[Federal Register Volume 64, Number 190 (Friday, October 1, 1999)]
[Rules and Regulations]
[Pages 53512-53556]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-25352]



[[Page 53511]]

_______________________________________________________________________

Part III





Department of the Interior





_______________________________________________________________________



Bureau of Land Management



_______________________________________________________________________



43 CFR Part 3500, et al.



Leasing of Solid Minerals Other Than Coal and Oil Shale; Final Rule

  Federal Register / Vol. 64, No. 190 / Friday, October 1, 1999 / Rules 
and Regulations  

[[Page 53512]]



DEPARTMENT OF THE INTERIOR

Bureau of Land Management

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

[WO-320-1330-01-24 A]
RIN 1004-AC49


Leasing of Solid Minerals Other Than Coal and Oil Shale

AGENCY: Bureau of Land Management, Interior.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Bureau of Land Management (BLM) is amending its 
regulations governing leasing of solid minerals other than coal and oil 
shale. The purpose of this rule is to comply with President Clinton's 
government-wide regulatory reform initiative to eliminate unnecessary 
regulations, and streamline and rewrite necessary regulations in plain 
English. Under the previous rule, each solid mineral commodity had its 
own separate regulations, much of which was repeated in each set of 
regulations. This rule now combines these solid minerals regulations 
into one set of regulations, streamlined, updated and re-written in 
plain English. The rule also clarifies the responsibilities of 
interested parties.

EFFECTIVE DATE: November 1, 1999.

ADDRESSES: You may send inquiries or suggestions to: Director (630), 
Bureau of Land Management, 1849 C Street, NW., Washington, DC 20240.

FOR FURTHER INFORMATION CONTACT: Philip Allard, (202) 452-5195, or 
Chris Fontecchio, (202) 452-5012.

SUPPLEMENTARY INFORMATION:

I. Background
II. Final Rule as Adopted
III. Responses to Comments
IV. Procedural Matters

I. Background

    On March 4, 1995, President Clinton issued a memorandum to all 
Federal Departments and Agencies directing them to simplify their 
regulations. In response, 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.
    BLM bases its regulatory program relating to solid minerals on 
several different statutes which give us the authority to regulate 
mineral leasing on Federal lands. The Mineral Leasing Act of 1920 (the 
Act), as amended and supplemented (30 U.S.C. 181 et seq.), provides for 
leasing of phosphate, potassium, gilsonite, and sodium mineral deposits 
on public domain lands. The Act also allows sulphur to be leased from 
public lands in Louisiana and New Mexico. The Act authorizes the 
Secretary of the Interior (Secretary) 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 (5 U.S.C. 
Appendix) transferred the responsibilities of the Department of 
Agriculture for hardrock mineral leasing to the Secretary in certain 
areas. The Mineral Leasing Act for Acquired Lands of 1947, as amended 
(30 U.S.C. 351-359), provides for the leasing of minerals from certain 
acquired lands, and authorizes the Secretary 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 National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) (NEPA) 
directs Federal agencies to consider the environmental impacts of their 
actions during the decision-making process. Finally, 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 BLM jurisdiction.
    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 (16 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) 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).
    When BLM last revised these regulations in 1986, they were written 
into separate parts covering specific mineral commodities. Under that 
organization, processes such as issuing exploration licenses and 
mineral leases were addressed in a similar or identical manner under 
each commodity section. This 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 (CFR).
    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 repetitive language. BLM understands 
that our readers want to be able to find particular subject matter 
easily in our regulations. We believe that the plain English approach, 
particularly the expanded table of contents, and the overall reduction 
in volume of BLM regulations, will make it easy for readers to find 
material that is of concern to them.
    In addition to rewriting the regulations for clarity, BLM is making 
the following substantive changes to the existing regulations:
    1. We are eliminating the requirement to re-describe the lands in 
an application if you have already properly described them and BLM has 
issued you a previous authorization. Thus, for example, you will not 
have to submit a land description when you apply for a preference right 
lease or for an assignment if it relates to all the same lands 
described in the prospecting permit or original lease. We will still 
require land descriptions for assignments of parts of the land 
described in the original prospecting permit or lease, and applicants 
will still need to identify the permit or lease by serial number.
    2. We have increased 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 is increasing this limitation to 96,000 acres. As the 
potash industry has matured, several mining operations are 
consolidating. BLM believes that increasing the State acreage 
limitation will enhance development of Federal reserves and help 
achieve the statutory goal of ultimate maximum recovery.

[[Page 53513]]

    3. We will now require you to submit three maps, instead of one, 
with your preference right lease application. This is consistent with 
other provisions in these regulations and with BLM's need for maps 
during our review of these applications. While it is easy for BLM to 
make copies of most application material, it is often difficult to 
duplicate maps. Obtaining additional maps from you will speed up our 
review.
    4. We state that we will not approve assignments of leases or issue 
or renew leases under these regulations to coal lessees and assignees 
who are not in compliance with the diligence requirements for coal 
leases found in section 2(a)2(A) of the Act (30 U.S.C. 201). This 
provision incorporates current BLM practice into regulations, thus it 
will not have any significant impact on the industry.
    5. These regulations add a provision at 43 CFR 3502.42 specifying 
that we will allow unqualified heirs to own a lease or permit for two 
years. During this time they can either become qualified or divest the 
interest.
    6. This final rule eliminates provisions authorizing future 
interest prospecting permits. BLM has rarely been called upon to issue 
such permits, since the current mineral interest holder can explore for 
minerals without a BLM permit until the mineral interest vests to the 
United States. If the mineral holder does demonstrate the existence of 
a valuable deposit of minerals before title transfers, we can issue 
future interest leases to the present interest holder for these 
minerals. We also added a provision to allow competitive bidding for 
future interest leases if there is more than one qualified present 
interest holder.
    7. This rule clarifies that leases exchanged must be of equal, 
rather than comparable, value. This change implements the provisions of 
the Federal Land Exchange Facilitation Act of 1988 (Pub. L. 100-409), 
which amended section 206 of FLPMA (43 U.S.C. 1716). The same Act also 
provided the government and any applicant greater flexibility than did 
previous requirements for making exchanges equal. We are incorporating 
this provision into the regulations at 43 CFR 3515.22. Section 3515.12 
states that the exchange-specific provisions of 43 CFR part 2200 apply.
    8. This rule clarifies the definition of the term ``valuable 
deposit.'' The current definition at 43 CFR 3500.0-5 is circular 
because it uses the phrase ``valuable mine'' in describing the term 
``valuable deposit.'' The new rule changes ``valuable mine'' to 
``profitable mine.'' Accordingly, Sec. 3507.18, which describes the 
information you must provide to us to prove that you have found a 
valuable deposit, says that we may request supplemental data to 
determine, among other things, mining and processing costs and the 
profitability of mineral development.
    9. BLM is modifying the requirements for applicants to disclose the 
identity and citizenship of major stockholders to add the disclosure of 
the percentage of their stock holdings. This change would help us 
enforce acreage limitations against those stockholders. The rule also 
eliminates a requirement found in the current rules to submit such 
information on the basis of foreign residency. This information is not 
needed to enforce any statutory limitations.
    10. This rule clarifies that we 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.

II. Final Rule as Adopted

    The most significant change in these regulations is that they are 
reorganized from several mineral-specific sections into sections based 
on the type of authorization. Since the proposed rule we have made 
slight changes to the organization, moving sections to put them in more 
logical sequences and groupings. Although the table of contents in the 
proposed rule divided section headers, in the form of questions, by 
subparts, we added subheadings in the final rule to help you find what 
you need more easily. We made this change because some of the subparts 
contain many sections, and the long list of questions made it difficult 
for readers to find what they need. Using the subheadings, you can 
narrow down your search for the regulatory section you need more 
quickly.
    The following cross-reference chart lists every section of the 
final rule and its origin in the existing rule. It also shows the 
existing part 3500 and shows where it has been moved to in this final 
rule.

------------------------------------------------------------------------
                New 3500                             Old 3500
------------------------------------------------------------------------
3501.1.................................  New
3501.5.................................  3500.0-5
3501.10................................  New
3501.16................................  3500.6
3501.17................................  3500.7
3501.20................................  3511.1
                                         3512.9-2
                                         3512.9-3
                                         3521.1
                                         3522.8-2
                                         3531.1
                                         3532.8-2
                                         3532.9-3
                                         3541.1
                                         3542.8-2
                                         3551.1
                                         3552.8-2
                                         3552.9-3
                                         3561.1
                                         3562.8-2
                                         3562.9-3
                                         3571.1
3501.30................................  3500.4
3502.10................................  3502.1
3502.13................................  3502.1(b)
3502.15................................  3500.3
                                         3502.1(c)
3502.20................................  3502.1(d)
3502.25................................  3502.2-1
3502.26................................  3502.2-1
3502.27................................  3502.2-2
3502.28................................  3502.2-3
3502.29................................  3502.2-3
3502.30................................  3502.2-4
3502.33................................  3502.2-6
3502.34................................  3502.3
3502.40................................  3502.2-5(a)
3502.41................................  3502.2-5(b)
3502.42................................  New
3503.10................................  New
3503.11................................  3500.8
3503.12................................  3542.1
3503.13................................  3560.3-1
                                         3560.3-2
                                         3560.3-3
                                         3560.3-4
                                         3562.1
3503.14................................  3570.2
3503.15................................  New, also in 3581
3503.16................................  New, also in 3586
3503.20................................  3500.9-1
                                         3507.4
                                         3516.4
                                         3523.2-2
                                         3525.2
                                         3526.4
                                         3533.2-2
                                         3535.2
                                         3536.4
                                         3543.2-2
                                         3545.2
                                         3546.4
                                         3553.2-2
                                         3555.2
                                         3556.4
                                         3564.2
                                         3564.4
                                         3574.2
                                         3575.4
3503.21................................  3500.9-2
3503.25................................  3500.9-3
3503.28................................  3511.7
                                         3521.6
                                         3541.6
                                         3512.8-4
                                         3521.5
                                         3522.8-4
                                         3531.6
                                         3532.8-4
                                         3541.5
                                         3542.8-4

[[Page 53514]]

 
                                         3551.6
                                         3552.8-4
                                         3561.5
                                         3562.8-4
                                         3571.5
3503.30................................  3501.1-1
                                         3501.1-2
3503.31................................  3501.1-1(c)
                                         3501.1-3
3503.32................................  3501.1-2(b)
3503.33................................  3501.1-1(a)
                                         3501.1-2(a)
3503.36................................  3501.1-1(d)
3503.37................................  3510.3
                                         3520.3
                                         3530.3
                                         3540.3
                                         3550.3
                                         3560.4
                                         3570.4
3503.38................................  3501.2
3503.40................................  3500.5(a)
3503.41................................  3500.5(b)
3504.11................................  3503.1-1
3504.12................................  3503.1-2
3504.12(a)(1)..........................  3506.2
                                         3507.5
                                         3512.3-1(c)
                                         3516.3(b)
                                         3517.1-1
                                         3522.3-1(c)
                                         3525.3-1(c)
                                         3526.3(b)
                                         3527.1-1
                                         3528.1
                                         3532.3-1(c)
                                         3536.3(b)
                                         3542.3-1(c)
                                         3546.3(b)
                                         3547.1
                                         3552.3-1(c)
                                         3556.3(b)
                                         3562.3-1(c)
                                         3565.3(b)
                                         3575.3(b)
                                         3576.1
3504.15................................  3511.2-1(a)
                                         3511.2-1(c)
                                         3512.8-3
                                         3521.2-1(a)
                                         3522.8-3
                                         3531.2-1(a)
                                         3532.8-3
                                         3541.2-1(a)
                                         3542.8-3
                                         3551.2-1(a)
                                         3552.8-3
                                         3561.2-1(a)
                                         3562.8-3
                                         3571.2-1(a)
3504.16................................  3511.2-1(a)
                                         3521.2-1(a)
                                         3531.2-1(a)
                                         3541.2-1(a)
                                         3551.2-1(a)
                                         3561.2-1(a)
                                         3571.2-1(a)
3504.17................................  3511.2-1(b)
                                         3521.2-1(b)
                                         3531.2-1(b)
                                         3541.2-1(b)
                                         3551.2-1(b)
                                         3561.2-1(b)
                                         3571.2-1(b)
3504.20................................  3511.2-2
                                         3521.2-2
                                         3531.2-2
                                         3541.2-2
                                         3551.2-2
                                         3561.2-2
                                         3571.2-2
3504.21................................  3503.2-1
                                         3511.2-2
                                         3521.2-2
                                         3531.2-2
                                         3541.2-2
                                         3551.2-2
                                         3561.2-2
                                         3571.2-2
3504.22................................  3503.2-1
3504.25................................  3503.2-2
3504.26................................  3503.2-3
3504.50................................  3504.1-1
                                         3504.1-4
                                         3511.6
                                         3512.7
                                         3521.4
                                         3522.7
                                         3528.2
                                         3531.5
                                         3532.7
                                         3541.4
                                         3542.7
                                         3547.2
                                         3551.5
                                         3552.7
                                         3561.4
                                         3566.2
                                         3562.7
                                         3571.4
                                         3576.2
3504.51................................  3504.1-2
3504.55................................  3504.1-3
3504.56................................  3504.1-5
3504.60................................  3504.1-6
3504.65................................  3504.2(a)
3504.66................................  3504.2(b)
3504.70................................  3504.3
3504.71................................  3504.3
3505.10................................  3507.1
                                         3512.2
                                         3522.2
                                         3532.2
                                         3542.2
                                         3552.2
                                         3560.5
                                         3562.2
3505.12................................  3560.7
3505.12................................  3512.3-1
                                         3522.3-1
                                         3532.3-1
                                         3542.3-1
                                         3552.3-1
                                         3562.3-1
3505.13................................  3512.3-2
                                         3522.3-2
                                         3532.3-2
                                         3542.3-2
                                         3552.3-2
                                         3562.3-2
3505.15................................  3512.3-2(c)
                                         3522.3-2(c)
                                         3532.3-2(c)
                                         3542.3-2(c)
                                         3552.3-2(c)
                                         3562.3-2(c)
3505.20................................  3512.3-1(c)
                                         3522.3-1(c)
                                         3532.3-1(c)
                                         3542.3-1(c)
                                         3552.3-1(c)
                                         3562.3-1(c)
3505.25................................  3512.4
                                         3512.5
                                         3522.4
                                         3522.5
                                         3532.4
                                         3542.5
                                         3542.4
                                         3552.4
                                         3552.5
                                         3562.4
                                         3562.5
3505.30................................  3512.5
                                         3522.5
                                         3532.5
                                         3542.5
                                         3552.5
                                         3562.5
3505.31................................  3512.6
                                         3522.6
                                         3532.6
                                         3542.6
                                         3552.6
                                         3562.6
3505.40................................  3512.3-3
                                         3512.7
                                         3522.3-3
                                         3522.7
                                         3532.3-3
                                         3532.7
                                         3542.3-3
                                         3542.7
                                         3552.3-3
                                         3552.7
                                         3562.3-3
                                         3562.7
3505.45................................  3512.3-3
                                         3522.3-3
                                         3532.3-3
                                         3542.3-3
                                         3552.3-3
                                         3562.3-3
3505.50................................  3512.3-4
                                         3512.8-1
                                         3522.3-4
                                         3522.8-1
                                         3532.3-4
                                         3532.8-4
                                         3542.3-4
                                         3542.8-1
                                         3552.3-4
                                         3552.8-1
                                         3562.3-4
                                         3562.8-1
3505.51................................  3512.3-4
                                         3522.3-4
                                         3532.3-4
                                         3542.3-4
                                         3552.3-4
                                         3562.3-4
3505.55................................  3512.8
                                         3512.8-3
                                         3522.8
                                         3522.8-3
                                         3532.8
                                         3532.8-3
                                         3542.8
                                         3542.8-3
                                         3552.8
                                         3552.8-3
                                         3562.8

[[Page 53515]]

 
                                         3562.8-3
3505.60................................  3512.8-1
                                         3522.8-1
                                         3532.8-1
                                         3542.8-1
                                         3552.8-1
                                         3562.8-1
3505.61................................  3512.9-1
                                         3532.9-1
                                         3552.9-1
                                         3562.9-1
3505.62................................  3512.9-1
                                         3532.9-1
                                         3552.9-1
                                         3562.9-1
3505.64................................  3512.9-2(a)
                                         3532.9-2(a)
                                         3552.9-2(a)
                                         3562.9-2(a)
3505.65................................  3512.9-2(b)
                                         3532.9-2(b)
                                         3552.9-2(b)
                                         3562.9-2(b)
3505.66................................  3512.9-3
                                         3532.9-3
                                         3552.9-3
                                         3562.9-3
3505.70................................  3509.1-1
3505.75................................  3509.2
3505.80................................  3509.3-1
3505.85................................  3509.4-1
3506.10................................  3514.1
                                         3524.1
                                         3534.1
                                         3544.1
                                         3554.1
3506.11................................  3514.2
                                         3514.3
                                         3524.2
                                         3524.3
                                         3534.2
                                         3534.3
                                         3544.2
                                         3544.3
                                         3554.2
                                         3554.3
3506.12................................  3514.4
                                         3514.4-2
                                         3524.4
                                         3524.4-2
                                         3534.4
                                         3534.4-2
                                         3544.4
                                         3544.4-2
                                         3554.4
                                         3554.4-2
                                         3512.1
                                         3522.1
                                         3532.1
                                         3552.1
3506.13................................  3514.4-1
                                         3524.4-1
                                         3534.4-1
                                         3544.4-1
                                         3554.4-1
3506.14................................  3514.4-3
                                         3524.4-3
                                         3534.4-3
                                         3544.4-3
                                         3554.4-3
  3506.15..............................  3514.4-4
                                         3524.4-4
                                         3534.4-4
                                         3544.4-4
                                         3554.4-4
3506.20................................  3514.6
                                         3524.6
                                         3534.6
                                         3544.6
                                         3554.6
3506.25................................  3514.5
                                         3524.5
                                         3534.5
                                         3544.5
                                         3554.5
3507.11................................  3513.3
                                         3523.3
                                         3533.3
                                         3543.3
                                         3553.3
                                         3563.3
3507.15................................  3513.1-1
                                         3523.1-1
                                         3533.1-1
                                         3543.1-1
                                         3553.1-1
                                         3563.1-1
3507.16................................  3513.1-1(c)
                                         3523.1-1(c)
                                         3533.1-1(c)
                                         3543.1-1(c)
                                         3553.1-1(c)
                                         3563.1-1(b)
3507.17................................  3513.1-2
                                         3523.1-2
                                         3533.1-2
                                         3543.1-2
                                         3553.1-2
                                         3563.1-2
3507.18................................  3513.2-1
                                         3523.2-1
                                         3533.2-1
                                         3543.2-1
                                         3553.2-1
                                         3563.2-1
3507.19................................  3513.4
                                         3523.4
                                         3533.4
                                         3543.4
                                         3553.4
                                         3563.4
3507.20................................  3513.4(b)
                                         3513.4(c)
                                         3523.4(b)
                                         3523.4(c)
                                         3533.4(b)
                                         3533.4(c)
                                         3543.4(b)
                                         3543.4(c)
                                         3553.4(b)
                                         3553.4(c)
                                         3563.4(b)
                                         3563.4(c)
3508.11................................  3515.1
                                         3525.1
                                         3535.1
                                         3545.1
                                         3555.1
                                         3564.1
                                         3574.1
3508.12(a).............................  3515.1
                                         3525.1
                                         3535.1
                                         3545.1
                                         3555.1
                                         3564.1
                                         3574.1
3508.12(b).............................  3515.3-1
                                         3525.3-1
                                         3535.3-1
                                         3545.3-1
                                         3555.3-1
                                         3564.3-1
                                         3574.3-1
3508.12(c).............................  3515.5
                                         3525.5
                                         3535.5
                                         3545.5
                                         3555.5
                                         3564.5
                                         3574.5
3508.14................................  3515.3-1
                                         3525.3-1
                                         3535.3-1
                                         3545.3-1
                                         3555.3-1
                                         3564.3-1
                                         3574.3-1
3508.15................................  3515.3-2
                                         3525.3-2
                                         3535.3-2
                                         3545.3-2
                                         3555.3-2
                                         3564.3-2
                                         3574.3-2
3508.16................................  3515.3-3
                                         3525.3-3
                                         3535.3-3
                                         3545.3-3
                                         3555.3-3
                                         3564.3-3
                                         3574.3-3
3508.20................................  3515.4
                                         3525.4
                                         3535.4
                                         3545.4
                                         3555.4
                                         3564.4
                                         3574.4
3508.21................................  3515.5
                                         3525.5
                                         3535.5
                                         3545.5
                                         3555.5
                                         3564.5
                                         3574.5
3508.22................................  3515.6
                                         3525.6
                                         3535.6
                                         3545.6
                                         3555.6
                                         3564.6
                                         3574.6
3509.10................................  3507.1-2
3509.11................................  3507.1-2
3509.12................................  3507.7-2
3509.12................................  3507.6
3509.15................................  3507.1-2(b)
3509.16................................  3507.2
                                         3507.5
                                         3507.9
3509.17................................  3507.2
                                         3507.7-2
3509.18................................  New
3509.20................................  3507.8
3509.25................................  3507.9
3509.30................................  New
3509.40................................  3507.1-1
3509.41................................  3507.1-1
                                         3507.1-2(a)
3509.45................................  3507.6
                                         3507.7-1

[[Page 53516]]

 
3509.46................................  3507.2
                                         3507.5
3509.47................................  3507.6
                                         3507.7-1
                                         3507.7-2
3509.48................................  New
3509.49................................  3507.3
3509.50................................  3507.9(b)
3509.51................................  New
3510.11................................  3516.1
                                         3516.2(a)
                                         3526.1
                                         3526.2(a)
                                         3536.1
                                         3536.2(a)
                                         3546.1
                                         3546.2(a)
                                         3556.1
                                         3556.2(a)
                                         3565.1
                                         3565.2(a)
                                         3575.1
                                         3575.2(a)
3510.12................................  3516.3
                                         3526.3
                                         3536.3
                                         3546.3
                                         3556.3
                                         3565.3
                                         3575.3
3510.15................................  3516.2
                                         3516.2(b)
                                         3526.2
                                         3526.2(b)
                                         3536.2
                                         3536.2(b)
                                         3546.2
                                         3546.2(b)
                                         3556.2
                                         3556.2(b)
                                         3565.2
                                         3565.2(b)
                                         3575.2
                                         3575.2(b)
3510.20................................  3516.3(a)
                                         3516.5
                                         3526.3(a)
                                         3526.5
                                         3536.3(a)
                                         3536.5
                                         3546.3(a)
                                         3546.5
                                         3556.3(a)
                                         3556.5
                                         3565.3(a)
                                         3565.5
                                         3575.3(a)
                                         3575.5
3510.21................................  3516.6
                                         3526.6
                                         3536.6
                                         3546.6
                                         3556.6
                                         3565.6
                                         3575.6
3511.10................................  3511.5
                                         3521.1
                                         3531.1
3511.11................................  New
3511.15................................  3511.3
                                         3521.3
                                         3531.3
                                         3541.3
                                         3551.3
                                         3561.3
                                         3571.3
3511.25................................  3511.4(a)
                                         3528
                                         3531.4(a)
                                         3547
                                         3551.4(a)
                                         3566
                                         3576
3511.25(b).............................  3528.3
                                         3547.3
                                         3566.1
                                         3566.3
                                         3576.3
3511.26................................  3511.4(b)
                                         3531.4(b)
                                         3551.4(b)
3511.27................................  3528.3
                                         3547.3
                                         3566.1
                                         3576.3
3511.28................................  New
3511.30................................  3511.4(c)
                                         3531.4(c)
                                         3551.4(c)
3512.11................................  3506.1
3512.12................................  3506.2
3512.13................................  3506.1-3
3512.16................................  3506.1-3
3512.17................................  3506.3-2
3512.18................................  3506.4
                                         3506.5-1
3512.19................................  3506.3-3
3512.25................................  3506.5-2
                                         3506.6
3512.30................................  3506.5-2
3512.33................................  3506.5-2
                                         3506.7
3513.11................................  3503.2-4(a)
3513.12................................  3503.2-4(a)
3513.15................................  3503.2-4(b)
3513.20................................  3503.3-1
3513.21................................  3503.3-1(c)
                                         3503.3-1(d)
                                         3503.3-1(e)
3513.22................................  3503.3-1(b)
3513.25................................  3503.3-1(d)
3513.26................................  3503.3-1(d)
3513.30................................  3503.3-2(a)
3513.31................................  3503.3-2(c)
                                         3503.3-2(d)
                                         3503.3-2(e)
3513.32................................  3503.3-2(b)
3513.33................................  3503.3-2(d)
3513.34................................  3503.3-2(d)
3514.11................................  3509.1-2
3514.12................................  3509.1-2
3514.15................................  3509.1-2
3514.20................................  3509.1-2
3514.21................................  3509.1-2
3514.25................................  3509.3-2
3514.30................................  3509.4-2
3514.31................................  3509.4-2
3514.32................................  3509.4-2
3514.50................................  3509.4-3
3515...................................  3508.1
3515.10................................  3508.0-1
3515.12................................  3508.0-7
3515.15................................  3508.0-1
3515.18................................  3508.1(a)
                                         3508.2(a)
3515.20................................  3508.0-1
3515.21................................  3508.0-1
3515.22................................  New
3515.23................................  3508.2(e)
3515.25................................  3508.2(f)
3515.26................................  3508.3(a)
3515.27................................  3508.3(b)
3516.10................................  3517.1
                                         3527.1
3516.11................................  New
3516.12................................  3517.1
                                         3527.1
3516.15................................  3517.1-1
                                         3527.1-1
3516.16................................  3517.1-3
                                         3527.1-3
3516.20................................  3517.1-2(a)
                                         3527.1-2(a)
3516.30................................  3517.1-2(b)
                                         3527.1-2(b)
3517.10................................  3567.1
3517.11................................  3567.2
3517.15................................  3567.3
3517.16................................  3567.4
Unnumbered.............................  3500.0-3
Deleted................................  3500.1
Deleted................................  3500.2
Deleted................................  3500.4
Deleted................................  3510.0-3
Deleted................................  3510.1
Deleted................................  3510.2-1
Deleted................................  3510.2-2
Deleted................................  3511.8
Deleted................................  3512.8-2
Deleted................................  3513.2-2
Deleted................................  3514.0-3
Deleted................................  3517.2
Deleted................................  3520.0-3
Deleted................................  3520.1
Deleted................................  3520.2-1
Deleted................................  3520.2-2
Deleted................................  3524.0-3
Deleted................................  3527.2
Deleted................................  3528.4
Deleted................................  3530.0-3
Deleted................................  3530.1
------------------------------------------------------------------------


------------------------------------------------------------------------
                Old 3500                             New 3500
------------------------------------------------------------------------
3500.0-3...............................  Unnumbered
3500.0-5...............................  3501.5
3500.1.................................  Deleted
3500.2.................................  Deleted
3500.3.................................  3502.15
3500.4.................................  3501.30
3500.5(a)..............................  3503.40
3500.5(b)..............................  3503.41
3500.6.................................  3501.16
3500.7.................................  3501.17
3500.8.................................  3503.11
3500.9-1...............................  3503.20
3500.9-2...............................  3503.21
3500.9-3...............................  3503.25
3501.1-1...............................  3503.30
3501.1-1(a)............................  3503.33
3501.1-1(d)............................  3503.36
3501.1-1(c)............................  3503.31
3501.1-2...............................  3503.30
3501.1-2(a)............................  3503.33
3501.1-2(b)............................  3503.32
3501.1-3...............................  3503.31
3501.2.................................  3503.38
3502.1.................................  3502.10
3502.1(b)..............................  3502.13
3502.1(c)..............................  3502.15
3502.1(d)..............................  3502.20

[[Page 53517]]

 
3502.2-1...............................  3502.25
                                         3502.26
3502.2-2...............................  3502.27
3502.2-3...............................  3502.28
                                         3502.29
3502.2-4...............................  3502.30
3502.2-5(a)............................  3502.40
3502.2-5(b)............................  3502.41
3502.2-6...............................  3502.33
3502.3.................................  3502.34
3503.1-1...............................  3504.11
3503.1-2...............................  3504.12
3503.2-1...............................  3504.21
                                         3504.22
3503.2-2...............................  3504.25
3503.2-3...............................  3504.26
3503.2-4(a)............................  3513.11
                                         3513.12
3503.2-4(b)............................  3513.15
3503.3-1...............................  3513.20
3503.3-1(b)............................  3513.22
3503.3-1(c)............................  3513.21
3503.3-1(d)............................  3513.21
                                         3513.25
                                         3513.26
3503.3-1(e)............................  3513.21
3503.3-2(a)............................  3513.30
3503.3-2(b)............................  3513.32
3503.3-2(c)............................  3513.31
3503.3-2(d)............................  3513.31
                                         3513.33
                                         3513.34
3503.3-2(e)............................  3513.31
3504.1-1...............................  3504.50
3504.1-2...............................  3504.51
3504.1-3...............................  3504.55
3504.1-4...............................  3504.50
3504.1-5...............................  3504.56
3504.1-6...............................  3504.60
3504.2(a)..............................  3504.65
3504.2(b)..............................  3504.66
3504.3.................................  3504.70
                                         3504.71
3506.1.................................  3512.11
3506.2.................................  3504.12(a)(1)
                                         3512.12
3506.3-1...............................  3512.13
                                         3512.16
3506.3-2...............................  3512.17
3506.3-3...............................  3512.19
3506.4.................................  3512.18
3506.5-1...............................  3512.18
3506.5-2...............................  3512.25
                                         3512.30
                                         3512.33
3506.6.................................  3512.25
3506.7.................................  3512.33
3507.1.................................  3505.10
3507.1-1...............................  3509.40
                                         3509.41
3507.1-2...............................  3509.10
                                         3509.11
3507.1-2(a)............................  3509.41
3507.1-2(b)............................  3509.15
3507.2.................................  3509.16
                                         3509.17
                                         3509.46
3507.3.................................  3509.49
3507.4.................................  3503.20
3507.5.................................  3504.12(a)(1)
                                         3509.16
                                         3509.46
3507.6.................................  3509.12
                                         3509.45
                                         3509.47
3507.7-1...............................  3509.45
                                         3509.47
3507.7-2...............................  3509.17
                                         3509.47
3507.8.................................  3509.20
3507.9.................................  3509.16
                                         3509.25
3507.9(b)..............................  3509.50
3508.0-1...............................  3515.10
                                         3515.15
                                         3515.20
                                         3515.21
3508.0-7...............................  3515.12
3508.1.................................  3515
3508.1(a)..............................  3515.18
3508.2(a)..............................  3515.18
3508.2(e)..............................  3515.23
3508.2(f)..............................  3515.25
3508.3(a)..............................  3515.26
3508.3(b)..............................  3515.27
3509.1-1...............................  3505.70
3509.1-2...............................  3514.11
                                         3514.12
                                         3514.15
                                         3514.20
                                         3514.21
3509.2.................................  3505.75
3509.3-1...............................  3505.80
3509.3-2...............................  3514.25
3509.4-1...............................  3505.85
                                         3514.31
                                         3514.32
3509.4-2...............................  3514.30
                                         3514.31
                                         3514.32
3509.4-3...............................  3514.50
3510.0-3...............................  Deleted
3510.1.................................  Deleted
3510.2-1...............................  Deleted
3510.2-2...............................  Deleted
3510.3.................................  3503.37
3511.1.................................  3501.20
3511.2-1(a)............................  3504.15
                                         3504.16
3511.2-1(b)............................  3504.17
3511.2-1(c)............................  3504.15
3511.2-2...............................  3504.20
                                         3504.21
3511.3.................................  3511.15
3511.4(a)..............................  3511.25
3511.4(b)..............................  3511.26
3511.4(c)..............................  3511.30
3511.5.................................  3511.10
3511.6.................................  3504.50
3511.7.................................  3503.28
3511.8.................................  Deleted
3512.1.................................  3508.11
3512.2.................................  3505.10
3512.3-1...............................  3505.12
3512.3-1(c)............................  3504.12(a)(1)
                                         3505.20
3512.3-2...............................  3505.13
3512.3-2(c)............................  3505.15
3512.3-3...............................  3505.40
                                         3505.45
3512.3-4...............................  3505.50
                                         3505.51
3512.4.................................  3505.25
3512.5.................................  3505.25
                                         3505.30
3512.6.................................  3505.31
3512.7.................................  3504.50
                                         3505.40
3512.8.................................  3505.55
3512.8-1...............................  3505.50
                                         3505.60
3512.8-2...............................  Deleted
3512.8-3...............................  3504.15
                                         3505.55
3512.8-4...............................  3503.28
3512.9-1...............................  3505.61
                                         3505.62
3512.9-2...............................  3501.20
3512.9-2(a)............................  3505.64
3512.9-2(b)............................  3505.65
3512.9-3...............................  3501.20
                                         3505.66
3513.1-1...............................  3507.15
3513.1-1(c)............................  3507.16
3513.1-2...............................  3507.17
3513.2-1...............................  3507.18
3513.2-2...............................  Deleted
3513.3.................................  3507.11
3513.4.................................  3507.19
3513.4(b)..............................  3507.20
3513.4(c)..............................  3507.20
3514.0-3...............................  Deleted
3514.1.................................  3506.10
3514.2.................................  3506.11
3514.3.................................  3506.11
3514.4.................................  3506.12
3514.4-1...............................  3506.13
3514.4-2...............................  3506.12
3514.4-3...............................  3506.14
3514.4-4...............................  3506.15
3514.5.................................  3506.25
3514.6.................................  3506.20
3515.1.................................  3508.11
                                         3508.12(a)
3515.3-1...............................  3508.12(b)
                                         3508.14
3515.3-2...............................  3508.15
3515.3-3...............................  3508.16
3515.4.................................  3508.20
3515.5.................................  3508.12(c)
                                         3508.21
3515.6.................................  3508.22
3516.1.................................  3510.11
3516.2.................................  3510.15
3516.2(a)..............................  3510.11
3516.2(b)..............................  3510.15
3516.3.................................  3510.12
3516.3(a)..............................  3510.20
3516.3(b)..............................  3504.12(a)(1)
3516.4.................................  3503.20
3516.5.................................  3510.20
3516.6.................................  3510.21
3517.1.................................  3516.10
                                         3516.12
3517.1-1...............................  3504.12(a)(1)
                                         3516.15
3517.2.................................  Deleted
3517.1-2(a)............................  3516.20
3517.1-2(b)............................  3516.30
3517.1-3...............................  3516.16
3520.0-3...............................  Deleted
3520.1.................................  Deleted
3520.2-1...............................  Deleted
3520.2-2...............................  Deleted
3520.3.................................  3503.37
3521.1.................................  3501.20
                                         3511.10
3521.2-1(a)............................  3504.15
3521.2-1(a)............................  3504.16
3521.2-1(b)............................  3504.17
3521.2-2...............................  3504.20
                                         3504.21

[[Page 53518]]

 
3521.3.................................  3511.15
3521.4.................................  3504.50
3521.5.................................  3503.28
3521.6.................................  3503.28
3522.1.................................  3508.11
3522.2.................................  3505.10
3522.3-1...............................  3505.12
3522.3-1(c)............................  3504.12(a)(1)
                                         3505.20
3522.3-2...............................  3505.13
3522.3-2(c)............................  3505.15
3522.3-3...............................  3505.40
                                         3505.45
3522.3-4...............................  3505.50
                                         3505.51
3522.4.................................  3505.25
3522.5.................................  3505.25
                                         3505.30
3522.6.................................  3505.31
3522.7.................................  3504.50
                                         3505.40
3522.8.................................  3505.55
3522.8-1...............................  3505.50
                                         3505.60
3522.8-2...............................  3501.20
3522.8-3...............................  3504.15
                                         3505.55
3522.8-4...............................  3503.28
3523.1-1...............................  3507.15
3523.1-1(c)............................  3507.16
3523.1-2...............................  3507.17
3523.2-2...............................  3503.20
3523.2-1...............................  3507.18
3523.3.................................  3507.11
3523.4.................................  3507.19
3523.4(b)..............................  3507.20
3523.4(c)..............................  3507.20
3524.0-3...............................  Deleted
3524.1.................................  3506.10
3524.2.................................  3506.11
3524.3.................................  3506.11
3524.4.................................  3506.12
3524.4-1...............................  3506.13
3524.4-2...............................  3506.12
3524.4-3...............................  3506.14
3524.4-4...............................  3506.15
3524.5.................................  3506.25
3524.6.................................  3506.20
3525.1.................................  3508.11
                                         3508.12(a)
3525.2.................................  3503.20
3525.3-1...............................  3508.12(b)
                                         3508.14
3525.3-1(c)............................  3504.12(a)(1)
3525.3-2...............................  3508.15
3525.3-3...............................  3508.16
3525.4.................................  3508.20
3525.5.................................  3508.12(c)
                                         3508.21
3525.6.................................  3508.22
3526.1.................................  3510.11
3526.2.................................  3510.15
3526.2(a)..............................  3510.11
3526.2(b)..............................  3510.15
3526.3.................................  3510.12
3526.3(a)..............................  3510.20
3526.3(b)..............................  3504.12(a)(1)
3526.4.................................  3503.20
3526.5.................................  3510.20
3526.6.................................  3510.21
3527.1.................................  3516.10
                                         3516.12
3527.1-1...............................  3504.12(a)(1)
                                         3516.15
3527.1-2(a)............................  3516.20
3527.1-2(b)............................  3516.30
3527.1-3...............................  3516.16
3527.2.................................  Deleted
3528...................................  3511.25
                                         3511.27
3528.1.................................  3504.12(a)(1)
3528.2.................................  3504.50
3528.3.................................  3511.25(b)
3528.4.................................  3511.12
3530.0-3...............................  Deleted
3530.1.................................  Deleted
3530.2-1...............................  Deleted
3530.2-2...............................  Deleted
3530.3.................................  3503.37
3531.1.................................  3501.20
                                         3511.10
3531.2-1(a)............................  3504.15
                                         3504.16
3531.2-1(b)............................  3504.17
3531.2-2...............................  3504.20
                                         3504.21
3531.3.................................  3511.15
3531.4(a)..............................  3511.25
3531.4(b)..............................  3511.26
3531.4(c)..............................  3511.30
3531.5.................................  3504.50
3531.6.................................  3503.28
3532.1.................................  3508.11
3532.2.................................  3505.10
3532.3-1...............................  3505.12
3532.3-1(c)............................  3504.12(a)(1)
                                         3505.20
3532.3-2...............................  3505.13
3532.3-2(c)............................  3505.15
3532.3-3...............................  3505.40
                                         3505.45
3532.3-4...............................  3505.50
                                         3505.51
3532.4.................................  3505.25
3532.5.................................  3505.30
3532.6.................................  3505.31
3532.7.................................  3504.50
                                         3505.40
3532.8.................................  3505.55
3532.8-1...............................  3505.60
3532.8-2...............................  3501.20
3532.8-3...............................  3504.15
                                         3505.55
3532.8-4...............................  3503.28
                                         3505.50
3532.9-1...............................  3505.61
                                         3505.62
3532.9-2(a)............................  3505.64
3532.9-2(b)............................  3505.65
3532.9-3...............................  3501.20
                                         3505.66
3533.1-1...............................  3507.15
3533.1-1(c)............................  3507.16
3533.1-2...............................  3507.17
3533.2-1...............................  3507.18
3533.2-2...............................  3503.20
3533.3.................................  3507.11
3533.4.................................  3507.19
3533.4(b)..............................  3507.20
3533.4(c)..............................  3507.20
3534.0-3...............................  Deleted
3534.1.................................  3506.10
3534.2.................................  3506.11
3534.3.................................  3506.11
3534.4.................................  3506.12
3534.4-1...............................  3506.13
3534.4-2...............................  3506.12
3534.4-3...............................  3506.14
3534.4-4...............................  3506.15
3534.5.................................  3506.25
3534.6.................................  3506.20
3535.1.................................  3508.11
                                         3508.12(a)
3535.2.................................  3503.20
3535.3-1...............................  3508.12(b)
                                         3508.14
3535.3-2...............................  3508.15
3535.3-3...............................  3508.16
3535.4.................................  3508.20
3535.5.................................  3508.12(c)
                                         3508.21
3536.1.................................  3510.11
3536.2.................................  3510.15
3536.4.................................  3503.20
3536.5.................................  3510.20
3535.6.................................  3508.22
3536.2(a)..............................  3510.11
3536.2(b)..............................  3510.15
3536.3.................................  3510.12
3536.3(a)..............................  3510.20
3536.3(b)..............................  3504.12(a)(1)
3536.6.................................  3510.21
3540.0-3...............................  Deleted
3540.1.................................  Deleted
3540.2-1...............................  Deleted
3540.2-2...............................  Deleted
3540.3.................................  3503.37
3541.1.................................  3501.20
3541.2-1(a)............................  3504.15
                                         3504.16
3541.2-1(b)............................  3504.17
3541.2-2...............................  3504.20
                                         3504.21
3541.3.................................  3511.15
3541.4.................................  3504.50
3541.5.................................  3503.28
3541.6.................................  3503.28
3542.1.................................  3503.12
3542.2.................................  3505.10
3542.3-1...............................  3505.12
3542.3-1(c)............................  3504.12(a)(1)
                                         3505.20
3542.3-2...............................  3505.13
3542.3-2(c)............................  3505.15
3542.3-3...............................  3505.40
                                         3505.45
3542.3-4...............................  3505.50
                                         3505.51
3542.4.................................  3505.25
3542.5.................................  3505.25
                                         3505.30
3542.6.................................  3505.31
3542.7.................................  3504.50
                                         3505.40
3542.8.................................  3505.55
3542.8-1...............................  3505.50
                                         3505.60
3542.8-2...............................  3501.20
3542.8-3...............................  3504.15
                                         3505.55
3542.8-4...............................  3503.28
3543.1-1...............................  3507.15
3543.1-1(c)............................  3507.16
3543.1-2...............................  3507.17
3543.2-1...............................  3507.18
3543.2-2...............................  3503.20
3543.3.................................  3507.11
3543.4.................................  3507.19
3543.4(b)..............................  3507.20
3543.4(c)..............................  3507.20
3544.0-3...............................  Deleted
3544.1.................................  3506.10

[[Page 53519]]

 
3544.2.................................  3506.11
3544.3.................................  3506.11
3544.4.................................  3506.12
3544.4-1...............................  3506.13
3544.4-2...............................  3506.12
3544.4-3...............................  3506.14
3544.4-4...............................  3506.15
3544.5.................................  3506.25
3544.6.................................  3506.20
3545.1.................................  3508.11
                                         3508.12(a)
3545.2.................................  3503.20
3545.3-1...............................  3508.12(b)
                                         3508.14
3545.3-2...............................  3508.15
3545.3-3...............................  3508.16
3545.4.................................  3508.20
3545.5.................................  3508.12(c)
                                         3508.21
3545.6.................................  3508.22
3546.1.................................  3510.11
3546.2.................................  3510.15
3546.2(a)..............................  3510.11
3546.2(b)..............................  3510.15
3546.3.................................  3510.12
3546.3(a)..............................  3510.20
3546.3(b)..............................  3504.12(a)(1)
3546.4.................................  3503.20
3546.5.................................  3510.20
3546.6.................................  3510.21
3547...................................  3511.25
                                         3511.27
3547.1.................................  3504.12(a)(1)
3547.2.................................  3504.50
3547.3.................................  3511.25(b)
3547.4.................................  3511.12
3550.0-3...............................  Deleted
3550.1.................................  Deleted
3550.2-1...............................  Deleted
3550.2-2...............................  Deleted
3550.3.................................  3503.37
3551.1.................................  3501.20
3551.2-1(a)............................  3504.15
                                         3504.16
3551.2-1(b)............................  3504.17
3551.2-2...............................  3504.20
                                         3504.21
3551.3.................................  3511.15
3551.4(a)..............................  3511.25
3551.4(b)..............................  3511.26
3551.4(c)..............................  3511.30
3551.5.................................  3504.50
3551.6.................................  3503.28
3551.7.................................  Deleted
3552.1.................................  3508.11
3552.2.................................  3505.10
3552.3-1...............................  3505.12
3552.3-1(c)............................  3504.12(a)(1)
                                         3505.20
3552.3-2...............................  3505.13
3552.3-2(c)............................  3505.15
3552.3-3...............................  3505.40
                                         3505.45
3552.3-4...............................  3505.50
                                         3505.51
3552.4.................................  3505.25
3552.5.................................  3505.25
                                         3505.30
3552.6.................................  3505.31
3552.7.................................  3504.50
                                         3505.40
3552.8.................................  3505.55
3552.8-1...............................  3505.50
                                         3505.60
3552.8-3...............................  3504.15
                                         3505.55
3552.8-2...............................  3501.20
3552.8-4...............................  3503.28
3552.9-1...............................  3505.61
                                         3505.62
3552.9-2(a)............................  3505.64
3552.9-2(b)............................  3505.65
3552.9-3...............................  3501.20
                                         3505.66
3553.1-1...............................  3507.15
3553.1-1(c)............................  3507.16
3553.1-2...............................  3507.17
3553.2-2...............................  3503.20
3553.2-1...............................  3507.18
3553.3.................................  3507.11
3553.4.................................  3507.19
3553.4(b)..............................  3507.20
3553.4(c)..............................  3507.20
3554.0-3...............................  Deleted
3554.1.................................  3506.10
3554.2.................................  3506.11
3554.3.................................  3506.11
3554.4.................................  3506.12
3554.4-1...............................  3506.13
3554.4-3...............................  3506.14
3554.4-2...............................  3506.12
3554.4-4...............................  3506.15
3554.5.................................  3506.25
3554.6.................................  3506.20
3555.1.................................  3508.11
                                         3508.12(a)
3555.2.................................  3503.20
3555.3-1...............................  3508.12(b)
                                         3508.14
3555.3-2...............................  3508.15
3555.3-3...............................  3508.16
3555.4.................................  3508.20
3555.5.................................  3508.12(c)
                                         3508.21
3555.6.................................  3508.22
3556.1.................................  3510.11
3556.2.................................  3510.15
3556.2(a)..............................  3510.11
3556.2(b)..............................  3510.15
3556.3.................................  3510.12
3556.3(a)..............................  3510.2
3556.3(b)..............................  3504.12(a)(1)
3556.4.................................  3503.20
3556.5.................................  3510.20
3556.6.................................  3510.21
3560.0-3...............................  Deleted
3560.1.................................  Deleted
3560.2-1...............................  Deleted
3560.2-2...............................  Deleted
3560.3-1...............................  3503.13
3560.3-2...............................  3503.13
3560.3-3...............................  3503.13
3560.3-4...............................  3503.13
3560.4.................................  3503.37
3560.5.................................  3505.10
3560.6.................................  3501.16
3560.7.................................  3505.12
3561.1.................................  3501.20
3561.2-1(a)............................  3504.15
                                         3504.16
3561.2-1(b)............................  3504.17
3561.2-2...............................  3504.20
                                         3504.21
3561.3.................................  3511.15
3561.4.................................  3504.50
3561.5.................................  3503.28
3561.6.................................  Deleted
3562.1.................................  3503.13
3562.2.................................  3505.10
3562.3-1...............................  3505.12
3562.3-1(c)............................  3504.12(a)(1)
                                         3505.20
3562.3-2...............................  3505.13
3562.3-2(c)............................  3505.15
3562.3-3...............................  3505.40
                                         3505.45
3562.3-4...............................  3505.50
                                         3505.51
3562.4.................................  3505.25
3562.5.................................  3505.25
                                         3505.30
3562.6.................................  3505.31
3562.7.................................  3504.50
                                         3505.40
3562.8.................................  3505.55
3562.8-1...............................  3505.50
                                         3505.60
3562.8-2...............................  3501.20
3562.8-3...............................  3504.15
                                         3505.55
3562.8-4...............................  3503.28
3562.9-1...............................  3505.61
                                         3505.62
3562.9-2(a)............................  3505.64
3562.9-2(b)............................  3505.65
3562.9-3...............................  3501.20
                                         3505.66
3563.1-1...............................  3507.15
3563.1-1(b)............................  3507.16
3563.1-2...............................  3507.17
3563.2-1...............................  3507.18
3563.3.................................  3507.11
3563.4.................................  3507.19
3563.4(b)..............................  3507.20
3563.4(c)..............................  3507.20
3564.1.................................  3508.11
                                         3508.12(a)
3564.2.................................  3503.20
3564.3-1...............................  3508.12(b)
                                         3508.14
3564.3-2...............................  3508.15
3564.3-3...............................  3508.16
3564.4.................................  3508.20
3564.5.................................  3508.12(c)
                                         3508.21
3564.6.................................  3508.22
3565.1.................................  3510.11
3565.2.................................  3510.15
3565.2(a)..............................  3510.11
3565.2(b)..............................  3510.15
3565.3.................................  3510.12
3565.3(a)..............................  3510.20
3565.3(b)..............................  3504.12(a)(1)
3565.4.................................  3503.20
3565.5.................................  3510.20
3565.6.................................  3510.21
3566...................................  3511.25
                                         3511.27
3566.1.................................  3511.25(b)
3566.2.................................  3504.50
3566.3.................................  3511.25(b)
3566.4.................................  3511.12
3567.1.................................  3517.10
3567.2.................................  3517.11
3567.3.................................  3517.15
3567.4.................................  3517.16
3570.0-3...............................  Deleted
3570.1.................................  Deleted
3570.2.................................  3503.14
3570.3.................................  Deleted
3570.4.................................  3503.37
3571.1.................................  3501.20

[[Page 53520]]

 
3571.2-1(a)............................  3504.15
                                         3504.16
3571.2-1(b)............................  3504.17
3571.2-2...............................  3504.20
                                         3504.21
3571.3.................................  3511.15
3571.4.................................  3504.50
3571.5.................................  3503.28
3571.6.................................  Deleted
3574.1.................................  3508.11
                                         3508.12(a)
3574.2.................................  3503.20
3574.3-1...............................  3508.12(b)
                                         3508.14
3574.3-2...............................  3508.15
3574.3-3...............................  3508.16
3574.4.................................  3508.20
3574.5.................................  3508.12(c)
                                         3508.21
3574.6.................................  3508.22
3575.1.................................  3510.11
3575.2.................................  3510.15
3575.2(a)..............................  3510.11
3575.2(b)..............................  3510.15
3575.3.................................  3510.12
3575.3(a)..............................  3510.20
3575.3(b)..............................  3504.12(a)(1)
3575.4.................................  3503.20
3575.5.................................  3510.20
3575.6.................................  3510.21
3576...................................  3511.25
                                         3511.27
3576.1.................................  3504.12(a)(1)
3576.2.................................  3504.50
3576.3.................................  3511.25(b)
3576.4.................................  3511.12
New....................................  3501.1
New....................................  3501.10
New....................................  3502.42
New....................................  3503.10
New....................................  3503.42
New....................................  3503.43
New....................................  3503.44
New....................................  3503.45
New....................................  3503.46
New....................................  3509.18
New....................................  3509.30
New....................................  3509.48
New....................................  3509.51
New....................................  3511.11
New....................................  3511.28
New....................................  3515.22
New....................................  3516.11
New....................................  3503.15
                                         also in 3581
New....................................  3503.16
                                         also in 3586
------------------------------------------------------------------------

Subpart 3501--General Provisions

    This subpart deals with introductory matters, general 
considerations, definitions, and appeals. We expanded the authorities 
section. Section 3501.1 discusses the scope of the regulations, which 
apply to minerals leased by the BLM.
    Section 3501.5 is the definitions section. This section lists those 
terms which are specific to leasing of solid minerals. We made several 
changes to this section.
    We dropped the definition of the term ``Act'' because it was not 
needed. We added a definition for the term ``acquired lands.'' We 
modified the definition of ``hardrock minerals'' to make the meaning 
more clear. We kept the definition used in the proposed rule for 
``valuable deposit,'' which is discussed more in the Responses to 
Comments section below.
    Section 3501.10 describes the different types of authorizations BLM 
can issue under these regulations. Here, we define what each 
authorization is, and list them in the order they occur during 
development, to give the reader a short road map through the entire 
mineral development process. The section begins with prospecting 
permits, which allow exploration for minerals on public lands where no 
known deposit exists. Next are exploration licenses, which also allow 
exploration of lands where there are known deposits. After that comes 
preference right leases, which you could receive if you discover 
certain mineral deposits during your prospecting permit. Following that 
are competitive leases, which BLM issues for known deposits. Next are 
fringe acreage leases, which lease known deposits under special 
circumstances. This is followed by lease modifications which add land 
to existing leases, and use permits that provide land to support 
certain permits and leases.
    Section 3501.16 lists some of the general conditions and terms of 
your permit or lease. There are two particularly important aspects of 
this section. First, it tells you that a permit or lease gives you an 
exclusive interest in the minerals covered by your permit or lease, but 
not the lands. We can issue additional leases, permits and rights-of-
way for lands where minerals are leased. Second, this section discusses 
how we regulate development of multiple leases on the same parcel.
    The remaining sections in this part point out that authorizations 
are subject to other laws and regulations, such as NEPA, BLM land use 
plans, and BLM and Departmental appeal regulations.

Subpart 3502--Qualification Requirements

    Subpart 3502 sets out who may hold a permit or lease. There are 
several limitations on who may hold an authorization. For example, as 
required by statute, we require the lessee or permittee to be an adult 
citizen of the United States who is in compliance with the MLA on all 
other leases. Also, to prevent conflicts of interest, there are 
restrictions on government officials. There are also acreage 
limitations in subpart 3503.
    Sections 3502.25-30 discuss how you show your qualifications to 
hold a lease. These sections discuss where to file information, and 
what to submit depending on whether you are an individual, an 
association or partnership, a guardian or trustee of a trust, or a 
corporation.
    The remaining sections address some peripheral concerns related to 
lease qualifications. For example, if an applicant dies before we 
processes the application, we may issue the lease to the applicant's 
heirs, or to the executor of the applicant's estate if the estate has 
not been settled. BLM may also recognize an heir as the record title 
holder of a permit or lease if the permit or lease holder dies. In all 
cases, however, the person assuming ownership of the lease must be 
qualified to hold a lease. If they are not, we will allow no more than 
two years for them to become qualified or divest their interest.

Subpart 3503--Areas Available for Leasing

    This subpart concerns which areas are available for leasing. There 
are several types of land that are unavailable for leasing, such as 
lands acquired for development of fissionable materials, wilderness 
areas, and lands within incorporated cities. Sections 3503.10 and 
3503.11 list lands which are not available for any mineral leasing 
activity. The next four sections set out which areas are generally 
available for leasing sulphur, hardrock minerals, asphalt, gold and 
silver.
    Generally, lands within a designated wilderness or wilderness study 
area are unavailable for leasing. The Wilderness Act, 16 U.S.C. 1131 et 
seq., prohibits commercial enterprise within designated wilderness 
areas, except for prior existing rights (16 U.S.C. 1133(c)). Wilderness 
study areas are managed under the interim management standards which 
prohibit all activities which would impair their suitability for 
wilderness designation; this typically precludes mineral leasing 
activity. BLM manages all other areas being considered for possible 
wilderness study in accordance with the applicable land use plan.
    Since BLM drafted the proposed rule, President Clinton has 
designated the Grand Staircase-Escalante National Monument, and under 
the Monument's terms the BLM lands contained in it are no longer 
available for leasing. We added the new Monument to the list of 
unavailable lands in Sec. 3503.11. We also added another sentence in 
Sec. 3503.11(k) to remind the reader that any other

[[Page 53521]]

lands which are withdrawn from mineral leasing are also unavailable.
    Sections 3503.20 through 3503.28 set out the rules for leasing 
minerals that underlie lands managed by another Federal agency, private 
owner, or non-Federal political subdivision or charitable organization. 
When a separate surface owner is involved, we will consult with them, 
and, if required, obtain their consent before issuing a mineral lease. 
In many cases, we may insert special stipulations into the lease to 
satisfy the surface owner's or surface managing agency's concerns. 
Where BLM is required by law to obtain another agency's consent, we 
will accept the stipulations they require. In other situations, we will 
consider the surface owner's or surface management agency's 
recommendations and accept those which we believe are appropriate.
    The next several sections (3503.30-.33) concern land descriptions. 
You must describe the lands you wish to lease in your application, but 
there are several different ways to describe land. If the land has been 
surveyed as part of the Public Lands Survey System, you must describe 
it by legal subdivision (section, township and range). If it has not 
been surveyed but is located in a Public Lands Survey System state and 
is part of a protraction diagram or amended protraction diagram, you 
must describe the land by legal subdivision. If the land is unsurveyed 
and not shown on a protraction diagram or amended protraction diagram, 
you must describe the lands by metes and bounds tied to a survey 
corner. If the lands are acquired lands, you may use the description 
shown on the deed that conveyed title to the United States. Finally, 
Sec. 3503.33 reminds the reader that BLM will only issue leases for 
lands that have been officially surveyed to BLM standards. If you seek 
a permit or lease on unsurveyed lands, we will require you to pay for a 
survey. We will pay for the survey if we initiate the competitive 
leasing process.
    The next subgroup consists of three limitations on the acreage and 
dimensions of the lands you seek to lease. First, the minimum size for 
a lease is generally a quarter-quarter section, or a lot. The leased 
lands must also be in reasonably compact form, not scattered and 
difficult to manage. The chart at Sec. 3503.37 shows the maximum lease 
acreage for each commodity. This includes limits on the size of the 
individual lease, and limits on the total number of acres you have 
leased from BLM in a single state (or nationwide, in the case of 
phosphate).
    The only change in this chart from the proposed rule is the 
provision that the state acreage limit for potassium leases is now 
96,000 acres. We made this change in response to comments received on 
the proposed rule. See responses to comments below.
    Calculating your total acreage holdings is simple when you own your 
lease outright, but if you own a lease through stock ownership or other 
instruments, BLM will calculate your acreage holdings as a proportion 
of your ownership interest. For example, if you own a 50% interest in a 
lease of 800 acres, we will charge 400 acres toward your total personal 
acreage holdings. Corporate lease holdings will only count against your 
personal acreage holdings if you own at least ten percent of the 
corporation holding the leases. In these instances, we will count the 
same acreage against both the corporation's holdings and your personal 
holdings, in proportion with your ownership interest. We believe this 
is necessary to prevent people from using the corporate form to avoid 
the acreage limitations.
    Finally, sections 3503.40 through 3503.46 instruct you where to 
file your application and other necessary documents, and inform you 
that the information you submit could be released to the public under 
the Freedom of Information Act (5 U.S.C. 552 et seq.) (FOIA). Since the 
proposed rule was published, BLM has issued a rule to make all of our 
FOIA information uniform. The FOIA rule, published in the Federal 
Register on October 1, 1998 (63 FR 52946), amended these regulations by 
adding detailed information about how BLM decides to release or 
withhold information under the FOIA. In order to keep this rule 
consistent with other BLM regulations, we added Secs. 3503.42 through 
3503.46 to conform to the FOIA regulations.
    We will generally release information under FOIA to the extent that 
the law allows. If you believe the information you submit to us should 
be kept confidential, you should indicate this by clearly marking the 
information as confidential. However, BLM must make the final decision, 
because the FOIA requires us to determine under the law whether 
information is exempt from release before we can withhold it.

Subpart 3504--Fees, Rental, Royalty and Bonds

    This subpart outlines your obligations to BLM under your lease. We 
made several minor changes from the proposed rule in order to clarify 
these requirements.
    The first three sections distinguish between payments to BLM and 
those made to the Minerals Management Service (MMS), and set out filing 
fees. BLM only receives filing fees, first year rentals and bonus bids; 
you should make all subsequent rental, royalty and other payments to 
MMS.
    The next three sections discuss rental rates and due dates. One 
situation that caused some confusion is the rental due date after the 
first year of the lease. BLM will maintain the previous system, where 
in the case of sodium, potassium and asphalt, rentals are due before 
January 1 of each year, while for other minerals rental is due before 
the anniversary of the lease's effective date. We had proposed a 
simpler system which would use anniversary dates for all minerals, but 
several commenters pointed out that this contradicts statutory law. 
Therefore, we will use the January 1 due date for sodium, potassium and 
asphalt, and the lease anniversary date for other minerals.
    The following sections discuss royalties. Each lease will contain 
its own royalty provisions, but the regulations set out the minimum 
royalty at Sec. 3504.21. The regulations also permit you to create 
overriding royalties. However, if your overriding royalties become too 
large, to the point where they could pressure you to forego development 
opportunities under your lease, BLM may order you to suspend or reduce 
the overriding royalty. Furthermore, if at any time you seek a royalty 
reduction, we may require you to reduce your overriding royalty 
payments first. We will not allow overriding royalties to exceed 50% of 
the amount of the reduced royalty.
    The rest of this subpart focuses on bonding requirements. BLM 
requires a bond in all cases, and determines the amount of the bond on 
a case-by-case basis. The bond amount is based on our estimate of the 
cost to comply with all terms and conditions of the lease. This 
includes the cost to stabilize and reclaim the areas to be disturbed 
under your lease or permit. We will accept personal bonds in any one of 
several forms, or surety bonds from qualified surety companies. You may 
also cover several leases with a single bond, or file statewide or 
nationwide bonds to cover several obligations at once.
    Your bond must always provide full coverage for any activities you 
pursue. If you default on any of your permit or lease obligations, BLM 
may take payment from your bond and, if necessary, require you to 
restore your bond to the amount needed to provide full coverage. If you 
fail to restore your bond, we may seek to cancel your permit or lease. 
We will only terminate your bond's period of liability when it has been 
replaced by another bond or you have fulfilled all your permit or

[[Page 53522]]

lease terms and conditions. Finally, terminating the period of 
liability does not end the bond obligations; we will release your bond 
when all terms and conditions are met, the site is reclaimed, all 
payments are made, and a reasonable period of time has passed to assure 
us that you have effectively reclaimed the land.

Subpart 3505--Prospecting Permits

    Prospecting permits are available when you are contemplating 
commercial mineral development under the mineral leasing program in 
areas where there is no known mineral deposit. Obtaining a prospecting 
permit is the first step to development under a preference right lease. 
If you use a prospecting permit to explore an area where no known 
mineral deposit exists and you discover a valuable deposit of the 
mineral covered by your permit, you may be entitled to a preference 
right lease to develop that mineral deposit.
    You do not need a prospecting permit to collect mineral specimens 
for your hobby, recreational, educational or other similar non-
commercial purposes. You can find BLM's regulations for non-commercial 
mineral specimen collecting at 43 CFR part 8360.
    Prospecting permits are required when you are exploring an area for 
commercial development. Because prospecting permits may entitle you to 
a preference right lease, they are not available in areas where BLM has 
identified a known mineral deposit. These areas are leased 
competitively and can only be explored prior to leasing under an 
exploration license. Prospecting permits are not available for asphalt.
    Sections 3505.12 through 3505.51 discuss how to apply for a 
prospecting permit. Because a prospecting permit may entitle you to a 
preference right lease, we will not issue prospecting permits to anyone 
who would not be qualified to hold a lease. Therefore, all the 
qualification requirements of subpart 3502, including the acreage 
limitations, apply to prospecting permits.
    You may amend or withdraw your permit application after you file it 
but before we issue you a permit. BLM considers permit applications on 
a first-come, first-served basis, meaning that the first application we 
receive has priority. If you amend your application, you do not need to 
send an additional filing fee, but if your amendment adds lands to be 
covered by the permit, your priority to those additional lands will be 
as of the date of the amendment, not the date of the original 
application. Your application must include the first year's rental, and 
a detailed exploration plan.
    We will notify you if your permit application has been accepted or 
rejected. If we reject your permit application, we will state our 
reasons for doing so in detail, and describe how you may appeal. If we 
rejected your application because of something which can be corrected, 
we will give you 30 days to correct the error and refile your 
application. You do not have to refile the application fee and first-
year rental payment with your corrected application. Filing fees are 
non-refundable, but if we reject any portion of your application we 
will return your rental payment covering the rejected areas.
    Prospecting permits are limited to their express terms. Therefore, 
you can only use your prospecting permit for the time, area and 
minerals identified in your permit. All prospecting permits are valid 
for two years, though BLM can extend potassium and gilsonite permits 
for an additional two years and phosphate and hardrock mineral 
prospecting permits for up to four years. BLM cannot extend permits for 
sodium and sulphur. We generally will only extend your permit if you 
have been diligently exploring the area and need more time to discover 
a valuable deposit, though exceptions may be made if unusual 
circumstances delayed your exploration efforts.
    You can relinquish your permit in whole or in part if BLM approves 
your relinquishment, you have complied with all the permit 
requirements, and if your rental payments are up to date. We may cancel 
your permit if you fail to make timely rental payments, or if your 
exploration activities violate any law, regulation, or condition of 
your permit. If your permit is relinquished or canceled, in whole or in 
part, you will not be entitled to a preference right lease on those 
lands.

Subpart 3506--Exploration Licenses

    Exploration licenses, covered by subpart 3506, allow you to gather 
information about a mineral resource prior to seeking a lease. BLM 
grants these licenses to explore areas with known mineral deposits. BLM 
leases known mineral deposits through a competitive bidding process; 
therefore, your exploration license will not give you any preference or 
right to a lease. You may want an exploration license if you are 
considering entering a bid for an area and you need more information 
about the resource in order to prepare your bid.
    The first several sections of subpart 3506 describe how to obtain 
an exploration license. To apply, you need to submit an exploration 
plan and a request (in no specific form) for an exploration license. 
Your exploration plan must include the same information contained in 43 
CFR 3505.45 as exploration plans in support of prospecting permits.
    BLM makes decisions to issue exploration licenses under the general 
regulations for leases, permits and easements at 43 CFR part 2920. Once 
we approve your exploration plan, we will prepare a notice of 
exploration which you must publish for three weeks in a local newspaper 
in the area where the lands covered by the license are located. The 
notice, which will include your plan, will invite other interested 
parties to participate with you in the exploration. They must share 
costs with you on a pro-rata basis.
    Your exploration license is not intended to give you exclusive 
access to information which is critical to preparing your bid, or any 
other preference. For competitive leasing, all bidders should have 
access to the same information about the resource, so that competition 
will be completely fair. We may require that you allow other interested 
parties to join you in the exploration activities under your license, 
provided they pay their pro-rata share of the costs. Sections 3506.12 
through 3506.14 discuss the notice of exploration contents and process.
    Several things can happen if one or more parties respond to the 
notice of exploration and notify BLM that they wish to be included. If 
all parties agree with the exploration plan as approved, the parties 
may simply devise a way to share the costs and BLM will issue the 
license. If the interested parties disagree on the exploration plan, 
the parties need to agree on any changes to be made, and BLM will have 
to assess the environmental impacts posed by any changes to the plan 
before we can issue the license.
    Once BLM issues your exploration license, you may make changes to 
your exploration plan, and you may remove lands from your exploration 
license at any time, subject to BLM's approval. However, you may not 
add lands to your exploration license. We must provide for public 
involvement and environmental assessment before we can make lands 
available for exploration under a license. Therefore, if you wish to 
add lands to your license, you need to submit a new application.
    While conducting your exploration, you must share with us any data 
you gather. BLM will consider this information confidential, as 
explained in Sec. 3506.25, until the lands are leased

[[Page 53523]]

or unless we determine under the FOIA that the information is not 
exempt from disclosure. We require that you share this information with 
us because all information is valuable to us in making sound management 
decisions. We will not share this information with other potential 
bidders or the public unless we are required to do so by law. While we 
feel the fairest system of competitive bidding requires us to give 
parties equal access to information, we do not think it is fair to 
require one party to share the data at no cost to other parties after 
having acquired this data at considerable expense. BLM feels that this 
system, where parties can join in on the exploration but where we will 
not freely divulge the exploration's results, is the fairest to all 
participants.

Subpart 3507--Preference Right Lease Applications

    If you discover a valuable deposit of a leasable mineral while 
exploring under a prospecting permit, you may be entitled to a 
preference right lease. This subpart discusses how you may apply for 
and obtain a preference right lease for all leasable minerals except 
asphalt, which is only leased competitively or under a fringe acreage 
lease. See subpart 3508 for competitive leases, and subpart 3510 for 
fringe acreage leases.
    The requirements for obtaining a preference right lease, set out in 
Sec. 3507.11, are fairly simple: if you have been exploring an area 
under a prospecting permit and you believe you have discovered a 
valuable deposit of the mineral covered by your permit, you need to 
submit a complete preference right lease application in a timely 
manner, along with your first year's rent. We will review your 
application in order to verify that all of the terms and conditions of 
your permit have been met. We also need to verify that you have 
discovered a valuable deposit during the term of your permit.
    BLM must also determine that the lands are chiefly valuable for 
development of the specified mineral before we can issue a preference 
right lease for sodium, potassium or sulphur. We may reject your 
application for a preference right lease if your prospecting permit was 
granted under the authority of Reorganization Plan No. 3 and we find, 
after careful analysis, that mining is not the preferred use of the 
lands in the application.
    You may submit your preference right lease application any time 
during the life of the prospecting permit or within 60 days after the 
permit expires. If you apply for a lease more than 60 days after your 
permit expires, BLM will reject your preference right lease 
application.
    These regulations describe the application contents at 43 CFR 
3507.17. While there is no set application form, you must submit: 
information showing that you are qualified to hold a lease (under 
subpart 3502); maps of your proposed mining operations and facilities; 
a written description of your proposed operations, including the method 
of mining and the relationship between your operation and any other(s) 
on adjacent lands; information which shows that you have discovered a 
valuable deposit; and a legal description of the lands to be leased, if 
different from the lands in your prospecting permit. You need not lease 
all the lands covered by your prospecting permit, but all the land you 
wish to lease must have been part of the permit.
    To prove you have found a valuable deposit, you must provide BLM 
information about any core or test holes, samples and cuttings you 
collected at the site, as set out in 43 CFR 3593.1. BLM will determine 
if there is a reasonable prospect of success in developing a profitable 
mine from this information, though we may request additional 
information to complete our findings.
    BLM will grant you a lease unless:
     You have not shown a valuable deposit exists;
     Your application is late, incomplete, or otherwise 
deficient;
     You are seeking a lease for sodium, potassium or sulphur 
and BLM determines that the lands at issue are not chiefly valuable for 
that mineral; or
     We issued the prospecting permit under the authority of 
Reorganization Plan No. 3 and we determine that mining is not the 
preferred use of the land.
    You must also have complied with all of the terms and conditions of 
the prospecting permit. If you disagree with BLM's decision, you may 
appeal the decision to the Interior Office of Hearings and Appeals.

Subpart 3508--Competitive Lease Applications

    Subpart 3508 describes the competitive leasing process, which we 
use if you wish to lease mineral resources in areas where valuable 
mineral deposits exist. We cannot issue a preference right lease for 
known valuable deposits; the only way you can obtain a lease on these 
lands is under this subpart, through a lease modification or through a 
fringe acreage lease under subpart 3510 of these regulations.
    If you are interested in leasing a certain area, you should contact 
us to see if the lands are known to contain a valuable deposit. 
Generally, this includes lands where further prospecting is unnecessary 
for us to determine the existence or workability of a valuable deposit. 
We can rely on geologic inference in making these determinations. BLM 
must receive the fair market value for all minerals we lease 
competitively.
    BLM must reject a prospecting permit application if it is in an 
area where there is a known valuable deposit, but in these areas you 
may request a competitive lease. We may also initiate the competitive 
leasing process. If we determine that the lands are suitable for 
leasing, we may publish a notice of lease sale in the local newspaper 
and in the local BLM public room. This notice will contain all the 
information necessary for participating in the bidding, such as the 
sale time and location, the minimum bid, bidding method and deadlines, 
and description of the resource. Usually the bidding method will be 
sealed bids, although on appropriate occasions we may use an oral 
bidding process, or a combination of sealed and oral bids. BLM will 
also make available the statement of the lease sale terms and 
conditions.
    If you are a qualified bidder and you offer the highest acceptable 
bonus bid, meeting or exceeding fair market value, BLM may accept your 
bid. As described in section 3508.20, we will open and announce all 
bids at the lease sale, but we will not accept or reject bids at that 
time. Instead, we will review the bids. We may reject all bids, or 
accept the highest qualified bid by sending that person a lease form 
and statement of terms and conditions. If we accept your bid, you must 
sign the lease form, pay the first year's rent, publication costs and 
the balance of your bonus bid (if not already paid in full with your 
bid), and furnish the required lease bond. We will then award you the 
lease.
    If there is a tie between bidders for the highest bonus bid, we 
will determine a fair process for breaking the tie. Also, you may 
revise your bid at any time while the bidding is still open.
    BLM can reject any high bid which does not meet all the 
qualifications and requirements of these regulations. If we offer you a 
lease but you decide not to accept it, we will keep one-fifth of your 
bonus bid and refund any additional money submitted. BLM has complete 
discretion to issue a competitive lease so we can reject your bid for 
any other reason, such as a change in economic conditions. If we reject 
your bid, we will refund any money you submitted with your bid.

[[Page 53524]]

Subpart 3509--Fractional and Future Interest Leases

    This subpart concerns two types of Federal property interests that 
include less than complete ownership: Future and fractional interests. 
While these kinds of property are relatively uncommon, there are many 
instances where the public owns only a share of a mineral estate. When 
the United States owns an estate in conjunction with other owners, that 
is a fractional interest. A future interest occurs when the Federal 
Government owns the right to an estate after a certain date, but owns 
no present interest in the estate. The Federal Government acquired most 
of these limited estates during the Dust Bowl Era in order to help 
landowners recoup some of their losses from failing farms and to 
establish watershed protection measures.
    BLM leases both future and fractional interests noncompetitively to 
the party who owns or controls the present interest or partial 
interest. We added a provision that allows limited competition for 
these leases in cases where more than one person holds ownership or 
possession. These leases are not available to the public at large. For 
future interests, we may lease the future interest in a mineral tract 
to the person who owns or controls the present interest and is 
currently developing that interest. As a result, when that person's 
interest ends and Federal ownership begins, the mineral operations can 
continue under a future interest lease issued by BLM. Similarly, we may 
lease a fractional interest in a mineral estate to the owner or owners 
of the other fraction(s), or the party who has acquired the other 
owner's development rights. This allows a single operator to develop 
the minerals.
    Future interest leasing is covered in Secs. 3509.10 through 
3509.30. Since future interest leases are only available to holders of 
the present mineral interest, it is important that you show you are 
eligible for a future interest lease. You may only lease a future 
mineral interest from BLM if you own a present interest in the 
minerals, which means you must own either the record title or the 
operating rights. Furthermore, you must own all or substantially all of 
the present mineral interest. If you as a Federal lessee would control 
50 percent or less of the present interest, we may reject your 
application. To apply for a lease, you must submit evidence of this 
ownership interest, plus information showing that you are qualified to 
hold a BLM mineral lease (under subpart 3502), a land description, 
information about any other owners, and a $25 application fee.
    BLM will notify the other owners, if any, of your application. We 
will give these other owners 90 days to file additional applications. 
If we receive additional applications from other qualified owners, we 
will hold a limited competitive sale. We will use the general 
procedures in subpart 3508 to conduct the sale, but only qualified 
interest holders who applied for the lease may bid at the sale.
    If there are no other interest holders or we receive no other 
applications during the 90 day notice period, we will notify you as to 
whether we will grant the lease. We will reject your application if you 
do not qualify to hold a lease. Also, you must apply for a lease more 
than one year before the United States' ownership interest will vest or 
we will reject your application.
    Sections 3509.40 through 3509.50 cover fractional interest leases. 
BLM issues fractional interest leases where the Federal Government 
holds less than 100% of the mineral interest of the parcel. These 
leases allow the other mineral interest owners to develop the mineral 
estate.
    BLM will only grant fractional interest permits or leases when we 
believe development of the minerals is in the public interest, and with 
the consent of the surface managing agency.
    To be eligible for a lease, you must have a present interest in the 
same minerals, and you must also meet the qualification standards 
listed in subpart 3502. Your application must include a description of 
the land and the same information we require when you apply for a 
present interest Federal lease. You also need to include evidence of 
your present ownership interest; the names of any other owners of the 
mineral interests; and if you own the operating rights to the mineral 
by a contract with the owner, you also need to submit three copies of 
the contract.
    We will notify the other owners, if any, of your application. We 
will give these other owners 90 days to file additional applications. 
If we receive additional applications from other qualified owners, we 
will hold a limited competitive sale. We will use the general 
procedures in subpart 3508 to conduct the sale, but only qualified 
interest holders who applied for the lease may bid at the sale.
    BLM will reject your fractional interest application if you are not 
qualified to hold a lease, if you do not have a present interest in the 
same minerals, or if you would have a total interest of less than 50% 
once the fractional interest prospecting permit or lease is issued, 
unless we determine it would be in the public interest to issue the 
permit or lease.

Subpart 3510--Noncompetitive Leasing: Fringe Acreage Leases and 
Lease Modifications

    This subpart deals with how BLM leases mineral deposits which are 
too small to be developed independently but could be developed as part 
of a larger operation taking place on adjacent lands. We may grant you 
a separate fringe acreage lease if you are developing non-Federal 
minerals on adjacent lands. If you are operating on adjacent lands 
under a Federal lease, we may modify your existing lease to add acreage 
to your lease. In both cases you would acquire the additional mineral 
lease noncompetitively. Please note that we have renumbered this 
subpart since the proposed rule, when it was located at subpart 3514. 
As a result, subparts 3510, 3511, 3512 and 3513 in the proposed rule 
are now found at subparts 3511, 3512, 3513 and 3514, respectively.
    BLM issues fringe acreage leases for mineral deposits which are too 
small to be leased independently. This means that, in BLM's opinion, 
the deposit lacks sufficient reserves to warrant independent 
development, and that the minerals are not located in an area of 
competitive interest to other mining operations in the area. However, 
BLM will competitively lease these kinds of deposits when they have 
competitive interest. For example, BLM will lease a resource 
competitively if the mineral deposit is between two different mineral 
operations, and both parties express an interest in the fringe acreage. 
However, neither law nor policy requires us to lease the resource.
    The rules for applying for a fringe acreage lease and a lease 
modification are similar. To apply, you must submit the serial number 
of your adjacent Federal lease, or proof that you own or control the 
adjacent mineral deposit; information which shows that the mineral 
deposit you are applying for extends from your adjacent lease or 
private operation; a complete land description; an advance rental 
payment and a nonrefundable $25 application fee.
    BLM will not grant a lease through the non-competitive leasing 
process if a competitive interest exists, or if the mineral deposit is 
large enough to warrant independent development. We will also deny your 
application for the additional acreage if it would cause you to exceed 
the acreage limitations in 43 CFR 3503.37, if you are not qualified to 
hold a Federal lease under subpart 3502, or if developing the lease 
would be

[[Page 53525]]

economically inefficient or fail to properly conserve the natural 
resources.
    Because a fringe acreage lease is a new lease separate from your 
ownership or control of the adjacent lands, BLM will set the terms and 
conditions of your fringe acreage lease. If we modify an existing 
Federal lease on adjacent lands, the terms for the new acreage will be 
the same as those in your existing lease. Before we issue either type 
of authorization, you must pay the bonus amount which we will set by 
appraisal. The minimum bonus amount is $1 per acre.

Subpart 3511--Lease Terms and Conditions

    While BLM sets most of the terms and conditions separately for each 
lease, there are a number of terms and conditions which apply to all 
leases. Those terms and conditions are the subject of subpart 3511.
    The first two sections, 3511.10 and 3511.11, discuss when you may 
mine associated, related or commingled commodities under your lease. 
There are several situations where you may mine associated and related 
products. If you have a sodium lease, you may mine related compounds 
including potassium; while if you have a potassium lease, you may mine 
related products including associated sodium compounds. If you have a 
phosphate lease, you can use deposits of silica, limestone, and other 
rock on your lease during processing or refining your phosphate, 
phosphate rock and associated minerals. In all cases you must pay a 
royalty for these additional minerals.
    Producers of calcium chloride from Federal lands may also apply for 
a noncompetitive lease to produce commingled sodium chloride. This 
applies if you are producing paying quantities of calcium chloride from 
an existing mine, and if you are authorized under the regulations in 
part 3800 to produce the calcium chloride as a locatable mineral. This 
is a new provision of the regulations. You must pay a royalty for the 
commingled sodium chloride.
    Most BLM leases are in effect for an initial 20-year term, subject 
to readjustment or renewal. Each commodity has different provisions for 
renewal or readjustment, which are explained in the chart at 
Sec. 3511.15. If your lease can be readjusted, we must notify you 
before the initial lease term expires of any new terms or conditions we 
are proposing. If we fail to notify you, your lease will continue for 
another 20 years under the same terms. By contrast, if your lease 
requires that you renew it, you must contact BLM at least 90 days 
before the initial term expires and express your interest in renewal. 
If you do not notify us by this time, your lease will expire at the end 
of the initial term, and your lands may become available for re-
leasing.
    Once you receive proposed new terms under a readjusted lease, you 
can object to the terms if you disagree with them, provided you file 
your objection within 60 days of receiving the proposal. BLM will 
respond to your objection with our decision on the lease terms, which 
you may appeal if you are still dissatisfied. See the hearings and 
appeals regulations at part 4 of this title.
    While you are appealing any new terms or conditions, including 
increased rentals or royalties under a renewal or readjustment, you 
must continue paying rentals and royalties at the original rate. 
However, those increased charges will begin accruing as of the renewal 
or readjustment date. If the increase is sustained on appeal, you must 
pay any accrued charges plus interest.
    To renew your lease, you need to submit three copies of your 
application, along with a $25 application fee and an advance rental 
payment of $1 per acre, at least 90 days before your initial term 
expires. There is no particular form for your renewal application.
    Whether your lease is renewed, readjusted or otherwise extended, we 
base your priority as a lessee on the original date of your initial 
lease.

Subpart 3512--Assignments and Subleases

    Once you receive a permit or lease, you may assign it to any 
qualified person, in whole or in part, subject to BLM approval. Subpart 
3512 describes how we process assignments and subleases.
    Sections 3512.11 through 3512.17 describe the assignment and 
sublease process. To assign a lease or permit, you must send us three 
copies of your assignment instrument, which must describe the assignee, 
the interest you hold and the interest you are assigning, and any 
overriding royalties you are retaining. BLM must also receive from the 
assignee a statement of their qualifications under subpart 3502, and a 
$25 processing fee. We will notify you whether we approve your 
assignment. If you are assigning only a portion of your permit or 
lease, we will create a new permit or lease containing that portion, if 
approved.
    You may sublease your lease or transfer the operating rights in 
your permit by a similar process. Simply send us a copy of the sublease 
or transfer agreement within 90 days of the agreement's date of 
execution, and have the sublessee or transferee send a signed request 
for approval and a $25 processing fee. We will inform you of our 
decision as soon as possible. Our approval will depend on the 
recipient's qualifications and ability to meet all applicable 
regulatory provisions.
    The remaining sections in subpart 3512 concern your obligations 
under an assigned or transferred BLM authorization, and special 
circumstances. The most important provision, in section 3512.18, points 
out that your account must either be in good standing or your sublessee 
or assignee must have accepted any liabilities before we will approve 
your sublease or assignment. Furthermore, your assignee or sublessee 
must be fully bonded, which they can accomplish by either furnishing a 
new bond under subpart 3504, or by arranging to assume your existing 
bond. Until we approve the assignment, you will be responsible for all 
obligations, and if you are subleasing your lease, both you and your 
sublessee will be responsible for all obligations once we approve the 
sublease. By contrast, if you are assigning your lease or permit, your 
assignee will become responsible for all obligations after we approve 
the assignment, while you remain responsible for all obligations 
accrued before we approved it.
    Finally, if you are assigning an overriding royalty to a third 
party, you must notify BLM. While we do not have to approve the 
transfer, you must still file this assignment with BLM within 90 days 
of the transfer, along with the assignee's statement of qualifications 
and a $25 processing fee.

Subpart 3513--Waiver, Suspension or Reduction of Rental and Minimum 
Royalties

    This subpart explains how to deal with three types of changes to 
your ongoing operations: rental and royalty reductions, suspension of 
operations and production (for conservation reasons), and suspension of 
operations (for economic reasons).
    Sections 3513.11 through 3513.15 concern rental and royalty rate 
reductions, which BLM may allow temporarily if it is in the interest of 
conservation, will encourage the greatest recovery of the mineral, and 
is necessary either to promote development or to allow you to operate 
successfully under the existing lease terms. You may apply to have us 
reduce your rental, minimum royalty, or production royalty rate by 
submitting the information listed in Sec. 3513.15.
    We will consider whether you are paying excessive overriding 
royalties to

[[Page 53526]]

non-Federal parties when we review your application. Before we will 
reduce your royalty you must try to reduce any overriding royalties. 
BLM will not approve a royalty rate reduction if your overriding 
royalty exceeds 50 percent of the proposed reduced Federal royalty. For 
example, if you are seeking to reduce your production royalty to four 
percent, you must reduce any overriding royalties to a total of no more 
than two percent. BLM has the authority to order a reduction of 
overriding royalties to no more than one percent of the gross value of 
production. You can find this authority at 43 CFR 3504.26.
    Next, Secs. 3513.20 through 3513.26 concern suspensions of 
operations and production, while Secs. 3513.30 through 3513.34 concern 
suspensions of operations. Both situations involve BLM allowing or 
ordering you to temporarily cease operations; but you would suspend 
operations and production in order to protect or conserve natural 
resources, whereas you would only suspend operations for financial 
reasons. To alleviate confusion, these regulations will differentiate 
between these two situations in the table of contents by referring to 
``Suspension of Operations and Production (Conservation Concerns)'' and 
``Suspension of Operations (Economic Concerns).''
    You may cease your operations under a suspension of operations and 
production (conservation concerns) when it is necessary in the interest 
of conserving the natural resources affected by your operations. This 
can be established if you show BLM in your application for a suspension 
that you need to halt operations to benefit the resource. We can also 
reach this conclusion independently and order you to cease operations. 
If you initiate the suspension by applying to BLM for it, there is no 
particular application form; you just need to send us enough 
information to explain why the suspension will be in the best interest 
of the natural resource.
    BLM will set the effective date of your suspension of operations 
and production. Once we approve your suspension, you will be relieved 
of any production obligations, and we will reduce your minimum annual 
production requirements to reflect the portion of each year in which 
the suspension is effective. You may also cease paying rentals and 
royalties on the first day of the month following the effective date of 
the suspension. If the effective date is the first of the month, you 
may stop making payments on that day. If you pay any rent or royalty 
while the suspension is in effect, MMS will credit these payments 
toward future rental and royalty obligations.
    Meanwhile, you are still responsible for all other obligations 
under your lease, and once the suspension ends, the payment and 
production obligations resume. Your obligation to make rental and 
royalty payments resumes on the first day of the month in which you 
resume production or when the suspension expires, whichever comes 
first. Finally, BLM will extend your lease by the amount of time in 
which the suspension was in effect.
    You may also cease your operations under a suspension of operations 
(economic concerns) if you show us that your lease cannot be operated 
except at a loss, because of market conditions. BLM may approve your 
suspension of operations if you send us an application containing 
enough information to show that you cannot operate under current market 
conditions except at a loss. Once again, there is no particular 
application form.
    Unlike a suspension of operations and production (conservation 
concerns), a suspension of operations (economic concerns) does not 
extend your lease term or suspend your annual rental payment. When we 
approve a suspension of operations, we temporarily waive the minimum 
production requirements of your lease. We also waive your obligation to 
pay minimum royalty in lieu of production. If your suspension is for 
less than a full year, annual payments may be prorated to the length of 
the suspension. You still must pay your annual rental.
    Like a suspension of operations and production (conservation 
concerns), your production obligations cease on the first day of the 
month after the date which BLM sets as the effective date, unless the 
suspension is effective on the first of the month, in which case your 
obligations cease immediately. Also, the suspension ends if you resume 
production, or if the suspension expires. In either case your 
obligations resume as of the first day of the month in which the 
suspension ends. At that time your minimum annual production 
obligations resume.

Subpart 3514--Lease Relinquishments and Cancellations

    Subpart 3514 deals with the various ways in which your lease may 
end. Sections 3514.11 through 3514.21 concern relinquishments, where 
you may voluntarily give up your lease interest. Sections 3514.25 
through 3514.40 concern lease cancellations and expiration.
    You may relinquish your lease or any portion of it at any time. The 
only requirements are that you have met the terms and conditions of 
your lease, including reclamation obligations, and that relinquishment 
will not be detrimental to the public interest. Simply notify us in 
writing that you wish to relinquish your lease, with your signature and 
the date. Also, if you are only relinquishing part of your lease, you 
must clearly describe the lands you are giving up. If your application 
meets the above conditions, we will notify you of our acceptance, as of 
the date you filed the application.
    When you have relinquished your lease, you remain liable for paying 
all rentals and royalties which accrued prior to relinquishment. You 
must also provide for preserving mines, productive works and permanent 
improvements on the land.
    Section 3514.25 briefly describes lease expiration: your sodium, 
sulfur, asphalt or hardrock lease expires at the end of the lease term, 
unless you have properly filed for a renewal, in which case your lease 
continues until BLM issues a decision on your renewal request. If BLM 
rejects your renewal, your lease expires when the renewal is rejected. 
Potassium, phosphate and gilsonite leases continue for as long as you 
comply with the lease terms and conditions. See the chart at 43 CFR 
3511.15.
    Finally, Secs. 3514.30 through 3514.40 describe the circumstances 
and effects of BLM canceling your lease. BLM may cancel your lease 
through two types of actions: A court proceeding, if you fail to comply 
with the applicable law or regulations, or if you default on the terms 
of your lease; or administratively, if BLM issued your lease in 
violation of the law or any regulation.
    BLM may ask a court to cancel your lease if you violate the law or 
regulations. We may also pursue cancellation in court if you fail to 
perform any duty under the lease, and you continue to default on that 
obligation for thirty days after BLM notifies you of your default. BLM 
will generally give you thirty days after our notice to you to remedy 
the violation or show why we should not move for cancellation, before 
we take any further action.
    BLM may also administratively cancel your lease if we issued it in 
violation of any law or regulation--for example, if the lease would put 
you over the acreage limitations. In such a case, we may amend the 
lease and reissue it. However, if the defect in your lease is something 
that we cannot cure--for example, if you are ineligible to hold a 
lease--the cancellation will be final.

[[Page 53527]]

    We may waive cancellation or forfeiture if the circumstances call 
for doing so. When we waive cancellation, that waiver will have no 
impact on any future cancellation actions which may be necessary.
    Finally, if you are a bona fide purchaser of any lease interest, we 
will not cancel your lease simply because we decided to cancel your 
predecessor's lease. A bona fide purchaser is someone who bought the 
interest without any knowledge or reason to know of the lease's legal 
defects. We will dismiss you from any legal proceedings to cancel the 
lease if you are not responsible for the defect.

Subpart 3515--Mineral Lease Exchanges

    Subpart 3515 discusses mineral lease exchanges. BLM may exchange 
mineral lease rights with you when we conclude that it would benefit 
the public interest to do so.
    You can exchange your lease or a portion of your lease interests, 
as well as your preference right to a lease, for a lease of equal 
value. When you exchange a lease interest in one mineral, you can 
receive in return an interest in any leasable mineral. This includes 
hardrock minerals covered by this part. If your exchange proposal 
involves any interest in a coal lease, you must refer to the coal 
leasing regulations at 43 CFR subpart 3435.
    Either you or BLM may initiate an exchange. You may do so by 
contacting us. If we initiate an exchange, we will notify you that we 
are prepared to consider an exchange for some or all of your existing 
lease, or your preference right to lease. Our notice to you will also 
say why we believe the exchange is in the public interest, describe the 
lands we might exchange, and ask you whether you are willing to 
negotiate and for which lands.
    Exchanges must be in the public interest, which for the purposes of 
this subpart means two criteria must be met. First, we must determine 
that the benefits of operations under your existing lease or preference 
right would not outweigh the adverse effects those operations would 
have on other public values, such as scenic beauty, wildlife habitat, 
recreation, or agricultural production potential. The lands which BLM 
would receive must be free of hazardous waste, as defined under the 
hazardous waste laws. There may be other elements of the public 
interest which BLM will account for in considering an exchange as well. 
Also, BLM will comply with the requirements of NEPA when processing an 
exchange.
    BLM may exchange any lands subject to the limitations of FLPMA and 
other applicable statutes. You may also exchange a preference right to 
a lease. To do so, you must first establish your preference right 
through the procedures described in subpart 3507. Once you have 
demonstrated to our satisfaction your right to a lease, we can 
negotiate with you for an exchange lease.
    The parcels involved in an exchange must be equal in value. If the 
lands being exchanged are not equal in value, the exchange can be made 
equal with cash. However, any payment cannot exceed 25 percent of the 
total value of the land or interest in land you are receiving from BLM. 
Under certain circumstances the parties may agree to waive the 
equalizing payment. We can only agree to this waiver if it will 
expedite the exchange and if the public interest will benefit more from 
the waiver than the payment. The waiver amount can be no more than 
three percent of your new lease's total value or $15,000, whichever is 
less.
    Either you or the BLM may initiate an exchange. In order for us to 
proceed with an exchange, you must be willing to provide us any 
additional geologic and economic data we need to determine the value of 
your lease or preference right. Once we have reached an agreement on 
the lands to be exchanged, BLM will publish notice of the exchange in a 
newspaper of general circulation serving the counties where all lands 
involved are located, and arrange for a public hearing. We will solicit 
public comments on the proposed exchange, and after considering this 
input we will make our final decision to approve or reject the 
exchange.
    If we approve the exchange, we will offer you a lease containing 
the lease terms discussed in the appropriate regulations and any needed 
special stipulations. Once we approve an exchange we will include a 
statement in your new lease that you relinquish all interests in the 
land which you are giving up in exchange.

Subpart 3516--Use Permits

    This next subpart concerns special permits to use the surface of 
lands which are not included in your lease. If you have a phosphate or 
sodium lease or permit, you may apply for a permit to use the surface 
of nearby lands for purposes related to your mineral development.
    BLM may grant use permits on unappropriated, unentered lands which 
we administer. Under a phosphate use permit, you could conduct 
activities on the surface necessary to extract, treat or remove 
phosphate deposits from your leased lands. Under a sodium use permit, 
you may occupy camp sites, develop refining works, and otherwise use 
the surface to accommodate your sodium lease operations.
    To apply, send your application, a $25 processing fee, and the 
first year's rental, which is $1 per acre or fraction of an acre. Your 
application should describe the lands you seek and the specific reason 
why you feel you need to use them. You should also submit any 
additional information which demonstrates that the lands you seek are 
available and suitable for your needs. Your application must include a 
statement that you agree to pay the annual charge identified in the 
permit, which should be $1 per acre or $20, whichever is greater.
    If BLM grants your use permit, you will be able to use the lands 
for the specific purposes identified in it. Your use permit will 
contain an expiration date, but if your associated lease or permit 
expires or terminates for any reason during the life of the use permit, 
we will terminate the use permit at that time. Use permits cannot 
outlive the operations they are intended to support. Finally, if you 
fail to pay the rental within 30 days of BLM notifying you that the 
rental is due, we will terminate your use permit.

Subpart 3517--Hardrock Mineral Development Contracts; Processing 
and Milling Arrangements

    The final subpart of these regulations concerns a subject specific 
to hardrock mineral leases: development contracts and processing and 
milling arrangements. These are agreements between one or more lessees 
and other persons to collaborate on large-scale operations to develop, 
produce, or transport ores. Permits and leases committed to these 
contracts and arrangements do not count towards your maximum acreage 
holdings.
    BLM must approve any such agreement you enter into if your permits 
and leases are not to be counted toward your maximum acreage holdings. 
You may apply for BLM's approval by submitting copies of all agreements 
between you and other parties to the development contract or processing 
and milling arrangement; a statement which identifies the nature and 
reason of your request, and which shows all interests held in the area 
by the designated contractor; and a proposed plan of operations. BLM 
will approve your agreement only if it will conserve natural resources 
and is in the public interest.

[[Page 53528]]

III. Responses to Comments

    BLM received a total of 29 comments on the proposed rule. The 
commenters included nine corporations, three industry associations, 
eleven BLM offices, three other government agencies, and three 
individuals. These comments addressed a wide variety of subjects, and 
ranged from commenting on general issues to offering specific language 
changes. We have considered every comment and will address them here, 
beginning with general comments followed by responses to comments on a 
section-by-section basis.

A. Generally Applicable Comments

    The most hotly-debated issue raised by the proposed rule concerns 
the definition of a ``valuable deposit.'' Sixteen of these comments 
addressed the term ``profitable mine'' as an aspect of the definition 
of a ``valuable deposit.'' Many of these commenters say that by making 
this change we have substantially raised the standard of evidence 
required to earn an entitlement to a preference right lease. Others 
suggest that this definition exceeds our authority under the law, and 
suggest that a permittee need only show that they have established the 
``existence and workability of the deposit'' during the term of a 
prospecting permit in order to be entitled to a preference right lease. 
We have carefully considered these comments, but we have chosen to 
leave the definition as we originally proposed it.
    The proposed language does not materially change the definition or 
our existing policy. For example, BLM Instruction Memorandum WO 93-101, 
dated December 31, 1992, clearly states that BLM's policy is that 
``valuable mine'' means ``profitable mine'' in this definition. Our 
legal authority for this definition is found in the Mineral Leasing Act 
and the Mineral Leasing Act for Acquired Lands.
    This definition does not require that a prospecting permittee 
demonstrate that a profit can be made from the property. The language 
is conditioned by the phrase ``reasonable prospect of success.'' This 
means that the permittee only has to show how one can reasonably infer 
from the data collected during the period of the prospecting permit 
that further expenditure of his or her means is justified by the 
expectation he or she can develop a profitable mine.
    We have considered if we can make a distinction between a valuable 
mine and a profitable one. Is there a level of information that would 
show a hypothetical mine to be valuable, but at the same time be 
insufficient to show that it is reasonable to believe that this same 
hypothetical mine would be profitable? We do not think there is. 
Information that is less than that necessary to show a person can 
reasonably expect to develop a profitable mine may show that a valuable 
prospect exists, but is insufficient to show that a valuable mine can 
be developed. If a property is only valuable as a prospect, then the 
permittee has not yet earned an entitlement to a preference right 
lease.
    Nine commenters expressed their opinions about the new style in 
which this rule is written. As mentioned above, this rule has been 
reorganized to consolidate overlapping provisions into a single set of 
generally applicable rules. We are also writing in ``plain language,'' 
which involves transforming the rule text into a series of questions 
and answers. Commenters had mixed reactions to our new format, but 
since we are required to use plain language and to streamline all BLM 
regulations, we are not making substantial changes in response.
    More specifically, some commenters said streamlining is a bad idea 
because it took the old system, where each commodity had its own set of 
regulations, and merged them all into a single, more confusing set of 
regulations. We disagree. There are very few differences between how 
each commodity is leased, and once people get used to using the new, 
consolidated rules, they should find them just as easy to use as the 
prior rules. One commenter felt that streamlined regulations worked in 
favor of large corporate customers and against small businesses. Again, 
we disagree. BLM designed these rules to be easy for everyone to 
understand, including people entirely outside the mining industry. This 
should actually benefit small businesses, who sometimes may not have 
the same expertise as large corporations. Your local BLM office is also 
available to help you understand any regulation that affects you.
    Two commenters felt the proposed table of contents was long and 
hard to understand. We agree, so we have added groupings to the table 
of contents which should make the table of contents much easier to 
read. Now, if you want to know how to prove that you are qualified to 
hold a lease, rather than searching through all fifteen section headers 
under ``Subpart 3502--Qualification Requirements,'' you can find the 
grouping called ``How to Show Lease Qualifications'' and find the 
section you need more quickly. These groupings should also make it 
easier to understand how we structured the regulations.
    Some people also were unhappy with the question-and-answer format, 
where each section header is a question which is answered by the 
section text. This is a key aspect of plain English, which BLM is 
committed to using. Once you get used to it we believe you will find it 
very helpful.
    Several commenters did not understand the numbering system used in 
the proposed rule. Two commenters said that the numbering system in the 
proposed rule did not conform to the numbering system used in BLM's 
case tracking computer database. We made several changes in the final 
rule in response to these comments. We added subheadings under the 
major headings to clarify the organization of the rule. Also, we 
changed the tables in the rule so that we always list the commodities 
in the same order. The final rule lists the commodities in the same 
order as that used in the previous version of this rule. Also, we 
intentionally skipped numbers in the final rule. We did this to leave 
room for any future amendments and additions to this rule that might 
someday be required.
    One key index in our computer databases is the case type field. The 
case type index allows a user to search the data base for particular 
kinds of cases, for example phosphate leases, and ignore other cases. 
The first four digits of the case type field have cited the regulations 
that authorize the action. For example, the first four digits of the 
case type for competitive phosphate leases is 3515, the same as the 
citation for competitive phosphate leasing in the previous rule.
    This rule making does not require any change to our computer 
databases. If BLM needs to change this database, we will not need to 
change this rule to do so. We have placed the commodities in the order 
in which they were found in the previous version of this rule so that 
the first three digits of the case type field will refer to the rule. 
We did this as a matter of convenience and with the hope that it will 
make the rule easier to use.
    There were several general comments concerning substantive issues. 
One commenter suggested that we should ask potential lessees to certify 
themselves as qualified, rather than asking them to submit proof of 
their qualifications so that we can certify them as eligible. We did 
not accept this idea. While self-certifying could save applicants some 
time, we feel this is too important an issue for BLM to relinquish our 
responsibility. Leases issued to people who are not qualified are void 
by law, and if we granted a lease to an unqualified person and were

[[Page 53529]]

forced to shut down their operations later, it would be far more costly 
and complicated than determining qualifications at the outset. These 
problems could also occur where someone accidentally misinterprets the 
qualifications. BLM prefers to resolve these critical issues before we 
issue a lease, and we think it is in the public interest to do so.
    One commenter pointed out that we had eliminated all information on 
fractional interest leases. We have since reinstated information on 
fractional interests in this final rule, beginning at 43 CFR 3509.40.
    Two commenters requested that BLM make several changes to the 
proposed bonding requirements, such as allowing self-bonding, not 
duplicating state bonding requirements, and not requiring high premiums 
until a user has planned a surface disturbance. We have not made any 
changes to accommodate self-bonding. First, we will not accept self 
bonds because they provide no additional security to the government. A 
self bond is a personal or corporate guarantee of performance. This is 
not significantly different from the lease document. Once you sign the 
lease, you have guaranteed your performance of its terms and 
conditions. The purpose of the bond is to secure performance of these 
terms and conditions should you be unable to honor your guarantee.
    We have added language to Sec. 3504.50 that allows BLM offices to 
enter agreements with state governments on bonding. In a state where we 
have entered such an agreement, your state bond may not fully satisfy 
BLM's bonding requirement. We may still require additional bonding in 
such states because our bonds cover compliance with all terms and 
conditions of the lease. State governments generally only bond your 
reclamation obligations. BLM bonds for reclamation as well as for the 
payment of rental and royalties. If you are working in a state where 
the BLM and the state government have developed an agreement on bonds, 
the information you file with us must prove that your state bond 
completely covers your responsibilities to BLM, for the entire life of 
the BLM bond you would otherwise need. If you cannot prove this, or if 
your state bond is inadequate, we will require you to file an 
additional bond.
    The final rule does have provisions for phased bonding in 
Sec. 3504.60. This subpart allows us to adjust your bond as 
circumstances warrant. It may take some time after we issue your lease 
before you have gotten all the permits needed to open a mine. You need 
to have a full reclamation bond in place before you open the mine, but 
you may not need to have this full bond in place while you are still 
seeking permits. Subpart 3504.60 allows individual BLM offices to phase 
in your bond if appropriate.
    Finally, a few comments raised questions and offered suggestions 
for language we could use to describe areas which are known to contain 
a deposit of a leasable mineral. Exploration licenses, competitive 
leases, and fringe acreage leases are available in these areas. One 
comment requested that we use the term Known Leasing Area to describe 
areas where these authorizations are available. We chose not to change 
the language in the final rule.
    The term Known Leasing Area (KLA) comes from the BLM's practice of 
classifying lands for various purposes. The former Conservation 
Division of the U.S. Geological Survey was responsible for designating 
KLAs. The Secretary of the Interior transferred this responsibility to 
BLM in the early part of the 1980's. The boundaries of KLAs are fixed 
through a formal decision process. Because of other workload 
priorities, we have not reviewed many of these KLA designations 
recently. Some of these designations may be out of date. Therefore, we 
chose to avoid the use of the term Known Leasing Area in the final 
rule.
    Under the final rule, we intend for BLM to review each application 
to see if it is for lands known to contain a valuable deposit of a 
leasable mineral. This will be more effective than relying solely on 
old classification maps that may not be based on all currently 
available geologic data.

B. Specific Comments

Authority Citation
    Several comments suggested that we should retain the authorities 
section from the previous version of the regulations. The existing 
regulations now contain a complete list of all the statutory 
authorities which support this part. Also, each commodity section lists 
statutory authorities. In response to these comments, we expanded the 
authorities section at the beginning of the rule. We deleted the 
authorities section from each commodity section because of the way we 
consolidated the rule. However, we included any commodity-specific 
authority in the general section listing our statutory authority.

Section 3501.5

    Three commenters suggested expanding the definitions section at 
section 3501.5 to resemble the existing set of definitions. One 
commenter opposed consolidating definitions sections in general, 
reasoning that consolidated sections will be harder to work with and 
will make it more difficult to track changes to regulations because 
when BLM revises a definition we can do so by simply referring to the 
definitions section, not the affected regulations. We did not accept 
these comments, except to add the term ``acquired lands'' to the 
definitions section. We do not use several of the terms we deleted from 
the definitions section in the final rule. We deleted other terms from 
the definitions section because we believe these terms will be readily 
understood when read in the context of the rule. Therefore, we chose to 
leave these terms out of the definitions section.
    Three commenters felt the proposed definition of ``hardrock 
minerals'' was deficient. We re-wrote this definition to give a simple, 
brief explanation of what hardrock minerals generally are and what they 
are not, without listing all the specific minerals which could fall 
into this category.
    Based on a comment by a BLM office, we deleted the proposed 
definition of ``leasing,'' which we decided was unnecessary. These 
regulations explain leasing in great detail, and defining the term does 
nothing more to help the reader. We also deleted the proposed 
definition of ``Act'' because we do not use this term in the rule.

Section 3501.10

    Two commenters disputed the proposed language about who determines 
land to be chiefly valuable for a mineral, and when this determination 
is required. We amended 43 CFR 3501.10(a) to point out that BLM will 
determine if land is chiefly valuable for developing a certain mineral, 
and that BLM must do so only when someone holding a prospecting permit 
for sodium, potassium or sulphur discovers a valuable deposit and wants 
a preference right lease to mine the deposit. The permit holder does 
not make ``chiefly valuable'' determinations.

Section 3501.16

    One commenter suggested including a provision which says that we 
will determine your priority based on the date of your initial permit 
or lease. We have accepted this idea, so that now your priority will be 
determined by your original lease date, even if you have since renewed 
it.

[[Page 53530]]

Section 3501.17

    We received four comments on paragraph (b), which says that BLM or 
the surface managing agency must comply with NEPA before issuing any 
permit or lease. Two commenters requested definitions of NEPA and 
``surface managing agency'' but we felt this was unnecessary. NEPA 
refers to the National Environmental Policy Act of 1969, 42 U.S.C. 4321 
et seq. The surface managing agency will be the Federal agency 
responsible for managing the surface estate overlying a leasable 
mineral area.

Section 3502.13

    One BLM office pointed out that we no longer maintain a list of 
countries which deny U.S. citizens and corporations the opportunity to 
hold mineral leases or permits. The procedures implementing the Mineral 
Leasing Act's alien ownership provisions were changed by notice in the 
Federal Register (47 FR 27622, June 25, 1982). This comment is correct, 
so we deleted the reference to this list from this section.

Section 3502.25

    We received one question about filing evidence to show that you are 
qualified to hold a lease or permit. This comment asked if you have to 
file evidence with every application. The final rule requires that you 
do. The information you submit to one BLM office may not be shared with 
another because it stays with your application. Also, your 
qualifications may change over time. Therefore, we ask that you submit 
a copy of your proof of qualifications with each application you file.

Section 3502.30

    In response to a question we received, we changed the rule to state 
that the alien provisions apply to hardrock minerals on acquired 
National Forest lands.

Section 3503.10

    This section lists the areas which the Secretary of the Interior is 
prohibited by law from leasing because of their wilderness values. This 
includes designated wilderness, Wilderness Study Areas (WSAs), 
inholdings in wilderness, and lands recommended for wilderness 
designation by the surface managing agency. One commenter asked whether 
this also included lands in Utah that may be reinventoried for 
wilderness values. BLM is not prohibited by law from leasing these 
lands provided they are otherwise available.

Section 3503.11

    One comment pointed out that the Grand Staircase-Escalante National 
Monument was closed to mineral leasing by Presidential Proclamation on 
September 18, 1996, subject to valid existing rights. We added a 
reference to the Grand Staircase-Escalante National Monument to 
Sec. 3503.11. This section of the final rule lists those areas where we 
will not issue a permit or lease. There are no existing prospecting 
permits or preference right lease applications for the commodities 
controlled by this rule in the Grand Staircase-Escalante National 
Monument, so we will not have to consider preference right leasing for 
these commodities in this area.
    One comment pointed out that we have no legal authority to issue 
permits or leases in Ross Lake and Lake Chelan National Recreation 
Areas. We removed the reference to these areas in the final rule. The 
proposed rule copied the list of lands available for leasing from the 
previous rule. We published the previous rule in 1986. Congress passed 
the law that removed the authority to issue mineral permits or leases 
in Ross Lake and Lake Chelan National Recreation Areas in 1988. We have 
corrected the final rule.

Section 3503.20

    We received a comment asking for clarification of the difference 
between a ``consenting'' agency and a ``consulting'' one. Depending on 
the status of the surface land in question, BLM may need to consult 
with the surface managing agency, in which case we will seek their 
opinion but may not be bound by it; or we may need to obtain the 
surface management agency's consent before we may approve your lease or 
permit application. If that agency withholds its consent, we cannot 
approve your application.

Section 3503.25

    One comment suggested that we re-word this section to apply these 
regulations to all Federal mineral estate underlying private land. We 
agree and changed this section. BLM will use this rule to administer 
leasable minerals on all Federally-owned mineral estate beneath 
privately owned surface lands. In cases where the Federal Government 
has patented the surface while reserving both the mineral estate and 
the right to reenter the lands to develop the mineral estate, we can 
use these regulations directly. Deeds used to transfer land to the 
Federal Government may contain special covenants. To the extent 
practicable, these rules will be used to manage acquired Federal 
minerals beneath privately-owned surface, but special covenants may 
require exceptions to some processes or standards described here. In 
certain cases where a deed covenant requires us, we will make 
exceptions to these rules. Our regulations cannot displace the terms of 
a deed that transferred the mineral estate to the Federal Government.

Section 3503.28

    Four commenters expressed concern over this section, which says 
that BLM will specify any stipulations to your lease that the surface 
managing agency or private surface owner requires. We revised this 
section to clarify what stipulations we will add to your lease. We will 
add stipulations which BLM believes are necessary to protect the lands 
and resources. We will also add those stipulations which a surface 
managing agency requires as part of its consenting role (see 
Sec. 3503.20). BLM may also consider additional stipulations requested 
by a consulting agency or private surface owner, though we will only 
add those stipulations with which we agree.

Section 3503.31

    For the section concerning how you should describe unsurveyed lands 
in Public Land Survey states, one commenter asked why we do not allow 
you to use GPS mapping to comply with this requirement. You may use GPS 
mapping as a tool to fulfill this requirement, as long as your survey 
meets or exceeds BLM's standards for accuracy of public land surveys 
and land description.

Section 3503.37

    Two commenters requested that BLM consider raising the acreage 
limitations in section 3503.37. We raised the acreage limit for 
potassium to 96,000 acres, but we have not increased any other limits 
because the other limits are set by statute.

Section 3503.38

    One commenter asked whether BLM, when calculating your acreage 
holdings to see if you are within the acreage limits, will count your 
corporate holdings against you and also against a corporate applicant. 
The answer is yes. When we are calculating your personal acreage 
holdings, we will include acreage which is held by corporations in 
which you own an interest, in proportion with your ownership share, 
provided you own at least 10 percent of the corporation. We will also 
charge that same acreage against the corporation when it applies for a 
lease or permit. As

[[Page 53531]]

discussed above, BLM believes counting the same acreage in each case is 
the fairest way to calculate holdings.

Section 3503.41

    Whether BLM will release confidential information you submit to us 
drew two comments on this section, as well as several comments on other 
sections which require you to submit data to BLM. On this section, 
commenters asked us to make the rules more clear about when and how 
they may ask BLM to protect sensitive information from release. We 
expanded the rule by adding Secs. 3503.42 through 3503.46 to provide 
clarification on these access questions. These sections are based on a 
new rule on this subject published on October 1, 1998 (61 FR 52946).
    It is the BLM's policy to make records available to the public to 
the greatest extent possible consistent with the intent of the Freedom 
of Information Act (FOIA) (5 U.S.C. 552). We will preserve the 
confidentiality of documents when sound grounds exist for invoking one 
of the nine FOIA exemptions and we will protect sensitive information 
when appropriate under the law. We apply FOIA exemptions to information 
on a case-by-case basis, and do not categorically exempt information. 
We must process FOIA requests for mineral resources information under 
the FOIA rules of the Department at 43 CFR part 2 subpart B.
    Exemption 4 of FOIA protects trade secrets; and commercial or 
financial information obtained from a person that is privileged or 
confidential. Exemption 9 of FOIA protects geological and geophysical 
information and data, including maps, concerning wells. Executive Order 
12600 and Departmental rules at 43 CFR 2.15(d) generally require 
notification of, and consultation with, a submitter when we contemplate 
releasing arguably confidential commercial or financial information. If 
the information is obviously exempt from disclosure, the request may be 
denied without consulting with the submitter.
    It helps us complete the FOIA review of information if you clearly 
mark the information you consider to be exempt from release under FOIA 
before you submit it. BLM will consider the marked information and make 
it's access determinations as provided in the standard public 
availability of information provisions of the mineral rules at 43CFR 
3100.4, and 43 CFR 2.15(d). BLM also refers to applicable court cases 
identified in the Department of Justice FOIA Guide when making 
determinations. If we intend to release a requested record over the 
objection of a submitter, we must notify both the requester and the 
submitter in writing of our decision before we release it.
    According to newly published rules at 43 CFR 3100.4, BLM must 
contact the Indian mineral owner and the submitter if we receive a FOIA 
request for information related to Indian land and the requested 
information may be covered by Exemption 4. The Department describes the 
process we use to contact the Indian mineral owner and the submitter in 
the rules at 2 CFR 2.15(d).
    We may release some information in case files to the public without 
a FOIA request if it is not covered by a FOIA exemption. You may obtain 
more information about how FOIA relates to specific information by 
contacting the BLM FOIA Coordinator or Mineral Specialist in the office 
where the information is kept.

Section 3504.11

    The Minerals Management Service (MMS) commented that this section 
was not completely accurate: MMS accepts postal money orders, 
negotiable instruments and electronic fund transfers, in U.S. currency, 
but they do not accept cash. We revised this section to refer the 
reader to the MMS rules. We also added language to allow us to 
authorize other payment methods, such as electronic fund transfers, 
should we develop additional capabilities in the future.

Section 3504.15

    MMS also pointed out that rentals for prospecting permits are 50 
cents per acre or fraction of an acre. BLM has added this additional 
phrase to make this section more accurate.

Section 3504.16

    We received four comments on this section, reflecting different 
ideas about when rentals should be due after the first year of the 
lease. We proposed using the anniversary date in all cases, but as two 
commenters pointed out, the law requires BLM to use a January 1 
deadline for sodium, potassium and asphalt, and the anniversary date 
for all other leasable minerals. We revised this section to conform 
with the laws which require payment before January 1 for sodium, 
potassium and asphalt, on or before the anniversary date for phosphate 
and before the anniversary date for other minerals.
    We also changed the language of this section and in Sec. 3504.25 to 
clarify how lease rentals are credited against royalties. Please see 
the discussion in our response to comments for Sec. 3504.25.

Section 3504.21

    We received several comments on this section, which we converted 
into a table to make it easier to read. First, one person thought the 
section was unclear about what is a related product. We have not 
amended this section to further define related products because they 
are discussed in greater detail at 43 CFR 3511.10. Another commenter 
asked us to explain in this section that when the United States owns 
less than the entire mineral right, BLM will charge you a pro-rated 
royalty. We do not believe this language is necessary. You will be 
required to pay the full royalty amount on all of the Federal 
production. We recognize that in a situation where the Federal 
Government owns less than the full mineral estate, we are entitled to 
royalty for only that portion of the production that is credited to the 
Federal ownership. We discuss fractional interest leases more fully in 
subpart 3509.

Section 3504.25

    One comment recommended that we amend this section to require you 
to pay minimum royalties in lieu of production annually before January 
1 for sodium, asphalt and potassium, while paying them before the 
anniversary date for other minerals. We agree and changed the language.
    A comment also suggested we add a sentence pointing out that 
hardrock leases, development agreements, and operating agreements that 
are subject to escalating rentals, are exempt from minimum production 
and royalty requirements. We included this suggestion in the final 
rule.
    We also changed the language of this section to clarify a possible 
ambiguity in the proposed rule about crediting lease rental against 
royalties. We use both the term ``production royalty'' and the term 
``minimum royalty in lieu of production'' in this rule. Lease rental 
can be credited against either form of royalty in any given lease year. 
For example, in the case of a 1,000 acre, non-producing lease in its 
sixth year, a lessee would owe $1,000 in rental. The lessee would also 
owe $3,000 in minimum royalty in lieu of production. However, the 
lessee would receive a credit for the $1,000 for the rental that was 
paid, so the lessee would submit only an additional $2,000. Therefore, 
since the lessee received a credit for the rental, the lessee would 
have paid a total of $3,000 to hold the lease in this year. If the 
lessee were then to produce minerals after making the payment of 
minimum royalty in lieu of production, he or she could receive credit 
for the

[[Page 53532]]

minimum royalty in lieu of production for that year only. So, if the 
lessee produced minerals that accrued a royalty obligation of $10,000, 
the lessee would have a credit for the $3,000 already paid in minimum 
royalties in lieu of production for that lease year and would owe only 
an additional $7,000. This credit can not be carried forward into later 
lease years.

Section 3504.71

    This section discusses when BLM will release your bond and free you 
of any further liability at that site. We said in the proposed rule 
that you must first take effective measures to ensure that your 
activities would not have an adverse effect on surface or subsurface 
resources. One commenter proposed that we change this language to 
require you to assure instead that the effects of your activities have 
been minimized, but we cannot accept this suggestion. We think 
minimizing impacts is too weak a standard. BLM has a duty to see that 
your activities will cause no adverse effects on the land once your 
bond has been released.

Section 3505.30

    When you amend your application to include additional lands, we 
proposed that we use the date of the amended application to determine 
your priority. One commenter felt we should use the date of the 
original application for the lands in that application, and only apply 
the later date to added lands. However, we feel this would be unfair, 
and cannot accept this suggestion. We review applications as a whole, 
and need to apply a single date to that application. If you amend your 
application to include additional land, we will use the date you filed 
your amendment to establish the priority of your application. If you 
wish to preserve your earlier date, you can file a separate application 
for the new lands. This prevents someone from reordering their priority 
on land by attaching the land to an earlier application.

Section 3505.45

    Two commenters thought our proposed section on what you must 
include in your exploration plan was unnecessary and too detailed. We 
considered reducing this section, but decided that we should not make 
it any shorter or less detailed. BLM needs all of this information at 
the time you are submitting your prospecting permit application, not 
when the permit is already issued. We must make a careful environmental 
analysis when deciding whether or not to issue a prospecting permit 
because you may earn a preference right to a lease through prospecting 
for Mineral Leasing Act lands. Also, we need to consider if the 
exploration you propose would disclose a mineral deposit if one exists. 
Therefore, in order for us to make a fully informed decision at the 
proper time, we need this information with your prospecting permit 
application.
    We decided to keep this section intact in subpart 3505 because 
these requirements are not duplicated elsewhere in these regulations. 
We also require you to submit exploration plans when you apply for an 
exploration license. This final rule sets out the requirements in this 
section only, and subpart 3506, concerning exploration licenses, refers 
back to here.

Section 3505.501 (Suggested New Section)

    One commenter suggested adding an additional section between 
Secs. 3505.50 and 3505.51 which would require us to process prospecting 
permit applications in 180 days, including review by the surface 
managing agency. We have decided not to include this language. Each BLM 
office will strive to process applications in a timely manner. However, 
because of BLM's complex array of management duties and limited 
resources, there is always the possibility that some event could occur 
which would make it impossible to meet strict deadlines. We need to 
retain our flexibility to deal with such situations, while still 
providing quality customer service.

Section 3505.62

    In our proposed rule, we defined reasonable diligence under a 
prospecting permit as a function of how many core holes you drilled, 
among other actions. This prompted one commenter to point out that 
other holes, such as percussion or circulating holes, would also show 
that you have diligently explored an area. Therefore, we removed the 
word ``core'' from this section. We will consider any holes you drill, 
as well as other actions you take, to determine if you have been 
reasonably diligent in your exploration.

Section 3506.10

    One commenter questioned the need for exploration licenses. This 
individual also questioned the BLM's role in exploration licenses. We 
believe we need exploration licenses, but we made some changes to 
clarify the final rule in this area.
    We can only issue prospecting permits in areas where we know of no 
valuable deposit of leasable minerals. We must issue competitive leases 
on lands where we know that there is a deposit of leasable minerals. In 
some of these areas you may not be interested in bidding on a lease 
because you do not have enough geologic and environmental data. An 
exploration license provides a way for you to collect these data.
    It is important for the BLM to be involved in the exploration 
process. Before we issue a competitive lease we need to make some 
geologic and economic decisions. We need to estimate the environmental 
impacts of mining a lease tract before we can issue a lease. Also, we 
need to set the fair market value of the tract. We must make these 
decisions based on all available, relevant data.
    BLM will hold data submitted under an exploration license as 
proprietary as allowed by FOIA or until we lease the deposit. We need 
the authority to share exploration data after we lease the deposit 
because the party who gets the lease and the party who conducted the 
exploration may be different. We want the lessee to use all of the 
available data as it develops the lease.

Section 3506.15

    One commenter said that BLM should not establish core hole spacing 
because permittees and licensees have more experience in doing this. We 
have not changed this section because of this comment. We may accept 
your suggestions about establishing core hole spacing, but we will 
remain ultimately responsible. We need the authority to set hole 
spacing so that exploration addresses our priorities for data 
collection. For example, we may have important questions about ground 
water on a lease tract. A licensee may be interested in overburden 
characteristics. The location of a drill hole could be very important 
to the ground water issue, but not particularly sensitive for the 
overburden issue. We may exercise our authority to set hole spacing in 
this kind of situation. We may also need to change the location of a 
hole to protect other resources such as cultural resources. However, we 
did drop the word ``core'' from discussions of hole spacing.

Section 3507.25 (Relocated to 3507.19)

    This section has been renumbered as Sec. 3507.19. In response to 
several comments, BLM is modifying the final rule regarding the 
agency's discretion whether to issue a preference right lease. The 
modification reflects both underlying statutory differences between 
minerals administered under the Mineral Leasing Act (MLA) and minerals 
on certain acquired lands

[[Page 53533]]

administered under a different statutory scheme, as well as BLM's 
historical practice.
    Under the MLA, if the holder of a prospecting permit makes a 
discovery of a valuable mineral, that person generally is ``entitled'' 
to a preference right lease for those minerals. For example, for 
phosphate, the statute provides that:

    (I)f prior to the expiration of the permit the permittee shows 
to the Secretary that valuable deposits of phosphate have been 
discovered within the area covered by his permit, the permittee 
shall be entitled to a lease for any or all of the land embraced in 
the prospecting permit.

30 U.S.C. 211(b). See also 30 U.S.C. 262 (sodium), 272 (sulphur), and 
282 (potash) which have similar provisions. These MLA sections for 
minerals other than phosphate include the requirement that the lands 
must be ``chiefly valuable'' for production of the particular mineral. 
The Secretary's discretion whether to issue the preference right lease 
therefore effectively is limited to whether the prescribed statutory 
standard is met.
    For acquired lands, the Mineral Leasing Act for Acquired Lands 
(MLAAL) applies the MLA preference right leasing standards for the same 
minerals including phosphate, sodium, potassium and sulphur. However, 
for certain acquired lands the Secretary also has authority to lease 
other minerals not subject to the MLAAL. For example, the United States 
acquired certain lands for the Forest Service under the Weeks Act of 
1911, 16 U.S.C. 520, and the Bankhead-Jones Act, 7 U.S.C.1010. 
Originally, the authority to lease minerals underlying those lands was 
vested in the Secretary of Agriculture. However, under Reorganization 
Plan No. 3 of 1946, 5 U.S.C. App. 1, the leasing authority for certain 
of these minerals was transferred to the Secretary of the Interior. 
Under this authority, the Secretary may issue prospecting permits and 
leases for certain hardrock minerals such as lead, gold, silver, etc. 
Any decision to lease must be consistent with the purposes of the 
statute under which the lands were acquired or are being administered, 
and the Secretary of the Interior must obtain the surface managing 
agency's consent before issuing a lease. See Reorganization Plan No. 3 
of 1946 Section 402 (5 U.S.C. Appendix). The Secretary's decision to 
lease, or the surface managing agency's consent, may be based on the 
inclusion of protective stipulations. However, the Secretary has 
complete discretion whether to issue a prospecting permit which 
necessarily precedes a preference right lease application.
    Unlike the MLA (and by incorporation the MLAAL), the leasing 
provisions under Reorganization Plan No. 3 of 1946 do not include a 
provision ``entitling'' the holder of a prospecting permit to a lease 
upon making a valuable discovery. Despite this statutory difference, 
BLM adopted one regulation in 1986 applicable to minerals leased under 
all these authorities. 43 CFR 3500.0-3. Thus, under this rule, minerals 
leasable under Reorganization Plan No. 3 were treated under the same 
preference right leasing system as minerals leasable under the MLA. 
However, despite this same regulatory umbrella, BLM historically has 
treated minerals leased under Reorganization Plan No. 3 differently by 
including stipulations in the prospecting permits stating that:

    (N)o mineral development of any type is authorized hereby, and 
consent to the issuance of this prospecting permit as required by 
law and regulation (43 CFR 3500.9-1(b)) is given subject to the 
express stipulation that no mineral lease may be issued for the land 
under permit without the prior approval of the USDA Forest Service 
[in its capacity as surface management agency] and the proper 
rendition of an environmental analysis in accordance with the 
National Environmental Policy Act (NEPA) of 1969, the findings of 
which shall determine whether or not and under what terms and 
conditions the lease may be issued.

Thus, BLM made clear that issuance of the prospecting permit would not 
necessarily entitle the permit holder to a lease. Through this 
stipulation the Secretary retained discretion whether to issue the 
lease and also specified that lease issuance was contingent on Forest 
Service approval and further NEPA analysis of full scale mining. This 
stipulation was not included in MLA (and MLAAL) mineral prospecting 
permits.
    We received comments from the Forest Service and the National Park 
Service recommending that this final rule should reflect the difference 
between the minerals BLM administers under the MLA scheme and 
Reorganization Plan No. 3, consistent with BLM historical practice. We 
agree with this comment. Therefore, in subpart 3507 of the final rule, 
we have clarified the prior language to distinguish between the MLA 
(and MLAAL) minerals and Reorganization Plan No. 3 minerals. For the 
former, finding a valuable deposit under the prospecting permit more or 
less entitles the permit holder to a preference right lease, subject to 
the ``chiefly valuable'' determination. For minerals leasable under 
Reorganization Plan No. 3, if the permit holder makes a valuable 
discovery, the BLM will both make its own independent determination 
whether to issue a lease and seek surface managing agency consent 
before issuing a non-competitive lease to the permit holder. BLM's 
determination will include consideration of such factors as the 
environmental impacts of full scale mining. As noted above, this rule 
change simply has the effect of making the regulatory language 
correspond to BLM's historical practice of treating leasable minerals 
under Reorganization Plan No. 3 differently, which was accomplished 
through the stipulation in the prospecting permit.

Section 3508.15

    One commenter suggested that we give a detailed description of the 
various bidding methods that we might use in our competitive lease 
sales. This individual also suggested that the language in the proposed 
rule seemed to imply that a sealed bidding process is the only bidding 
method allowed. We have not changed the final rule in this area.
    The rule as proposed does not require a specific bidding method. 
Section 3508.15(b) requires that we publish the bidding method we will 
use in the notice of lease sale. This can include the method used to 
break ties in bidding. We think it important to leave flexibility in 
this area of the regulations. BLM wants to ensure fair bidding and that 
we obtain fair-market value for the lease tract. The methods needed to 
achieve this can vary from place to place and time to time. Since the 
rule requires that we publish the bidding method in advance of the 
sale, all interested parties will receive notice of the method we 
intend to use.

Section 3509.11

    One comment suggested that we add language to the rule saying that 
we may reject a lease application because of tangible and intangible 
environmental considerations. If we were to adopt this suggestion, we 
would have to more precisely define our use of the phrase ``in the 
public interest.'' We have chosen not to adopt this suggestion and have 
not changed the final rule. We intend for the phrase ``in the public 
interest'' to imply a consideration of the potential environmental 
costs of mineral development. It is our duty to balance the potential 
benefits of mineral development against the potential environmental 
consequences of that development when we decide that the approval of an 
application is in the public interest. In Sec. 3515.15(c), we list

[[Page 53534]]

the items we consider when making determinations of the public 
interest. We do not repeat this list every time we use the phrase ``in 
the public interest'' because we want to limit the redundancy in this 
rule.

Section 3509.12

    One commenter pointed out that it is inaccurate to refer in this 
section to the ``person who has a present interest in minerals * * *'' 
because there can be more than one owner. We made this change.

Section 3509.18 (New Section)

    One commenter pointed out that we provided no means to resolve 
situations where more than one qualified party applied for a future 
interest lease. Based on this comment, we added a section that requires 
us, when we receive a future interest lease application, to notify all 
present interest owners and give them a chance to apply for a future 
interest lease. We would then hold a competitive lease sale among the 
qualified applicants. We believe this change is needed so that our 
process is fair to all present interest holders.

Section 3509.40 to 3509.51 (New Sections)

    One commenter pointed out that we had omitted regulations on 
fractional interest leasing. This was an oversight in the proposed 
rule. We added these sections to address fractional interest leasing. 
The fractional interest leasing section is similar to the language on 
future interest leasing.

Section 3510.20 (Relocated to 3511.10)

    One commenter suggested that we add language to this section to 
address hardrock mineral leases. We did not change the text in the 
final rule, although we did move this section to Sec. 3511.10 as part 
of our reorganization of subparts 3510 through 3514. This section of 
the regulations describes BLM's special authorities to issue leases to 
mine more than one commodity under a mineral lease. The intent of this 
section is to bring attention to certain commodities we lease only 
because of their association with a leasable mineral. For example, you 
would normally develop limestone under our mineral materials program or 
under the authority of the general mining law. However, if you develop 
limestone on your lease to support phosphate processing, your lease 
includes the limestone and you pay a royalty on its production. This is 
a special provision of the Mineral Leasing Act. We do not need to make 
a similar distinction for hardrock minerals, because on lands where we 
lease hardrock minerals, we lease all minerals except common clay and 
common varieties of sand, stone, gravel, pumice, pumicite and cinders. 
We do not need special authority to lease both lead and zinc from the 
same parcel.

Section 3510.21 (Relocated to 3511.11)

    This section discusses the conditions for producing sodium chloride 
commingled with your calcium chloride deposit. One person suggested 
that royalties should be limited to two or three percent of the gross 
value of the sodium, and that BLM should not apply royalties 
retroactively. We have not proposed collecting royalties retroactively, 
nor will we in this rule. However, we will not accept the suggestion to 
place a limit on the royalty rate. That rate must be determined based 
on the circumstances particular to the site, just as we determine 
royalties for all other leases. This is because BLM has an obligation 
to collect fair market value for the use of public resources.

Section 3511.11 (Suggested New Section)

    One person suggested that we add a section at the beginning of 
subpart 3511 stating that leases will contain provisions to change the 
name on a lease by having the new lessee send notice. We cannot do 
this, for several reasons. First, we must hear from the original lessee 
so that we can be sure a proper assignment agreement exists. Second, 
BLM must approve the new lessee before the transfer can take place, 
including verifying that bonding is adequate and that the new lessee is 
qualified to hold the lease. Finally, we must verify that the original 
lessee has paid all royalties before we can approve any assignment or 
sublease.

Subpart 3512 (Relocated to Subpart 3513)

    One commenter suggested that we change the term ``minimum 
royalties'' in the name of this subpart and all other places to 
``advance royalties''. This term refers to minimum royalties in lieu of 
production. The term ``advanced royalties'' is used in our coal 
regulations for a lease obligation with a different statutory source. 
We did not make this change because we do not wish to confuse this 
phrase with the phrase used in our coal rules.

Section 3512.15 (Relocated to 3513.15)

    One reader asked whether you can apply to have your rental, 
royalty, or minimum production obligations reduced in anticipation of a 
problem, or whether you must wait until you experience a problem that 
prevents you from meeting your obligations. If you are facing financial 
difficulties, BLM may reduce your obligations if it is also in the 
interest of conservation and will promote greater recovery of the 
resource. You may file your application with us at any time; however, 
the relief described in this section (which has been relocated and 
renamed) does not depend solely on your financial situation. Therefore, 
we will not change this section to reflect whether you have experienced 
a problem yet or not, because we do not base our decision solely on 
this criterion. Rather, BLM may waive or reduce your obligations if 
doing so is in the interest of conservation, will encourage the 
greatest ultimate recovery of the resource, and is necessary either to 
promote mineral development or will allow the lease to be successfully 
operated.

Sections 3512.20 and 3512.30 (Relocated to 3513.20 and 3513.30)

    We received several comments on these sections. Some comments 
questioned BLM's authority to initiate Suspensions of Operations and 
Production. Other comments requested small changes to the rule text. We 
changed the language in the final rule so the difference between 
Suspension of Operations and Production and Suspension of Operations is 
more clear. We made other small changes in the final rule and moved 
these subparts to 3513.20 and 3513.30.
    The two kinds of suspensions have different purposes and effects. 
To bring attention to the differences between the suspensions we added 
the label Conservation Concerns to the subheading Suspensions of 
Operations and Production. We added the label Economic Concerns to the 
subheading Suspension of Operations.
    Suspensions of Operations and Production (Conservation Concerns) 
derive from 30 U.S.C. 209. This section of the Mineral Leasing Act 
gives the Secretary the authority to either direct or assent to 
Suspensions of Operation and Production (Conservation Concerns). 
Conservation concerns apply to a broad variety of resources including 
conservation of the leased mineral and other resources. A Suspension of 
Operations and Production (Conservation Concerns) suspends the 
obligations of the lessee to produce the mineral, to pay royalty in 
lieu of production, and to pay rental. The suspension also extends the 
term of the lease by the amount of time the suspension is in effect.

[[Page 53535]]

    The lessee must initiate a Suspension of Operations (Economic 
Concerns). The Mineral Leasing Act mentions Suspensions of Operations 
affecting phosphate leases at 30 U.S.C. 212, and such suspensions 
affecting potash leases at 30 U.S.C. 283. Our authority for suspensions 
of operations for other commodities derives from the Secretary's 
general authority to issue regulations found at 30 U.S.C. 189. The 
Secretary may permit a Suspension of Operations (Economic Concerns) if 
the lessee shows that the lease can only be operated at a loss because 
of market conditions. A Suspension of Operations (Economic Concerns) 
suspends the obligations of the lessee to produce the mineral, and to 
pay royalty in lieu of production. The lessee must still pay the annual 
rental and the suspension does not extend the term of the lease.

Section 3512.26 (Relocated to 3513.26)

    One comment on this section said that during Suspensions of 
Operations and Production (Conservation Concerns), MMS may allow credit 
towards future payments if you paid rental or royalties while the 
suspension was in force. We made the change suggested by this comment.

Section 3513.11 (Relocated to 3514.11)

    One comment suggested we change this text to say BLM ``accepts'' 
relinquishments, rather than ``approving'' them. Another comment on 
this section suggested we add language that says you will be free from 
continuing obligations after BLM has accepted your relinquishment. We 
did not make these changes. We believe we must approve relinquishments 
so that we can prevent high-grading of mineral deposits and other 
damage to resources. Also, when BLM approves your relinquishment, you 
are not free from the obligations you accrued during the term of your 
lease. You may still be responsible for outstanding payment 
obligations, reclamation and other continuing duties.

Subpart 3514 (Relocated to Subpart 3510)

    One comment suggested that we change the regulations on fringe 
acreage leases to require that fringe acreage lessees get a prospecting 
permit first, and that BLM or the surface owner should grant 
prospecting permits whenever the lessee notifies us of its intent to 
prospect. We have not made any changes based on this comment. We issue 
fringe acreage leases for known deposits. Prospecting permits are not 
needed for these leases. You can get a noncompetitive fringe acreage 
lease if your application meets all of our requirements. We must also 
determine that the lands are available for leasing and the conditions 
for fringe acreage leasing have been met.

Subpart 3515

    The proposed rule changed the provision that confined lease 
exchanges to those involving leases of ``comparable'' value to 
``equal'' value. One commenter objected to this change, while another 
supported it. The statute requires BLM to use the ``equal'' value 
standard. The objecting commenter felt that this would be too 
inflexible and delay exchanges while we got bogged down determining the 
exact dollar amounts involved. However, we do not agree. We have enough 
flexibility in this area because these regulations allow us to make or 
accept equalization payments and we can even waive equalization 
payments when the difference in the values of the leases is less than 
three percent or $15,000.

Section 3516.10

    One comment pointed out that use permits are not available on lands 
administered by the National Park Service. We have changed this section 
to state that use permits are only available on unentered, 
unappropriated, BLM-administered land.

Section 3517.10

    One commenter suggested BLM might add provisions to the section on 
development contracts and processing and milling arrangements, covering 
topics like contract duration, renewals, readjustments and financial 
obligations. However, we have not made any changes to this effect. BLM 
handles these details on a case-by-case basis, so regulations would be 
inappropriate.

IV. Procedural Matters

National Environmental Policy Act

    BLM has prepared an environmental assessment (EA) and has found 
that the final 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, 42 
U.S.C. 4332(2)(C). This rule, as discussed above, is limited to changes 
that will help mineral leasing programs operate more efficiently, and 
to non-substantive changes to how the rule is written and organized. 
BLM has placed the EA and the Finding of No Significant Impact 
(FAIENCE) 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 ADDRESS).
    We also determined that the rule will have no impact, or will only 
marginally benefit, the following critical elements of the human 
environment as defined in the BLM National Environmental Policy 
Handbook (H-1790-1, appendix 5): Air quality, areas of critical 
environmental concern, cultural resources, Native American religion 
concerns, threatened or endangered species, hazardous or solid waste, 
water quality, prime and unique farmlands, wetlands, riparian zones, 
wild and scenic rivers, environmental justice and wilderness.

Paperwork Reduction Act

    We have determined that this rule complies with requirements under 
the Paperwork Reduction Act (44 U.S.C. 3501), since we are not 
significantly altering current policy. This rule contains no 
information collections that require approval by OMB.

Regulatory Flexibility Act

    BLM certifies that this rule will not have a significant economic 
effect on a substantial number of small entities as defined under the 
Regulatory Flexibility Act (5 U.S.C. 601 et seq.). The revised 
regulations will not significantly change the mineral leasing program 
operations. Therefore, a final Regulatory Flexibility Analysis and 
Small Entity Compliance Guide is not required.
    In accordance with Small Business Administration regulations at 13 
CFR 121.201, a ``small entity'' in this section is an individual, 
limited partnership, or small company with fewer than 500 employees or 
less than $5 million in revenue and considered to be at ``arm's 
length'' from the control of any parent companies.

Small Business Regulatory Enforcement Fairness Act

    We have determined that this rule is not a major rule under the 
Small Business Regulatory Enforcement Fairness Act (5 U.S.C. 804(2)). 
As explained above, we are not making significant alterations to 
current policy. This rule:
    a. Does not have an annual effect on the economy of $100 million or 
more;
    b. Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions; and
    c. Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises.

[[Page 53536]]

Unfunded Mandates Reform Act

    We have determined that this rule is not a significant regulatory 
action under the Unfunded Mandates Reform Act (2 U.S.C. 1501 et seq.) 
Because it does not result in the expenditure by the State, local and 
tribal governments, in the aggregate, or by the private sector of $100 
million or more in any one year. As explained above, we are not making 
significant alterations to current policy, and therefore, do not need 
to complete a Small Government Agency Plan. This rule:
    a. Will not ``significantly or uniquely'' affect small governments; 
and
    b. Will not produce a Federal mandate of $100 million or greater in 
any year.

Executive Order 12630

    The final 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 primary function 
of the final rule is to abolish unnecessary regulations, 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

    BLM has determined that this rule is not a significant regulatory 
under Regulatory Planning and Review (Executive Order 12866); however, 
the Office of Management and Budget (OMB) makes the final decision. 
Since the new regulations will not make significant policy changes, 
this rule;
    a. Will not have an annual effect on the economy of $100 million or 
more or adversely affect the economy in a material way, a sector of the 
economy, productivity, competition, hobs, the environment, public 
health or safety, or State, local or Tribal governments or communities;
    b. Will not create inconsistencies with other agencies;
    c. Will not materially affect entitlements, grants, loan programs, 
or rights and obligations of their recipients; and
    d. Will not raise novel legal or policy issues.

Executive Order 12988

    We have determined that this rule does not unduly burden the 
judicial system and therefore, meet the requirements under the Civil 
Justice Reform (Executive Order 12988, sections 3(a) and 3(b)(2)). As 
explained above, no significant changes are being made to current 
policy.

Executive Order 12612

    We have determined that this rule does not have significant 
federalism effects. As explained above, we are not significantly 
changing BLM policy, and therefore, a Federalism Assessment is not 
required. This rule does not change the role or responsibilities 
between Federal, State, and local governmental entities; does not 
relate to the structure and role of States or have direct, substantive, 
or significant effects on States; and does not intend to address the 
relationship between the United States and any other non-Federal 
governmental entity.

Government-to-Government Relationship With Tribes

    We have considered the impact of this rule on the interests of 
Tribal governments under the President's memorandum of April 29, 1994, 
``Government-to-Government Relations with Native American Tribal 
Governments'' (59 FR 22951) and the Department of Interior Manual (512 
DM 2). Since this rule does not propose significant changes to BLM 
policy, we have determined that the government-to-government 
relationships should remain unaffected.

List of Subjects

43 CFR Part 3500

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

43 CFR Part 3510

    Public lands-mineral resources, Reporting and record keeping 
requirements.

43 CFR Part 3520

    Government contracts, Public lands-mineral resources.

43 CFR Part 3530

    Government contracts, Mineral royalties

43 CFR Part 3540

    Land Management Bureau, 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 record keeping 
requirements.

    Dated: September 23, 1999.
Sylvia V. Baca,
Assistant Secretary--Land and Minerals Management.

    Accordingly, BLM amends 43 CFR Chapter II as follows:
    1. Remove parts 3500, 3510, 3520, 3530, 3540, 3550, 3560, 3570 and 
the heading ``Group 3500--Management of Solid Minerals Other Than 
Coal.''
    2. 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 authority for this part?
3501.2  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 can I get under 
these rules?
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 issuance of 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  May I appeal BLM's decisions under this part?

Subpart 3502--Qualification Requirements

Lease Qualifications

3502.10  Who may hold permits and leases?
3502.13  May foreign citizens hold permits or leases?
3502.15  Are there any additional restrictions on holding leases or 
interests in leases?
3502.20  Will BLM issue a lease to me if I am not complying with the 
diligence requirements of the Mineral Leasing Act?

How To Show Lease Qualifications

3502.25  Where do I file evidence that I am qualified to hold a 
permit or lease?
3502.26  May I supplement or update my qualifications statement?
3502.27  If I am an individual, what information must I give BLM in 
my qualifications statement ?

[[Page 53537]]

3502.28  If I am an association or a partnership, what information 
must I give BLM in my qualifications statement?
3502.29  If I am a guardian or trustee for a trust holding on behalf 
of a beneficiary, what information must I give BLM in my 
qualifications statement?
3502.30  If I am a corporation, what information must I give BLM in 
my qualifications statement?

Special Situations and Additional Concerns

3502.33  If I represent an applicant as an attorney-in-fact, do I 
have to submit anything to BLM?
3502.34  What must I submit if there are other parties in interest?
3502.40  What happens if an applicant or successful bidder for a 
permit or lease dies before the permit or lease is issued?
3502.41  What happens to a permit or lease if the permittee or 
lessee dies?
3502.42  What happens if the heir is not qualified?

Subpart 3503--Areas Available for Leasing

Available Areas Under BLM Management

3503.10  Are all Federal lands available for leasing under 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 may I receive a sulphur permit or lease?
3503.13  For what areas may I receive a hardrock mineral permit or 
lease?
3503.14  For what areas may I get a permit or lease for asphalt?
3503.15  May 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?

Available Areas Managed by Others

3503.20  What if another Federal agency manages the lands I am 
interested in?
3503.21  What happens if the surface of the land I am interested in 
belongs to a non-Federal political subdivision or charitable 
organization?
3503.25  When may 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?

Land Descriptions

3503.30  How should I describe surveyed lands or lands shown on 
protraction or amended protraction diagrams in states which are part 
of the Public Land Survey System?
3503.31  How should I describe lands in states which are part of the 
Public Land Survey System but have not been surveyed and are not 
shown on a protraction or amended protraction diagram?
3503.32  How should I describe acquired lands?
3503.33  Will BLM issue me a lease for unsurveyed lands?

Acreage Amounts

3503.36  Are there any size or shape limitations on the lands I can 
apply for?
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?

Filing Applications

3503.40  Where do I file my permit or lease application and other 
necessary documents?
3503.41  Will BLM disclose information I submit under these 
regulations?
3503.42  When I submit confidential, proprietary information, how 
can I help ensure it is not available to the public?
3503.43  How long will information I give BLM remain confidential or 
proprietary?
3503.44  How will BLM treat Indian information submitted under the 
Indian Mineral Development Act?
3503.45  How will BLM administer information concerning other Indian 
minerals?
3503.46  When will BLM consult with Indian mineral owners when 
information concerning their minerals is the subject of a FOIA 
request?

Subpart 3504--Fees, Rental, Royalty and Bonds

General Information

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?

Rentals

3504.15  How does BLM determine my rent?
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 on time?

Royalties

3504.20  What are the requirements for paying royalties on 
production?
3504.21  What are the minimum the royalty rates?
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?

Bonding

3504.50  Do I have to file a bond to receive a permit or lease?
3504.51  How do I file my bond?
3504.55  What types of bonds are acceptable?
3504.56  If I have more than one permit or lease, 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 if I do not meet my permit or lease 
obligations?
3504.66  Must I 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  Do I need a prospecting permit to collect mineral specimens 
for non-commercial purposes?

Applying for Prospecting Permits

3505.12  How do I obtain a prospecting permit?
3505.13  What must my application include?
3505.15  Is there an acreage limit for my application?
3505.25  How does BLM prioritize applications for prospecting 
permits?
3505.30  May I amend or change my application after I file it?
3505.31  May I withdraw my application after I file it?
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 BLM has approved or rejected my 
application?
3505.51  May I file a revised application if BLM rejects my original 
application?

Prospecting Permit Terms and Conditions

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  May BLM extend the term of my prospecting permit?
3505.62  Under what conditions will BLM extend my prospecting 
permit?
3505.64  How do I apply for an extension?
3505.65  What information must I include in my extension request?
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?
3505.80  What happens when my permit expires?
3505.85  May BLM cancel my prospecting permit for reasons other than 
failure to pay rental?

Subpart 3506--Exploration Licenses

General Information

3506.10  What is an exploration license?

Applying for and Obtaining Exploration Licenses

3506.11  What must I do to obtain an exploration license?
3506.12  Who prepares and publishes the notice of exploration?
3506.13  What information must I provide to BLM to include in the 
notice of exploration?
3506.14  May others participate in the exploration program?
3506.15  What will BLM do in response to my exploration license 
application?

[[Page 53538]]

Terms; Modifications

3506.20  After my license is issued, may I modify my license or 
exploration plan?
3506.25  Once I have a license, what are my responsibilities?

Subpart 3507--Preference Right Lease Applications

3507.11  What must I do to obtain a preference right lease?
3507.15  How do I apply for a preference right lease?
3507.16  Is there a fee or payment required with my application?
3507.17  What information must my preference right lease application 
include?
3507.18  What do I need to submit to show that I have found a 
valuable deposit?
3507.19  Under what circumstances will BLM reject my application?
3507.20  May I appeal BLM's rejection of my preference right lease?

Subpart 3508--Competitive Lease Applications

3508.11  What lands are available for competitive leasing?
3508.12  How do I get a competitive lease?
3508.14  How will BLM publish the notice of lease sale?
3508.15  What information will the detailed statement of the lease 
sale terms and conditions 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 BLM rejects my bid?

Subpart 3509--Fractional and Future Interest Lease Applications

3509.10  What are future interest leases?
3509.11  Under what conditions will BLM issue a future interest 
lease to me?
3509.12  Who may apply for a future interest lease?
3509.15  Do I have to pay 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?
3509.18  What will BLM do after it receives my application for a 
future interest lease?
3509.20  When does my future interest lease take effect?
3509.25  For what reasons will BLM reject my application for a 
future interest lease?
3509.30  May I withdraw my application for a future interest lease?
3509.40  What are fractional interest prospecting permits and 
leases?
3509.41  For what lands may BLM issue fractional interest 
prospecting permits and leases?
3509.45  Who may apply for a fractional interest prospecting permit 
or lease?
3509.46  How do I apply for a fractional interest prospecting permit 
or lease?
3509.47  What information must I include in my application for a 
fractional interest prospecting permit or lease?
3509.48  What will BLM do after it receives my application for a 
fractional interest lease?
3509.49  What terms and conditions apply to my fractional interest 
prospecting permit or lease?
3509.50  Under what conditions would BLM reject my application for a 
fractional interest prospecting permit or lease?
3509.51  May I withdraw my application for a fractional interest 
prospecting permit or lease?

Subpart 3510--Noncompetitive Leasing: Fringe Acreage Leases and Lease 
Modifications

3510.11  If I already have a Federal lease, or the mineral rights on 
adjacent private lands, may I lease adjoining Federal lands that 
contain the same deposits without competitive bidding?
3510.12  What must I do to obtain a lease modification or fringe 
acreage lease?
3510.15  What will BLM do with my application?
3510.20  Do I have to pay a fee to modify my existing lease or 
obtain a fringe acreage lease?
3510.21  What terms and conditions apply to fringe acreage leases 
and lease modifications?

Subpart 3511--Lease Terms and Conditions

3511.10  Do certain leases allow me to mine other commodities as 
well?
3511.11  If I am mining calcium chloride, may I obtain a 
noncompetitive mineral lease to produce the commingled sodium 
chloride?
3511.12  Are there standard terms and conditions which apply to all 
leases?
3511.15  How long will my lease be in effect?
3511.25  What is meant by lease readjustment and lease renewal?
3511.26  What if I object to the terms and conditions BLM proposes 
for a readjusted lease?
3511.27  How do I renew my lease?
3511.30  If I appeal BLM's proposed new terms, must I continue 
paying royalties or rentals while my appeal is pending?

Subpart 3512--Assignments and Subleases

How To Assign Leases

3512.11  Once BLM issues me a permit or lease, may I assign or 
sublease it?
3512.12  Is there a fee for requesting an assignment or sublease?
3512.13  How do I assign my permit or lease?
3512.16  How do I sublease my lease?
3512.17  How do I transfer the operating rights in my permit or 
lease?

Special Circumstances and Obligations

3512.18  Will BLM approve my assignment or sublease if I have 
outstanding liabilities?
3512.19  Must I notify BLM if I intend to transfer an overriding 
royalty to another party?

Effect of Assignment on Your Obligations

3512.25  If I assign my permit or lease, when do my obligations 
under the permit or lease end?
3512.30  What are the responsibilities of a sublessor and a 
sublessee?
3512.33  Does an assignment or sublease alter the permit or lease 
terms?

Subpart 3513--Waiver, Suspension or Reduction of Rental and Minimum 
Royalties

Rental and Royalty Reductions

3513.11  May BLM relieve me of the lease requirements of rental, 
minimum royalty, or production royalty while continuing to hold the 
lease?
3513.12  What criteria does BLM consider in approving a waiver, 
suspension, or reduction in rental or minimum royalty, or a 
reduction in the royalty rate?
3513.15  How do I apply for reduction of rental, royalties or 
minimum production?

Suspension of Operations and Production (Conservation Concerns)

3513.20  What is a suspension of operations and production 
(conservation concerns)?
3513.21  What is the effect of a suspension of operations and 
production (conservation concerns)?
3513.22  How do I apply for a suspension of operations and 
production (conservation concerns)?
3513.23  May BLM order a suspension of operations and production 
(conservation concerns)?
3513.25  When will my suspension of operations and production 
(conservation concerns) take effect?
3513.26  When and how does my suspension of operations and 
production (conservation concerns) expire or terminate?

Suspension of Operations (Economic Concerns)

3513.30  What is a suspension of operations (economic concerns)?
3513.31  What is the effect of a suspension of operations (economic 
concerns)?
3513.32  How do I apply for a suspension of operations (economic 
concerns)?
3513.33  When will my suspension of operations (economic concerns) 
take effect?
3513.34  When and how does my suspension of operations (economic 
concerns) expire or terminate?

Subpart 3514--Lease Relinquishments and Cancellations

Relinquishing Your Lease

3514.11  May I relinquish my lease or any part of my lease?
3514.12  What additional information should I include in a request 
for partial relinquishment?
3514.15  Where do I file my relinquishment?
3514.20  When is my relinquishment effective?
3514.21  When will BLM approve my relinquishment?

[[Page 53539]]

Cancellations, Forfeitures, and Other Situations

3514.25  When does my lease expire?
3514.30  May BLM cancel my lease?
3514.31  May BLM waive cancellation or forfeiture?
3514.32  Will BLM give me an opportunity to remedy a violation of 
the lease terms?
3514.40  What if I am a bona fide purchaser and my lease is subject 
to cancellation?

Subpart 3515--Mineral Lease Exchanges

Lease Exchange Requirements

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  May BLM initiate an exchange?
3515.16  What standards does BLM use to assess the public interest 
of an exchange?
3515.18  Will I be notified when BLM is considering initiating an 
exchange that will affect my lease?

Types of Lease Exchanges

3515.20  May I exchange preference rights?
3515.21  What types of lands can be exchanged?
3515.22  What if the lands to be exchanged are not of equal value?

Lease Exchange Procedures

3515.23  May BLM require me to submit additional information?
3515.25  Is BLM required to publish notice or hold a hearing?
3515.26  When will BLM make a decision on the exchange?
3515.27  Will BLM attach any special provisions to the exchange 
lease?

Subpart 3516--Use Permits

3516.10  What are use permits?
3516.11  What kinds of permits or leases allow use permits?
3516.12  What activities may I conduct under a use permit?
3516.15  How do I apply for a use permit?
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--Hardrock Mineral Development Contracts; Processing and 
Milling Arrangements

3517.10  What are development contracts and processing and milling 
arrangements?
3517.11  Are permits and leases covered by approved agreements 
exempt from the acreage limitations?
3517.15  How do I apply for approval of one of these agreements?
3517.16  How does BLM process my application?

    Authority: 5 U.S.C. 552; 30 U.S.C. 189 and 192c, 43 U.S.C. 1733 
and 1740; and 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 authority for this part?

    The statutory authority for the regulations in this group is as 
follows:
    (a) Leasable minerals--(1) Public domain. The Mineral Leasing Act 
of 1920, as amended (30 U.S.C. 181 et seq.).
    (2) Acquired lands. The Mineral Leasing Act for Acquired Lands of 
1947, as amended (30 U.S.C. 351-359) and the Act of June 28, 1944 (58 
Stat. 483-485) for those lands reserved from allotment by section 58 of 
the supplemental agreement of 1902 (32 Stat. 654) with the Choctaw-
Chickasaw Nation of Indians. Congress ratified the purchase contract in 
the Act of June 24, 1948 (62 Stat. 596) and appropriated funds for the 
purchase in the Act of May 24, 1949 (63 Stat. 76).
    (b) Hardrock minerals.
    (1) Section 402 of Reorganization Plan No. 3 of 1946 (5 U.S.C. 
Appendix) transferred the functions of the Secretary of Agriculture for 
the leasing or other disposal of minerals to the Secretary of the 
Interior for lands acquired under the following statutes:
    (i) The Act of March 4, 1917 (16 U.S.C. 520);
    (ii) Title II of the National Industrial Recovery Act of June 16, 
1933 (40 U.S.C. 401, 403(a) and 408);
    (iii) The 1935 Emergency Relief Appropriation Act of April 8, 1935 
(48 Stat. 115, 118);
    (iv) Section 55 of Title I of the Act of August 24, 1935 (49 Stat. 
750, 781);
    (v) The Act of July 22, 1937 (50 Stat. 522, 525, 530), as amended 
July 28, 1942 (7 U.S.C. 1011(c) and 1018); and
    (vi) Section 3 of the Act of June 28, 1952 (66 Stat. 285).
    (2) Section 3 of the Act of September 1, 1949 (30 U.S.C. 192c) 
authorized the issuance of mineral leases or permits for the 
exploration, development and utilization of minerals, other than those 
covered by the Mineral Leasing Act for Acquired Lands, in certain lands 
added to the Shasta National Forest by the Act of March 19, 1948 (62 
Stat. 83).
    (3) The Act of June 30, 1950 (16 U.S.C. 508(b)) authorizes leasing 
of the hardrock minerals on National Forest lands in Minnesota.
    (c) Special acts. (1) Gold, silver or quicksilver in confirmed 
private land grants are covered by the Act of June 8, 1926 (30 U.S.C. 
291-293).
    (2) Reserved minerals in lands patented to the State of California 
for parks or other purposes are covered by the Act of March 3, 1933 (47 
Stat. 1487), as amended by the Act of June 5, 1936 (49 Stat. 1482) and 
the Act of June 29, 1936 (49 Stat. 2026).
    (3) National Park Service Areas. Congress authorized mineral 
leasing, including the leasing of nonleaseable minerals in the manner 
prescribed by section 10 of the Act of August 4, 1939 (43 U.S.C. 387), 
in the following national recreation areas:
    (i) Lake Mead National Recreation Area--The Act of October 8, 1964 
(16 U.S.C. 460n-et seq.);
    (ii) Whiskeytown Unit of the Whiskeytown-Shasta-Trinity National 
Recreation Area--The Act of November 8, 1965 (16 U.S.C. 460q-et seq.);
    (iii) Glen Canyon National Recreation Area--The Act of October 27, 
1972 (16 U.S.C. 460dd et seq.).
    (4) Shasta-Trinity Units of the Whiskeytown-Shasta-Trinity National 
Recreation Area. Section 6 of the Act of November 8, 1965 (16 U.S.C. 
460q-et seq.) authorizes mineral leasing, including the leasing of 
nonleasable minerals in the manner prescribed by section 3 of the Act 
of September 1, 1949 (30 U.S.C. 192c), on lands within the Shasta-
Trinity Units of the Whiskeytown-Shasta-Trinity National Recreation 
Area.
    (5) White Mountains National Recreation Area. Sections 403, 404, 
and 1312 of the Alaska National Interest Lands Conservation Act (16 
U.S.C. 460mm-2 through 460mm-4) authorize the Secretary of the Interior 
to permit the removal of the nonleasable minerals from lands or 
interests in lands within the recreation area in the manner described 
by section 10 of the Act of August 4, 1939, as amended (43 U.S.C. 387), 
and the removal of leasable minerals from lands or interest in lands 
within the recreation area in accordance with the mineral leasing laws.
    (d) Land management. The Federal Land Policy and Management Act of 
1976 (43 U.S.C. 1701 et seq.) authorizes the management and use of the 
public lands.
    (e) Fees. The Independent Offices Appropriation Act (31 U.S.C. 
9701) authorizes agencies to charge fees to recover the costs of 
providing services or things of value.


Sec. 3501.2  What is the scope of this part?

    (a) This part applies to minerals other than oil, gas, coal and oil 
shale, leased under the mineral leasing acts, and to hardrock minerals 
leasable 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. Special areas 
identified in part 3580 of this title

[[Page 53540]]

and asphalt on certain lands in Oklahoma also are leased under this 
part. Check part 3580 to identify any special provisions that apply to 
those special areas.
    (b) This part does not apply to Indian lands or minerals except 
where expressly noted.


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:
    Acquired lands means lands or interests in lands, including mineral 
estates, which the United States obtained through purchase, gift, or 
condemnation. It includes all lands BLM administers for hardrock 
mineral leasing other than public domain lands.
    Chiefly valuable, for the purposes of this part, means the land is 
more valuable for the development of sodium, sulphur or potassium than 
for any non-mineral use of the land.
    Hardrock minerals include base metals, precious metals, industrial 
minerals, and precious or semi-precious gemstones. Hardrock minerals do 
not include coal, oil shale, phosphate, sodium, potassium, or gilsonite 
deposits. Also, hardrock minerals do not include commodities the 
government sells such as common varieties of sand, gravel, stone, 
pumice or cinder. The term hardrock minerals as used here includes 
mineral deposits that are found in sedimentary and other rocks.
    Leasable minerals, for purposes of 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).
    MMS means the Minerals Management Service.
    Permit means prospecting permit, unless otherwise specified.
    Valuable deposit, for the purposes of this part, means an 
occurrence of minerals of such 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 can I get under 
these rules?

    BLM issues the mineral use authorizations listed below to qualified 
individuals. Some authorizations are not available for certain 
commodities. See the subparts referenced in each subsection for more 
information.
    (a) ``Prospecting permits'' let you explore for leasable mineral 
deposits on lands where BLM has determined that prospecting is needed 
to determine the existence of a valuable deposit. See subpart 3505 of 
this part.
    (b) ``Exploration licenses'' let you explore in areas with known 
deposits of a leasable mineral to obtain data. With an exploration 
license, you do not get any preference or other right to a lease. See 
subpart 3506 of this part.
    (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 for which BLM 
issued the permit. There are other requirements. The requirements for 
mine plans are in subpart 3592 of part 3590 of this chapter. See 
subpart 3507 of this part.
    (d) ``Competitive leases'' are issued by competitive bidding for 
known deposits of a leasable mineral. See subpart 3508 of this part.
    (e) ``Fringe acreage leases'' are issued noncompetitively for known 
deposits of leasable minerals on Federal lands adjacent to existing 
deposits, when the Federal deposits can be mined only as part of an 
adjacent operation. See subpart 3510 of this part.
    (f) ``Lease modifications'' add acreage containing known deposits 
of a leasable mineral to an adjacent Federal lease of the same mineral, 
provided the deposits can be mined only as part of the larger mining 
operation. See subpart 3510 of this part.
    (g) ``Use permits'' are available to holders of phosphate and 
sodium leases so that they may use the surface of unappropriated and 
unentered public lands for the proper extraction, treatment, or removal 
of the phosphate or sodium deposits. See subpart 3516 of this part.


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, if those uses or 
disposals will not unreasonably interfere with your operation. If BLM 
issues other permits or leases covering the lands contained within your 
permit or lease, they will contain suitable stipulations for 
simultaneous operation based on consideration of safety, environmental 
protection, conservation, ultimate recovery of the resource, and other 
factors. You must also make all reasonable efforts to avoid 
interference with other authorized uses. In cases where the date of the 
lease is used to determine priority for development and a lease is 
renewed, BLM will use the effective date of the original lease to 
determine priority for development.


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

    (a) BLM will not issue you a permit or lease unless it conforms 
with the decisions, terms and conditions of an applicable comprehensive 
land use plan.
    (b) BLM or the surface management agency will comply with any 
applicable environmental requirements before issuing you a permit or 
lease. This may result in conditions on your permit or lease.
    (c) BLM will issue permits and leases consistent with any 
unsuitability designation under part 1600 of this title.


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

    Your lease, permit, or other use authorization is effective the 
first day of the month after BLM signs it, unless you request in 
writing and BLM agrees to make it 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  May I appeal BLM's decisions under this part?

    Any party adversely affected by a BLM decision under this part may 
appeal the decision under parts 4 and 1840 of this title.

Subpart 3502--Qualification Requirements

Lease Qualifications


Sec. 3502.10  Who may hold permits and leases?

    You may hold an interest in permits or leases under this part only 
if you meet the requirements of 30 U.S.C. 184. You must be:
    (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 U.S. State or territory;
    (d) A legal guardian of a minor United States citizen;
    (e) A trustee of a trust where the beneficiary is a minor but the 
trustee is qualified to hold a permit or lease; or

[[Page 53541]]

    (f) any other person authorized to hold a lease under 30 U.S.C. 
184.


Sec. 3502.13  May foreign citizens hold permits or leases?

    No. However, foreign citizens may hold stock in United States 
corporations that hold leases or permits if the laws, customs, or 
regulations of their country do not deny similar privileges to citizens 
or corporations of the United States.


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

    Yes. If you are a member of Congress or an 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 lease 
interest. (Officer, agent or employee of the Department-see part 20 of 
this title; Member of Congress-see R.S. 3741; 41 U.S.C. 22; 18 U.S.C. 
431-433). Also, BLM may not issue any lease or permit which causes a 
conflict of interest. See 5 CFR part 2635.


Sec. 3502.20  Will BLM issue a lease to me if I am not complying with 
the diligence requirements of the Mineral Leasing Act?

    BLM will not issue you a lease or renew your lease, or approve a 
transfer of any lease or interest in a lease for you unless you are 
complying with section 2(a)(2)(A) of the Mineral Leasing Act (30 U.S.C. 
201(2)(A)) for any of your existing leases that are subject to that 
provision. For Federal coal leases, BLM will determine compliance under 
Sec. 3472.1-2(e) of this title. If BLM issues you a lease when you are 
in violation of section 2(a)2(A), BLM must void your lease under 
Sec. 3514.30(b).

How To Show Lease Qualifications


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

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


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

    After we accept your qualifications, you may send additional 
information to the same BLM office by referring to the serial number of 
the record in which your evidence is filed. All changes to your 
qualifications statement must be in writing. You must make sure that 
your evidence is current, accurate and complete.


Sec. 3502.27  If I am an individual, what information must I give BLM 
in my qualifications statement?

    If you are an individual, send us a signed statement showing that:
    (a) You are a U.S. citizen; and
    (b) Your acreage holdings do not exceed the limits in Sec. 3503.37 
of this part. This includes your holdings 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.


Sec. 3502.28  If I am an association or a partnership, what information 
must I give BLM in my qualifications statement?

    Send us:
    (a) A signed statement setting forth:
    (1) The names, addresses, and citizenship of all members who own or 
control 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 acreage limits in 
Sec. 3503.37 of this part.
    (b) A copy of the articles of the association or the partnership 
agreement.


Sec. 3502.29  If I am a guardian or trustee for a trust holding on 
behalf of a beneficiary, what information must I give BLM in my 
qualifications statement?

    Send us:
    (a) A signed statement setting forth:
    (1) The beneficiary's citizenship;
    (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, cumulatively do not 
exceed the acreage limitations in Sec. 3503.37 of this part; and
    (b) A copy of the court order or other document authorizing or 
creating the trust or guardianship.


Sec. 3502.30  If I am a corporation, what information must I give BLM 
in my qualifications statement?

    A corporate officer or authorized attorney-in-fact must send BLM a 
signed statement stating:
    (a) The State or territory of incorporation;
    (b) The name and citizenship of, and percentage of stock owned, 
held, or controlled by, 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 the acreage limitations in Sec. 3503.37 of this part.

Special Situations and Additional Concerns


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

    Yes. Send us evidence of your authority to act on behalf of the 
applicant, and a statement of the applicant's qualifications and 
acreage holdings if you are empowered to make this statement. 
Otherwise, the applicant must send us this information separately.


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

    If you are not the sole party in interest in an application for a 
permit or lease, include 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 BLM issues it. All interested parties must show 
they are qualified to hold permit or lease interests.


Sec. 3502.40  What happens if an applicant or successful bidder for a 
permit or 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. We will recognize the heirs or devisees or their guardian as 
the record title holders of the permit or lease. They must send us:
    (1) A certified copy of the will or decree of distribution, and if 
no will or decree exists, 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 devisees with 
reference to citizenship and holdings similar to that required by 
Sec. 3502.27 of this part. If the heir or devisee is a minor, the 
guardian or trustee must sign the statement.
    (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 considers the executor or administrator as the record title 
holder of the permit or lease. He or she must send:
    (1) Evidence that the person who, as executor or administrator, 
submits lease and bond forms 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

[[Page 53542]]

    (3) A statement signed by each heir or devisee concerning 
citizenship and holdings, as required by Sec. 3502.27 of this part.


Sec. 3502.41  What happens to a permit or lease if the 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) of this part; 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) of 
this part.


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

    We will allow unqualified heirs to hold ownership in a lease or 
permit for up to 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

Available Areas Under BLM Management


Sec. 3503.10  Are all Federal lands available for leasing under this 
part?

    No. The Secretary of the Interior may not lease 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 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?

    Prospecting permits and leases for solid leasable and hardrock 
minerals are not available under this part for:
    (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, oil shale 
reserves and national petroleum reserves;
    (e) Lands acquired by the United States for development of helium, 
fissionable material deposits or other minerals essential to the 
defense of the country, except leasable minerals;
    (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;
    (i) Lands within the Grand Staircase-Escalante National Monument;
    (j) Lands adjacent to or within Searles Lake, California, which are 
not available for potassium prospecting permits (BLM will lease 
potassium in this area by competitive bidding); and
    (k) Any other lands withdrawn from mineral leasing.


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

    You may get a sulphur permit or lease for public domain lands in 
the States of Louisiana and New Mexico or for Federal acquired lands 
nationwide, subject to the exceptions listed in Secs. 3503.10 and 
3503.11 of this part.


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

    Subject to the consent of the surface managing agency, you may 
obtain hardrock mineral permits and leases only in the following areas:
    (a) Lands identified in 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), Bankhead-Jones Act).
    (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) Glen Canyon National Recreation Area; and
    (3) 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.


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

    You may get leases for asphalt only on certain Federal lands in 
Oklahoma identified by law. See 32 Stat. 654 (1902) and 58 Stat. 483 
(1944). You may not obtain prospecting permits for asphalt.


Sec. 3503.15  May 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 hold the remaining record title interest or operating rights 
interest in confirmed private land grants in New Mexico, you may obtain 
a lease for gold and silver reserved to the United States. See parts 
3580 and 3581 of this chapter for leasing requirements.


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 under these regulations; BLM 
will consider any new applications for sand and gravel under the 
regulations at part 3600 of this chapter. Also, beginning January 1, 
2000, BLM will not renew any existing sand and gravel lease for certain 
lands the United States received under an exchange with the State of 
Nevada.

Available Area Managed by Others


3503.20  What if another Federal agency manages the lands I am 
interested in?

    (a) Public domain lands. BLM will issue a permit or lease for 
public domain lands where the surface is administered by another 
Federal agency only after consulting with the surface management 
agency. Some laws applicable to public domain lands require us to 
obtain the consent of the surface management agency before we issue a 
lease or permit.

[[Page 53543]]

    (b) Acquired lands. For all lands not subject to paragraph (a) of 
this section where the surface is managed by another Federal agency, we 
must have written consent from the surface management agency before we 
issue permits or leases. The surface management agency may request 
further information about surface disturbance and reclamation before 
granting its consent.
    (c) Appeal. If a surface management agency refuses to consent or 
imposes conditions on your permit or lease, you may appeal its decision 
under that agency's appeal provisions. If you notify BLM within 30 days 
after receiving BLM's decision denying or conditioning your permit or 
lease that you have appealed the surface management agency's decision, 
we will suspend the time for filing an appeal under 43 CFR parts 4 and 
1840 until the surface management agency's decision is final and not 
subject to further administrative or judicial review.


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

    (a) BLM will notify the entity who owns the surface of the lands 
included within your permit or lease application if that entity is:
    (1) Any State or political subdivision, agency or instrumentality 
thereof;
    (2) A college or any other educational corporation or association; 
or
    (3) A charitable or religious corporation or association.
    (b) The entity who owns the surface of the lands in your 
application will have up to 90 days to suggest any lease stipulations 
to protect existing surface improvements or uses, or to object to the 
permit or lease. BLM will then decide whether to issue the permit or 
lease and which, if any, stipulations identified by the surface owner 
to include, based on how the interests of the United States would best 
be served.


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

    (a) The regulations in this part apply where the United States 
disposed of certain lands and those disposals reserved to the United 
States the right to prospect for, mine, and remove the minerals under 
applicable leasing laws and regulations.
    (b) If the Federal Government acquires minerals through a deed, BLM 
will follow any special covenants in the deed relating to leasing or 
permitting.


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

    BLM will specify permit or lease stipulations to adequately use and 
protect the lands and their resources. This may include stipulations 
which are required by the surface managing agency, or which are 
recommended by the surface managing agency or non-federal surface owner 
and accepted by BLM. (See also part 3580 of this chapter.)

Land Descriptions


Sec. 3503.30  How should I describe surveyed lands or lands shown on 
protraction or amended protraction diagrams in states which are part of 
the Public Land Survey System?

    Describe the lands by legal subdivision, section, township, and 
range.


Sec. 3503.31  How should I describe lands in states which are part of 
the Public Land Survey System but have not been surveyed and are not 
shown on a protraction or amended protraction diagram?

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


Sec. 3503.32  How should I describe acquired lands?

    You may describe acquired lands by metes and bounds, or you may 
also 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, describe the land using 
courses and distances tied to a point on the boundary of the requested 
tract. Where the acquiring agency assigned a tract number to the 
identical tract you wish to permit or lease, you may describe those 
lands by the tract number and include a map which clearly shows the 
lands with respect to the administrative unit or the project of which 
they are a part. In States outside of the public land survey system, 
you should describe the lands by tract number, and include a map.


Sec. 3503.33  Will BLM issue me a lease for unsurveyed lands?

    No. All leased areas must be officially surveyed to BLM standards. 
If you are applying for a permit or lease on unsurveyed or protracted 
lands, you must pay for the survey. If BLM intends to issue a lease by 
competitive bidding, we will pay for surveying the lands.

 Acreage Amounts


Sec. 3503.36  Are there any size or shape limitations on the lands I 
can apply for?

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


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 following table:

----------------------------------------------------------------------------------------------------------------
                                 Maximum acreage                                                Maximum acreage
           Commodity             for a permit or    Maximum acreage of permits and leases in     in permits and
                                      lease                       any one State                leases nationwide
----------------------------------------------------------------------------------------------------------------
(a) Phosphate.................  2,560 acres......  None......................................  20,480 acres.
(b) Sodium....................  2,560 acres......  5,120 acres (may be increased to 15,360     None.
                                                    acres to facilitate an economic mine).
(c) Potassium.................  2,560 acres......  96,000 acres (larger if necessary for       None.
                                                    extraction of potassium from concentrated
                                                    brines in connection with an existing
                                                    mining operation).
(d) Sulphur...................  640 acres........  1,920 acres in 3 leases or permits........  None.
(e) Gilsonite.................  5,120 acres......  7,680 acres...............................  None.
(f) Hardrock Minerals.........  2,560 acres......  20,480 acres in permits and leases, 10,240  None.
                                                    acres in leases, but can be increased to
                                                    20,480 if needed for orderly mine
                                                    development.
(g) Asphalt...................  640 acres........  2,560 acres...............................  Only available in
                                                                                                Oklahoma.
----------------------------------------------------------------------------------------------------------------


[[Page 53544]]

Sec. 3503.38  How does BLM compute my acreage holdings?

    (a) The maximum acreage in any one state refers to the acres you 
hold under a permit or lease on either public domain lands or acquired 
lands. Acquired lands and public domain lands are counted separately, 
so you may hold up to the maximum acreage of each at the same time. For 
example, one person could hold 20,000 acres under phosphate leases for 
public domain lands and 20,000 acres under phosphate leases for 
acquired lands at the same time.
    (b) If your permit or lease is for fractional interest lands, BLM 
will charge your acreage holdings for a share which is proportionate to 
the United States' ownership interest. For 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 permit or lease 
takes effect.
    (d) If you own stock in a corporation or a beneficial interest in 
an association which holds a lease or permit, your acreage will include 
your proportionate part of the corporation's or association's share of 
the total lease or permit acreage. This only applies if you own more 
than 10 percent of the corporate stock or beneficial interest of the 
association.

Filing Applications


Sec. 3503.40  Where do I file my permit or lease application and other 
necessary documents?

    File your application in the State Office which manages the lands 
for which you are applying, unless we have designated a different State 
Office. For purposes of this part, a document is filed when it is 
received in the proper office.


Sec. 3503.41  Will BLM disclose information I submit under these 
regulations?

    All Federal and Indian data and information submitted to the BLM 
are subject to part 2 of this title. Part 2 includes the regulations of 
the Department of the Interior covering public disclosure of data and 
information contained in Department of the Interior records. BLM may 
make certain mineral information not protected from disclosure under 
part 2 of this title may be made available for inspection without a 
Freedom of Information Act (FOIA) request.


Sec. 3503.42  When I submit confidential, proprietary information, how 
can I help ensure it is not available to the public?

    When you submit data and information that you believe to be exempt 
from disclosure by part 2 of this title, you must clearly mark each 
page that you believe contains confidential information. BLM will keep 
all data and information confidential to the extent allowed by 
Sec. 2.13(c) of this title.


Sec. 3503.43  How long will information I give BLM remain confidential 
or proprietary?

    The FOIA does not provide an express period of time for which 
information may be exempt from disclosure to the public. We will review 
each situation individually and in accordance with guidance provided by 
part 2 of this title.


Sec. 3503.44  How will BLM treat Indian information submitted under the 
Indian Mineral Development Act?

    Under the Indian Mineral Development Act of 1982 (IMDA) (25 U.S.C. 
2101 et seq.), the Department of the Interior will hold as privileged 
proprietary information of the affected Indian or Indian tribe--
    (a) All findings forming the basis of the Secretary's intent to 
approve or disapprove any Minerals Agreement under IMDA; and
    (b) All projections, studies, data, or other information concerning 
a Minerals Agreement under IMDA, regardless of the date received, 
related to--
    (1) The terms, conditions, or financial return to the Indian 
parties;
    (2) The extent, nature, value, or disposition of the Indian mineral 
resources; or
    (3) The production, products, or proceeds thereof.


Sec. 3503.45  How will BLM administer information concerning other 
Indian minerals?

    For information concerning Indian minerals not covered by 
Sec. 3503.44 of this part, BLM will withhold such records as may be 
withheld under an exemption to the Freedom of Information Act (FOIA) (5 
U.S.C. 552) when it receives a request for information related to 
tribal or Indian minerals held in trust or subject to restrictions on 
alienation.


Sec. 3503.46  When will BLM consult with Indian mineral owners when 
information concerning their minerals is the subject of a FOIA request?

    BLM will notify the Indian mineral owner(s) identified in the 
records of the Bureau of Indian Affairs (BIA), and the BIA, and give 
them a reasonable period of time to state objections to disclosure, 
using the standards and procedures of Sec. 2.15(d) of this title, 
before making a decision about the applicability of FOIA exemption 4 to 
protect:
    (a) information obtained from a person outside the United States 
Government; when
    (b) following consultation with a submitter under Sec. 2.15(d) of 
this title, BLM determines that the submitter does not have an interest 
in withholding the records that can be protected under FOIA; but
    (c) BLM has reason to believe that disclosure of the information 
may result in commercial or financial injury to the Indian mineral 
owner(s), but is uncertain that such is the case.

Subpart 3504--Fees, Rental, Royalty and Bonds

General Information


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

    Make your payments to BLM in cash, postal money order, negotiable 
instrument in U.S. currency, or such other method as BLM may authorize. 
See MMS regulations at 30 CFR part 218 for their payment requirements.


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

    (a) Filing fees and rentals. (1) Include a non-refundable filing 
fee of $25 with each application you submit to BLM. Preference right 
lease applications and exploration license applications do not require 
a fee.
    (2) Pay all filing fees, all first-year rentals, and all bonus bids 
for leases to the BLM State office which manages the lands you are 
interested in. Make your instruments payable to the Department of the 
Interior-Bureau of Land Management.
    (3) Pay all second-year and subsequent rentals and all other 
payments for leases to the Minerals Management Service. See 30 CFR part 
218 for MMS's payment procedures.
    (b) Royalties. Pay all royalties on producing leases and all 
payments under leases in their minimum production period to the MMS.

Rentals


Sec. 3504.15  How does BLM determine my rent?

    We set your rent by multiplying the number of acres in your lease 
or permit by the rental rates shown below. The rates differ for 
different commodities and some rates increase over time. You must pay 
rent each year. We 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

[[Page 53545]]

subdivisions is 40 acres. The minimum rental is $20 per permit or lease 
for all commodities. Pay the minimum rental or the per-acre rental, 
whichever is greater.
    (a) Annual rental rates for prospecting permits for all commodities 
are $.50 per acre or fraction of an acre.
    (b) Annual rental rates for leases for each commodity are shown in 
the table below. The rate shown is for each acre or fraction of an acre 
in the lease.

----------------------------------------------------------------------------------------------------------------
                                                                                                         Year 6
                                                       Year 1    Year 2    Year 3    Year 4    Year 5    to end
----------------------------------------------------------------------------------------------------------------
(a) Phosphate.......................................     $0.25     $0.50     $0.50     $1.00     $1.00     $1.00
(b) Sodium..........................................      0.25      0.50      0.50      0.50      0.50      1.00
(c) Potash..........................................      0.25      0.50      0.50      0.50      0.50      1.00
(d) Sulphur.........................................      0.50      0.50      0.50      0.50      0.50      0.50
(e) Gilsonite.......................................      0.50      0.50      0.50      0.50      0.50      0.50
(f) Hardrock........................................      1.00      1.00      1.00      1.00      1.00      1.00
(g) Asphalt.........................................      0.25      0.50      0.50      0.50      0.50      1.00
----------------------------------------------------------------------------------------------------------------

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

    (a) For prospecting permits, pay your rental in advance each year 
before the anniversary date of the permit.
    (b) For sodium, potassium or asphalt leases, pay your rental in 
advance before January 1 of each year.
    (c) For phosphate leases pay your rental in advance on or before 
the anniversary date of the lease.
    (d) For other mineral leases not covered in paragraph (b) or (c) of 
this section, pay the rental in advance each year before the 
anniversary of the effective date of the lease.
    (e) MMS will credit your lease rental for any year against the 
first production royalties or minimum royalties (see Sec. 3504.25 of 
this part) as the royalties accrue under the lease during that year.


Sec. 3504.17  What happens if I do not pay my rental on time?

    (a) If you do not pay your rental on time for a prospecting permit, 
your permit will automatically terminate.
    (b) If you do not pay your rental for a lease on time, BLM will 
notify you that unless you pay within 30 days from receipt of the 
notification, BLM will take action to cancel your lease.

Royalties


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. 3504.21 of 
this part for minimum royalty rates. Your royalty rate will be a 
percentage of the quantity or gross value of the output of the produced 
commodity. Apply the royalty rate to the value of the production 
determined under MMS regulations in Title 30. For asphalt, the minimum 
royalty is calculated on a cents-per-ton basis. You may not pay your 
royalty in quantity without BLM's prior approval.


Sec. 3504.21  What are the minimum royalty rates?

------------------------------------------------------------------------
          Commodity                       Minimum royalty rate
------------------------------------------------------------------------
(a) Phosphate................  5% of gross value of the output of
                                phosphates or phosphate rock and
                                associated or related minerals.
(b) Sodium...................  2% of the quantity or gross value of the
                                output of sodium compounds and related
                                products at the point of shipment to
                                market.
(c) Potassium................  2% of the quantity or gross value of the
                                output of potassium compounds and
                                related products at the point of
                                shipment to market.
(d) Sulphur..................  5% of the quantity or gross value of the
                                output of sulphur at the point of
                                shipment to market.
(e) Gilsonite................  No minimum royalty rate.
(f) Hardrock Minerals........  No minimum royalty rate.
(g) Asphalt..................  25 cents per ton (2,000 pounds) of
                                marketable production.
------------------------------------------------------------------------

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

    BLM determines the rate for each lease before we offer it. 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 you the lease. BLM attaches royalty rates to, and makes them a 
part of, all leases.


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

    (a) If your mineral lease was issued, renewed or readjusted any 
time after April 22, 1986, you must either produce a minimum amount or 
pay a minimum royalty in lieu of production each lease year. This 
requirement begins in the sixth lease year or the first full year of a 
renewed or readjusted lease, whichever comes first. The minimum royalty 
payment is $3 per acre or fraction of an acre. For phosphate, sulphur, 
gilsonite and hardrock leases, pay the minimum royalty in advance 
before the lease anniversary date. For sodium, potassium and asphalt 
leases the minimum royalty is due in advance before January 1 of each 
year.
    (b) MMS will credit any lease rental payment (see Sec. 3504.16(d) 
of this part) against the minimum royalty payment amount due under 
paragraph (a) of this section. MMS then will credit your minimum 
royalty as specified under paragraph (a) to your production royalties 
for that year only. For example, if you pay $1,000 in rental and you 
owe $3,000 in minimum royalties, you will pay a total of $3,000 for 
both. If during the lease year you accrue $10,000 in production 
royalties, MMS will credit $3,000 against that amount.
    (c) Hardrock mineral leases or development or operating agreements 
subject to escalating rentals are exempt from minimum production and 
minimum royalty requirements.


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

    Yes, but:
    (a) BLM may order you to suspend or reduce your overriding 
royalties to as low as one percent if we determine your overriding 
royalty could:

[[Page 53546]]

    (1) Cause you to abandon your lease prematurely; or
    (2) Prevent mining of marginally economic or low-grade deposits.
    (b) Where more than one overriding royalty interest is involved, 
BLM will apply any suspension or reduction to these interests in the 
manner agreed upon by the interest holders. If there is no agreement, 
we will order suspensions and reductions starting with the most recent 
interest and continuing in reverse order of the dates the overriding 
interests were created.
    (c) If you apply for a royalty rate reduction under subpart 3513, 
of this part, we may request that you reduce your overriding royalties.

Bonding


Sec. 3504.50  Do I have to file a bond to receive a permit or lease?

    Yes, unless paragraph (b) of this section applies.
    (a) BLM will set permit and lease bond amounts for each lease or 
permit. We will consider the cost of complying with all permit and 
lease terms, including royalty and reclamation requirements, when 
setting bond amounts. The minimum bond amount for prospecting permits 
is $1000. The minimum bond amount for leases is $5000.
    (b) BLM may enter into agreements with states to provide for your 
state reclamation bond to satisfy our reclamation bonding requirements. 
We may need additional information from you to determine whether your 
state bond will cover all of our reclamation requirements. If you have 
filed a current bond with a state where we have an agreement, and we 
determine that your state bond will satisfy all BLM reclamation bonding 
requirements, you will only need to file evidence of that state bond 
with BLM. We will require an additional bond from you if we determine 
your state bond does not cover all of our bonding requirements.


Sec. 3504.51  How do I file my bond?

    File one copy of your bond in the BLM State office where you 
applied for a permit or lease. You must use an approved BLM form. You 
must sign the form if you are the principal of a personal bond. For 
surety bonds, both you and an acceptable surety must sign the form.


Sec. 3504.55  What types of bonds are acceptable?

    You may file either a personal bond or a surety bond.
    (a) Personal bonds may be in the form of:
    (1) Cashier's check;
    (2) Certified check; or
    (3) Negotiable U.S. Treasury bonds equal in value to your bond 
amount. If you submit Treasury bonds, you must give the Secretary full 
authority to sell the securities if you default on your permit or lease 
obligations.
    (b) Surety bonds must be issued by qualified surety companies 
approved by the Department of the Treasury. You can get a list of 
qualified sureties at any BLM State Office.


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

    Yes. Instead of filing separate bonds for each permit or lease, you 
may file a bond to cover all permits and leases for a specific mineral 
in any one state, or nationwide. We will establish the amount of the 
bond; however, the minimums are:
    (a) $25,000 for statewide bonds. File these bonds in the BLM State 
Office for the state where your leases are located.
    (b) $75,000 for nationwide bonds. File these bonds in any BLM State 
Office.


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

    We may increase or decrease your bond amount when we determine that 
a change in coverage is appropriate, but we will not decrease your bond 
amount below the minimum.


Sec. 3504.65  What happens to my bond if I do not meet my permit or 
lease obligations?

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


Sec. 3504.66  Must I 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 you must 
pay to restore your bond. 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 permit or 
lease. If you do not replace your bond, BLM may take action to cancel 
the leases or permits covered by the bond.


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

    BLM may terminate the period of liability for any bond only when 
you have filed an acceptable replacement bond or when you have met all 
your permit or lease terms and conditions.


Sec. 3504.71  When will BLM release my bond?

    (a) BLM will release your bond when we have determined, after the 
passage of a reasonable period of time, that you have done the 
following:
    (1) Paid all royalties, rentals, penalties, and assessments;
    (2) Satisfied all permit or lease obligations;
    (3) Reclaimed the site; and
    (4) Taken effective measures to ensure that the mineral prospecting 
or development activities will not adversely affect surface or 
subsurface resources.
    (b) If you assign your lease or permit, BLM will release your bond 
after we determine that you met the requirements of paragraphs (a)(1) 
and (a)(2) of this section. Also, your assignee must provide an 
acceptable bond or other surety.

Subpart 3505--Prospecting Permits


Sec. 3505.10  What is a prospecting permit?

    (a) A prospecting permit gives you the exclusive right to prospect 
on and explore lands available for leasing under this part to determine 
if a valuable deposit exists of:
    (1) Phosphate;
    (2) Sodium;
    (3) Potassium;
    (4) Sulphur;
    (5) Gilsonite; or
    (6) A hardrock mineral.
    (b) Prospecting permits are not available for asphalt.
    (c) You may remove only material needed to demonstrate the 
existence of a valuable mineral deposit.


Sec. 3505.11  Do I need a prospecting permit to collect mineral 
specimens for non-commercial purposes?

    No. You may collect mineral specimens for hobby, recreation, 
scientific, research or similar purposes without a prospecting permit. 
However, the surface management agency may require a use permit. BLM's 
regulations for collecting mineral specimens are at part 8365 of this 
title.

Applying for Prospecting Permits


Sec. 3505.12  How do I obtain a prospecting permit?

    Deliver three copies of the BLM application form to the BLM office 
with jurisdiction over the lands you are interested in. Include the 
filing fee and first year's rental with your application. See subpart 
3504 of this part.


Sec. 3505.13  What must my application include?

    Your application must be legible and dated. It must contain your or 
your

[[Page 53547]]

agent's original signature. It must also include:
    (a) Your name and address;
    (b) A statement of your qualifications and holdings (see subpart 
3502 of this part);
    (c) A complete and accurate land description (see subpart 3503 of 
this part);
    (d) Three copies of any maps needed to accompany the description; 
and
    (e) The name of all the 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 the maximum allowed 
for the permit. See Sec. 3503.37 of this part for the acreage limits 
applicable for the different minerals. BLM will not issue a permit if 
it causes you to exceed the limits shown in the table in that section.


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

    BLM will prioritize applications based on the time of filing. If 
more than one application is filed at the same time for the same 
commodity on the same lands, we will hold a public drawing in 
accordance with subpart 1821 of this title to determine priority.


Sec. 3505.30  May I amend or change my application after I file it?

    Yes. However, if your amendment adds lands, we will assign priority 
to those added 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.


Sec. 3505.31  May I withdraw my application after I file it?

    Yes. Just send us a written request. If you withdraw your 
application in whole or in part before BLM signs the permit, we will 
refund the corresponding proportionate share of your rental payment. 
BLM will retain the filing fee.


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

    Yes. After we initially review your permit application, but before 
we issue the prospecting permit, we will require you to submit three 
copies of an exploration plan under Sec. 3505.45 of this part. You must 
also submit a bond. See 43 CFR part 3504, especially 43 CFR 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 
include as much of the following information as possible:
    (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 of the environment your plan may affect. 
Focus on the affected geologic, water and other physical factors, and 
the distribution and abundance of vegetation and habitat of fish and 
wildlife, particularly threatened and endangered species. Include maps 
with your descriptions, and discuss 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, damage to 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 to reclaim the land, including:
    (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 you will plant; 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) Any other data which BLM may require.


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

    BLM will review your application to determine compliance with land 
use plans, environmental requirements, unsuitability criteria and 
whether the lands are within a known leasing area. BLM's decision 
whether to approve your application is at BLM's complete discretion. If 
we approve your application, we will issue your permit. If we reject 
your application, we will mail you a written decision. This notice 
will:
    (a) Detail the reasons why we rejected your application;
    (b) Identify any items you will need to correct in your 
application; and
    (c) Tell you how you may appeal an adverse decision.


Sec. 3505.51  May I file a revised application if BLM rejects my 
original application?

    Yes. If you file a revised application for the same lands within 30 
days after you receive our rejection, we will apply the non-refundable 
filing fee and rental payment from your original application to the new 
application. To obtain this benefit, you must show the serial number of 
the original application on your new application. We will establish 
priority for the permit as of the date the revised application is 
filed. If you do not file a revised application within 30 days of 
rejection, we will refund only your rental payment.

Prospecting Permit Terms and Conditions


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 of this part;
    (b) Comply with all permit terms and stipulations the surface 
management agency attached to the permit;
    (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 BLM extends your permit.


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  May BLM extend the term of my prospecting permit?

    We may extend prospecting permits for phosphate and hardrock 
minerals for up to an additional 4 years, and for potassium and 
gilsonite for up to an additional 2 years. We cannot extend sodium and 
sulphur prospecting permits.


Sec. 3505.62  Under what conditions will BLM extend my prospecting 
permit?

    You must prove that:
    (a) You explored with reasonable diligence and were unable to 
determine the existence and workability of a valuable deposit covered 
by the permit. Reasonable diligence means that, in BLM's opinion, you 
drilled a sufficient number of holes or performed other comparable 
prospecting to explore the permit area within the time allowed; or

[[Page 53548]]

    (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. Just send us a written request with 
the information in Sec. 3505.65 of this part at least 90 days before 
your permit expires. Include your $25 nonrefundable filing fee and the 
first year's rental, in accordance with Secs. 3504.15 and 3504.16 of 
this part.


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

    Your request must:
    (a) Show that you have met the conditions for extension in 
Sec. 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 on the date we approve 
it, or on the expiration date of the original permit, if this date is 
later.


Sec. 3505.70  May I relinquish my prospecting permit?

    Yes. You may relinquish the entire prospecting permit or any legal 
subdivision of it. 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 we accept the request, your relinquishment is 
effective as of the date you filed it with BLM. We will then note the 
relinquishment on the land status records. We may then open the lands 
to any new applications. If you relinquish part or all of your permit, 
you lose any right 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 do not 
pay the rental before the anniversary date of the permit. We will note 
your permit termination on the official status records.


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. BLM may open the lands to new 
applications 60 days after your permit expires. However, if you timely 
filed for an extension under Sec. 3505.64 of this part, the 60 day 
period would begin to run on the date BLM denies your extension 
request. If you timely filed for a preference right lease under 
Sec. 3507.15 of this part, the 60 day period only would begin to run on 
the date BLM denies your lease application.


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

    Yes.
    (a) We may cancel your permit if you do not 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. We will 
give you 30 days notice, within which you must correct your default. If 
your default continues, BLM may cancel your permit.
    (b) If we waive one cause for cancellation, we may still cancel 
your permit for another cause, or for the same cause occurring at 
another time. Unless you file an appeal, we will note your permit 
cancellation on the land status records. BLM may use your bond to 
reclaim the land or correct other deficiencies if we cancel your 
permit.

Subpart 3506--Exploration Licenses

General Information


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.

Applying for and Obtaining Exploration Licenses


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

    (a) To apply, submit an exploration plan as described at 
Sec. 3505.45 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 BLM-approved notice of 
exploration, inviting others to participate in exploration under the 
license on a pro-rata cost-sharing basis.
    (b) Except as otherwise provided in this subpart, BLM will process 
your exploration license application in accordance with the regulations 
at part 2920 of this chapter.


Sec. 3506.12  Who prepares and publishes the notice of exploration?

    BLM will prepare a notice of exploration using your information and 
post 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 to include in the 
notice of exploration?

    You must include:
    (a) Your name and address;
    (b) A description of the lands;
    (c) The address of the BLM 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.


Sec. 3506.14  May others participate in the exploration program?

    (a) If any person wants to participate in the exploration program, 
you and BLM must receive written notice form that person within 30 days 
after the later of the final newspaper publication or the end of the 
BLM 30-day posting period.
    (b) A person who wants to participate in the exploration program 
must state in their notice:
    (1) They are willing to share in the cost of the exploration on a 
pro-rata basis; and
    (2) Any modifications to the exploration program that BLM should 
consider.


Sec. 3506.15  What will BLM do in response to my exploration license 
application?

    (a) BLM will determine whether to issue the exploration license. If 
we decide to issue the license, we will name the participants and the 
acreage covered. We also will establish hole spacing requirements and 
include any stipulations needed to protect the environment.
    (b) If there are inconsistencies between proposed exploration 
plans, the approved license will resolve them.

Terms; Modifications


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

    BLM may approve modifications of your exploration plan upon your 
request. We may also permit you to remove lands from your exploration 
license at any time. However, once we issue your exploration license, 
you may not add lands to the area of your exploration license.


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

    You must share with BLM all data you obtain during exploration. We 
will consider the data confidential and will not make the data public 
until either:

[[Page 53549]]

    (a) The areas involved are leased; or
    (b) BLM determines that it must release the data in response to a 
FOIA request.

Subpart 3507--Preference Right Lease Applications


Sec. 3507.11  What must I do to obtain a preference right lease?

    To obtain a preference right lease, you must have a prospecting 
permit for the area you want to lease and meet the following conditions 
and any other conditions established in this subpart:
    (a) All leasable minerals except asphalt. You must demonstrate that 
you have discovered a valuable deposit within the period covered by 
your prospecting permit. However, paragraphs (b) and (d) of this 
section provide some limitations.
    (b) Sodium, potassium, and sulphur. In addition to the requirements 
of paragraph (a) of this section, BLM must determine that the lands are 
chiefly valuable for the subject minerals.
    (c) Asphalt. You may not obtain a preference right lease for 
asphalt. However, you may obtain a competitive lease or a fringe 
acreage lease under subpart 3508 or 3510 of this part.
    (d) Permits issued under the authority of Reorganization Plan No. 3 
of 1946. Prospecting permits for minerals BLM administers under the 
authority of Reorganization Plan No. 3 of 1946 do not entitle you to a 
preference right lease. We may grant you a noncompetitive lease if you 
discover a valuable deposit during the permit term.


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

    No specific form is required. Submit three copies of your 
application within 60 days after the date your prospecting permit 
expires or the date BLM denies your request for a permit extension 
filed under Sec. 3505.64 of this part, whichever is later.


Sec. 3507.16  Is there a fee or payment required with my application?

    Yes. You must submit a $25 nonrefundable filing fee and the first 
year's rent with your application. Determine the first year's rent from 
the provisions in Sec. 3504.15 of this part.


Sec. 3507.17  What information must my preference right lease 
application include?

    Your application must contain:
    (a) A statement of your qualifications and holdings as specified in 
subpart 3503 of this chapter;
    (b) Three maps showing:
    (1) Utility systems;
    (2) The location of any proposed development or mining operations 
and incidental facilities;
    (3) The approximate locations and the extent of the areas you will 
use for pits, overburden and tailings; and
    (4) 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 type of equipment you will use;
    (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 planned mining operations 
and existing or planned mining operations and facilities on adjacent 
Federal or non-Federal lands;
    (d) Financial information which will enable us to determine if you 
have found a valuable deposit. Include at least an estimate of 
projected mining and processing costs, saleable products and markets, 
and projected selling prices;
    (e) A complete and accurate description of the lands as found in 
your prospecting permit, if your application is for less than the lands 
covered by your prospecting permit; and
    (f) Other data, as we may require.


Sec. 3507.18  What do I need to submit to show that I have found a 
valuable deposit?

    To show you have found a valuable deposit, send us the information 
listed in Sec. 3593.1 of this part. You must have collected the data 
during the term of the prospecting permit, but you may refer to prior 
geologic work. BLM may request supplemental data from you to determine 
the following:
    (a) The extent and character of the deposit;
    (b) The anticipated mining and processing methods and costs;
    (c) Anticipated location, kind and extent of necessary surface 
disturbance;
    (d) The measures you will take to reclaim that disturbance;
    (e) An estimate of the profitability of mineral development; and
    (f) Whether there is a reasonable prospect of success in developing 
a profitable mine.


Sec. 3507.19  Under what circumstances will BLM reject my application?

    (a) BLM will reject your application for a preference right lease 
if:
    (1) You did not discover a valuable deposit of mineral(s) covered 
by the prospecting permit;
    (2) You did not submit requested information in a timely manner;
    (3) You did not otherwise comply with the requirements of this 
subpart; or
    (4) In the case of sodium, potassium and sulphur, if BLM determines 
that the lands are not chiefly valuable for the mineral commodity 
specified in the permit.
    (b) If you applied for a lease for minerals BLM administers under 
the authority of Reorganization Plan No. 3 of 1946, BLM may also reject 
your application if we determine that mining is not the preferred use 
of the lands in the application. In making this determination, we will 
consider:
    (1) The land use plan;
    (2) Unsuitability criteria under subpart 1610 of this title;
    (3) Any environmental impacts; and
    (4) The purposes of the statute under which the lands were 
acquired.
    (c) We will also reject your application if the surface managing 
agency does not consent to the lease.


Sec. 3507.20  May I appeal BLM's rejection of my preference right 
lease?

    Yes. You have a right to appeal under the procedures in parts 4 and 
1840 of this title.

Subpart 3508--Competitive Lease Applications


Sec. 3508.11  What lands are available for competitive leasing?

    BLM may issue a competitive lease on unleased lands where we know 
that a valuable mineral deposit exists. In such areas, before issuing a 
lease we may issue you an exploration license, but not a prospecting 
permit. However, BLM may offer competitive leases for lands where no 
prospecting or exploratory work is needed to determine the existence or 
workability of a valuable mineral deposit. In addition, we may offer 
competitive leases for asphalt on any lands available for asphalt 
leasing, whether or not we know that a valuable mineral deposit exists.


Sec. 3508.12  How do I get a competitive lease?

    (a) Notify BLM of areas in which you are interested. We may also 
designate certain lands for competitive leasing.
    (b) After determining that the lands are available for leasing, we 
will publish a notice of lease sale containing all significant 
information (see Sec. 3508.14 of this part).
    (c) We will award a competitive lease through sale to the qualified 
bidder who offers the highest acceptable bonus bid. In the event of a 
tie, BLM will determine a fair method for choosing the successful bid.


Sec. 3508.14  How will BLM publish the notice of lease sale?

    (a) Once we determine which lands are available for leasing, we 
will publish

[[Page 53550]]

a notice of lease sale at least once a week for three consecutive weeks 
in a newspaper of general circulation in the area where the lands are 
situated. We will also post the notice of lease sale for 30 days in the 
public room of the BLM office which administers the lands.
    (b) The notice will include:
    (1) The time and place of sale;
    (2) The bidding method, including opening and closing dates for 
bidding;
    (3) A description of the tract BLM is offering;
    (4) A description of the mineral deposit BLM is offering;
    (5) The minimum bid we will consider; and
    (6) Information on where you can get a copy of the proposed lease 
and a detailed statement of the lease sale terms and conditions.


Sec. 3508.15  What information will the detailed statement of the lease 
sale terms and conditions include?

    (a) The proposed lease terms and conditions, including the rental, 
royalty rates, bond amount, and any 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 your 
qualifications statement (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 your proportionate share of the total publication cost for the sale 
notice before we will issue the lease. Your share is based on the 
number of tracts you bid on successfully, divided by the total number 
of tracts offered for sale;
    (e) A warning concerning 18 U.S.C. 1860 which provides criminal 
penalties for manipulating the bidding process;
    (f) A statement that the Secretary reserves the right to reject any 
and all bids, and to offer the lease to the next qualified bidder, if 
the successful bidder does not get the lease for any reason; and
    (g) Any other information we deem appropriate.


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

    We will open and announce all bids at the time and date specified 
in the notice of lease sale, but we will not accept or reject bids at 
that time. We must receive your bid by the deadline in the sale notice 
or we will not consider it. You may withdraw or modify your bid before 
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 we determine your bid 
meets or exceeds fair market value, we will send you copies of the 
lease on the form attached to the detailed statement. Within the time 
we specify you must:
    (1) Sign and return the lease form;
    (2) Pay the balance of the bonus bid;
    (3) Pay the first year's rental;
    (4) Pay the publication costs; and
    (5) Furnish the required lease bond.
    (b) See Sec. 3504.12 of this part for payment procedures.


Sec. 3508.22  What happens if BLM rejects my bid?

    (a) If your bid is the high bid and we reject it 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 we must reject your high bid for reasons beyond your 
control, we will return your bid deposit.
    (c) If we reject your bid because it is not the high bid, we will 
return your bid deposit.

Subpart 3509--Fractional and Future Interest Lease Applications


Sec. 3509.10  What are future interest leases?

    BLM issues noncompetitive future interest leases to persons who 
hold present mineral interests that 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  Under what conditions will BLM issue a future interest 
lease to me?

    When it is in the public interest, we will issue you a future 
interest lease for lands where you either have an existing mining 
operation or have established that a valuable deposit exists.


Sec. 3509.12  Who may apply for a future interest lease?

    You may apply for a future interest lease only if you have a 
present interest in the minerals. You must hold more than 50 per cent 
of either the fee interest, a lease interest or an operating rights 
interest. You must also meet the qualification requirements set forth 
in subpart 3502 of this part.


Sec. 3509.15  Do I have to pay for a future interest lease?

    You must pay fair market value for the mineral deposit when title 
vests in the United States. You also will be required to pay royalty on 
your production.


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

    No specific form is required. Include a $25 filing fee with the 
application. Submit the application to the BLM office with jurisdiction 
over the lands. You must file at least one year before the mineral 
interest vests with the United States or BLM will deny your 
application.


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

    Your application must include the same information we require when 
you apply for a present interest Federal lease. See subpart 3508 of 
this part. In addition, you must include the following:
    (a) A land description;
    (b) Your certification that you meet the qualifications 
requirements (see subpart 3502 of this part);
    (c) Evidence of your title or the extent of your rights to the 
present interest in the mineral deposits. Submit either a certified 
abstract of title or a title certificate, or the instrument 
establishing your rights; and
    (d) The names of the other owners, if any, of the mineral 
interests. If you own the operating rights to the mineral by means of a 
contract with the mineral owner, you also need to submit three copies 
of the mineral contract or lease.


Sec. 3509.18  What will BLM do after it receives my application for a 
future interest lease?

    (a) After BLM receives your application for a future interest 
lease, we will notify all other interest owners that they have 90 days 
to file applications for the same mineral interest.
    (b) If any other interest owners timely apply, we will hold a 
competitive lease sale among the qualified applicants. BLM will 
establish standards for the competitive sale similar to those under 
subpart 3508 of this part, and provide notice to all of the qualified 
applicants.
    (c) If no other qualified owners timely apply, BLM may issue a 
future interest lease to you. BLM will establish the amount of the 
bonus bid you must pay through appraisal.


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

    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  For what reasons will BLM reject my application for a 
future interest lease?

    We will reject your application:
    (a) If you do not meet the qualifications in Sec. 3509.15 of this 
part;

[[Page 53551]]

    (b) If you filed your application less than one year before the 
minerals vest in the United States; or
    (c) We determine that issuing the lease is not in the public 
interest.


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

    Yes. You must file the withdrawal with BLM before the lease is 
signed. BLM will retain the application fee.


Sec. 3509.40  What are fractional interest prospecting permits and 
leases?

    They are prospecting permits and leases for parcels where the 
United States holds less than 100 per cent of the mineral interest of 
the parcel. Fractional interest leases allow development of the shared 
mineral interests.


Sec. 3509.41  For what lands may BLM issue fractional interest 
prospecting permits and leases?

    We issue them for lands where the United States owns less than 100 
per cent of the mineral interest and where we have determined it is in 
the public interest to grant the permit or lease. We will only grant 
fractional interest permits or leases with the consent of the surface 
managing agency. If we believe a mineral deposit exists but do not 
know, we may issue a noncompetitive fractional interest lease.


Sec. 3509.45  Who may apply for a fractional interest prospecting 
permit or lease?

    Only persons who have an interest in the non-Federal share of the 
same minerals may apply for a fractional interest lease of the 
minerals. Applicants must also meet the qualification standards in 
subpart 3502 of this part.


Sec. 3509.46  How do I apply for a fractional interest prospecting 
permit or lease?

    No specific form is required. Include a $25 filing fee with the 
application. Submit the application to the BLM office with jurisdiction 
over the lands.


Sec. 3509.47  What information must I include in my application for a 
fractional interest prospecting permit or lease?

    Your application must include all the same information we require 
when you apply for a regular competitive Federal lease. See subpart 
3508 of this part. In addition, you must include the following:
    (a) A land description;
    (b) Your certification that you meet the qualifications 
requirements (see subpart 3502 of this part);
    (c) Evidence of your title or the extent of your rights in the 
mineral deposits. Submit either a certified abstract of title, a title 
certificate or the instrument establishing your rights; and
    (d) The names of the other owners, if any, of the mineral 
interests. If you own the operating rights to the mineral by means of a 
contract with the mineral owner, you also need to submit three copies 
of the mineral contract or lease.


Sec. 3509.48  What will BLM do after it receives my application for a 
fractional interest lease?

    (a) After BLM receives your application for a fractional interest 
lease, we will notify all other interest owners that they have 90 days 
to file applications for the same mineral interest.
    (b) If any other interest owners timely apply, we will hold a 
competitive lease sale among the qualified applicants. BLM will 
establish standards for the competitive sale similar to those under 
subpart 3508 of this part, and provide notice to all of the applicants.
    (c) If no other qualified owners timely apply, BLM may issue a 
fractional interest lease to you. BLM will establish the amount of the 
bonus bid you must pay through appraisal.


Sec. 3509.49  What terms and conditions apply to my fractional interest 
prospecting permit or lease?

    BLM will apply the commodity-specific terms and conditions found in 
this part to fractional interest prospecting permits and leases.


Sec. 3509.50  Under what conditions would BLM reject my application for 
a fractional interest prospecting permit or lease?

    BLM will reject your fractional interest application if:
    (a) You do not meet the qualifications in Sec. 3509.45 of this 
part;
    (b) You would have an interest in the total Federal and non-Federal 
mineral estate of less than 50% once the fractional interest 
prospecting permit or lease is issued, unless we determine it would be 
in the best interests of the government to issue the permit or lease; 
or
    (c) We determine that it is not in the public interest to grant the 
lease.


Sec. 3509.51  May I withdraw my application for a fractional interest 
prospecting permit or lease?

    Yes, if you file the withdrawal before the lease is signed. BLM 
will retain the application fee.

Subpart 3510--Noncompetitive Leasing: Fringe Acreage Leases and 
Lease Modifications


Sec. 3510.11  If I already have a Federal lease, or the mineral rights 
on adjacent private lands, may I lease adjoining Federal lands that 
contain the same deposits without competitive bidding?

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


Sec. 3510.12  What must I do to obtain a lease modification or fringe 
acreage lease?

    (a) File three copies of your application with the BLM office that 
administers the lands. No specific application form is required.
    (b) Include a non-refundable filing fee of $25, and an advance 
rental payment in accordance with the rental rate for the mineral 
commodity you are seeking. If you want to modify an existing lease, BLM 
will base the rental payment on the rate in effect for the lease being 
modified.
    (c) Your application must:
    (1) Show 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 you own or 
control; 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. 3510.15  What will BLM do with my application?

    We will 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 you own or control;
    (b) The new fringe lease does not exceed the maximum size allowed 
in a lease, as specified in Sec. 3503.37 of this part;
    (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 of this part;
    (d) The mineral deposit is not in an area of competitive interest 
to holders of other active mining units in the area;
    (e) The lands for which you applied lack sufficient reserves of the 
mineral

[[Page 53552]]

resource to warrant independent development;
    (f) Leasing the lands will conserve natural resources and will 
provide for economical and efficient recovery as part of a mining unit; 
and
    (g) You meet the qualification requirements for holding a lease 
described in subpart 3502 of this title and the new or modified lease 
will not cause you to exceed the acreage limitations described in 
Sec. 3503.37 of this part.


Sec. 3510.20  Do I have to pay a fee to modify my existing lease or 
obtain a fringe acreage lease?

    Yes. Before BLM issues a new fringe acreage lease or modifies your 
existing lease, you must pay a bonus in an amount we will determine 
based on an appraisal or other appropriate means. The bonus cannot be 
less than $1 per acre or fraction of an acre.


Sec. 3510.21  What terms and conditions apply to fringe acreage leases 
and lease modifications?

    Your fringe acreage lease is a new Federal lease. Therefore, we may 
impose terms and conditions different from those in your original 
Federal lease. A modified lease will be subject to the same terms and 
conditions as in the original Federal lease.

Subpart 3511--Lease Terms and Conditions


Sec. 3511.10  Do certain leases allow me to mine other commodities as 
well?

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


Sec. 3511.11  If I am mining calcium chloride, may I obtain a 
noncompetitive mineral lease to produce the commingled sodium chloride?

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


Sec. 3511.12  Are there standard terms and conditions which apply to 
all leases?

    Yes. BLM will issue your lease on a standard form which will 
contain several terms and conditions. We will add your rental rate, 
royalty obligations and any special stipulations to this lease form.


Sec. 3511.15  How long will my lease be in effect?

------------------------------------------------------------------------
                                                    Period of Renewal or
          Commodity               Initial Term           Readjustment
------------------------------------------------------------------------
(a) Phosphate...............  Indeterminate.......  Subject to
                                                     readjustment at the
                                                     end of each 20 year
                                                     period.
(b) Sodium..................  20 years............  Can be renewed for
                                                     10 years at the end
                                                     of the initial term
                                                     and for following
                                                     10 year periods.
(c) Potassium...............  Indeterminate.......  Subject to
                                                     readjustment at the
                                                     end of each 20 year
                                                     period.
(d) Sulphur.................  20 years............  Can be renewed for
                                                     10 years at the end
                                                     of the initial term
                                                     and for following
                                                     10 year periods.
(e) Gilsonite...............  20 years and for as   Subject to
                               long thereafter as    readjustment at the
                               gilsonite is          end of each 20 year
                               produced in paying    period.
                               quantities.
(f) Hardrock Minerals.......  not to exceed 20      Can be renewed for
                               years.                10 years at the end
                                                     of the initial term
                                                     and for following
                                                     10 year periods.
(g) Asphalt.................  20 years............  Can be renewed for
                                                     10 years at the end
                                                     of the initial term
                                                     and for following
                                                     10 year periods.
------------------------------------------------------------------------

Sec. 3511.25  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 before the end of each 20-year 
period. If we do not timely 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, we will issue the 
lease for an initial term as specified in Sec. 3510.15 of this part. 
You must apply for a renewal of the lease at least 90 days before the 
initial term ends in order to extend the lease for an additional term. 
If you do not renew the lease, it expires and the lands become 
available for re-leasing. BLM may change some of your lease terms when 
we renew a lease.


Sec. 3511.26  What if I object to the terms and conditions BLM proposes 
for a readjusted lease?

    (a) You have 60 days after receiving the proposed readjusted terms 
to object. If we do not receive your objection within 60 days, the 
proposed readjusted terms will be in effect. If you file an objection, 
BLM will issue a decision in response. If you disagree with the 
decision, you may appeal under parts 4 and 1840 of this title.
    (b) The readjusted lease terms and conditions will be effective 
pending the outcome of any appeal, unless BLM provides otherwise.


Sec. 3511.27  How do I renew my lease?

    File an application at least 90 days before the lease term expires. 
No specific form is required. Send us three copies of your application 
together with a non-refundable $25 filing fee and an advance rental 
payment of $1 per acre or fraction of an acre.


Sec. 3511.30  If I appeal BLM's proposed new terms, must I continue 
paying royalties or rentals while my appeal is pending?

    Yes. Continue to pay royalties and rentals at the original rate. 
Your obligation to pay any increased readjusted royalties, minimum 
royalties and rentals will be suspended while your appeal is 
considered. However, any increased charges accrue beginning with the 
effective date of the readjustment or renewal, while final action on 
your appeal is pending. If the increased charges are sustained on 
appeal, you must pay the accrued balance, plus interest at the rate MMS 
specifies for late payment in 30 CFR part 218.

[[Page 53553]]

Subpart 3512--Assignments and Subleases

How to Assign Leases


Sec. 3512.11  Once BLM issues me a permit or lease, may 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. 3512.12  Is there a fee for requesting an assignment or sublease?

    When you submit your instrument for assignment of record title or 
operating rights, or for transfer of overriding royalties, you must pay 
a non-refundable filing fee of $25. BLM will not accept any instrument 
without the filing fee.


Sec. 3512.13  How do I assign my permit or lease?

    (a) 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:
    (1) The assignee's name and current address;
    (2) The interest held by you and the interest you plan to assign;
    (3) The serial number of the affected permit or lease;
    (4) The amount of overriding royalties you retain;
    (5) The date and your original signature on each copy, as the 
assignor; and
    (6) The assignee must also send BLM a request for approval of the 
assignment which must contain:
    (i) A statement of the assignee's qualifications and holdings, as 
required by subpart 3502 of this part;
    (ii) Date and original signature of the assignee; and
    (iii) A $25 filing fee.
    (b) BLM must approve the assignment. We will notify you with a 
decision indicating approval or disapproval.
    (c) If you are assigning a portion of your permit or lease, we will 
create a new permit or lease for the assigned portion, if approved.


Sec. 3512.16  How do I sublease my lease?

    (a) You must file one copy of the sublease between you and the 
sublessee within 90 days from the date of final execution of the 
sublease.
    (b) The sublessee must also file a signed and dated request for 
approval, a statement of qualifications (see subpart 3502 of this part) 
and a $25 fee.
    (c) We will notify you with a decision indicating approval or 
disapproval.


Sec. 3512.17  How do I transfer the operating rights in my permit or 
lease?

    (a) You must file one copy of the agreement to transfer operating 
rights within 90 days from the date of final execution of the 
agreement.
    (b) The transferee must also file a signed and dated request for 
approval, a statement of qualifications (see subpart 3502 of this part) 
and a $25 fee.
    (c) We will notify you with a decision indicating approval or 
disapproval.

Special Circumstances and Obligations


Sec. 3512.18  Will BLM approve my assignment or sublease if I have 
outstanding liabilities?

    Before we will approve your assignment of a permit or lease, your 
account must be in good standing. We will also approve the assignment 
if the assignee and his or her surety provides 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. 3512.19  Must I notify BLM if I intend to transfer an overriding 
royalty to another party?

    Yes. Although we do not approve these transfers, you must file all 
overriding royalty interest transfers with the BLM within 90 days from 
the date of execution. Include the transferees's statement of 
qualifications required in subpart 3502 of this part and the $25 filing 
fee.

Effect of Assignments on Your Obligations


Sec. 3512.25  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 the date we approve the 
assignment. You will continue to be responsible for obligations that 
accrued prior to the date of our approval of the assignment, whether or 
not they were identified at the time of the transfer.


Sec. 3512.30  What are the responsibilities of a sublessor and a 
sublessee?

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


Sec. 3512.33  Does an assignment or sublease alter the permit or lease 
terms?

    No, it does not alter permit or lease terms.

Subpart 3513--Waiver, Suspension or Reduction of Rental and Minimum 
Royalties


Sec. 3513.11  May BLM relieve me of the lease requirements of rental, 
minimum royalty, or production royalty while continuing to hold the 
lease?

    Yes. BLM has a process which may allow you temporary relief from 
these lease requirements.


Sec. 3513.12  What criteria does BLM consider in approving a waiver, 
suspension, or reduction in rental or minimum royalty, or a reduction 
in the royalty rate?

    We will consider if approval:
    (a) Is in the interest of conservation;
    (b) Will encourage the greatest ultimate recovery of the resource; 
and
    (c) Is necessary either to promote development of the mineral 
resources or because you cannot successfully operate the lease under 
existing terms.


Sec. 3513.15  How do I apply for reduction of rental, royalties or 
minimum production?

    You must send us two copies of your application with the following 
information for all leases involved:
    (a) The serial numbers;
    (b) The name of the record title holder(s);
    (c) The name of the operator and operating rights owners 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 leasable minerals mined for each 
month covering at least the last twelve months before you filed 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 paid and efforts you have made to reduce 
them;
    (k) Documents demonstrating that the total amount of overriding 
royalties paid for the lease will not exceed one-half the proposed 
reduced royalties due the United States; and

[[Page 53554]]

    (l) Any other information BLM needs to determine whether the 
request satisfies the standards in Sec. 3513.12 of this part.

Suspension of Operations and Production (Conservation Concerns)


Sec. 3513.20  What is a suspension of operations and production 
(conservation concerns)?

    A suspension of operations and production (conservation concerns) 
is a BLM action where BLM orders or allows you to suspend operations in 
the interest of conservation of natural resources.


Sec. 3513.21  What is the effect of a suspension of operations and 
production (conservation concerns)?

    BLM will extend your lease term by any periods of suspension of 
operations and production (conservation concerns). We will reduce the 
minimum annual production requirements of your lease proportionately 
for that time during 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 starting with the first day of the next 
lease month after the suspension becomes effective. However, if the 
suspension is effective on the first day of the lease month, you may 
stop paying rentals and royalties that same day.


Sec. 3513.22  How do I apply for a suspension of operations and 
production (conservation concerns)?

    Send us two copies of an application that explains why it is in the 
interest of conservation to suspend your operations and production.


Sec. 3513.23  May BLM order a suspension of operations and production 
(conservation concerns)?

    Yes, BLM may order a suspension of operations and production.


Sec. 3513.25  When will my suspension of operations and production 
(conservation concerns) take effect?

    Your suspension takes effect on the date BLM specifies.


Sec. 3513.26  When and how does my suspension of operations and 
production (conservation concerns) expire or terminate?

    Your suspension ends on the expiration date that BLM specifies in 
the decision or order approving the suspension, or on the first day of 
the lease month in which you resume operations or production, whichever 
occurs first. All lease terms and obligations resume on this date. MMS 
will allow credit towards future rentals or royalties due, if you paid 
rent for the period of suspension of operations and production.

Suspension of Operations (Economic Concerns)


Sec. 3513.30  What is a suspension of operations (economic concerns)?

    A suspension of operations (economic concerns) is an action by 
which BLM may approve your request to suspend operations on your lease 
when marketing conditions are such that you cannot operate your leases 
except at a loss. BLM may not order a suspension of operations 
(economic concerns) unless you request it.


Sec. 3513.31  What is the effect of a suspension of operations 
(economic concerns)?

    This suspension does not affect the term of the lease or the annual 
rental payment. BLM will reduce the minimum annual production 
requirements of your lease in proportion to that part of the lease year 
for which a suspension of operations is effective.


Sec. 3513.32  How do I apply for a suspension of operations (economic 
concerns)?

    Send us two copies of your application which shows why your lease 
cannot be operated except at a loss.


Sec. 3513.33  When will my suspension of operations (economic concerns) 
take effect?

    Your suspension will be effective on the date BLM specifies. You do 
not have to pay royalty on minimum annual production beginning on the 
first day of the next lease month after the suspension becomes 
effective. If the effective date is the first of the month, you may 
stop paying royalty on minimum annual production on that day.


Sec. 3513.34  When and how does my suspension of operations (economic 
concerns) expire or terminate?

    The suspension of operations (economic concerns) ends on the 
expirations date that BLM specifies in the decision approving the 
suspension, or on the first day of the lease month in which you resume 
operations, whichever occurs first. Your obligation for minimum annual 
production resumes at this time.

Subpart 3514--Lease Relinquishments and Cancellations

Relinquishing Your Lease


Sec. 3514.11  May I relinquish my lease or any part of my lease?

    If you can show, to BLM's satisfaction, that the public interest 
will not be impaired, you may relinquish your entire lease or any legal 
subdivision of it. Notify us in writing that you intend to relinquish 
all or part of your lease. Include your original signature and date. If 
we approve your relinquishment, you are required to pay all accrued 
rentals and royalties, and to perform any reclamation of the leased 
lands that BLM may require. In some cases, BLM may require you to 
preserve any mines, productive works or permanent improvements on the 
leased lands in accordance with the terms of your lease.


Sec. 3514.12  What additional information should I include in a request 
for partial relinquishment?

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


Sec. 3514.15  Where do I file my relinquishment?

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


Sec. 3514.20  When is my relinquishment effective?

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


Sec. 3514.21  When will BLM approve my relinquishment?

    We will accept your relinquishment when you have met all terms and 
conditions of the lease, including reclamation obligations.

Cancellations, Forfeitures, and Other Situations


Sec. 3514.25  When does my lease expire?

    (a) Sodium, sulphur, asphalt, and hardrock mineral leases expire at 
the end of the lease term. If you file a timely application for lease 
renewal under Sec. 3511.27 of this part, your lease expires on the 
expiration date or the date BLM rejected your application, whichever is 
later.
    (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.
    (c) For more information, see Sec. 3511.15 of this part.


Sec. 3514.30  May BLM cancel my lease?

    (a) Yes. BLM may institute appropriate proceedings in a court of 
competent jurisdiction to cancel your lease if:
    (1) You do not comply with the provisions of the Mineral Leasing 
Act, other relevant statutes, or regulations applicable to your lease; 
or

[[Page 53555]]

    (2) You default on any of the lease terms, covenants or 
stipulations and continue to fail or default for 30 days after BLM 
notifies you in writing of your default.
    (b) BLM may cancel your lease administratively if we issued it in 
violation of any law or regulation. In such a case, we may consider 
issuing an amended lease, if appropriate.


Sec. 3514.31  May BLM waive cancellation or forfeiture?

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


Sec. 3514.32  Will BLM give me an opportunity to remedy a violation of 
the lease terms?

    (a) If you own or control, directly or indirectly, an interest in a 
lease in violation of any of the provisions of the Mineral Leasing Act, 
other relevant statutes, the lease terms or the regulations in this 
part, we will give you 30 days to remedy the violation or to show cause 
why we should not ask the Attorney General to institute court 
proceedings to:
    (1) Cancel the lease;
    (2) Forfeit your interest; or
    (3) Compel disposal of the interest so owned or controlled.
    (b) BLM will not give you 30 days if there is no legal remedy to 
the violation.


Sec. 3514.40  What if I am a bona fide purchaser and my lease is 
subject to cancellation?

    (a) If you are a bona fide purchaser, BLM will not cancel your 
lease or your interest in a lease based on your predecessor's actions. 
However, you must be sure 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 
they are a bona fide purchaser from any legal proceedings to cancel the 
lease.

Subpart 3515--Mineral Lease Exchanges

Lease Exchange Requirements


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

    Yes. BLM may determine that operations on your lease or lands for 
which you have a preference right to a lease are not in the public 
interest. If you or BLM identify other lands for exchange, you may 
relinquish your current lease or preference right in exchange for a 
mineral lease of other lands of equal value.


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 part 2200 of this title apply to 
mineral lease exchanges.
    (b) Exchanges involving the issuance of coal leases, coal lease 
bidding rights or coal lease modifications are subject to the 
regulations in subpart 3435 of this chapter rather than to the 
regulations in this part.


Sec. 3515.15  May BLM initiate an exchange?

    Yes. When we do:
    (a) We will notify you that we are prepared to consider exchange of 
a mineral lease if you relinquish your existing leasing rights.
    (b) We may exchange all or any part of the lands under your 
preference right lease application(s) or lease(s).


Sec. 3515.16  What standards does BLM use to assess the public interest 
of an exchange?

    BLM must find that the exchange is in the public interest under the 
following criteria:
    (a) The benefits of production from your existing lease or 
preference right to a lease would not outweigh the adverse effects on, 
or threat of damage or destruction to:
    (1) Agricultural production potential;
    (2) Scenic values;
    (3) Biological values including threatened or endangered species 
habitat;
    (4) Geologic values;
    (5) Archeological, historic or other cultural values;
    (6) Other public interest values such as recreational use;
    (7) Residential or urban areas;
    (8) Potential inclusion in the wilderness or wild and scenic rivers 
systems; or
    (9) Other public uses, including public highways, airports, and 
rights-of-way from lease operations.
    (b) The lands proposed for exchange must be free from hazardous 
waste as defined under the authorities of the Federal Water Pollution 
Control 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 when BLM is considering initiating an 
exchange that will affect my lease?

    Yes. The notice you receive will:
    (a) State why we believe 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 we would offer 
exchange terms; and
    (d) Ask you to describe the lands on which you would accept a lease 
in exchange for your present holdings.

Types of Lease Exchanges


Sec. 3515.20  May I exchange preference rights?

    Yes. To have a preference 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 
lands 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, either party may equalize the 
value by paying money to the party receiving the property of lesser 
value. Such payments may not 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.

Lease Exchange Procedures


Sec. 3515.23  May BLM require me to submit additional information?

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


Sec. 3515.25  Is BLM required to publish notice or hold a hearing?

    Yes. After you and BLM agree on the lands for exchange, we will 
publish a notice of the proposed exchange in the Federal Register and 
in a newspaper(s)

[[Page 53556]]

in the county(s) where the lands involved are located. The notice will 
include:
    (a) The time and place of a public hearing(s);
    (b) Our 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 and consideration of public comments, we 
will determine whether issuance of the exchange lease is in the public 
interest. If it is, we will then process the exchange. If not, we will 
cancel the exchange.


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

    Yes, the lease terms will contain a statement that you quitclaim 
and relinquish any right or interest in your preference right lease 
application or lease exchanged.

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 permit or lease to help you develop the mineral deposits. 
You may only get a use permit during the life of your permit or lease, 
and only for unentered, unappropriated, BLM-administered land. Use 
permits are not prospecting permits.


Sec. 3516.11  What kinds of permits or leases allow use permits?

    Use permits are issued only in support of phosphate and sodium 
permits and leases. For phosphate permits and leases, BLM may issue you 
a use permit to use up to 80 acres. For sodium leases, use permits are 
limited to no more than 40 acres.


Sec. 3516.12  What activities may 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 
use the surface for other purposes connected with, and necessary to, 
the proper development and use of the deposits.


Sec. 3516.15  How do I apply for a use permit?

    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 of 
this part.


Sec. 3516.16  What must I include with my application?

    You must agree to pay the annual charge identified in the permit, 
and provide the following information:
    (a) Specific reasons why you need the additional lands;
    (b) A description of the lands applied for;
    (c) Any information demonstrating that the lands are suitable and 
appropriate for your needs; and
    (d) Evidence that the lands are unoccupied and unappropriated.


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 we serve you with a written notice 
of the rental requirement.

Subpart 3517--Hardrock Mineral Development Contracts; Processing 
and Milling Arrangements


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 lessees 
and one or more other persons to justify large scale operations for the 
discovery, development, production, or transportation of ores.


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

    Hardrock mineral permits and leases committed to development 
contracts or processing or milling arrangements approved by BLM are 
exempt from state and nationwide acreage limitations. We will not count 
them toward your maximum acreage holdings. However, individual hardrock 
mineral leases committed to a development contract or lease may not 
exceed 2560 acres in size.


Sec. 3517.15  How do I apply for approval of 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) We will consider whether the agreement will conserve natural 
resources and is in the public interest.
    (b) Once the agreement is signed by all the parties, we may approve 
it.

[FR Doc. 99-25352 Filed 9-30-99; 8:45 am]
BILLING CODE 4310-94-P