
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC7422]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle C--Navy and Marine Corps
 
                     PART IV--GENERAL ADMINISTRATION
 
                  CHAPTER 641--NAVAL PETROLEUM RESERVES
 
Sec. 7422. Administration

    (a) The Secretary, directly or by contract, lease, or otherwise, 
shall explore, prospect, conserve, develop, use, and operate the naval 
petroleum reserves in his discretion, subject to the provisions of 
subsection (c) and the other provisions of this chapter; except that no 
petroleum leases shall be granted at Naval Petroleum Reserves Numbered 1 
and 3.
    (b) Except as otherwise provided in this chapter, particularly 
subsection (c), the naval petroleum reserves shall be used and operated 
for--
        (1) the protection, conservation, maintenance, and testing of 
    those reserves; or
        (2) the production of petroleum whenever and to the extent that 
    the Secretary, with the approval of the President, finds that such 
    production is needed for national defense purposes and the 
    production is authorized by a joint resolution of Congress.

    (c)(1) In administering Naval Petroleum Reserves Numbered 1, 2, and 
3, the Secretary is authorized and directed--
        (A) to further explore, develop, and operate such reserves;
        (B) to produce, during any extension of a period under paragraph 
    (2), such reserves--
            (i) at the maximum efficient rate consistent with sound 
        engineering practices; or
            (ii) at a lesser rate consistent with sound engineering 
        practices and the protection, conservation, maintenance, and 
        testing of such reserves if the Secretary determines that the 
        minimum price described in section 7430(b)(2) of this title 
        cannot be attained for the United States share of petroleum 
        (other than natural gas liquids) produced from such Reserves;

        (C) during such production period or any extension thereof to 
    sell or otherwise dispose of the United States share of such 
    petroleum produced from such reserves as provided in section 7430 of 
    this title; and
        (D) to construct, acquire, or contract for the use of storage 
    and shipping facilities on and off the reserves and pipelines and 
    associated facilities on and off the reserves for transporting 
    petroleum from such reserves to the points where the production from 
    such reserves will be refined or shipped.

Any pipeline in the vicinity of a naval petroleum reserve not otherwise 
operated as a common carrier may be acquired by the Secretary by 
condemnation, if necessary, if the owner thereof refuses to accept, 
convey, and transport without discrimination and at reasonable rates any 
petroleum produced at such reserve. With the approval of the Secretary, 
rights-of-way for new pipelines and associated facilities may be 
acquired by the exercise of the right of eminent domain in the 
appropriate United States district court. Such rights-of-way may be 
acquired in the manner set forth in the Act of February 26, 1931 (40 
U.S.C. 258a-258e), and the prospective holder of the right-of-way is 
``the authority empowered by law to acquire the lands'' within the 
meaning of that Act. Such new pipelines shall accept, convey, and 
transport without discrimination and at reasonable rates any petroleum 
produced at such reserves as a common carrier.
    (2) After April 5, 1982, the President may extend the period of 
production in the case of any naval petroleum reserve for additional 
periods of not to exceed three years each--
        (A) after the President requires an investigation to be made, in 
    the case of each extension, to determine the necessity for continued 
    production from such naval petroleum reserve;
        (B) after the President submits to the Congress, at least 180 
    days before the expiration of the current production period 
    prescribed by this section, or any extension thereof, a copy of the 
    report made to him on such investigation together with a 
    certification by him that continued production from such naval 
    petroleum reserve is in the national interest; and
        (C) if neither House of Congress within ninety days after 
    receipt of such report and certification adopts a resolution 
    disapproving further production from such naval petroleum reserve.

(Aug. 10, 1956, ch. 1041, 70A Stat. 458; Pub. L. 87-599, Sec. 1, Aug. 
24, 1962, 76 Stat. 401; Pub. L. 87-796, Sec. 1(2), Oct. 11, 1962, 76 
Stat. 904; Pub. L. 94-258, title II, Sec. 201(3), Apr. 5, 1976, 90 Stat. 
307; Pub. L. 96-137, Sec. 3(a), Dec. 12, 1979, 93 Stat. 1061; Pub. L. 
96-513, title V, Sec. 513(31), Dec. 12, 1980, 94 Stat. 2933; Pub. L. 98-
525, title XIV, Sec. 1405(51), Oct. 19, 1984, 98 Stat. 2625; Pub. L. 99-
413, Sec. 1(a), Aug. 29, 1986, 100 Stat. 944; Pub. L. 100-202, 
Sec. 101(g) [title II, Sec. 201], Dec. 22, 1987, 101 Stat. 1329-213, 
1329-242; Pub. L. 101-189, div. A, title XVI, Sec. 1622(f)(2), Nov. 29, 
1989, 103 Stat. 1605.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
            Revised section                      Source (U.S. Code)            
   Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
7422..................................  34 U.S.C. 524 (1st par., 37th        Ju
ne 4, 1920, ch. 228 (1st par.,
                                         through 62d words, and 123d          3
7th through 62d words, and 123d
                                         through 185th words).                t
hrough 185th words, of amended 3d
                                                                              a
nd 4th provisos), 41 Stat. 813;
                                                                              J
une 30, 1938, ch. 851, Sec.  1,
                                                                              5
2 Stat. 1252; June 17, 1944, ch.
                                                                              2
62, 58 Stat. 280.
-------------------------------------------------------------------------------
---------------------------------

                       References in Text

    Act of February 26, 1931 (40 U.S.C. 258a-258e), referred to in 
subsec. (c)(1), is act Feb. 26, 1931, ch. 307, 46 Stat. 1421, as 
amended, known as the ``Declaration of Taking Act'', which is classified 
to section 258a et seq. of Title 40, Public Buildings, Property, and 
Works. Pub. L. 99-656, Sec. 1(2), Nov. 14, 1986, 100 Stat. 3668, amended 
act Feb. 26, 1931, by adding section 6, which is classified to section 
258e-1 of Title 40.


                               Amendments

    1989--Subsec. (c)(2)(B). Pub. L. 101-189 substituted ``180 days 
before'' for ``one hundred eighty days prior to''.
    1987--Subsec. (c)(1)(B)(ii). Pub. L. 100-202 inserted ``(other than 
natural gas liquids)'' after ``petroleum''.
    1986--Subsec. (c)(1)(B). Pub. L. 99-413, Sec. 1(a)(1), added subpar. 
(B) and struck out former subpar. (B) which read as follows: ``to 
produce such reserves at the maximum efficient rate consistent with 
sound engineering practices for a period ending not later than April 5, 
1982;''.
    Subsec. (c)(3). Pub. L. 99-413, Sec. 1(a)(2), struck out par. (3) 
which conditioned the production authorization for Naval Petroleum 
Reserve Numbered 1 upon private owners' agreements with the Secretary to 
continue operations of such reserve under a unitized plan contract that 
protected the public interest.
    1984--Subsec. (b). Pub. L. 98-525 struck out ``of this section'' 
after ``subsection (c)'' in provisions preceding par. (1).
    1980--Subsec. (c)(1). Pub. L. 96-513, Sec. 513(31)(A)-(D), in cl. 
(B) substituted provisions respecting termination on April 5, 1982, for 
provisions respecting commencement and termination, respectively, ninety 
days after date of enactment of the Naval Petroleum Reserves Production 
Act of 1976, and not to exceed six years after such date, in cl. (C) 
substituted ``provided in section 7430 of this title'' for ``hereinafter 
provided'', and in text following cl. (D) substituted ``discrimination'' 
for ``discrimiation'', and ``(40 U.S.C. 258a-258e)'' for ``, chapter 307 
(46 Stat. 1421; 40 U.S.C. 258(a))''.
    Subsec. (c)(2). Pub. L. 96-513, Sec. 513(31)(E), substituted ``After 
April 5, 1982,'' for ``At the conclusion of the six-year production 
period authorized by paragraph (1)(B) of this subsection''.
    Subsec. (c)(3). Pub. L. 96-513, Sec. 513(31)(F), substituted ``by 
July 4, 1976'' for ``within ninety days after the date of enactment of 
the Naval Petroleum Reserves Production Act of 1976''.
    1979--Subsec. (c)(1). Pub. L. 96-137 struck out in text following 
subpar. (D), provision requiring that pipelines and associated 
facilities constructed at or procured for Naval Petroleum Reserve 
Numbered 1 pursuant to this subsection have adequate capacity to 
accommodate not less than three hundred fifty thousand barrels of oil 
per day and be fully operable as soon as possible, but not later than 
three years after the date of enactment of the Naval Petroleum Reserves 
Production Act of 1976.
    1976--Subsec. (a). Pub. L. 94-258 substituted provisions authorizing 
the Secretary to explore, etc., the naval petroleum reserves in his 
discretion, subject to subsec. (c) of this section and this chapter and 
excepting specified Reserves from leasing arrangements, for provisions 
authorizing the Secretary of the Navy, except as provided in section 
7438 hereof, to explore, etc., the naval petroleum preserves and oil 
shale reserves in his discretion, subject to Presidential approval.
    Subsec. (b). Pub. L. 94-258 in introductory cl. substituted 
provisions authorizing use and operation of naval petroleum reserves 
except as otherwise provided in this chapter and in particular subsec. 
(c) of this section, for provisions authorizing use and operation of 
naval petroleum and oil shale reserves and lands outside naval petroleum 
reserve numbered 1 covered by contracts under section 7426 of this title 
and in cl. (2) struck out reference to gas, oil shale and products 
thereof.
    Subsec. (c). Pub. L. 94-258 substituted provisions setting forth 
manner of administration by Secretary of Naval Petroleum Reserves 
Numbered 1, 2, and 3, authorizing President to extend period of 
production of any naval petroleum reserve, and conditioning production 
authorization for Reserve Numbered 1, for provisions authorizing the 
Secretary to develop naval petroleum reserve numbered 4, South Barrow 
gas field, and to supply gas to government installations at or near 
Point Barrow and to the native village of Barrow.
    1962--Subsec. (a). Pub. L. 87-796 substituted ``Except as otherwise 
provided in section 7438 hereof, the Secretary'' for ``The Secretary'', 
and included oil shale reserves.
    Subsec. (b). Pub. L. 87-796 included oil shale reserves in the 
opening provisions, and substituted ``petroleum, gas, oil shale and 
products thereof whenever'' for ``petroleum whenever'' in cl. (2).
    Subsec. (c). Pub. L. 87-599 added subsec. (c).


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section 
701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of this 
title.


    Availability of Revenues From Sale of Natural Gas for Use in Gas 
                           Protection Activity

    Pub. L. 101-512, title II, Nov. 5, 1990, 104 Stat. 1947, provided in 
part: ``That, notwithstanding any other provision of law, revenues 
received from the sale of natural gas after the date of enactment of 
this Act [Nov. 5, 1990] from wells drilled or communitized in fiscal 
year 1990 and thereafter as part of gas protection activity at the Naval 
Oil Shale Reserves shall be deposited in this account, to remain 
available until expended, for use in further gas protection activity''.


            Connections to Pipeline in South Barrow Gas Field

    Section 3 of Pub. L. 87-599 provided that: ``The Federal agency or 
agencies in control of any pipeline between gas wells in the South 
Barrow gas field and the town of Barrow may authorize purchasers of the 
gas or carriers of the gas to install connections to such pipeline.''

                  Section Referred to in Other Sections

    This section is referred to in sections 7423, 7430, 7431 of this 
title; title 42 section 6240; title 43 section 1601.
