76 STAT.]
905
PUBLIC LAW 87-796-OCT. 11, 1962
" (b) The Secretary shall report annually to Congress all agreements under this section." (5) Section 7428 is amended to read as follows: "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 and oil shale 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." (6) Section 7430 is amended to read as follows: " (a) The Secretary of the Navy in administering the naval petroleum and oil shale reserves under this chapter shall use, store, sell, or exchange for other petroleum or refined products, the oil and gas products, including royalty products, oil shale and products therefrom produced, from lands in the naval petroleum and oil shale 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, other hydrocarbons, oil shale, or products therefrom, 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." (7) Section 7431 is amended to read as follows: "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 or oil shale reserves. "(2) A contract to alienate from the United States the use, control, or possession of any part of the naval petroleum or oil shale reserves (except that consultation and Presidential approval are not required in connection with the issuance of permits, licenses, easements, grazing and agricultural leases, rights-of-way, and similar contracts pertaining to use of the surface area of the naval petroleum and oil shale reserves). "(3) A contract to sell the oil and gas (other than royalty oil and gas), oil shale, and products therefrom produced from any part of the naval petroleum and oil shale 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." (8) Section 7432 is amended to read as follows: "(a) Expenses incurred by the Secretary of the Navy with respect to the naval petroleum and oil shale reserves shall be paid from appropriations made available for the purposes specified in this chapter. " (b) Expenditures necessary to carry out this chapter shall be made under the direction of the President, who shall submit estimates for these expenditures as prescribed by law." (9) Section 7433 is amended to read as follows: " (a) Any oil, gas, gasoline or other substance accruing to the United States as royalty from any lease under this chapter shall be delivered
Agreements and leases. 70A Stat. 460.
Disposition of products.
Prior ^proval for certain transactions.
Expenditures
Disposition of royalties.
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