43 C.F.R. Subpart 3206—Lease Issuance


Title 43 - Public Lands: Interior


Title 43: Public Lands: Interior
PART 3200—GEOTHERMAL RESOURCE LEASING

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Subpart 3206—Lease Issuance

§ 3206.10   What must I do for BLM to issue my lease?

Before BLM issues you a lease, you must:

(a) Accept all lease stipulations;

(b) Sign a unit joinder or waiver, if applicable; and,

(c) Not exceed the maximum limit on acreage holdings (see 43 CFR 3206.12).

§ 3206.11   What must BLM do before issuing my lease?

BLM must:

(a) Determine that the land is available; and

(b) Determine that your lease development will not significantly impact any significant thermal feature within any of the following units of the National Park System:

(1) Mount Rainier National Park;

(2) Crater Lake National Park;

(3) Yellowstone National Park;

(4) John D. Rockefeller, Jr. Memorial Parkway;

(5) Bering Land Bridge National Preserve;

(6) Gates of the Arctic National Park and Preserve;

(7) Katmai National Park;

(8) Aniakchak National Monument and Preserve;

(9) Wrangell-St. Elias National Park and Preserve;

(10) Lake Clark National Park and Preserve;

(11) Hot Springs National Park;

(12) Big Bend National Park (including that portion of the Rio Grande National Wild Scenic River within the boundaries of Big Bend National Park);

(13) Lassen Volcanic National Park;

(14) Hawaii Volcanoes National Park;

(15) Haleakala National Park;

(16) Lake Mead National Recreation Area; and

(17) Any other significant thermal features within National Park System Units which the Secretary may add to the list of these features, in accordance with 30 U.S.C. 1026(a)(3).

§ 3206.12   What is the maximum acreage I may hold?

You may not directly or indirectly hold more than 51,200 acres in any one state. This includes any leases you acquire under sections 4(a)–4(f) of the Act. You also may not convert mineral leases, permits, applications for permits, or mining claims acquired under the Act into geothermal leases totaling more than 10,240 acres.

§ 3206.13   How does BLM compute acreage holdings?

BLM will compute acreage holdings as follows:

(a) If you own an undivided lease interest, your acreage holdings will include the total lease acreage.

(b) If you own stock in a corporation or a beneficial interest in an association which holds a geothermal lease, your acreage holdings will include your proportionate part of the corporation's or association's share of the total lease acreage. This paragraph applies only if you own more than 10 percent of the corporate stock or beneficial interest of the association.

(c) If you own a lease interest, you will be charged with the proportionate share of the total lease acreage based on your share of the lease ownership. You will not be charged twice for the same acreage where you own both record title and operating rights for the lease. For example, if you own 50% record title interest in a 640 acre lease and 25% operating rights, you are charged with 320 acres.

§ 3206.14   How will BLM charge acreage holdings if the United States owns only a fractional interest in the geothermal resources?

Where the United States owns only a fractional interest in the geothermal resources of the lands, BLM will only charge you with the part owned by the United States as acreage holdings. For example, if you own 100 percent of record title in a 100 acre lease, and the United States owns 50 percent of the mineral estate, you are charged with 50 acres.

§ 3206.15   Is there any acreage which is not chargeable?

BLM does not count leased acreage included in any approved unit or cooperative agreement or development contract as part of your total acreage holdings.

§ 3206.16   What will BLM do if my holdings exceed the maximum acreage limits?

BLM will notify you in writing if your acreage holdings exceed the limit in 43 CFR 3206.12. You have 90 days from the date you receive the notice to reduce your holdings to within the limit. If you do not comply, BLM will cancel your leases, beginning with the lease most recently issued, until your holdings are within the limit.

§ 3206.17   What is the primary term of my lease?

Leases have a primary term of 10 years.

§ 3206.18   When will BLM issue my lease?

BLM issues your lease the day we sign it. Your lease goes into effect the first day of the next month after the issue date.

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