(a) General Rule.—No person who is not an Osage Indian may, on or after October 21, 1978, receive any interest in any headright, other than a life estate in accordance with subsection (b), whether such interest would be received by such person (but for this subsection) under a will, a testamentary or inter vivos trust, or the Oklahoma laws of intestate succession.
“(b) Exception for Life Estates.—Notwithstanding subsection (a) and subject to section 5(d)(2) [set out above], an individual who is not an Osage Indian may receive a life estate in any headright held by a testator, settlor, or decedent who is or was an Osage Indian under a will, or under a testamentary trust established by a will, of such testator, an inter vivos trust established by such settlor, or the Oklahoma laws of intestate succession relating to the administration of the estate of such decedent.
“(c) Special Rules Governing Interests in Osage Headright Upon Death of Individual Who Held Life Estate in Such Headright.—“(1) Designated osage remaindermen.—Upon the death of any individual who is not an Osage Indian and who held a life estate in any headright of a testator or settlor described in subsection (b), all remaining interests in such headright shall vest in any remaindermen who—“(A) are designated in the will of the testator or the instrument establishing the trust of the settlor to receive such remainder interest, and
“(B) are Osage Indians.
“(2) No designated osage remaindermen.—Upon the death of any individual who is not an Osage Indian and who held a life estate in any headright of a testator, settlor, or decedent described in subsection (b) who—“(A) did not designate any remainderman who is an Osage Indian to receive any remaining interest in such headright in the will of such testator or instrument of such settlor, or
“(B) died intestate,
all remaining interests in such headright shall vest in any heirs, as determined under the Oklahoma laws of intestate succession, of such testator, settlor, or decedent who are Osage Indians.
“(3) No heir who is an osage indian.—Upon the death of any individual who is not an Osage Indian and who held a life estate in any headright of an Osage testator, settlor, or decedent described in subsection (b) who—“(A) designated no remainderman who is an Osage Indian for any remaining interest in such headright, and
“(B) had no heir under the Oklahoma laws of intestate succession who is an Osage Indian and is living at the time of death of the individual who held such life estate,
all remaining interests in such headright shall vest in the Osage Tribe of Indians.
“(d) Liability of Tribe in Case of Remainderman or Heir Who is Not an Osage Indian.—In any case in which—“(1) any remainder interest of a testator, settlor, or decedent described in subsection (b) vests in the Osage Tribe of Indians under subsection (c)(3), and
“(2) an individual who is not an Osage Indian and who, but for this section, would have received any portion of such remaining interest in the headright by virtue of—“(A) having been designated under the will of such testator, or the instrument of such settlor which established any such trust, to receive such remainder interest, or
“(B) being the heir of such decedent under the Oklahoma laws of intestate succession,
the tribe shall pay any such individual the fair market value of the portion of the interest in such headright such individual would have received but for this section.