To amend the Mineral Leasing Act to provide for the continuation of certain future interest oil and gas leases.

Amends the Mineral Leasing Act to mandate that, upon the leaseholder's election, continuation of certain oil or gas leases on lands in which the United States held a vested future interest in the mineral estate along with a vested present interest in the surface estate. Requires that: (1) oil or gas was being produced before the mineral interest reverted to the United States; and (2) royalties and rents be paid to the United States.

 
HR 2501 IH
101st CONGRESS
1st Session
 H. R. 2501
To amend the Mineral Leasing Act to provide for the continuation of certain
future interest oil and gas leases.
IN THE HOUSE OF REPRESENTATIVES
May 25, 1989
Mr. MCEWEN introduced the following bill; which was referred to the Committee
on Interior and Insular Affairs
A BILL
To amend the Mineral Leasing Act to provide for the continuation of certain
future interest oil and gas leases.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. CONTINUATION OF CERTAIN VESTED FUTURE INTEREST OIL AND GAS LEASES.
  Section 17(b) of the Mineral Leasing Act (30 U.S.C. 226(b)) is amended--
  (1) in paragraph (1)(A), by striking `under paragraph (2)' and inserting
  `under paragraphs (2) and (3)'; and
  (2) by adding at the end the following:
  `(3) If--
  `(A) the lands to be leased are lands in which--
  `(i) the United States held a vested future interest in the mineral estate
  and a vested present interest in the surface estate; and
  `(ii) immediately prior to becoming a vested present interest in the United
  States, the mineral estate was subject to a lease under which oil or gas
  was being produced in paying quantities; and
  `(B) the holder of the lease referred to in subparagraph (A)(ii) elects
  to continue that lease;
then such lands shall be leased, subject to the same terms and conditions
specified in that lease, including the amount of royalty payments and
rents, except that such royalty payments and rents shall be paid to the
United States. Such lease shall continue so long as oil or gas is produced
in paying quantities. Subsections (c)(1), (d), and (e) shall not apply with
respect to a lease issued under this paragraph.'.