§ 8724. Protection of oil reserves; contracts for conservation

• (a) To consolidate and protect the oil lands owned by the United States, the Secretary may—
  • (1) contract with owners and lessees of land inside or adjoining naval petroleum reserves for—
    • (A) conservation of oil and gas; and
    • (B) compensation for estimated drainage in lieu of drilling or operating offset wells; and
  • (2) acquire privately owned lands or leases inside Naval Petroleum Reserve Numbered 1 by exchange of—
    • (A) lands of the United States inside Naval Petroleum Reserve Numbered 1;
    • (B) the right to royalty production from any of the naval petroleum reserves; and
    • (C) the right to any money due the United States as a result of the wrongful extraction of petroleum products from lands inside Naval Petroleum Reserve Numbered 1.
• (b) The Secretary shall report annually to Congress all agreements under this section.