HomeMy WebLinkAbout750703.tiff z 3 r /^1 (4.1
.1f; I; - OFFICE OF BOARD OF COUNTY COMMISSIONERS
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PHONE: 1303) 356-4000 EXT. 200
P.O. BOX 758
C. GREELEY, COLORADO 80631
COLORADO
July 16, 1979
U.S. Department of the Interior
Bureau of Land Management
Colorado State Office
Room 700, Colorado State Bank Building
1600 Broadway
Denver,Colorado 80202
ATTN: Rodney A. Roberts
Dear Mr. Roberts:
This is in response to your June 28, 1979 letter concerning the offer to
lease oil and gas on the following described land:
•
T. 5 N. , R. 67 W. , 6th P.M. , Colorado,
Sec. 2: Tract 100
As you are aware, the surface estate of the above-described land was
conveyed to Weld County for public park and public recreation purposes
on June 9, 1972. Since that time, Weld County has made a number of
improvements to the above land in order to develop a public park for the
citizens of Weld County. Considering the small size of the park area,
it is the opinion of the Board of County Commissioners of Weld County,
Colorado that to place an extraction site for the purposes of obtaining
oil or gas would be extremely disruptive to the overall public purpose
of that site and would virtually render it worthless as a public park
during the extraction period due to equipment and safety hazards.
For the above reasons, it is the opinion of the Weld County Board of
County Commissioners that the U.S. Department of Interior should not
lease the site for oil and gas. If a lease is issued over the object-
ions of the Weld County Board of County Commissioners, it is recommended
that any extraction of oil and gas be done on an off-site parcel of land
that would permit the extraction of the oil and gas from beneath the
surface of the park area in an area secured by fencing to avoid a safety
hazard for individuals using the park area.
750703
n
Dept. of Interior: July 16, 1979: Page Two
If you have any questions concerning the above or need additional
information, please do not hesitate to contact me or Don Warden, Dir-
ector of Finance and Administration, at (303) 356-4000, Ext. 218.
Sincerely,
Norman Carlson, Chairman
Board of Weld County Commissioners
NC:DDW:clb
A- / ,
IN REPLY REFER TO
C- �. .
United States Department of the Interior
'- ow*"CBUREAU OF LAND MANAGEMENT CO-946(JS)
COLORADO STATE OFFICE C-28013-Acq.
ROOM 700, COLORADO STATE BANK BUILDING
1600 BROADWAY
DENVER, COLORADO 80202
CERTIFIED MAIL
June 28, 1979
Board of County Commissioners
Weld County
County Courthouse
Greeley, Colorado 80631
•
Gentlemen:
Arthur E. Meinhart and Irwin Rubenstein, 1 Belleview Way, Littleton,
Colorado 80121, have filed an offer to lease oil and gas on the
following-described land:
T. 5 N. , R. 67 W. , 6th P.M. , Colorado,
Sec. 2: Tract 100
The surface estate of the above-described land was conveyed to Weld
County for public park and public recreation purposes on June 9, 1972.
The United States reserved all minerals in the land, including oil and
gas.
Please advise this office whether operations of an oil and gas lease
will materially interfere with the use of the land by the County, and
specify any special terms, conditions or stipulations the County
deems necessary to impose upon the lessees, if a lease issues. Your
attention is directed to regulations appearing at 43 CFR 3111.1-2(a)
(5)(ii) , a copy of which is enclosed to assist you in preparation of
your report.
If you have any questions with regard to this matter, please contact
Jenny Saunders of my staff at 837-3943.
Sincerely yours,
FOR Rodney A. Rob rts, Leader
Canon City-Grand Junction Team
Branch of Adjudication
Enclosure
oft CONSERVE
AMERICA'S
ENERGY
Save Energy and You Serve America!
.C,u2 VC)? C u,
7/9/79- P;' . ed%c-v (Let( t
5 n (Z 7 1?/,,)
Circular No. 2357
REGULATIONS PERTAINING TO: p. to
OIL AND GAS LEASING
As contained in Title 43 of the Code of Federal Regulations
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U.S. Department of the Interior
Bureau of Land Management
Reprint of regulations current as of January 8, 1974
PART 3100-OIL AND GAS LEASING Sec. Sec.
3102.7 Showing as to sole party in interest. 3105.5-3 Requirements.
Subpart 3100—Oil and Gas Leming;General 3102.8 Heirs and devisees(estates). 8105.5-4 Extension of lease term.
per\ Sec. 3102.9 Municipalities. 3105.6 Consolidation of leases,
8100.0-8 Authority. Subpart 3103—Fees,Rentals,and Royalty Subpart 3106—Assignment or Transfers and
3100.0-5 Definitions. y ty
3100.0-7 Cross references. 3103.0-3 Authorities. Subl
3100.0-9 Limitation on time to institute 9103.1 Payments. 3106.1 Qualifications.
suit to contest a Secretary's 3103.1-1 Form of remittance. 3106.1-1 Who may file.
decision. 3103.1-2 Where submitted. 3108.1-2 Failure to qualify.
3100.1 Helium, 3103.1-3 When submitted. 3106.1-3 Number of copies required.
8100.1-1 Ownership and rights, 9103.2 Fees. 3106.1-4 Sole party in interest.
3100.2 Minerals subject to leasing. 3103.2-1 General statement. 3106.1-5 Attorney-in-fact.
3100.2-1 Oil and gas. 3103.3 Rentals and royalties. 3106.1-6 Heirs and devisees.
3100.3 Drainage. 3103.3-1 Rental requirements. 3106.2 Requirements.
3100.3-1 Compensation for drainage. 3103.3-2 Advance rental payments. 3106.2-1 Where filed and filing fee.
e 3100.3-2 Drilling or payment of compenea- 3103.3-3 Fractional interests. 3106.2-2 Forms and statements.
tory royalty. 3103.3-4 Royalty on production. 3108.2-3 Bonds.
3100.3-3 Protective leasing. 9103.3-5 Minimum royalties. 3106.2-4 Royalty and production payment
9100.4 Multiple development. 3109.3-4 Limitation of overriding royalties. 3108.2-5 Lease account status.
3100.5 Options. 3103.9-7 Waiver, suspension or reduction of 3106.2-6 Description of lands.
3100.5-1 Enforceability. rental or minimim royalty. 3106.3 Approval.
3100.5-2 Chargeable acreage. 3103.3-8 Suspension of operations and pro. 3106.3-1 Approval.
3100.5-3 Period of option. duction. 3108.3-2 Separate zones.
3100.5-4 Acreage in cooperative or unit9106.3-3 Effective date.
plan. Subpart 3104-Bonds 3106.3-4 Transfer of offer.
3100.5-5 Option statements. 9104.0-5 Definitions. 3106.4 Royalty interest.
3100.6 Leases within unit areas. 3104.1 Types of bonds. 3108.5 Extensions.
3100.6-1 Joinder evidence required. 3104.1-1 Where filed and copies.
3100.6-2 Separate leases to issue. P
3100.7 Boundaries of known geologic 3104.1-2 When filed. Subpart 3107-Continuation,structurea. 3104.1-3 Form of bonds. PReeals Extension or
9100.7-1 Determination by Geological Sur-
3104.2-1 ComplOperaiance.
bond. Renewals
vey. 3104.2-1 Compliance. 3107.1 Single extensions.
3100.7-2 Notice of determination. 3104.2-2 Approval. 3107.1-1 Effect of withdrawal.
3100.7-3 Date determinative of rights. 3104.2-3 Default. 3107.1-2 Effect of lands.
3100.7-4 Request for determination. 3104.3 Individual sureties. 3107.1-3 Term oI extension.
3104.3-1 Protection. 3107.1-4 Segregative effect of application.
Subpart 3101—Lands Subject ta Leasing 3104.3-2 Net worth statement. 3107.1-5 Rejection,
3101.1 Public domain. 9104.3-3 Certificate required. 8107.1-8 Expiration by operation of law.
3101.1-1 Classes and terms. 3104.3-4 Requirements. 3107.2 Continuation by drilling.
9101.1-2 Lands in entries or claims not im- 3104.3-5 Terms. 9307.2-1 Terms defined.
pressed with a reservation of oil 3104.3-6 Forms. 9107.2-2 Diligent operations.
and gas, 3104.4 Personal bond or corporate bond. 3107.2-3 Period of extension.
9101.1-9 IInaurves. lands. 3104.4-I Amount. 3107.3 Continuation of lease on termins-
3101.I-4 Description of lands in offer. 3104.4-2 Deposit of securities. tion of production.
9101.1-5 Acreage limitation. 3104.4-3 Qualified sureties. 9107.3-1 Cessation of production.
3101.1-6 Effect of Multiple Mineral Develop- 3104.5 Nationwide bond. 3107.3-2 Nonprotluctlon from lease capable
ment Act of August 18,1954. 9104.5-1 Amount. of production.
3101.2 Acquired lands. 3104.6 Statewide bond. 8107.4 Extension for terms of cooperative
3101.2-1 Lands to which the Act does not 3104.6-1 Amount. or unit plan.
apply, 3104.6-2 Unit of coverage. 3107.4-1 20-year lease or any renewal
3101.2-2 Sale or conveyance of land. 3104.7 Default. thereof.
9101.2-3 Description of lands in offer. 3104.7-1 Payment by surety. 3107.4-2 Other leases committed to plan.
9101.2-4 Acreage limitation. 3104.7-2 Penalty. 9107.4-3 Segregation of leases committed in
9101.2-5 Present Interest. 3104.7-3 Relief. part.
9101.2-6 Future Interest. 3104.71 Applicability of provisions to exist- 31075 Extension by elimination.
9107.8 Extension of lea
3101.2-7 Exchange of leases. Ing bonds.
segregated by
3101.3 Withdrawn, reserved, and segre- 3104.8 Unit bond form. assignment.
3104.9 EX 8107.6-1 Extension after discovery on
gated l lands. Riders
bond,other segregated portions.
3101.3-1 Drainage. 3104.9-4 Riders to existing bond forme. 3107.6-2 Undevelo ed 3101.3-2 Requirements. 3104.9-5 Termination of period of liability. p parts of leases 1a
3101.8-3 Reserved and segregated lands, their extended term.
9101.4 Special leasing acts. Subpart 3105—Cooperative Conservation 3107.6-3 Undeveloped parts of producing
3101.4-1 Rights-of-way, Provisions leases.
3101.4-2 Nevada. 9105.0-7 Cross references. 9107.7 Exchange leases.
3101.4-9 Lands patented to the State of 3105.1 Cooperative or unit plans. 9107.8-1 enewra leases.
R
California. 3105.1-1 Where filed. 3107.8 equwmesseents..
9101.4-1 National Forest lands in Minnesota, 3105.1-2 Purpose. 9107.8-1 Requirem
3101.4-5 Lake Mead Recreation Area, 3105.1-3 Protection of public interest. 3107.8-3 Appro
3101.4-6 National Forest Wilderness. 3105.1-4 Acreage chargeability. 9107.8-4 Form Fo of 1.
3101.4-7 Whiskeytown-shuts-Trinity Na,' 3105.1-5 Requirements. 9107.9' Othe of lease.
.
' tonal Recreation Area, 3105.2 Communitfutlon or drilling agree- 3107.9' Payer types.
8< 3107.9-2 Payment of dercompensatory Multiple royalty.
3107.9-2 Proceedings
Miner-
Subpart 9102---Qualigwlions of Lessees 9105.2-1 Where filed. gs under 8102.1 General. 3105.2-2 Purpose. al Development Act of August 13,
3102.1-1 Who may hold interests. 9105.2-9 Requirements. 1954.
8102.1-2 Bona fide purchaser, 3105.3 Operating, drilling, or develop- Subpart 3108—Terminations and Expirations
3102.2 Individuals. ment contracts. 3108.1 Relinquishments.
3102.2-1 Statement of citizenship. 9105.3-1 Where filed,
3102.2-2 Preference right of patentee or en- 3105.3-2 Purpose. 3108.2 Operation of law.
tryman. 9105.3-9 Requirements. 3108.2-1 Nonpayment of rental.
3102.3 Association including partnership, 3105.4 Combinations for joint operations 3108.2-2 Expiration.
3102.3-1 Statements, or for transportation of oil, 8108.2-8 Noncompliance terms, with leasing act of
3102.4 Corporations. 3105.4-1 Where filed. lease terms.
3102.4-1 Statements. 3105.4-2 Purpose. 3108.3 Judicial proceedings.
,,,3102.5 Guardian or trustee. 3105.4-3 Requirements. Subpart 3109—Surface Management
3102.5-1 Statements. 3105.4-4 Rights-of-way. Requirements
3102.5-2 Evidence previously filed. 31055 Subsurface storage of oil and gas.
3102.6 Attorney-In-fact. 3105.5-1 Where filed. 9109.1 General.
3109.1-1 Surface,natural resources,and im-
3102.6-1 Statements. 9105.5-2 Purpose.
provements.
Sec. (4) National Forest Lands in Minne- limited to. record title interests, over-
3109.1-2 Antiquities and objects of hiatorl- rota. The act of June 30, 1950 (64 Stat. riding royalty interests, working inter-
cal value. 311; 16 U.S.C. 508(b)). ests, operating rights or options, or any
3109.2 Public domain. (5) Lake Mead Recreation Area. The agreements covering such "interests,"
3109.2-1 Bureau of Land Management act of October 8, 1964 (78 Stat. 1039; Any claim or any prospective or future
stipulations. 16 U.S.C. 460n). claim to advantage or benefit from a
3109.3 Acquired lands. an
3109.3-1 Consent of Agency. (6) National Forest Wilderness. Until lease, and any participation or any de-
31o9.4 Reserved,withdrawn,or segregates midnight, December 31, 1983, all laws fined or undefined share in any tnere-
lands, pertaining to mineral leasing and the menus, issues, or profits which may be
3109.4-1 Requirements. regulations of this chapter pertaining derived from or which may accrue in any
3109.4-2 Special stipulations. thereto effective during such period, manner from the lease based upon or
3109.5 Special Acts. shall, to the same extent as applicable pursuant to any agreement or under-
3109.5-1 Requirements. before September 3, 1964, extend to Na- standing existing at the time when the M.
3109.5-2 Special stipulations.. tional Forest Wilderness, subject to the offer is filed, is deemed to constitute an
Subpart 3100—Oil and Gas Leasing provisions of such regulations as may be "interest"in such lease.
prescribed by the Secretary of Agricul- (c) Regional oil and gas supervisor.
§3100.0-3 Authority. ture pursuant to section 4(d)(3) of the The Regional Oil and Gas Supervisor of
(a) domain.(1) The act of Feb- Wilderness Act. the Geological Survey for the region in
Public 1920 d m(41 Stat. The437; 30 U.S.C., (7) Whiskeytown-Shasta-Trinity Na- which lands under lease are situated.
ruary et 525, as Sct. and supple- tional Recreation Area. Section 6 of the (d) Rule of approximation. Where an
181 et seq.), as the amended amendatory act of act of November 8, 1965 (Public Law 89— application embraces an acreage in ex-
8, clud (60 Stat. en 30 U.S.C., 336; 79 Stat. 1295),authorizes the Score- cess of the acreage limitation,it may be
1 August , the act 950; U.S.C., tary of the Interior to permit the removal allowed for the excess acreage if exclu-
sec.ser 2, 1 et seq.)San ; 30 U.S.C., sec. of the nonleasable minerals from lands ston of the smallest legal subdivision in-
181er et, seq.). (or interest in lands) under his jurisdic- volved would result in a deficiency which
Prior to the filing of the tion within the Whiskeytown-Shasta- would be greater than the excess result-
(2)of Prior hereinafter referred notice Trinity National Recreation Area in the ing from the inclusion of such subdivi-
of act of n hereit ft 19 (60 Stat. manner prescribed by section 10 of the don.
th950: Act of August 4, 1939, as amended (53
30 U.S.C. 181) applies to leases
issued prior to the date of that act Stat.1196;43 U.S.C.387),and from those §3100.0-7 Cross-reference.
only where the amendatory act so under the jurisdiction of the Secretary 43 CFR 16.
provides. The owner of any lease i5_ of Agriculture within the recreation area
pr prior to August 8, f9an may elect in accordance with the provisions of sec- §3100.0-9 Limitation on time to insti-
sued po to Auguection 15 to , en electly tion 3 of the Act.of September 1,1949 (63 tute suit to contest a Secretary's de-
pursuant Stat. 683; 30 U.S.C. 192c); and he may cision.
under the provisions of that act by filing permit the removal of leasable minerals
a notice of election to have his lease No action contesting a decision of the
governed by the amendatory act, ac- from lands (or interest in lands) within Secretary involving any oil and gas lease
companied by the consent of the surety if the recreation area in accordance with shall be maintained unless such action is/
there is a bond covering the lease. A the Mineral Leasing Act of February 25. commenced or taken within 90 days after '
notice of election so filed shall consti- 1920,as amended (30 U.S.C. 181 et seq.), the final decision of the Secretary relat-
or the Acquired Lands Mineral Leasing ing to such matter.
Act of August 7,1947(30 U.S.C.351-359),
the lease to conform with the provisions he finds that such disposition would §3100.1 Helium.
if
of the amendatory act and the regula- not have significant adverse effects on §3100.1-1 Ownership his.
tions issued hereunder. the purpose of the Central Valley project andri g
(b) Acquired lands. The Mineral or the administration of the recreation The ownership of and the right to ex-
Leasing Act for Acquired Lands,enacted area tract helium from all gas produced from
on August 7, 1947 (61 Stat.913; 30 U.S.C. lands leased or otherwise disposed of un-
351-359). The authority conferred upon der the act have been reserved to the
the Secretary by the act, supersedes the §3100.0—S Definitions. United States. Appropriate provision is
authority conferred upon him by section (a) Known geologic structure. A made in leases with respect to the
402 of Reorganization Plan No. 3, effec- known geologic structure is technically recovery of helium. (See 43 crrt Part
Live July 16, 1946 (3 CFR 1946 Bunn., the trap in which an accumulation of oil 16.)
chapter IV) except as to leases or per- or gas has been discovered by drilling and §3100.2 Minerals subject to leasing.
wits outstanding on August 7, 1947. determined to be productive, the limits 3100.2-1 Oil and gas.
(c) Withdrawn, reserved and segre- of which include all acreage that is pre-
gated §
lands—(1) Protective leasing.Issu- sumptively productive. §3100.3 Drainage.
ance of protective leases authorized (b) Sole party in interest.A sole party §3100.3-1 Compensation for drainage.
under sec.441,Revised Statutes; 5 U.S.C. in interest in a lease or offer to lease is Upon a determination by the Director
485; see also Attorney General's Opinion a party who is and will be vested with all
lands
of April 2, 1941 (Vol. 40 Op. Atty. Gen. legal and equitable rights under the of the byG the egUni Survey that being
41). lease. No one is, or shall be deemed to owned or gas sd States are i being
(d) Special Acts—(1) Rights-of-way. be, a sole party in interest with respect drained jc lands,oil the authorized by wells drilled on W
The act of May 21, 1930 (46 Stat. 373; to a lease in which any other party has adacent f Mna officer of
y
any of the interests described in this sec- the Bureau of agreementsLan with Management,nt, may
30 U.S.C. 301-306), authorizes the Sec- execute the owners of
retary of the Interior to lease deposits tion.The requirement of disclosure in an adjacent lands whereby the United
of oil and gas in and under railroad and offer to lease of an offeror's or other par- States, or the United States and its
other rights-of-way acquired under any ties'interest in a lease,if issued,is predi- lessees, shall be compensated for such
law of the United States. The right of cated on the departmental policy that a_ji drainage, such agreements to be made
lease is restricted to the owner of the offerors and other parties having an in- with the consent of any lessee affected
right-of-way, or his assignees. terest in simultaneously filed offers to thereby. The precise nature of any
(2) Nevada. The act of May 9, 1942 lease shall have an equal opportunity for agreement will depend on the conditions
(56 Stat. 273) as amended by the act of success in the drawings to determine pri- and circumstances involved in the
October 25, 1949 (63 Stat. 886). oritles. Additionally, such disclosures particular case.
(3) Lands patented to State of Cali- Provide the means for maintaining ade-
fornia.The act of March 3,1933 on quate records of acreage holdings of all §3100.3-2 Drilling or payment of 47 corn-
1487) St as amended by the act of June 5, such parties where such interests consti- pensetory royalty.
1936 (49 Stat. 1482) and the act of tute chargeable acreage holdings.An"in- Where land in any lease is being
June 29, 1936 (49 Stat.2026). terest" in the lease includes, but is not drained of its oil or gas content by a
2
well either on a Federal lease issued at §3100.5-2 Chargeable acreage. the statement of his interest and oblige-
e lower rate of royalty or on land not (a) How charged. The acreage to tion with respect to any option shall not
the property of the United States, the which the option is applicable shaal1l be be required where such interests and
lessee must drill and produce all wells charged both to the optionor and to the obligations have been set forth in the
necessary to protect the leased lands optionee,but the charge to the optionor notice required under §3100.5-1(b) of
(--', from drainage. In lieu of drilling such shall cease when the option is exercised this section and there have been no
wells, the lessee may, with the consent If the option covers only a part of the changes in such interests and obligations
of the Director of the Geological Stir- optionor's interest in the acreage in- since such filing. Option statements
vey, pay compensatory royalty in the eluded in a lease, the acreage to which covering lands in the State of Call-
amount determined in accordance with the option is applicable shall be fully forma shall be filed in the land office at
30 CFR 221.21. charged to the optionor, and a share Sacramento, California. The failure of
§3100.3-3 Protective leasing. thereof shall also be charged to the the holder of an option to file such state-
optionee as his interest may appear. ment shall render the option unenforce-
Where jurisdiction over disposition of Upon the exercise of the option, the able by him, but this shall not diminish
mineral deposits in land set apart for acreage shall be charged to the parties the acreage deemed to be held under op-
other Government agencies has been Lion by the optionee in computing the
pro rata as their interests may appear.
transferred to the Department of the In- An unexercised option remains charged amount chargeable and shall not relieve
I. tenor because of drainage of its oil or any party thereto of any liability to can-
gas content, such land must be offered during its term until notice of its re-
linquishment or surrender has been flied cellatlon, forfeiture, forced disposition,
for lease by competitive bidding.Protec- in
the appropriate land office. or other sanction provided by law.If the
tive leases may cover public domain (b) When charged.Within the mean- statement shows or it is otherwise ascer-
lands which have been withdrawn from ing of this section, options may be taken tailed that the optionee holds options in
oil or gas leasing or acquired lands not only on lands embraced in leases and excess of the prescribed limitation, he
subject to leasing under the Acquired offers or applications for leases and the will be given 30 days within which to file
Lands Leasing Act. acreage included in any such option proof of reduction of his option holdings
§3100.4 Multiple development. taken upon an application or offer for to the limitations prescribed by the act.
The granting of a permit or lease for a lease shall be chargeable from and §3100.6 Leases within unit areas.
the prospecting, development, or pro- after the date of such option. §3100.6-1 Joinder evidence required.
duction of deposits of any one mineral §3100.5-3 Period of option. Before issuance of an oil and gas
will not preclude the issuance of other An option hereafter taken on aanpermits or leases for the same land forlease fort, he leaswithe
pl approved unit
or
deposits of other minerals with suitable leaseof application time or offer ey bethe for e agreement, the bidder der applicant or u re to
stipulations for simultaneous operation, and of years uheil hof release or successful thath will ntbe required to
nor the allowance of applicable entries, and 3 thereafter. Where it is file evidence he has entered into an
locations, or selections of leased lands excss of obtain options for periods in deveemmtwithd operation unct of t ef l nds
with a reservation of the mineral de- sefence, a application prapided iio the should prec be inde his lease and ndpursuant the to the
e
posits to the United States. ing swath th, an authorized f f be os and
provisionsnder and ed
filed with the officer of the terms and of the approved
§3100.5 Options. Bureau of Land Management, accom- unit agreement, or a statement giving
§3100.5-1 Enforceability. ponied by a complete showing as to the satisfactory reasons for the failure to
special or unusual circumstances which enter into such agreement. If such
(a) Ap
proval of Secretary required.No are believed to justify approval of the statement is acceptable, he will be per-
(----, option to acquire any interests in an oil application. matted to operate independently but will
and gas lease shall be enforceable if en- be required to conform to the terms and
tered into for a period of more than 3 §3100.5-4 Acreage in cooperative or provisions of the agreement with respect
years (inclusive of any renewal period, unit plan. to such operations.
if provided for in the option) without It shall be permissible for any § 3100.6-2 Separate leases to issue.
the prior approval of the Secretary. such option to provide that where all or
(b) Notice required. No option or re- any part of the land covered thereby is In case an application or offer for
newel thereof executed after September, included in a cooperative or unit plan a noncompetitive lease embracing lands
1960, shall be enforceable until notice (as defined in 1 3105.1) duly executed by partly within and partly without the ex-
thereof has been filed in the appropriate the parties and submitted to the Sucre- tenor boundaries of a unitized area is
land office. No such notice shall be re- tary for final approval prior to the ex- found acceptable, separate leases will be
quired for options or renewals executed piration of the three-year option period, issued, one embracing the lands within
prior to September 2, 1960. Each such then,as to that part of the land covered the unit area, and one the lands outside
notice shall include (1) the names and by said option which is included in said
of such area.
addresses of the parties thereto; (ii) the cooperative or unit plan, such option §3100.7 Boundaries of known geologic
serial number of the lease or application shall not expire until a date 30 days after structures.
for lease to which the option is applica- the date of final approval or disapproval
ble; (iii) a statement of the number of by the Secretary of that cooperative or §3100.7-1 Determination by Geological
acres covered thereby and of the inter- unit plan. Survey.
ests and obligations of the parties there- §3100.5-5 Option statements. The Director of the Geological
to; and (iv) the interest to be conveyedSurvey will determine the boundaries of
and retained on exercise of the option. Each holder of an option must the known geologic structures of pro-
Such notice shall be subscribed by all file in the appropriate land office within ducing oil or gas fields, and,where nec-
parties to the option or their duly author- 90 days after June 30 and December 31 essary to effectuate the purposes of the
Ized agents. The Ming of an executed of each year duplicate statements show- act, the productive limits of producing
copy of the option containing the above ing as of the prior June 30 and December oil or gas deposits as such limits existed
information shall satisfy the foregoing 31, respectively (1) his name and the on August 8,1946.
requirement. In addition, the notice of name and address of each grantor of an §3100.7-2 Notice of determination.
option must contain or be accompanied option held by him, the serial number
by a signed statement, by the holder of of every lease, application or offer for Determinations of "structures de-
the option, that he is the sole party in lease subject to option; (2) date and fined"will be followed,as soon as practi-
interest in the option; if not, he shall expiration date of each option; (3) num- cable, by the filing in the appropriate
set forth the names and nature and ex- ber of acres covered by each option; (4) land office of maps or diagrams showing
tent of the interest therein of the other aggregate number of options held in each the structure boundaries, and by pub-
interested parties, the nature of the State, and total acreage thereof: and lication in the FEDERAL REGISTER of
agreement between them if oral, and a (5) a statement of his interest and obl)- notices that the determinations have
copy of such agreement,if written. gation under each option; provided,that been made. Because determinations of
3
"structures undefined" are usually of a (5) Lands acquired under the act of (b) Unsurveyed lands. If the lands
more temporary nature, maps or dla- March 1, 1911 (36 Stat. 961; 16 U.S.C. have not been so surveyed, each offer
grams thereof will not be filed and 513-519) known as the Appalachian must describe the lands by metes and
notices thereof will not be published; Forest Reserve Act, or other acquired bounds, giving courses and distances bet
's\
a memorandum of each such lands, tween the successive angle points on the.
determination will be filed in the appro- (6) Lands within 1 mile of naval pe- boundary of the tract,in cardinal direc-
priate land office and will be available for troleum or helium reserves. No oil and public inspection. Additional informs- Lions except where the boundaries of the
gas lease will be issued for land within 1 lands are in irregular form, and con-
tion concerning the procedures used in mile of the exterior boundaries of a naval netted by courses and distances to an
making the determinations may be ob- petroleum or a helium reserve,unless the official corner of the public land surveys.
tamed from the Geological Survey, land is being drained of its oil or gas In Alaska the description of unsurveyed
Washington,D.C.20240. deposits or helium content by wells on lands must be connected by courses and
§3100.7-3 Date of determinative of privately owned land or unless it is deter- distances to either an official corner of
rights. mined by the authorized officer, after the public land surveys or to a triangu-
In accordance with long-standing consultation with the agency exercising latlon station established by any agency
rulings the Department, 1f pro- Jurisdiction over the reserve,that opera- of the United States (such as the U.S.
ruling of th of a sent, if the under- bons under such a lease will not ad- Geological Survey, the Coast and Ge-
ducing a character f Is stractucture
known versely affect the reserve through drain- odetic Survey, or the International
lyinage from known productive horizons. Boundary Commission), if the record
prior to the date of the Department's
official pronouncement on that subject, §3101.1-2 Lands in entries or claims position thereof is available to the gen-
it Is the date of the ascertainment of the not impressed with reservation of oil eral public.
fact,and not the date of the pronounce- and gas. (c) Unsurveyed public lands adjacent
went, that is determinative of rights (a) Where an offer is filed to lease to tidal waters in southern Louisiana and
which depend upon whether the land is lands noncompetitively in an entry or in Alaska. In lease offers embracing un-
or is not situated within a known geo- settlement claim not impressed with an surveyed public lands adjacent to tidal
logic structure of a producing oil or gas oil or gas reservation, the offer will be waters in southern Louisiana and in
field. Ernest A. Hanson, A-26375 (May rejected unless it is found that the land Alaska,if the offeror finds it impractica-
29, 1952), and cases cited therein. All is prospectively valuable for oil or gas, ble to furnish a metes and bounds de-
determinations are subject to change at An offeror for a lease for land already scription, as required in paragraph (b)
any time upon receipt of further infor- embraced in a nonmineral entry without of this section with respect to the water
matron through the drilling of wells and a reservation of the mineral, and like- boundary, he may, at his option, extend
other sources. Accordingly, lessees or wise a nonmineral entryman or settler the boundary of his offer into the water
applicants for leases should not rely upon who is contending that the land is non- a distance sufficient to permit complete
the maps, diagrams, determinations or mineral in character should submit with enclosure of the water boundary of his
notices thereof, as currently controlling their respective offer and application, offer by a series of courses and distances
documents. showings of as complete and accurate in cardinal directions(the object being to
§3100.7-4 Request for determination. geologic data as may be procurable,pref- eliminate the necessity of describing the
erably the reports and opinions of quail- meanders of the water boundary of the
Any lessee or his operator may ap- fled experts. public lands included in the offer). The
ply to the Director of the Geological (b) Should the land be found to be description in the lease offer shall in ar'-'`1
Survey for a determination whether the prospectively valuable for oil or gas, the other respects conform to the requirt
land in his lease is inside or outside the entryman or settler will be notified ments of paragraph (a) of this section.
productive limits of a producing oil or thereof and allowed a reasonable time to Such description would not be deemed
gas deposit as such limits existed on Au- apply for reclassification of the land as for any purpose to describe the true
gust 8,1946. nonmineral,submitting a showing there- water boundaries of the lease, such
Subpart 3101—Lands Subject to with, and to apply for a hearing in the boundaries in all cases being the ordi-
event that reclassification is denied, or nary high water mark of the navigable
Leasing
to appeal. If he does neither, or he is waters. The land boundaries of such
§3101.1 Public Domain. unsuccessful, the entry or settlement overall area shall include only the§3101.1-1 Classes and terms. pub-
rights and any patent issued pursuant lic lands embraced in the offer. The
thereto will be impressed with a reserve- offeror shall agree to pay rental on the
All lands subject to disposition tion of oil and gas to the United States. full acreage included within the descrip-
under the act which are known or be- In such circumstances a lease will be Von with the understanding that rights
lieved to contain oil or gas may be leased granted to the offeror, all else being under any lease to be issued on that offer
by the Secretary of the Interior. When regular. unless the entryman or settler will apply only to the areas within that
land is within the known geologic strut- has a preference right. description properly subject to lease
ture of a producing oil or gas field prior §3101.1-3 Unsurveyed tends. under the act, but that the total area
to the actual issuance of a lease, it may described will be considered as the lease
be leased only by competitive bidding and (a) Showing required. Every offeror acreage for purposes of rental payments,
in units of not more than 640 acres to the for oil and gas lease for unsurveyed acreage limitations under ¢3101.1-5 and
highest responsible qualified bidder at a lands, must state in his offer that there the maximum or minimum area to be
royalty of not less than 121/2 percent. are no settlers upon the land,or if there included in a lease pursuant to ¢3111.1
Leases for not to exceed 2,560 acres, be settlers, give the name and post office The tract should be shown in out-
except where the rule of approximation address of each and a description of the line on a current quadrangle sheet pub- '
applies, entirely within an area of six lands claimed,by metes and bounds and lished by the U.S. Geological Survey or
miles square or within an area not ex- approximate legal subdivisions. such other map as will adequately iden-
reeding six surveyed sections in length (b) Survey for leasing (competitive). tify the lands described.
or width measured in cardinal direc- The survey of unsurveyed lands for a (d) Protracted surveys.(1) When pro-
competitive lease for oil and gas will be tracted surveys have been approved and
lions, may be issued for all other land made at the expense of the Government the effective date thereof published in
subject to the act to the first qualified prior to the issuance of a lease of the the FEDERAL REGISTER, all offers to lease
offeror at a royalty of 121/2 percent. lands. lands shown on such protracted surveys,
(a) Exceptions: (1) National parks filed on or after such effective date,must,
3101.1-4 Description monuments. § of lands in offer. except as provided below, include only
(2) Indian reservations. (a) Surveyed lands. If the lands have entire sections described according to the
(3) Incorporated cities, towns, and been surveyed under the public land rec- section, township, and range shown our)
villages. tangular system,each offer must describe the approved protracted surveys.
(4) Naval petroleum and oil shale the lands by legal subdivision, section, (2) An offer may include less than an
reserves, township,and range. entire protracted section where only a
4
portion of such a section Is available for file proof of such reduction In the proper (5) The provisions of this paragraph
lease. In such case the offer must de- land office. shall not limit any action which the De-
r_, scribe all the available lands by sub- (2) If any person holding or control- partment may take with respect to ex-
divisional parts in the same manner as ling only leases or interests In leases or cess acreage holdings in cases not other-
provided in paragraph (a) of this section options or interests in options is found wise covered by this paragraph.
for officially surveyed lands. If this is to hold accountable acreage in violation (6) An association shall not be deemed
not feasible, as e.g., in the case of an of the provisions of this section and of to exist between the parties to a contract
irregular section,the offer must describe the act,the last lease or leases or interest for development of leased lands,whether
the entire section and contain a state- or interests acquired by him which with or not coupled with an interest in the
ment that it shall be deemed to include the options or interests in options lease, nor between co-lessees, but each
all of the land in the described section created the excess acreage holdings shall party to any such contract or each co-les-
-which is available for lease. be canceled or forfeited in their en- see will be charged with his proportionate
(e) Conforming land descriptions, tirely, even though only part of the interest in the lease. No holding of
The descriptions in leases issued acreage in the lease or interest consti- acreage in common by the same persons
pursuant to offers filed the tutes excess holdings, unless it can be in excess of the maximum acreage speci-
r a t ffers f will after conformedheffective to shown to the satisfaction of the Director fled in the law for any one lessee or per-
date ht subdivisions thissection se f the apoord pro- of the Bureau of Land Management that mittee for the particular mineral deposit
the holding or control of the excess acre- so held will be permitted.
tracted surveys if and when such surveys age is not the result of negligence or will- (d) Computation. In computing acre-
have been adopted for the area; and the ful intent in which event the lease or age holdings or control, the accountable
description and acreage of leases issued leases shall be canceled only to the ex- acreage of a party owning an undivided
pursuant to offers filed after May 22, tent of the excess acreage. interest in a lease shall be such 1959,will be adjusted to the official public (3) Any person holding or controlling proportionate part of the total lease acre-
land surveys when such surveys have leases or interests in leases only, or ap- age.Likewise,the accountable acreage of
been extended over the leased area. plications or offers for leases only, or a party owning an interest in a corpora-
both$3101.1-5 Acreage limitations. leases or interest in leases and ap- tion or association shall be his propor-
(a) No person, pllcations or offers or options or inter- tionate part of the corporation's or asso-
(a) Maximum corporation holdings. shall take ests in options below the acreage limita- ciation's accountable acreage, except
hold,own,association, or rl one time oil and tion provided in this section, shall be that no person shall be charged with his
subject to these rules:
gas leases (including options for such (D If he flies an application or offer of any associati of any on or corporatioholdings
unless
leases or interests therein) whether di- or option or interest in option which he is the beneficial owner of more than
rectly through ownership of leases or causes him to exceed the acreage limita-
interests in leases and applications, or tion, that application or offer will be ten perme is of w theers stock or other in-
interests
offers therefor or indirectly as a member rejected. struments of ownership or control of
of an association or associations or ass (i1) For tracts not subject to the such association or corporation. An
tions, fla corporation or rpoora-ra- simultaneous filing procedures of sub- eelatii n on Seon held ptember 2,corporation960, shall not.
holding part 3112,If he files a group of applica- fora charged and applications or offers therefor for tions or options or offers or interests in any stockholder of the corporation or
• more than 246,080 acres in any one options at the same time, any one of member of the association so long as it
TM State, of which no more than 200,000 which causes him to exceed the acreage is so held. Parties owning a royalty or
acres may be held under option. limitations the entire group applications, other interest determined o
y or of yable
(1) Excaska ption. acreage(I)
In the
heti State te offers, options, or interests in options out of a percentage of productions from
will be rejected. a lease will be charged with a similar
300,000 acres in the northern leasing dis- au) If he files an offer for inclusion percentage of the total lease acreage.
trict and 300,000 acres in the southern in the drawing procedures under sub- (e) Showing required.No lease will be
leasing district, of which no more than part 3112, he shall be charged with the issued and no transfer or operating 200,000 acres may be held under option acreage thereof only if his offer is suc- agreement will be approved until ithas
in each of the two leasing districts. cessfully drawn so that his offer has first been shown that the offeror, transferee,
(U) The boundary between the two priority. If that offer causes him to ex- or operator is entitled to hold the acre-
leasing districts in the State of Alaska ceed the acreage limitation,the offer will age or obtain the operating rights. At
is the from th leftlimit of boundary between Tanana
ver be rejected.If he files at,the same time a any time upon request by the authorized
and to thentheUnited of group of offers for tract subject to the officer of the Bureau of Land Man-
Statesthe Canada d and the confluence n River and drawing procedures under subpart 3112, agement, the record title holder of
the Tanana f limit iv the Yukon River from any offer which is successfully drawn af- any lease or a lease operator or a lease
said confluence to itster he reaches the acreage liri�itation offeror or the holder of any lease option
principal south- shall be rejected. may be required ern mouth. (iv) An obtionee is chargeable only for land office a statement showing as file in the appropriate
a
(b) Excepted acreage.Leases or offers that acreage for which the optionor Is specified date the serial number and the
or applications for leases committed to chargeable. date of each lease of which he is the
any unit or cooperative plan approved or (4) If any person holding or control- record holder, or under which he holds
prescribed by the Secretary of the Inte- ling both leases or interests in leases and operating rights, or for which he holds
rior shall not be included in computing applications or offers for leases, or op— an option, and each application or offer
acapplicatioe ns foracreage. subjectesor
riooffers
op- dons or interests in options or only for lease held or filed by him in the par-
applina,drilling leases e o an opp. applications or offers for leases below titular State setting forth the acreage
developmentthe acreage limitation provided in this covered thereby, and the nature, extent
roed by
the
hSecretary
ert of the act,Interior oti section, acquires a lease or leases, or an and acreage interest, including royalty
communization pursuant tosection 17(j)a of the ac, shall option or options or interests therein; interests held by him in any oil and gas
be than excepted in determining gr me ts, Shall
which cause him to exceed the acreage lease of which the reporting party is not
acreage of the lessees or h operators. limitation, his most recently filed ap- the lessee of record, whether by corpo-
able p plication or offer for lease or applies- rate stock ownership,(c) Excess acreage. (1) Where, as the tions or offers for lease then containing io interest in union
partner-
result of the termination or contraction corp orated or in associations and of a unit or cooperative plan, or the acreage in excess of the limitation rejected
pro- ships, or any other manner.
elimination of a lease from operatin aided in this section will be rejected in
9• its or their entirety. For the purpose 8 3101.1-6 Effect of Multiple Mineral
drilling, or development plan, a party of this subparagraph,time of filing shall Development Act of August 13,1954.
r holds or controls excess accountable be determined by the time of filing If any oil and gas lease issued under
acreage, such party shall have 90 days marked on the application or offer or, Section 17 of the Mineral Leasing Act,
from such termination or contraction or if the same time is marked on two or as amended (30 U.S.C.sec.226),includes
elimination in which to reduce his hold- more applications or offers, by the serial an area with respect to which a verified
ings to the prescribed limitation and to number of the applications or offers. statement is filed by a mining claimant
5
under section 7(c) of the Multiple Mm- acquired title to the land.In addition,if §3101.2-7 Exchange of leases.
eral Development Act of 1954 (68 Stat.Min-
the description Sn the deed or other doe- Oil and gas leases, outstanding on
708), as amended, asserting the exist- ument by which the United States ac- August 7, 1947, and which cover lands
ence of a conflicting unpatented mining guired title to the lands does not include subject to the act,may be exchanged for �1
claim or claims upon which diligent the courses and distances between the new leases to be issued under the act. 1
work is being prosecuted the payment successive angle points on the boundary New leases shall be issued for a term of
of rentals and the running of time under of the desired tract, the description in 5 years and so long thereafter as oil or
such lease shall be suspended as to the the offer must be expanded to include gas is produced in paying quantities,and
lands u m conflict from the first day of such courses and distances. shall be dated to be effective es of the
the following o the filing of such (2) Each offer or application must be first of the month after the filing of the
the month o statement until a final decision u accompanied by a map upon which the application to exchange. The rental
desired lands are clearly marked show- rates for the new lease, for lands not
is rendered in the matter. ing their location with respect to the within the known geologic structure of
§3101.2 Acquired lands. administrative unit or project of which a producing oil or gas field at the time
3101.2-1 Lands to which the Act does they are a part (such map need not be of the filing of the application for ex-
$ submitted where the desired lands have change, shall be the same as those set
not apply. been surveyed under the rectangular forth in 13103.3-2, and the royalty rate
(a) Acquired for the development of system of public land surveys, and the for such lands shall be 12'/2 percent.For
their mineral deposits, land description can be conformed to all other lands, the rental rate for the
(b) Acquired by foreclosure or other- that system). new lease shall be $1 per acre per _.
wise for resale, (3) If an acquisition tract number annum, and the royalty requirements
(c) Reported as surplus under the has been assigned by the acquiring shall be the same as those stipulated 1n
Surplus Property Act of October 3, 1944 agency to the identical tract desired, a the lease offered in exchange.
(58 Stat. 765: 50 U.S.C. 1611, et seq.), description by such tract number will be $3101.3 Withdrawn, reserved, and seg.
(d) In incorporated cities, towns, and accepted. Such offer or application must regaled lands.
villages, be accompanied by the map required by 3101.3-1 Drains e.
(e) In national parks and monuments, subparagraph (2) of this paragraph. § g
(f) Set apart for military or naval (c) Accreted lands. Where an offer or In instances where it is determined by
purposes, including lands within naval application includes any accreted lands the Geological Survey that any of the
petroleum and oil shale reserves,or that are not described in the deed to the lands mentioned in 13101.3-3 of this sec-
(g) Which are tide lands, submerged United States, such accreted lands must tion and defined in this section as not
coastal lands, within the continental be described by metes and bounds,giving available for leasing are subject to drain-
shelf adjacent or littoral to any part of courses and distances between the suc- age, the Bureau of Land Management.
land within the jurisdiction of the United cessive angle points on the boundary of with the concurrence of the U.S. Fish
States. the tract, and connected by courses and and Wildlife Service, will process an
distances to an angle point on the Perim- offering inviting competitive bids in ac-
§3101.2-2 Sale or conveyance of lands. eter of the acquired tract to which the cordance with the then existing regale.-
Any sale or conveyance of lands subject accretions appertain. tions relating to competitive oil and gas
to the act by the agency having jurisdic- §3101.2-4 Acreage limitation. leasing. Such leases shall be issued only
ton thereof,shall be subject to any lease The amount of acquired lands acreage upon approval by the Secretary of the
or permit theretofore issued under the that may be held under lease or permit Interior and shall contain such stlpula- "a's
act. either directly or indirectly, individually tons as are necessary to assure that
§3101.2-3 Description of lands in offer, or as a member of an association or a leasing activities and drilling shall be
(a) Surveyed lands. If the land has corporation may not be in excess of the carried out in such a manner as will re-
been surveyed under the rectangular amount of public domain acreage for the snit In a minimum of damage to wildlife
system of public land surveys, and the same minerals permitted to be held under reeeureet
description can be conformed to that the mineral leasing laws. Public domain
system, the land must be described by lease holdings shall not be charged $3101.3-2 Requirements.
legal subdivision, section, township, and against acquired lands lease holdings; (a) Publication and filing of agree-
range. Where the description cannot be such respective holdings shall not be ments. The agreements referred to in
conformed to the public land surveys, interchargeable. Where the United 13101.3-3 of this section shall be pub-
any boundaries which do not so conform States owns only a fractional interest in lished in the FEDERAL REGISTER and shall
must be described by metes and bounds, the mineral resources of the lands In- contain a description of the lands al-
giving courses and distances between the volved, only that part of the total acre- fected thereby which are not subject to
successive angle points with appropriate age involved in the lease which is pro- oil and gas leasing,together with a state-
ties to the nearest existing official survey portionate to the ownership by the ment of the stipulations agreed upon by
corner. If not so surveyed and if within United States of the mineral resources the parties thereto for inclusion in such
the area of the public land surveys, the therein shall be charged es acreage hold- leases to assure that all operations under
land must be described by metes and ings. The acreage embraced in a fu- the lease shall be carried out in such a
bounds, giving courses and distances be- hire interest lease 1s not to be charged manner as will result in a minimum of
tween the successive angle points on the as acreage holdings until the lease for damage to wildlife resources. The agree-
boundary of the tract, and connected the future Interest takes effect. ments,as supplemented by maps or plats
with a reasonably nearby corner of those §3101.2-5 Present interest. specifically delineating the lands will be
surveys by courses and distances. (a) Full and fractional. Ordinarily, filed in the appropriate land offices of the s
(b)(1) Lands not surveyed under the the issuance of a lease to one who,upon Bureau of Land Management where they
rectangular survey system. If the lands such issuance, would own less than 50 may be inspected by the public at the
have not been surveyed under the rec- percent of the operating rights in any usual hours specified for that purpose.
tangular system of public land surveys, such tract,will not be regarded as In the (b) Filing of lease offers. Lease offers
and the tract is not within the area of the public interest, and an offer leading to for such lands will not be accepted for
public land surveys,it must be described such results will be rejected. filing until the 10th day after the agree-
as in the deed or other document by 3101.2-6 Future interest.
ments and supplemental maps or plats
which the United States acquired title § are noted on the land office records.
to the lands or minerals. If the desired (a) Full or fractional. A noncompeti- (c) Suspension of pending applies-
land constitutes less than the entire tract tive lease for a whole or fractional future tions. (1) All pending offers or applica-
acquired by the United States, it must interest will be issued only to an offeror tions heretofore filed for oil and gas
be described by courses and distances be- who owns all or substantially all of the leases covering game ranges, coordina-
tween successive angle points on its present operating rights to the minerals tion lands,and Alaska wildlife areas,will
boundary tying by course and distance in the lands in the offer as mineral fee continue to be suspended until the agree-
into the description in the deed or other owner, as lessee or as operator holding ments referred to in f 3101.3-3(b)(1) of
document by which the United States such rights. this section shall have been completed.
6
(2) Proposed withdrawals. All exist- aallllet a premiseson at aanan otieme to inspect both the operating program as operating ezpe-
ing Offers or applications for oil and gas of the lessee; operational activities rience proves necessary in order to give corn-
leases covering lands included in (d) Take such steps es may be necessary o plate protection to wildlife populations and
pr request for withdrawals for wildlife prevent damage to wildlife: wildlife habitat on the areas leased.
refuges, game ranges, coordination (e) Do all In his power to prevent and (a) Construct roads.Broad not:pipelines, utility
lands or Alaska wildlife areas,as defined suppress forest, brush, or grass fires and to lines,and attendant facilities that are either
herein,shall be suspended until after the require his employees, contractors, sub- unnecessary or which might interfere with
contractors and employees of contractors or wildlife habitat or resources or with drain-
consummation of the withdrawal, and
thereafter such offers shall be considered subcontractors to do likewise;
provisions of this (f) Install adequate blow-out age;
in accordance with the
q prevention (b) Modify or change the character of
section. equipment: streams, lakes, ponds, water holes, seeps,
(d) Special stipulations.For inclusion (g) Construct ring dikes and sump pits toconfine and marshes, except obyn advance approval in
In oil and gag leases entered into pur- and drilling mud and other pollutants writing by the authorized officer, nor shall
sllant to this section relating to oil and and make safe disposition oI salt water by he In any way pollute such streams, lakes,
B use of injection wells or such other method ponds,water holes,seeps,or marshes;
gas leases In wildlife refuge,game range, as may be approved in the plan of operation; at
and coordination lands. (h) Cover Rare pits in areas of wildlife l Conduct operations
co sen ttions e•
faatructiona. (1) The following stlpuls- concentration; willl interfere with wildlife concentt rations;
(d) Conduct geological or ks, dikes,tons will meat easuipment,
es made
a part of These stipulations Depart-
and ere-
(i)st
ructures snot c required in producing Pour,ce and h that
hio pest one hallysbve Icon-operations 80
be made applicable as terms and conditions than of drill n¢thia days after the comply- d
ter underonly in accordance with advance
of performance by lsee under all oil and approval in writing by the authorized officer
gas leases entered Into under authority vested (J) Comply with and see to it that his as to the time, manner of travel and Ms-
in the eeoretery of the Interior over game agents and employees comply with all kited- turbances of surfaces and the facilities re-
rsage, Secret atloa or Alaelte Wildlife tends eras State, or Territorial laws relating to quired for the protection of wildlife;
pursuant to the order of the Secretary of the hunting, fishing, and trappng; (e) Use explosives in fish spawning or
interior published in 23 P.R.327,January 11, (k) Commit the lease to any unit plan rearing areas, nesting areas, lambing
lash, required n the interest of conservation of
(2) Should compliance with one or nos oil or gas resources or for the protection of grounds,
other areas Intenseof wild ac ivity or at
wildlife; during periods of manner activity or at
of these terms and conditions be considered (I) Prior to the conduct of geological,geo- any other time or In any that might
unduly burdensome and unnecessary to the physical, or core drilling operations or con- damage any depth wildlife f seismographicresources; the tstsernl
protection of wildlife resources, the lease* etruction of any facilities,or prior to opera- nixes submitted of e uthori shots shall
dressed to officer for
may ethe Secretart waiver thereof
of the by letter
Interior set- done to drill or produce,submit in triplicate be
approval in writingand immediately
tins forth,n full, the reasons why a waiver for approval In writing by the authorized following the detonation of any seismo-
is a forth,
in
ell, the . The authoritywer officer a plan of operation that will include graphic charge, the hole shall be filled or
grant such waivers shall be and detailed statements indicating the manner plugged and any surface damage repaired to
discretionary be only in which the lessee will comply with these the satisfaction of the authorized officer;
the y Qerer iced Secretary of by the
erlor�y or the lessee agrees together with a statement that (f) Without advance approval in writing,
(3) de authorized officer shall r, a agrees that compliance with these use any water or water source controlled or
noplan of operation that contains stipulations and with the approved plan of developed by the United States;
prove Poperations are conditions of performance con-
provisionsun-
inconsistent with the stipulations der this lease and that failure to comply with (o Use mobile permanently t under such
hereinafter set forth; (b) waive no term or these provisions (unless they are waived by resour as to adamage erosion,olan-
�� condition in a lease; or (c) exercise no ms- the Secretary or the Under Secretary of the terfere e with i cause fco and ion; or in-
cretion vested in him unless he la satisfied Interior) will be grounds for cancellation of bConduct
ct wildlife conce or ntration;
o geophysical,
she exercise
offthat
II odisce discretion will not dam- the
lease by other he United States. Notwith- core)drill drilling operationsCeor construct s roads,
Drilling and production operations standingprovisions in these stipule-
tions,the lessee shall Include in any plan of bunkhouses or any until tth or drill or pro-
(4)under the lease shall be under the direction operation specific provisions relating to: The duce under a lease the submittal and
of the Geological Survey. time, place, depth and strength of seismo- approval in writing of a plan of operation
Tehexer s and conditions. (1) as used graphic shots, maps showing the location of Pursuant to section (2)(m) sup
raor deviate
his leases included in the plan, actual and therefrom until any revisions or amendments
(a) The term "lessee*includes the lessee, proposed access roads, bunkhouses,proposed of said plan have been approved in writing
heirs and assigns of the lessee and persons well locations, storage and utility facilities, by the authorized officer;
operating on behalf of the lessee; water storage, pipelines and pumping eta-
fism-
(b) The term "wildlife resources" in- tie employed;efilf methods equipment that will mable materials or use ears plosiveshla aer aman-
eludes fish and wildlife resources and con- ods o be used o as- ner or at a time that would constitute a fire
centrations, fish and wildlife management sure the disposition of drilling mud, pol- hazard.
operations and range improvements and lutanta, and other debris; the location of
facilities; facilities in relation to flood levels; and such §3101.3-3 Reserved and segregated
(c) The term "authorized officer" means other specific matters as the authorized ore- lands.
the State Director of the Bureau of Land cer may require. The plan of operation shall
Management in the State in which the land be kept current in all respects and all real- (a) Wildlife refuge lands. Such lands
Is located, and, in Alaska, the Refuge lions and amendments submitted to the are those embraced in a withdrawal of
Manager of the Bureau of Sport Fisheries authorized officer for written approval; public domain and acquired lands of the
and Wildlife; (m) Do all things reasonably necessary United States for the protection of all
(2) The lessee shall: to prevent or reduce to the fullest extent species of wildlife within a particular
(a) Comply with all the rules and regu- scarring and erosion of the land,pollution of area.Sole and complete jurisdiction over
lotions of the Secretary of the Interior; the water resources and any damage to the such lands for wildlife conservation pur-
(b) Prior to the beginning of operations, watershed. Where construction, operation, an
tild-
erpoint and m of the lease le a in at local algen times during
whom the or maintenance of any of the facilities on or poses ie Service even though such lands may
may be served written orders or notices connected with this lease causes damage o be subject to prior rights for other public
respecting matters contained in these stipu- the watershed or pollution of the water purposes or, by the terms of the with-
, lotions and to inform the authorizedofficer resource, the lessee agrees to repair such drawal order, may be subject to mineral
in writing of the name and address of such damage, including reseeding and to take leasing.
ageagent, If
a substitute mmde agent
nt iisrm appointed, such corrective measures to prevent further (1) Leasing. No offers for oil and gas
representative; y Pollution or damage to the watershed as leases covering wildlife refuge lands will
are deemed necessary by the authorized
(c) Conduct all authorized activities in a officer; be accepted and no leases covering such
manner satisfactory to the authorized()nicer (n) Pile the bond required by section 2a lands will be issued except as provided in
with due regard for good land management (4) of the lease before conducting any opera- §3101.3-1. There shall be no drilling or
and avoid damage to Improvements, timber, 'none on the leasehold,and file any additional prospecting under any lease heretofore
crops, and wildlife cover, and fill all sump bond required by the authorized officer to or hereafter issued an lands within a
�, holes,ditches,and other excavations or cover pay for damages to wildlife habitat,includ- wildlife refuge except with the consent
all
is the surface
so a feaa of threasonably
ease abldy possibl lands e, long trees and shrubs, or wildlife improve-
restore ts; and approval of the Secretary of the
their former condition and when required to (o) Agree to respect and comply with any Interior with the concurrence of the Fish
bury all pipelines below plow depth. The new requirements imposed by the Secretary and Wildlife Service as to the time,place
authorised officer shall have the right to enter of the Interior, or the authorized officer, on and nature of such operations in order
to give complete protection to wildlife (a) Acreage limitations. No statutory Director of the Bureau of Outdoor
populations and wildlife habitat on the or regulatory limitations. Recreation, Department of the Interior,
areas leased, and all such operations Washington,D.C.20240. ��
shall be conducted in accordance with §3101.4-2 Nevada. (a) Acreage limitations. See 41 3101.-
the stipulations of the Bureau of Land All of Township 15 South, Ranges 66, 67, 1-5 and 3101.2-4.
Management on a form approved by the 68.East,M.D.Si. Subpart 3102—Qualifications of
68,East,M.D.M. Lessees
Director. All of Township 16 South, Ranges 66, 67,
(b) Game range lands and Alaska All of Township 17 South. Ranges 88, 67, §3102.1 General.
wildlife areas. Game ranges created by 66,East,M.D.M.
a withdrawal of public lands and re- and also a tract described as follows: A statement over the offeror's signs-
served for dual purposes,namely,protect ture setting forth whether the offeror's
tion and improvement of the public That area of unsurveyed land east of Tim- direct and indirect interests in oil and
grazing lands and natural forage re- her Mountain bounded on the north by rail- gas leases,applications,and offers there-
sources and conservation and develop- tads 37.10'20", on the south by latitude for and options exceed 246,080 acres 1n
ment of natural wildlife resources, are 37°7'46"' and lying between meridians of the same State of which no more than.
under the joint jurisdiction of the Bu- longitude 116'20'16" and 116°23'28" emu_
reau of Land Management and the prising an area of 9 square miles and includ- 200,000 acres are under option,or exceed
Mg what Is known as Fortymile Canyon 300,000 acres in each of the northern
V.S. Fish and Wildlife Service. Alaska pueblo. and southern leasing districts of wildlife areas are areas in Alaska created (a) Acreage limitations. See §3101.1- Alaska, of which no more than 200,000 -
by a withdrawal of public lands for the acres are held under option in each of
management of natural wildlife resources 5• said leasing districts is required.
and administered by the U.S. Fish and §3101.4-3 Lands patented to die State §3102.1-1 Who may hold interests.
Wildlife Service. of California.
(1) Leasing. As to game range lands The regulations in this subpart apply Mineral leases may be issued only to
and Alaska wildlife areas, represents- to the lands patented to the State of (a) citizens of the United States; (b) as-
tives of the appropriate office of the Bu- California for park purposes. sociations of such citizens organized un-
reau of Land Management and the U.S. (a) Acreage limitations. See 4 3101.1- der the laws of the United States or of
Fish and Wildlife Service will confer 5. any State thereof, which are authorized
for the purpose of entering into an to hold such interests by the statute un-
agreement specifying those lands which §3101.4-4 National Forest lands in der which organized and by the instru-
shall not be subject to oil and gas leasing. Minnesota. ment establishing the association; (c)
No such agreement shall become effec- Public domain lands, including lands corporations organized under the laws of
tive,however,until approved by the Sec- received in exchange for public domain the United States or of any State thereof;
retary of the Interior. Lands not closed lands, or for timber on such lands pur- or (d) municipalities. As used in this
to oil and gas leasing will be subject to suant to Part 2240 of this chapter, gsroup, "association" includes "partner-
leasing on the imposition of such stipu- situated within the exterior boundaries
ip."
lations agreed upon by the U.S.Fish and of the national forests in Minnesota, (a) Aliens. Aliens may not acquire or
Wildlife Service and the Bureau of Land which because of withdrawal, reserve- hold any direct or indirect interest in
Management. tion, statutory limitation, or otherwise, leases,except that they may own or con-
(c) Coordination lands. These lands are not subject to the general mining trol stock in corporations holding leases
are withdrawn or acquired by the Gov- laws of the United States or to mineral if the laws of their country do not deny
ernment and made available to the leasing laws, and for the development similar or like privileges to citizens of
States by cooperative agreements en- and utilization of which no other au- the United States. If any appreciable
tered into between the U.S. Fish thority exists. percentage of the stock of a corporation
and Wildlife Service and the game (a) Acreage limitations.See 4 3101.1-5. is held by aliens who are citizens of a
commissions of the various States, in §3101.4-5 Lake Mead Recreation Area. country denying similar or like privileges
accordance with the act of March 10,1 The area subject to the regulations in to U.S. citizens, its application will be
act ct4 August Stst. 401), ( 0s Stat. 1080),d by orr this part is that area of land and water denied.
of 14, 1946 <60 e- which is shown on a certain map identi- (b) Minors. A mineral lease will not
by long-term leases or agreements are fled as "boundary map, RA-LM-7060-B, be issued to a minor, but oil and gas
ndtweenthethe gameDepartmentmcommissions
of Agriculture revised July 17, 1963," which is on file leases may be issued to legal guardians
States pursuant nt to the oBa kf the various and which is available for public in- oe trustees of minors in their•behalf.
arm to BS 25 as spection in the office of the Director of §3102.1-2 Bona fide purchasers.
Farm wh Act such(50 Stat. 525), as the National Park Service and in the
seamended, where lands were sub- headquarters office of the superintendent (a) Provisions of statute. The Act of
of the Interior,n transferred wth to the the S.D Fish andent of the Lake Mead National Recreation September 21, 1959 (73 Stat. 571), as
of the with Fish and Area. The area subject to these regale- amended by the Act of September 2,1960
wildlife service as the custodial agency tions may be revised by the Secretary as (74 Stat. 781; Public Law 86-705), pro-
of the Government. authorized in the act. vides that the right to cancel or forfeit
(re Leasing. As to coordination lands, (a) Acreage limitations.See 4 9101.1-5. for violation of any of the provisions of
representatives of the Bureau of Land this Act shall not apply so as to affect
Management and the U.S. Fish and §3101.4-6 National Forest Wilderness, adversely the title or interest of a bona
Wildlife Service will,in cooperation with As used in this subpart the term"Na- Ade purchaser of any lease, option to
the authorized members of the various tional Forest Wilderness"means an area acquire a lease or an interest therein,or
State game commissions, confer for the or part of an area of National Forest permit which lease, interest, option or
purpose of determining by agreement land designated by the Wilderness Act permit was acquired and is held by a
those lands which shall not be subject to as a wilderness area within the National qualified person, association,or corpora-
oil and gas leasing. Lands not closed to Wilderness Preservation System. tion in conformity with those provisions,
oil and gas leasing will be subject to (a) Acreage limitations. See 4 3101.1- even though the holdings of the person,
leasing on the imposition of such stip 5 association, or corporation from which
ulations agreed upon by the State Game the lease, interest,option, or permit was
Commission, the U.S. Fish and Wildlife §3101.4-7 Whiskeytown-Shasta-Trinity acquired, or of his predecessor in title
Service, and the Bureau of Land Man- National Recreation Area. (including the original lessee of the
agement. The area subject to the regulations in United States) may have been cancelled
§3101.4 Special leasing acts(areas). this ay be or may have been
numtbeerbpart is edd BOtt—WEST 1sho00, dated in J drawing subject or eited or to cancellation or forfeiture
§3101.4-1 Rights-of-way. 1963, entitled "Proposed Whiskeytown- any such violation.
Lands in and under railroad and other Shasta-Trinity National Recreation (b) Sale of underlying interests. If
rights-of-way acquired under any law of Area," which is on file and available for in any proceeding to cancel or for-
the United States. public inspection in the office of the feit a lease. interest in a lease, option
8
to acquire a lease or an interest therein, the land.A settler whose settlement was §3102.5 Guardian or trustee.
or a permit acquired in violation of any made prior to February 25, 1920,on land §3102.5-1 Statements.
of the provisions of this Act, an under- in the same status but which has since
/--�, lying lease, interest, option, or permit is been withdrawn,classified,or is known to If the offer is made by a guardian
cancelled or forfeited to the Government contain oil or gas, also has such a pref- or trustee, a certified copy of the court
and there are valid interests therein or erence right. order authorizing him to act as such and
valid options to acquire the lease or an (b) Notice required. Any offeror for to fulfill in behalf of the minor or minors
interest therein which are not subject to a lease to lands owned,entered or settled all obligations of the lease or arising
cancellation, forfeiture, or compulsory upon as stated above must notify the per- thereunder; his statements as to the
disposition, such underlying lease in- son entitled to a preference right of the citizenship and holdings of each of the
terest, option, or permit shall be sold to filing of the offer and of the latter's pref- minors, and a similar statement as to
the highest responsible, qualified bidder erence right for 30 days after notice to his own citizenship and holdings under
by competitive bidding it a manner apply for a lease.If the party entitled to the leasing act, including his holdings
similar to that provided for in the offer- a preference right files a proper offer for the benefit of other minors.
ing of leases by competitive bidding within the 90-day period, he will be §3102.5-2 Evidence previously filed.
-- subject to all outstanding valid interests awarded a lease: but if he fails to do so, Where evidence of the authority to
therein and valid options pertaining his rights will be considered to have
thereto. However,if less than the whole terminated. act as a guardian, trustee, an executor
interest in the lease, interest, option, or §3102.3 Associations including partner- or administrator,or where articles of as-
". permit is cancelled or forfeited, such shi s. sociation, including partnership agree-
partial interest shall likewise be sold in p ments, have previously been filed pur-
§3102.3-1 Statements. suant to regulations in this section, a
similar manner. If no satisfactory offer
reference by serial number to the record
is obtained as a result of the competitive If the offeror is an association which
offering of such whole or partial in- meets the requirements of 4 3102,1-1 in which such evidence has previously
terests, such interests may be sold by of this chapter, the offer shall be ac- been filed, together with a statement as
such other methods as the authorized companied by a certified copy of its to any amendments thereof will be
officer deems appropriate, but on terms articles of association or partnership,to- accepted.
not less favorable to the Government gether with a statement showing (f) that §3102.6 Attorney-in-fact.
than those of the best competitive bid it is authorized to hold oil and gas leases; §3102.6-1 Statements.
received. (Ii) that the member or partner execut- (s) Evidence required. (1) Except
(c) Right of dismissal. Effective as of ing the lease is authorized to act onin the case where a member or a
September 21, 1959, any Party to any behalf of the association in such matters; partner signs an offer on behalf of an
and (iii) the names and addresses of all
proceedings with respect to a violation members owning or controlling more association (as to which,see 4 3102.3-1),
of any provision of the Act, whether or where an officer of a corporation
initiated prior or subsequent to that than 10 percent of the association. A signs an offer on behalf of the corpora-
date, has the right to be dismissed separate statement Yrom each person Lion (as to which, see 4 3102.4-1).
owning or controlling more than 10 evidence of the authority of the at-
promptly as such a party by showing percent of the association, setting forth
that he holds and acquired the interest be furnished. Where such material has tomey-in-fact or agent to sign the offer
involving him as a bona fide purchaser his citizenship and holdings, shall also and lease, if the offer is signed by
without having violated any provisions previously been filed, a reference by such attorney or agent on behalf of the
/m, of the Act. No hearing shall be neces- serial number to the record in which it offeror. Where such evidence has pre-
sary upon such showing unless prima has been filed,together with a statement viously been filed in the same land office
facie evidence is presented to indicate as to any amendments, will be accepted. where the offer is filed,a reference to the
a possible violation on the part of the (a) Exception. If the offer is made by serial number of the record in which it
alleged bona fide purchaser. an association which does not meet the has been filed,together with a statement
(d) Suspension. If during any such requirements of 4 3102.1-1 of this chap- by the attorney-in-fact or agent that
proceeding a party thereto files a waiver such authority is still in effect will be
of his rights under his lease to drill or to ter, the same showing as to citizenship accepted.
Assign his interest thereto, or if such and holdings of its members shall be (2) If the offer is signed by an at-
rights are suspended by order of the Sec- made as is required of an individual. torney in fact or agent, it shall be ac-
retary pending a decision, payment of §3102.4 Corporations. companied by separate statements over
rentals and the running of time against S the signatures of the attorney-in-fact or
3102.4-1 Statements.the term of the lease or leases involved § agent and the offeror stating whether or
shall be suspended as of the first day of If the offeror is a corporation, the not there is any agreement or under-
the month following the filing of the offer must be accompanied by a state- standing between them or with any other
waiver or the Secretary's suspension ment showing (1) the State in which it person, either oral or written, by which
until the first day of the month following is incorporated, (2) that it is authorized the attorney in fact or agent or such
the final decision In the proceeding or to hold oil and gas leases and that the other person has received or is to receive
the revocation of the waiver for sus- officer executing the lease is authorized any Interest in the lease when issued,
pension. to act on behalf of the corporation in including royalty interest or interest in
§3102.2 Individuals, such matters, (3) the percentage of vot- ]any op r full details agreement e of thergr
er the
in g stock and of all the stock owned by e
§3102.2-1 Statement of citizenship. aliens or those having addresses outside ment or understanding if it is a verbal
A statement over the offeror's signs- of the United States, and (4) the names one. The statement must be accom-
Lure setting forth his citizenship shall and addresses of the stockholders hold- Panted by a copy of any such written
accompany each offer when first filed. ing more than 10 percent of the stock agreement or understanding. If such an
i t of of the corporation. Where the stock agreement or understanding exists, the
3102.2-2 Preference right gh patentee owned by aliens is over 10 percent,addi- statement of the attorney-in-fact or
• or entryman. tonal information may be required by agent should set forth the citizenship of
(a) Requirements. An entryman or the Bpreau before the lease is issued or the attorney-in-fact or agent or other
patentee who made entry prior to Febru- production is obtained. A separate person and whether his direct and in-
ary 25,1920,or an assignee of such entry- statement from each stockholder own- direct interests in oil and gas leases, ap-
man or a vendee of such patentee if the ing or controlling more than 10 percent Plications, and offers including options
assignment or conveyance was made of the stock of the corporation setting for such leases or interests therein ex-
prior to January 1, 1918, for lands not forth his citizenship and holdings must ceed 248,080 acres in any one State, of
withdrawn or classified or known to be also be furnished. Where such material which no more than 200,000 acres may
valuable for oil and gas at date of entry has previously been filed a reference by be held under option,or exceeds the per-
t ' shall be entitled,if the entry or patent is serial number to the record in which it missible acreage in Alaska as set forth
impressed with a reservation of the oil has been filed,together with a statement in 4 3101.1-5. The statement by the
or gas,to a preference right to a lease for as to any amendments will be accepted. Principal (offeror) may be filed within
9
15 days after the filing of the offer. This (a) Where probate of the estate has (2) Rentals and royalties on producing
requirement does not apply in cases in not been completed: mining leases are to be paid to the Re-
which the attorney-in-fact or agent is a (1) Evidence that the person who as glonal Mining Supervisor. All remit-
member of an unincorporated associa- executor or administrator submits the Lances to Survey offices shall be made
tion (including a partnership), or is an offer, and bond form if a bond is re- payable to the U.S. Geological Survey.
officer of a corporation and has an in- quired, has authority to act in that ca- §3103.1-3 When submitted.
terest in the offer or the lease to be is- pacity and to sign the offer and bond Each offer, when first filed, shall be
sued solely by reason of the fact that forms. accompanied by a filing fee o $10 which
he is a member of the association or a (2) A statement over the signature of will be retained as a service charge,even
stockholder in the corporation. each heir or devisee, similar to that re- though the offer should be rejected or
(3) If the power of attorney specifi- quired of an offeror under §3102.1 and withdrawn in whole or in part. See also
tally limits the authority of the attorney 3102.2-1 concerning citizenship and §§3103.3-1 and 3103.3-2.
in fact to file offers to lease for the sole holdings.
and exclusive benefit of the principal (3) Evidence that the heirs or dev- §3103.2 Fees.
and not in behalf of any other person in isees are the heirs or devisees of the §3103.2-1 General statement.
whole or in part,and grants specific au- deceased offeror and are the only heirs
thority to the attorney-in-fact to ex- or devisees of the deceased. (a) Offers and applications. Offers
ecute all statements of interest and of (b) Where the executor or adman- for noncompetitive oil and gas leases
holdings in behalf of the principal and istrator has been discharged or no pro- must be accompanied by a filing fee of
to execute all other statements required. bate proceedings are required: $10 for each application or offer. Such a
or which may be required, by the Acts (1) A certified copy of the will or de- fee will be retained as a service charge
and the regulations, and the principal tree of iistribution, if any, and if not,a even though the application or offer
agrees therein to be bound by such rep- statement signed by the heirs that they should be rejected or withdrawn in whole
resentations of the attorney-in-fact and are the only heirs of the offeror and the or in part.
waives any and all defenses which may provisions of the law of the deceased's (b) Transfers. An application for ap-
be available to the principal to contest, last domicile showing that no probate is proval of any instrument of transfer of
negate or disaffirm the actions of the required. a lease or interest therein or a filing of
attorney-in-fact under the power of (2) A statement over the signature of any such instrument under§3106.4 must
attorney, then the requirement that each of the heirs or devisees with refer- be accompanied by a fee of $10, and an
statements must be executed by the of- ence to holdings and citizenship, similar application not accompanied by payment
feror will be dispensed with and such to that required under §3102.1 and oY such a fee will not be accepted for
statements executed by the attorney-in- § 3102.2-1 except that if the heir or de-
fect will be acceptable as compliance visee is a minor, the statement must be be returned even though the application
with the provisions of the regulations. over the signature of the guardian or later be withdrawn or rejected in whole
§ 3102.7 Showing as to sole party in trustee. or in part.
interest. §3102.9 Municipalities. §3103.3 Rentals and royalties.
A signed statement by the offeror A municipality must submit evidence §3103.3-1 Rental requirement.
that he is the sole party in interest in of: (a) The manner in which it is orga- Each offer, when first filed, shall be
the offer and the lease, if Issued; if not nized; (b) that it is authorized to hold a accompanied by full payment of the first i1
he shall set forth the names of the other permit or lease; and (c) that the action Year's rental based on the total acreage
interested parties. If there are other proposed has been duly authorized by its if known,and if not known,on the basis
parties interested in the offer a separate governing body.Where such material has of 40 acres for each smallest legal sub-
statement must be signed by them and previously been filed a reference by serial division. An offer deficient in the first
by the offeror, setting forth the nature number to the record in which it has year's rental by not more than 10 per-
and extent of the interest of each in the been filed; together with a statement as cent will be approved by the signing am-
offer, the nature of the agreement be- to any amendments, will be accepted. cer provided all other requirements are
tween them if oral, and a copy of such met. The additional rental must be paid
agreement if written. All interested Subpart 3103—Fees, Rentals and within 30 days from notice under penalty
parties must furnish evidence of their Royalty of cancellation of the lease.
qualifications to hold such lease interest. §3103.0-3 Authorities. 3103.3-2 Advance rental a Such separate statement and written § payments.
agreement,if any,must be filed not later (a) Fees. Act of August 31, 1951 (5 Rentals shall be payable in advance at
than 15 days after the filing of the lease U.S.C.140). the following rates:
offer. Failure to file the statement and (b) Rentals.See §3100.0-3. (a) On noncompetitive leases issued
written agreement within the time al- §3103.1 Payments. on and after September 2, 1980, under
lowed will result in the cancellation of section 17 of the act for lands which on
any lease that may have been issued pur- §3103.1-1 Form of remittance, the day on which the rental falls due lie
suant to the offer.Upon execution of the Cash, money order, check, certified wholly outside of the known geologic
lease the first year's rental will be earned check, bank draft, and bank cashier's structure of a producing oil or gas field,
and deposited in the U.S. Treasury and check. or on which on the day on which the
will not be returnable even though the §3103.1-2 Where submitted. rental falls due the thirty days' notice
lease is canceled. tte period under paragraph (b)(1) of this
§3102.8 Heirs and devisees (estates). (a) Proper land office. Unless other- section has not yet expired, an annual
wise directed by the Secretary, rentals rental of. 50 cents per acre or fraction
If an offeror dies before the lease and royalties under all leases and per- thereof for each lease year.
is issued, the lease will be issued to the mits issued under the act shall be paid (1) For the sixth and each succeeding
executor or administrator of the estate to the Manager of the appropriate land year of a lease which issued prior to Sep-
.
if probate of the estate has not been office. All remittances to Bureau of Land tember 2,1960,and in the State of Alaska
completed,and if probate has been coin- Management offices shall be made pay- of any lease whose initial term expired
pleted,or is not required, to the heirs or able to the Bureau of Land Management. on or after July 3, 1958, rental shall be
devisees, provided there is filed in all (b) Geological Survey. (1) All rentals Payable at the rate of 50 cents per acre
cases an offer to lease in compliance with and royalties on producing oil and gas or fraction thereof.
the requirements of this section which leases, communitized leases in producing (2) For each year of the primary term
will be effective as of the effective date well units, unitized leases in producing of a lease which issued prior to Septern-
of the original application or lease offer unit areas, leases on which compensa- ber 2, 1960, rental shall be payable at
filed by the deceased. If there are any tory royalty is payable,and all payments the rate set forth in the lease. �^',
minor heirs or devisees, such offer can under subsurface storage agreements (b) On leases wholly or partly within
only be made by their legal guardian or and easements for directional drilling the known geologic structure of a pro-
trustee in his name. Each such offer are to be paid to the Regional Oil and clueing oil gas field:
must be accompanied by the following Gas Supervisor of the U.S. Geological (1) If issued noncompetitively under
information: Survey. 10 section 17 of the act,and not committed
agree-
to a cooperative or unit plan which In- the notice period, the rental for the en- exchanged was committed to the suing lease year shall nevertheless be ment orfiled
was included in a duly l ofexecuted
gas as a capable n al producing rov oil or due on the anniversary date, and failure and r ffied application for approval of the
gas and contains a general provision for agreement.
-- allocation of production, beginning with to pay the full rental for that years on (4) From lands within exchange and
the first lease year after the expiration or before that date shall cause the lease renewal leases not subject to subpara-
of thirty days' notice to the lessee that to terminate automatically by operation graph (3) of this paragraph the rate of
all or part of the land is included in such of law, without relieving the lessee of royalty shall be identical to that
pre-
a structure and for each year thereafter liability for rental due for the balance scribed in the prior lease,except that for
prior to a discovery of oil or gas on the of the previous lease year. (30 U.S.C. a lease issued in exchange for or as a
leased lands, rental of $2 per acre or 189; 41 Stat.437.) If the time for pay- renewal of a lease carrying a flat royalty
fraction thereof. ment falls upon any day in which the rate of 5 percent to the United States
(2) If issued noncompetitively under proper office to receive payment is not the royalty shall be as follows:
section 17 of the act, and committed to open, payment received on the next of- (1) When the average production of
an approved cooperative or unit plan ficial working day shall be deemed to be oil for the calendar month in barrels per
which Includes a well capable of produc- timely well per day Is:
Mg oil or gas and contains a general 3103.3-3 Fractional interests. Not over 110 the royalty all be 1234%.
provision for allocation of production, Over 110 but not over 130 the royalty shall
the rental prescribed for the respective Rentals,minimum royalties and royal- be 18%of all production.
lease years in paragraph (a) of this sec- ties payable for lands in which the Over 190 but not over 150 the royalty shall
ti tion shall apply to the acreage not within United States owns an undivided frac- be 19% of all production.
a participating area. tional interest shall be in the same pro- Over 150 but not over 20o the royalty shall
(3) If issued competitively, unless a portion to the rentals, minimum royal- be 20% of all production.
different rate of rental is prescribed in ties and royalties provided in ii 3103.3, Over 200 but not over 250 the royalty shall
the lease, an annual rental of $2 per 3103.3-4, and 3103.3-5, respectively, of be 21% or all production.
acre or fraction thereof prior to a dis- this part,as the undivided fractional in- over a5f but not ucti n. the royalty ahsll
covery on the leased lands. After a dis- terest of the United States in the oil be 22% of all production.
covery, if the lease is unitized, such and gas underlying the leased lands Is Over 300 all not over production.35 the royalty shall
De 28 ro o0 u notover
rental shall be payable on the nonpar- to the full mineral interest. Over 350 but not over 400 the royalty Wall
ticipating acreage only. and royalty as §3103.3-4 Royalty on production. be 24% of all production.
provided in the lease and elsewhere in Over 400 the royalty shall be 25% of all
this Part shall be payable on the par- (a) On and after August 8, 1946, the production.
ticipating acreage. following royalty rates shall be paid on (11) On gas, Including inflammable
(c) On leases issued in any other way, the production removed or sold from gas,helium,carbon dioxide,and all other
an annual rental of El per acre or frac- leases: natural gases and mixtures thereof, and
lion thereof. (1) 12% percent royalty on noncom- on natural or casinghead gasoline and
(d) A lease subject to the provisions Petitive leases issued under section 17 of other liquid products obtained from sae:
of section 31 of the act, as amended by the act: Provided, however, That any when the average production of gas per
section 1(7) of the Act of July 29, 1954 holder of a lease for lands in Alaska well per day for the calendar month does
(30 U.S.C. 188) on which there Is no which issued and was outstanding prior not exceed 5,000,000 cubic feet,125 per-
well capable of producing oil or gas in to May 3, 1958,who shall drill and make cent;and when the production of gas ex-
Paying quantities, shall automatically the irstdiscovery
in any strut- ceeds 5,000,000 cubic feet, 16% percent
terminate by operation of law if the metore shalll pay quantities royalty geologic on produc- of the amount or value of the gas and
lessee falls to pay the full rental due on tion shall the a e 5percent all for liquid products produced.
or before the anniversary date of the (5) In the case of competitive leases,
lease. However, if the time for pay- years following the date of such dos and other leases theretofore issued,inso-
lent falls upon any day in which the covery and thereafter the royalty rate far as subparagraphs (3) and (4) of this
proper office to receive payment is not shall be 12% percent. If such lease is
open,payment received on the next ail- committed to an approved unit or co- paragraph are inapplicable, the rates
operative plan under which such a dos- specified( ) an the ee.
di working day ll be deemed o be coven'is made,the 5 percent rate herein r The ilaverage and
for
shall per well
ease The "anniversary date" aper day for oil for gas shall be deter-
lease means the same day and month in provided shall, for the purpose of coin- mined pursuant to 30 CFR Part 221,"Oil
succeeding years es that en which the puling royalty due the United States, and Gas Operating Regulations."
lease first became effective. The anni- inure to the benefit of all the land to
versary date of a lease does not change. which (c) In determining an allocation is made under such value of gas and liquid the amt proount -
(e) If on the anniversary date of the p
lease less than a full year remains In (2) Such rates as are prescribed in the doted, the ' mount or value shall be net
the lease term, the rentals due shall be notice of sale in the case of all leases after an allowance for the cost of manu-
in the same proportion to the annual thereafter issued by competitive bidding. facture. The allowance for cost of
rental as the period remaining in the (3) 12% percent on all leases there- manufacture may exceed two-thirds of
lease term is to a full year. The rentals tofore Issued, except competitive leases, the amount or value of any product only
shall be prorated on a monthly basis and on exchange and renewal leases on approval by the Secretary of the
for the full months,and on a daily basis thereafter Issued, as to production from interior.
for the fractional months remaining in (P Land determined by the Director, (d) The Secretary of the Interior may
the lease term. For the purpose of pro- Geological Survey, not to be within the establish reasonable values for purposes
rating rentals for a fractional month, productive limits of any oil or gas de- of computing royalty on any or all oil.
each month will be deemed to consist of Posit on August 8, 1946. gas, natural gasoline, and other liquid
30 days. (ii) An oil or gas deposit which was products obtained from gas, due con-
(1) If the term of a lease for which discovered after May 27, 1941,by a well sideration being given to the highest
prorated rentals have been paid is fur- or wells drilled within the boundaries of price paid for a part or for a majority
ther extended to or beyond the next an- the lease and which is determined by of production of like quality in the same
niversary date of the lease, rentals for the Director, Geological Survey, to be a field, to the price received by the lessee,
the balance of the lease year shall be due new deposit. to posted prices and to other relevant
and payable on the date following the (iii) Or allocated to a lease pursuant matters. In appropriate cases this will
date through which the prorated rentals to an approved unit or cooperative agree- be done after notice to the parties and
were paid. If the rentals are not paid ment from an oil or gas deposit which opportunity to be heard.
for the balance of the lease year, the was discovered on unitized land after
lease will be subject to cancellation by May 27,1941,and determined by the Di- §3103.3-5 Minimum royalties.
the Secretary after he has given notice rector, Geological Survey, to be a new On leases issued on or after August
i ' to the lessee in accordance with section deposit, but only if at the time of dos- 8,1946,and on those issued prior thereto
31 of the act. However, if the annt- cover,the lease or,in the case of an ex- if the lessee files an election under sec-
versary date occurs before the end of change lease, the lease for which it was tion 15 of the act of August 8, 1948, a
11
I
minimum royalty of $1 per acre in lieu Where the application is for a reduction as terminating the suspension as to op-
of rental,shall be payable at the expire- in royalty full information shall be fur- erations but not as to production,and as
tion of each lease year after a discovery nished as to whether royalties or pay- terminating the period of suspension to
has been made on the leased lands,coin- ments out of production are paid to �,
mencing with the lease year, beginning others than the United States, the be added to the term of the lease as pro-
vided in paragraph (b) of this section
on or after the date of such discovery, amounts so paid and efforts made to and the period of suspension of rental ,
except that on unitized leases the mini- reduce them. The applicant must also and minimum royalty payments as pro-
mum royalty shall be payable only on file agreements of the holders to a per- vided in paragraph (c) of this section.
the participating acreage. If the actual manent reduction of all other royalties However, as provided in paragraph (d)
royalty paid during any year aggregates from the leasehold to an aggregate not of this section,the term of the lease will
less than$1 per acre the lessee must pay in excess of one-half the Government not be deemed to expire so long as the
the difference at the expiration of the royalties. suspension of operations or production
lease year. remains in effect.
§3103.3-6 Limitation of overriding §3103.3-8 Suspension of operations and (f) The relief authorized under this
production. section may also be obtained for any oil
royalties.
An agreement creating overriding roy- (a) Applications by lessees for relief and gas leases included within an apa
-
alties or payments out of the production from the producing requirements or from proved unit or cooperative plan of do-
of oil which, when added to overriding all operating and producing require- velopment and operation.
royalties or payments out of production ments of mineral leases shall be filed in Subpart 3104—Bonds
of oil previously created and to the royal- triplicate in the office of the Regional Oil §3104.0-5 Definitions.
ty payable to the United States, aggre- and Gas Supervisor for oil and gas leases,
gate in excess of 17'/2 percent shall be and in the office of the Regional Mining (a) General lease bond.
deemed a violation of the terms of the Supervisor for all other leases. By De- §3104.1 Types of bonds.
lease unless such agreement expressly partmental Order No. 2699 and Geo-
provides Bonds shall be either corporate surety
that the obligation to pay such logical Survey Order No. 218 of August boon or personal bonds except that
excess overriding royalty or payments ii,1952,the Regional Oil nd Gas Super- bonds with individual sureties may be
out of production of oil shall be sus- visors and the Regional Mining Super- furnished for the protection of the entry-
pended when the average production of visors are authorized to act on applies- man or owner of surface rights.
oil per well per day averaged on the tions for suspension of operations or (a) General lease or drilling ghts. bond.
monthly basis is 15 barrels or less. The production or both filed pursuant to this All leases shall provide that where
limitation on overriding royalties or section and to terminate suspensions of a$10,000 bond is not already being main-
payments out of production is not appli- this kind which have been or may be twined a general lease bond in the penal
cable to the production of gas. The granted. As to oil and gas leases, no sum of $10,000 conditioned upon com-
limitation in this section will apply sepa- suspension of operations and production pliance with all lease terms covering the
rately to any zone or portion of a lease will be granted on any lease in the ab- entire leasehold, shall be furnished by
segregated for computing Government seats of a well capable of production on the lessee prior to the beginning of drill-
royalty. the leasehold, except where the Secre- ing operations.
§3103.3-7 Waiver,suspension or reduc- Lary directs a suspension in the Interest (b) Known structure or competitive
tion of rental or minimum royalty. of conservation, Complete information lease bond. The successful bidder for a
(a) In order to encourage the greatest must be furnished showing the necessity competitive lease prior to the issuance of ^
ultimate recovery of oil or gas and in of such relief. the lease must furnish a corporate surety
the interest of conservation, the Secre- (d The term of any lease will be ex- bond in the sum of at least double the
tary of the Interior whenever he deter-
suspension by adding thereto any period of amount of the $2 per acre annual rental
mines it necessary to promote develop- Suspension of all operations and pro-
duction during such term pursuant to but in no case less than $1,000 nor more
ment or finds that the leases cannot be an direction or assent of the Secretary. than $10,000 conditioned on compliance
successfully operated under the terms (c) A suspension take ffect as with all the terms of the lease, and such
shall e
provided therein may waive, suspend, a bond also must be filed when all or
or reduce the rental or minimum royalty of the time specified in the direction or any, part of the land in a lease issued
or reduce the royalty on an entire lease- assent of the Secretary. Rental and noncompetitively is included within the
hold,or on any deposit, tract,or portion minimum royalty payments will be sus- limits of a known geologic structure of a
thereof segregated for royalty purposes. pended during any period of suspension producing oil or gas field.
(b) An application for any of the above of all operations and production directed (c) Bond for protection of surface
benefits shall be filed in triplicate in the or assented to by the Secretary, begin- owner.Until a general lease bond is filed,
office of the OA and Gas Supervisor for oil ning with the first day of the lease a noncompetitive lessee will be required
and gas leases.It must contain the serial month on which the suspension of opera- prior to entry on the leased lands to
number of the leases, the land office tions and production becomes effective furnish and maintain a bond in the penal
name,the name of the record title holder or, if the suspension of operations and sum of not less than $1,000 in those
and operator or sublessee and the production becomes effective on any date by law bond 1s required a cases in which
description of the lands by legal other than the first day of a lease month, for the protection
the owners of law
subdivision. beginning with the first day of the lease
tir-
(1) Each application involving oil or month following such effective date. face rights.
gas shall show the number,location, and The suspension of rental and minimum
status of each well that has been drilled, royalty payments shall end on the first §3104.1-1 Where filed and copies.
a tabulated statement for each month day of the lease month in which opera- (a) Proper land office,in single copy.
covering a period of not less than six tions or production is resumed. Where
months prior to the date of filing the ap- rentals are creditable against royalties §3104.1-2 When filed. +
plicatton of the aggregate amount of oil and have been paid in advance, proper (a) Prior to commencement of drill-
or gas subject to royalty computed in credit will be allowed on the next rental ing operations. ,
accordance with the oil and gas operat- or royalty due under the lease. (b) After notice that lands have been
ing regulations, the number of wells (d) No lease shall be deemed to expire included within the limits of a known
counted as producing each month, and by reason of a suspension of either oper- geologic structure.
the average production per well per day. ations or production only, pursuant to (c) Prior to entry on surface of pat-
(c) Every application must contain a any direction or assent of the Secretary. ented lands.
detailed statement of expenses and costs (e) If there is a well capable of pro- (d) Prior to issuance of a competitive
of operating the entire lease,the income ducing on the leased premises and all lease.
from the sale of any leased products,and operations and production are suspended 3104.1-3 Form of bonds.
all facts tending to show whether the pursuant to any direction or assent of § /—,
wells can be successfully operated upon the Secretary, the commencement of The bonds furnished will be on forms
the royalty or rental fixed in the lease. drilling operations only will be regarded approved by the Director.
12
§3104.2 Operator's bond. §3104.4 Personal bond or corporate
§3104.2-1 Compliance. bond. §3704.7-3 Relief.
An operator or, if there is more than §3104.4-1 Amount. However,in lieu thereof, the principal
one operator covering different portionsmay within that time file separate bonds
�i of the lease,each operator may furnish a (a) Personal bond.n In lieu like
a surety for each lease.
$10,000 general lease bond in his own bond,bea given personal bond in a with she de-
as principal on the bond in lieu of may given itby the obligor the de-
name s
the lessee. Where there are one or more posit as security therefor of negotiable
operator's bond affecting a single lease, bonds of the United States of a par value §3104.7-4 Applicability of provisions to
equal to the amount specified in the existing bonds.
each such bond must be conditioned upon
compliance with all lease terms for the bond. The provisions hereof may be made
(b) Corporate bond. applicable to any nationwide or statewide
entire leasehold. § 3104.4-2 Deposit of securities. bond in force at the time of the ap-
§3104.2-2 Approval.
proval of the amendment of this pars-
An operator's bond will not be accepted Personal bonds must be accompanied
unless the operator holds an operating by a deposit of negotiable Federal securi- graph by filing in the appropriate land
agreement which has been approved by ties in a sum equal at their par value to office a written consent to that effect and
the amount of the bond and by a proper an agreement to be bound by the provi-
the Department or has pending an op- conveyance to the Secretary of full au- sions hereof executed by the principal
erating agreement in proper condition thority to sell such securities in case and the surety. Upon receipt thereof the
for approval. The mere designation as of default in the performance of the bond will be deemed to be subject to the
operator will not suffice. conditions of the lease bond. provisions of this paragraph.
§3104.2-3 Default. §3104.8 Unit bond form.
Where a bond is furnished by an op- §3104.4-3 Qualified sureties. (See 30 CFR 1 226.15.)
erator, suit may be brought thereon (U.S.Treasury list.)
without joining the lessee if he is not a §3104.5 Nationwide bond. §3104.9 Exploration bond.
party to the bond. (a) Individual. Simultaneously with
§ 3104.5-1 Amount.
§3104.3 Individual sureties. the filing of the Notice of Intent to Con-
The holder of leases or of operating duct Oil and Gas Exploration Opera-
§3104.3-1 Protection. agreements approved by the Department tions, and before entry is made on the
(a) Entry to leased lands. or holder of operating rights by virtue land, the party or parties filing the
(b) Bonds with individual sureties of being designated operator or agent by "Notice of Intent to Conduct Oil and Gas
may be furnished for the protection of the lessees pending departmental ap- Exploration Operations" must file with
the entrymen or owner of surface rights. Proval of operating agreements,may fur- the District Manager a surety company
3104.3-2 Net worth statement. nish a bond the amount of which must be bond In the amount of $5,000, condi-
§ surety must execute a statement $150.000 for full nationwide coverage tioned upon the full and faithful com-
Each Y under both the Mineral Leasing Act and pliance, for each oil and gas exploration
showing that he is worth in real prop- the Mineral Leasing Act for Acquired operation,with all of the terms and con-
erty not exempt from execution, double Lands of 1947 (61 Stat. 913; 30 U.S.C. ditions of the regulations in this sub-
the sum specified in the undertaking, 351-369), part and of that notice.
over and above his just debts and liabili- §3104.6 Statewide bond. (b) Nationwide. A $50,000 nationwide
ties and that he is either a resident of bond.
* the same State and the U.S.Judicial Dis- §3104.6-1 Amount. (c) Statewide. A statewide bond in
trict as the principal on the bond, or of The holder of leases or of operating the amount of $25,000 covering all oil
the State and the Judicial District in agreements approved by the Department and gas exploration operations in the
which the lands involved are located. or holder of operating rights by virtue of same State.
§3104.3-3 Certificate required. being designated operator or agent by §3104.9-1 Riders to existing bond
There also must be furnished a certifi- the lessees pending departmental ap- forms.
cate by a judge or clerk of a court of prove] of operating agreements, may (a) Nationwide and statewide bonds.
record, a U.S. Attorney, a U.S. Commis- furnish a bond the amount of which must Holders of nationwide and statewide oil
be at sioner, or a U.S. Postmaster, as to the coverage.
overs he rate of$25,000 for each unit of and gas lease bonds shall be permitted to
identity, signature, and financial corn- g amend their bonds to include exploration
petency of the sureties. § 3104.6-2 Unit of coverage. activities in lieu of furnishing additional
§3104.3-4 Requirements. A unit of coverage shall be all the bonds.
All bonds furnished with individual lands in any one State held by the prin- §3104.9-5 Termination of period of
sureties will be examined every 2 years, cipal under either the Mineral Leasing liability.
Act or the Mineral
or at any other time when found ad- Leasing Act for The District Manager will not give his
visable, and the principal on the bond Acquired Lands. Coverage under both consent to the cancellation of the bond
will be required to furnish new state- acts in one State constitutes two units. if an individual bond was submitted, or
ments of justification by the sureties and § 3104.7 Default. to the termination of liability if a State
a new certificate of financial competency, §3104.7-1 Payment by surety. or nationwide bond was submitted, un-
and if such sureties are unable to less and until all of the terms and con-
qualify additional security will be re- Where upon a default the surety makes ditions of the "Notice of Intent to Con-
gifted. payment o the
Governmentf the face
face duct Oil and Gas Exploration Opera-
debtedness due under a lease, th
§3104.3-5 Terms. amount of the surety bond and the tions" have been complied with. Should
Where surety bonds are tendered surety's liability thereunder shall be re- the District Manager or any other au-
with individuals as sureties they must be duced by the amount of such payment. thorized officer of the Bureau of Land
executed by not less than two qualified §3104.7-2 Penalty. Management fail to notify the party
individual sureties to cover compliance within 90 days from the filing of"Notice
with all terms and conditions of the lease Thereafter, upon penalty of cancella- of Completion" that all terms and
or permit or the applicable law or regu- tion of all of the leases covered by such conditions have been complied with or
lotions. bond that principal shall post a new na- that additional corrective measures must
§3104.3-6 Forms. tionwide bond in the amount of$150,000 be taken to rehabilitate the land,
or a unit bond,as the case
The statement of justification required 6 months after notice, or within such liability and
lity for a particular oil gas ex-
to be furnished by the sureties, and the shorter period as the authorized officer ploration operation under a state cc
jr N, of competency should be on of the Bureau of Land Management may nationwide bond shall automatically ter-
a form approved by the Director. fix. minate on the 91st day.
13
Subpart 3105—Cooperative owned by the United States,when in the or lines of railroads to be operated and
Conservation Provisions public interest. Operations or produc- used by them jointly in the transporta-
3105.0-7 Cross-references. tion pursuant to such an agreement tion of oil from their several wells or
in-
The procedure in obtaining approval shall be deemed to be operations or pro- from the wells of other lessees,or to in-
duction as to each lease committed crease the acreage which may be ac-
of a cooperative or unit plan of develop- thereto. quired or held under the provisions of
ment including suggested text of an section 17 of the act relating to competi-
agreement acceptable to the Department §3105.2-3 Requirements. five leases.
Is contained in 30 CFR Part 226 "Unit The agreement shall describe the §3105.4-3 Requirements.
or Cooperative Agreements". separate tracts comprising the drilling or
§3105.1 Cooperative or unit plans. spacing unit, shall show the apportion- The application must show a rea-
ment§3105.1-1 Where filed. of the production or royalties to sonable need for the combination and
the several parties and the name of the that it will not result in any concentra-
All applications to unitize and all doe- operator, and shall contain adequate tion of control over the production or
uments incident thereto shall be filed provisions for the protection of the in- sale of oil and gas which would be Moon-
in the office of the Oil and Gas Super- terests of all parties, including the sistent with the anti-monopoly provi-
visor, Geological Survey in the region United States. The agreement must be sions of the law.
in which the unit area is situated. signed by or in behalf of all necessary §3105.4-4 Rights-of-way.
§3105.1-2 Purpose. parties and will be effective only after
The agreement must be for the purpose approval by the Secretary of the Interior Rights-of-way for oil and gas pipe
of more properly conserving the natural as provided therein. lines may be granted as provided for in
3105.3 Operating,drilling,or develop-
field, _ Group 2800 of this chapter.
resources o any such oil or gas pool, § meat contracts.g� g. p 3105.5 Subsurface storage of oil and
Reid, or area covered thereby and must § g
be determined and certified by the Sec- §3105.3-1 Where filed. gas.
retary of the Interior to be necessary or §3105.5-1 Where filed.
advisable in the public interest. A contract submittted for approval tm-
§3105.1-3 Protection of public interest. der this provision should be filed with the (a) Application. Applications for sub-
appropriate Land Office Manager,Bureau surface storage shall be filed in triplicate
The Secretary,with the consent of the of Land Management, together with with the Oil and Gas Supervisor.
lessees, is authorized to establish, alter, enough copies to permit retention of five (b) Final agreement.Enough copies of
change or revoke drilling, producing, copies by the Department after approval. the final agreement signed by the parties
rental,minimum royalty,and royalty re- in interest shall be submitted for the ap-
quirements of the leases and to make proval of the Secretary to permit reten-
such regulations with reference to such §3105.3-2 Purpose. Lion of five copies by the Department
leases as he may deem necessary or prop- The authority of the Secretary after approval.
er to secure the protection of the public to approve operating, drilling, or de- §3105.5-2 Purpose.
interest. velopment contracts without regard to In order to avoid waste or to promote
acreage limitations ordinarily will be conservation of natural resources, the
§3105.1-4 Acreage chargeability. exercised only to permit operators or Secretary of the Interior, upon applies-
pipeline companies to enter into con- tion by the interested parties, may au-
cooperative plan approved or prescribed tracts with a number of lessees sufficient thorize the subsurface storage of oil or ."
by the Secretary of the Interior shall to justify operations on a large scale for gas, whether or not produced from fed- '
be excepted in determining acreage the discovery, development, production, erafly owned lands, in lands leased or
charges.For the extension of leases corn- or transportation of oil or gas and to subject to lease under the act. Such au-
finance mitted to a unit plan,see section 3107.4. the same. thorization will provide for the payment
§3105.1-5 Requirements. §3105.3-3 Requirements. of such storage fee or rental on the stored
The contract should be accompanied oil or gas as may be determined adequate
The act authorizes lessees and their each case,or,in lieu thereof,for a roy-
representatives to unite with each by a statement showing all the interests 'dlty other than that prescribed in the
other, or jointly or separately with held by the contractor in the area or ease when such stored oil or gas is pro-
others,in collectively adopting and oper- field and the proposed or agreed plan of duced in conjunction with oil or gas not
ating under a cooperative or unit plan operation or development of the field.All previously produced.
of development or operation of any oil the contracts held by the same contractor
or gas pool,field,or like area,or any part in the area or field should be submitted §3105.5-3 Requirements.
thereof (whether or not any part of such for approval at the same time, and full The final agreement shall disclose the
pool, field, or like area is then subject disclosure of the project made. Corn- ownership of the lands Involved, the
to any cooperative or unit plan of de- Plete details must be furnished in order parties in interest, the storage fee, rent-
velopment or operation). that the Secretary may have facts upon al, or royalty offered to be paid for such
lli which to make a definite determination storage and all essential information
3105.2 Communitization or drilling ng in accordance with the provisions of the showing the necessity for such project.
agreements. act, and prescribe the conditions on
§3105.2-1 Where filed, which approval of the contracts is made. §3105.5-4 Extension of lease term.
(a) Preliminary request. Preliminary §3105.4 Combination for joint opera- Any lease used for the storage of
requests to communitize separate tracts tions or for transportation of oil. oil or gas shall be extended for the period
shall be filed in triplicate with the OR of such storage and so long thereafter as
and Gas Supervisor. §3105.4-1 Where filed. oil or gas not previously produced is pro-
(b) Executed agreements. Executed An application under this section duced in paying quantities.
agreements shall be submitted In suffi- together with enough copies to permit §3105.6 Consolidation of leases.
dent number to permit retention of five retention of five copies by the De-
copies by the Department after approval. partment after approval should be filed Consolidation of leases may be§3105.2-2 Purpose. ap-
with the Director,Bureau of Land Man- proved if it is determined that there Is
agement. sufficient justification. Each application
The Secretary is authorized when §3105.4-2 Purpose. will be considered on its own merits.
separate tracts under lease cannot be Ordinarily, leases to different lessees for
independently developed and operated Upon obtaining the approval of the different terms,rental,and royalty rates
in conformity with an established well- Secretary,lessees may combine their in- as well as those containing provisions of
spacing or well-development Program.to terests in leases for the purpose of con- law which cannot be reconciled,will not
approve communitization or drilling structing and carrying on the business be considered for consolidation. The ef- �—%\
agreements for the lease or any portion of a refinery,or of establishing and con- fective date of the consolidated lease
thereof with other lands, whether or not =meting as a common carrier a pipe line will be that of the oldest lease involved..
14
Subpart 3106--Assignment or §3106.1-6 Beim and devisees. title in all of the lands in the lease must
Transfers and Subleases In order for the heirs or devisees also be accompanied by consent of his
,fr- §3106.1 Qualifications. of a deceased holder of a lease,an oper- surety to remain bound under the bond
§3106.1-1 Who may file. ating agreement, or a royalty interest of record for the lease interest retained
Leases may be assigned or subleased in a producing lease,to be recognized by' by said assignor, if the bond, by its
the Department as the holder of the terms,does not contain such consent. If
as to all or part of the leased acreage lease, agreement,or interest,there must a party to the assignment has previously
and as to either a divided or undivided be furnished the appropriate showing furnished a nationwide or statewide
interest therein to any person or persons required under f 3102.8. bond, no additional showing is neces-
qualified to hold a lease. sary by such party as to the bond
(a) Minors—(1) Exception. A minor, §3106.2 Requirements. requirement.
except a minor heir or devisee of a lessee. §3106.2-1 Where filed and filing fee. (b) Continuing responsibility. The
1s not qualified to hold a lease and an An application for approval of any assignor or sublessor and his surety
assignment to a minor will not be instrument of transfer of a lease of will continue to be responsible for the
approved. interest therein or a filing of any such performance of any obligation under
§3106.1-2 Failure to qualify. instrument under f 3106.4 must be filed the lease until the assignment or sub-
No assignment will be approved if the in the proper land office and accompanied lease is approved. U the assignment or
assignee or sublessee or any other parties by a fee of $10. An application not ac- transfer is not approved, eft' obllga-
in interest are not qualified to take and companied by payment of such a fee will tons to the United States shall continue
hold a lease or if their bond is insuf- not be accepted for filing by the manager. as though no such assignment or trans-
ficient or if they fail to file the statement Such fee will not be returned even though fer had been fled for approval. After
of interest required by section 3108.1-4. the application later be withdrawn or approval the assignee or sublessee and
rejected in whole or in part. his surety will be responsible for the per-
§3106.1-3 Number of copies required. §3106.2-2 Forms and statements. withstanding armance of 1nYl l terms ase obligationsithe assign-
formation single copy of any additional in- (a) Record title; copies required. As- meet or sublease to the contrary.
formation relating to citizenship and signments of record title interests must
qualifications of corporations will be suf- be filed in triplicate. §3106.2-4 Royalty and production pay-
fleient.Except for assignments of royalty ments.
interests all instruments of transfer of (1) Approved form. A form approved (a) Royalty.If any overriding royalty
a lease or of an interest therein, in- by the Director, or unofficial copies of or payments out of production are ere-
eluding assignments of working interests, that form in current use may be used for ated which are not shown in the instru-
operating agreements, and subleases, such transfers and requests for approval: ment or agreement,a statement must be
must be filed for approval within 90 Provided, That the unofficial copies are submitted describing them.
days from the date of final execution exact reproductions on one sheet of both (b) Production payments. If pay-
and, except for record title assignments, sides of the official approved one-page ments out of production are reserved, a
must contain all of the terms and con- form, and are without additions, omis- statement should be submitted stating
ditions agreed upon by the parties sions, or other changes, except that the the details as to the amount, method of
thereto, together with similar evidence copies shall include the following state- payment, and other pertinent terms. A.
and statements as that required of an went above the signature of the as- single copy of any additional information
offeror under subpart 3102. signee: "This form is submitted in lieu oY relating to citizenship and qualifications
§ 3106.1-4 Sole party in interest. the official form and contains all oY the of corporations,will be sufficient.
provisions thereof as of the date of filing unless the lease account is in good
The assignment or sublease must be of this assignment." In addition, the standing as to the area covered by the
accompanied by a signed statement by name and address of the printer or other assignment when the assignment and
the assignee or sublessee that he is the party issuing unofficial reproductions of bond are filed,or is placed in good stand-
sole party in interest in the assignment the official form shall be printed thereon. ing before the assignment is reached for
or sublease; if not,he shall set forth the This form may be used for any assign- action the lease will be canceled as pro-
names of the other interested parties.If meat which affects a transfer of the vided in subpart 3108.
there are other parties interested In the record title to all or part of an oil and §3106.2-6 Description of lands.
assignment or sublease,a separate state- gas lease, but it Is not to be used for
ment must be signed by them and by the any other type of transfer. The official Each instrument of transfer must
assignee or sublessee setting forth the form, or a valid reproduction of the of- describe the lands involved in the same
tidal form, will also constitute approval manner as described in the lease or in
nature and extent of the interest of each,
the nature of the agreement between of the assignment when signed by the the manner required by f 3101.1-4.
them, if oral, and a copy of the agree- manager of the land office in behalf of (a) Effect of assignment. An assign-
ment if written. Such separate state- the United States. ment of a definitely described portion of
meat and written agreement, if any, (2) Separate instruments required. the lands in a lease segregates the as
must be filed not later than 15 days A separate instrument of assignment signed and the retained portions into
after the filing of the assignment or sub- must be filed for each oil and gas lease separate and distinct leases. An assign-
lease. when transfers involve record titles• in
When transfers to the same person,assn- the entire leasehold or 1n any definitely meat of an undivided interest eithern
§3106.1-5 Attorney-in-fact. elation, or corporation, involving more
Where an attorney-in-fact or agent, than one oil and gas lease are filed at described portion thereof shall not seg-
* in behalf of the assignor or assignee, the same time for approval, one request regate or have the effect of segregating
signs the instrument of transfer or for approval and one showing as to the the lease into separate or distinct leases.
the application for approval, evidence qualifications of the assignee will be suf- §3106.3 Approval.
of the authority of the attorney-in-fact ficient. §3106.3-1 Approval.
or agent to sign such assignment or ap- (b) Other than record title: copies To obtain approval of a transfer
plication must be furnished. Where such required. A single executed copy of all affecting the record title of an oil and
evidence has previously been fled in the other instruments of transfer, or of an gas lease, a request for such approval
same land office where the assignment operating agreement is sufficient must be made, within 90 days from the
is filed, a reference to the serial number §3106.2-3 Bonds. date of the execution of the assignment
of the record in which it has been filed by the parties.
will be accepted. In those cases where (a) Coverage.If a bond is necessary,it
the application for approval of an as- must be furnished.Where an assignment §3106.3-2 Separate zones.
signment is signed by an attorney-In-fact does not create separate leases the as- An assignment of a separate zone or
/---,, or agent there must also be submitted signee,if the assignment so provides,may deposit or of a part of a legal subdivision
similar statements and evidence from the become a joint principal on the bond with will not be approved unless the necessity
principal and the agent or attorney-in- the assignor. Any assignment which therefor is established by clear and con-
fact to that required by 13102.6. does not convey the assignor's record vicing evidence.
15
3106.3-3 Effective date. "Application for Extension of Oil and The application will be rejected if such
§ Gas Lease", or unofficial copies of that filing or payment is not made within the
Subject to final approval by the Bu- form in current use and must be accom- time allowed.
reau of Land Management, assignments ponied by a filing fee of$10 which will be §3107.1-6 Expiration by operation of " 1
or subleases shall take effect as of the retained as a service charge even though law, `
first day of the lease month following the application is later withdrawn or re-
the date of filing in the proper land office jected and, unless previously paid, the Upon failure of the lessee or the
of all the papers required by this sixth year's rental: Provided, That the other persons enumerated in paragraph
subpart. unofficial copies are exact reproductions (a) of this section to file an application
§3106.3-4 Transfer of offer. on one sheet of both sides of the official for extension within the specified period,
approved one-page form, and are with- the lease will expire at the expiration of
A transfer of the whole interest in all out additions, omissions, or other its primary term without notice to the
or any part of the offer may be approved changes or advertising. Tl.a official lessee. Notation of such expiration need
as an incident to the transfer,by assign- form or a valid reproduction of the offi- not be made on the official records, but
ment or otherwise, of the whole interest cis] form, will also constitute approval the lands covered by such expired lease
in all or any part of the lease.A transfer of the extension when signed by an au- will be subject to the filing of new lease
of an undivided fractional interest in the offers only as provided in subpart 3112,
whole offer may be approved as an inci-
dent thorized officer.
to the transfer of an undivided § 3107.1-2 Effect of withdrawal of §3107.2 Continuation by drilling.
fractional interest in the whole lease.An lands. §3107.2-1 Terms defined.
application for approval of a transfer of Where, upon the expiration of the (a) Actual drilling operations.As used
an offer must include a statement that initial 5-year lease term,the leased lands in this section "actual drilling opera-
the transferee agrees to be bound by the or any part thereof, have been with- tions"shall include not only the physical
offer to the extent that it is transferred drawn from leasing,the lease will not be drilling of a well but the testing, corn-
and must be signed by the transferee.In extended as to such lands,except that,a pleting or equipping of such well for the
other instances transfers of an offer will withdrawal shall not affect the right to production of oil or gas.
not be approved prior to the issuance an extension if drilling operations were (b) Primary term. "Primary term"
of a lease for the lands or deposits coy- actually commenced on the withdrawn means all periods in the life of the lease
ered by the said transfers. lands prior to the effective date of the prior to its extension by reason of pro-
§3106.4 Royalty interests. withdrawal and such operations were duction of oil or gas in paying quantities.
Royalty interests in oil and gas leases being diligently prosecuted on the ex- §3107.^--2 Diligent operations.
constitute holdings or control of lands piration date of the lease,or if notice of Actual drilling operations must be
and deposits within the meaning of sec- the withdrawal has not been sent by
tion 27 of the act. In order that the registered mail to each lessee to be af- conducted in such a way as to be an
effort which one seriously looking for oil
holdings of the assignee may be verified, tested thereby, at least 90 days prior to
all assignments of royalty interests the termination date of the lease. or gas could be expected to make in that
particular area, given existing knowl-
should be filed for record purposes with- §3107.1-3 Term of extension. edge of geologic and other pertinent
in 90 days from the date of execution,but Upon compliance with, and in ac- facts.
no formal approval will be given. Any cordance with, the provisions of this
such assignment will be deemed to be §3107.2-3 Period of extension.
section, the lease will be extended, sub-
valid provided it is accompanied by a ject to the rules and regulations in force Any lease on which actual drilling r1
statement over the assignee's signature operations, or for which under an sp-
at the expiration of the initial.term, (1)
that he is a citizen of the United States the lands not within the known proved cooperative or unit plan of de-
as to
and that his interests In oil and gas geologic structure of a producing oil or velopment or operation, actual drilling
leases do not exceed the acreage limits- gas field, for a period of 5 years, and operations were commenced prior to the
tion as provided in I 3101.1-5 and by the so long thereafter as oil or gas is pro- end of its primary term and are being
statement as to overriding royalties re- duced in paying quantities,and (2) as to diligently prosecuted at that time, shall
quired by 13103.3-6. If any portion of lands within the known geologic struc- be extended for 2 years and so long
this statement is found to be false the ture of a producing oil or gas field,for a thereafter as oil or gas is produced in
assignment shall be invalid. period of 2 years and so long thereafter paying quantities.
§3106.5 Extensions. as oil or gas is produced in paying quan- § 3107.3 Continuation of lease on termi-
See §3107.6. titles. nation of production.
§3107.1-4 Segregative effect of appli- §3107.3-1 Cessation of production.
Subpart 3107—Continuation, cation.
Extension or Renewals The timely filing of an application A lease which is in its extended
extension shall have the effect of term because of production shall not
for
§3107.1 Single extensions, until fe the terminate upon cessation of production
segregating the leased landsw
§3107.1-1 Requirements. final action taken on the application is drilling
60 Brat thereafter,nsonthereworking
(a) Who may apply.Under the condi- noted on the tract book,or,for acquired or d omm cad and are thereaftercleaseholdcon-
tras set out in the following paragraphs lands, on the official records relating are commenced and diligence
ring
of this section, the record title bolder of thereto, of the appropriate land office. ducted with reasonable diligence during
any noncompetitive lease maintained in Prior to such notation,the lands are not the period of nonproduction.
accordance with the statutory require- available to the filing of offers to lease. §3107.3-2 Nonp ion from lease
ments sud the regulations in this part capable of production.
Offers to lease filed prior to such note-
which issued prior to September 2, 1960, No lease for lands on which there
lion will confer no rights in the offeror
shall be entitled,to a single extension of and will be rejected. is a well capable of producing oil or gas
the lease at the expiration of the initialin paying quantities shall expire because ,
five-year term unless then otherwise pro- §3107.1-5 Rejection. the lessee fails to produce the same,un-
vided by law. An application for such If during the 90-day period prior less the lessee fails to place the well on
extension may be filed by the record title a producing status within 60 days after
holder of the lease,by an assignee whose to the expiration date of the lease, the receipt of notice by registered mall from
assignment has been filed for approval,or record title holder, assignee or operator the Regional Oil and Gas Supervisor to
by an operator whose operating agree- files an application or request for an ex- do so: Provided,That after such status
ment has been filed for approval. tension not on the prescribed form or is established production shall continue
(b) Application. The application for unofficial copies thereof, or fails to file on the leased premises unless and until
extension must be filed, within ninety the prescribed number of copies, or pay suspension of production is allowed by
days before the expiration date of the the sixth year's rental, a notice will be the Secretary of the Interior under the .
lease,on a form approved by the Director. issued allowing him 30 days to do so. provisions of the act.
16
§3107.4 Extension for terms of coop- §3107.6-2 Undeveloped parts of leases §¢3103.3-2,3103.3-4 and 3103.3-5.An ap-
erative or unit plan. in their extended term. plication to renew should be flied in
\3107.4-1 20-year lease or any renewal Undeveloped parts of leases retained triplicate, in the proper office as pre-
thereof• or assigned out of leases which are scribed in $3000.5 at least 90 days,
Any lease issued for a term of 20 in their extended term under any but not more than 6 months, prior to
years,or any renewal thereof,committed Provision of the act shall continue in the expiration of its term, and must be
to a cooperative or unit plan approved effect for two years after the effective accompanied by a nonrefundable fling
by the Secretary of the Interior, or any date of assignment and so long thereafter fee of$10.
portion of such lease so committed,shall as oil or gas is produced in paying quan- §3107.8-3 Approval.
continue in force so long as committed titles, provided the parent lease was is-
to the plan, beyond the expiration date sued prior to September 2, 1960. (a) Acceptable application.If the out-
of its primary term. This provision does §3107.6-3 Undeveloped parts of pro- standing obligations in excess of 5
not apply to that portion of any such bl
ducing leases. from percent of
dojo not production
leai which unit notplan included in the coop-
erative w Undeveloped parts of leases retained burden on the lease prejudicial to
com or to August the 8, se was
so committed prior to 8, 1946. or assigned out of leases which are the interests of the United States, they
3107.4-2 Other leases committed to extended by production, actual or sus- will not be considered a bar to its renewal
§ pended, or the payment of compensa- but any lease that may be issued will be
plan. upon the condition,to be incorporated in
tory royalty shall continue in effect for
Any other lease issued under any two years after the effective date of as- the lease, that if and when the cost of
section of the act,committed to any such operations, including the payment of
plan that contains a general provision signment and so long thereafter as oil overriding royalties or
or gas is produced in paying quantities. y payments out of
for the allocation of oil or gas, shall production, shall be determined by the
continue in effect as to the land coin- §3107.7 Exchange leases. authorized officer of the Bureau of Land
matted so long as the lease remains §3107.7-1 20-year leases. Management to constitute such a burden
subject to the plan: Provided,That pro- (a) Requirements and terms. Any such royalties and payments shall be
duction of oil or gas is had in paying lease which issued for a term of 20 reduced to not more than 5 percent of
quantities under the plan prior to the the value of the production. 11 no ob-
e years, or any renewal thereof, or which
expiration date of such lease, whether fiction to the renewal of the lease sp-
it be in its primary term or its extended issued in exchange fora 20-year lease peas copies of a renewal lease, in
term prior to August 8, 1946, may be ex- triplicate, dated the first day of the
changed, for a new lease. Such new month in which the original lease termi-
lease will be issued for a primary term nated, will be forwarded to the lessee for
of 5 years and so long thereafter as oil execution. If upon receipt of the ex-
or gas is produced in paying quantities
3107.4-3 Segregation of leases corn- ecuted lease forms and a satisfactory
§ and r s ribed n I rental and royalty lease bond, the lease is executed, one
mitred in pan. rates prescribed in §§3103.3-2, 3103.3-4, copy thereof will be delivered to the
Any lease committed after July 29, and 3103.3-5.An application to exchange lessee.
r4054 to such a plan, which covers a lease for a new lease should be filed (b) Unacceptable application. If a
Inds within and lands outside the area in triplicate by the lessee with the man- determination is made that overriding
overed by the plan,shall be segregated, alter of the appropriate land office,must royalties and payments out of pro-
as of the effective date of unitization. show full compliance by the applicant duction In excess of 5 percent of gross
into separate leases; one covering the watt,the terms of the lease and applicable production constitute a burden on lease
lands committeed to the plan and the regulations,ynone and must feee
accompanied
a nonrefundable filing fee of$10. operations to the extent that proper and
other the lands not so committed. The timely development will be retarded, or
segregated lease covering the nonunit- continued operation of the lease im-
ized portion of the lands, shall continue paired, or premature abandonment of
In force and effect for the term thereof the wells caused, the lease application
but for not less than two years from the § 107'8 Renewal leases. will be suspended and the parties in in-
date of segregation, and so long there- §3107.8-1 Requirements. terest will be offered an opportunity to
after as oil or gas is produced in paying i a) Such application should be made reduce the excessive overriding royalties
or other payments out of production to
quantities. by the record title holder or holders
t more 5 percent§3107.5 Extension by elimination. of the lease and may be joined in or of the production. If t f value
he holders of
Any lease eliminated from any ap- consented to by the operator of record. outstanding overriding royalty or other
proved or prescribed cooperative or unit The application should show whether all interests payable out of production, the
Uplan or from any communitization or moneys due the er o ed States have been operator, and the lessee are unable to
paid and whether operations under the enter into a mutually fair and equitable
drilling agreement authorized by the act, lease have been conducted in accordance
and any lease in effect at the terming- with the regulations of the Department. agreement, any of the parties may apply
tion of such plan or agreement, unless ,b) The applicant or his operator shall for a hearing at which all Interested
relinquished, shall continue in effect for furnish in triplicate with the application parties may be heard and written state-
the original term of the lease, or for ments presented. Thereupon a final de-
for renewal,copies of all agreements not
2 years after its elimination from the theretofore filed providing for overriding cision will be rendered by the Depart-
plan or agreement or the termination royalties or other payments out of pro- ment outlining the conditions acceptable
thereof, whichever is the longer, and so duction from the lease which will be in to it as a basis for a fair and reasonable
long thereafter as oil or gas is produced existence as of the date of its expiration. adjustment of the excessive overriding
in paying quantities. When such payments, including over- royalties and other payments out of pro-
§3107.6 Extension of leases segregated riding royalties, are in excess of 5 per- duction, and an opportunity will be af-
by assignment. cent of gross production a detailed state- forded within a fixed period of time to
§3107.6-1 Extension after discovery on merit of the income from and costs of submit proof that such adjustment has
other segregated portions. operation of the lease for the twelve been affected. Upon failure to submit
Any segregated by month period immediately preceding the such proof within the time so fixed,the
includingAlease ths retained portion,assignment,t, month in which the application for re- application for renewal will be denied.
newal is filed must also be furnished.�ontlnue in effect for the primary § Terms. §3107.8-4 Form of lease.
rm of the original lease,or for two years •8107.8-2 Renewal and exchange leases will be
after the date of discovery of oil or gas Twenty-year leases or renewals thereof issued on a form approved by the Direc-
in paying quantities upon any other seg- may be renewed for successive terms of tor. The rentals and royalties payable
regated portion of the original lease, 10 years at the rental and royalty rates thereunder will be set out on such ached-
whichever is the longer period. specified for such renewal leases in ule as may be appropriate.
17
§3107.9 Other types. fails to pay the deficiency within the (d) Extension of terms of reinstated
3107.9-1 Payment of compensatory period prescribed in the Notice of Defl- leases.In any case where a reinstatement
chancy provided for in this section. A of a terminated lease is granted under
royalty.
deficiency will be considered nominal if this section and the authorized office/1 "
The payment of compensatory royalty it is not more than$10 or five per centum finds that the reinstatement of such
shall extend the primary or extended (5 percent) of the total payment due, lease will not afford the lessee a res son-
term of any lease for the period during whichever is more.The authorized officer able opportunity to continue operations
which such compensatory royalty is will send a Notice of Deficiency to the
paid, and for a period of 1 year from lessee on a form approved by the Direc- under the lease, the authorized officer
the discontinuance of such payments, tor. The notice will be sent by certified may, at his discretion, extend the term
and for so long thereafter as oil or gas is mail, return receipt requested, and will of such lease for such period as he be-
produced in paying quantities. allow the lessee 15 days from the date of lieves will give the lessee such an oppor-
§3107.9-2 Proceedings under Multiple receipt or until the due date, whichever tunity. Such extensions shall be subject
Mineral Development Act of August is later,to submit the full balance due to to the following conditions:
13,1954. the appropriate office. If the payment (1) No extension shall exceed a pe-
called for in the notice is not paid within rind equivalent to the time (i) beginning
See 1 3101.1-6. the time allowed, the lease will have when the lessee knew or should have
terminated by operation of the law as of known of the termination and(11) ending
Subpart 3108—Terminations and its ann cn the date on which the authorized
iversary date.
Expirations (c) Reinstatement. (1) Except as officer grants such petition.
3108.1 Relinquishments. (2) No extension shall exceed a period
§ quishment., hereinafter provided,the authorized offi- equal to the unexpired portion of the
A lease or any legal subdivision thereof cer may reinstate a terminated lease lease or any extension thereof remaining
may be surrendered by the record title which has been or is hereafter termi- at the date of termination.
holder by filing a written relinquishment, nated automatically by operation of law (3) When the reinstatement occurs
in triplicate,in the proper land office. A for failure to pay on or before the anni- after the expiration of the term or eaten-
relinquishment shall take effect on the versary date the full amount of rental Sion thereof, the lease may be extended
date it is flied subject to the continued due, provided that (I) such rental was from the date the authorized officer
obligation of the lessee and his surety to paid or tendered within 20 days there- grants the petition.
make payments of all accrued rentals and after, and (ii) it is shown to the satis- (e) Service of documents. The rules
royalties and to place all wells on the land faction of the authorized officer that governing filing and service of documents
to be relinquished in condition for sus- such failure was either justifiable or not set cut in § 1840.0-6(e) of this chapter
pension or abandonment In accordance due to a lack of reasonable diligence on shall apply to notices of deficiency and
with the regulations and the terms of the the part of the lessee,and (iii) a petition termination issued under the provisions
lease. A statement must be furnished for reinstatement, together with the of this section .
that all moneys due and payable to work- required rental, including any back §3108.2-2 Expiration.
rental which has accrued from the date
men employed on the leased
premises of termination of the lease, is filed with §3108.2-3 Noncompliance with leasing
have been paid. the appropriate office within 15 days act or lease terms.
§3108.2 Operation of law. after receipt of Notice of Termination of Whenever the lessee fails otherwise
Lease due to late payment of rental. The to comply with any of the provisionkTh
§3108.2-1 Automatic terminations and
Notice of Termination will be sent by of the act, of the regulations issues.reinstatement. certified mail, return receipt requested. thereunder, or of the lease, such lease
(a) Automatic terminations. Except Notices of Termination will not be sent to may be canceled by the Secretary of the
as provided in paragraph (b) of this sec- lessees whose leases terminated prior to Interior if not known to contain valuable
tion, any lease subject to the provisions May 12, 1970.Lessees whose leases termi- deposits of oil or gas after notice to lessee
of section 31 of the act, as amended by nated prior to May 12, 1970, must file in accordance with section 31 of the act,
section 1(7) of the Act of July 29, 1954 Petitions for reinstatement with the ap- if default continues for the period pre-
(30 U.S.C. 188) on which there is no well propriate office by close of business on scribed in that section after service of
capable of producing oil or gas in paying December 31, 1971. Such petitions are notice thereof. Any lessee of a lease
quantities, shall automatically termi- subject to all other appropriate provi- which issued prior to July 29, 1954,may,
nate by operation of law if the lessee fails slons of this section. at any time prior to the anniversary date
to pay the rental on or before the an- (2) The burden of showing that the of such lease and the accrual of rental,
niversary date of such lease.However,if failure to pay on or before the anniver- elect to subject his lease to the automatic
the time for payment falls upon any day sary date was justifiable or not due to termination provisions of this section by
in which the proper office to receive pay- lack of reasonable diligence will be on notifying,in writing,the manager of the
meat is not open, payment received on the lessee.Reasonable diligence normally appropriate land office to that effect.
the next official working day shall be requires sending or delivering payments §3108.3 Judicial proceedings.
deemed to be timely. The termination of sufficiently in advance of the anniversary
the lease for failure to pay the rental date to account for normal delays in the Leases known to contain valuable
must be noted on the official records of collection, transmittal, and delivery cf deposits of oil or gas may be cancelled
the appropriate land office. Upon such the payment.The authorized officer may only by judicial proceedings in the man-
notation the lands included in such lease require evidence, such as post office re- ner provided in sections 27 and 31 of the
will become subject to the filing of new ceipts, of the time of sending or delivery act.
lease offers only as provided for in Sub- of payments.
part 3112. (3) Under no conditions will a terms-
(i ) Exceptions. If the rental payment nated lease be reinstated if (i) a valid
due under a lease is paid on or before its oil and gas lease has been issued prior Subpart 3109—Surface Management
anniversary date but either the amount to the filing of petition for reinstatement Requirements
of the payment has been or is hereafter affecting any of the lands covered by
deficient and the deficiency Is nominal as that terminated lease,or (ii) the Federal §3109.1 General.
defined in this section, or the amount of oil and gas interests in the lands have §3109.1-1 Surface, natural resources,
payment made was determined in ac- been withdrawn or disposed of, or have and improvements.
cordance with the rental or acreage figure otherwise become unavailable for oil and §3109.1-2 Antiquities and objects of
stated in the lease or stated in a bill or gas leasing; however, the authorized of- historical value.
decision rendered by an authorized officer ficer will not issue a new lease for lands §3109.2 Public domain.
and such figure is found to be in error covered by a lease which terminates au-
resulting in a deficiency,such lease shall tomaticaily until 90 days from the date §3109.2-1 Bureau of Land ManagemenieTh'
not have automatically terminated tin- of termination. stipulations.
less (1) a new lease had been issued (4) Reinstatement of terminated The Bureau of Land Management may
prior to May 12, 1970, or (2) the lessee leases is discretionary with the Secretary. require such special stipulations as are
18
necessary for the protection of the lands to such conditions and stipulations as thereafter as oil or gas is produced in
embraced in any permit or lease. that official may prescribe to insure paying quantities.
(See Montana Power Decision A 30310 adequate utilization and protection of (a) Special acts—(1) Rights-of-way.
PTh December 3, 1965, I.M. the lands for the primary national The term of the lease will be for a period
No. 65-560 De-
forest purpose for which they are being of not more than 20 years and the com-
cember 23,1965) administered. pensatory royalty agreement will be for
$3109.3 Acquired lands. (e) Lake Mead recreation area. the period necessary to reasonably ex-
(f) National Forest Wilderness.(1) All tract all oil and gas from the right-of-
§ Leasea or permits may en issued only mineral leases, licenses, and permits way.
covering lands within National Forest §3110.1-2 Dating of leases.
with the consent of the head or other Wilderness,issued on or after September
appropriate official of the executive de- 3, 1964, shall contain such stipulations noncompetitive oil and gas leases,
partment, independent establishment or as may be prescribed by the Secretary of excepting renewal leases, will be dated
follow-
instrumentality having jurisdiction over Agriculture pursuant to section 4(d)(3) as of the first day of the month the lands containing the deposits, oringhalf the date the leases p are signed where or
holding a mortgage or deed of trust of the Wilderness Act for the protection lands of the nest except that may prior
of the wilderness character e the lands written request 1s made a lease be
secured bydi such lands, and subject toe- consistent with the use of the lands for dated the first of the month within which
such conditions as that official may Pre- the purposes for which they are leased, it is so signed.
scribe to insure adequate utilization of licensed, or permitted. In addition to
the lands for the primary purpose for containing such stipulations as may be §3110.1-3 Acreage limitation.
which they were acquired or are being prescribed by the Secretary of Agricul- (a) Public domain. An offer may be
administered. ture,any mineral lease,license,or permit made by a legal guardian or trustee in
§3109.4 Reserved,withdrawn,or segre• covering lands within National Forest his name for the benefit of a nonalien
gated lands. Wilderness shall contain a provision that minor or minors but an offer may not be
§3109.4-1 Requirements, it is issued subject to the provisions of filed by a minor.An offer may not include
With respect to lands embraced in s the Wilderness Act and the regulations more than 2,560 acres except where the
or for any par- issued thereunder. rule of approximation applies.The lands
r reservation purpore segregated twe lessee r conduct (2) All persons seeking or holding a in the offer must be entirely within an
operations In with such re- mineral lease,license,or permit covering area of 6 miles square or within an area
quirements ea a may conformityb made by the re- lands within National Forest Wilderness, not exceeding six surveyed sections in
issued on or after September 3, 1964,. length or width. No offer may be made
rasa of Land Management for the pro- should make inquiry of the officer in for less than 640 acres except where the
tection and use of the land for the charge of the National Forest in which offer is accompanied by a showing that
purpose for which it was reserved or the lands are located concerning the lip- the lands are in an approved unit or
segregated, so far as may be consistent plicable regulations of the Secretary of cooperative plan of operation or such a
with the use of the land for the purpose Agriculture. plan which has been approved as to form
of the lease. which latter shall be re- by the Director of the Geological Survey,
na-
carded as the dominant use unless other- (g) recreation arWhiskeytowntShasta-Trinity per-wfse provided or separately stipulated. tional recreation area.Any lease or or where the land is surrounded by lands
mit respecting minerals in lands ad-
,----.5 not available for leasing under the act.
3109.4-2 Special stipulations. ministered by the Secretary of Agricul- (b) Acquired lands. An offer may not
1 Offerors for noncompetitive oil and gas Lure shall be issued only,with his consent include more than 2,560 acres except
leases and applicants for permits,leases, and subject to such conditions as he may where the rule of approximation applies.
That portion of §3110.1-3(a) providing
and licenses for lands, the surface con- Prescribe.
that an offer may not be made for
trol of winch is under the jurisdiction of PART 3110—NONCOMPETITIVE less
ac-
the Department of Agriculture, will be LEASES than 640 acres
lease offers.
a asses is not applicable to required to consent to the inclusion quired lands
therein of the stipulation on a form ap- Subpart 3110—Noncompetitive Leases
proved by the Director. Where the B_.". $3110.1-4 Withwdrawal of offer.
lands have been withdrawn for reclama- 3110.1-1 Duration of lease. (a) Regular filings. An offer may not
8110.1-2 Dating of leases, be withdrawn,either in whole or in part,
lion purposes the offeror or applicant will 8110.1-3 Acreage limitation. unless the withdrawal is received by the
be required to consent to the inclusion 8110.1-4 withdrawal of offer.
of a stipulation on the approved forms. 3110.1-5 Amendment to lease. land office before the lease, an amend-
If the land is potentially irrigable, or if 3110.1-8 Determination of priorities. ment of the lease, or a separate lease,
the land Is within the flow limits of a 3110.1-7 Land description. whichever covers the land described in
reservoir site or within the drainage area 3110.1-8 Rejection. the withdrawal, has been signed on be-
of a constructed reservoir, or if with- Subpart 3111—Regular Offers half of the United States.
drawn for power purposes,or where the 3111.1 Requirements. (b) Simultaneous filings.An applicant
lands have been withdrawn as Game 3111.1-1 Public domain. may withdraw his simultaneous offer
Range Lands, Coordination Lands, or 8111.1-2 Acquired lands. drawing card prior to the drawing.
Alaska Wildlife Areas, the offeror or ap- 5111.1-3 Special acts. §3110.1-5 Amendment to lease.
plicant will be required to consent to the Subpart 3112—Simultaneous Offers If any of the land described in
inclusion of a stipulation on an approved
form. Additional conditions may be im- 8112.1.4 Availability of lands. Item 2 of the offer is open to oil and
land withdrawn i1 8112.1-2 Posting of notice. gas filing when the offer is filed but is
posed to protect the
deemed necessary by the agency having 8112.2 Roane. omitted from the lease for any reason
6112.2-1 Offer to lease and thereafter becomes available for
jurisdiction over the surface. 5112.3 Qualifications. leasing to the offeror, the original lease
§3109.5 Special acts. 3112.3-1 Compliance with subpart 8102 is will be amended to include the omitted
required.§3109.5-1 Requirements, 8112.4 Approval. land unless, before the issuance of the
§3109.5-2 Special stipulations. 8112.4-1 Rental payment amendment, the land office receives a
(a) Rights-of-way. 8112.5 Rejection. withdrawal of the offer with respect to
8112.5-1 Unqualified offeror. such land or an election to receive a
(b) Nevada. 3112.5-2 Multiple clings. separate lease in lieu of an amendment.
(c) Lands patented to the State of Such election shall consist of a signed
California. Subpart 3110—Noncompetitive
statement by the offeror asking for a
—
(d) National forest lands in Minna- separate lease accompanied by a new
/r sota. Leases or permits under the act of Leases offer on the required form describing
June 30, 1950, may be issued only with § 3110.1-1 Duration of lease. the remaining lands in his original offer,
the prior consent of the Secretary of All noncompetitive leases shall be for executed pursuant to this section. The
Agriculture or his delegate, and subject a primary term of 10 years and so long new offer will have the same priority as
19
the old offer. It need not be accom- copies of the official form,or valid repro- lands described therein.If public domain
panied by the filing fee. The rental pay- duction thereof, for each offer to lease lands or minerals are also included the
ment held on the original offer will be shall be fined in the proper land office (see application or offer will be rejected as
applied to the new offer. The rental and §3000.5 of this chapter).For the purpose to such lands or minerals.
r''''‘
the lease term for the land added by of this part an offer will be considered (4) Rejection. Except as provided in }
such an amendment shall be the same filed when it is received in the proper subpart 3112 an offer which is not filed
as if the land had been included in the office during business hours. in accordance with the applicable regu-
original lease when it was issued. If a (b) Qualifications. Compliance with lations in subpart 3110 or this part will
separate lease Is issued, it a ill be dated subpart 3102 is required. be rejected and will afford the applicant
in accordance with§3110.1-2. Cc) Approval. The United States will
3110.1-6 Determination of no priority.
§ priorities. indicate its acceptance of the lease offer, (5) Surface mrisd on^ Showing icti (i)
<a) Regular filing. No lease shall be in whole or in part, and the issuance of required. All applications and offers for
issued before final action has been taken the lease by the signature of the ap-
on (a) any prior offer to lease the land, propriate officer thereof in the space permits or leases should name, if prac-
provided. An executed copy of the lease Citable, the Government agency from
(b) any subsequent offer to lease the land which consent to the Issuance of a per-
will be mailed to the offeror at the ad-
that is based upon an alleged preferential dress of record. mit or lease must be obtained, or the
right and (c) any petition for the re- (d) Rejection. Except as provided in agency that may have title records coy-
newel or reinstatement of an existing or this section an offer which is not filed ering the ownership of the mineral in-
former lease on the land. If a lease is in accordance with the regulations in this terest involved,and identify the project,
issued before final action has been taken 1f any,of which the land is a part. Per-
on such an offer or petition, it shall be part will be rejected and will afford the mits or leases to which such consent is
canceled, after due notice to the lessee, offeror no priority necessary will not be issued until the
if the offeror or petitioner is found to be (e) Curable defects. An offer to lease lessee or permittee executes such stipu-
qualified and entitled to receive a lease containing any of the following deflcien- lations as may be required by the con-
on the land. Offers to lease which cover cies will be approved by the signing offi- renting agency.
lands subject to regular filings and cer provided all other requirements are 4(11) Transfer of surface control.Where
which are received in the same mail or met: the United States has conveyed the
over the counter at the same time, will (1) An offer deficient in the first year's title to, or otherwise transferred the
be considered as having been flied simul- rental by not more than 10 percent. The control of the surface of the lands
taneously and priority to the extent of additional rental must be paid within 30 containing the deposits to any State
the conflicts between them will be deter- days from notice under penalty of can- or any political subdivision, agency
mined by a public drawing. cellatlon of the lease. or instrumentality thereof, or a college
(b) Simultaneous filings.If more than (2) An offer covering not more than or any other educational corporation,
one offer to lease all or any part of the 10 percent over the maximum allowable or association, or a charitable or rell-
acreage covered by an expired,canceled, acreage of 2,560 acres. The lease will be gious corporation or association, s1 h
relinquished, or terminated lease is filed approved for 2,560 acres in the discretion party shall be given written notif[4s-
during the period provided for in sub- of the signing officer or so much over ;ion by ma
il ail of the ao�lication
part 3112, their priorities will be deter- that amount as may be included under for the _permit or lease, and Mall be
mined by a public drawing. the rule of approxima .on. afforded- a reasonable period of time
§3110.1-7 Land description. (3) An offer completed in pencil or Tam whit y stipulations-'
(a) Variation in land description. If script. deemed by It be�s anry for the pro- ,
(4) An offer on a lease form not cur- tection of existing surface improvements
there is any variation in the land de- rently in use. or uses-to ue zncivaea in the permit or
scriptions among the five copies of the (5) An offer on a form not correctly lease, setting forth the facts supporting
official forms,the copy showing the date reproduced provided It contains the the necessttyznef'eor,and al-ao_to 81e any
and time of receipt in the land office statement that the offeror agrees to be o ec ons may
will control. bound by the terms and conditions of the tieiiAJ• Where such party opposes the
§3110.1-8 Rejections. lease form in effect at the date of filing. issuance of the permit or lease,the facts
/3111.1-2 .lequired lends. submitted in support must be carefully
If, after the filing of an offer for considered and each case separately de-
a noncompetitive lease and before the (a) Application—(1)Forms.Except as cided on its merits. However, such op-
issuance of a lease pursuant to that offer, Provided in subpart 3112, to obtain a position affords no legal basis or au-
the land embraced in the offer becomes noncompetitive oil and gas lease of an thority to refuse to issue the permit or
within a known geological structure of existing mineral interest whether the lease for the reserved minerals in the
a producing oil or gas field,the offer will Government's interest be whole or frac- lands: in such case,the final determine-
be rejected and will afford the offeror no tional, an offer to lease must be made on tion whether to issue the permit or lease
priority. a form approved by the Director, "Offer depends upon whether the interests of
Subpart 3111—Re 1—Regular Offers to Lease and Lease for Oil and Gas; the United States would best be served
P 9Noncompetitive Acquired Lands" or thereby.
§3111.1 Requirements. unofficial copies of that form in cur- (8) Acreage holdings. Each offer or
§3111.1-1 Public domain. rent use: Provided, That the copies are application for a lease or permit must
exact reproductions of one page of both contain a statement that applicant's in-
(a) Application—(1) Forms.Except as sides of the official approved one-page terest, direct or indirect, in leases, per-
provided in subpart 3112,to obtain a non- form and are without additions, orris- mits,or applications for similar minerals
competitive lease an offer to accept such sfons, or other changes or advertising. does not exceed the maximum charge-
lease must be made on a form approved An official form approved by the DI- able acreage permitted to be held for that
by the Director,"Offer to lease and lease rector, or a valid reproduction, will also mineral in federally owned acquired
for oil and gas,"or on unofficial copies of constitute the lease, when signed by the lands in the same State.
that form in current use:Provided,That authorized signing officer of the Bureau (7) Other regulations applicable. Ex-
the copies are exact reproductions of of Land Management. Seven copies of cent as otherwise specifically provided in
one page of both sides of the official ap- the official form, or valid reproduction this part the regulations prescribed
proved one page form and are without thereof, for each offer to lease shall be under the mineral leasing laws,and con-
additions, omissions or other changes filed In the proper land office (see tained in subpart 3110 and 4 3111.1 shall
or advertising. The official form or a 4 3000.5). For the purposes of this part govern the disposal and development of
valid reproduction of the official form an offer will be considered filed when it is minerals under the act.
will also constitute the lease when signed received in the proper office during
by the Manager of the Land Office.Each business hours. §3111.1-3 Special acts. tr.\
offer must be tilled in by typewriter or (2) Qualifications. Compliance with (a) Rights-of-way—(1) Application.
printed plainly in ink and signed in ink subpart 3102 is required. No particular form of application for
by the offeror or the offeror's duly au- (3) Approval.Such application or offer lease of land in a right-of-way will be
thorized attorney-in-fact or agent. Five will be considered only as to the acquired required. Applications shall be filed in
20
Director, with such changes in language
the appropriate land office. Such appli- (5) Royalty charge. The royalty to
/"cations must be filed by the owner of the be charged will be fixed by the Bureau as may be required.
:fight-of-way or by his assignee and be of Land Management, alter considers- (5) Operating regulations. All lessees
accompanied by a filing fee of $10, and, tion of all the facts and circumstances in will be required to operate under the
if filed by an assignee,by a duly executed each case, but will not be less than 121 applicable operating regulations of this
assignment of the right to lease. The Percent. Department. The operating regulations
application should detail the facts as to (6) Duration. The term of the lease are contained in 30 CFR Chapter II
the ownership of the right-of-way, and will be for a period of not more than Part 221.
of the assignment if the application is 20 years, and the compensatory royalty (d) National forest lands in Minne-
filed by an assignee; the development of agreement will be for the period neces- sota—(1) Minerals to be leased. All
oil and gas in adjacent or nearby lands, sary to reasonably extract all oil and gas disposal of mineral resources covered by
the location and depth of the wells, the from the right-of-way this regulation shall be by lease or
production,and the probability of drain- (b) Nevada—(1) Applicability of reg- permit.
age of the deposits in the right-of-way. illations. Deposits of oil and gas within (2) Consent of Secretary of Agricul-
Since rights-of-way are of record in the the lands shall be subject to disposal ture.Leases or permits under the act of
Bureau of Land Management,a descrip- Pursuant to the applicable regulations June 30, 1950, may be issued only with
lion by metes and bounds Is not neces- issued under the Act of February 25. the prior consent of the Secretary of
sari or required, but each legal subdivi- 1920 (41 Stat.437) as amended. Agriculture or his delegate, and sub-
don through which the portion of the (c) Lands patented to the State of Jett to such conditions and stipulations
right-of-way desired to be leased extends Calif ornia—(1)Minerals to be leased.All as that official may prescribe to insure
should be described. disposal of minerals within the reserved adequate utilization and protection of
(2) Compensatory royalty. After the areas covered by this section shall be the lands for the primary national forest
Bureau of Land Management has deter- by lease. purpose for which they are being ad-
mined that a lease of a right-of-way or (2) Applicability of other regulations. ministered.
any portion thereof is consistent with The regulations contained in subparts (3) Regulations applicable. See sub-
the public interest, either upon consid- 3110 and 3111 to the extent that they are parts 3110 and 3111. Any lease issued.
eration of an application for lease or on applicable and not inconsistent with this under this subpart shall state that it is
his own motion,the manager of the land section shah govern oil and gas leases subject to the terms and provisions of
office will serve notice on the owner or issued under this section. the act of June 30,1950.
lessee of the adjoining lands,as provided (3) Notice of application. The Man- (e) Lake Mead Recreation Area—(1)
in section 3 of the act of May 21, 1930 ager of the Land Office will notify the Authority to lease.The Act of October 8,
(46 Stat. 374; 30 U.S.C. 303), allowing surface owner or his authorized repre- 1964 (78 Stat. 1039; 16 U.S.C.460n) pro
him 30 days or such other time as may sentative of each application received. vides for mineral leasing within the Lake
be provided in the notice within which Notice of any proposed offer of lands for Mead Recreation Area, subject to such
to submit an offer or bid of the amount lease will also be given to the surface limitations,conditions, or regulations as
or percentage of compensatory royalty owner prior to publication thereof. the Secretary may prescribe,and to such
such owner or lessee will agree to pay Should the surface owner object to the extent as will not be inconsistent with.
for the extraction through wells on his leasing of any tract for reasons deter- either the recreational use or the pri-
riijoining land of the oil and gas under mined by the authorized officer to be mary use of that portion of the area
nd from such right-of-way. Notice to satisfactory the application will be re- heretofore withdrawn for reclamation
he owner of the right-of-way will be jetted or the offer of the land for lease purposes.
given at the same time allowing him will be withheld. (2) Regulations applicable. Mineral
opportunity within the same period to (4) Terms and conditions—(1) Pro- deposits of oil and gas shall be governed.
submit a bid or offer as to the amount tection of surface. All leases issued by regulations issued under the Act of
or percentage of royalty he will pay if a shall be conditioned upon compliance February 25,1920 (41 Stat.437; 30 U.S.C.
lease is awarded to him. by the lessee with all of the laws 181),as amended.
(3) Award of or or rules and regulations of the surface (3) Area subject to lease. The area
royalty agreement.of lease ord compensatory of lepee to thy owner for the safeguarding and protec- subject to the regulations in this part
tion of the plant life,scenic features and is that area of land and water which.
owner of the right-of-way, or of a con- park or recreational improvements on is shown on a certain map identified as
tract for the payment of compensatory the land,not inconsistent with the terms "boundary map,RA-LM-7060-B,revised
royalty by the owner or lessee of the of the lease or this section. The lease July 17, 1963,"which is on file and which
adjoining lands, will be made to the shall also provide that any mining work is available for public inspection in the
bidder whose offer is determined to be performed upon the lease shall be lo- office of the Director of the National
to the best advantage to the United sated consistent with any requirements Park Service and in the headquarters of-
States,considering the amount of royalty of the owner of the surface necessary flee of the Superintendent of the Lake
to be received and the better develop- to the protection of the surface rights Mead National Recreation Area. The
ment of the oil and gas deposits in the and uses and so conducted as to result area subject to these regulations may
right-of-way under the respective means in the least possible injury to plant life, be revised by the Secretary as authorized.
of production and operation. scenic features and improvements and in the act.
(4) Forms—(1) Compensatory royalty that,upon completion of the mining op- (4) Excepted areas. Mineral deposits
agreement. The agreement with the eration, all excavations, including wells, and materials in the following areas shall
owner or lessee of the adjoining land to shall be closed and the property be con- not be open to disposal under the pro-
pay compensatory royalty for the extras- ditioned for abandonment to the satin- visions of this part:
tion through wells on his adjoining land faction of the surface owner. The lease (i) All lands within 200 feet of the
of the oil and gas in or under the-right- shall further provide that any use of center line of any public road, or within
of-way will be on a form approved by the the lands for ingress to and egress from 200 feet of any public utility including,
Director. the mine for all necessary purposes shall but not limited to, electric transmission
(Ii) Lease. The lease Issued to the be on a route to be first approved by the lines, telephone lines, pipe lines, and
owner of the right-of-way or assignee surface owner or his duly authorized railroads.
of such owner will be on a form approved representative. (ii) All land within the smallest legal
by the Director, modified to conform to (ii) Bonds.Each lessee will be required subdivision of the public land surveys
the requirements of the law and these to furnish a bond in such sum as may be containing a spring or water hole, or
regulations. determined adequate,in no case less than within one-quarter of a mile thereof on
—c (iii) Bond. The bond required under 61,000. to insure compliance with the unsurveyed public land.
fiction 2(a) of the lease and by the con- terms of the lease and for the protection (iii) All land within 300 feet of Lake
.rector under agreement to pay com- of the surface owner. Mead or Lake Mohave, measured hori-
pensatory royalty, should be on a form (iii) Form of lease.Oil and gas leases zontally from the shore line at maximum'
approved by the Director. will be issued on forms approved by the water surface elevation and all lands
21
termination of such lease and only in
within the area of supervision of the accordance with the provisions of this §3112.3 Qualifications.
Bureau of Reclamation around Hoover section. All lands covered by leases
and Davis Dams as shown on the map of which expire by operation of law at the §3112.3-1 Compliance with subpart
end of their primary or extended terms 3102 is required.
the Lake Mead Natonal Recreation shall likewise be subject to the filing of 3112.4 Approval.(NRA—LM.2291). $ ,-,3
(iv) All land within any developed new lease offers only in accordance with By signing and submitting the entry
and/or concentrated public use area or the provisions of this section except that card, the applicant agrees that he will
other area of outstanding recreation notation of such expiration of the leases be bound to a lease on a current form ap-
significance es designated by the Super- need not be made on the official records. proved by the Director for the described
intendent on the map (NRA—L.M. (b) If no offers to lease all or any por-
2297), of Lake Mead National Recrea- tion of the lands in the expired, can- Parcel if such a lease is issued to him
tion Area which will be available for celed, relinquished or terminated leases as a result of the drawing.
inspection in the office of the Superin- are received during the period provided §3112.4-1 Rental payment.
tendent. for in g 3112.1-2, the lands for which no A lease will be issued to the first
(f) National Forest Wilderness—(1) offers are received will thereafter become drawee qualified to receive a lease upon
Applicability of laws and regulations, subject to lease in accordance with regu- payment of the first year's rental.Rental
Until midnight, December 31, 1983, all lations in this part. must be received in the proper office of
laws pertaining to mineral leasing and §3112.1-2 Posting of notice. the Bureau of Land Management within
the regulations of this chapter pertain- On the third Monday of each fifteen (15) days from the date of re-
ing thereto effective during such period, month, or the first working day there-
The of notice that such payment is due.
shall, to the same extent as applicable after, if the land office is not officially The drawee failing to submit the rental
before September 3, 1964, extend to open on the third Monday, there will be payment within the time allowed will be
National Forest Wilderness, subject to posted on the bulletin board in each land automatically disqualified to receive the
the provisions of such regulations as lease, and consideration will be given to
a
may be prescribed by the Secretary of office list of the lands in leases which the entry of the drawee having the next
Agriculture pursuant to section 4(d)(3) expired, were canceled, were relin- highest priority in the drawing.
of the Wilderness Act. quished in whole or in part, or which §3112.5-1 Unqualified offeror.
(2) Stipulations required. All mineral terminated, together with a notice stat-
q ing that such lands will become subject If the successful drawees for a partic-
leases, licenses, and permits covering to the simultaneous filings of lease offers, win' leasing unit are unqualified to re-
lands within National Forest Wilderness, from the time of such posting until 10 celve the lease for any reason, including
issued on or after September 3, 1964, a.m. on the fifth working day thereafter,
timely payment of the first year's rental,
shall contain such stipulations as may The posted list will describe the lands by the lands in the numbered leasing unit
be prescribed by the Secretary of Agri- leasing units identified by parcel num- shall be included in a subsequent list of
culture pursuant to section 4(d)(3) of bers, which will be supplemented by a lands available for filing under the si-
the Wilderness Act for the protection of description of the lands in accordance multaneous drawing procedure.
the wilderness character of the lands with g 3101.1-4, by subdivision, section,
consistent with the use of the lands for township and range if the lands are
the purposes for which they are leased, surveyed or officially protracted,or if un-
licensed, or permitted. In addition to
containing such stipulations as may be surveyed, by metes and bounds.
prescribed by the Secretary of Agricul- §3112.2 Forms. §3112.5-2 Multiple filings.
ture,any mineral lease,license,or permit §3112.2-1 Offer to lease. When any person, association, cor`"
covering lands within National Forest poration, or other entity or business
Wilderness shall contain a provision that (a) Entry Card. Offers to lease such enterprise files an offer to lease for in-
it is issued subject to the provisions of designated leasing units by parcel num- elusion in a drawing, and an offer (or
the Wilderness Act and the regulations bers must be submitted on a form ap- offers) to lease is filed for the same lands
Issued thereunder. proved by the Director, "Simultaneous in the same drawing by any person or
(3) Applicable regulations of Secre- Oil and Gas Entry Card"signed and fully party acting for, on behalf of,or in col-
tary of Agriculture. All persons seeking executed by the applicant or his duly lusion with the other person,association,
or holding a mineral lease, license, or authorized agent in his behalf.The entry corporation, entity or business enter-
permit covering lands within National card will constitute the applicant's offer prise, under any agreement, scheme, or
Forest Wilderness, issued on or after to lease the numbered leasing unit by plan which would give either, or both, a
September 3, 1964, should make inquiry participating in the drawing to deter- greater probability of successfully ob-
of the officer in charge of the National mine the successful drawee. tabling a lease, or interest therein, in
Forest in which the lands are located (1) The entry card must be accom- any public drawing, held pursuant to
concerning the applicable regulations of panned by a remittance covering the 111- g 3110.1-6(b), all offers filed by either
the Secretary of Agriculture. ing fee of$10.The filing fee may be paid party will be rejected. Similarly, where
(4) Withdrawal from mineral leasing, in cash or by money order, bank draft, an agent or broker files an offer to lease
Effective at midnight, December 31, bank cashier's check or check, for the same lands in behalf of more than
1983, subject to valid rights then exist- (2) Only one complete leasing unit, one offeror under an agreement that, if
ing, the minerals in lands within Na- identified by parcel number, may be in- a lease issues to any of such offerors,the
tonal Forest Wilderness are withdrawn eluded in one entry card. Lands not on agent or broker will participate in any
from leasing by virtue of the provisions the posted list may not be included. An proceeds derived from such lease, the
of section 4(d)(3) of the Wilderness Act. offeror (applicant) is permitted to file agent or broker obtains thereby a greater
(g) Whiskeytown-Shasta-Trinity Na- only one offer to lease (entry card) for probability of success in obtaining a
tinned Recreation Area. Applicability of each numbered parcel on the posted list. share in the proceeds of the lease and
regulations. Mineral deposits of oil and Submission of more than one entry card all such offers filed by such agent or
gas shall be governed by the Act of by or an behalf of the offeror for any broker will also be rejected. Should any
February 25,1920(41 Stat.437; 30 U.S.C. parcel on the posted list will result in such offer be given a priority as a result
181-263),as amended. the disqualification of all the offers sub- of such a drawing, it will be similarly
Subpart 3112—Simultaneous Offers ranted by that applicant for that par- rejected. In the event a lease is issued
on the basis of any such offer,action will
3112.1-1 Availability of ticular parcel.
§ lands. (3) Three entry earth will be drawn be taken for the cancellation of all fn-
(a) Lands in canceled or relinquished for each numbered leasing unit,and the terests in said lease held by each person
leases or in leases which terminate by order in which they are drawn will fix who acquired any interest therein as a
operation of law for non-payment of the order in which the successful result of collusive filing unless the rights
rental pursuant to 30 U.S.C. sec. 188, drawee will be determined. Where less of a bona fide purchaser as provided for
which are not withdrawn from leasing than three entry cards have been filed, in g 3102.1-2 intervene,whether the per-/,I
nor on a known geological structure of all cards will be drawn to determine tinent information regarding it is ob-
a producing oil and gas field shall be priority. Wined by or was available to the Gov-
subject to the filing of new lease offers (4) Unsuccessful drawees will be notl- ernment before or after the lease was
only after notation on the official record fled by the return of their respective issued.
of the cancellation, relinquishment, or entry cards.
22
PART 3120—COMPETITIVE LEASES notice of sale will be by publication once PART 3130—FRACTIONAL OR FU-
a week for five consecutive weeks, or for TURE INTEREST LEASES AND PER-
Subpart 3120—Competitive Leases such other period as may be deemed ad- MITS
See. visable,in a newspaper of general clrcu-
�. 3120.1 Terms. lation in the county in which the lands Subpart 3130—Fractional or Future
3120.1-1 Duration of lease. or deposits are situated, or in such other Interest Leases and Permits
3120.1-2 Dating of lease. publications as the authorized officer of
3120.1-3 Acreage limitation. the Bureau of Land Management may see.
3120.1-4 Qualifications. authorize. 91311 Competitive and noncompetitive.
3120.2 Notice of lease sale. 313J.2 Rental and royalties.
3120.2-I Initiation of offer. §3120.2-3 Contents of notice. 3130.3 Public domain.
3120.2-2 Publication of notice. The notice published in a newspaper 3130.3-1 Fractional interest offers.
9 Contents of notice. 3130.4 Acquired,lands.
9120.2
3120.3 Approval. of general circulation in the county will 3130.4-1 General statement.
3120.3-1 Award of lease. contain a statement that the successful 3130.4-2 Consent of agency and stipule-
3120.3-2 Compliance with award notice. bidder will be required,prior to the issu- tons required.
3120.4 Refection. ance of a lease to pay his proportionate 9130.4-3 Forms.
3120.4-1 Failure to comply with award share of the total cost of publication of 3130.4-4 Fractional present interests.
notice. that notice which shall be that portion 3130.4-5 Future and fractional interest
3120.4-2 Deposits on rejected bids, of the total advertising cost that the offers.
§3120.1 Terms. number of parcels of land awarded t0 §3130.1 Competitive and noncompeti-
him bears to the number of parcels for live.
§3120.1-1 Duration of lease. which high bidders are declared. The Competitive and noncompetitive oil
All competitive leases shall be for a notice will also state the time and place and gas leases for lands in which the
primary term of 5 years and so long of sale,the manner in which bids may be United States owns an undivided frac-
thereafter as oil or gas is produced in submitted, the description of the lands,. tional oil and gas interest may be is-
paying quantities. and the terms and conditions of the sale. sued pursuant to the regulations in this
§3120.1-2 Dating of leases. §3120.3 Approval. part and subpart 3120.
All competitive oil and gas leases, ex- §3120.3-1 Award of lease. §3130.2 Rental and royalties.
cepting renewal leases, will be dated as Rentals, minimum ro
yalties and
the date the leases are signed on behalf auction, or the opening of the sealed royalties payable for lands in which the
of the lessor except that where prior bids, the authorized officer, subject to United States owns an undivided frac-
written request is made, a lease may be his right to reject any or all bids, will tional interest shall be in the same pro-
dated the first of the month within award the lease to the successful bidder. portion to the rentals, minimum royal-
which It is so signed. Notice of his action will be forthwith ties and royalties provided in subpart
§3120.1-3 Acreage limitation. transmitted to the interested parties 3103 as the undivided fractional interest
through the local office. of the United States in the oil and gas
(a) Maximum lease size. The lands underlying the leased lands is to the full
and deposits subject to disposition under mineral interest.
the act which are within the known
geologic structure of a producing oil or §3130.3 Public domain.
f^', gas field Will 'be divided into leasing §3130.3-1 Fractional interest offers.
blocks or tracts in units of not exceeding
040 acres each,which shall be as nearly (a) Application. An offer for a frae-
compact in form as possible. tional interest noncompetitive oil and gas
(b) Consolidation of units. If two or lease must be filed on a form approved
more units are awarded to any bidder, by the Director in accordance with sub-
such units where the acreage does not §3120.3-2 Compliance with award no- Part 3111.The offer must be accompanied
exceed 640 acres, may be included in a tire• by a statment showing the extent of
single lease if circumstances warrant. If the lease be awarded, three copies the offeror's ownership of the operating
of the lease on a forma notrig owned to the fractional mineral interest§3120.1-4 Qualifications. Director, with rental andp royalty arch the not t covered by the the States in each
Or-
(a) Compliance with subpart 3102 is tiles made a part thereof, will be sent dtharti tract by offer to lease.required.—(1) Statement required.Each the successful bidder and he will be y' the issuance of a noncompeti-
bidder must submit with his bid a state- to fractional uc oil andurn gas would
ment over the bidder's own signature required not later than the 15th day to one who, upon such issuance, would
with respect to citizenship and interests after his receipt thereof,or the 30th day own less than 50 percent of the operat-
held. If the successful bidder is a cor- after the date of the sale, whichever is ing rights in any such tract, will not be
poration, it must also file a statement later to execute them,pay the balance regarded as in the public interest,and an
similar to that required by 4 3102.4-1. of his bonus bid, the first year's rental offer leading to such result will be
(b) Deposit required. The successful and file a bond as required in subpart rejected.
bidder at a sale by public auction must 3104.If the lease awarded to the success- §3130.4 Acquired lands.
on the day of the sale, deposit with the ful bidder is executed by an attorney
Manager of the Land Office or other ME- acting in behalf of the bidder, the lease §3130.4-1 General statement.
ter conducting the sale,and each bidder, must be accompanied by evidence that Subject to the provisions of section 3 of
if the sale is by sealed bids,must submit the bidder authorized the'attorney to the Act,noncompetitive leases for future
with his bid the following: Certified execute the lease, or fractional interests in lands believed,
check on a solvent bank,money order,or §3120.4 Rejection but not known to contain mineral de-
chimosits may be issued whenever the p ash, for one-fifth of the amount bid by §3120.4-1 Failure to comply with interest will be best served thereby uAp-
' award notice. plications and requests to have leases
§3120.2 Notice of lease sale. If a bidder, after being awarded a offered competitively for lands known to
§3120.2-1 Initiation of offer. lease, falls to execute it or otherwise contain mineral deposits should, to the
§3120.2-2 Publication of notice. comply with the applicable regulations, extent possible, conform to and include
his deposit will be forfeited and dis- the information required by Ii 3101.2-3,
Notice of the offer of lands for lease posed of as other receipts under this 3111.1-2 and this section.The terms and
at a royalty and rental to be specified act. conditions of competitive leases for fu-
in r� the notice of sale, to the qualified §3120.4-2 Deposits on rejected bids. ture or fractional interests in oil and
person who offers the highest bonus bygas deposits within the known geological
competitive bidding either at public auc- If any bid be rejected, the deposit will structure of a producing oil or gas field,
tion, or by sealed bids as provided in the be returned. and of compensatory royalty agreements
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under § 3100.3-1 covering future or that time will automatically lapse auu Such agreement will be effective as of
fractional interests, will be established thereafter only offers for a present in- the date the lease issues. Such agree-
on an individual case basis. terest lease will be considered. There is ment will govern the relationship of
§3130.4-2 Consent of agency and slips no required form for an application or the applicant and the United States be-?'
ula[tons regained, offer to lease a whole or fractional fu- tween its effective date and the respec-
applications and for permits tore interest. The application or offer tive dates when the lease becomes effec-
All or leases should name, offers practicable,forermits therefor should, however, to the extent tive as to each future interest, as set
Government agency from which consent applicable, conform to and include the forth in the lease. Where the United
to the issuance of a lease must be ob- information required by §§ 3101.2-3, States owns both a fractional interest
tained, or may 3111.1-2, and this section, and must be and a fractional future interest in the
title ,records the agency gng thethat ownership yhave of accompanied by a certified abstract of minerals in the same tract, the supple-
title mineral interest ver theved, and ipe f title containing record evidence of the mental agreement will cover only the
the the mineral
t if any, oof which d land creation of, and offeror's right to, the fractional future interest in that tract.
is a part.Leases to which such consent is claimed mineral interest. If the of- The lease when issued shall cover both
necessary will not be issued until lessee feror acquired the operating rights un- the present and future interests in the
executes such stipulations as may be re- der a lease or contract, the offer shall land and shall be effective for the pres-
execu by the consenting agency. also be accompanied by three copies of ent interest held by the United States as
quired§3130.4-3 Forms. such lease or contract. In lieu of an ab- of the date for which the lease issues.
street, a certificate of title may be fur- In such cases and also in ail cases where
All oil and gas leases for existing In- nished. A future interest offer may In- the United States owns only part of the
terest on acquired lands whether the dude tracts in which the United States future mineral interest the percentage
Government's interest be full or frac- owns a fractional present interest as well of royalty specified in the supplemental
tional shall be issued on a form approved as the future interest for which a lease agreement shall apply to the fractional
by the Director. Leases of future inter- is sought,but it shall not include tracts future interest in that proportion. In
est and fractional future interest shall where the United States owns the entire lieu of a provision in the agreement for
be issued on a form approved by the mineral interest at the time the offer is the payment of royalty by the future in-
Director. made. terest lease holder, the applicant, if not
(b) Effective date of tease. Future in- the owner of the present mineral in-
terest leases will become effective on the terest, may obtain and file with the
§3130.4-4 Fractional present interests. date when the United States becomes Bureau of Land Management an instru-
An offer for a fractional present in- vested with the mineral rights as stated ment executed in duplicate by the
in the lease. Where the effective dates of present mineral owner conveying or
terest noncompetitive lease must be exe- the vesting of the Government's title to assigning to the United States the royalty
cuted on a form approved by the Direc- the minerals are different for different interest set forth in the agreement ap-
tor and it must be accompanied by a tracts, separate leases covering each of plicable to the particular terms of years
statement showing the extent of the of- such different tracts will be issued. which will elapse before the United
feror's ownership of the operating rights (c) Supplemental agreement. As part States becomes the owner of the mineral
to the fractional mineral interest not of the consideration for the issuance of rights. If found acceptable,one original
owned by the United States in each tract a future interest oil and gas lease and of such assignment will be returned to
covered by the offer to lease. Ordinarily, as supplemental thereto, the applicant the applicant for recordation at his ex-
the issuance of a lease to one who, upon shall execute and file in triplicate an pense and for return to the Bureau or 1
such issuance, would own less than 50 agreement for approval by the Director. Land Management. In such case, the
percent of the operating rights in any Such agreement will provide for the pay- supplemental agreement should have
such tract,will not be regarded as in the ment of annual rental in advance at the endorsea on it by the applicant the state-
public interest, and an offer leading to, rate of 25 cents an acre for each tract went that the assignment of such
such results will be rejected. • _:'until the future interest therein becomes royalty interest to the United States is
§3130.4-5 Future and future fractional possessory or until production is had on recognized by the holder of the agree-
interest offers. the lands described in the lease. After ment.
(a) Application. A noncompetitive discovery, and until the lease becomes
lease for a whole or fractional future in- effective as to the respective tracts, the
terest will be issued only to an offeror who agreement will provide for the payment
owns all or substantially all of the present of a royalty on production,not less than
operating rights to the minerals in the 25 cents per acre per annum,at the par-
lands in the offer as mineral fee owner,as titular rate that is applicable; when the
lessee or as an operator holding such interval from the date of receipt of said
rights.An application for a future inter- lease application to the date that the fu- (d) Approval. Leases for a whole or
est lease flied less than 1 year prior to the ture interest will become possessory is: fractional interest will be issued on a
date of the vesting in the United States of years Percent form approved by the Director. Such
the present Not more than 5 t
interest in the minerals will More than 5 yea not more than leases will be sent to the applicant or
be rejected. Upon the vesting in the10 ears 4 offeror for execution and return to the
United States of the present possessory More wan to years,tut not more inns proper land office for execution by the
interest in the minerals, all applications 15 years a appropriate officer. Thereafter, an ex-
for future interest leases outstanding at More than 15 years 1 ecuted copy will be mailed to lessee.
*U-5.GOVERNMENT PRINTING OFFICE:1976-677-571/291 REGION NO.8
This Circular replaces C;tculars 2334 and 2348.
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GPO 661-600
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