Page:United States Statutes at Large Volume 70A.djvu/518

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460 § 7427. Cooperative or unit plans in the naval petroleum reserves I'he Secretary of the Navy, with the consent of the President, may make agreements, with respect to lands inside the naval petroleum reserves, of the same type as the Secretary of the Interior may make under section 226e of title 30. No such agreement made by the Secretary of the Navy may extend the term of any lease unless the agreement so provides. § 7428. Agreements and leases: provision for change Every unit or cooperative plan of development and operation, except a plan authorized by section 7426 of this title, and every lease affecting lands owned by the United States within the naval petroleum reserves shall contain a provision authorizing the Secretary of the Navy, subject to approval by the President and to any limitation in the plan or lease, to change from time to time the rate of prospecting and development on, and the quantity and rate of production from, lands of the United States under the plan or lease, notwithstanding any other provision of law. §7429. Re-lease of certain lands: lessee's preferential right The Secretary of the Navy, on terms prescribed by him, may re-lease lands in the naval petroleum reserves 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 shall give to the former lessee preferential rights to the new lease. §7430. Disposition of products (a) The Secretary of the Navy in administering the naval petroleum reserves under this chapter shall use, store, sell, or exchange for other petroleum or refined products, the oil and gas products, including royalty products, from lands in the naval petroleum reserves and lands outside petroleum reserve numbered 1 covered by joint, unit, or other cooperative plans, for the benefit of the United States. (b) Each sale of petroleum, gas, or other hydrocarbons under this section shall be made by the Secretary at public sale to the highest qualified bidder at such time, in such amounts, and after such advertising as the Secretary considers proper. § 7431. Requirements as to consultation and approval The Committees on Armed Services of the Senate and 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. (2) A contract to alienate from the United States the use, control, or possession of any part of the naval petroleum reserves. (3) A contract to sell the oil and gas products, other than royalty products, from any part of the naval petroleum reserves. (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.