43 C.F.R. Subpart 3212—Lease Suspensions and Royalty Rate Reductions
Title 43 - Public Lands: Interior
A suspension of operations and production is a temporary relief from production obligations which you may request from BLM because economic conditions make it unjustifiable for you to continue operating. A suspension of operations is when we order you, on our own initiative, to temporarily stop production in order to protect the resource. (a) If you are the operator, you may request in writing that BLM suspend your operations and production for a producing lease. Your request must fully describe why you need the suspension. We will determine if your suspension is approved. (b) We may act on our own and suspend your operations on any lease in the interest of conservation. (c) A suspension under this section may include leases committed to an approved unit agreement. Even if leases committed to the unit are suspended, the unit operator must still meet unit obligations. (a) BLM will state in your suspension notice how long your suspension of operations or operations and production is effective. (b) During a suspension, you may ask BLM in writing to terminate your suspension. The suspension will terminate when you resume production or drilling operations. If we terminate the suspension, you must resume paying rents and minimum royalty. See 43 CFR 3212.14. (c) If we get information showing that you must resume operations to protect the interests of the United States, we will terminate your suspension and order you to resume production. If BLM approves your suspension of operations and production, (a) Your lease term is extended by the length of time the suspension is in effect. (b) You do not have to drill, produce geothermal resources, or pay rents or royalties during the suspension. We will suspend your obligation to pay lease rents or royalties beginning with the first day of the month following the date the suspension is effective. For a suspension of operations, we will not suspend your lease rental or royalty obligations. You must resume rental or minimum royalty payments beginning on the first day of the lease month after BLM terminates the suspension. You must pay the full rental or minimum royalty amount due on or before the next lease anniversary date. If you do not, we will refund your balance and cancel the lease. Yes. If you apply for a waiver, suspension or reduction of your rent or royalty, BLM may grant your request if we determine that: (a) It promotes conservation; (b) Doing so will encourage the greatest ultimate recovery of resources; (c) It is necessary to promote development; or (d) You cannot successfully operate the lease under its current terms. (a) Your request for suspension, reduction or waiver of the royalty or rental rate must include all information BLM needs to determine if the lease can be operated under its current terms. We may ask you for: (1) The type of reduction you seek; (2) The serial number of your lease; (3) The names of the lessee and operator; (4) The location and status of wells; (5) A summary of monthly production from your lease; and (6) A detailed statement of expenses and costs. (b) If you are applying for a royalty reduction, suspension or waiver, you must also give us a list of names and amounts of royalties or payments out of production paid to each individual, and every effort you have made to reduce these payments. We will not approve a royalty reduction, suspension or waiver unless other royalty interest owners accept a similar reduction, suspension or waiver.
Title 43: Public Lands: Interior
PART 3200—GEOTHERMAL RESOURCE LEASING
Subpart 3212—Lease Suspensions and Royalty Rate Reductions
§ 3212.10 What is the difference between a suspension of operations and production and a suspension of operations?
§ 3212.11 How do I obtain a suspension of operations or operations and production on my lease?
§ 3212.12 How long does a suspension of operations or operations and production last?
§ 3212.13 How does a suspension affect my lease terms?
§ 3212.14 What happens when the suspension ends?
§ 3212.15 May BLM reduce or suspend the royalty or rental rate of my lease?
§ 3212.16 What information must I submit when I request that BLM suspend, reduce or waive my royalty or rental rate?
