2 "(E) The Secretary may collect lease proceeds on behalf of any private owner of Naval Petroleum Reserve Numbered 1 and may pay the owner its share of lease 16002(b) and (d) of this title shall be considered to "SEC. 16008. EFFECT ON SCHOOL LANDS GRANT. "(a) Subject to the provisions of this section, the authority to lease under this title extends to sections 16 and 36 within Naval Petroleum Reserve Numbered 1. "(b) A payment may be made under section 16006(c) of this title only after the State of California, on behalf of all party plaintiffs, dismisses without prejudice, either by stipulation or motion, the lawsuit filed by the State against the United States and certain agency officials in November, 1987 in the United States District Court for the Eastern District of California (Docket No. CV-F-87-665-EDP). "(c) Any rights of the State of California under section 6 of the Act of March 3, 1853 (Chapter CXLV; 10 Stat. 246) to sections 16 and 36, Township 30 South, Range 23 East Mount Diablo Base and Meridian, located within Elk Hills, including all rights to indemnity lands H 2 3 4 5 6 under Revised Statutes 2275 and 2276 (43 U.S.C. SS 851 and "(1) abated during such time as the State of California is receiving the payments described in section 16006(c) of this title, and "(2) extinguished in full upon the receipt by the State of California of the seventh and final payment of its share of the lease bonus payments described in section 16006(c) of this title; provided that any extinguishment of rights described in paragraph (2) shall not prejudice or otherwise adversely affect the right of the State of California to receive the payments described in section 16006(c) of this title. "(d) During the period beginning with the date of enactment of this subtitle and ending upon the date of the extinguishment of the rights of the State of California in the manner provided in subsection (c)(2), the limitation periods under any statutes of limitations applicable to actions in respect of the rights of the State described in subsection (c) shall be tolled; provided, however, that nothing in this subsection (d) shall be construed as affecting during the period prior to the date of enactment of this subtitle any limitations period under any statute of limitations applicable to actions in respect of the rights of the State described in subsection (c). "(e) Upon the cancellation, termination, or forfeiture of any lease of Naval Petroleum Reserve Numbered 1 authorized under this subtitle, in the event that the Secretary fails to enter into a new lease within twenty four months after the date of such cancellation, termination, or forfeiture, the State of California shall be entitled to receive seven percent of any revenues derived by the United States from Naval Petroleum Reserve Numbered 1 during the period following expiration of such twenty-four month period until a new lease is entered into by the Secretary; provided that any revenues received by the State of California under this subsection (e) shall be credited against any royalties that otherwise would become due to the State under section 16006(c) of this title upon a subsequent lease of Naval Petroleum Reserve Numbered 1." "SEC. 16009. CONFORMING AMENDMENTS. "(a) Section 501 of Public Law 101-45 (103 Stat. 103) is deemed modified to the extent inconsistent herewith. "(b) Section 7422(a) and (b) of title 10, United States Code, are amended to read as follows: '(a) The Secretary, directly or by contract, lease, or otherwise, shall explore, prospect, conserve, develop, use, and operate the naval petroleum reserves in his discretion, subject to the provisions of this chapter, except the authority to lease is not extended to Naval '(b) Except as otherwise provided in this chapter, particularly subsection (c) of this section, and in the Naval Petroleum Reserve Leasing Act, the naval petroleum reserves shall be used and operated for- '(1) the protection, conservation, maintenance, and testing of those reserves; or '(2) the production of petroleum whenever and to the extent that the Secretary, with the approval of the President, finds that such production is needed for national defense purposes and the production is authorized by a joint resolution of Congress.'. "(c) Section 7422(c)(1)(B) of title 10, United States Code, is amended to read as follows: (B) to produce such reserves at the maximum efficient rate consistent with sound engineering practices.'. "(d) Sections 7422(c)(1)(C), 7422(c)(2), and 7426(b), (c), (d), and (e) of title 10, United States Code, are repealed. "(e) Sections 7430(a) of title 10, United States Code, is amended to read as follows: '(a) In administering the naval petroleum reserves under this chapter, except for those reserves covered by 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 222 24 25 leases executed pursuant to the Naval Petroleum Reserve Leasing Act, the Secretary shall use, store, or sell the petroleum produced from the naval petroleum reserves and lands covered by joint, unit, or other cooperative plans as provided in this section.'. "(£) Section 7430 (b)(1) of title 10, United States Code, is amended by striking 'paragraph (2) and notwithstanding any other provision of law' and inserting 'subsection (a) and paragraph (2)'. "(g) Section 7430(f) of title 10, United States Code, is amended to read as follows: '(E) The consultation and approval requirements of section 7431(a)(3) are waived for contracts to sell petroleum produced from Naval Petroleum Reserves Numbered 1, 2, and 3, and for contracts to sell petroleum from the Naval Oil Shale Reserves which is produced for their exploration, protection, conservation, maintenance, and testing.'. "(h) Section 7430(1)(1) of title 10, United States Code, is amended to read as follows: '(1) The Secretary, at the request of the Secretary of Defense, may provide any portion of the United States share of petroleum to the Department of Defense for its use, exchange, or sale in order to meet petroleum product requirements of the Department of Defense.'. |