43 C.F.R. Subpart 3513—Waiver, Suspension or Reduction of Rental and Minimum Royalties
Title 43 - Public Lands: Interior
Yes. BLM has a process which may allow you temporary relief from these lease requirements. We will consider if approval: (a) Is in the interest of conservation; (b) Will encourage the greatest ultimate recovery of the resource; and (c) Is necessary either to promote development of the mineral resources or because you cannot successfully operate the lease under existing terms. You must send us two copies of your application with the following information for all leases involved: (a) The serial numbers; (b) The name of the record title holder(s); (c) The name of the operator and operating rights owners if different from the record title holder(s); (d) A description of the lands by legal subdivision; (e) A map showing the serial number and location of each mine or excavation and the extent of the mining operations; (f) A tabulated statement of the leasable minerals mined for each month covering at least the last twelve months before you filed your application, and the average production mined per day for each month; (g) If you are applying for relief from the minimum production requirement, complete information as to why you did not attain the minimum production; (h) A detailed statement of expenses and costs of operating the entire lease, and the income from the sale of any leased products; (i) All facts showing why you cannot successfully operate the mines under the royalty or rental fixed in the lease and other lease terms; (j) For reductions in royalty, full information as to whether you pay royalties or payments out of production to anyone other than the United States, the amounts paid and efforts you have made to reduce them; (k) Documents demonstrating that the total amount of overriding royalties paid for the lease will not exceed one-half the proposed reduced royalties due the United States; and (l) Any other information BLM needs to determine whether the request satisfies the standards in §3513.12 of this part. Yes. BLM will charge you a processing fee on a case-by-case basis, as described in §3000.11 of this chapter. [70 FR 58878, Oct. 7, 2005]
Title 43: Public Lands: Interior
PART 3500—LEASING OF SOLID MINERALS OTHER THAN COAL AND OIL SHALE
Subpart 3513—Waiver, Suspension or Reduction of Rental and Minimum Royalties
Rental and Royalty Reductions
§ 3513.11 May BLM relieve me of the lease requirements of rental, minimum royalty, or production royalty while continuing to hold the lease?
§ 3513.12 What criteria does BLM consider in approving a waiver, suspension, or reduction in rental or minimum royalty, or a reduction in the royalty rate?
§ 3513.15 How do I apply for reduction of rental, royalties or minimum production?
§ 3513.16 Do I have to pay a fee when I apply for a waiver, suspension, or reduction of rental, minimum royalty, production royalty, or minimum production?
Suspension of Operations and Production (Conservation Concerns)
§ 3513.20 What is a suspension of operations and production (conservation concerns)?
A suspension of operations and production (conservation concerns) is a BLM action where BLM orders or allows you to suspend operations in the interest of conservation of natural resources.
§ 3513.21 What is the effect of a suspension of operations and production (conservation concerns)?
BLM will extend your lease term by any periods of suspension of operations and production (conservation concerns). We will reduce the minimum annual production requirements of your lease proportionately for that time during a lease year in which a suspension of operations and production is effective. You do not have to pay rental and minimum annual production royalties starting with the first day of the next lease month after the suspension becomes effective. However, if the suspension is effective on the first day of the lease month, you may stop paying rentals and royalties that same day.
§ 3513.22 How do I apply for a suspension of operations and production (conservation concerns)?
Send us two copies of an application that explains why it is in the interest of conservation to suspend your operations and production.
§ 3513.23 May BLM order a suspension of operations and production (conservation concerns)?
Yes, BLM may order a suspension of operations and production.
§ 3513.25 When will my suspension of operations and production (conservation concerns) take effect?
Your suspension takes effect on the date BLM specifies.
§ 3513.26 When and how does my suspension of operations and production (conservation concerns) expire or terminate?
Your suspension ends on the expiration date that BLM specifies in the decision or order approving the suspension, or on the first day of the lease month in which you resume operations or production, whichever occurs first. All lease terms and obligations resume on this date. MMS will allow credit towards future rentals or royalties due, if you paid rent for the period of suspension of operations and production.
Suspension of Operations (Economic Concerns)
§ 3513.30 What is a suspension of operations (economic concerns)?
A suspension of operations (economic concerns) is an action by which BLM may approve your request to suspend operations on your lease when marketing conditions are such that you cannot operate your leases except at a loss. BLM may not order a suspension of operations (economic concerns) unless you request it.
§ 3513.31 What is the effect of a suspension of operations (economic concerns)?
This suspension does not affect the term of the lease or the annual rental payment. BLM will reduce the minimum annual production requirements of your lease in proportion to that part of the lease year for which a suspension of operations is effective.
§ 3513.32 How do I apply for a suspension of operations (economic concerns)?
Send us two copies of your application which shows why your lease cannot be operated except at a loss.
§ 3513.33 When will my suspension of operations (economic concerns) take effect?
Your suspension will be effective on the date BLM specifies. You do not have to pay royalty on minimum annual production beginning on the first day of the next lease month after the suspension becomes effective. If the effective date is the first of the month, you may stop paying royalty on minimum annual production on that day.
§ 3513.34 When and how does my suspension of operations (economic concerns) expire or terminate?
The suspension of operations (economic concerns) ends on the expirations date that BLM specifies in the decision approving the suspension, or on the first day of the lease month in which you resume operations, whichever occurs first. Your obligation for minimum annual production resumes at this time.
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