RESERVED OIL AND GAS.

SEC. 2507. RESERVED OIL AND GAS. (a) In General.— Section 17(b) of the Mineral Leasing Act (30 U.S.C. 226(b)) is amended as follows— (1) In paragraph (1)(A), strike out “under paragraph (2)” and insert in lieu thereof “under paragraphs (2) and (3)”. (2) Adding at the end thereof the following new paragraph: “(3) (A) If the United States held a vested future interest in a mineral estate that, immediately prior to becoming a vested present interest, was subject to a lease under which oil or gas was being produced, or had a well capable of producing, in paying quantities at an annual average production volume per well per day of either not more than 15 barrels per day of oil or condensate, or not more than 60,000 cubic feet of gas, the holder of the lease may elect to continue the lease as a noncompetitive lease under subsection (c)(1). “(B) An election under this paragraph is effective— (i) in the case of an interest which vested after January 1, 1990, and on or before the date of enactment of this paragraph, if the election is made before the date that is 1 year after the date of enactment of this paragraph; (ii) in the case of an interest which vests within 1 year after the date of enactment of this paragraph, if the election is made before the date that is 2 years after the date of enactment of this paragraph; and “(iii) in any case other than those described in clause (i) or (ii), if the election is made prior to the interest becoming a vested present interest. 106 STAT. 3108 “(C) Notwithstanding the consent requirement referenced in section 3 of the Mineral Leasing Act for Acquired Lands (30 U.S.C. 352), the Secretary shall issue a noncompetitive lease under subsection (c)(1) to a holder who makes an election under subparagraph (A) and who is qualified to hold a lease under this Act. Such lease shall be subject to all terms and conditions under this Act that are applicable to leases issued under subsection (c)(1). “(D) A lease issued pursuant to this paragraph shall continue so long as oil or gas continues to be produced in paying quantities. “(E) This paragraph shall apply only to those lands under the administration of the Secretary of Agriculture where the United States acquired an interest in such lands pursuant to the Act of March 1, 1911 (36 Stat. 961 and following).”. (b) Effective Date.— The amendments made by subsection (a) apply with respect to those mineral estates in which the interest of the United States becomes a vested present interest after January 1, 1990.