Hawaii Amendment to Oil, Gas and Mineral Lease (to Provide for Gas Storage)
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FAQ
By way of background, a ?free use? clause is a provision in an oil/gas lease which gives the lessee the right to use gas produced from the leasehold.
L. 100?203, title V, §5113, 101 Stat. 1330?263, provided that: ?This Act [enacting this chapter] may be cited as the 'Mineral Leasing Act'.? This chapter is also popularly known as the ?Mineral Leasing Act of 1920? and the ?Mineral Lands Leasing Act?.
A mineral lease is a contractual agreement between the owner of a mineral estate (known as the lessor), and another party such as an oil and gas company (the lessee). The lease gives an oil or gas company the right to explore for and develop the oil and gas deposits in the area described in the lease.
The Mineral Leasing Act (MLA) is a United States federal law that authorizes the leasing of public domain lands for exploring and developing coal, oil, natural gas, and other minerals. Enacted in 1920, it has undergone numerous amendments.
What is the granting clause? The granting clause is the clause under which the owner of the oil and gas rights leases the oil and gas rights to the oil and gas company along with the right to develop the oil and gas on a specifically described piece of real estate.
The Mineral Leasing Act for Acquired Lands of 1947 (30 U.S.C. §§ 351 et seq.) extended the mineral leasing laws (the Mineral Leasing Act, etc.) to all lands acquired by the United States. The Act allowed the United States to maintain title to the land and establish lease terms for all minerals found on acquired land.
On February 25, 1920, President Woodrow Wilson signed the Mineral Leasing Act of 1920. The new law made exploring for and extracting oil and gas on federal land a privilege, not a right.
The Mineral Leasing Act "establishes qualifications for leases, sets out maximum limits on the number of acres of a particular mineral that can be held by a lessee, and prohibits alien ownership of leases except through stock ownership in a corporation." Conditions of a lease under the Mineral Leasing Act vary based on ...