(1) A petroleum agreement shall provide that any natural gas produced in association with crude oil may be used in petroleum operations, but such use shall be in accordance with such Regulations as may be prescribed and with good petroleum industry practice and approved production plans.

(2) Any natural gas produced by a contractor in association with crude oil which is not used in petroleum operations pursuant to subsection (1) of this section and all natural gas produced other than in association with crude oil shall be the property of the Corporation except as may otherwise be agreed upon by the Corporation and the contractor in accordance with the terms of a petroleum agreement.