43 C.F.R. Subpart 3453—Transfers by Assignment, Sublease or Otherwise
Title 43 - Public Lands: Interior
(a) Leases may be transferred in whole or in part to any person, association or corporation qualified under subpart 3472 of this title to hold such leases, except as provided by §3420.1–4(b) (1)(iv) and (2)(ii) of this title. (b) Preference right lease applications may be transferred as a whole only to a person, association or corporation qualified under subpart 3472 of this title to hold a lease. (c) Exploration licenses may be transferred in whole or in part subject to §3453.3(b) of this title. [47 FR 33147, July 30, 1982]
Title 43: Public Lands: Interior
PART 3450—MANAGEMENT OF EXISTING LEASES
Subpart 3453—Transfers by Assignment, Sublease or Otherwise
§ 3453.1 Qualifications.
§ 3453.2 Requirements.
§ 3453.2-1 Application.
Applications for approval of any transfer of a lease, preference right lease application or exploration license or any interest in a lease or license, whether by direct assignment, working agreement, transfer of royalty interest, sublease, or otherwise, shall be filed within 90 days from final execution.
[44 FR 42635, July 19, 1979, as amended at 47 FR 33147, July 30, 1982]
§ 3453.2-2 Forms and statements.
(a) Transfers of any record title interest shall be filed in triplicate and shall be accompanied by a request for approval from the transferee.
(b) No specific form need be used for requests for approval of transfers. The request for approval shall contain evidence of the transferee's qualifications, including a statement of Federal coal lease acreage holdings. This evidence shall consist of the same showing of qualifications required of a lease applicant by subpart 3472 of this title. A single signed copy of the qualifications statement is sufficient.
(c) A separate instrument of transfer shall be filed for each lease when transfers involve record titles. When transfers to the same person, association, or corporation involving more than one lease are filed at the same time, one request for approval and one showing as to the qualifications of the transferee shall be sufficient.
(d) A single signed copy of all other instruments of transfer is sufficient, except that collateral assignments and other security or mortgage documents shall not be accepted for filing.
(e) Any transfer of a record title interest or assignment of operating rights shall be accompanied by the transferee's submission of the information specified in §3422.3–4 of this title, including the holdings of any affiliate(s) (including joint ventures) of the transferees, or a statement incorporating a prior submission of the specified information by reference to the date and lease, license or application serial number of the submission, and containing any and all changes in holdings since the date of the prior submission.
(f) Any document of transfer which does not contain a description of all consideration or value paid or promised for the transfer shall be accompanied by a separate statement of all consideration or value, whether cash, property, future payments or any other type of consideration, paid or promised for the transfer.
(g) Information submitted to comply with paragraphs (e) and (f) of this section may be labeled as proprietary data and shall be treated in accordance with the laws and regulations governing the confidentiality of such information.
[44 FR 42635, July 19, 1979, as amended at 47 FR 33147, July 30, 1982]
§ 3453.2-3 Filing location and fee.
Instruments of transfer and requests for approval shall be filed in the Bureau of Land Management office having jurisdiction over the leased lands proposed for transfer (see 43 CFR subpart 1821). Each instrument of transfer shall be accompanied by a nonrefundable filing fee (see 43 CFR 3473.2).
[47 FR 33147, July 30, 1982]
§ 3453.2-4 Bonds.
(a) If a bond is required, it shall be furnished before a lease, preference right lease application or exploration license may be approved for transfer. If the original lease, preference right lease application or exploration license required the maintenance of a bond, the transferee shall submit either a written consent from the surety to the substitution of the transferee as principal or a new bond with the transferee as principal. Transfers of any part of the leased or licensed lands shall be described by legal subdivisions. Before any transfer of part of a lease or license is approved, the transferee shall submit: (1) A written statement from the surety that it agrees to the transfer and that it agrees to remain bound as to the interest retained by the lessee or licensee; and (2) a new bond with the tranferee as principal covering the portion transferred.
(b) The transferor and the surety shall continue to be responsible for the performance of any obligation under the lease, preference right lease application or exploration license until the effective date of the approval of the transfer. If the transfer is not approved, the obligation to the United States shall continue as though no such transfer had been filed for approval. After the effective date of approval, the transferee, including any sublessee, applicant or licensee, and the transferee's surety shall be responsible for all lease, application or license obligations, notwithstanding any terms of the transfer to the contrary.
[47 FR 33147, July 30, 1982, as amended at 47 FR 38131, Aug. 30, 1982]
§ 3453.2-5 Effect of partial assignment.
A transfer of full record-title to only part of the lands, or any bed of the coal deposits therein, shall segregate the transferred and retained portions into separate and distinct leases or licenses, with the retained portion keeping the original serial number. The newly segregated lease or license shall be assigned a new serial number and shall contain the same terms and conditions as the original lease or license.
[47 FR 33148, July 30, 1982]
§ 3453.3 Approval.
§ 3453.3-1 Conditions for approval.
(a) No transfer of a lease shall be approved if:
(1) The transferee is not qualified to hold a lease or an interest in a lease under subpart 3472 of this title or under §§3420.1–3(b)(1)(iv) and 3420.1–3(b)(2)(ii) of this title;
(2) The lease bond is insufficient;
(3) The filing fee has not been submitted;
(4) The transferee would hold the lease in violation of the acreage requirements set out in subpart 3472 of this title;
(5) The transfer would create an overriding royalty or other interest in violation of §3473.3–2 of this title;
(6) The lease account is not in good standing;
(7) The information required under §3453.2–2(e) and (f) of this title has not been submitted; or
(8) The transferee is subject to the prohibition in §3472.1–2(e) of this title.
(b) When the licensee proposes to transfer an exploration license, any other participating parties in the license shall be given the right of first refusal. If none of the participating parties wishes to assume the license, the license may be transferred if:
(1) The exploration bond is sufficient;
(2) The filing fee has been submitted; and
(3) The license account is in good standing.
(c) A preference right lease application may be transferred as a whole only to any party qualified to hold a lease under subpart 3472 of this title.
[47 FR 33148, July 30, 1982, as amended at 50 FR 42023, Oct. 17, 1985]
§ 3453.3-2 Disapproval of transfers.
(a) The authorized officer shall deny approval of a transfer if any reason why the transfer cannot be approved (listed in §3453.3–1 of this title) is not cured within the time established by the authorized officer in a decision notifying the applicant for approval why the transfer cannot be approved.
(b) The authorized officer shall not approve a transfer of a lease until 30 days after the requirements of §3422.3–4 of this title have been met.
[44 FR 42635, July 19, 1979, as amended at 47 FR 33148, July 30, 1982]
§ 3453.3-3 Effective date.
A transfer shall take effect the first day of the month following its final approval by the Bureau of Land Management, or if the transferee requests in writing, the first day of the month of the approval. The Governor of the affected State(s) shall be given reasonable notice of any lease transfer.
[44 FR 42635, July 19, 1979, as amended at 47 FR 33148, July 30, 1982; 48 FR 37656, Aug. 19, 1983]
§ 3453.3-4 Extensions.
(a) The filing of or approval of any transfer shall not alter any terms or extend any time periods under the lease, including those dealing with readjustment of the lease and the diligent development and continued operation on the lease.
(b) The filing of or approval of a transfer of an exploration license shall not extend the term of the license beyond the statutory 2-year maximum.
[44 FR 42635, July 19, 1979, as amended at 47 FR 33148, July 30, 1982; 47 FR 38131, Aug. 30, 1982]
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