
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC6213]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                     CHAPTER 77--ENERGY CONSERVATION
 
               SUBCHAPTER I--DOMESTIC SUPPLY AVAILABILITY
 
                         Part A--Domestic Supply
 
Sec. 6213. Certain lease bidding arrangements prohibited


(a) Promulgation of rule by Secretary of the Interior

    The Secretary of the Interior shall, not later than 30 days after 
December 22, 1975, prescribe and make effective a rule which prohibits 
the bidding for any right to develop crude oil, natural gas, and natural 
gas liquids on any lands located on the Outer Continental Shelf by any 
person if more than one major oil company, more than one affiliate of a 
major oil company, or a major oil company and any affiliate of a major 
oil company, has or have a significant ownership interest in such 
person. Such rule shall define affiliate relationships and significant 
ownership interests.

(b) Definitions

    As used in this section:
        (1) The term ``major oil company'' means any person who, 
    individually or together with any other person with respect to which 
    such person has an affiliate relationship or significant ownership 
    interest, produced during a prior 6-month period specified by the 
    Secretary, an average daily volume of 1,600,000 barrels of crude 
    oil, natural gas liquids equivalents, and natural gas equivalents.
        (2) One barrel of natural gas equivalent equals 5,626 cubic feet 
    of natural gas measured at 14.73 pounds per square inch (MSL) and 60 
    degrees Fahrenheit.
        (3) One barrel of natural gas liquids equivalent equals 1.454 
    barrels of natural gas liquids at 60 degrees Fahrenheit.

(c) Exemptions

    The Secretary may, in his discretion, consider a request from any 
person described in subsection (a) of this section for an exemption from 
the prohibition of this section. In considering any such request, the 
Secretary may exempt bidding for leases for lands in any area only if 
the Secretary finds, on the record after opportunity for an agency 
hearing, that--
        (1) such lands have extremely high cost exploration or 
    development problems; and
        (2) exploration and development will not occur on such lands 
    unless such exemption is granted.

Findings of the Secretary under this subsection shall be final, and 
shall not be invalidated unless found to be arbitrary or capricious.

(d) Unitization of producing fields

    This section shall not be construed to prohibit the unitization of 
producing fields to increase production or maximize ultimate recovery of 
oil or natural gas, or both.

(e) Report to Congress covering extension of restrictions on joint 
        bidding

    The Secretary shall study and report to the Congress, not later than 
6 months after December 22, 1975, with respect to the feasibility and 
desirability of extending the prohibition on joint bidding to--
        (1) bidding for any right to develop crude oil, natural gas, and 
    natural gas liquids on Federal lands other than those located on the 
    Outer Continental Shelf; and
        (2) bidding for any right to develop coal and oil shale on such 
    lands.

(Pub. L. 94-163, title I, Sec. 105, Dec. 22, 1975, 89 Stat. 879; Pub. L. 
95-372, title II, Sec. 205(c), Sept. 18, 1978, 92 Stat. 646.)


                               Amendments

    1978--Subsec. (c). Pub. L. 95-372 substituted ``in his discretion, 
consider a request from any person described in subsection (a) of this 
section for an exemption from the prohibition of this section'' for ``by 
amendment to the rule, exempt bidding for leases for lands located in 
frontier or other areas determined by the Secretary to be extremely high 
risk lands or to present unusually high cost exploration, or 
development, problems'' in existing provisions and inserted provisions 
setting out the requisite finding of the Secretary and making 
arbitrariness and capriciousness of the Secretary's findings the only 
bases for invalidation of those findings.

                          Transfer of Functions

    Functions of Secretary of the Interior to promulgate regulations 
under this chapter relating to fostering of competition for Federal 
leases and to implementation of alternative bidding systems authorized 
for award of Federal leases transferred to Secretary of Energy by 
section 7152(b) of this title. Section 7152(b) of this title repealed by 
Pub. L. 97-100, title II, Sec. 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.

                  Section Referred to in Other Sections

    This section is referred to in section 7172 of this title.
