43 C.F.R. Subpart 3511—Lease Terms and Conditions


Title 43 - Public Lands: Interior


Title 43: Public Lands: Interior
PART 3500—LEASING OF SOLID MINERALS OTHER THAN COAL AND OIL SHALE

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Subpart 3511—Lease Terms and Conditions

§ 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.

§ 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.

§ 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.

§ 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.------------------------------------------------------------------------

§ 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 §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.

§ 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.

§ 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 3 copies of your application together with the processing fee for lease renewal found in the fee schedule in §3000.12 of this chapter and an advance rental payment of $1 per acre or fraction of an acre.

[64 FR 53536, Oct. 1, 1999, as amended at 70 FR 58878, Oct. 7, 2005]

§ 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.

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