[Federal Register Volume 61, Number 203 (Friday, October 18, 1996)]
[Proposed Rules]
[Pages 54384-54404]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26398]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management

43 CFR Parts 3500, 3510, 3520, 3530, 3540, 3550, 3560, and 3570

[WO-320-1990-01-24 A]
RIN 1004-AC49


Leasing of Solid Minerals Other Than Coal and Oil Shale

Agency: Bureau of Land Management, Interior.

Action: Proposed rule.

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SUMMARY: The Bureau of Land Management (BLM) proposes to amend its 
regulations governing leasing of solid minerals other than coal and oil 
shale. The purpose of the amendment is to comply with President 
Clinton's Government-wide regulatory reform initiative to eliminate, 
streamline, or rewrite regulations in plain English. The current rule 
includes separate sections for all the solid minerals commodities, and 
the resulting language is repetitive in many instances. The proposed 
rule will reorganize these solid minerals regulations to eliminate 
redundant language and streamline the regulations. The proposed rule 
will also clarify the responsibilities of interested parties.

DATES: You must submit your comments by January 16, 1997. BLM may not 
consider comments received after this date in developing the final 
rule.

ADDRESSES: Commenters may hand-deliver comments to the Bureau of Land 
Management, Administrative Record, Room 401, 1620 L Street, NW., 
Washington, DC; or mail comments to the Bureau of Land Management, 
Administrative Record, Room 401LS, 1849 C Street, NW., Washington, DC 
20240. Commenters may transmit comments electronically via the Internet 
to WOC[email protected]. Please include ``AC49'' and your name and 
address in your message. If you do not receive a confirmation from the 
system that we have received your internet message, contact us directly 
at (202) 452-5030. Comments will be available

[[Page 54385]]

for public review at the L Street address during regular business 
hours, from 7:45 a.m. to 4:15 p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Jim Horan, (202) 452-5023 (Commercial 
or FTS).

SUPPLEMENTARY INFORMATION:

I. Public Comment Procedures
II. Background
III. Discussion of Proposed Rule
IV. Procedural Matters

I. Public Comment Procedures

    Your written comments on the proposed rule should--
    (a) Be specific;
    (b) Be confined to issues about the proposed rule;
    (c) Explain the reason for the recommended change; and
    (d) Where possible, reference the specific section or paragraph of 
the proposal which you are addressing.
    BLM may not necessarily consider or include in the Administrative 
Record or the final rule comments which BLM receives after the close of 
the comment period (see DATES) or comments delivered to an address 
other than those listed above (see ADDRESSES).

II. Background

    On March 4, 1995, President Clinton issued a memorandum to all 
Federal Departments and Agencies directing them to simplify their 
regulations. In response to the President's directive, BLM analyzed 43 
CFR part 3500 through 43 CFR part 3570 to determine whether the 
regulations were current and written in clear and understandable terms. 
As a result, BLM decided that we could reorganize the regulations to 
achieve significant reductions in length while greatly improving the 
clarity of the document.

Statutory Basis of BLM's Regulations

    BLM's regulatory program relating to solid minerals is based on 
several different statutes which give BLM authority to regulate mineral 
leasing on the lands administered by the bureau.
Mineral Leasing Act of 1920
    The Mineral Leasing Act of 1920 (the Act), as amended and 
supplemented (30 U.S.C. 181 et seq.), provides for leasing of certain 
deposits of phosphates, potassium, gilsonite, and sodium minerals on 
public domain lands. The Act authorizes the Secretary of the Interior 
to grant to any qualified applicant a permit or lease for certain 
deposits of minerals on lands owned by the United States.
Reorganization Plan No. 3 of 1946
    Reorganization Plan No. 3 of 1946 (5 U.S.C. Appendix) transferred 
the responsibilities of the Secretary of Agriculture for the leasing or 
other disposal of hardrock minerals to the Secretary of the Interior 
for certain areas.
Mineral Leasing Act for Acquired Lands of 1947
    The Mineral Leasing Act for Acquired Lands of 1947, as amended (30 
U.S.C. 351-359), provides for the leasing of certain acquired lands. 
This statute authorizes the Secretary of the Interior to establish 
rules and regulations necessary to grant any qualified applicant a 
permit or lease to promote mining of phosphate, sodium, potassium, 
sulphur and gilsonite deposits on Federal acquired lands.
The Federal Land Policy and Management Act of 1976
    The Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 
et seq.) (FLPMA) authorizes the Secretary of the Interior to develop 
guidelines for the administration and protection of the Federal lands 
and their resources under the jurisdiction of BLM.
    Other authorities which address programs related to specific 
commodities and lands include the following:
    (a) Certain lands added to the Shasta National Forest (30 U.S.C. 
192c);
    (b) Public domain lands in National Forests in Minnesota (6 U.S.C. 
508(b));
    (c) Gold, silver or quicksilver in confirmed private land grants 
(30 U.S.C. 291-293);
    (d) Reserved minerals in lands patented to the State of California 
for parks or other purposes (47 Stat. 1487, as amended);
    (e) National Park Service areas--
    (i) Lake Mead National Recreation Area (16 U.S.C. 460n et seq.);
    (ii) Whiskeytown Unit of the Whiskeytown-Shasta-Trinity National 
Recreation Area (16 U.S.C. 460q et seq.);
    (iii) Ross Lake and Lake Chelan National Recreation Areas (16 
U.S.C. 90c et seq.);
    (iv) Glen Canyon National Recreation Area (16 U.S.C. 460dd et 
seq.);
    (f) Shasta-Trinity Units of the Whiskeytown-Shasta Trinity National 
Recreation Area (16 U.S.C. 460q et seq.); and
    (g) White Mountains National Recreation Area (16 U.S.C. 460mm-2 
through 460mm-4).
Development of BLM's Regulations
    The last major revision of these solid leasable minerals 
regulations was published in the Federal Register on April 22, 1986 (51 
FR 15204). That revision included separate parts covering specific 
mineral commodities. The commodity-by-commodity format completed an 
attempt to clarify the regulations that began with amendments published 
on April 25, 1984 (49 FR 17892).
    Under the 1986 organization of the regulations, processes such as 
issuance of exploration licenses and mineral leases were addressed in a 
similar or identical manner under each commodity. This organization was 
designed to allow parties interested in each commodity to look in only 
one part of the regulations to find the provisions relating to their 
commodity. However, not all of the leasing or permitting regulations 
were included with the commodity, and the regulations were so extensive 
that the complete body of solid mineral regulations occupied about 100 
pages of the Code of Federal Regulations.

III. Discussion of Proposed Rule

    As part of BLM's response to the administration's regulatory 
initiatives, we reviewed this extensive body of material and decided to 
consolidate and to eliminate the duplicative presentation of processes. 
BLM understands that our readers want to be able to find particular 
subject matter easily in our regulations. However, we believe that the 
plain English approach, particularly the expanded table of contents, 
will make it easy for readers to find material that is of concern to 
them. The overall reduction in the volume of BLM's regulations achieved 
by this revision should make it easier for the reader to find 
particular subject matter.
    BLM believes that a consolidated approach to these regulations 
offers other advantages. If BLM revises its procedures relating to 
solid minerals, we would need to undertake only one regulatory action 
to conform the consolidated regulations to any new revisions in our 
procedures. This reduces the time it would take BLM to keep its 
regulations up to date and internally consistent. When several 
different regulations address one process, as in the current version of 
43 CFR part 3500, it is difficult for BLM to ensure that changes made 
to one part get made in all relevant parts. As a result, parts that 
should be identical diverge over time.
    As a result of these considerations, BLM has determined that we can 
eliminate the repetition represented by the current regulatory 
structure, while enhancing our readers' ability to find

[[Page 54386]]

material of interest to them. We are particularly interested in 
comments on whether it is easy to find particular subject matter in 
this proposed rule. We would also welcome suggestions for further 
consolidation and reorganization. We understand that a number of 
different organizations of these regulations are reasonable, and are 
interested in suggestions from the public as to the most readable and 
logical arrangement of these rules. BLM also invites comments from 
surface management agencies, surface owners, and other interested 
persons as to whether any of the proposed changes would make 
substantive changes not discussed in this preamble.
    Most of the changes BLM is proposing today are for the purpose of 
streamlining and clarifying the regulations. All parts and subparts of 
what is currently Group 3500, Management of Solid Minerals Other Than 
Coal, are affected, except parts 3580 and 3590. BLM is not proposing 
any changes to these two parts at this time, but may propose changes to 
these parts in the future for purposes of streamlining and 
clarification. If BLM finalizes these proposed regulations, certain 
changes will be made in those two parts to conform the cross references 
to the new numbers.
    The current proposed action eliminates the commodity-specific 
provisions contained in parts 3510, 3520, 3530, 3540, 3550, 3560, and 
3570. BLM proposes to expand the general material currently found in 
part 3500 to incorporate all substantive provisions of those parts. As 
a result, the new part would contain subparts 3501 through 3517. 
Details of these proposed subparts can be found in the table of 
contents.
    In addition to rewriting the regulations for clarity, BLM is 
proposing to:
    1. Eliminate the requirement to describe the lands for which you 
are making an application once you have properly described them and BLM 
has issued a prospecting permit or lease. This would eliminate the need 
for the applicant to submit a land description with his or her 
application for a preference right lease or for assignments where the 
land description duplicates that in the prospecting permit or original 
lease. BLM would still require land descriptions for assignments of 
parts of the land described in the original prospecting permit or 
lease. Applicants would still need to identify the lease or permit by 
serial number.
    2. Increase the State acreage limitation for potassium leases. 
Current 43 CFR 3530.3 specifies that there is a per-State acreage 
limitation of 51,200 acres for holders of potassium leases or permits. 
BLM proposes to increase this limitation to 80,000 acres. The acreage 
limitation for potassium is regulatory, and is not based on any 
statutory requirement. The statute limits the size of individual leases 
to 2,560 acres per lease. As the potash industry has matured, many 
mining operations are consolidating or closing. BLM believes that 
increasing the size of the State acreage limitation would allow for 
consolidation of mining properties and enhance development of marginal 
Federal reserves, thereby ensuring the statutory goal of ultimate 
maximum recovery. This proposed change would not create a situation 
where one company could monopolize Federal resources. This proposed 
change is reflected in the table in Sec. 3503.37.
    3. Change a provision currently in 43 CFR 3513.1-2, proposed to be 
in 43 CFR 3507.16, requiring the applicant for a preference right lease 
to submit a map showing certain land features, to require three maps, 
consistent with other provisions in these regulations, and with BLM's 
need for documentation to facilitate the review of these applications. 
While it is relatively easy for BLM to make duplicate copies of most 
application material, it is often difficult to duplicate maps, and 
obtaining additional maps from the applicant should facilitate BLM's 
review.
    4. Incorporate uniformly BLM's current practice of not issuing 
leases covered by current Group 3500 to coal lessees and assignees not 
in compliance with section 2(a)(2)(A) of the Mineral Leasing Act, as 
amended. This means that BLM will not issue a lease under this part to 
anyone not in compliance with the diligence requirements for coal 
leases found in section 2(a)2(A). This change is the result of the 
proposed reorganization and clarification of these regulations and is 
reflected in proposed 43 CFR 3502.20 and 3511.11. Since this provision 
is consistent with current practice it will not have any significant 
impact on the industry. To date, BLM has denied fewer than 5 leases on 
the basis of this statutory provision.
    5. Add a provision at 43 CFR 3502.42 specifying, consistent with 
the provisions of the Mineral Leasing Act, 30 U.S.C.184(g), that BLM 
will allow unqualified heirs to hold ownership for not more than two 
years, during which period the heir must either become qualified or 
divest himself or herself of the interest.
    6. Eliminate provisions authorizing issuance of future interest 
prospecting permits currently in subpart 3507. BLM has rarely been 
called upon to issue such permits. We believe that the period of time 
available to current mineral interest holders, before the minerals vest 
in the United States, should be sufficient to allow those interest 
holders to determine whether there is a valuable mineral deposit 
present. If the mineral holder does demonstrate the existence of a 
valuable mineral deposit, BLM would continue, under this proposal, to 
issue future interest leases to the interest holder for these minerals.
    7. Clarify in proposed subpart 3515, particularly Sec. 3515.21, 
that lands exchanged must be of equal, rather than comparable, value. 
This change implements the provisions of the Federal Land Exchange 
Facilitation Act of 1988, which amended section 206 of FLPMA. The same 
Act also provided the government and any applicant greater flexibility 
than did previous requirements in achieving equality in an exchange. 
This flexibility is incorporated into the proposed regulation at 
proposed Sec. 3515.22. Section 3515.12 clarifies that the exchange-
specific provisions of 43 CFR part 2200 apply.
    8. Clarify in proposed on Sec. 3501.5 the definition of the term 
``valuable deposit''. The current definition at 43 CFR 3500.0-5 is 
circular in that it uses the phrase ``valuable mine'' in describing the 
term ``valuable deposit''. The proposed rule would change ``valuable 
mine'' to ``profitable mine'' and thus clarifies that the profitability 
of mineral development is an important consideration in determining 
whether a person of ordinary prudence would be justified in the further 
expenditure of his or her labor and means with the reasonable prospect 
of successfully developing the mineral deposit. Accordingly, the 
proposed section on what information you have to provide to BLM to 
prove that you have found a valuable deposit, proposed section 3507.26, 
states that BLM may request supplemental data to determine, among other 
things, mining and processing costs and the profitability of mineral 
development.
    9. Modify the requirements found in the current 43 CFR 3502.2-4(b) 
on the disclosure of the identity and citizenship of major stockholders 
to add disclosure of the percentage of their stock holdings. This 
change would assist BLM to enforce acreage limitations against those 
stockholders. The proposed rule would eliminate a requirement found in 
the current 43 CFR 3502.2-4(e) to submit such information on the basis 
of foreign residency. This information is not needed to enforce any 
statutory limitations.

[[Page 54387]]

    10. Clarify at proposed Sec. 3510.21 that BLM can issue 
noncompetitive fringe acre leases to extract sodium chloride to persons 
producing calcium chloride from an existing mine, under an 
authorization issued under 43 CFR part 3800 for locatable minerals. 
This addresses an issue restricted to a limited geographic area in 
California, where these two minerals are commingled.
    Additionally, BLM seeks comment particularly on the following two 
proposals. These proposals are not reflected in the regulatory language 
published today. BLM may decide to undertake these changes, based on 
public comment.
    11. Add a discussion of what makes lands ``compact.'' A similar 
discussion appeared in the regulations prior to the 1986 revisions. We 
are particularly interested in whether commenters perceive a need for 
BLM to define this term.
    12. Reduce the number of copies of applications required from three 
copies to one in cases where there is no specified form, except for 
copies of maps.

IV. Procedural Matters

National Environmental Policy Act

    BLM has prepared an environmental assessment (EA), and has found 
that the proposed rule would not constitute a major federal action 
significantly affecting the quality of the human environment under 
section 102(2)(C) of the National Environmental Policy Act of 1969 
(NEPA), 42 U.S.C. 4332(2)(C). BLM has placed the EA and the Finding of 
No Significant Impact (FONSI) on file in the BLM Administrative Record 
at the address specified previously. BLM invites the public to review 
these documents by contacting us at the addresses listed above (see 
ADDRESSES), and suggests that anyone wishing to submit comments in 
response to the EA and FONSI do so in accordance with the ``Written 
Comments'' section above, or contact us directly.

Federal Paperwork Reduction Act

    The Office of Management and Budget has approved the information 
collection requirements in the rule proposed by this action, which 
affects all the parts currently numbered as parts 3500, 3510, 3520, 
3530, 3540, 3550, 3560, and 3570 of title 43, under 44 U.S.C. 3507 and 
assigned clearance numbers 1004-0030, 1004-0121, and 1004-0142. 
Existing information collection requirements have been consolidated 
into part 3500 in this proposed rule. No new requirements have been 
added as a result of this proposal. The information collected under 
this part is used by BLM to determine if an applicant is qualified to 
hold a lease, license or prospecting permit for solid leasable minerals 
other than coal, oil and gas, geothermal, and oil shale on Federal 
lands. The information is required for the applicant to receive the 
benefit of a permit or lease from BLM.
    BLM estimates the public reporting burden of these information 
collection sections to average 3\1/2\ hours for each response. By 
eliminating the requirement to describe the lands for many assignments 
and leases, this burden should be reduced for those activities. This 
estimate includes the time for reviewing instructions, searching 
existing data sources, gathering and maintaining the data needed, and 
completing and reviewing the collection of information. Send comments 
regarding this burden estimate or any other aspect of this collection 
of information, including suggestions for reducing the burden, to the 
address listed above (see ADDRESSES) and the Office of Information and 
Regulatory Affairs, Office of Management and Budget, Washington, DC 
20503.

Regulatory Flexibility Act

    Congress enacted the Regulatory Flexibility Act (RFA) to ensure 
that Government regulations do not unnecessarily or disproportionately 
burden small entities. The RFA requires a regulatory flexibility 
analysis if a rule would have as significant economic impact, either 
detrimental or beneficial, on a substantial number of small entities. 
BLM has determined that this proposed rule would not have a significant 
economic impact on a substantial number of small entities under the RFA 
(5 U.S.C. 601 et seq.).

Unfunded Mandates Reform Act

    These amendments to 43 CFR part 3500 will not result in any 
unfunded mandate to state, local or tribal governments in the 
aggregate, or to the private sector, of $100,000,000 or more in any one 
year.

Executive Order 12630

    The proposed rule does not represent a government action capable of 
interfering with constitutionally protected property rights. Section 
2(a)(1) of Executive Order 12630 specifically exempts actions 
abolishing regulations or modifying regulations in a way that lessens 
interference with private property use from the definition of 
``policies that have takings implications.'' Since the function of this 
regulatory action is to streamline regulations and eliminate 
unnecessary provisions, there will be no private property rights 
impaired as a result. Therefore, the Department of the Interior has 
determined that the rule would not cause a taking of private property, 
or require further discussion of takings implications under this 
Executive Order.

Executive Order 12866

    According to the criteria listed in section 3(f) of Executive Order 
12866, BLM has determined that the proposed rule is not a significant 
regulatory action. As such, the proposed rule is not subject to Office 
of Management and Budget review under section 6(a)(3) of the order.

Executive Order 12988

    The Department of the Interior has determined that this rule meets 
the applicable standards provided in sections 3(a) and 3(b)(2) of 
Executive Order 12988.

    Author: The principal author of this rule is Jim Horan, Bureau 
of Land Management, 1849 C Street, NW., Washington, DC 20240; 
Telephone: (202) 452-5023 (Commercial or FTS).

List of Subjects

43 CFR Part 3500

    Government contracts, Mineral royalties, Public lands--mineral 
resources, Reporting and recordkeeping requirements, Bonds.

43 CFR Part 3510

    Public lands--mineral resources, Reporting and recordkeeping 
requirements.

43 CFR Part 3520

    Government contracts, Public lands--mineral resources.

43 CFR Part 3540

    Public lands--mineral resources.

43 CFR Part 3550

    Public lands--mineral resources.

43 CFR Part 3560

    Government contracts, Mineral royalties, Public lands--mineral 
resources, Surety bonds.

43 CFR Part 3570

    Environmental protection, Government contracts, Indians--lands, 
Mines, Public lands--mineral resources, Reporting and recordkeeping 
requirements.


[[Page 54388]]


    Dated: September 27, 1996.
Sylvia V. Baca,
Acting Assistant Secretary of the Interior.
    Accordingly, as discussed in the preamble, and under the authority 
of 30 U.S.C. 181, 43 U.S.C. 1734, and section 402, Reorganization Plan 
No. 3 of 1946 (5 U.S.C. Appendix), we propose to amend 43 CFR Chapter 
II as follows:

PARTS 3510, 3520, 3530, 3540, 3550, 3560, AND 3570--[REMOVED]

    1. Remove Parts 3510, 3520, 3530, 3540, 3550, 3560, and 3570.
    2. Remove the heading, Group 3500--Leasing of Solid Minerals Other 
Than Coal and Oil Shale.
    3. Revise part 3500 to read as follows:

PART 3500--LEASING OF SOLID MINERALS OTHER THAN COAL AND OIL SHALE

Subpart 3501--Leasing of Solid Minerals Other Than Coal and Oil Shale-
General

Sec.
3501.1  What is the scope of this part?
3501.5  What terms do I need to know to understand this part?
3501.10  What types of mineral use authorizations are allowed under 
this part?
3501.16  Does my permit or lease grant me an exclusive right to 
develop the lands covered by the permit or lease?
3501.17  Are there any general planning or environmental 
considerations that affect my permit or lease?
3501.20  If BLM approves my application for a use authorization 
under this part, when does it become effective?
3501.30  Can I appeal BLM's decisions under this part?

Subpart 3502--Qualification Requirements

3502.10  Who may hold leases and permits?
3502.13  Can foreign citizens hold permits or leases?
3502.15  Are there any additional restrictions on holdings of leases 
or interests in leases?
3502.20  Will BLM issue me a lease if I am not in compliance with 
the diligence requirements of section 2(a)(2)(A) of the Mineral 
Leasing Act, as amended?
3502.25  Where do I file evidence that I am qualified to obtain a 
permit or lease?
3502.26  Can I supplement or update my qualifications statement?
3502.27  If I am filing as an individual, what information do I have 
to provide?
3502.28  If I am an association or a partnership, what information 
do I have to provide?
3502.29  If I am a guardian or trustee of a trust holding on behalf 
of a beneficiary, what information do I have to provide?
3502.30  If I am a United States corporation, what information do I 
have to provide?
3502.33  If I represent an applicant as an attorney-in-fact, do I 
have to submit anything to BLM?
3502.34  What if there are other parties in interest?
3502.40  What happens if an applicant for a permit, an applicant for 
a preference right lease, or a successful bidder to a competitive 
lease dies before the permit or lease is issued?
3502.41  What happens to a permit or lease if a permittee or lessee 
dies?
3502.42  What happens if the heir is not qualified?

Subpart 3503--Areas Available for Leasing

3503.10  What areas are not available for leasing of any of the 
minerals covered by this part?
3503.11  Are there any other areas in which I cannot get a permit or 
lease for the minerals covered by this part?
3503.12  For what areas can I receive a sulphur lease or permit?
3503.13  For what areas can I receive a hardrock lease or permit?
3503.14  For what areas can I get a lease or permit for asphalt?
3503.15  How can I lease the gold or silver reserved to the United 
States on land I hold under a private land claim in New Mexico?
3503.16  May I obtain permits or leases for sand and gravel in 
Nevada under the terms of this part?
3503.20  What if the lands I'm interested in are administered by an 
agency other than BLM?
3503.21  What happens if the surface of the lands I'm interested in 
belongs to a non-Federal political subdivision or charitable 
organization?
3503.25  Can BLM issue permits and leases for Federal minerals 
underlying private surface?
3503.28  Does BLM incorporate any special requirements to protect 
the lands and resources?
3503.30  How should I describe the lands I'm applying for in my 
application?
3503.31  What if the lands are in States that are part of the Public 
Lands Survey System, but have not been surveyed on the ground, are 
not shown on the records as protracted surveys, or do not conform to 
the public land surveys?
3503.32  Are there any alternative methods of describing acquired 
lands?
3503.33  Are there any size or shape limitations on the lands I can 
apply for?
3503.36  Will BLM issue a lease for unsurveyed lands?
3503.37  Is there a limit to the acreage of lands I can hold under 
permits and leases?
3503.38  How does BLM compute my acreage holdings?
3503.39  Where do I file my application and other necessary 
documents?
3503.40  Will BLM make the information in my application available 
to the public?

Subpart 3504--Fees, Rental, Royalty and Bonds

3504.11  What forms of payment will BLM and MMS accept?
3504.12  What payments do I send to BLM and what payments do I send 
to MMS?
3504.15  What are the rental rates for the different commodities?
3504.16  When is my rental due after the first year of the lease?
3504.17  What happens if I do not pay my rental in a timely fashion?
3504.20  What are the requirements for paying royalties on 
production?
3504.21  How does BLM determine the royalty rate?
3504.22  How will I know what the royalty rate is on my lease 
production?
3504.25  Do I have to produce a certain amount per year?
3504.26  May I create overriding royalties on my Federal lease?
3504.50  Do I have to file a bond?
3504.51  How do I file my bond?
3504.55  What types of bonds are acceptable?
3504.56  If I have more than one lease or permit, may I combine bond 
coverage?
3504.60  Under what circumstances might BLM elect to change the 
amount of my bond?
3504.65  What happens to my bond should I fail to carry out my 
obligations under a permit or lease?
3504.66  Will I be required to restore my bond to the full amount if 
payment has been made from my bond?
3504.70  When will BLM terminate the period of liability of my bond?
3504.71  When will BLM release my bond?

Subpart 3505--Prospecting Permits

3505.10  What is a prospecting permit?
3505.11  How do I obtain a prospecting permit?
3505.12  How do I complete the application form?
3505.15  Is there an acreage limit for my application?
3505.20  Is there a fee or payment required with my application?
3505.25  How does BLM prioritize applications for prospecting 
permits?
3505.30  Can I amend or change my application once filed?
3505.31  May I withdraw my application once filed?
3505.40  After submitting my application, do I need to submit 
anything else?
3505.45  What is an exploration plan?
3505.50  How will I know if my application has been approved or 
rejected?
3505.51  May I correct or refile my application if BLM rejects it?
3505.55  What are my obligations to BLM under an approved 
prospecting permit?
3505.60  How long is my prospecting permit in effect?
3505.61  Can BLM extend the term of my prospecting permit?
3505.62  Under what conditions can I extend my prospecting permit?
3505.64  How do I apply for an extension?
3505.65  What information must I include in my request for 
extension?
3505.66  If approved, when is my extension effective?
3505.70  May I relinquish my prospecting permit?
3505.75  What happens if I fail to pay the rental?

[[Page 54389]]

3505.80  What happens when my permit expires?
3505.85  Can BLM cancel my prospecting permit for reasons other than 
failure to pay rental?

Subpart 3506--Exploration Licenses

3506.10  What is an exploration license?
3506.11  What must I do to obtain an exploration license?
3506.12  Who prepares and publishes the notice?
3506.13  What information must I provide to BLM for inclusion in my 
Notice of Exploration?
3506.14  What happens after I publish the Notice of Exploration?
3506.15  Who resolves differences and approves the license and 
participants?
3506.20  After my license is issued, may I modify my exploration 
plan?
3506.25  Once I have a license, what are my responsibilities?

Subpart 3507--Preference Right Leases

3507.11  What do I have to do to be entitled to a preference right 
lease?
3507.15  How do I apply for a preference right lease?
3507.16  What information must my application for a preference right 
lease include?
3507.20  Is there a fee or payment required with my application?
3507.25  Under what circumstances will BLM reject my application?
3507.26  What do I need to submit to demonstrate that I've found a 
valuable deposit?
3507.30  If I disagree with BLM's reasons for rejecting my 
preference right lease, may I appeal?

Subpart 3508--Competitive Leases

3508.11  What lands are available for competitive leasing?
3508.12  How do I get a competitive lease?
3508.14  How much time does BLM allow for a bid to be submitted?
3508.15  What information will the notice of lease sale include?
3508.16  What information will the detailed statement include?
3508.20  How will BLM conduct the sale and handle bids?
3508.21  What happens if I am the successful bidder?
3508.22  What happens if my bid is rejected?

Subpart 3509--Fractional and Future Interest Leases

3509.10  What are future interest leases?
3509.11  For what lands will BLM issue future interest leases?
3509.12  What if I am a mining owner or operator, and I am applying 
for a future interest lease as part of my existing operation?
3509.15  Who may apply for a future interest lease?
3509.16  How do I apply for a future interest lease?
3509.17  What information must I include in my application for a 
future interest lease?
3509.20  When does my future interest lease take effect?
3509.25  Under what conditions would BLM reject my application for a 
future interest lease?
3509.30  May I withdraw my application for a future interest lease?

Subpart 3510--Lease Terms and Conditions

3510.15  How long will my lease be in effect?
3510.20  Do certain leases allow me to mine other commodities as 
well?
3510.21  If I am mining calcium chloride, can I obtain a 
noncompetitive mineral lease to produce the commingled sodium 
chloride?
3510.25  What is meant by lease readjustment and lease renewal?
3510.26  What if I object to the terms and conditions BLM proposes 
for a readjusted lease?
3510.27  How will a lease renewal affect my priority as lessee?
3510.30  If I appeal BLM's proposed new terms, do I have to continue 
paying royalties or rentals while my appeal is being considered?
3510.50  How do I renew my lease?

Subpart 3511--Assignments and Subleases

3511.11  Once I am issued a permit or lease, can I assign or 
sublease it?
3511.12  Is there a fee for requesting an assignment or sublease?
3511.13  What do I submit to get BLM approval for an assignment of 
record title?
3511.16  How do I assign or transfer a sublease or operating rights 
to my lease or permit?
3511.18  Do I have to notify BLM if I intend to transfer an 
overriding royalty to another party?
3511.20  Will BLM approve my assignment or sublease if I have 
outstanding liabilities?
3511.25  If I assign my permit or lease, when do my obligations 
under the permit or lease end?
3511.30  What are the responsibilities of a sublessor and a 
sublessee?
3511.33  Does an assignment or sublease alter the permit or lease 
terms?

Subpart 3512--Waiver, Suspension, or Reduction of Rental and Minimum 
Royalties

3512.11  Can I be relieved of the lease requirements of rental, 
minimum royalty, or production royalty?
3512.12  What criteria does BLM consider in approving a waiver, 
suspension, or reduction in rental or minimum royalty, or a 
reduction in the royalty rate?
3512.15  How do I apply for relief?
3512.20  What is a suspension of operations and production?
3512.21  What is the effect of a suspension of operations and 
production?
3512.22  How do I apply for a suspension of operations and 
production?
3512.25  When will my suspension of operations and production take 
effect?
3512.26  When and how does my suspension of operations and 
production expire or terminate?
3512.30  What is a suspension of operations?
3512.31  What is the effect of a suspension of operations?
3512.32  How do I apply for a suspension of operations?
3512.33  When will my suspension of operations take effect?
3512.34  When and how does my suspension of operations expire or 
terminate?

Subpart 3513--Lease Relinquishments, Terminations, and Cancellations

3513.11  Can I relinquish my lease or any part of my lease?
3513.12  What should I include in a request for partial 
relinquishment?
3513.15  Where do I file my relinquishment?
3513.20  When is my relinquishment effective?
3513.25  When does my lease expire?
3513.30  Can my lease be canceled?
3513.31  Can BLM waive cancellation or forfeiture?
3513.32  Will BLM give me an opportunity to remedy a violation of 
the lease terms?
3513.50  What happens to a bona fide purchaser if the lease assigned 
to him or her is subject to cancellation?

Subpart 3514--Noncompetitive Leasing--Fringe Acreage Leases and Lease

Modifications

3514.11  If I already have a Federal lease, or the mineral rights on 
adjacent private lands, may I lease adjoining Federal land that 
contains the same deposits without competitive bidding?
3514.12  What do I need to do to obtain a lease modification or 
fringe acreage lease?
3514.15  What does BLM do with my application?
3514.20  Are there any fees required to modify my existing lease or 
obtain a fringe acreage lease?
3514.21  What terms and conditions apply to fringe acreage leases 
and lease modifications?

Subpart 3515--Mineral Lease Exchange

3515.10  May I exchange my lease or lease right for another mineral 
lease or lease right?
3515.12  What regulatory provisions apply if I want to exchange a 
lease or lease right?
3515.15  Under what circumstances will BLM consider initiating an 
exchange?
3515.18  Will I be notified that BLM is considering an exchange?
3515.20  Can preference right lease rights be exchanged?
3515.21  What types of lands can be exchanged?
3515.22  What if the lands to be exchanged are not of equal value?
3515.23  Might I be required to submit additional information?
3515.25  If I agree on the lands to be leased in exchange, what 
happens next?
3515.26  When will BLM make a decision on the exchange?
3515.27  Will BLM attach any special provisions to the exchange 
lease?

[[Page 54390]]

Subpart 3516--Use Permits

3516.10  What are use permits?
3516.11  What commodities allow use permits?
3516.12  What activities can I conduct under a use permit?
3516.15  How do I apply for use permits?
3516.16  What must I include with my application?
3516.20  Is there an annual fee or charge for use of the lands?
3516.30  What happens if I fail to pay the annual rental on my use 
permit?

Subpart 3517--Special Provisions Applying to Hardrock Minerals

3517.10  What are development contracts and processing and milling 
arrangements?
3517.11  Are leases and permits covered by approved agreements 
exempt from the acreage limitations?
3517.15  How do I apply for one of these agreements?
3517.16  How does BLM process my application?
3517.50  Can I collect mineral specimens for non-commercial 
purposes?

    Authority: 5 U.S.C. 552; 7 U.S.C. 1011(f); 16 U.S.C. 90c-1, 
460n-5, 460q-1, 460dd-2, 460mm-3, 508b, and 520; 29 U.S.C. 49g; 30 
U.S.C. 189, 192c, 293, and 359; 31 U.S.C. 9701; 43 U.S.C. 387, 1733, 
and 1740; Sec. 402, Reorganization Plan No. 3 of 1946 (5 U.S.C. 
appendix).

Subpart 3501--Leasing of Solid Minerals Other Than Coal and Oil 
Shale-General


Sec. 3501.1  What is the scope of this part?

    This part applies to certain minerals leased under the mineral 
leasing acts and hardrock minerals leased under Reorganization Plan No. 
3 of 1946 on any unclaimed, undeveloped area of available public domain 
or acquired lands where leasing of these specific minerals is allowed 
by law. Some areas allow only leases, not prospecting permits. Special 
areas identified in 43 CFR part 3580 are leased under this parts. Check 
that part to identify any special provisions that apply to those 
special areas.


Sec. 3501.5  What terms do I need to know to understand this part?

    You need to know the following terms, which are used frequently in 
this part:
    Act means one or more of the statutes referred to in the authority 
citation of this regulation, as appropriate.
    Chiefly valuable means that land is more valuable for the 
development of sodium, sulphur or potassium than for any non-mineral 
disposition, or there is not a significant conflict between mineral 
extractions and any other disposition of lands.
    Hardrock minerals means those locatable minerals for which a 
mineral patent may be obtained under the Mining Law of 1872 (30 U.S.C. 
22 et seq.) if the mineral resource is on public domain land. They do 
not include leasable minerals, nor do they include oil, gas, coal and 
oil shale or mineral materials covered by the regulations in 43 CFR 
part 3600. Hardrock minerals do include, but are not limited to, 
copper, lead, zinc, magnesium, nickel, tungsten, gold, silver, 
bentonite, uranium, barite, feldspar and fluorspar.
    Leasable minerals for this part means the chlorides, sulfates, 
carbonates, borates, silicates or nitrates of potassium or sodium and 
related products; sulphur on public lands in the States of Louisiana 
and New Mexico and on all acquired lands; phosphate, including 
associated and related minerals; asphalt in certain lands in Oklahoma; 
and Gilsonite (including all vein-type solid hydrocarbons).
    Leasing includes prospecting permits, unless the context otherwise 
requires.
    MMS means the Minerals Management Service.
    Permit means prospecting permit, unless otherwise specified.
    Valuable deposit means a mineral occurrence where minerals have 
been found and the evidence is of such a character that a person of 
ordinary prudence would be justified in the further expenditure of his 
or her labor and means, with a reasonable prospect of success in 
developing a profitable mine.


Sec. 3501.10  What types of mineral use authorizations are allowed 
under this part?

    BLM issues several types of mineral use authorizations to qualified 
individuals. Certain types of authorizations do not apply to certain 
commodities.
    (a) ``Prospecting permits'' allow you to explore for leasable 
mineral deposits on lands where BLM has determined that prospecting is 
necessary to determine the existence of a valuable deposit. Any 
qualified holder of a prospecting permit is entitled to a preference 
right lease if he or she discovers a valuable deposit of the mineral or 
determines the land to be chiefly valuable for sodium, sulfur or 
potassium as a result of prospecting efforts under the permit.
    (b) ``Exploration licenses'' allow you to explore in areas which 
contain known deposits of a leasable mineral to obtain data. With an 
exploration license, you do not obtain any preference or other right to 
a lease.
    (c) ``Preference right leases'' are issued to holders of 
prospecting permits who during the term of the permit demonstrate the 
discovery of a valuable deposit of the leasable mineral or hardrock 
mineral for which BLM issued the permit; and, for sodium, potassium and 
sulphur, prove that the lands are chiefly valuable for those minerals. 
The lease allows you to mine the deposit in accordance with an approved 
mine plan.
    (d) ``Competitive leases'' are issued for known deposits of a 
leasable mineral or hardrock mineral by competitive bidding. The lease 
allows you to mine the deposit in accordance with an approved mine 
plan.
    (e) ``Fringe acreage leases'' are issued noncompetitively for known 
deposits of a leasable mineral or hardrock mineral on Federal lands 
adjacent to existing mines on non-Federal lands when the deposits can 
only be mined as part of the existing mining operation.
    (f) ``Lease modifications'' are used to add known deposits of the 
subject leasable mineral or hardrock mineral to an adjacent Federal 
lease which contains an existing mine provided the deposits can only be 
mined as part of the existing mining operation.


Sec. 3501.16  Does my permit or lease grant me an exclusive right to 
develop the lands covered by the permit or lease?

    No. Your permit or lease gives you an exclusive right to the 
mineral, but not to the lands. BLM may allow other uses or disposal of 
the lands, including leasing of other minerals, as long as those uses 
or disposal will not unreasonably interfere with your operation. Any 
other permits or leases covering the lands contained within your permit 
or lease will contain suitable stipulations based on consideration of 
safety, environmental protection, conservation, maximum recovery of the 
resource, and other such factors, for simultaneous operation. You must 
also make all reasonable efforts to avoid interference with other 
authorized uses.


Sec. 3501.17  Are there any general planning or environmental 
considerations that affect my permit or lease?

    (a) BLM will not issue a permit or lease that does not conform with 
the decisions, terms and conditions of an applicable comprehensive land 
use plan.
    (b) BLM or the surface management agency will comply with NEPA 
before issuing you a permit or lease.
    (c) BLM will issue permits and leases only in a manner consistent 
with any unsuitability designation made under 43 CFR part 1600.

[[Page 54391]]

Sec. 3501.20  If BLM approves my application for a use authorization 
under this part, when does it become effective?

    BLM will approve your use authorization effective the first day of 
the month after BLM signs it, unless you request, in writing, that it 
be effective the first day of the month in which it is approved. This 
applies to all leases, licenses, permits, transfers and assignments in 
this part, unless a specific regulation provides otherwise.


Sec. 3501.30  Can I appeal BLM's decisions under this part?

    Any party adversely affected by a BLM decision under this part may 
appeal the decision in accordance with 43 CFR parts 4 and 1840.

Subpart 3502--Qualification Requirements


Sec. 3502.10  Who may hold leases and permits?

    You may hold an interest in leases and permits under this part only 
if you are:
    (a) An adult citizen of the United States;
    (b) An association (including partnerships and trusts) of such 
citizens;
    (c) A corporation organized under the laws of the United States or 
of any State or territory thereof; or
    (d) A legal guardian or trustee of a minor.


Sec. 3502.13  Can foreign citizens hold permits or leases?

    No. Individual foreign citizens cannot hold permits or leases. 
Citizens of foreign countries may hold stock in United States 
corporations that hold leases or permits so long as the laws, customs, 
or regulations of their country do not deny similar privileges to 
citizens or corporations of the United States. A list of the countries 
which deny such privileges is available from any BLM State office.


Sec. 3502.15  Are there any additional restrictions on holding leases 
or interests in leases?

    Yes. If you are a member of, or delegate to, Congress, a Resident 
Commissioner, or any employee of the Department of the Interior, except 
as provided in part 20 of this title, you may not acquire or hold any 
Federal lease, or interest therein. (Officer, agent or employee of the 
Department-see 43 CFR part 20; Member of Congress-see R.S. 3741; 41 
U.S.C. 22; 18 U.S.C. 431-433)


Sec. 3502.20   Will BLM issue me a lease if I am not in compliance with 
the diligence requirements of section 2(a)(2)(A) of the Mineral Leasing 
Act, as amended?

    BLM will not issue, modify or renew a lease, or approve a transfer 
of any lease or interest in a lease, for any of the minerals covered by 
this part unless you are in compliance with section 2(a)(2)(A) of the 
Mineral Leasing Act, as amended (compliance is determined for Federal 
coal leases in accordance with 43 CFR 3462.1-2(e)). If BLM issues you a 
lease when you are in violation, BLM will cancel your lease as outlined 
in subpart 3513 of this part.


Sec. 3502.25   Where do I file evidence that I am qualified to obtain a 
permit or lease?

    You must file evidence with BLM that you meet the qualification 
requirements. You may file this evidence separately from your 
application for a permit or lease, but you should file it in the same 
office where you filed your application.


Sec. 3502.26   Can I supplement or update my qualifications statement?

    After BLM accepts your qualifications, you may submit additional 
information to the same BLM office by referring to the serial number of 
the record in which your evidence is filed. You must make any changes 
to your qualifications statement in writing. It is your responsibility 
to assure that such evidence is current, accurate and complete.


Sec. 3502.27   If I am filing as an individual, what information do I 
have to provide?

    If you are an individual, you must submit a signed statement 
showing:
    (a) You are a U.S. citizen; and
    (b) Your acreage holdings, including any holding through a 
corporation, association, or partnership in which you are the 
beneficial owner of more than 10% of the stock or other instruments of 
control, do not exceed the limit for the mineral concerned. (See 
subpart 3503 of this part for a discussion of acreage holdings.)


Sec. 3502.28   If I am an association or a partnership, what 
information do I have to provide?

    If you are an association, such as a partnership, a member or 
authorized attorney-in-fact must submit the following:
    (a) A signed statement setting forth:
    (1) The names, addresses, and citizenship of all members owning or 
controlling 10 percent or more of the association or partnership;
    (2) The names of the members authorized to act on behalf of the 
association or partnership; and
    (3) That the association or partnership's acreage holdings for the 
particular mineral concerned do not exceed the allowable acreage 
holdings for that mineral.
    (b) A copy of the articles of the association or partnership.


Sec. 3502.29   If I am a guardian or trustee for a trust holding on 
behalf of a beneficiary, what information do I have to provide?

    If you are a guardian or trustee for a trust holding on behalf of a 
beneficiary, you must submit the following:
    (a) A signed statement setting forth:
    (1) The citizenship of the beneficiary;
    (2) Your citizenship;
    (3) The grantor's citizenship, if the trust is revocable; and
    (4) That the acreage holdings of the beneficiary, the guardian or 
trustee, or the grantor, if the trust is revocable, do not exceed that 
allowed.
    (b) A copy of the court order or other document authorizing or 
creating the trust or guardianship.


Sec. 3502.30   If I am a United States corporation, what information do 
I have to provide?

    If you are a corporation, an officer or authorized attorney-in-fact 
must submit a signed statement setting forth:
    (a) The State or territory in which the corporation is 
incorporated;
    (b) The name and citizenship, and percentage of stock owned, held, 
or controlled by, of any stockholder owning, holding, or controlling 
more than 10 percent of the stock of the corporation;
    (c) The names of the officers authorized to act on behalf of the 
corporation; and
    (d) That the corporation's acreage holdings, and those of any 
stockholder identified under paragraph (b) of this section, do not 
exceed that allowed.


Sec. 3502.33   If I represent an applicant as an attorney-in-fact, do I 
have to submit anything to BLM?

    You must submit evidence of your authority to act on behalf of the 
applicant. The applicant must also submit a separate statement as to 
qualifications and acreage holdings unless the power of attorney 
specifically authorizes and empowers you to make or to execute such 
statements on his or her behalf.


Sec. 3502.34   What if there are other parties in interest?

    If you are not the sole party in interest to a permit or lease, you 
must submit with your application the names of all other parties who 
hold or will hold any interest in the application or in the permit or 
lease, when issued. All interested parties must furnish appropriate 
evidence of their

[[Page 54392]]

qualifications to hold permit or lease interest.


Sec. 3502.40   What happens if an applicant for a permit, an applicant 
for a preference right lease, or a successful bidder to a competitive 
lease dies before the permit or lease is issued?

    (a) If probate of the estate has been completed or is not required, 
BLM will issue the permit or lease to the heirs or devisees, or their 
guardian. BLM will recognize the heirs or devisees or their guardian as 
the record title holders of the permit or lease. They must file the 
following information with BLM:
    (1) A certified copy of the will or decree of distribution, if any, 
and if not, a statement signed by the heirs that they are the only 
heirs and citing the provisions of the law of the deceased's last 
domicile showing that no probate is required; and
    (2) A statement signed by each of the heirs or devises with 
reference to citizenship and holdings similar to that required by 
Sec. 3502.27. If the heir or devisee is a minor, the statement must be 
signed by the guardian or trustee.
    (b) If probate is required but has not been completed, BLM will 
issue the permit or lease to the executor or administrator of the 
estate. BLM will consider the executor or administrator to be the 
record title holder of the permit or lease. He or she must submit the 
following information:
    (1) Evidence that the person who, as executor or administrator 
submits forms of lease and bond, has authority to act in that capacity 
and to sign those forms;
    (2) Evidence that the heirs or devisees are the only heirs or 
devisees of the deceased; and
    (3) A statement signed by each heir or devisee concerning 
citizenship and holdings, as required by Sec. 3502.27.


Sec. 3502.41   What happens to a permit or lease if a permittee or 
lessee dies?

    If the permittee or lessee dies, BLM will recognize as the record 
title holder of the permit or lease:
    (a) The executor or administrator of the estate, if probate is 
required but has not been completed and they have filed the evidence 
required by Sec. 3502.40(b); or
    (b) The heirs or devisees, if probate has been completed or is not 
required, if they have filed evidence required by Sec. 3502.40(a).


Sec. 3502.42   What happens if the heir is not qualified?

    Consistent with the provisions of the Mineral Leasing Act (30 
U.S.C. 184(g)), BLM will allow unqualified heirs to hold ownership for 
not more than two years. During that period, the heir must either 
become qualified or divest himself or herself of the interest.

Subpart 3503--Areas Available for Leasing


Sec. 3503.10   What areas are not available for leasing of any of the 
minerals covered by this part?

    The Secretary of the Interior is prohibited from leasing lands on 
any of the following Federal areas:
    (a) Land recommended for wilderness allocation by the surface 
managing agency;
    (b) Lands within BLM wilderness study areas;
    (c) Lands designated by Congress as wilderness study areas; and
    (d) Lands within areas allocated for wilderness or further planning 
in Executive Communication 1504, Ninety Sixth Congress (House Document 
Number 96-119), unless such lands are allocated to uses other than 
wilderness by a land and resource management plan or have been released 
to uses other than wilderness by an act of Congress.


Sec. 3503.11   Are there any other areas in which I cannot get a permit 
or lease for the minerals covered by this part?

    You may not obtain a prospecting permit or lease for the solid 
leasable and hardrock minerals in the following areas:
    (a) Lands within the boundaries of any unit of the National Park 
System, except as expressly authorized by law;
    (b) Lands within Indian Reservations, except the Uintah and Ouray 
Indian Reservation, Hillcreek Extension, State of Utah;
    (c) Lands within incorporated cities, towns and villages;
    (d) Lands within the National Petroleum Reserve-Alaska and oil 
shale reserves and within the national petroleum reserves;
    (e) Lands acquired by the United States for development of helium, 
fissionable material deposits or other minerals, except leasable 
minerals, essential to the defense of the country;
    (f) Lands acquired by foreclosure or otherwise for resale;
    (g) Acquired lands reported as surplus under the Federal Property 
and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.);
    (h) Any tidelands or submerged coastal lands within the continental 
shelf adjacent or littoral to any part of lands within the jurisdiction 
of the United States; and
    (i) Lands located adjacent to or within Searles Lake, California 
are not available for potassium prospecting permits. BLM will lease 
potassium in this area by competitive bidding.


Sec. 3503.12   For what areas can I receive a sulphur lease or permit?

    BLM may issue sulphur leases and permits for any public domain 
lands in the States of Louisiana and New Mexico. You can also obtain 
sulphur leases or permits for Federal Acquired lands nationwide, 
subject to the exceptions listed in 43 CFR 3503.10 and 3503.11.


Sec. 3503.13   For what areas can I receive a hardrock lease or permit?

    Subject to the consent of the surface managing agency, you can 
obtain hardrock leases and permits only in the following areas:
    (a) Lands identified in the Reorganization Plan No. 3 of 1946, for 
which jurisdiction for mineral leasing was transferred to the Secretary 
of the Interior. These include lands originally acquired under the 
following acts:
    (1) 16 U.S.C. 520 (Weeks Act);
    (2) Title II of the National Industrial Recovery Act (40 U.S.C. 
401, 403a and 408;
    (3) The 1935 Emergency Relief Appropriation Act (48 Stat. 115 and 
118);
    (4) Section 55 of Title I of the Act of August 24, 1935 (49 Stat. 
750 and 781); and
    (5) The Act of July 22, 1937 (7 U.S.C. 1011(c) and 1018) 
[repealed];
    (b) Lands added to the Shasta National Forest by Act of March 19, 
1948 (62 Stat. 83);
    (c) Public Domain Lands within the National Forests in Minnesota 
(16 U.S.C. 508(b));
    (d) Lands in New Mexico that are portions of Juan Jose Lobato Grant 
(North Lobato) and Anton Chica Grant (El Pueblo) as described in 
section 1 of the Act of June 28, 1952 (66 Stat. 285);
    (e) Lands in the Shasta and Trinity Units of the Whiskeytown-
Shasta-Trinity National Recreation Areas;
    (f) The following National Park Lands:
    (1) Lake Mead National Recreation Area;
    (2) Ross Lake and, in accordance with 16 U.S.C. 906-1(b), Lake 
Chelan Recreation Area;
    (3) Glen Canyon National Recreation Area; and
    (4) Lands in the Whiskeytown Unit of the Whiskeytown-Shasta-Trinity 
National Recreation Area;
    (g) Lands patented to the State of California for park or other 
purposes where minerals were reserved to the United States; and
    (h) White Mountains National Recreation Area, Alaska.

[[Page 54393]]

Sec. 3503.14  For what areas can I get a lease or permit for asphalt?

    You may obtain leases for asphalt only on certain Federal lands in 
the State of Oklahoma. You may not obtain prospecting permits for 
asphalt.


Sec. 3503.15  How can I lease the gold or silver reserved to the United 
States on land I hold under a private land claim in New Mexico?

    If you are the holder of the remaining record title interest or 
operating rights interest in confirmed private land grants in the State 
of New Mexico you can lease gold and silver reserved to the United 
States. 43 CFR part 3580, subpart 3581 discusses the requirements for 
leasing silver and gold.


Sec. 3503.16  May I obtain permits or leases for sand and gravel in 
Nevada under the terms of this part?

    You may not get new leases or permits. However, any sand and gravel 
lease already issued for certain lands patented to the State of Nevada 
can be renewed at the expiration of its initial term, for successive 
additional terms of 5 years.


Sec. 3503.20  What if the lands I'm interested in are administered by 
an agency other than BLM?

    (a) BLM will lease or permit public domain lands administered by 
other agencies only after consulting with the surface management 
agency. When required by law, BLM will also obtain the consent of the 
surface management agency.
    (b) Before issuing leases or permits on acquired lands, BLM must 
obtain written consent from the surface management agency. For 
preference right lease applications, where the surface management 
agency has consented to the prospecting permit, BLM will consult with 
that agency before approving the lease. At that time, the surface 
management agency may request supplemental data regarding surface 
disturbance and reclamation.
    (c) If a surface management agency requires special stipulations to 
a lease or permit as a condition of granting its consent, or refuses to 
consent to the issuance of the lease or permit, you may pursue any 
administrative remedies provided by that agency. If you notify BLM 
within 30 days of receipt of BLM's decision that you have requested the 
surface management agency to reconsider its decision, BLM will suspend 
the time for filing an appeal under 43 CFR part 4 until a decision is 
reached by the surface management agency.


Sec. 3503.21  What happens if the surface of the lands I'm interested 
in belongs to a non-Federal political subdivision or charitable 
organization?

    If the United States has conveyed or transferred the surface of the 
lands included within your permit or lease application to any State or 
political subdivision, agency or instrumentality thereof, or a college 
or any other educational corporation or association, or a charitable or 
religious corporation or association, BLM must notify them by certified 
mail of your application for a permit or lease. BLM will give the 
surface owner a reasonable time, not to exceed 90 days, to suggest any 
lease stipulations necessary for the protection of existing surface 
improvements or uses, provide reasons for the stipulations, or file any 
objections to the issuance of the lease or permit. BLM will make the 
final decision whether to issue or deny the lease and which, if any, 
stipulations identified by the surface owner will be included within 
the lease terms, based on how the interests of the United States would 
best be served.


Sec. 3503.25  Can BLM issue permits and leases for Federal minerals 
underlying private surface?

    Yes. Where the United States has disposed of certain lands under 
specific land disposal statutes, and those statutes reserved certain 
leasable or hardrock minerals to the United States together with the 
right to prospect for, mine, and remove the minerals under applicable 
leasing laws and regulations, BLM will manage and dispose of those 
minerals under this part.


Sec. 3503.28  Does BLM incorporate any special requirements to protect 
the lands and resources?

    BLM will specify stipulations, including those specified by the 
surface management agency or private surface owner, to your permit or 
lease to ensure adequate utilization and protection of the lands and 
their resources. (See also 43 CFR part 3580.)


Sec. 3503.30  How should I describe the lands I'm applying for in my 
application?

    If the lands are in States that are part of the Public Land Survey 
System and if those lands have been surveyed or are included within an 
approved protracted survey, describe the lands by legal subdivision, 
section, township, and range.


Sec. 3503.31  What if the lands are in States that are part of the 
Public Lands Survey System, but have not been surveyed on the ground, 
are not shown on the records as protracted surveys, or do not conform 
to the public land surveys?

    Describe such lands by metes and bounds in accordance with standard 
survey practices. Connect your description by courses and distances 
between successive angle points to an official corner of the public 
land surveys or, for accreted lands, to an angle point that connects to 
a point on an official corner of the public lands survey to which the 
accretions belong.


Sec. 3503.32  Are there any alternative methods of describing acquired 
lands?

    Yes. You may describe acquired lands in the manner as discussed 
above. You may instead use the description shown on the deed or other 
document that conveyed title to the United States. If you are applying 
for less than the entire tract acquired by the United States, you must 
describe the land using courses and distances tied to a point on the 
boundary of the requested tract. Where a tract number has been assigned 
by the acquiring agency to the identical tract you wish to lease or 
permit, you may describe those lands by the tract number, as long as 
you include a map which clearly shows the location of the lands sought 
with respect to the administrative unit or the project of which they 
are a part. In States outside of the Public Lands Survey System, you 
should describe the lands by tract number, and include a map.


Sec. 3503.33  Are there any size or shape limitations on the lands I 
can apply for?

    Generally, a quarter-quarter section or a lot is the smallest legal 
subdivision for which you may apply. The lands must be in reasonably 
compact form.


Sec. 3503.36  Will BLM issue a lease for unsurveyed lands?

    All leased areas must be surveyed. If you are applying for a permit 
or lease on lands for which BLM or the surface management agency 
determines that a survey is needed, you will be required to pay for the 
survey. If BLM intends to issue a lease by competitive bidding, BLM 
will pay for surveying the lands.


Sec. 3503.37  Is there a limit to the acreage of lands I can hold under 
permits and leases?

    Yes. The limits are summarized in the table.

[[Page 54394]]



----------------------------------------------------------------------------------------------------------------
                                                                                                       Maximum  
                                             Nationwide acreage        Maximum acreage in any one    acreage for
            Affected mineral                     limitation                       State              a permit or
                                                                                                        lease   
----------------------------------------------------------------------------------------------------------------
Asphalt................................  (Applies to OK only)......  2,560 acres...................          640
Gilsonite..............................  (Not applicable)..........  7,680 acres...................        5,120
Hardrock minerals......................  (Not applicable)..........  20,480 acres total, 10,240            2,560
                                                                      acres in leases, unless                   
                                                                      increased up to 20,480 for                
                                                                      orderly mine development.                 
Phosphate..............................  Not to exceed 20,480 acres  (Not applicable)..............        2,560
                                          in permits or leases.                                                 
Potassium..............................  (Not applicable)..........  80,000 acres (larger if               2,560
                                                                      necessary for extraction of               
                                                                      sodium from concentrated                  
                                                                      brines in connection with an              
                                                                      existing mining operation).               
Sodium.................................  (Not applicable)..........  5,120 acres (may be increased         2,560
                                                                      to 15,360 acres to facilitate             
                                                                      an economic mine).                        
Sulphur................................  (Not applicable)..........  1,920 acres in 3 leases or              640
                                                                      permits.                                  
----------------------------------------------------------------------------------------------------------------

Sec. 3503.38  How does BLM compute my acreage holdings?

    BLM computes acreage holdings as follows:
    (a) The maximum acreage in any one State refers to either public 
domain lands or acquired lands. Under a lease or permit for acquired 
lands, you may not hold acreage for leasable minerals greater than the 
public domain acreage for the same minerals allowed to be held under 
the Act. BLM will not charge public domain lease holdings against 
acquired lands lease holdings and vice versa; these holdings are not 
interchangeable.
    (b) Where the United States owns only a fractional interest in the 
mineral resources of lands, BLM will charge only that part of the total 
acreage involved in your lease or permit which is proportionate to the 
United States' interest as acreage holdings. Example: If the United 
States holds a 25% interest in 200 acres, you will be charged with 50 
acres (200 x .25).
    (c) BLM will not charge any acreage in a future interest lease 
against your acreage limitations until the date the lease takes effect.
    (d) Your acreage holdings for acreage limitation purposes will be 
proportionate to your direct interest and your indirect interest 
through stock or other instruments of ownership or control of the 
association or corporation in the total lease and permit acreage. You 
will not, however, be charged with your share of any acreage holdings 
of a corporation or association unless you own 10 percent or more 
interest through stock or other instruments of ownership or control of 
the association or corporation in the association or corporation.


Sec. 3503.39  Where do I file my application and other necessary 
documents?

    BLM requires that your initial application be filed in the State 
Office administering the lands for which you are applying or in the BLM 
office specified in our correspondence with you. BLM considers a 
document to be filed when it is received in that office.


Sec. 3503.40  Will BLM make the information in my application available 
to the public?

    All information that you submit under these regulations is subject 
to disclosure upon request, unless the information is exempt from 
disclosure under the regulations implementing the Freedom of 
Information Act (5 U.S.C. 552) at 43 CFR part 2, or unless otherwise 
provided in this part.

Subpart 3504--Fees, Rental, Royalty and Bonds


Sec. 3504.11  What forms of payment will BLM and MMS accept?

    Any payment you submit must be by U.S. currency, postal money 
order, or negotiable instrument payable in U.S. currency. Payments made 
to MMS may also be made by electronic funds transfer.


Sec. 3504.12  What payments do I send to BLM and what payments do I 
send to MMS?

    (a) Filing fees and rentals.
    (1) You should pay all filing fees and all first-year rentals and 
all bonus bids for leases to the BLM State office with jurisdiction 
over the lands you are interested in. Make your instruments payable to 
the Department of the Interior-Bureau of Land Management. See 43 CFR 
part 1800, subpart 1821 for a list of BLM addresses.
    (2) You should pay all second-year and subsequent rentals and all 
other payments for leases to the Department of the Interior-Minerals 
Management Service.
    (b) Royalties. You should pay all royalties on producing leases and 
all payments under leases in their minimum production period to the 
MMS.


Sec. 3504.15  What are the rental rates for the different commodities?

    Rental rates for prospecting permits for all commodities are $.50 
per acre. Rental rates for leases for each commodity are shown in the 
table. The rental payment must be for the total acreage. Round up any 
fractional acreage to the next highest acre. If you do not know the 
exact acreage, compute the total acreage by assuming each of the 
smallest subdivisions is 40 acres. Pay the minimum rental or the per-
acre rental, whichever is greater. The minimum rental is $20 per lease 
or permit for all commodities except asphalt, which has no minimum 
rental.

----------------------------------------------------------------------------------------------------------------
                                                                             Sulphur/                           
          Annual lease rental per acre            Phosphate      Sodium     Gilsonite     Asphalt      Hardrock 
----------------------------------------------------------------------------------------------------------------
1st year.......................................         $.25         $.25         $.50         $.25           $1
2nd year.......................................          .50          .50          .50          .50            1
3rd year.......................................          .50          .50          .50          .50            1
4th year.......................................            1          .50          .50          .50            1
5th year.......................................            1          .50          .50          .50            1
6th year through lease end.....................            1            1          .50            1            1
----------------------------------------------------------------------------------------------------------------


[[Page 54395]]

Sec. 3504.16  When is my rental due after the first year of the lease?

    Pay the rental in advance each year on or before the anniversary of 
the effective date of the lease. You must pay rental for each acre or 
fraction of an acre within your lease as long as the lease is in 
effect. BLM will credit your rental for any year against the first 
royalties as the royalties accrue under the lease during that year.


Sec. 3504.17  What happens if I do not pay my rental in a timely 
fashion?

    BLM will notify you that unless you pay within 30 days from receipt 
of the notification, BLM will take action to cancel your lease.


Sec. 3504.20  What are the requirements for paying royalties on 
production?

    You must pay royalties on any production from your lease in 
accordance with the terms specified in the lease. See Sec. 3504.25 for 
minimum royalty amounts. You must pay royalty on a percentage of the 
quantity or gross value of the output of the produced commodity at the 
point of shipment to market.


Sec. 3504.21  How does BLM determine the royalty rate?

    BLM determines the royalty rate on a case-by-case basis, subject to 
certain minimum royalty rates:
    (a) The royalty rate for phosphate and sulphur cannot be less than 
5% of the gross value of the output of the commodity or related 
mineral.
    (b) The royalty rate for potassium and sodium cannot be less than 
2% of the quantity or gross value of the output of the commodity or 
related product at the point of shipment to market.
    (c) There is no minimum royalty rate for gilsonite and hardrock 
minerals.
    (d) The royalty rate for asphalt cannot be less than 25 cents per 
ton of 2,000 pounds of marketable production.


Sec. 3504.22  How will I know what the royalty rate is on my lease 
production?

    If BLM offered the lease competitively, the rates are in the notice 
of lease sale. If you applied for a noncompetitive lease, BLM will send 
you a royalty rate schedule for your concurrence and signature before 
we issue the lease. BLM attaches production royalty rates to, and makes 
them a part of, all leases. BLM determines the rate on an individual 
case basis before we offer the lease.


Sec. 3504.25  Do I have to produce a certain amount per year?

    You are required to produce a minimum amount or pay a minimum 
royalty in lieu of production each lease year, beginning with the sixth 
lease year or the first full year of a renewed or readjusted lease. 
This requirement applies to all mineral leases described in part 3500 
that BLM issues, reviews, or readjusts after April 22, 1996. The 
minimum royalty payment is $3 per acre or fraction of an acre payable 
in advance. BLM will credit this payment to your production royalties 
for that year only. You are exempt from these minimum production and 
royalty requirements if you have hardrock mineral leases or development 
or operating agreements subject to escalating rentals.


Sec. 3504.26  May I create overriding royalties on my Federal lease?

    Yes. However, if BLM determines that the overriding royalty 
interest you created might cause premature abandonment of the property 
or cause marginally economic or low grade deposits to not be mined, BLM 
will issue a decision ordering you to reduce or suspend the overriding 
royalty to as little as 1% of the gross value at point of royalty 
assessment. Where more than one overriding royalty interest is 
involved, BLM will apply any suspension or reduction to the respective 
interests in the manner agreed upon by the interest holders. In the 
absence of an agreement, BLM will apply the suspension or reduction in 
inverse order of the dates the overriding interests were created.


Sec. 3504.50  Do I have to file a bond?

    Yes. BLM will establish individual permit and lease bond amounts on 
a case-by-case basis. In making this determination, BLM will consider 
the estimated cost of reasonable stabilization and reclamation of the 
areas to be disturbed and conformance with permit and lease terms. The 
minimum bond requirement for prospecting permits is $1,000. The minimum 
bond requirement for leases is $5,000.


Sec. 3504.51  How do I file my bond?

    File your bond in the BLM State office where you applied for a 
permit or lease. You must use an approved BLM form. File one copy, 
executed by you as principal or, in the case of surety bonds, by both 
you and an acceptable surety.


Sec. 3504.55  What types of bonds are acceptable?

    You can file either a personal bond or a surety bond.
    (a) Personal bonds may be in the form of:
    (1) Cash;
    (2) Cashier's check;
    (3) Certified check; or
    (4) Negotiable U.S. Treasury bonds of a value equal to the amount 
of the bond. If you submit Treasury bonds, include a conveyance giving 
the Secretary full authority to sell the securities in case you default 
in your performance of the terms and conditions of your lease or 
permit.
    (b) Surety bonds must be issued by qualified surety companies 
approved by the Department of the Treasury. A list of qualified 
sureties is available from any BLM State Office.


Sec. 3504.56  If I have more than one lease or permit, may I combine 
bond coverage?

    Yes. In lieu of separate bonds for each lease or permit, you may 
file a bond to cover all leases and permits for a specific mineral in 
any one State, or nationwide. BLM establishes the amount of the bond; 
however, the minimums are shown below:
    (a) Statewide bonds will be no less than $25,000. File these bonds 
in the BLM State Office for the State where your leases are located.
    (b) Nationwide bonds will be no less than $75,000. File these bonds 
in any BLM State Office.


Sec. 3504.60  Under what circumstances might BLM elect to change the 
amount of my bond?

    BLM may increase or decrease the amount of your bond when BLM 
determines that a change in coverage is appropriate.


Sec. 3504.65  What happens to my bond should I fail to carry out my 
obligations under a permit or lease?

    BLM will take payment from your bond to cover any obligations on 
which you default. Your bond will be reduced accordingly. If the surety 
makes a payment, BLM will reduce the face amount of the surety bond and 
the surety's liability by the amount of the payment.


Sec. 3504.66  Will I be required to restore my bond to the full amount 
if payment has been made from my bond?

    Yes. After any default, BLM will notify you of the amount needed to 
bring your bond up to the required level. We will give you no more than 
six months to post a new bond or increase the existing bond to its pre-
default level. You may elect to file separate or substitute bonds for 
each lease or permit. If you do not replace your bond, BLM may cancel 
the leases or permits covered by the bond.


Sec. 3504.70  When will BLM terminate the period of liability of my 
bond?

    BLM will terminate the period of liability of a surety or other 
provider of

[[Page 54396]]

a bond at any time. The bond provider must provide 30 days notice to 
BLM and to the principals whose obligations are secured. You may not 
conduct any operations after a bond is terminated, without providing a 
new bond satisfactory to BLM. BLM will also terminate the period of 
liability on an old bond once a new bond has been filed and BLM accepts 
it.


Sec. 3504.71  When will BLM release my bond?

    BLM will release your bond when we have determined, after the 
passage of a reasonable period of time, that you have paid all 
royalties, rentals, penalties, and assessments, satisfied all permit or 
lease obligations, reclaimed the site, and taken effective measures to 
ensure that the mineral prospecting or development activities will not 
have an adverse effect on surface or subsurface resources.

Subpart 3505--Prospecting Permits


Sec. 3505.10  What is a prospecting permit?

    (a) A prospecting permit gives you, as the permittee, the exclusive 
right to prospect on and explore lands available for leasing to 
determine the existence of a valuable deposit of:
    (1) Phosphate;
    (2) Potassium;
    (3) Sulphur;
    (4) Sodium
    (5) Gilsonite; or
    (6) A hardrock mineral.
    (b) You may remove only material needed to demonstrate the 
existence of a valuable mineral deposit.


Sec. 3505.11  How do I obtain a prospecting permit?

    You must provide three copies of the official BLM application form 
and file it with the BLM office with jurisdiction over the lands you 
are interested in.


Sec. 3505.12  How do I complete the application form?

    Your application must be legible and dated. It must contain your or 
your agent's original signature. Your application must also include:
    (a) Your name and address;
    (b) A statement of your qualifications and holdings (See subpart 
3503 of this part);
    (c) A complete and accurate land description in compliance with 
subpart 3502 of this part;
    (d) Three copies of any maps if needed to accompany the 
description; and
    (e) The name of the commodity or commodities for which you are 
applying.


Sec. 3505.15  Is there an acreage limit for my application?

    The acreage in your application must not exceed or cause your 
holdings for that mineral to exceed the maximum allowed under the 
permit. BLM cannot issue a permit or lease if it causes you to exceed 
the State or nation-wide limits. See the table at Sec. 3503.37.


Sec. 3505.20  Is there a fee or payment required with my application?

    Yes. You must include with your application:
    (a) A nonrefundable filing fee of $25; and
    (b) The first year's rental, as shown in Sec. 3504.15.


Sec. 3505.25  How does BLM prioritize applications for prospecting 
permits?

    BLM will prioritize applications based on the time of filing. Where 
more than one application is filed at the same time for the same 
commodity on the same lands, BLM will hold a public drawing in 
accordance with 43 CFR part 1820, subpart 1821 to determine priority.


Sec. 3505.30  Can I amend or change my application once filed?

    Yes. However, if your amendment adds lands, BLM will assign 
priority to your amended application for such additional lands from the 
date you filed the amended application. You must send the rental for 
the added lands with your amended application. You do not need to 
submit additional filing fees. You cannot exceed the acreage 
limitations specified in Sec. 3503.37.


Sec. 3505.31  May I withdraw my application once filed?

    Yes. If you withdraw your application in whole or in part before 
BLM signs the permit, your rental payment will be refunded 
proportionate to the extent of your withdrawal. BLM will retain the 
filing fee.


Sec. 3505.40  After submitting my application, do I need to submit 
anything else?

    Yes. After initially reviewing your permit application, but before 
issuing the prospecting permit, BLM will require you to submit three 
copies of an exploration plan. You must also submit a bond. See subpart 
3504 of this part, especially Sec. 3504.50, for information on bonds.


Sec. 3505.45  What is an exploration plan?

    An exploration plan shows how you intend to determine the existence 
and workability of a valuable deposit. Your exploration plan must, 
insofar as possible, include the following:
    (a) The names, addresses and telephone numbers of persons 
responsible for operations under your plan and to whom BLM will deliver 
notices and orders;
    (b) A brief description, including maps, of geologic, water, 
vegetation and other physical factors, and the distribution, abundance 
and habitat of fish and wildlife, particularly threatened and 
endangered species, that your proposed exploration may affect, and the 
present land use in and adjacent to the area;
    (c) A narrative description showing:
    (1) The method of exploration and types of equipment you will use;
    (2) The measures you will take to prevent or control fire, soil 
erosion, pollution of surface and ground water, pollution of air, 
damage to fish and wildlife or their habitat and other natural 
resources and hazards to public health and safety, including specific 
actions necessary to meet all applicable laws and regulations;
    (3) The method for plugging drill holes; and
    (4) The measures you will take for surface reclamation, which must 
include as appropriate:
    (i) A reclamation schedule;
    (ii) The method of grading, backfilling, soil stabilization, 
compacting and contouring;
    (iii) The method of soil preparation and fertilizer application;
    (iv) The type and mixture of shrubs, trees, grasses, forbs or other 
vegetation to be planted; and
    (v) The method of planting, including approximate quantity and 
spacing;
    (d) The estimated timetable for each phase of the work and for 
final completion of the program;
    (e) Suitable topographic maps or aerial photographs showing 
existing bodies of surface water, topographic, cultural and drainage 
features, and the proposed location of drill holes, trenches and roads; 
and
    (f) Other data which BLM may require.


Sec. 3505.50  How will I know if my application has been approved or 
rejected?

    If BLM accepts your application, we will issue your lease or 
permit. If BLM rejects your application, we will issue a decision 
document to you by certified mail (return receipt requested). In it BLM 
will:
    (a) Detail the reasons for rejecting your application;
    (b) Identify any items you will need to correct in your 
application; and
    (c) Describe how you can appeal an adverse decision.

[[Page 54397]]

Sec. 3505.51  May I correct or refile my application if BLM rejects it?

    If you file a new, corrected application for the same lands within 
30 days of receipt of the rejection, BLM will apply the nonrefundable 
filing fee and rental payment submitted with your original application 
to the new application, provided the serial number of the original 
application is shown on your new application. BLM will establish 
priority for the permit as of the date the new application is filed. If 
you do not file a new application within 30 days of rejection, only 
your rental payment will be refunded.


Sec. 3505.55  What are my obligations to BLM under an approved 
prospecting permit?

    You must:
    (a) Pay your annual rental in a timely fashion. See Secs. 3504.15 
and 3504.16;
    (b) Comply with all permit terms and stipulations attached to the 
permit by the surface management agency;
    (c) Conduct only those exploration activities approved as part of 
your existing exploration plan; and
    (d) Discontinue activities following expiration of the initial term 
unless and until your permit has been extended by BLM.


Sec. 3505.60  How long is my prospecting permit in effect?

    Your prospecting permit will be effective for an initial term of 2 
years.


Sec. 3505.61  Can BLM extend the term of my prospecting permit?

    BLM may extend prospecting permits for phosphate and hardrock for a 
period not to exceed 4 years, and for potassium and Gilsonite a period 
not to exceed 2 years. Sodium and sulphur prospecting permits cannot be 
extended.


Sec. 3505.62  Under what conditions can I extend my prospecting permit?

    Your permit may be extended if you can prove that:
    (a) You have explored with reasonable diligence and been unable to 
determine the existence and workability of a valuable deposit covered 
by the permit. Reasonable diligence means that, in the opinion of BLM, 
you have drilled a sufficient number of core holes or performed other 
comparable prospecting to explore the permit area within the time 
allowed; or
    (b) Your failure to perform diligent prospecting activities was due 
to conditions beyond your control.


Sec. 3505.64  How do I apply for an extension?

    There is no application form. You must request an extension at 
least 90 days prior to expiration of the permit. Accompany your request 
with a nonrefundable filing fee of $25; and the first year's rental, in 
accordance with Secs. 3504.15 and 3504.16.


Sec. 3505.65  What information must I include in my request for 
extension?

    Your request must:
    (a) Demonstrate that you have met the conditions for extension set 
out in 43 CFR 3505.62;
    (b) Describe your previous diligent prospecting activities on the 
permit; and
    (c) Show how much additional time you need to complete prospecting 
work.


Sec. 3505.66  If approved, when is my extension effective?

    Your permit extension will become effective as of the date BLM 
approves it, or on the expiration of the original permit, whichever is 
later.


Sec. 3505.70  May I relinquish my prospecting permit?

    Yes. You may relinquish the entire prospecting permit or any legal 
subdivision thereof. A partial relinquishment must clearly describe the 
exact acreage you want to relinquish. BLM will not accept a 
relinquishment if you are not in compliance with the requirements of 
your permit. Once BLM accepts the request, your relinquishment will be 
effective as of the date you filed it with BLM. The lands you 
relinquished, if otherwise available, will be open to any new 
applications immediately after BLM notes the relinquishment on the 
official status records. If you relinquish part or all of your permit, 
you lose any right or entitlement to any preference right lease to the 
lands covered by the relinquishment.


Sec. 3505.75  What happens if I fail to pay the rental?

    Your prospecting permit will automatically terminate if you fail to 
pay the rental on or before the anniversary date of the permit. BLM 
will note the termination of your permit for failure to pay rental on 
the official status records. Upon notation, BLM will make the lands 
covered by the permit available for filing of new permit applications.


Sec. 3505.80  What happens when my permit expires?

    Your permit will expire at the end of its initial or extended term, 
as applicable, without notice. The lands will be available for new 
applications 60 days after expiration, unless you timely file for an 
extension, or you file an application for a preference right lease.


Sec. 3505.85  Can BLM cancel my prospecting permit for reasons other 
than failure to pay rental?

    Yes. BLM can cancel your permit if you fail to comply with the 
Mineral Leasing Act, any of the other acts applicable to your specific 
permit, these regulations, or any of the permit terms or stipulations. 
BLM will provide you 30 days notice, within which you must correct your 
default. If your default continues, BLM may cancel your permit. BLM's 
waiver of one particular cause for cancellation will not prevent BLM 
from canceling your permit for any other cause, or for the same cause 
occurring at any other time. Unless you file an appeal, BLM will note 
the cancellation of your permit on BLM's official status records, at 
which time the lands covered by the permit will be available for filing 
of new applications by any qualified applicant.

Subpart 3506--Exploration Licenses


Sec. 3506.10  What is an exploration license?

    An exploration license allows you to explore known, unleased 
mineral deposits to obtain geologic, environmental and other pertinent 
data concerning such deposits.


Sec. 3506.11  What must I do to obtain an exploration license?

    Apply by submitting an exploration plan as described in subpart 
3505 of this part, along with your request for an exploration license. 
No specific form is required. When BLM approves the exploration plan, 
we will attach the approved plan to, and make it a part of, the 
license. You must also publish a Notice of Exploration inviting others 
to participate in exploration under the license on a pro-rata cost-
sharing basis.


Sec. 3506.12  Who prepares and publishes the notice?

    BLM prepares the notice using your information and posts the notice 
and your exploration plan in the BLM office for 30 days. You must 
publish the Notice of Exploration once a week for three consecutive 
weeks in at least one newspaper of general circulation in the area in 
which the lands are located.


Sec. 3506.13  What information must I provide to BLM for inclusion in 
my Notice of Exploration?

    You must include:
    (a) Your name and address;
    (b) A description of the lands;
    (c) The address of the Bureau office where your exploration plan 
will be available for inspection; and
    (d) An invitation to the public to participate in the exploration 
under the license.

[[Page 54398]]

Sec. 3506.14  What happens after I publish the Notice of Exploration?

    Any person who seeks to participate in the exploration program must 
notify you and BLM in writing within 30 days after the final 
publication and BLM posting.


Sec. 3506.15  Who resolves differences and approves the license and 
participants?

    BLM does, by issuing the license naming the participants and 
acreage covered. BLM may also establish core hole spacing and resolve 
any other issue necessary to minimize surface disturbance and 
inconsistencies between proposed exploration plans.


Sec. 3506.20  After my license is issued, may I modify my exploration 
plan?

    Yes. BLM may approve modifications of your exploration plan upon 
your request.


Sec. 3506.25  Once I have a license, what are my responsibilities?

    You must provide to BLM all data obtained during exploration. BLM 
will consider the data confidential and will not make the data public 
until the earlier of the following occurs:
    (a) The areas involved have been leased; or
    (b) BLM determines that the data are not exempt from disclosure 
under the Freedom of Information Act.

Subpart 3507--Preference Right Leases


Sec. 3507.11  What do I have to do to be entitled to a preference right 
lease?

    You must have a prospecting permit for the area you want to lease 
and meet the following conditions:
    (a) Phosphate, Gilsonite and hardrock minerals. You must 
demonstrate that you have discovered a valuable deposit within the 
period covered by your prospecting permit.
    (b) Sodium, potassium, and sulphur. In addition to demonstrating 
that you have discovered a valuable deposit, BLM must determine that 
the lands are chiefly valuable for the subject minerals.
    (c) Asphalt. You can get only a fringe acreage lease or a 
competitive lease for asphalt, not a prospecting permit.


Sec. 3507.15  How do I apply for a preference right lease?

    No specific form is required. You must submit three copies of your 
application within 60 days after your prospecting permit expires.


Sec. 3507.16  What information must my application for a preference 
right lease include?

    Your application must contain:
    (a) A statement of your qualifications and holdings as specified in 
subpart 3503 of this part;
    (b) Three maps showing utility systems, the location of any 
proposed development or mining operations and facilities incidental 
thereto, including the approximate locations and the extent of the 
areas you will use for pits, overburden and tailings, and the location 
of water sources or other resources which you may use in the proposed 
operations or incidental facilities;
    (c) A narrative statement addressing:
    (1) The anticipated scope, method and schedule of development 
operations, including the types of equipment to be used;
    (2) The method of mining anticipated, including the best available 
estimate of the mining sequence and production rate; and
    (3) The relationship, if any, between the mining operations 
anticipated on the lands applied for and existing or planned mining 
operations, or facilities incidental thereto, on adjacent Federal or 
non-Federal lands; and
    (d) If your application is for less than the lands covered by your 
prospecting permit, a complete and accurate description of the lands as 
described and included in your prospecting permit.


Sec. 3507.20  Is there a fee or payment required with my application?

    Yes. With your application, submit the first year's rent, according 
to the provisions in 43 CFR 3504.15.


Sec. 3507.25  Under what circumstances will BLM reject my application?

    BLM will reject your application for a preference right lease if:
    (a) You did not discover a valuable deposit of mineral(s) covered 
by the prospecting permit;
    (b) You did not submit requested information in a timely manner;
    (c) You did not otherwise comply with the requirements of this 
subpart; or
    (d) In the case of sodium, potassium and sulphur, BLM determines 
that the lands are not chiefly valuable for the mineral commodity 
specified in the permit.


Sec. 3507.26  What do I need to submit to demonstrate that I've found a 
valuable deposit?

    To prove you have found a valuable deposit, provide BLM the 
information listed in 43 CFR 3593.1. You must have collected the data 
during the life of the prospecting permit. BLM may request supplemental 
data to determine the extent and character of the deposit, the 
anticipated mining and processing methods and costs, the anticipated 
location, kind and extent of necessary surface disturbance and measures 
to be taken to reclaim that disturbance, and the profitability of 
mineral development.


Sec. 3507.30  If I disagree with BLM's reasons for rejecting my 
preference right lease, may I appeal?

    Yes. If you believe that the facts in your application are 
sufficient to show that you are entitled to a lease, you have a right 
to a hearing before an Administrative Law Judge in the Office of 
Hearings and Appeals, Department of Interior, under the procedures in 
43 CFR parts 4 and 1840. At the hearing, you will have to show, by a 
preponderance of the evidence, that you discovered a valuable deposit 
of the mineral.

Subpart 3508--Competitive Leases


Sec. 3508.11  What lands are available for competitive leasing?

    BLM issues a competitive lease on unleased lands where BLM knows 
that a deposit of a valuable mineral deposit exists. In such areas, BLM 
will issue you an exploration license, but not a prospecting permit. 
You must compete with any other interested parties to get the lease.
    (a) In general, BLM may offer competitive leases for lands where 
prospecting or exploratory work is unnecessary to determine the 
existence or workability of a valuable mineral deposit.
    (b) Lands in and adjacent to Searles Lake, California, are 
available for competitive potassium leases without regard to quality or 
quantity of potassium deposits that may be present.


Sec. 3508.12  How do I get a competitive lease?

    Notify BLM of areas in which you are interested. Additionally, BLM 
may designate certain lands for competitive leasing. In both cases, 
upon determining the lands are available for leasing, BLM publishes a 
notice identifying the lands available, conditions under which bids 
will be accepted, and the date and time bids will be opened. BLM awards 
competitive leases only through sale to the qualified bidder who offers 
the highest acceptable bonus bid.


Sec. 3508.14  How much time does BLM allow for a bid to be submitted?

    Prior to offering a lease, BLM will publish a notice of lease sale 
for at least three consecutive weeks in a newspaper of general 
circulation in the area in which the lands are situated. BLM will also 
post the notice of lease sale for 30 days in the public room of the BLM

[[Page 54399]]

office with jurisdiction over the lands being offered. The notice will 
specify the date by which bids must be submitted.


Sec. 3508.15  What information will the notice of lease sale include?

    The notice will include:
    (a) The time and place of sale;
    (b) The bidding method;
    (c) A description of the tract being offered;
    (d) A description of the mineral deposit being offered;
    (e) The minimum bid BLM will consider; and
    (f) Information on where a detailed statement of the terms and 
conditions of the lease sale and of the proposed lease may be obtained.


Sec. 3508.16  What information will the detailed statement include?

    The detailed statement will include:
    (a) The proposed lease terms and conditions, including the rental, 
royalty rates, bond amount, and special stipulations for the particular 
tract;
    (b) An explanation of how you may submit your bid;
    (c) Notification that you must accompany your bid with a statement 
of your qualifications (See subpart 3502 of this part) and a deposit of 
one-fifth of your bid amount;
    (d) Notification that, if you are the successful bidder, you must 
pay, before BLM issues the lease, your proportionate share of the total 
cost of the publication of the sale notice. Your share is based on the 
number of tracts you bid on successfully, divided into the total number 
of tracts offered for sale;
    (e) A warning concerning 18 U.S.C. 1860 which prohibits unlawful 
combination or intimidation of bidders;
    (f) A statement that the Secretary reserves the right to reject any 
and all bids, and the right to offer the lease to the next qualified 
bidder if the successful bidder fails to obtain the lease for any 
reason; and
    (g) Any other information BLM deems appropriate.


Sec. 3508.20  How will BLM conduct the sale and handle bids?

    BLM will open and announce all bids at the time and date specified 
in the notice of lease sale, but will not accept or reject bids at that 
time. BLM will not consider bids received after the time specified in 
the notice of sale. You may withdraw or modify your bid prior to the 
time specified in the notice of sale.


Sec. 3508.21  What happens if I am the successful bidder?

    If you are the highest qualified bidder and your bid meets or 
exceeds fair market value, as determined by BLM through appraisal or 
other appropriate means, BLM will send you copies of the lease on the 
form attached to the detailed statement. You must sign and return the 
lease form, pay the balance of the bonus bid, pay the first year's 
rental, pay the publication costs, and furnish the required lease bond, 
within the time BLM specifies.


Sec. 3508.22  What happens if my bid is rejected?

    (a) If your bid is the high bid and is rejected because you did not 
sign the lease form and pay the balance of the bonus bid, or otherwise 
comply with this subpart, you forfeit to the United States your deposit 
of one-fifth of the bonus bid amount.
    (b) If BLM determines that your high bid must be rejected for 
reasons beyond your control, the deposit submitted with the bid will be 
returned to you.

Subpart 3509--Fractional and Future Interest Leases


Sec. 3509.10  What are future interest leases?

    BLM issues future interest leases to those holders of mineral 
interests whose present interest will revert to the Federal government 
at some future date. Future interest leases allow the present interest 
holders to continue using their present mineral right once the Federal 
government acquires it.


Sec. 3509.11  For what lands will BLM issue future interest leases?

    BLM will issue noncompetitive leases for future interests in lands 
on which there is an existing mining operation or in which the present 
mineral interest holder has established the existence of a valuable 
deposit, if BLM determines it is in the public interest.


Sec. 3509.12  What if I am a mining owner or operator, and I am 
applying for a future interest lease as part of my existing operation?

    You must meet the qualifications set forth in subpart 3502 of this 
part, and you must pay fair market value for the mineral deposit when 
title vests in the United States. BLM will not issue you a lease until 
you meet those requirements.


Sec. 3509.15  Who may apply for a future interest lease?

    Only the person who has a present interest in the minerals may 
apply for a future interest lease. BLM may issue future interest leases 
to applicants who own all or substantially all of the present mineral 
interest (over 50%), regardless of whether that person owns as fee 
owner, lessee, or holder of operating rights.


Sec. 3509.16  How do I apply for a future interest lease?

    No specific form is required. Include a $25 filing fee with 
application. Submit the application to the BLM office with jurisdiction 
over the lands. You must file no less than 1 year before the mineral 
interests vest with the United States.


Sec. 3509.17  What information must I include in my application for a 
future interest lease?

    Your application must include a description of the land and the 
same information BLM requires when you apply for a present interest 
Federal lease, including your certification that you meet the 
qualifications requirements (see subpart 3502 of this part). You also 
need to include evidence of your title and of the extent of your rights 
to the present interest in the mineral deposits either by submitting a 
certified abstract of title or a title certificate. You must submit the 
names of the other owners of the mineral interests. If you are owner of 
the operating rights to the mineral by means of a contract with the 
owner, you need to submit three copies of the mineral contract or lease 
also.


Sec. 3509.20  When does my future interest lease take effect?

    Unlike other permits or leases, your future interest lease will be 
effective on the date the minerals vest in the United States, as stated 
in the lease.


Sec. 3509.25  Under what conditions would BLM reject my application for 
a future interest lease?

    BLM will reject your future interest application if you do not meet 
the qualifications in Sec. 3509.15, or for any of the following 
reasons:
    (a) You filed your application less than one year before the 
minerals vest in the United States. If, at the time the minerals vest 
in the United States, BLM has on file an application for a future 
interest lease that was filed less than one year earlier, BLM will 
reject the application. After the mineral right vests in the United 
States, BLM will accept only applications for present interest leases 
or permits.
    (b) If you as the lessee would have a total interest of less than 
50% once the future interest lease becomes effective, BLM may reject 
the application unless we determine it would be in the best interests 
of the government to issue the lease.


Sec. 3509.30  May I withdraw my application for a future interest 
lease?

    Yes. You can withdraw your application as long as you file the

[[Page 54400]]

withdrawal before the lease is signed. BLM will retain the application 
fee.

Subpart 3510--Lease Terms and Conditions


Sec. 3510.15  How long will my lease be in effect?

    Your lease will be issued for the term specified in the table.

--------------------------------------------------------------------------------------------------------------------------------------------------------
             Lease term                     Phosphate                Sodium                Potassium           Sulphur/hardrock          Gilsonite      
--------------------------------------------------------------------------------------------------------------------------------------------------------
(a) Initial lease term (years).....  Indeterminate.........  10....................  Indeterminate........  20...................  20 years, and as long
                                                                                                                                    thereafter as       
                                                                                                                                    Gilsonite is        
                                                                                                                                    produced in paying  
                                                                                                                                    quantities.         
(b) Periods of renewal or            Readjustment at the     Renewal for 10 year     Readjustment at the    Renewal for 10 year    Readjustment at the  
 readjustment.                        end of each 20 year     term at end of          end of each 20 year    term at end of         end of each 20 year 
                                      period.                 initial term and each   period.                initial term and       period.             
                                                              10 year period.                                each 10 year period.                       
--------------------------------------------------------------------------------------------------------------------------------------------------------

Sec. 3510.20  Do certain leases allow me to mine other commodities as 
well?

    Yes. Sodium leases may authorize the mining of potassium compounds 
as related products, and potassium leases may authorize the mining of 
sodium compounds as related products. A phosphate lease allows you to 
use deposits of silica, limestone or other rock on the lease in the 
processing or refining of phosphate, phosphate rock, and associated 
minerals mined from the leased lands. You must pay royalty for the use 
of these materials as specified in your lease.


Sec. 3510.21  If I am mining calcium chloride, can I obtain a 
noncompetitive mineral lease to produce the commingled sodium chloride?

    If you are producing calcium chloride in paying quantities from an 
existing mine which you control, you may apply to BLM for a fringe acre 
lease to produce the commingled sodium chloride. You must already have 
authorization, under 43 CFR part 3800, for the locatable minerals. You 
must also meet the other requirements of this part for the commingled 
leaseable minerals.


Sec. 3510.25  What is meant by lease readjustment and lease renewal?

    (a) If your lease is issued subject to readjustment, BLM will 
notify you of the readjusted terms at the end of each 20-year period. 
If BLM does not notify you of readjusted terms, those leases continue 
for another 20-year period under the same terms and conditions.
    (b) If you have a lease that requires renewal, BLM will issue the 
lease for an initial term as specified in the table in Sec. 3510.15. 
You must apply for a renewal of the lease at least 90 days prior to the 
end of its initial term in order to extend the lease for an additional 
term. If you fail to renew these leases, they expire and the lands 
become available for re-leasing by BLM.


Sec. 3510.26  What if I object to the terms and conditions BLM proposes 
for a readjusted lease?

    (a) You will be given 60 days after receiving the proposed 
readjusted terms to file any objection. If BLM does not receive an 
objection the proposed readjusted terms will be in effect. If you file 
an objection, BLM will issue a decision responding to your objection. 
If you consider the decision to be adverse to your interests, you will 
have the right of appeal under 43 CFR parts 4 or 1840.
    (b) Except as provided in the following section, the readjusted 
lease terms and conditions will be effective pending the outcome of any 
appeal provided for in paragraph (a) of this section unless BLM 
provides otherwise.


Sec. 3510.27  How will a lease renewal affect my priority as lessee?

    BLM bases your priority as a permittee or lessee, as related to 
other permittees or lessees on the same lands, on the date we issued 
your initial permit or lease. This applies regardless of the date of 
any readjustments, extensions, or renewals.


Sec. 3510.30  If I appeal BLM's proposed new terms, do I have to 
continue paying royalties or rentals while my appeal is being 
considered?

    You must continue to pay royalties or rentals at the original rate. 
Your obligation to pay any increased readjusted royalties, minimum 
royalties and rentals will be suspended while your objection or appeal 
is considered. However, any increased charges accrue beginning with the 
effective date of the readjustment, while final action on your appeal 
is pending. If the increased charges are sustained by a decision on the 
objection or on appeal, you must pay the accrued balance, plus interest 
at the rate specified for late payment by the MMS (See 43 CFR part 
3590).


Sec. 3510.50  How do I renew my lease?

    To renew leases, you must file an application at least 90 days 
prior to the expiration of the lease term. No specific form is 
required. You must file three copies of your application with BLM 
together with a nonrefundable $25 filing fee and an advance rental 
payment of $1 per acre or fraction of an acre.

Subpart 3511--Assignments and Subleases


Sec. 3511.11  Once I am issued a permit or lease, can I assign or 
sublease it?

    You may assign or sublease your permit or lease in whole or in part 
to any person, association, or corporation qualified to hold a permit 
or lease.


Sec. 3511.12  Is there a fee for requesting an assignment or sublease?

    Yes. When you submit your instrument for assignment of record title 
or operating rights, or for overriding royalty assignment, you must pay 
a nonrefundable filing fee of $25. BLM will not accept any instrument 
not accompanied by the filing fee.


Sec. 3511.13  What do I submit to get BLM approval for an assignment of 
record title?

    Within 90 days of final execution of the assignment, you must 
submit three copies of your instrument for assignment of each permit or 
lease. The instrument must contain:
    (a) The name and current address of the assignee;
    (b) The interest held by you and the interest you plan to assign;
    (c) The serial number of the affected permit or lease;
    (d) The percentage of overriding royalties retained;

[[Page 54401]]

    (e) The date and your original signature on each copy, as the 
assignor; and
    (f) The assignee must also send BLM a request for approval of the 
assignment which must contain:
    (1) A statement of the assignee's qualifications and holdings, as 
required by subpart 3502 of this part;
    (2) Date and signature of the assignee; and
    (3) A $25 filing fee.


Sec. 3511.16  How do I assign or transfer a sublease or operating 
rights to my lease or permit?

    You must file one copy of the sublease or agreement to assign 
operating rights between you and the operator within 90 days from the 
date of final execution of these agreements. The assignee must also 
file a signed and dated request for approval accompanied by a statement 
of qualifications and holdings and a $25 fee. BLM will notify you with 
a formal decision indicating approval or disapproval.


Sec. 3511.18  Do I have to notify BLM if I intend to transfer an 
overriding royalty to another party?

    Yes. Although BLM does not approve these transfers, you must file 
all overriding royalty interest assignments with the BLM within 90 days 
from the date of execution. Your filing must be accompanied by the 
assignee's statement of qualifications as provided for in subpart 3503 
of this part and the $25 filing fee.


Sec. 3511.20  Will BLM approve my assignment or sublease if I have 
outstanding liabilities?

    No. Before BLM will approve your assignment of a lease or permit, 
your account must be in good standing or the assignee and his or her 
surety must provide written acceptance of your outstanding liabilities 
under the permit or lease. In addition, the assignee must either 
furnish a new bond equivalent to your existing bond or obtain consent 
of the surety on your bond to substitute the assignee as the principal.


Sec. 3511.25  If I assign my permit or lease, when do my obligations 
under the permit or lease end?

    You and your surety remain responsible for the performance of all 
obligations under the permit or lease until BLM approves the 
assignment. Even then, you will continue to be responsible for 
obligations that accrued prior to BLM's approval of the assignment, 
whether or not they were identified at the time of the transfer.


Sec. 3511.30  What are the responsibilities of a sublessor and a 
sublessee?

    After BLM's approval of a sublease becomes effective, the sublessor 
and sublessee become jointly and severally liable for performance of 
all obligations under the permit or lease.


Sec. 3511.33  Does an assignment or sublease alter the permit or lease 
terms?

    No. An assignment or sublease will not extend the life of the 
permit or the readjustment or renewal periods of the lease, or alter 
other terms or conditions of the permit or lease.

Subpart 3512--Waiver, Suspension, or Reduction of Rental and 
Minimum Royalties


Sec. 3512.11  Can I be relieved of the lease requirements of rental, 
minimum royalty, or production royalty?

    Yes. BLM has a process which may allow you temporary relief from 
the lease requirements of rental, minimum royalty, or production 
royalty.


Sec. 3512.12  What criteria does BLM consider in approving a waiver, 
suspension, or reduction in rental or minimum royalty, or a reduction 
in the royalty rate?

    BLM may approve an application for a waiver, suspension, or 
reduction in rental or minimum royalty, or a reduction in the royalty 
rate, if approval:
    (a) Is in the interest of conservation;
    (b) Will encourage the greatest ultimate recovery of the resource; 
and
    (c) Is necessary to promote development of the mineral resources or 
the lease cannot be successfully operated under existing terms.


Sec. 12.15  How do I apply for relief?

    You must file two copies of an application with BLM which contain 
the following information for all leases in the application:
    (a) The serial numbers;
    (b) The name of the record title holder(s);
    (c) The name of the operator if different from the record title 
holder(s);
    (d) A description of the lands by legal subdivision;
    (e) A map showing the serial number and location of each mine or 
excavation and the extent of the mining operations;
    (f) A tabulated statement of the minerals mined and subject to 
royalty for each month covering a period of not less than 12 months 
immediately preceding the date of filing of your application, and the 
average production mined per day for each month;
    (g) If you are applying for relief from the minimum production 
requirement, complete information as to why you did not attain the 
minimum production;
    (h) A detailed statement of expenses and costs of operating the 
entire lease, and the income from the sale of any leased products;
    (i) All facts showing why you cannot successfully operate the mines 
under the royalty or rental fixed in the lease and other lease terms;
    (j) For reductions in royalty, full information as to whether you 
pay royalties or payments out of production to anyone other than the 
United States, the amounts so paid and efforts made to reduce them;
    (k) Agreements of the leaseholder(s) and the non-Federal royalty 
holders to a permanent reduction which ensures that the non-Federal 
royalty interests do not exceed one-half the proposed reduced royalties 
paid to the United States; and
    (l) Any other information needed by BLM to ascertain whether the 
request satisfies the standards in Sec. 3512.12.


Sec. 3512.20  What is a suspension of operations and production?

    A suspension of operations and production is an action by which BLM 
orders or allows you to cease operations in the interest of 
conservation.


Sec. 3512.21  What is the effect of a suspension of operations and 
production?

    BLM will extend the term of your lease by any periods of suspension 
of operations and production. BLM will reduce the minimum annual 
production requirements of your lease proportionately for that portion 
of a lease year in which a suspension of operations and production is 
effective. You do not have to pay rental and minimum annual production 
royalties beginning the first day of the lease month if the suspension 
becomes effective that day or beginning the first day of the following 
lease month if the suspension becomes effective on any day other than 
the first day of the lease month.


Sec. 3512.22  How do I apply for a suspension of operations and 
production?

    You must submit two copies of an application to BLM that explains 
why it is in the interest of conservation to suspend your operations 
and production.


Sec. 3512.25  When will my suspension of operations and production take 
effect?

    Your suspension takes effect on the date specified by BLM.


Sec. 3512.26  When and how does my suspension of operations and 
production expire or terminate?

    Your suspension will end on the first day of the lease month in 
which you

[[Page 54402]]

resume operations or production, or upon expiration of the suspension, 
whichever occurs first. All lease terms and obligations resume on this 
date. If you have paid rentals in advance, BLM will allow credit on the 
next rental or royalty due under the lease.


Sec. 3512.30  What is a suspension of operations?

    A suspension of operations is an action by which BLM may, upon your 
application, suspend operations on your lease when marketing conditions 
are such that your leases cannot be operated except at a loss.


Sec. 3512.31  What is the effect of a suspension of operations?

    A suspension of operations does not affect the term of the lease or 
the annual rental payment. BLM will reduce the minimum annual 
production requirements of your lease proportionate to that portion of 
the lease year for which a suspension of operations is effective. You 
do not have to pay minimum annual production beginning the first day of 
the lease month if the suspension becomes effective that day or 
beginning the first day of the following lease month if the suspension 
becomes effective on any day other than the first day of the lease 
month.


Sec. 3512.32  How do I apply for a suspension of operations?

    You must submit an application in duplicate to BLM which contains 
sufficient information to establish that your lease cannot be operated 
except at a loss.


Sec. 3512.33  When will my suspension of operations take effect?

    Your suspension will be effective on the date specified by the BLM.


Sec. 3512.34  When and how does my suspension of operations expire or 
terminate?

    The suspension of minimum annual production ends on the first day 
of the lease month in which you resume operations, or upon expiration 
of the suspension, whichever occurs first. Your obligation for minimum 
annual production resumes at this time.

Subpart 3513--Lease Relinquishments, Terminations, and 
Cancellations


Sec. 3513.11  Can I relinquish my lease or any part of my lease?

    If you can show that the public interest will not be impaired, you 
may relinquish your entire lease or any legal subdivision included in 
your lease upon BLM's approval. Notify BLM in writing that you intend 
to relinquish all or part of your lease. Include your signature and 
date. If you relinquish your lease, you will be subject to a continued 
obligation to make payment of all accrued rentals and royalties and to 
provide for the preservation of any mines or productive works or 
permanent improvements on the leased lands in accordance with the 
regulations and terms of your lease.


Sec. 3513.12  What should I include in a request for partial 
relinquishment?

    Any partial relinquishment must clearly describe the lands you are 
relinquishing and give the exact area involved.


Sec. 3513.15  Where do I file my relinquishment?

    File the relinquishment in the BLM office that issued the lease.


Sec. 3513.20  When is my relinquishment effective?

    When BLM accepts your relinquishment, it will be effective as of 
the date you filed it.


Sec. 3513.25  When does my lease expire?

    (a) Sodium, sulphur, asphalt, and hardrock mineral leases expire at 
the end of the lease term, unless you file a timely application for 
lease renewal, or at the time your application for renewal is rejected.
    (b) Potassium, phosphate and gilsonite leases continue for so long 
as you comply with the lease terms and conditions which are subject to 
periodic readjustment.


Sec. 3513.30   Can my lease be canceled?

    Yes. BLM may institute appropriate proceedings in a court of 
competent jurisdiction to forfeit and cancel your lease if:
    (a) You fail to comply with the provisions of the Act, or of 
regulations in effect when your lease is issued or readjusted; or
    (b) You default in the performance or observance of any of the 
terms, covenants, and stipulations of the lease and continue to fail or 
default for 30 days after BLM notifies you in writing of your default.


Sec. 3513.31   Can BLM waive cancellation or forfeiture?

    Yes, but BLM's waiver of any particular cause of forfeiture will 
not prevent BLM from canceling and forfeiting the lease for any other 
cause or for the same cause occurring at any other time.


Sec. 3513.32   Will BLM give me an opportunity to remedy a violation of 
the lease terms?

    Yes. If you own or control, directly or indirectly, any interest in 
any lease in violation of any of the provisions of the Act, BLM will 
give you 30 days to remedy the violation or to show cause why the 
Attorney General should not be requested to institute proceedings in a 
court of competent jurisdiction to:
    (a) Cancel the lease;
    (b) Forfeit the interest so owned;
    (c) Compel disposal of the interest so owned or controlled; or
    (d) If a lease is issued improperly, and requires amending, it will 
be subject to administrative cancellation and BLM will issue an amended 
lease.


Sec. 3513.50   What happens to a bona fide purchaser if the lease 
assigned to him or her is subject to cancellation?

    (a) If you are a qualified bona fide purchaser, BLM will not cancel 
your lease or your interest in a lease even if we had decided to cancel 
your predecessor's lease. However, as purchaser, you are responsible 
for ensuring that the lease is in compliance with the terms and 
conditions required by BLM.
    (b) BLM will promptly take action to dismiss any party who shows it 
is a bona fide purchaser from any legal proceedings to cancel the 
lease.

Subpart 3514--Noncompetitive Leasing--Fringe Acreage Leases and 
Lease Modifications


Sec. 3514.11   If I already have a Federal lease, or the mineral rights 
on adjacent private lands, may I lease adjoining Federal land that 
contains the same deposits without competitive bidding?

    Yes. If the adjoining Federal lands are available for leasing, you 
can lease them noncompetitively, even if they are known to contain a 
deposit of the mineral you are leasing. BLM will either issue a new 
lease for these lands (fringe acreage) or add the lands to your 
existing Federal lease (modification).


Sec. 3514.12   What do I need to do to obtain a lease modification or 
fringe acreage lease?

    (a) You must file three copies of your application with the BLM 
office with jurisdiction over the lands. No specific application form 
is required.
    (b) Your application must be accompanied by a nonrefundable filing 
fee of $25, and an advance rental payment in accordance with the rental 
rate for the mineral commodity you are seeking. If you are seeking to 
modify an existing lease, BLM will base the rental payment on the rate 
in effect for the lease being modified.

[[Page 54403]]

    (c) Your application must:
    (1) Reference the serial number of the lease if the lands adjoin an 
existing Federal lease;
    (2) Contain a complete and accurate description of the lands 
desired;
    (3) Show that the mineral deposit specified in your application 
extends from your adjoining lease or from private lands owned or 
controlled by you; and
    (4) Include proof that you own or control the mineral deposit in 
the adjoining lands if they are not under a Federal lease.


Sec. 3514.15   What does BLM do with my application?

    BLM can issue or modify a lease under this subpart only if we 
determine that:
    (a) The lands are contiguous to your existing Federal lease or to 
non-federal lands owned or controlled by you;
    (b) The new lease is not in excess of maximum size allowed in a 
lease, as specified in Sec. 3503.37;
    (c) The acreage of the modified lease, including additional lands, 
is not in excess of the maximum size allowed for a lease, as specified 
in Sec. 3503.37;
    (d) The mineral deposit is not in an area of competitive interest;
    (e) The lands applied for lack sufficient reserves of the mineral 
resource to warrant independent development; and
    (f) Leasing the lands will conserve natural resources and will 
provide for economical and efficient recovery as part of a mining unit.


Sec. 3514.20   Are there any fees required to modify my existing lease 
or obtain a fringe acreage lease?

    Before BLM issues a new fringe acreage lease or modifies your 
existing lease, you must pay a bonus bid in an amount determined by BLM 
based on an appraisal or other appropriate means, but not less than $1 
per acre or fraction of an acre.


Sec. 3514.21   What terms and conditions apply to fringe acreage leases 
and lease modifications?

    Your fringe acreage lease is a new lease. Therefore, BLM may impose 
terms and conditions different from those in your original non-Federal 
lease, if any. BLM will issue a modified lease subject to the same 
terms and conditions as in the original lease.

Subpart 3515--Mineral Lease Exchange


Sec. 3515.10   May I exchange my lease or lease right for another 
mineral lease or lease right?

    Yes. If BLM concludes that operations on your preference right or 
outstanding lease are not in the public interest, or that operations on 
the lands to be leased in exchange would be in the public interest, you 
may relinquish your current lease or preference right in exchange for a 
mineral lease of other lands of equal value for any leasable or 
hardrock mineral covered by this part.


Sec. 3515.12   What regulatory provisions apply if I want to exchange a 
lease or lease right?

    (a) Except as provided in paragraph (b) of this section, this 
subpart and the relevant provisions of 43 CFR part 2200 apply to 
exchanges.
    (b) Exchanges involving the issuance of coal leases, coal lease 
bidding rights or coal lease modifications are subject to the 
regulations in 43 CFR part 3400, subpart 3435 rather than to the 
regulations in this part.


Sec. 3515.15   Under what circumstances will BLM consider initiating an 
exchange?

    (a) BLM will notify you that we are prepared to consider exchange 
of a mineral lease if you relinquish your existing leasing rights.
    (b) BLM may seek to exchange any part or all of the lands under 
your preference right lease application(s) or lease(s).
    (c) BLM must find that the exchange is in the public interest under 
both of the following criteria:
    (1) The benefits of production from your existing lease or 
preference right lease would not outweigh the adverse effects, or 
threat of damage or destruction to agricultural production potential, 
or scenic, biological, geologic, historic, or other public interest 
values such as recreational use; archeological or historic values; 
threatened or endangered species; proximity of residential or urban 
areas; study for potential inclusion in the wilderness or wild and 
scenic rivers systems; and value for public uses, including public 
highways, airports, and rights-of-way from lease operations; and
    (2) The lands proposed for exchange are free from hazardous waste 
as defined under the authorities of the Clean Water Act (33 U.S.C. 
1251), Resource Conservation and Recovery Act (42 U.S.C. 6901) and the 
Comprehensive Environmental Response, Compensation and Liability Act 
(42 U.S.C. 9601).


Sec. 3515.18   Will I be notified that BLM is considering an exchange?

    Yes. The notice you receive will:
    (a) State why BLM believes an exchange would be in the public 
interest;
    (b) Ask whether you are willing to negotiate for an exchange;
    (c) Contain a description of the lands for which BLM would offer 
exchange terms; and
    (d) Allow you to describe the lands on which you would accept an 
exchange lease.


Sec. 3515.20   Can preference right lease rights be exchanged?

    Yes. In order to have a right that can be exchanged you must have 
timely submitted a preference right lease application. If you have 
demonstrated a right to a lease, BLM may, in lieu of issuing the 
preference right lease, negotiate for the selection of appropriate land 
to exchange and establish lease terms for those lands.


Sec. 3515.21   What types of lands can be exchanged?

    The lands to be leased in exchange for your existing rights must 
be:
    (a) Subject to leasing under the authorities of this part; and
    (b) Acceptable to both you and BLM as a lease tract containing a 
deposit of leasable or hardrock minerals of equal value to your 
existing rights.


Sec. 3515.22   What if the lands to be exchanged are not of equal 
value?

    If the lands are not equal in value the grantor or the Secretary, 
as circumstances require, may equalize the value by making a monetary 
payment to the party receiving the property of lesser value. Such 
payments cannot exceed 25 percent of the total value of the land or 
interest transferred out of Federal ownership. The parties may mutually 
agree to waive the monetary payment, if the Secretary determines that:
    (a) A waiver will expedite the exchange;
    (b) The public interest will be better served by the waiver than by 
the payment; and
    (c) The amount to be waived is no more than 3 percent of the value 
of the lands being transferred out of Federal ownership, or $15,000, 
whichever is less.


Sec. 3515.23   Might I be required to submit additional information?

    You must be willing to provide geologic and economic data to enable 
BLM to determine the fair market value of your preference right or 
lease to be relinquished.

[[Page 54404]]

Sec. 3515.25   If I agree on the lands to be leased in exchange, what 
happens next?

    After you and BLM agree on the lands to be leased in exchange, BLM 
will publish a notice of the proposed exchange in the Federal Register 
and in a newspaper(s) in the county(s) where both the preference right 
or lease lands and the proposed exchange lease lands are located. The 
notice will include:
    (a) The time and place of a public hearing(s);
    (b) BLM's preliminary findings that the exchange is in the public 
interest; and
    (c) A request for public comments on the merits of the proposed 
exchange.


Sec. 3515.26  When will BLM make a decision on the exchange?

    After the public hearing BLM will prepare a written decision that 
issuance of the exchange lease is in the public interest. BLM will then 
process the exchange lease.


Sec. 3515.27  Will BLM attach any special provisions to the exchange 
lease?

    The terms will contain:
    (a) A statement that you quitclaim and relinquish any right or 
interest in your preference right lease application or lease exchanged; 
and
    (b) A statement setting forth BLM's finding that the lease issuance 
is in the public interest.

Subpart 3516--Use Permits


Sec. 3516.10  What are use permits?

    Use permits allow you to use the surface of lands not included 
within your lease for purposes associated with the proper development 
of your mineral deposits. Use permits are not prospecting permits.


Sec. 3516.11  What commodities allow use permits?

    Use permits are issued only in support of phosphate and sodium 
leases. For phosphate leases, BLM may issue you a permit to use up to 
80 acres on unappropriated and unentered lands. For sodium leases BLM 
may issue you a permit to use up to 40 acres.


Sec. 3516.12  What activities can I conduct under a use permit?

    Phosphate use permits authorize you to conduct activities to 
properly extract, treat, or remove the mineral deposits. Sodium use 
permits authorize you to occupy camp sites, develop refining works and 
to use the surface for other purposes connected with and necessary to 
the proper development and use of the deposits. BLM cannot grant use 
permits on National Forest System lands.


Sec. 3516.15  How do I apply for use permits?

    You must file three copies of your application in the BLM office 
administering the lands you are interested in. There is no specific 
form required. Include a nonrefundable $25 filing fee and the first 
year's rental. Calculate the rental in accordance with Sec. 3504.15.


Sec. 3516.16  What must I include with my application?

    Provide specific reasons why you need the additional lands, 
describe the lands applied for, provide any information demonstrating 
that the lands are suitable and appropriate for your needs, and provide 
evidence that the lands are unoccupied and unappropriated. Your 
application must also contain an agreement to pay the annual charge 
identified in the permit.


Sec. 3516.20  Is there an annual fee or charge for use of the lands?

    Yes. You must pay the annual $1 per acre rental, or $20, whichever 
is greater, on or before the anniversary date of the permit.


Sec. 3516.30  What happens if I fail to pay the annual rental on my use 
permit?

    Your use permit will terminate automatically if you fail to pay the 
required rental within 30 days after BLM serves you a written notice of 
the rental requirement.

Subpart 3517--Special Provisions Applying to Hardrock Minerals


Sec. 3517.10  What are development contracts and processing and milling 
arrangements?

    Development contracts and processing and milling arrangements 
involving hardrock minerals are agreements between one or more hardrock 
mineral lessees and one or more other entities to justify large scale 
operations for the discovery, development, production, or 
transportation of ores.


Sec. 3517.11  Are leases and permits covered by approved agreements 
exempt from the acreage limitations?

    Yes. Hardrock mineral leases and permits committed to development 
contracts or processing or milling arrangements approved by BLM are 
exempt from acreage limitations.


Sec. 3517.15  How do I apply for one of these agreements?

    No specific form is required. Submit three copies of your 
application to the BLM office with jurisdiction over some or all of the 
lands in which you are interested. Include the following information:
    (a) Copies of the contract or other agreement affecting the Federal 
hardrock mineral leases or permits, or both;
    (b) A statement showing the nature and reason for your request;
    (c) A statement showing all the interests held in the area of the 
agreement by the designated contractor; and
    (d) The proposed or agreed upon plan of operation for development 
of the leased lands.


Sec. 3517.16  How does BLM process my application?

    (a) BLM considers whether the agreement will conserve natural 
resources and is in the public interest.
    (b) Once the agreement is signed by all the parties, BLM will 
approve it.


Sec. 3517.50  Can I collect mineral specimens for non-commercial 
purposes?

    You may collect mineral specimens for hobby, recreation, 
scientific, research or similar purposes. You do not need a prospecting 
permit from BLM for these activities. However, the surface management 
agency, including BLM, may require a use permit. That agency will issue 
the permit, subject to any fees, terms and conditions that the agency 
may impose.

[FR Doc. 96-26398 Filed 10-17-96; 8:45 am]
BILLING CODE 4310-94-P