of Columbia, and the territories of the United States.

## Source credit

(Pub. L. 97–451, § 3, Jan. 12, 1983, 96 Stat. 2448; Pub. L. 92–203, § 29(f)(1), as added Pub. L. 100–241, § 15, Feb. 3, 1988, 101 Stat. 1813; Pub. L. 104–185, § 2, Aug. 13, 1996, 110 Stat. 1700; Pub. L. 104–200, § 1(1), Sept. 22, 1996, 110 Stat. 2421.)

## Notes

### Editorial Notes

### References in Text

Section 3 of the Act of June 28, 1906 (34 Stat. 539), referred to in par. (3), is not classified to the Code.

“Outer Continental Shelf” as provided in the Outer Continental Shelf Lands Act (Public Law 95–372), referred to in par. (10), is defined in section 1331(a) of Title 43, Public Lands.

### Amendments

1996—Par. (7). Pub. L. 104–185, § 2(1), amended par. (7) generally. Prior to amendment, par. (7) read as follows: “ ‘lessee’ means any person to whom the United States, an Indian tribe, or an Indian allottee, issues a lease, or any person who has been assigned an obligation to make royalty or other payments required by the lease;”.

Pars. (17) to (25). Pub. L. 104–185, § 2(2), added pars. (17) to (25).

Par. (25)(B). Pub. L. 104–200, substituted “provisions of section 1712(a)” for “provision of section 1712(a)” in introductory provisions.

Pars. (26) to (33). Pub. L. 104–185, § 2(2), added pars. (26) to (33).

1988—Pars. (3), (4). Pub. L. 92–203 inserted “or which is administered by the United States pursuant to section 1613(g) of title 43” after “alienation”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1996 Amendment

Amendment by Pub. L. 104–185 applicable with respect to production of oil and gas after the first day of the month following Aug. 13, 1996, see section 11 of Pub. L. 104–185, set out as a note under section 1701 of this title.

### Effective Date of 1988 Amendment

Pub. L. 92–203, § 29(f)(2), as added by Pub. L. 100–241, § 15, Feb. 3, 1988, 101 Stat. 1813, provided that: “The amendment made by paragraph (1) [amending this section] shall be effective as if originally included in section 3 of Public Law 97–451 [this section].”

### Applicability of 1996 Amendment

Amendment by Pub. L. 104–185 not applicable to any privately owned minerals or with respect to Indian lands, see sections 9 and 10 of Pub. L. 104–185, set out as a note under section 1701 of this title.

### Executive Documents

### Termination of Trust Territory of the Pacific Islands

For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions.