---
kind: "section"
citation: "43 U.S.C. § 1335"
title: "43"
title_heading: "Public Lands"
number: "1335"
heading: "Validation and maintenance of prior leases"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/43/1335"
units:
  - "Chapter 29 — Submerged Lands"
  - "Subchapter III — Outer Continental Shelf Lands"
---

# §1335. Validation and maintenance of prior leases

- (a) **Requirements for validation—** The provisions of this section shall apply to any mineral [lease](/usc/43/1331.md?p=c) covering submerged lands of the [outer Continental Shelf](/usc/43/1331.md?p=a) issued by any [State](/usc/43/1301.md?p=g) (including any extension, renewal, or replacement thereof heretofore granted pursuant to such [lease](/usc/43/1331.md?p=c) or under the laws of such [State](/usc/43/1301.md?p=g)) if—
  - (1) such [lease](/usc/43/1331.md?p=c), or a true copy thereof, is filed with the [Secretary](/usc/43/1331.md?p=b) by the lessee or his duly authorized agent within ninety days from August 7, 1953, or within such further period or periods as provided in [section 1336 of this title](/usc/43/1336.md) or as may be fixed from time to time by the [Secretary](/usc/43/1331.md?p=b);
  - (2) such [lease](/usc/43/1331.md?p=c) was issued prior to December 21, 1948, and would have been on June 5, 1950, in force and effect in accordance with its terms and provisions and the law of the [State](/usc/43/1301.md?p=g) issuing it had the [State](/usc/43/1301.md?p=g) had the authority to issue such [lease](/usc/43/1331.md?p=c);
  - (3) there is filed with the [Secretary](/usc/43/1331.md?p=b), within the period or periods specified in paragraph (1) of this subsection, (A) a certificate issued by the [State](/usc/43/1301.md?p=g) official or agency having jurisdiction over such [lease](/usc/43/1331.md?p=c) stating that it would have been in force and effect as required by the provisions of paragraph (2) of this subsection, or (B) in the absence of such certificate, evidence in the form of affidavits, receipts, canceled checks, or other documents that may be required by the [Secretary](/usc/43/1331.md?p=b), sufficient to prove that such [lease](/usc/43/1331.md?p=c) would have been so in force and effect;
  - (4) except as otherwise provided in [section 1336 of this title](/usc/43/1336.md) hereof, all rents, royalties, and other sums payable under such [lease](/usc/43/1331.md?p=c) between June 5, 1950, and August 7, 1953, which have not been paid in accordance with the provisions thereof, or to the [Secretary](/usc/43/1331.md?p=b) or to the [Secretary](/usc/43/1331.md?p=b) of the Navy, are paid to the [Secretary](/usc/43/1331.md?p=b) within the period or periods specified in paragraph (1) of this subsection, and all rents, royalties, and other sums payable under such [lease](/usc/43/1331.md?p=c) after August 7, 1953, are paid to the [Secretary](/usc/43/1331.md?p=b), who shall deposit such payments in the Treasury in accordance with [section 1338 of this title](/usc/43/1338.md);
  - (5) the holder of such [lease](/usc/43/1331.md?p=c) certifies that such [lease](/usc/43/1331.md?p=c) shall continue to be subject to the overriding royalty obligations existing on August 7, 1953;
  - (6) such [lease](/usc/43/1331.md?p=c) was not obtained by fraud or misrepresentation;
  - (7) such [lease](/usc/43/1331.md?p=c), if issued on or after June 23, 1947, was issued upon the basis of competitive bidding;
  - (8) such [lease](/usc/43/1331.md?p=c) provides for a royalty to the lessor on oil and gas of not less than 12½ per centum and on sulphur of not less than 5 per centum in amount or value of the [production](/usc/43/1331.md?p=m) saved, removed, or sold from the [lease](/usc/43/1331.md?p=c), or, in any case in which the [lease](/usc/43/1331.md?p=c) provides for a lesser royalty, the holder thereof consents in writing, filed with the [Secretary](/usc/43/1331.md?p=b), to the increase of the royalty to the minimum herein specified;
  - (9) the holder thereof pays to the [Secretary](/usc/43/1331.md?p=b) within the period or periods specified in paragraph (1) of this subsection an amount equivalent to any severance, gross [production](/usc/43/1331.md?p=m), or occupation taxes imposed by the [State](/usc/43/1301.md?p=g) issuing the [lease](/usc/43/1331.md?p=c) on the [production](/usc/43/1331.md?p=m) from the [lease](/usc/43/1331.md?p=c), less the [State](/usc/43/1301.md?p=g)’s royalty interest in such [production](/usc/43/1331.md?p=m), between June 5, 1950, and August 7, 1953 and not heretofore paid to the [State](/usc/43/1301.md?p=g), and thereafter pays to the [Secretary](/usc/43/1331.md?p=b) as an additional royalty on the [production](/usc/43/1331.md?p=m) from the [lease](/usc/43/1331.md?p=c), less the United States’ royalty interest in such [production](/usc/43/1331.md?p=m), a sum of money equal to the amount of the severance, gross [production](/usc/43/1331.md?p=m), or occupation taxes which would have been payable on such [production](/usc/43/1331.md?p=m) to the [State](/usc/43/1301.md?p=g) issuing the [lease](/usc/43/1331.md?p=c) under its laws as they existed on August 7, 1953;
  - (10) such [lease](/usc/43/1331.md?p=c) will terminate within a period of not more than five years from August 7, 1953 in the absence of [production](/usc/43/1331.md?p=m) or operations for drilling, or, in any case in which the [lease](/usc/43/1331.md?p=c) provides for a longer period, the holder thereof consents in writing, filed with the [Secretary](/usc/43/1331.md?p=b), to the reduction of such period so that it will not exceed the maximum period herein specified; and
  - (11) the holder of such [lease](/usc/43/1331.md?p=c) furnishes such surety bond, if any, as the [Secretary](/usc/43/1331.md?p=b) may require and complies with such other reasonable requirements as the [Secretary](/usc/43/1331.md?p=b) may deem necessary to protect the interests of the United States.
- (b) **Conduct of operations under lease; sulphur rights—** Any [person](/usc/43/1301.md?p=h) holding a mineral [lease](/usc/43/1331.md?p=c), which as determined by the [Secretary](/usc/43/1331.md?p=b) meets the requirements of [subsection (a)](#a) of this section, may continue to maintain such [lease](/usc/43/1331.md?p=c), and may conduct operations thereunder, in accordance with (1) its provisions as to the area, the [minerals](/usc/43/1331.md?p=q) covered, rentals and, subject to the provisions of [paragraphs (8)](#a-8)–(10) of [subsection (a)](#a) of this section, as to royalties and as to the term thereof and of any extensions, renewals, or replacements authorized therein or heretofore authorized by the laws of the [State](/usc/43/1301.md?p=g) issuing such [lease](/usc/43/1331.md?p=c), or, if oil or gas was not being produced in paying quantities from such [lease](/usc/43/1331.md?p=c) on or before December 11, 1950, or if [production](/usc/43/1331.md?p=m) in paying quantities has ceased since June 5, 1950, or if the primary term of such [lease](/usc/43/1331.md?p=c) has expired since December 11, 1950, then for a term from August 7, 1953 equal to the term remaining unexpired on December 11, 1950, under the provisions of such [lease](/usc/43/1331.md?p=c) or any extensions, renewals, or replacements authorized therein, or heretofore authorized by the laws of such [State](/usc/43/1301.md?p=g), and (2) such regulations as the [Secretary](/usc/43/1331.md?p=b) may under [section 1334 of this title](/usc/43/1334.md) prescribe within ninety days after making his determination that such [lease](/usc/43/1331.md?p=c) meets the requirements of [subsection (a)](#a) of this section: Provided, however, That any rights to sulphur under any [lease](/usc/43/1331.md?p=c) maintained under the provisions of this subsection shall not extend beyond the primary term of such [lease](/usc/43/1331.md?p=c) or any extension thereof under the provisions of this subsection unless sulphur is being produced in paying quantities or drilling, well reworking, plant construction, or other operations for the [production](/usc/43/1331.md?p=m) of sulphur, as approved by the [Secretary](/usc/43/1331.md?p=b), are being conducted on the area covered by such [lease](/usc/43/1331.md?p=c) on the date of expiration of such primary term or extension: Provided further, That if sulphur is being produced in paying quantities on such date, then such rights shall continue to be maintained in accordance with such [lease](/usc/43/1331.md?p=c) and the provisions of this subchapter: Provided further, That, if the primary term of a [lease](/usc/43/1331.md?p=c) being maintained under this subsection has expired prior to August 7, 1953 and oil or gas is being produced in paying quantities on such date, then such rights to sulphur as the lessee may have under such [lease](/usc/43/1331.md?p=c) shall continue for twenty-four months from August 7, 1953 and as long thereafter as sulphur is produced in paying quantities, or drilling, well working, plant construction, or other operations for the [production](/usc/43/1331.md?p=m) of sulphur, as approved by the [Secretary](/usc/43/1331.md?p=b), are being conducted on the area covered by the [lease](/usc/43/1331.md?p=c).
- (c) **Nonwaiver of United States claims—** The permission granted in [subsection (b)](#b) of this section shall not be construed to be a waiver of such claims, if any, as the United States may have against the lessor or the lessee or any other [person](/usc/43/1301.md?p=h) respecting sums payable or paid for or under the [lease](/usc/43/1331.md?p=c), or respecting activities conducted under the [lease](/usc/43/1331.md?p=c), prior to August 7, 1953.
- (d) **Judicial review of determination—** Any [person](/usc/43/1301.md?p=h) complaining of a negative determination by the [Secretary](/usc/43/1331.md?p=b) of the Interior under this section may have such determination reviewed by the United States District Court for the District of Columbia by filing a petition for review within sixty days after receiving notice of such action by the [Secretary](/usc/43/1331.md?p=b).
- (e) **Lands beneath navigable waters—** In the event any [lease](/usc/43/1331.md?p=c) maintained under this section covers [lands beneath navigable waters](/usc/43/1301.md?p=a), as that term is used in the Submerged Lands Act [[43 U.S.C. 1301](/usc/43/1301.md) et seq.], as well as lands of the [outer Continental Shelf](/usc/43/1331.md?p=a), the provisions of this section shall apply to such [lease](/usc/43/1331.md?p=c) only insofar as it covers lands of the [outer Continental Shelf](/usc/43/1331.md?p=a).

## Source credit

(Aug. 7, 1953, ch. 345, § 6, 67 Stat. 465.)

## Notes

### Editorial Notes

### References in Text

The Submerged Lands Act, referred to in subsec. (e), is act May 22, 1953, ch. 65, 67 Stat. 29, which is classified generally to subchapters I (§ 1301 et seq.) and II (§ 1311 et seq.) of this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 1301 of this title and Tables.

### Statutory Notes and Related Subsidiaries

### Transfer of Functions

Functions of Secretary of the Interior to promulgate regulations under this subchapter which relate to fostering of competition for Federal leases, implementation of alternative bidding systems authorized for award of Federal leases, establishment of diligence requirements for operations conducted on Federal leases, setting of rates for production of Federal leases, and specifying of procedures, terms, and conditions for acquisition and disposition of Federal royalty interests taken in kind, transferred to Secretary of Energy by section 7152(b) of Title 42, The Public Health and Welfare. Section 7152(b) of Title 42 was repealed by Pub. L. 97–100, title II, § 201, Dec. 23, 1981, 95 Stat. 1407, and functions of Secretary of Energy returned to Secretary of the Interior. See House Report No. 97–315, pp. 25, 26, Nov. 5, 1981.