43 C.F.R. Subpart 3141—Competitive Leasing in Special Tar Sand Areas
Title 43 - Public Lands: Interior
Source: 48 FR 7422, Feb. 18, 1983, unless otherwise noted.
Note: The information collection requirements contained in 43 CFR subpart 3141 do not require approval by the Office of Management and Budget under 44 U.S.C. 3501 et seq. because there are fewer than 10 respondents annually. The purpose of this subpart is to provide for the competitive leasing of lands and issuance of Combined Hydrocarbon Leases, Oil and Gas Leases, or Tar Sand Leases within special tar sand areas. [70 FR 58614, Oct. 7, 2005] The regulations in this subpart are issued under the authority of the Mineral Leasing Act of February 25, 1920 (30 U.S.C. 181 et seq.), the Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.), the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.), the Combined Hydrocarbon Leasing Act of 1981 (95 Stat. 1070), and the Energy Policy Act of 2005 (Pub. L. 109–58). [70 FR 58615, Oct. 7, 2005] As used in this subpart, the term: (a) Combined hydrocarbon lease means a lease issued in a Special Tar Sand Area for the removal of any gas and nongaseous hydrocarbon substance other than coal, oil shale or gilsonite. (b) For purposes of this subpart, “oil and gas lease” means a lease issued in a Special Tar Sand Area for the exploration and development of oil and gas resources other than tar sand. (c) Tar sand lease means a lease issued in a Special Tar Sand area exclusively for the exploration for and extraction of tar sand. (d) Special Tar Sand Area means an area designated by the Department of the Interior's Orders of November 20, 1980 (45 FR 76800), and January 21, 1981 (46 FR 6077), and referred to in those orders as Designated Tar Sand Areas, as containing substantial deposits of tar and sand. (e) Tar sand means any consolidated or unconsolidated rock (other than coal, oil shale or gilsonite) that either: (1) Contains a hydrocarbonaceous material with a gas-free viscosity, at original reservoir temperature greater than 10,000 centipoise, or (2) contains a hydrocarbonaceous material and is produced by mining or quarrying. [47 FR 22478, May 24, 1982, as amended at 70 FR 58615, Oct. 7, 2005; 71 FR 28779, May 18, 2006] (a) Combined hydrocarbon leases. (1) The following provisions of part 3100 of this title, as they relate to competitive leasing, apply to the issuance and administration of combined hydrocarbon leases issued under this part. (i) All of subpart 3100, with the exception of §3100.3–2; (ii) The following sections of subpart 3101: §§3101.1–1, 3101.2–1, 3101.2–2, 3101.2–4, 3101.2–5, 3101.7–1, 3101.7–2, and 3101.7–3; (iii) All of subpart 3102; (iv) All of subpart 3103, with the exception of §§3103.2–1, those portions of 3103.2–2 dealing with noncompetitive leases, and 3103.3–1 (a), (b), and (c); (v) All of subpart 3104; (vi) All of subpart 3105; (vii) All of subpart 3106, with the exception of §3106.1 (c); (viii) All of subpart 3107, with the exception of §3107.7; (ix) All of subpart 3108; and (x) All of subpart 3109, with special emphasis on §3109.2 (b). (2) Prior to commencement of operations, the lessee shall develop either a plan of operations as described in 43 CFR 3592.1 which ensures reasonable protection of the environment or file an application for a permit to drill as described in 43 CFR part 3160, whichever is appropriate. (3) The provisions of 43 CFR part 3180 shall serve as general guidance to the administration of combined hydrocarbon leases issued under this part to the extent they may be included in unit or cooperative agreements. (b) Oil and gas leases. (1) All of the provisions of parts 3100, 3110, and 3120 of this title apply to the issuance and administration of oil and gas leases issued under this part. (2) All of the provisions of part 3160 apply to operations on an oil and gas lease issued under this part. (3) The provisions of 43 CFR part 3180 apply to the administration of oil and gas leases issued under this part. (c) Tar sand leases. (1) The following provisions of part 3100 of this title, as they relate to competitive leasing, apply to the issuance of tar sand leases issued under this part. (i) All of subpart 3102; (ii) All of subpart 3103 with the exception of sections 3103.2–1, 3103.2–2(d), and 3103.3; (iii) All of section 3120.4; and (iv) All of section 3120.5. (2) Prior to commencement of operations, the lessee shall develop a plan of operations as described in 43 CFR 3592.1 which ensures reasonable protection of the environment. [48 FR 7422, Feb. 18, 1983, as amended at 55 FR 12351, Apr. 3, 1990; 70 FR 58615, Oct. 7, 2005]] (a) Combined hydrocarbons or tar sands within a Special Tar Sand Area shall be leased only by competitive bonus bidding. (b) Oil and gas within a Special Tar Sand Area shall be leased by competitive bonus bidding as described in 43 CFR part 3120 or if no qualifying bid is received during the competitive bidding process, the area offered for competitive lease may be leased noncompetitively as described in 43 CFR part 3110. (c) The authorized officer may issue either combined hydrocarbon leases, or oil and gas leases for oil and gas within such areas. (d) The rights to explore for or develop tar sand deposits in a Special Tar Sand Area may be acquired through either a combined hydrocarbon lease or a tar sand lease. (e) An oil and gas lease in a Special Tar Sand Area does not include the rights to explore for or develop tar sand. (f) A tar sand lease in a Special Tar Sand Area does not include the rights to explore for or develop oil and gas. (g) The minimum acceptable bid for a lease issued for tar sand shall be $2 per acre. (h) The acreage of combined hydrocarbon leases or tar sand leases held within a Special Tar Sand Area shall not be charged against acreage limitations for the holding of oil and gas leases as provided in section 3101.2–1 of this title. (i)(1) The authorized officer may noncompetitively lease additional lands for ancillary facilities in a Special Tar Sand Area that are shown by an applicant to be needed to support any operations necessary for the recovery of tar sand. Such uses include, but are not limited to, mill siting or waste disposal. An application for a lease or permit to use additional lands shall be filed under the provisions of part 2920 of this title with the proper BLM office having jurisdiction of the lands. The application for additional lands may be filed at the time a plan of operations is filed. (2) A lease for the use of additional lands shall not be issued under this part when the use can be authorized under part 2800 of this title. Such uses include, but are not limited to, reservoirs, pipelines, electrical generation systems, transmission lines, roads and railroads. (3) Within units of the National Park System, permits or leases for additional lands for any purpose shall be issued only by the National Park Service. Applications for such permits or leases shall be filed with the Regional Director of the National Park Service. [47 FR 22478, May 24, 1982, as amended at 70 FR 58615, Oct. 7, 2005]
Title 43: Public Lands: Interior
PART 3140—LEASING IN SPECIAL TAR SAND AREAS
Subpart 3141—Competitive Leasing in Special Tar Sand Areas
§ 3141.0-1 Purpose.
§ 3141.0-3 Authority.
§ 3141.0-5 Definitions.
§ 3141.0-8 Other Applicable Regulations.
§ 3141.1 General.
§ 3141.2 Prelease exploration within Special Tar Sand Areas.
§ 3141.2-1 Geophysical exploration.
Geophysical exploration in Special Tar Sand Areas shall be governed by part 3150 of this title. Information obtained under a permit shall be made available to the Bureau of Land Management upon request.
[48 FR 7422, Feb. 18, 1983, as amended at 55 FR 12351, Apr. 3, 1990]
§ 3141.2-2 Exploration licenses.
(a) Any person(s) qualified to hold a lease under the provisions of subpart 3102 of this title and this subpart may obtain an exploration license to conduct core drilling and other exploration activities to collect geologic, environmental and other data concerning tar sand resources only on lands, the surface of which are under the jurisdiction of the Bureau of Land Management, within or adjacent to a Special Tar Sand Area. The application for such a license shall be submitted to the proper BLM office having jurisdiction of the lands. No drilling for oil or gas will be allowed under an exploration license issued under this subpart. No specific form is required for an application for an exploration license.
(b) The application for an exploration license shall be subject to the following requirements:
(1) Each application shall contain the name and address of the applicant(s);
(2) Each application shall be accompanied by a nonrefundable filing fee of $250.00;
(3) Each application shall contain a description of the lands covered by the application according to section, township and range in accordance with the official survey;
(4) Each application shall include 3 copies of an exploration plan which complies with the requirements of 43 CFR 4392.1 (a); and
(5) An application shall cover no more than 5,760 acres, which shall be as compact as possible. The authorized officer may grant an exploration license covering more than 5,760 acres only if the application contains a justification for an exception to the normal limitation.
(c) The authorized officer may, if he/she determines it necessary to avoid impacts resulting from duplication of exploration activities, require applicants for exploration licenses to provide an opportunity for other parties to participate in exploration under the license on a pro rata cost sharing basis. If joint participation is determined necessary, it shall be conducted according to the following:
(1) Immediately upon the notification of a determination that parties shall be given an opportunity to participate in the exploration license, the applicant shall publish a “Notice of Invitation,” approved by the authorized officer, once every week for 2 consecutive weeks in at least 1 newspaper of general circulation in the area where the lands covered by the exploration license are situated. This notice shall contain an invitation to the public to participate in the exploration license on a pro rata cost sharing basis. Copies of the “Notice of Invitation” shall be filed with the authorized officer at the time of publication by the applicant for posting in the proper BLM office having jurisdiction over the lands covered by the application for at least 30 days prior to the issuance of the exploration license.
(2) Any person seeking to participate in the exploration program described in the Notice of Invitation shall notify the authorized officer and the applicant in writing of such intention within 30 days after posting in the proper BLM office having jurisdiction over the lands covered by the Notice of Invitation. The authorized officer may require modification of the original exploration plan to accommodate the legitimate exploration needs of the person(s) seeking to participate and to avoid the duplication of exploration activities in the same area, or that the person(s) should file a separate application for an exploration license.
(3) An application to conduct exploration which could have been conducted under an existing or recent exploration license issued under this paragraph may be rejected.
(d) The authorized officer may accept or reject an exploration license application. An exploration license shall become effective on the date specifed by the authorized officer as the date when exploration activities may begin. The exploration plan approved by the Bureau of Land Management shall be attached and made a part of each exploration license.
(e) An exploration license shall be subject to these terms and conditions:
(1) The license shall be for a term of not more than 2 years;
(2) The rental shall be $2 per acre per year payable in advance;
(3) The licensee shall provide a bond in an amount determined by the authorized officer, but not less than $5,000. The authorized officer may accept bonds furnished under subpart 3104 of this title, if adequate. The period of liability under the bond shall be terminated only after the authorized officer determines that the terms and conditions of the license, the exploration plan and the regulations have been met;
(4) The licensee shall provide to the Bureau of Land Management upon request all required information obtained under the license. Any information provided shall be treated as confidential and proprietary, if appropriate, at the request of the licensee, and shall not be made public until the areas involved have been leased or only if the Bureau of Land Management determines that public access to the data will not damage the competitive position of the licensee.
(5) Operations conducted under a license shall not unreasonably interfere with or endanger any other lawful activity on the same lands, shall not damage any improvements on the lands, and shall not result in any substantial disturbance to the surface of the lands and their resources;
(6) The authorized officer shall include in each license requirements and stipulations to protect the environment and associated natural resources, and to ensure reclamation of the land disturbed by exploration operations;
(7) When unforeseen conditions are encountered that could result in an action prohibited by paragraph (e)(5) of this section, or when warranted by geologic or other physical conditions, the authorized officer may adjust the terms and conditions of the exploration license, may direct adjustment in the exploration plan;
(8) The licensee may submit a request for modification of the exploration plan to the authorized officer. Any modification shall be subject to the regulations in this section and the terms and conditions of the license. The authorized officer may approve the modification after any necessary adjustments to the terms and conditions of the license that are accepted in writing by the licensee; and
(9) The license shall be subject to termination or suspension as provided in §2920.9–3 of this title.
[48 FR 7422, Feb. 18, 1983, as amended at 55 FR 12351, Apr. 3, 1990; 70 FR 58615, Oct. 7, 2005]
§ 3141.3 Land use plans.
No lease shall be issued under this subpart unless the lands have been included in a land use plan which meets the requirements under part 1600 of this title or an approved Minerals Management Plan of the National Park Service. The decision to hold a lease sale and issue leases shall be in conformance with the appropriate plan.
§ 3141.4 Consultation.
§ 3141.4-1 Consultation with the Governor.
The Secretary shall consult with the Governor of the State in which any tract proposed for sale is located. The Secretary shall give the Governor 30 days to comment before determining whether to conduct a lease sale. The Secretary shall seek the recommendations of the Governor of the State in which the lands proposed for lease are located as to whether or not to lease such lands and what alternative actions are available and what special conditions could be added to the proposed lease(s) to mitigate impacts. The Secretary shall accept the recommendations of the Governor if he/she determines that they provide for a reasonable balance between the national interest and the State's interest. The Secretary shall communicate to the Governor in writing and publish in the
§ 3141.4-2 Consultation with others.
(a) Where the surface is administered by an agency other than the Bureau of Land Management, including lands patented or leased under the provisions of the Recreation and Public Purposes Act, as amended (43 U.S.C. 869 et seq.), all leasing under this subpart shall be in accordance with the consultation requirements of subpart 3100 of this title.
(b) The issuance of combined hydrocarbon leases, oil and gas leases, and tar sand leases within special tar sand areas in units of the National Park System shall be allowed only where mineral leasing is permitted by law and where the lands are open to mineral resource disposition in accordance with any applicable Minerals Management Plan. In order to consent to any issuance of a combined hydrocarbon lease, oil and gas lease, tar sand lease, or subsequent development of hydrocarbon resources within a unit of National Park System, the Regional Director of the National Park Service shall find that there will be no resulting significant adverse impacts to the resources and administration of the unit or other contiguous units of the National Park System in accordance with §3109.2 (b) of this title.
[48 FR 7422, Feb. 18, 1983, as amended at 55 FR 12351, Apr. 3, 1990; 70 FR 58615, Oct. 7, 2005]
§ 3141.5 Leasing procedures.
§ 3141.5-1 Economic evaluation.
Prior to any lease sale for a combined hydrocarbon lease, the authorized officer shall request an economic evaluation of the total hydrocarbon resource on each proposed lease tract exclusive of coal, oil shale, or gilsonite.
[70 FR 58615, Oct. 7, 2005]
§ 3141.5-2 Term of lease.
(a) Combined hydrocarbon leases or oil and gas leases shall have a primary term of 10 years and shall remain in effect so long thereafter as oil or gas is produced in paying quantities.
(b) Tar Sand leases shall have a primary term of 10 years and shall remain in effect so long thereafter as tar sand is produced in paying quantities.
[70 FR 58615, Oct. 7, 2005]
§ 3141.5-3 Royalties and rentals.
(a) The royalty rate on all combined hydrocarbon leases or tar sand leases is 12
(b) The lessee may request the Secretary to reduce the royalty rate applicable to tar sand prior to commencement of commercial operations in order to promote development and maximum production of the tar sand resource in accordance with procedures established by the Bureau of Land Managment and may request a reduction in the royalty after commencement of commercial operations in accordance with §3103.4–1 of this title.
(c) The rental rate for a combined hydrocarbon lease shall be $2 per acre per year, and shall be payable annually in advance.
(d) The rental rate for a tar sand lease shall be $1.50 per acre for the first 5 years and $2.00 per acre for each year thereafter.
(e) Except as explained in paragraphs (a), (b), and (c) of this section, all other provisions of §§3103.2 and 3103.3 of this title apply to combined hydrocarbon leasing.
[48 FR 7422, Feb. 18, 1983, as amended at 55 FR 12351, Apr. 3, 1990; 70 FR 58615, Oct. 7, 2005]
§ 3141.5-4 Lease size.
Combined hydrocarbon leases or tar sand leases in Special Tar Sand Areas shall not exceed 5,760 acres.
[70 FR 58616, Oct. 7, 2005]
§ 3141.5-5 Dating of lease.
A combined hydrocarbon lease shall be effective as of the first day of the month following the date the lease is signed on behalf of the United States, except that where prior written request is made, a lease may be made effective on the first of the month in which the lease is signed.
§ 3141.6 Sale procedures.
§ 3141.6-1 Initiation of competitive lease offering.
The Bureau of Land Management may, on its own motion, offer lands through competitive bidding. A request or expression(s) of interest in tract(s) for competitive lease offerings shall be submitted in writing to the proper BLM office.
§ 3141.6-2 Publication of a notice of competitive lease offering.
(a) Combined Hydrocarbon Leases. Where a determination to offer lands for competitive leasing is made, a notice shall be published of the lease sale in the
(b) Tar Sand Leases or Oil and Gas Leases. At least 45 days prior to conducting a competitive auction, lands to be offered for a competitive lease sale shall be posted in the proper BLM office having jurisdiction over the lands as specified in §1821.10 of this chapter, and shall be made available for posting to surface managing agencies having jurisdiction over any of the included lands.
[70 FR 58616, Oct. 7, 2005, as amended at 71 FR 28779, May 18, 2006]
§ 3141.6-3 Conduct of sales.
(a) Combined Hydrocarbon Leases. (1) Competitive sales shall be conducted by the submission of written sealed bids.
(2) Minimum bids shall be not less than $25 per acre.
(3) In the event that only 1 sealed bid is received and it is equal to or greater than the minimum bid, that bid shall be considered the highest bid.
(4) The authorized officer may reject any or all bids.
(5) The authorized officer may waive minor deficiencies in the bids or the lease sale advertisement.
(6) A bid deposit of one-fifth of the amount of the sealed bid shall be required and shall accompany the sealed bid. All bid deposits shall be in the form of either a certified check, money order, bank cashier's check or cash.
(b) Oil and Gas Leases. Lease sales for oil and gas leases will be conducted using the procedures for oil and gas leases in §3120.5 of this title.
(c) Tar Sand Leases. (1) Parcels shall be offered by oral bidding.
(2) The winning bid shall be the highest oral bid by a qualified bidder, equal to or exceeding $2.00 per acre.
(3) Payments shall be made as provided in §3120.5–2 of this title.
[48 FR 7422, Feb. 18, 1983, as amended at 70 FR 58616, Oct. 7, 2005]
§ 3141.6-4 Qualifications.
Each bidder shall submit with the bid a statement over the bidder's signature with respect to compliance with subpart 3102 of this title.
§ 3141.6-5 Fair market value for combined hydrocarbon leases.
Only those bids which reflect the fair market value of the tract(s) as determined by the authorized officer shall be accepted; all other bids shall be rejected.
§ 3141.6-6 Rejection of bid.
If the high bid is rejected for failure by the successful bidder to execute the lease forms and pay the balance of the bonus bid, or otherwise to comply with the regulations of this subpart, the one-fifth bonus accompanying the bid shall be forfeited.
§ 3141.6-7 Consideration of next highest bid.
The Department reserves the right to accept the next highest bid if the highest bid is rejected. In no event shall an offer be made to the next highest bidder if the difference beween his/her bid and that of the rejected successful bidder is greater than the one-fifth bonus forfeited by the rejected successful bidder.
[55 FR 12351, Apr. 3, 1990]
§ 3141.7 Award of lease.
After determining the highest responsible qualified bidder, the authorized officer shall send 3 copies of the lease on a form approved by the Director, and any necessary stipulations, to the successful bidder. The successful bidder shall, not later than the 30th day after receipt of the lease, execute the lease, pay the balance of the bid and the first year's rental, and file a bond as required in subpart 3104 of this title. Failure to comply with this section shall result in rejection of the lease.
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