PUBLIC LAWS-CH. 262-JUNE 17, 1944 Contracts for con- "In order to consolidate and protect the oil lands owned by the servion purposes. Government the Secretary of the Navy is authorized to contract with owners and lessees of land within or adjoining such reserves for conservation in the ground of oil and gas and for compensation for estimated drainage in lieu of drilling or operating offset wells, and Exchanges for pri- to exchange Government land in naval petroleum reserve numbered e ownedlandsor 1, the right to royalty production from any of the naval petroleum reserves, and the right to any moneys due to the Government as a result of the wrongful extraction of petroleum products from lands within naval petroleum reserve numbered 1, for privately owned land or leases within naval petroleum reserve numbered 1: Provided, apCproval re d That no lease of any portion of the naval petroleum reserves, no con- ments. tract to alienate the use, control, or possession thereof from the United States, no contract to sell the oil and gas products thereof, other than royalty oil and gas products, no contract for conservation or for compensation for estimated drainage, and no exchange of any land, any right to royalty production or any right to any moneys as herein- above authorized shall become effective nor shall any condemnation proceedings be instituted until after consultation in regard to all its details with the Naval Affairs Committees of the Congress and after Report toCongress. approval by the President: Provided further, That the Secretary of the Navy shall report annually to the Congress all agreements entered Acuisitionsby- into under the authority herein granted. chase or oondemna- "In the event of the inability of the Secretary of the Navy to make tion. arrangements he finds satisfactory for exchanges of land or agree- ments for conservation as authorized under the preceding paragraph of this Act, or for contracts for joint, unit, or other cooperative plans with respect to lands or leases as authorized under the first paragraph of this Act, he is hereby authorized, with the approval of the President, to acquire such privately owned lands or leases (a) within the reserves or outside thereof but on the same geologic structure, by purchase, and (b) within naval petroleum reserve num- bered 1 by condemnation, and (c) outside naval petroleum reserve numbered 1 but on the same geologic structure, provided that sub- thized. au- stantial drainage exists, by condemnation. There is hereby author- pOt, p. 867 . ized to be appropriated such sums as may be necessary to carry out the provisions of this Act. Such sums shall be expended under the direction of the President, who shall submit to the Congress estimates ReporttoCongre. therefor in the manner prescribed by law: Provided, That the Secre- tary of the Navy shall report annually to the Congress all purchase and condemnation proceedings entered into under the authority herein granted and shall, within thirty days after the close of each calendar quarter, report to the Naval Affairs Committees of the Congress the total production from the reserves during the preceding Termination of cer- quarter. tain leases. "Leases of lands of the United States within the naval petroleum reserves, in existence prior to July 1, 1936, excepting those leases which have become a part of an approved unit or cooperative plan Re-leasing. and agreement, shall terminate at the expiration of their initial twenty-year periods, and the lands covered by such terminated leases may be re-leased upon such reasonable terms and conditions as the Secretary of the Navy may prescribe, with the preferential right tipultion as to in the former lessees to leases of the same if and when the lands are rates of prospecting, re -leased: Provided,That every unit or cooperative plan of develop- poducton,et ment and operation entered into after July 1, 1937, other than such plans as are specifically authorized in the first paragraph of this Act, and every lease entered into subsequent to July 1, 1937, with respect to lands owned by the United States within the naval petroleum reserves, shall contain a provision whereby authority limited as pro- [58 STAT.
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