Leasing of Solid Minerals Other Than Coal and Oil Shale

SUMMARY: The Bureau of Land Management (BLM) is amending its

regulations governing leasing of solid minerals other than coal and oil

shale. The purpose of this rule is to comply with President Clinton's

government-wide regulatory reform initiative to eliminate unnecessary

regulations, and streamline and rewrite necessary regulations in plain

English. Under the previous rule, each solid mineral commodity had its

own separate regulations, much of which was repeated in each set of

regulations. This rule now combines these solid minerals regulations

into one set of regulations, streamlined, updated and re-written in

plain English. The rule also clarifies the responsibilities of

interested parties.

EFFECTIVE DATE: November 1, 1999.

ADDRESSES: You may send inquiries or suggestions to: Director (630),

Bureau of Land Management, 1849 C Street, NW., Washington, DC 20240.

FOR FURTHER INFORMATION CONTACT: Philip Allard, (202) 452-5195, or

Chris Fontecchio, (202) 452-5012.

SUPPLEMENTARY INFORMATION:

I. Background

II. Final Rule as Adopted

III. Responses to Comments

IV. Procedural Matters

I. Background

On March 4, 1995, President Clinton issued a memorandum to all

Federal Departments and Agencies directing them to simplify their

regulations. In response, BLM analyzed 43 CFR part 3500 through 43 CFR

part 3570 to determine whether the regulations were current and written

in clear and understandable terms. As a result, BLM decided that we

could reorganize the regulations to achieve significant reductions in

length while greatly improving the clarity of the document.

BLM bases its regulatory program relating to solid minerals on

several different statutes which give us the authority to regulate

mineral leasing on Federal lands. The Mineral Leasing Act of 1920 (the

Act), as amended and supplemented (30 U.S.C. 181 et seq.), provides for

leasing of phosphate, potassium, gilsonite, and sodium mineral deposits

on public domain lands. The Act also allows sulphur to be leased from

public lands in Louisiana and New Mexico. The Act authorizes the

Secretary of the Interior (Secretary) to grant to any qualified

applicant a permit or lease for certain deposits of minerals on lands

owned by the United States. Reorganization Plan No. 3 of 1946 (5 U.S.C.

Appendix) transferred the responsibilities of the Department of

Agriculture for hardrock mineral leasing to the Secretary in certain

areas. The Mineral Leasing Act for Acquired Lands of 1947, as amended

(30 U.S.C. 351-359), provides for the leasing of minerals from certain

acquired lands, and authorizes the Secretary to establish rules and

regulations necessary to grant any qualified applicant a permit or

lease to promote mining of phosphate, sodium, potassium, sulphur and

gilsonite deposits on Federal acquired lands. The National

Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) (NEPA)

directs Federal agencies to consider the environmental impacts of their

actions during the decision-making process. Finally, the Federal Land

Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.) (FLPMA)

authorizes the Secretary of the Interior to develop guidelines for the

administration and protection of the Federal lands and their resources

under BLM jurisdiction.

Other authorities which address programs related to specific

commodities and lands include the following:

(a) Certain lands added to the Shasta National Forest (30 U.S.C.

192c);

(b) Public domain lands in National Forests in Minnesota (16 U.S.C.

508(b));

(c) Gold, silver, or quicksilver in confirmed private land grants

(30 U.S.C. 291-293);

(d) Reserved minerals in lands patented to the State of California

for parks or other purposes (47 Stat. 1487, as amended);

(e) National Park Service areas--

(i) Lake Mead National Recreation Area (16 U.S.C. 460n et seq.);

(ii) Whiskeytown Unit of the Whiskeytown-Shasta-Trinity National

Recreation Area (16 U.S.C. 460q et seq.);

(iii) Glen Canyon National Recreation Area (16 U.S.C. 460dd et

seq.);

(f) Shasta-Trinity Units of the Whiskeytown-Shasta Trinity National

Recreation Area (16 U.S.C. 460q et seq.); and

(g) White Mountains National Recreation Area (16 U.S.C. 460mm-2

through 460mm-4).

When BLM last revised these regulations in 1986, they were written

into separate parts covering specific mineral commodities. Under that

organization, processes such as issuing exploration licenses and

mineral leases were addressed in a similar or identical manner under

each commodity section. This was designed to allow parties interested

in each commodity to look in only one part of the regulations to find

the provisions relating to their commodity. However, not all of the

leasing or permitting regulations were included with the commodity, and

the regulations were so extensive that the complete body of solid

mineral regulations occupied about 100 pages of the Code of Federal

Regulations (CFR).

As part of BLM's response to the Administration's regulatory

initiatives, we reviewed this extensive body of material and decided to

consolidate and to eliminate the repetitive language. BLM understands

that our readers want to be able to find particular subject matter

easily in our regulations. We believe that the plain English approach,

particularly the expanded table of contents, and the overall reduction

in volume of BLM regulations, will make it easy for readers to find

material that is of concern to them.

In addition to rewriting the regulations for clarity, BLM is making

the following substantive changes to the existing regulations:

1. We are eliminating the requirement to re-describe the lands in

an application if you have already properly described them and BLM has

issued you a previous authorization. Thus, for example, you will not

have to submit a land description when you apply for a preference right

lease or for an assignment if it relates to all the same lands

described in the prospecting permit or original lease. We will still

require land descriptions for assignments of parts of the land

described in the original prospecting permit or lease, and applicants

will still need to identify the permit or lease by serial number.

2. We have increased the State acreage limitation for potassium

leases. Current 43 CFR 3530.3 specifies that there is a per-State

acreage limitation of 51,200 acres for holders of potassium leases or

permits. BLM is increasing this limitation to 96,000 acres. As the

potash industry has matured, several mining operations are

consolidating. BLM believes that increasing the State acreage

limitation will enhance development of Federal reserves and help

achieve the statutory goal of ultimate maximum recovery.

[[Page 53513]]

3. We will now require you to submit three maps, instead of one,

with your preference right lease application. This is consistent with

other provisions in these regulations and with BLM's need for maps

during our review of these applications. While it is easy for BLM to

make copies of most application material, it is often difficult to

duplicate maps. Obtaining additional maps from you will speed up our

review.

4. We state that we will not approve assignments of leases or issue

or renew leases under these regulations to coal lessees and assignees

who are not in compliance with the diligence requirements for coal

leases found in section 2(a)2(A) of the Act (30 U.S.C. 201). This

provision incorporates current BLM practice into regulations, thus it

will not have any significant impact on the industry.

5. These regulations add a provision at 43 CFR 3502.42 specifying

that we will allow unqualified heirs to own a lease or permit for two

years. During this time they can either become qualified or divest the

interest.

6. This final rule eliminates provisions authorizing future

interest prospecting permits. BLM has rarely been called upon to issue

such permits, since the current mineral interest holder can explore for

minerals without a BLM permit until the mineral interest vests to the

United States. If the mineral holder does demonstrate the existence of

a valuable deposit of minerals before title transfers, we can issue

future interest leases to the present interest holder for these

minerals. We also added a provision to allow competitive bidding for

future interest leases if there is more than one qualified present

interest holder.

7. This rule clarifies that leases exchanged must be of equal,

rather than comparable, value. This change implements the provisions of

the Federal Land Exchange Facilitation Act of 1988 (Pub. L. 100-409),

which amended section 206 of FLPMA (43 U.S.C. 1716). The same Act also

provided the government and any applicant greater flexibility than did

previous requirements for making exchanges equal. We are incorporating

this provision into the regulations at 43 CFR 3515.22. Section 3515.12

states that the exchange-specific provisions of 43 CFR part 2200 apply.

8. This rule clarifies the definition of the term ``valuable

deposit.'' The current definition at 43 CFR 3500.0-5 is circular

because it uses the phrase ``valuable mine'' in describing the term

``valuable deposit.'' The new rule changes ``valuable mine'' to

``profitable mine.'' Accordingly, Sec. 3507.18, which describes the

information you must provide to us to prove that you have found a

valuable deposit, says that we may request supplemental data to

determine, among other things, mining and processing costs and the

profitability of mineral development.

9. BLM is modifying the requirements for applicants to disclose the

identity and citizenship of major stockholders to add the disclosure of

the percentage of their stock holdings. This change would help us

enforce acreage limitations against those stockholders. The rule also

eliminates a requirement found in the current rules to submit such

information on the basis of foreign residency. This information is not

needed to enforce any statutory limitations.

10. This rule clarifies that we can issue noncompetitive fringe

acre leases to extract sodium chloride to persons producing calcium

chloride from an existing mine, under an authorization issued under 43

CFR part 3800 for locatable minerals. This addresses an issue

restricted to a limited geographic area in California, where these two

minerals are commingled.

II. Final Rule as Adopted

The most significant change in these regulations is that they are

reorganized from several mineral-specific sections into sections based

on the type of authorization. Since the proposed rule we have made

slight changes to the organization, moving sections to put them in more

logical sequences and groupings. Although the table of contents in the

proposed rule divided section headers, in the form of questions, by

subparts, we added subheadings in the final rule to help you find what

you need more easily. We made this change because some of the subparts

contain many sections, and the long list of questions made it difficult

for readers to find what they need. Using the subheadings, you can

narrow down your search for the regulatory section you need more

quickly.

The following cross-reference chart lists every section of the

final rule and its origin in the existing rule. It also shows the

existing part 3500 and shows where it has been moved to in this final

rule.

------------------------------------------------------------------------

New 3500 Old 3500

------------------------------------------------------------------------

3501.1................................. New

3501.5................................. 3500.0-5

3501.10................................ New

3501.16................................ 3500.6

3501.17................................ 3500.7

3501.20................................ 3511.1

3512.9-2

3512.9-3

3521.1

3522.8-2

3531.1

3532.8-2

3532.9-3

3541.1

3542.8-2

3551.1

3552.8-2

3552.9-3

3561.1

3562.8-2

3562.9-3

3571.1

3501.30................................ 3500.4

3502.10................................ 3502.1

3502.13................................ 3502.1(b)

3502.15................................ 3500.3

3502.1(c)

3502.20................................ 3502.1(d)

3502.25................................ 3502.2-1

3502.26................................ 3502.2-1

3502.27................................ 3502.2-2

3502.28................................ 3502.2-3

3502.29................................ 3502.2-3

3502.30................................ 3502.2-4

3502.33................................ 3502.2-6

3502.34................................ 3502.3

3502.40................................ 3502.2-5(a)

3502.41................................ 3502.2-5(b)

3502.42................................ New

3503.10................................ New

3503.11................................ 3500.8

3503.12................................ 3542.1

3503.13................................ 3560.3-1

3560.3-2

3560.3-3

3560.3-4

3562.1

3503.14................................ 3570.2

3503.15................................ New, also in 3581

3503.16................................ New, also in 3586

3503.20................................ 3500.9-1

3507.4

3516.4

3523.2-2

3525.2

3526.4

3533.2-2

3535.2

3536.4

3543.2-2

3545.2

3546.4

3553.2-2

3555.2

3556.4

3564.2

3564.4

3574.2

3575.4

3503.21................................ 3500.9-2

3503.25................................ 3500.9-3

3503.28................................ 3511.7

3521.6

3541.6

3512.8-4

3521.5

3522.8-4

3531.6

3532.8-4

3541.5

3542.8-4

[[Page 53514]]

3551.6

3552.8-4

3561.5

3562.8-4

3571.5

3503.30................................ 3501.1-1

3501.1-2

3503.31................................ 3501.1-1(c)

3501.1-3

3503.32................................ 3501.1-2(b)

3503.33................................ 3501.1-1(a)

3501.1-2(a)

3503.36................................ 3501.1-1(d)

3503.37................................ 3510.3

3520.3

3530.3

3540.3

3550.3

3560.4

3570.4

3503.38................................ 3501.2

3503.40................................ 3500.5(a)

3503.41................................ 3500.5(b)

3504.11................................ 3503.1-1

3504.12................................ 3503.1-2

3504.12(a)(1).......................... 3506.2

3507.5

3512.3-1(c)

3516.3(b)

3517.1-1

3522.3-1(c)

3525.3-1(c)

3526.3(b)

3527.1-1

3528.1

3532.3-1(c)

3536.3(b)

3542.3-1(c)

3546.3(b)

3547.1

3552.3-1(c)

3556.3(b)

3562.3-1(c)

3565.3(b)

3575.3(b)

3576.1

3504.15................................ 3511.2-1(a)

3511.2-1(c)

3512.8-3

3521.2-1(a)

3522.8-3

3531.2-1(a)

3532.8-3

3541.2-1(a)

3542.8-3

3551.2-1(a)

3552.8-3

3561.2-1(a)

3562.8-3

3571.2-1(a)

3504.16................................ 3511.2-1(a)

3521.2-1(a)

3531.2-1(a)

3541.2-1(a)

3551.2-1(a)

3561.2-1(a)

3571.2-1(a)

3504.17................................ 3511.2-1(b)

3521.2-1(b)

3531.2-1(b)

3541.2-1(b)

3551.2-1(b)

3561.2-1(b)

3571.2-1(b)

3504.20................................ 3511.2-2

3521.2-2

3531.2-2

3541.2-2

3551.2-2

3561.2-2

3571.2-2

3504.21................................ 3503.2-1

3511.2-2

3521.2-2

3531.2-2

3541.2-2

3551.2-2

3561.2-2

3571.2-2

3504.22................................ 3503.2-1

3504.25................................ 3503.2-2

3504.26................................ 3503.2-3

3504.50................................ 3504.1-1

3504.1-4

3511.6

3512.7

3521.4

3522.7

3528.2

3531.5

3532.7

3541.4

3542.7

3547.2

3551.5

3552.7

3561.4

3566.2

3562.7

3571.4

3576.2

3504.51................................ 3504.1-2

3504.55................................ 3504.1-3

3504.56................................ 3504.1-5

3504.60................................ 3504.1-6

3504.65................................ 3504.2(a)

3504.66................................ 3504.2(b)

3504.70................................ 3504.3

3504.71................................ 3504.3

3505.10................................ 3507.1

3512.2

3522.2

3532.2

3542.2

3552.2

3560.5

3562.2

3505.12................................ 3560.7

3505.12................................ 3512.3-1

3522.3-1

3532.3-1

3542.3-1

3552.3-1

3562.3-1

3505.13................................ 3512.3-2

3522.3-2

3532.3-2

3542.3-2

3552.3-2

3562.3-2

3505.15................................ 3512.3-2(c)

3522.3-2(c)

3532.3-2(c)

3542.3-2(c)

3552.3-2(c)

3562.3-2(c)

3505.20................................ 3512.3-1(c)

3522.3-1(c)

3532.3-1(c)

3542.3-1(c)

3552.3-1(c)

3562.3-1(c)

3505.25................................ 3512.4

3512.5

3522.4

3522.5

3532.4

3542.5

3542.4

3552.4

3552.5

3562.4

3562.5

3505.30................................ 3512.5

3522.5

3532.5

3542.5

3552.5

3562.5

3505.31................................ 3512.6

3522.6

3532.6

3542.6

3552.6

3562.6

3505.40................................ 3512.3-3

3512.7

3522.3-3

3522.7

3532.3-3

3532.7

3542.3-3

3542.7

3552.3-3

3552.7

3562.3-3

3562.7

3505.45................................ 3512.3-3

3522.3-3

3532.3-3

3542.3-3

3552.3-3

3562.3-3

3505.50................................ 3512.3-4

3512.8-1

3522.3-4

3522.8-1

3532.3-4

3532.8-4

3542.3-4

3542.8-1

3552.3-4

3552.8-1

3562.3-4

3562.8-1

3505.51................................ 3512.3-4

3522.3-4

3532.3-4

3542.3-4

3552.3-4

3562.3-4

3505.55................................ 3512.8

3512.8-3

3522.8

3522.8-3

3532.8

3532.8-3

3542.8

3542.8-3

3552.8

3552.8-3

3562.8

[[Page 53515]]

3562.8-3

3505.60................................ 3512.8-1

3522.8-1

3532.8-1

3542.8-1

3552.8-1

3562.8-1

3505.61................................ 3512.9-1

3532.9-1

3552.9-1

3562.9-1

3505.62................................ 3512.9-1

3532.9-1

3552.9-1

3562.9-1

3505.64................................ 3512.9-2(a)

3532.9-2(a)

3552.9-2(a)

3562.9-2(a)

3505.65................................ 3512.9-2(b)

3532.9-2(b)

3552.9-2(b)

3562.9-2(b)

3505.66................................ 3512.9-3

3532.9-3

3552.9-3

3562.9-3

3505.70................................ 3509.1-1

3505.75................................ 3509.2

3505.80................................ 3509.3-1

3505.85................................ 3509.4-1

3506.10................................ 3514.1

3524.1

3534.1

3544.1

3554.1

3506.11................................ 3514.2

3514.3

3524.2

3524.3

3534.2

3534.3

3544.2

3544.3

3554.2

3554.3

3506.12................................ 3514.4

3514.4-2

3524.4

3524.4-2

3534.4

3534.4-2

3544.4

3544.4-2

3554.4

3554.4-2

3512.1

3522.1

3532.1

3552.1

3506.13................................ 3514.4-1

3524.4-1

3534.4-1

3544.4-1

3554.4-1

3506.14................................ 3514.4-3

3524.4-3

3534.4-3

3544.4-3

3554.4-3

3506.15.............................. 3514.4-4

3524.4-4

3534.4-4

3544.4-4

3554.4-4

3506.20................................ 3514.6

3524.6

3534.6

3544.6

3554.6

3506.25................................ 3514.5

3524.5

3534.5

3544.5

3554.5

3507.11................................ 3513.3

3523.3

3533.3

3543.3

3553.3

3563.3

3507.15................................ 3513.1-1

3523.1-1

3533.1-1

3543.1-1

3553.1-1

3563.1-1

3507.16................................ 3513.1-1(c)

3523.1-1(c)

3533.1-1(c)

3543.1-1(c)

3553.1-1(c)

3563.1-1(b)

3507.17................................ 3513.1-2

3523.1-2

3533.1-2

3543.1-2

3553.1-2

3563.1-2

3507.18................................ 3513.2-1

3523.2-1

3533.2-1

3543.2-1

3553.2-1

3563.2-1

3507.19................................ 3513.4

3523.4

3533.4

3543.4

3553.4

3563.4

3507.20................................ 3513.4(b)

3513.4(c)

3523.4(b)

3523.4(c)

3533.4(b)

3533.4(c)

3543.4(b)

3543.4(c)

3553.4(b)

3553.4(c)

3563.4(b)

3563.4(c)

3508.11................................ 3515.1

3525.1

3535.1

3545.1

3555.1

3564.1

3574.1

3508.12(a)............................. 3515.1

3525.1

3535.1

3545.1

3555.1

3564.1

3574.1

3508.12(b)............................. 3515.3-1

3525.3-1

3535.3-1

3545.3-1

3555.3-1

3564.3-1

3574.3-1

3508.12(c)............................. 3515.5

3525.5

3535.5

3545.5

3555.5

3564.5

3574.5

3508.14................................ 3515.3-1

3525.3-1

3535.3-1

3545.3-1

3555.3-1

3564.3-1

3574.3-1

3508.15................................ 3515.3-2

3525.3-2

3535.3-2

3545.3-2

3555.3-2

3564.3-2

3574.3-2

3508.16................................ 3515.3-3

3525.3-3

3535.3-3

3545.3-3

3555.3-3

3564.3-3

3574.3-3

3508.20................................ 3515.4

3525.4

3535.4

3545.4

3555.4

3564.4

3574.4

3508.21................................ 3515.5

3525.5

3535.5

3545.5

3555.5

3564.5

3574.5

3508.22................................ 3515.6

3525.6

3535.6

3545.6

3555.6

3564.6

3574.6

3509.10................................ 3507.1-2

3509.11................................ 3507.1-2

3509.12................................ 3507.7-2

3509.12................................ 3507.6

3509.15................................ 3507.1-2(b)

3509.16................................ 3507.2

3507.5

3507.9

3509.17................................ 3507.2

3507.7-2

3509.18................................ New

3509.20................................ 3507.8

3509.25................................ 3507.9

3509.30................................ New

3509.40................................ 3507.1-1

3509.41................................ 3507.1-1

3507.1-2(a)

3509.45................................ 3507.6

3507.7-1

[[Page 53516]]

3509.46................................ 3507.2

3507.5

3509.47................................ 3507.6

3507.7-1

3507.7-2

3509.48................................ New

3509.49................................ 3507.3

3509.50................................ 3507.9(b)

3509.51................................ New

3510.11................................ 3516.1

3516.2(a)

3526.1

3526.2(a)

3536.1

3536.2(a)

3546.1

3546.2(a)

3556.1

3556.2(a)

3565.1

3565.2(a)

3575.1

3575.2(a)

3510.12................................ 3516.3

3526.3

3536.3

3546.3

3556.3

3565.3

3575.3

3510.15................................ 3516.2

3516.2(b)

3526.2

3526.2(b)

3536.2

3536.2(b)

3546.2

3546.2(b)

3556.2

3556.2(b)

3565.2

3565.2(b)

3575.2

3575.2(b)

3510.20................................ 3516.3(a)

3516.5

3526.3(a)

3526.5

3536.3(a)

3536.5

3546.3(a)

3546.5

3556.3(a)

3556.5

3565.3(a)

3565.5

3575.3(a)

3575.5

3510.21................................ 3516.6

3526.6

3536.6

3546.6

3556.6

3565.6

3575.6

3511.10................................ 3511.5

3521.1

3531.1

3511.11................................ New

3511.15................................ 3511.3

3521.3

3531.3

3541.3

3551.3

3561.3

3571.3

3511.25................................ 3511.4(a)

3528

3531.4(a)

3547

3551.4(a)

3566

3576

3511.25(b)............................. 3528.3

3547.3

3566.1

3566.3

3576.3

3511.26................................ 3511.4(b)

3531.4(b)

3551.4(b)

3511.27................................ 3528.3

3547.3

3566.1

3576.3

3511.28................................ New

3511.30................................ 3511.4(c)

3531.4(c)

3551.4(c)

3512.11................................ 3506.1

3512.12................................ 3506.2

3512.13................................ 3506.1-3

3512.16................................ 3506.1-3

3512.17................................ 3506.3-2

3512.18................................ 3506.4

3506.5-1

3512.19................................ 3506.3-3

3512.25................................ 3506.5-2

3506.6

3512.30................................ 3506.5-2

3512.33................................ 3506.5-2

3506.7

3513.11................................ 3503.2-4(a)

3513.12................................ 3503.2-4(a)

3513.15................................ 3503.2-4(b)

3513.20................................ 3503.3-1

3513.21................................ 3503.3-1(c)

3503.3-1(d)

3503.3-1(e)

3513.22................................ 3503.3-1(b)

3513.25................................ 3503.3-1(d)

3513.26................................ 3503.3-1(d)

3513.30................................ 3503.3-2(a)

3513.31................................ 3503.3-2(c)

3503.3-2(d)

3503.3-2(e)

3513.32................................ 3503.3-2(b)

3513.33................................ 3503.3-2(d)

3513.34................................ 3503.3-2(d)

3514.11................................ 3509.1-2

3514.12................................ 3509.1-2

3514.15................................ 3509.1-2

3514.20................................ 3509.1-2

3514.21................................ 3509.1-2

3514.25................................ 3509.3-2

3514.30................................ 3509.4-2

3514.31................................ 3509.4-2

3514.32................................ 3509.4-2

3514.50................................ 3509.4-3

3515................................... 3508.1

3515.10................................ 3508.0-1

3515.12................................ 3508.0-7

3515.15................................ 3508.0-1

3515.18................................ 3508.1(a)

3508.2(a)

3515.20................................ 3508.0-1

3515.21................................ 3508.0-1

3515.22................................ New

3515.23................................ 3508.2(e)

3515.25................................ 3508.2(f)

3515.26................................ 3508.3(a)

3515.27................................ 3508.3(b)

3516.10................................ 3517.1

3527.1

3516.11................................ New

3516.12................................ 3517.1

3527.1

3516.15................................ 3517.1-1

3527.1-1

3516.16................................ 3517.1-3

3527.1-3

3516.20................................ 3517.1-2(a)

3527.1-2(a)

3516.30................................ 3517.1-2(b)

3527.1-2(b)

3517.10................................ 3567.1

3517.11................................ 3567.2

3517.15................................ 3567.3

3517.16................................ 3567.4

Unnumbered............................. 3500.0-3

Deleted................................ 3500.1

Deleted................................ 3500.2

Deleted................................ 3500.4

Deleted................................ 3510.0-3

Deleted................................ 3510.1

Deleted................................ 3510.2-1

Deleted................................ 3510.2-2

Deleted................................ 3511.8

Deleted................................ 3512.8-2

Deleted................................ 3513.2-2

Deleted................................ 3514.0-3

Deleted................................ 3517.2

Deleted................................ 3520.0-3

Deleted................................ 3520.1

Deleted................................ 3520.2-1

Deleted................................ 3520.2-2

Deleted................................ 3524.0-3

Deleted................................ 3527.2

Deleted................................ 3528.4

Deleted................................ 3530.0-3

Deleted................................ 3530.1

------------------------------------------------------------------------

------------------------------------------------------------------------

Old 3500 New 3500

------------------------------------------------------------------------

3500.0-3............................... Unnumbered

3500.0-5............................... 3501.5

3500.1................................. Deleted

3500.2................................. Deleted

3500.3................................. 3502.15

3500.4................................. 3501.30

3500.5(a).............................. 3503.40

3500.5(b).............................. 3503.41

3500.6................................. 3501.16

3500.7................................. 3501.17

3500.8................................. 3503.11

3500.9-1............................... 3503.20

3500.9-2............................... 3503.21

3500.9-3............................... 3503.25

3501.1-1............................... 3503.30

3501.1-1(a)............................ 3503.33

3501.1-1(d)............................ 3503.36

3501.1-1(c)............................ 3503.31

3501.1-2............................... 3503.30

3501.1-2(a)............................ 3503.33

3501.1-2(b)............................ 3503.32

3501.1-3............................... 3503.31

3501.2................................. 3503.38

3502.1................................. 3502.10

3502.1(b).............................. 3502.13

3502.1(c).............................. 3502.15

3502.1(d).............................. 3502.20

[[Page 53517]]

3502.2-1............................... 3502.25

3502.26

3502.2-2............................... 3502.27

3502.2-3............................... 3502.28

3502.29

3502.2-4............................... 3502.30

3502.2-5(a)............................ 3502.40

3502.2-5(b)............................ 3502.41

3502.2-6............................... 3502.33

3502.3................................. 3502.34

3503.1-1............................... 3504.11

3503.1-2............................... 3504.12

3503.2-1............................... 3504.21

3504.22

3503.2-2............................... 3504.25

3503.2-3............................... 3504.26

3503.2-4(a)............................ 3513.11

3513.12

3503.2-4(b)............................ 3513.15

3503.3-1............................... 3513.20

3503.3-1(b)............................ 3513.22

3503.3-1(c)............................ 3513.21

3503.3-1(d)............................ 3513.21

3513.25

3513.26

3503.3-1(e)............................ 3513.21

3503.3-2(a)............................ 3513.30

3503.3-2(b)............................ 3513.32

3503.3-2(c)............................ 3513.31

3503.3-2(d)............................ 3513.31

3513.33

3513.34

3503.3-2(e)............................ 3513.31

3504.1-1............................... 3504.50

3504.1-2............................... 3504.51

3504.1-3............................... 3504.55

3504.1-4............................... 3504.50

3504.1-5............................... 3504.56

3504.1-6............................... 3504.60

3504.2(a).............................. 3504.65

3504.2(b).............................. 3504.66

3504.3................................. 3504.70

3504.71

3506.1................................. 3512.11

3506.2................................. 3504.12(a)(1)

3512.12

3506.3-1............................... 3512.13

3512.16

3506.3-2............................... 3512.17

3506.3-3............................... 3512.19

3506.4................................. 3512.18

3506.5-1............................... 3512.18

3506.5-2............................... 3512.25

3512.30

3512.33

3506.6................................. 3512.25

3506.7................................. 3512.33

3507.1................................. 3505.10

3507.1-1............................... 3509.40

3509.41

3507.1-2............................... 3509.10

3509.11

3507.1-2(a)............................ 3509.41

3507.1-2(b)............................ 3509.15

3507.2................................. 3509.16

3509.17

3509.46

3507.3................................. 3509.49

3507.4................................. 3503.20

3507.5................................. 3504.12(a)(1)

3509.16

3509.46

3507.6................................. 3509.12

3509.45

3509.47

3507.7-1............................... 3509.45

3509.47

3507.7-2............................... 3509.17

3509.47

3507.8................................. 3509.20

3507.9................................. 3509.16

3509.25

3507.9(b).............................. 3509.50

3508.0-1............................... 3515.10

3515.15

3515.20

3515.21

3508.0-7............................... 3515.12

3508.1................................. 3515

3508.1(a).............................. 3515.18

3508.2(a).............................. 3515.18

3508.2(e).............................. 3515.23

3508.2(f).............................. 3515.25

3508.3(a).............................. 3515.26

3508.3(b).............................. 3515.27

3509.1-1............................... 3505.70

3509.1-2............................... 3514.11

3514.12

3514.15

3514.20

3514.21

3509.2................................. 3505.75

3509.3-1............................... 3505.80

3509.3-2............................... 3514.25

3509.4-1............................... 3505.85

3514.31

3514.32

3509.4-2............................... 3514.30

3514.31

3514.32

3509.4-3............................... 3514.50

3510.0-3............................... Deleted

3510.1................................. Deleted

3510.2-1............................... Deleted

3510.2-2............................... Deleted

3510.3................................. 3503.37

3511.1................................. 3501.20

3511.2-1(a)............................ 3504.15

3504.16

3511.2-1(b)............................ 3504.17

3511.2-1(c)............................ 3504.15

3511.2-2............................... 3504.20

3504.21

3511.3................................. 3511.15

3511.4(a).............................. 3511.25

3511.4(b).............................. 3511.26

3511.4(c).............................. 3511.30

3511.5................................. 3511.10

3511.6................................. 3504.50

3511.7................................. 3503.28

3511.8................................. Deleted

3512.1................................. 3508.11

3512.2................................. 3505.10

3512.3-1............................... 3505.12

3512.3-1(c)............................ 3504.12(a)(1)

3505.20

3512.3-2............................... 3505.13

3512.3-2(c)............................ 3505.15

3512.3-3............................... 3505.40

3505.45

3512.3-4............................... 3505.50

3505.51

3512.4................................. 3505.25

3512.5................................. 3505.25

3505.30

3512.6................................. 3505.31

3512.7................................. 3504.50

3505.40

3512.8................................. 3505.55

3512.8-1............................... 3505.50

3505.60

3512.8-2............................... Deleted

3512.8-3............................... 3504.15

3505.55

3512.8-4............................... 3503.28

3512.9-1............................... 3505.61

3505.62

3512.9-2............................... 3501.20

3512.9-2(a)............................ 3505.64

3512.9-2(b)............................ 3505.65

3512.9-3............................... 3501.20

3505.66

3513.1-1............................... 3507.15

3513.1-1(c)............................ 3507.16

3513.1-2............................... 3507.17

3513.2-1............................... 3507.18

3513.2-2............................... Deleted

3513.3................................. 3507.11

3513.4................................. 3507.19

3513.4(b).............................. 3507.20

3513.4(c).............................. 3507.20

3514.0-3............................... Deleted

3514.1................................. 3506.10

3514.2................................. 3506.11

3514.3................................. 3506.11

3514.4................................. 3506.12

3514.4-1............................... 3506.13

3514.4-2............................... 3506.12

3514.4-3............................... 3506.14

3514.4-4............................... 3506.15

3514.5................................. 3506.25

3514.6................................. 3506.20

3515.1................................. 3508.11

3508.12(a)

3515.3-1............................... 3508.12(b)

3508.14

3515.3-2............................... 3508.15

3515.3-3............................... 3508.16

3515.4................................. 3508.20

3515.5................................. 3508.12(c)

3508.21

3515.6................................. 3508.22

3516.1................................. 3510.11

3516.2................................. 3510.15

3516.2(a).............................. 3510.11

3516.2(b).............................. 3510.15

3516.3................................. 3510.12

3516.3(a).............................. 3510.20

3516.3(b).............................. 3504.12(a)(1)

3516.4................................. 3503.20

3516.5................................. 3510.20

3516.6................................. 3510.21

3517.1................................. 3516.10

3516.12

3517.1-1............................... 3504.12(a)(1)

3516.15

3517.2................................. Deleted

3517.1-2(a)............................ 3516.20

3517.1-2(b)............................ 3516.30

3517.1-3............................... 3516.16

3520.0-3............................... Deleted

3520.1................................. Deleted

3520.2-1............................... Deleted

3520.2-2............................... Deleted

3520.3................................. 3503.37

3521.1................................. 3501.20

3511.10

3521.2-1(a)............................ 3504.15

3521.2-1(a)............................ 3504.16

3521.2-1(b)............................ 3504.17

3521.2-2............................... 3504.20

3504.21

[[Page 53518]]

3521.3................................. 3511.15

3521.4................................. 3504.50

3521.5................................. 3503.28

3521.6................................. 3503.28

3522.1................................. 3508.11

3522.2................................. 3505.10

3522.3-1............................... 3505.12

3522.3-1(c)............................ 3504.12(a)(1)

3505.20

3522.3-2............................... 3505.13

3522.3-2(c)............................ 3505.15

3522.3-3............................... 3505.40

3505.45

3522.3-4............................... 3505.50

3505.51

3522.4................................. 3505.25

3522.5................................. 3505.25

3505.30

3522.6................................. 3505.31

3522.7................................. 3504.50

3505.40

3522.8................................. 3505.55

3522.8-1............................... 3505.50

3505.60

3522.8-2............................... 3501.20

3522.8-3............................... 3504.15

3505.55

3522.8-4............................... 3503.28

3523.1-1............................... 3507.15

3523.1-1(c)............................ 3507.16

3523.1-2............................... 3507.17

3523.2-2............................... 3503.20

3523.2-1............................... 3507.18

3523.3................................. 3507.11

3523.4................................. 3507.19

3523.4(b).............................. 3507.20

3523.4(c).............................. 3507.20

3524.0-3............................... Deleted

3524.1................................. 3506.10

3524.2................................. 3506.11

3524.3................................. 3506.11

3524.4................................. 3506.12

3524.4-1............................... 3506.13

3524.4-2............................... 3506.12

3524.4-3............................... 3506.14

3524.4-4............................... 3506.15

3524.5................................. 3506.25

3524.6................................. 3506.20

3525.1................................. 3508.11

3508.12(a)

3525.2................................. 3503.20

3525.3-1............................... 3508.12(b)

3508.14

3525.3-1(c)............................ 3504.12(a)(1)

3525.3-2............................... 3508.15

3525.3-3............................... 3508.16

3525.4................................. 3508.20

3525.5................................. 3508.12(c)

3508.21

3525.6................................. 3508.22

3526.1................................. 3510.11

3526.2................................. 3510.15

3526.2(a).............................. 3510.11

3526.2(b).............................. 3510.15

3526.3................................. 3510.12

3526.3(a).............................. 3510.20

3526.3(b).............................. 3504.12(a)(1)

3526.4................................. 3503.20

3526.5................................. 3510.20

3526.6................................. 3510.21

3527.1................................. 3516.10

3516.12

3527.1-1............................... 3504.12(a)(1)

3516.15

3527.1-2(a)............................ 3516.20

3527.1-2(b)............................ 3516.30

3527.1-3............................... 3516.16

3527.2................................. Deleted

3528................................... 3511.25

3511.27

3528.1................................. 3504.12(a)(1)

3528.2................................. 3504.50

3528.3................................. 3511.25(b)

3528.4................................. 3511.12

3530.0-3............................... Deleted

3530.1................................. Deleted

3530.2-1............................... Deleted

3530.2-2............................... Deleted

3530.3................................. 3503.37

3531.1................................. 3501.20

3511.10

3531.2-1(a)............................ 3504.15

3504.16

3531.2-1(b)............................ 3504.17

3531.2-2............................... 3504.20

3504.21

3531.3................................. 3511.15

3531.4(a).............................. 3511.25

3531.4(b).............................. 3511.26

3531.4(c).............................. 3511.30

3531.5................................. 3504.50

3531.6................................. 3503.28

3532.1................................. 3508.11

3532.2................................. 3505.10

3532.3-1............................... 3505.12

3532.3-1(c)............................ 3504.12(a)(1)

3505.20

3532.3-2............................... 3505.13

3532.3-2(c)............................ 3505.15

3532.3-3............................... 3505.40

3505.45

3532.3-4............................... 3505.50

3505.51

3532.4................................. 3505.25

3532.5................................. 3505.30

3532.6................................. 3505.31

3532.7................................. 3504.50

3505.40

3532.8................................. 3505.55

3532.8-1............................... 3505.60

3532.8-2............................... 3501.20

3532.8-3............................... 3504.15

3505.55

3532.8-4............................... 3503.28

3505.50

3532.9-1............................... 3505.61

3505.62

3532.9-2(a)............................ 3505.64

3532.9-2(b)............................ 3505.65

3532.9-3............................... 3501.20

3505.66

3533.1-1............................... 3507.15

3533.1-1(c)............................ 3507.16

3533.1-2............................... 3507.17

3533.2-1............................... 3507.18

3533.2-2............................... 3503.20

3533.3................................. 3507.11

3533.4................................. 3507.19

3533.4(b).............................. 3507.20

3533.4(c).............................. 3507.20

3534.0-3............................... Deleted

3534.1................................. 3506.10

3534.2................................. 3506.11

3534.3................................. 3506.11

3534.4................................. 3506.12

3534.4-1............................... 3506.13

3534.4-2............................... 3506.12

3534.4-3............................... 3506.14

3534.4-4............................... 3506.15

3534.5................................. 3506.25

3534.6................................. 3506.20

3535.1................................. 3508.11

3508.12(a)

3535.2................................. 3503.20

3535.3-1............................... 3508.12(b)

3508.14

3535.3-2............................... 3508.15

3535.3-3............................... 3508.16

3535.4................................. 3508.20

3535.5................................. 3508.12(c)

3508.21

3536.1................................. 3510.11

3536.2................................. 3510.15

3536.4................................. 3503.20

3536.5................................. 3510.20

3535.6................................. 3508.22

3536.2(a).............................. 3510.11

3536.2(b).............................. 3510.15

3536.3................................. 3510.12

3536.3(a).............................. 3510.20

3536.3(b).............................. 3504.12(a)(1)

3536.6................................. 3510.21

3540.0-3............................... Deleted

3540.1................................. Deleted

3540.2-1............................... Deleted

3540.2-2............................... Deleted

3540.3................................. 3503.37

3541.1................................. 3501.20

3541.2-1(a)............................ 3504.15

3504.16

3541.2-1(b)............................ 3504.17

3541.2-2............................... 3504.20

3504.21

3541.3................................. 3511.15

3541.4................................. 3504.50

3541.5................................. 3503.28

3541.6................................. 3503.28

3542.1................................. 3503.12

3542.2................................. 3505.10

3542.3-1............................... 3505.12

3542.3-1(c)............................ 3504.12(a)(1)

3505.20

3542.3-2............................... 3505.13

3542.3-2(c)............................ 3505.15

3542.3-3............................... 3505.40

3505.45

3542.3-4............................... 3505.50

3505.51

3542.4................................. 3505.25

3542.5................................. 3505.25

3505.30

3542.6................................. 3505.31

3542.7................................. 3504.50

3505.40

3542.8................................. 3505.55

3542.8-1............................... 3505.50

3505.60

3542.8-2............................... 3501.20

3542.8-3............................... 3504.15

3505.55

3542.8-4............................... 3503.28

3543.1-1............................... 3507.15

3543.1-1(c)............................ 3507.16

3543.1-2............................... 3507.17

3543.2-1............................... 3507.18

3543.2-2............................... 3503.20

3543.3................................. 3507.11

3543.4................................. 3507.19

3543.4(b).............................. 3507.20

3543.4(c).............................. 3507.20

3544.0-3............................... Deleted

3544.1................................. 3506.10

[[Page 53519]]

3544.2................................. 3506.11

3544.3................................. 3506.11

3544.4................................. 3506.12

3544.4-1............................... 3506.13

3544.4-2............................... 3506.12

3544.4-3............................... 3506.14

3544.4-4............................... 3506.15

3544.5................................. 3506.25

3544.6................................. 3506.20

3545.1................................. 3508.11

3508.12(a)

3545.2................................. 3503.20

3545.3-1............................... 3508.12(b)

3508.14

3545.3-2............................... 3508.15

3545.3-3............................... 3508.16

3545.4................................. 3508.20

3545.5................................. 3508.12(c)

3508.21

3545.6................................. 3508.22

3546.1................................. 3510.11

3546.2................................. 3510.15

3546.2(a).............................. 3510.11

3546.2(b).............................. 3510.15

3546.3................................. 3510.12

3546.3(a).............................. 3510.20

3546.3(b).............................. 3504.12(a)(1)

3546.4................................. 3503.20

3546.5................................. 3510.20

3546.6................................. 3510.21

3547................................... 3511.25

3511.27

3547.1................................. 3504.12(a)(1)

3547.2................................. 3504.50

3547.3................................. 3511.25(b)

3547.4................................. 3511.12

3550.0-3............................... Deleted

3550.1................................. Deleted

3550.2-1............................... Deleted

3550.2-2............................... Deleted

3550.3................................. 3503.37

3551.1................................. 3501.20

3551.2-1(a)............................ 3504.15

3504.16

3551.2-1(b)............................ 3504.17

3551.2-2............................... 3504.20

3504.21

3551.3................................. 3511.15

3551.4(a).............................. 3511.25

3551.4(b).............................. 3511.26

3551.4(c).............................. 3511.30

3551.5................................. 3504.50

3551.6................................. 3503.28

3551.7................................. Deleted

3552.1................................. 3508.11

3552.2................................. 3505.10

3552.3-1............................... 3505.12

3552.3-1(c)............................ 3504.12(a)(1)

3505.20

3552.3-2............................... 3505.13

3552.3-2(c)............................ 3505.15

3552.3-3............................... 3505.40

3505.45

3552.3-4............................... 3505.50

3505.51

3552.4................................. 3505.25

3552.5................................. 3505.25

3505.30

3552.6................................. 3505.31

3552.7................................. 3504.50

3505.40

3552.8................................. 3505.55

3552.8-1............................... 3505.50

3505.60

3552.8-3............................... 3504.15

3505.55

3552.8-2............................... 3501.20

3552.8-4............................... 3503.28

3552.9-1............................... 3505.61

3505.62

3552.9-2(a)............................ 3505.64

3552.9-2(b)............................ 3505.65

3552.9-3............................... 3501.20

3505.66

3553.1-1............................... 3507.15

3553.1-1(c)............................ 3507.16

3553.1-2............................... 3507.17

3553.2-2............................... 3503.20

3553.2-1............................... 3507.18

3553.3................................. 3507.11

3553.4................................. 3507.19

3553.4(b).............................. 3507.20

3553.4(c).............................. 3507.20

3554.0-3............................... Deleted

3554.1................................. 3506.10

3554.2................................. 3506.11

3554.3................................. 3506.11

3554.4................................. 3506.12

3554.4-1............................... 3506.13

3554.4-3............................... 3506.14

3554.4-2............................... 3506.12

3554.4-4............................... 3506.15

3554.5................................. 3506.25

3554.6................................. 3506.20

3555.1................................. 3508.11

3508.12(a)

3555.2................................. 3503.20

3555.3-1............................... 3508.12(b)

3508.14

3555.3-2............................... 3508.15

3555.3-3............................... 3508.16

3555.4................................. 3508.20

3555.5................................. 3508.12(c)

3508.21

3555.6................................. 3508.22

3556.1................................. 3510.11

3556.2................................. 3510.15

3556.2(a).............................. 3510.11

3556.2(b).............................. 3510.15

3556.3................................. 3510.12

3556.3(a).............................. 3510.2

3556.3(b).............................. 3504.12(a)(1)

3556.4................................. 3503.20

3556.5................................. 3510.20

3556.6................................. 3510.21

3560.0-3............................... Deleted

3560.1................................. Deleted

3560.2-1............................... Deleted

3560.2-2............................... Deleted

3560.3-1............................... 3503.13

3560.3-2............................... 3503.13

3560.3-3............................... 3503.13

3560.3-4............................... 3503.13

3560.4................................. 3503.37

3560.5................................. 3505.10

3560.6................................. 3501.16

3560.7................................. 3505.12

3561.1................................. 3501.20

3561.2-1(a)............................ 3504.15

3504.16

3561.2-1(b)............................ 3504.17

3561.2-2............................... 3504.20

3504.21

3561.3................................. 3511.15

3561.4................................. 3504.50

3561.5................................. 3503.28

3561.6................................. Deleted

3562.1................................. 3503.13

3562.2................................. 3505.10

3562.3-1............................... 3505.12

3562.3-1(c)............................ 3504.12(a)(1)

3505.20

3562.3-2............................... 3505.13

3562.3-2(c)............................ 3505.15

3562.3-3............................... 3505.40

3505.45

3562.3-4............................... 3505.50

3505.51

3562.4................................. 3505.25

3562.5................................. 3505.25

3505.30

3562.6................................. 3505.31

3562.7................................. 3504.50

3505.40

3562.8................................. 3505.55

3562.8-1............................... 3505.50

3505.60

3562.8-2............................... 3501.20

3562.8-3............................... 3504.15

3505.55

3562.8-4............................... 3503.28

3562.9-1............................... 3505.61

3505.62

3562.9-2(a)............................ 3505.64

3562.9-2(b)............................ 3505.65

3562.9-3............................... 3501.20

3505.66

3563.1-1............................... 3507.15

3563.1-1(b)............................ 3507.16

3563.1-2............................... 3507.17

3563.2-1............................... 3507.18

3563.3................................. 3507.11

3563.4................................. 3507.19

3563.4(b).............................. 3507.20

3563.4(c).............................. 3507.20

3564.1................................. 3508.11

3508.12(a)

3564.2................................. 3503.20

3564.3-1............................... 3508.12(b)

3508.14

3564.3-2............................... 3508.15

3564.3-3............................... 3508.16

3564.4................................. 3508.20

3564.5................................. 3508.12(c)

3508.21

3564.6................................. 3508.22

3565.1................................. 3510.11

3565.2................................. 3510.15

3565.2(a).............................. 3510.11

3565.2(b).............................. 3510.15

3565.3................................. 3510.12

3565.3(a).............................. 3510.20

3565.3(b).............................. 3504.12(a)(1)

3565.4................................. 3503.20

3565.5................................. 3510.20

3565.6................................. 3510.21

3566................................... 3511.25

3511.27

3566.1................................. 3511.25(b)

3566.2................................. 3504.50

3566.3................................. 3511.25(b)

3566.4................................. 3511.12

3567.1................................. 3517.10

3567.2................................. 3517.11

3567.3................................. 3517.15

3567.4................................. 3517.16

3570.0-3............................... Deleted

3570.1................................. Deleted

3570.2................................. 3503.14

3570.3................................. Deleted

3570.4................................. 3503.37

3571.1................................. 3501.20

[[Page 53520]]

3571.2-1(a)............................ 3504.15

3504.16

3571.2-1(b)............................ 3504.17

3571.2-2............................... 3504.20

3504.21

3571.3................................. 3511.15

3571.4................................. 3504.50

3571.5................................. 3503.28

3571.6................................. Deleted

3574.1................................. 3508.11

3508.12(a)

3574.2................................. 3503.20

3574.3-1............................... 3508.12(b)

3508.14

3574.3-2............................... 3508.15

3574.3-3............................... 3508.16

3574.4................................. 3508.20

3574.5................................. 3508.12(c)

3508.21

3574.6................................. 3508.22

3575.1................................. 3510.11

3575.2................................. 3510.15

3575.2(a).............................. 3510.11

3575.2(b).............................. 3510.15

3575.3................................. 3510.12

3575.3(a).............................. 3510.20

3575.3(b).............................. 3504.12(a)(1)

3575.4................................. 3503.20

3575.5................................. 3510.20

3575.6................................. 3510.21

3576................................... 3511.25

3511.27

3576.1................................. 3504.12(a)(1)

3576.2................................. 3504.50

3576.3................................. 3511.25(b)

3576.4................................. 3511.12

New.................................... 3501.1

New.................................... 3501.10

New.................................... 3502.42

New.................................... 3503.10

New.................................... 3503.42

New.................................... 3503.43

New.................................... 3503.44

New.................................... 3503.45

New.................................... 3503.46

New.................................... 3509.18

New.................................... 3509.30

New.................................... 3509.48

New.................................... 3509.51

New.................................... 3511.11

New.................................... 3511.28

New.................................... 3515.22

New.................................... 3516.11

New.................................... 3503.15

also in 3581

New.................................... 3503.16

also in 3586

------------------------------------------------------------------------

Subpart 3501--General Provisions

This subpart deals with introductory matters, general

considerations, definitions, and appeals. We expanded the authorities

section. Section 3501.1 discusses the scope of the regulations, which

apply to minerals leased by the BLM.

Section 3501.5 is the definitions section. This section lists those

terms which are specific to leasing of solid minerals. We made several

changes to this section.

We dropped the definition of the term ``Act'' because it was not

needed. We added a definition for the term ``acquired lands.'' We

modified the definition of ``hardrock minerals'' to make the meaning

more clear. We kept the definition used in the proposed rule for

``valuable deposit,'' which is discussed more in the Responses to

Comments section below.

Section 3501.10 describes the different types of authorizations BLM

can issue under these regulations. Here, we define what each

authorization is, and list them in the order they occur during

development, to give the reader a short road map through the entire

mineral development process. The section begins with prospecting

permits, which allow exploration for minerals on public lands where no

known deposit exists. Next are exploration licenses, which also allow

exploration of lands where there are known deposits. After that comes

preference right leases, which you could receive if you discover

certain mineral deposits during your prospecting permit. Following that

are competitive leases, which BLM issues for known deposits. Next are

fringe acreage leases, which lease known deposits under special

circumstances. This is followed by lease modifications which add land

to existing leases, and use permits that provide land to support

certain permits and leases.

Section 3501.16 lists some of the general conditions and terms of

your permit or lease. There are two particularly important aspects of

this section. First, it tells you that a permit or lease gives you an

exclusive interest in the minerals covered by your permit or lease, but

not the lands. We can issue additional leases, permits and rights-of-

way for lands where minerals are leased. Second, this section discusses

how we regulate development of multiple leases on the same parcel.

The remaining sections in this part point out that authorizations

are subject to other laws and regulations, such as NEPA, BLM land use

plans, and BLM and Departmental appeal regulations.

Subpart 3502--Qualification Requirements

Subpart 3502 sets out who may hold a permit or lease. There are

several limitations on who may hold an authorization. For example, as

required by statute, we require the lessee or permittee to be an adult

citizen of the United States who is in compliance with the MLA on all

other leases. Also, to prevent conflicts of interest, there are

restrictions on government officials. There are also acreage

limitations in subpart 3503.

Sections 3502.25-30 discuss how you show your qualifications to

hold a lease. These sections discuss where to file information, and

what to submit depending on whether you are an individual, an

association or partnership, a guardian or trustee of a trust, or a

corporation.

The remaining sections address some peripheral concerns related to

lease qualifications. For example, if an applicant dies before we

processes the application, we may issue the lease to the applicant's

heirs, or to the executor of the applicant's estate if the estate has

not been settled. BLM may also recognize an heir as the record title

holder of a permit or lease if the permit or lease holder dies. In all

cases, however, the person assuming ownership of the lease must be

qualified to hold a lease. If they are not, we will allow no more than

two years for them to become qualified or divest their interest.

Subpart 3503--Areas Available for Leasing

This subpart concerns which areas are available for leasing. There

are several types of land that are unavailable for leasing, such as

lands acquired for development of fissionable materials, wilderness

areas, and lands within incorporated cities. Sections 3503.10 and

3503.11 list lands which are not available for any mineral leasing

activity. The next four sections set out which areas are generally

available for leasing sulphur, hardrock minerals, asphalt, gold and

silver.

Generally, lands within a designated wilderness or wilderness study

area are unavailable for leasing. The Wilderness Act, 16 U.S.C. 1131 et

seq., prohibits commercial enterprise within designated wilderness

areas, except for prior existing rights (16 U.S.C. 1133(c)). Wilderness

study areas are managed under the interim management standards which

prohibit all activities which would impair their suitability for

wilderness designation; this typically precludes mineral leasing

activity. BLM manages all other areas being considered for possible

wilderness study in accordance with the applicable land use plan.

Since BLM drafted the proposed rule, President Clinton has

designated the Grand Staircase-Escalante National Monument, and under

the Monument's terms the BLM lands contained in it are no longer

available for leasing. We added the new Monument to the list of

unavailable lands in Sec. 3503.11. We also added another sentence in

Sec. 3503.11(k) to remind the reader that any other

[[Page 53521]]

lands which are withdrawn from mineral leasing are also unavailable.

Sections 3503.20 through 3503.28 set out the rules for leasing

minerals that underlie lands managed by another Federal agency, private

owner, or non-Federal political subdivision or charitable organization.

When a separate surface owner is involved, we will consult with them,

and, if required, obtain their consent before issuing a mineral lease.

In many cases, we may insert special stipulations into the lease to

satisfy the surface owner's or surface managing agency's concerns.

Where BLM is required by law to obtain another agency's consent, we

will accept the stipulations they require. In other situations, we will

consider the surface owner's or surface management agency's

recommendations and accept those which we believe are appropriate.

The next several sections (3503.30-.33) concern land descriptions.

You must describe the lands you wish to lease in your application, but

there are several different ways to describe land. If the land has been

surveyed as part of the Public Lands Survey System, you must describe

it by legal subdivision (section, township and range). If it has not

been surveyed but is located in a Public Lands Survey System state and

is part of a protraction diagram or amended protraction diagram, you

must describe the land by legal subdivision. If the land is unsurveyed

and not shown on a protraction diagram or amended protraction diagram,

you must describe the lands by metes and bounds tied to a survey

corner. If the lands are acquired lands, you may use the description

shown on the deed that conveyed title to the United States. Finally,

Sec. 3503.33 reminds the reader that BLM will only issue leases for

lands that have been officially surveyed to BLM standards. If you seek

a permit or lease on unsurveyed lands, we will require you to pay for a

survey. We will pay for the survey if we initiate the competitive

leasing process.

The next subgroup consists of three limitations on the acreage and

dimensions of the lands you seek to lease. First, the minimum size for

a lease is generally a quarter-quarter section, or a lot. The leased

lands must also be in reasonably compact form, not scattered and

difficult to manage. The chart at Sec. 3503.37 shows the maximum lease

acreage for each commodity. This includes limits on the size of the

individual lease, and limits on the total number of acres you have

leased from BLM in a single state (or nationwide, in the case of

phosphate).

The only change in this chart from the proposed rule is the

provision that the state acreage limit for potassium leases is now

96,000 acres. We made this change in response to comments received on

the proposed rule. See responses to comments below.

Calculating your total acreage holdings is simple when you own your

lease outright, but if you own a lease through stock ownership or other

instruments, BLM will calculate your acreage holdings as a proportion

of your ownership interest. For example, if you own a 50% interest in a

lease of 800 acres, we will charge 400 acres toward your total personal

acreage holdings. Corporate lease holdings will only count against your

personal acreage holdings if you own at least ten percent of the

corporation holding the leases. In these instances, we will count the

same acreage against both the corporation's holdings and your personal

holdings, in proportion with your ownership interest. We believe this

is necessary to prevent people from using the corporate form to avoid

the acreage limitations.

Finally, sections 3503.40 through 3503.46 instruct you where to

file your application and other necessary documents, and inform you

that the information you submit could be released to the public under

the Freedom of Information Act (5 U.S.C. 552 et seq.) (FOIA). Since the

proposed rule was published, BLM has issued a rule to make all of our

FOIA information uniform. The FOIA rule, published in the Federal

Register on October 1, 1998 (63 FR 52946), amended these regulations by

adding detailed information about how BLM decides to release or

withhold information under the FOIA. In order to keep this rule

consistent with other BLM regulations, we added Secs. 3503.42 through

3503.46 to conform to the FOIA regulations.

We will generally release information under FOIA to the extent that

the law allows. If you believe the information you submit to us should

be kept confidential, you should indicate this by clearly marking the

information as confidential. However, BLM must make the final decision,

because the FOIA requires us to determine under the law whether

information is exempt from release before we can withhold it.

Subpart 3504--Fees, Rental, Royalty and Bonds

This subpart outlines your obligations to BLM under your lease. We

made several minor changes from the proposed rule in order to clarify

these requirements.

The first three sections distinguish between payments to BLM and

those made to the Minerals Management Service (MMS), and set out filing

fees. BLM only receives filing fees, first year rentals and bonus bids;

you should make all subsequent rental, royalty and other payments to

MMS.

The next three sections discuss rental rates and due dates. One

situation that caused some confusion is the rental due date after the

first year of the lease. BLM will maintain the previous system, where

in the case of sodium, potassium and asphalt, rentals are due before

January 1 of each year, while for other minerals rental is due before

the anniversary of the lease's effective date. We had proposed a

simpler system which would use anniversary dates for all minerals, but

several commenters pointed out that this contradicts statutory law.

Therefore, we will use the January 1 due date for sodium, potassium and

asphalt, and the lease anniversary date for other minerals.

The following sections discuss royalties. Each lease will contain

its own royalty provisions, but the regulations set out the minimum

royalty at Sec. 3504.21. The regulations also permit you to create

overriding royalties. However, if your overriding royalties become too

large, to the point where they could pressure you to forego development

opportunities under your lease, BLM may order you to suspend or reduce

the overriding royalty. Furthermore, if at any time you seek a royalty

reduction, we may require you to reduce your overriding royalty

payments first. We will not allow overriding royalties to exceed 50% of

the amount of the reduced royalty.

The rest of this subpart focuses on bonding requirements. BLM

requires a bond in all cases, and determines the amount of the bond on

a case-by-case basis. The bond amount is based on our estimate of the

cost to comply with all terms and conditions of the lease. This

includes the cost to stabilize and reclaim the areas to be disturbed

under your lease or permit. We will accept personal bonds in any one of

several forms, or surety bonds from qualified surety companies. You may

also cover several leases with a single bond, or file statewide or

nationwide bonds to cover several obligations at once.

Your bond must always provide full coverage for any activities you

pursue. If you default on any of your permit or lease obligations, BLM

may take payment from your bond and, if necessary, require you to

restore your bond to the amount needed to provide full coverage. If you

fail to restore your bond, we may seek to cancel your permit or lease.

We will only terminate your bond's period of liability when it has been

replaced by another bond or you have fulfilled all your permit or

[[Page 53522]]

lease terms and conditions. Finally, terminating the period of

liability does not end the bond obligations; we will release your bond

when all terms and conditions are met, the site is reclaimed, all

payments are made, and a reasonable period of time has passed to assure

us that you have effectively reclaimed the land.

Subpart 3505--Prospecting Permits

Prospecting permits are available when you are contemplating

commercial mineral development under the mineral leasing program in

areas where there is no known mineral deposit. Obtaining a prospecting

permit is the first step to development under a preference right lease.

If you use a prospecting permit to explore an area where no known

mineral deposit exists and you discover a valuable deposit of the

mineral covered by your permit, you may be entitled to a preference

right lease to develop that mineral deposit.

You do not need a prospecting permit to collect mineral specimens

for your hobby, recreational, educational or other similar non-

commercial purposes. You can find BLM's regulations for non-commercial

mineral specimen collecting at 43 CFR part 8360.

Prospecting permits are required when you are exploring an area for

commercial development. Because prospecting permits may entitle you to

a preference right lease, they are not available in areas where BLM has

identified a known mineral deposit. These areas are leased

competitively and can only be explored prior to leasing under an

exploration license. Prospecting permits are not available for asphalt.

Sections 3505.12 through 3505.51 discuss how to apply for a

prospecting permit. Because a prospecting permit may entitle you to a

preference right lease, we will not issue prospecting permits to anyone

who would not be qualified to hold a lease. Therefore, all the

qualification requirements of subpart 3502, including the acreage

limitations, apply to prospecting permits.

You may amend or withdraw your permit application after you file it

but before we issue you a permit. BLM considers permit applications on

a first-come, first-served basis, meaning that the first application we

receive has priority. If you amend your application, you do not need to

send an additional filing fee, but if your amendment adds lands to be

covered by the permit, your priority to those additional lands will be

as of the date of the amendment, not the date of the original

application. Your application must include the first year's rental, and

a detailed exploration plan.

We will notify you if your permit application has been accepted or

rejected. If we reject your permit application, we will state our

reasons for doing so in detail, and describe how you may appeal. If we

rejected your application because of something which can be corrected,

we will give you 30 days to correct the error and refile your

application. You do not have to refile the application fee and first-

year rental payment with your corrected application. Filing fees are

non-refundable, but if we reject any portion of your application we

will return your rental payment covering the rejected areas.

Prospecting permits are limited to their express terms. Therefore,

you can only use your prospecting permit for the time, area and

minerals identified in your permit. All prospecting permits are valid

for two years, though BLM can extend potassium and gilsonite permits

for an additional two years and phosphate and hardrock mineral

prospecting permits for up to four years. BLM cannot extend permits for

sodium and sulphur. We generally will only extend your permit if you

have been diligently exploring the area and need more time to discover

a valuable deposit, though exceptions may be made if unusual

circumstances delayed your exploration efforts.

You can relinquish your permit in whole or in part if BLM approves

your relinquishment, you have complied with all the permit

requirements, and if your rental payments are up to date. We may cancel

your permit if you fail to make timely rental payments, or if your

exploration activities violate any law, regulation, or condition of

your permit. If your permit is relinquished or canceled, in whole or in

part, you will not be entitled to a preference right lease on those

lands.

Subpart 3506--Exploration Licenses

Exploration licenses, covered by subpart 3506, allow you to gather

information about a mineral resource prior to seeking a lease. BLM

grants these licenses to explore areas with known mineral deposits. BLM

leases known mineral deposits through a competitive bidding process;

therefore, your exploration license will not give you any preference or

right to a lease. You may want an exploration license if you are

considering entering a bid for an area and you need more information

about the resource in order to prepare your bid.

The first several sections of subpart 3506 describe how to obtain

an exploration license. To apply, you need to submit an exploration

plan and a request (in no specific form) for an exploration license.

Your exploration plan must include the same information contained in 43

CFR 3505.45 as exploration plans in support of prospecting permits.

BLM makes decisions to issue exploration licenses under the general

regulations for leases, permits and easements at 43 CFR part 2920. Once

we approve your exploration plan, we will prepare a notice of

exploration which you must publish for three weeks in a local newspaper

in the area where the lands covered by the license are located. The

notice, which will include your plan, will invite other interested

parties to participate with you in the exploration. They must share

costs with you on a pro-rata basis.

Your exploration license is not intended to give you exclusive

access to information which is critical to preparing your bid, or any

other preference. For competitive leasing, all bidders should have

access to the same information about the resource, so that competition

will be completely fair. We may require that you allow other interested

parties to join you in the exploration activities under your license,

provided they pay their pro-rata share of the costs. Sections 3506.12

through 3506.14 discuss the notice of exploration contents and process.

Several things can happen if one or more parties respond to the

notice of exploration and notify BLM that they wish to be included. If

all parties agree with the exploration plan as approved, the parties

may simply devise a way to share the costs and BLM will issue the

license. If the interested parties disagree on the exploration plan,

the parties need to agree on any changes to be made, and BLM will have

to assess the environmental impacts posed by any changes to the plan

before we can issue the license.

Once BLM issues your exploration license, you may make changes to

your exploration plan, and you may remove lands from your exploration

license at any time, subject to BLM's approval. However, you may not

add lands to your exploration license. We must provide for public

involvement and environmental assessment before we can make lands

available for exploration under a license. Therefore, if you wish to

add lands to your license, you need to submit a new application.

While conducting your exploration, you must share with us any data

you gather. BLM will consider this information confidential, as

explained in Sec. 3506.25, until the lands are leased

[[Page 53523]]

or unless we determine under the FOIA that the information is not

exempt from disclosure. We require that you share this information with

us because all information is valuable to us in making sound management

decisions. We will not share this information with other potential

bidders or the public unless we are required to do so by law. While we

feel the fairest system of competitive bidding requires us to give

parties equal access to information, we do not think it is fair to

require one party to share the data at no cost to other parties after

having acquired this data at considerable expense. BLM feels that this

system, where parties can join in on the exploration but where we will

not freely divulge the exploration's results, is the fairest to all

participants.

Subpart 3507--Preference Right Lease Applications

If you discover a valuable deposit of a leasable mineral while

exploring under a prospecting permit, you may be entitled to a

preference right lease. This subpart discusses how you may apply for

and obtain a preference right lease for all leasable minerals except

asphalt, which is only leased competitively or under a fringe acreage

lease. See subpart 3508 for competitive leases, and subpart 3510 for

fringe acreage leases.

The requirements for obtaining a preference right lease, set out in

Sec. 3507.11, are fairly simple: if you have been exploring an area

under a prospecting permit and you believe you have discovered a

valuable deposit of the mineral covered by your permit, you need to

submit a complete preference right lease application in a timely

manner, along with your first year's rent. We will review your

application in order to verify that all of the terms and conditions of

your permit have been met. We also need to verify that you have

discovered a valuable deposit during the term of your permit.

BLM must also determine that the lands are chiefly valuable for

development of the specified mineral before we can issue a preference

right lease for sodium, potassium or sulphur. We may reject your

application for a preference right lease if your prospecting permit was

granted under the authority of Reorganization Plan No. 3 and we find,

after careful analysis, that mining is not the preferred use of the

lands in the application.

You may submit your preference right lease application any time

during the life of the prospecting permit or within 60 days after the

permit expires. If you apply for a lease more than 60 days after your

permit expires, BLM will reject your preference right lease

application.

These regulations describe the application contents at 43 CFR

3507.17. While there is no set application form, you must submit:

information showing that you are qualified to hold a lease (under

subpart 3502); maps of your proposed mining operations and facilities;

a written description of your proposed operations, including the method

of mining and the relationship between your operation and any other(s)

on adjacent lands; information which shows that you have discovered a

valuable deposit; and a legal description of the lands to be leased, if

different from the lands in your prospecting permit. You need not lease

all the lands covered by your prospecting permit, but all the land you

wish to lease must have been part of the permit.

To prove you have found a valuable deposit, you must provide BLM

information about any core or test holes, samples and cuttings you

collected at the site, as set out in 43 CFR 3593.1. BLM will determine

if there is a reasonable prospect of success in developing a profitable

mine from this information, though we may request additional

information to complete our findings.

BLM will grant you a lease unless:

You have not shown a valuable deposit exists;

Your application is late, incomplete, or otherwise

deficient;

You are seeking a lease for sodium, potassium or sulphur

and BLM determines that the lands at issue are not chiefly valuable for

that mineral; or

We issued the prospecting permit under the authority of

Reorganization Plan No. 3 and we determine that mining is not the

preferred use of the land.

You must also have complied with all of the terms and conditions of

the prospecting permit. If you disagree with BLM's decision, you may

appeal the decision to the Interior Office of Hearings and Appeals.

Subpart 3508--Competitive Lease Applications

Subpart 3508 describes the competitive leasing process, which we

use if you wish to lease mineral resources in areas where valuable

mineral deposits exist. We cannot issue a preference right lease for

known valuable deposits; the only way you can obtain a lease on these

lands is under this subpart, through a lease modification or through a

fringe acreage lease under subpart 3510 of these regulations.

If you are interested in leasing a certain area, you should contact

us to see if the lands are known to contain a valuable deposit.

Generally, this includes lands where further prospecting is unnecessary

for us to determine the existence or workability of a valuable deposit.

We can rely on geologic inference in making these determinations. BLM

must receive the fair market value for all minerals we lease

competitively.

BLM must reject a prospecting permit application if it is in an

area where there is a known valuable deposit, but in these areas you

may request a competitive lease. We may also initiate the competitive

leasing process. If we determine that the lands are suitable for

leasing, we may publish a notice of lease sale in the local newspaper

and in the local BLM public room. This notice will contain all the

information necessary for participating in the bidding, such as the

sale time and location, the minimum bid, bidding method and deadlines,

and description of the resource. Usually the bidding method will be

sealed bids, although on appropriate occasions we may use an oral

bidding process, or a combination of sealed and oral bids. BLM will

also make available the statement of the lease sale terms and

conditions.

If you are a qualified bidder and you offer the highest acceptable

bonus bid, meeting or exceeding fair market value, BLM may accept your

bid. As described in section 3508.20, we will open and announce all

bids at the lease sale, but we will not accept or reject bids at that

time. Instead, we will review the bids. We may reject all bids, or

accept the highest qualified bid by sending that person a lease form

and statement of terms and conditions. If we accept your bid, you must

sign the lease form, pay the first year's rent, publication costs and

the balance of your bonus bid (if not already paid in full with your

bid), and furnish the required lease bond. We will then award you the

lease.

If there is a tie between bidders for the highest bonus bid, we

will determine a fair process for breaking the tie. Also, you may

revise your bid at any time while the bidding is still open.

BLM can reject any high bid which does not meet all the

qualifications and requirements of these regulations. If we offer you a

lease but you decide not to accept it, we will keep one-fifth of your

bonus bid and refund any additional money submitted. BLM has complete

discretion to issue a competitive lease so we can reject your bid for

any other reason, such as a change in economic conditions. If we reject

your bid, we will refund any money you submitted with your bid.

[[Page 53524]]

Subpart 3509--Fractional and Future Interest Leases

This subpart concerns two types of Federal property interests that

include less than complete ownership: Future and fractional interests.

While these kinds of property are relatively uncommon, there are many

instances where the public owns only a share of a mineral estate. When

the United States owns an estate in conjunction with other owners, that

is a fractional interest. A future interest occurs when the Federal

Government owns the right to an estate after a certain date, but owns

no present interest in the estate. The Federal Government acquired most

of these limited estates during the Dust Bowl Era in order to help

landowners recoup some of their losses from failing farms and to

establish watershed protection measures.

BLM leases both future and fractional interests noncompetitively to

the party who owns or controls the present interest or partial

interest. We added a provision that allows limited competition for

these leases in cases where more than one person holds ownership or

possession. These leases are not available to the public at large. For

future interests, we may lease the future interest in a mineral tract

to the person who owns or controls the present interest and is

currently developing that interest. As a result, when that person's

interest ends and Federal ownership begins, the mineral operations can

continue under a future interest lease issued by BLM. Similarly, we may

lease a fractional interest in a mineral estate to the owner or owners

of the other fraction(s), or the party who has acquired the other

owner's development rights. This allows a single operator to develop

the minerals.

Future interest leasing is covered in Secs. 3509.10 through

3509.30. Since future interest leases are only available to holders of

the present mineral interest, it is important that you show you are

eligible for a future interest lease. You may only lease a future

mineral interest from BLM if you own a present interest in the

minerals, which means you must own either the record title or the

operating rights. Furthermore, you must own all or substantially all of

the present mineral interest. If you as a Federal lessee would control

50 percent or less of the present interest, we may reject your

application. To apply for a lease, you must submit evidence of this

ownership interest, plus information showing that you are qualified to

hold a BLM mineral lease (under subpart 3502), a land description,

information about any other owners, and a $25 application fee.

BLM will notify the other owners, if any, of your application. We

will give these other owners 90 days to file additional applications.

If we receive additional applications from other qualified owners, we

will hold a limited competitive sale. We will use the general

procedures in subpart 3508 to conduct the sale, but only qualified

interest holders who applied for the lease may bid at the sale.

If there are no other interest holders or we receive no other

applications during the 90 day notice period, we will notify you as to

whether we will grant the lease. We will reject your application if you

do not qualify to hold a lease. Also, you must apply for a lease more

than one year before the United States' ownership interest will vest or

we will reject your application.

Sections 3509.40 through 3509.50 cover fractional interest leases.

BLM issues fractional interest leases where the Federal Government

holds less than 100% of the mineral interest of the parcel. These

leases allow the other mineral interest owners to develop the mineral

estate.

BLM will only grant fractional interest permits or leases when we

believe development of the minerals is in the public interest, and with

the consent of the surface managing agency.

To be eligible for a lease, you must have a present interest in the

same minerals, and you must also meet the qualification standards

listed in subpart 3502. Your application must include a description of

the land and the same information we require when you apply for a

present interest Federal lease. You also need to include evidence of

your present ownership interest; the names of any other owners of the

mineral interests; and if you own the operating rights to the mineral

by a contract with the owner, you also need to submit three copies of

the contract.

We will notify the other owners, if any, of your application. We

will give these other owners 90 days to file additional applications.

If we receive additional applications from other qualified owners, we

will hold a limited competitive sale. We will use the general

procedures in subpart 3508 to conduct the sale, but only qualified

interest holders who applied for the lease may bid at the sale.

BLM will reject your fractional interest application if you are not

qualified to hold a lease, if you do not have a present interest in the

same minerals, or if you would have a total interest of less than 50%

once the fractional interest prospecting permit or lease is issued,

unless we determine it would be in the public interest to issue the

permit or lease.

Subpart 3510--Noncompetitive Leasing: Fringe Acreage Leases and

Lease Modifications

This subpart deals with how BLM leases mineral deposits which are

too small to be developed independently but could be developed as part

of a larger operation taking place on adjacent lands. We may grant you

a separate fringe acreage lease if you are developing non-Federal

minerals on adjacent lands. If you are operating on adjacent lands

under a Federal lease, we may modify your existing lease to add acreage

to your lease. In both cases you would acquire the additional mineral

lease noncompetitively. Please note that we have renumbered this

subpart since the proposed rule, when it was located at subpart 3514.

As a result, subparts 3510, 3511, 3512 and 3513 in the proposed rule

are now found at subparts 3511, 3512, 3513 and 3514, respectively.

BLM issues fringe acreage leases for mineral deposits which are too

small to be leased independently. This means that, in BLM's opinion,

the deposit lacks sufficient reserves to warrant independent

development, and that the minerals are not located in an area of

competitive interest to other mining operations in the area. However,

BLM will competitively lease these kinds of deposits when they have

competitive interest. For example, BLM will lease a resource

competitively if the mineral deposit is between two different mineral

operations, and both parties express an interest in the fringe acreage.

However, neither law nor policy requires us to lease the resource.

The rules for applying for a fringe acreage lease and a lease

modification are similar. To apply, you must submit the serial number

of your adjacent Federal lease, or proof that you own or control the

adjacent mineral deposit; information which shows that the mineral

deposit you are applying for extends from your adjacent lease or

private operation; a complete land description; an advance rental

payment and a nonrefundable $25 application fee.

BLM will not grant a lease through the non-competitive leasing

process if a competitive interest exists, or if the mineral deposit is

large enough to warrant independent development. We will also deny your

application for the additional acreage if it would cause you to exceed

the acreage limitations in 43 CFR 3503.37, if you are not qualified to

hold a Federal lease under subpart 3502, or if developing the lease

would be

[[Page 53525]]

economically inefficient or fail to properly conserve the natural

resources.

Because a fringe acreage lease is a new lease separate from your

ownership or control of the adjacent lands, BLM will set the terms and

conditions of your fringe acreage lease. If we modify an existing

Federal lease on adjacent lands, the terms for the new acreage will be

the same as those in your existing lease. Before we issue either type

of authorization, you must pay the bonus amount which we will set by

appraisal. The minimum bonus amount is $1 per acre.

Subpart 3511--Lease Terms and Conditions

While BLM sets most of the terms and conditions separately for each

lease, there are a number of terms and conditions which apply to all

leases. Those terms and conditions are the subject of subpart 3511.

The first two sections, 3511.10 and 3511.11, discuss when you may

mine associated, related or commingled commodities under your lease.

There are several situations where you may mine associated and related

products. If you have a sodium lease, you may mine related compounds

including potassium; while if you have a potassium lease, you may mine

related products including associated sodium compounds. If you have a

phosphate lease, you can use deposits of silica, limestone, and other

rock on your lease during processing or refining your phosphate,

phosphate rock and associated minerals. In all cases you must pay a

royalty for these additional minerals.

Producers of calcium chloride from Federal lands may also apply for

a noncompetitive lease to produce commingled sodium chloride. This

applies if you are producing paying quantities of calcium chloride from

an existing mine, and if you are authorized under the regulations in

part 3800 to produce the calcium chloride as a locatable mineral. This

is a new provision of the regulations. You must pay a royalty for the

commingled sodium chloride.

Most BLM leases are in effect for an initial 20-year term, subject

to readjustment or renewal. Each commodity has different provisions for

renewal or readjustment, which are explained in the chart at

Sec. 3511.15. If your lease can be readjusted, we must notify you

before the initial lease term expires of any new terms or conditions we

are proposing. If we fail to notify you, your lease will continue for

another 20 years under the same terms. By contrast, if your lease

requires that you renew it, you must contact BLM at least 90 days

before the initial term expires and express your interest in renewal.

If you do not notify us by this time, your lease will expire at the end

of the initial term, and your lands may become available for re-

leasing.

Once you receive proposed new terms under a readjusted lease, you

can object to the terms if you disagree with them, provided you file

your objection within 60 days of receiving the proposal. BLM will

respond to your objection with our decision on the lease terms, which

you may appeal if you are still dissatisfied. See the hearings and

appeals regulations at part 4 of this title.

While you are appealing any new terms or conditions, including

increased rentals or royalties under a renewal or readjustment, you

must continue paying rentals and royalties at the original rate.

However, those increased charges will begin accruing as of the renewal

or readjustment date. If the increase is sustained on appeal, you must

pay any accrued charges plus interest.

To renew your lease, you need to submit three copies of your

application, along with a $25 application fee and an advance rental

payment of $1 per acre, at least 90 days before your initial term

expires. There is no particular form for your renewal application.

Whether your lease is renewed, readjusted or otherwise extended, we

base your priority as a lessee on the original date of your initial

lease.

Subpart 3512--Assignments and Subleases

Once you receive a permit or lease, you may assign it to any

qualified person, in whole or in part, subject to BLM approval. Subpart

3512 describes how we process assignments and subleases.

Sections 3512.11 through 3512.17 describe the assignment and

sublease process. To assign a lease or permit, you must send us three

copies of your assignment instrument, which must describe the assignee,

the interest you hold and the interest you are assigning, and any

overriding royalties you are retaining. BLM must also receive from the

assignee a statement of their qualifications under subpart 3502, and a

$25 processing fee. We will notify you whether we approve your

assignment. If you are assigning only a portion of your permit or

lease, we will create a new permit or lease containing that portion, if

approved.

You may sublease your lease or transfer the operating rights in

your permit by a similar process. Simply send us a copy of the sublease

or transfer agreement within 90 days of the agreement's date of

execution, and have the sublessee or transferee send a signed request

for approval and a $25 processing fee. We will inform you of our

decision as soon as possible. Our approval will depend on the

recipient's qualifications and ability to meet all applicable

regulatory provisions.

The remaining sections in subpart 3512 concern your obligations

under an assigned or transferred BLM authorization, and special

circumstances. The most important provision, in section 3512.18, points

out that your account must either be in good standing or your sublessee

or assignee must have accepted any liabilities before we will approve

your sublease or assignment. Furthermore, your assignee or sublessee

must be fully bonded, which they can accomplish by either furnishing a

new bond under subpart 3504, or by arranging to assume your existing

bond. Until we approve the assignment, you will be responsible for all

obligations, and if you are subleasing your lease, both you and your

sublessee will be responsible for all obligations once we approve the

sublease. By contrast, if you are assigning your lease or permit, your

assignee will become responsible for all obligations after we approve

the assignment, while you remain responsible for all obligations

accrued before we approved it.

Finally, if you are assigning an overriding royalty to a third

party, you must notify BLM. While we do not have to approve the

transfer, you must still file this assignment with BLM within 90 days

of the transfer, along with the assignee's statement of qualifications

and a $25 processing fee.

Subpart 3513--Waiver, Suspension or Reduction of Rental and Minimum

Royalties

This subpart explains how to deal with three types of changes to

your ongoing operations: rental and royalty reductions, suspension of

operations and production (for conservation reasons), and suspension of

operations (for economic reasons).

Sections 3513.11 through 3513.15 concern rental and royalty rate

reductions, which BLM may allow temporarily if it is in the interest of

conservation, will encourage the greatest recovery of the mineral, and

is necessary either to promote development or to allow you to operate

successfully under the existing lease terms. You may apply to have us

reduce your rental, minimum royalty, or production royalty rate by

submitting the information listed in Sec. 3513.15.

We will consider whether you are paying excessive overriding

royalties to

[[Page 53526]]

non-Federal parties when we review your application. Before we will

reduce your royalty you must try to reduce any overriding royalties.

BLM will not approve a royalty rate reduction if your overriding

royalty exceeds 50 percent of the proposed reduced Federal royalty. For

example, if you are seeking to reduce your production royalty to four

percent, you must reduce any overriding royalties to a total of no more

than two percent. BLM has the authority to order a reduction of

overriding royalties to no more than one percent of the gross value of

production. You can find this authority at 43 CFR 3504.26.

Next, Secs. 3513.20 through 3513.26 concern suspensions of

operations and production, while Secs. 3513.30 through 3513.34 concern

suspensions of operations. Both situations involve BLM allowing or

ordering you to temporarily cease operations; but you would suspend

operations and production in order to protect or conserve natural

resources, whereas you would only suspend operations for financial

reasons. To alleviate confusion, these regulations will differentiate

between these two situations in the table of contents by referring to

``Suspension of Operations and Production (Conservation Concerns)'' and

``Suspension of Operations (Economic Concerns).''

You may cease your operations under a suspension of operations and

production (conservation concerns) when it is necessary in the interest

of conserving the natural resources affected by your operations. This

can be established if you show BLM in your application for a suspension

that you need to halt operations to benefit the resource. We can also

reach this conclusion independently and order you to cease operations.

If you initiate the suspension by applying to BLM for it, there is no

particular application form; you just need to send us enough

information to explain why the suspension will be in the best interest

of the natural resource.

BLM will set the effective date of your suspension of operations

and production. Once we approve your suspension, you will be relieved

of any production obligations, and we will reduce your minimum annual

production requirements to reflect the portion of each year in which

the suspension is effective. You may also cease paying rentals and

royalties on the first day of the month following the effective date of

the suspension. If the effective date is the first of the month, you

may stop making payments on that day. If you pay any rent or royalty

while the suspension is in effect, MMS will credit these payments

toward future rental and royalty obligations.

Meanwhile, you are still responsible for all other obligations

under your lease, and once the suspension ends, the payment and

production obligations resume. Your obligation to make rental and

royalty payments resumes on the first day of the month in which you

resume production or when the suspension expires, whichever comes

first. Finally, BLM will extend your lease by the amount of time in

which the suspension was in effect.

You may also cease your operations under a suspension of operations

(economic concerns) if you show us that your lease cannot be operated

except at a loss, because of market conditions. BLM may approve your

suspension of operations if you send us an application containing

enough information to show that you cannot operate under current market

conditions except at a loss. Once again, there is no particular

application form.

Unlike a suspension of operations and production (conservation

concerns), a suspension of operations (economic concerns) does not

extend your lease term or suspend your annual rental payment. When we

approve a suspension of operations, we temporarily waive the minimum

production requirements of your lease. We also waive your obligation to

pay minimum royalty in lieu of production. If your suspension is for

less than a full year, annual payments may be prorated to the length of

the suspension. You still must pay your annual rental.

Like a suspension of operations and production (conservation

concerns), your production obligations cease on the first day of the

month after the date which BLM sets as the effective date, unless the

suspension is effective on the first of the month, in which case your

obligations cease immediately. Also, the suspension ends if you resume

production, or if the suspension expires. In either case your

obligations resume as of the first day of the month in which the

suspension ends. At that time your minimum annual production

obligations resume.

Subpart 3514--Lease Relinquishments and Cancellations

Subpart 3514 deals with the various ways in which your lease may

end. Sections 3514.11 through 3514.21 concern relinquishments, where

you may voluntarily give up your lease interest. Sections 3514.25

through 3514.40 concern lease cancellations and expiration.

You may relinquish your lease or any portion of it at any time. The

only requirements are that you have met the terms and conditions of

your lease, including reclamation obligations, and that relinquishment

will not be detrimental to the public interest. Simply notify us in

writing that you wish to relinquish your lease, with your signature and

the date. Also, if you are only relinquishing part of your lease, you

must clearly describe the lands you are giving up. If your application

meets the above conditions, we will notify you of our acceptance, as of

the date you filed the application.

When you have relinquished your lease, you remain liable for paying

all rentals and royalties which accrued prior to relinquishment. You

must also provide for preserving mines, productive works and permanent

improvements on the land.

Section 3514.25 briefly describes lease expiration: your sodium,

sulfur, asphalt or hardrock lease expires at the end of the lease term,

unless you have properly filed for a renewal, in which case your lease

continues until BLM issues a decision on your renewal request. If BLM

rejects your renewal, your lease expires when the renewal is rejected.

Potassium, phosphate and gilsonite leases continue for as long as you

comply with the lease terms and conditions. See the chart at 43 CFR

3511.15.

Finally, Secs. 3514.30 through 3514.40 describe the circumstances

and effects of BLM canceling your lease. BLM may cancel your lease

through two types of actions: A court proceeding, if you fail to comply

with the applicable law or regulations, or if you default on the terms

of your lease; or administratively, if BLM issued your lease in

violation of the law or any regulation.

BLM may ask a court to cancel your lease if you violate the law or

regulations. We may also pursue cancellation in court if you fail to

perform any duty under the lease, and you continue to default on that

obligation for thirty days after BLM notifies you of your default. BLM

will generally give you thirty days after our notice to you to remedy

the violation or show why we should not move for cancellation, before

we take any further action.

BLM may also administratively cancel your lease if we issued it in

violation of any law or regulation--for example, if the lease would put

you over the acreage limitations. In such a case, we may amend the

lease and reissue it. However, if the defect in your lease is something

that we cannot cure--for example, if you are ineligible to hold a

lease--the cancellation will be final.

[[Page 53527]]

We may waive cancellation or forfeiture if the circumstances call

for doing so. When we waive cancellation, that waiver will have no

impact on any future cancellation actions which may be necessary.

Finally, if you are a bona fide purchaser of any lease interest, we

will not cancel your lease simply because we decided to cancel your

predecessor's lease. A bona fide purchaser is someone who bought the

interest without any knowledge or reason to know of the lease's legal

defects. We will dismiss you from any legal proceedings to cancel the

lease if you are not responsible for the defect.

Subpart 3515--Mineral Lease Exchanges

Subpart 3515 discusses mineral lease exchanges. BLM may exchange

mineral lease rights with you when we conclude that it would benefit

the public interest to do so.

You can exchange your lease or a portion of your lease interests,

as well as your preference right to a lease, for a lease of equal

value. When you exchange a lease interest in one mineral, you can

receive in return an interest in any leasable mineral. This includes

hardrock minerals covered by this part. If your exchange proposal

involves any interest in a coal lease, you must refer to the coal

leasing regulations at 43 CFR subpart 3435.

Either you or BLM may initiate an exchange. You may do so by

contacting us. If we initiate an exchange, we will notify you that we

are prepared to consider an exchange for some or all of your existing

lease, or your preference right to lease. Our notice to you will also

say why we believe the exchange is in the public interest, describe the

lands we might exchange, and ask you whether you are willing to

negotiate and for which lands.

Exchanges must be in the public interest, which for the purposes of

this subpart means two criteria must be met. First, we must determine

that the benefits of operations under your existing lease or preference

right would not outweigh the adverse effects those operations would

have on other public values, such as scenic beauty, wildlife habitat,

recreation, or agricultural production potential. The lands which BLM

would receive must be free of hazardous waste, as defined under the

hazardous waste laws. There may be other elements of the public

interest which BLM will account for in considering an exchange as well.

Also, BLM will comply with the requirements of NEPA when processing an

exchange.

BLM may exchange any lands subject to the limitations of FLPMA and

other applicable statutes. You may also exchange a preference right to

a lease. To do so, you must first establish your preference right

through the procedures described in subpart 3507. Once you have

demonstrated to our satisfaction your right to a lease, we can

negotiate with you for an exchange lease.

The parcels involved in an exchange must be equal in value. If the

lands being exchanged are not equal in value, the exchange can be made

equal with cash. However, any payment cannot exceed 25 percent of the

total value of the land or interest in land you are receiving from BLM.

Under certain circumstances the parties may agree to waive the

equalizing payment. We can only agree to this waiver if it will

expedite the exchange and if the public interest will benefit more from

the waiver than the payment. The waiver amount can be no more than

three percent of your new lease's total value or $15,000, whichever is

less.

Either you or the BLM may initiate an exchange. In order for us to

proceed with an exchange, you must be willing to provide us any

additional geologic and economic data we need to determine the value of

your lease or preference right. Once we have reached an agreement on

the lands to be exchanged, BLM will publish notice of the exchange in a

newspaper of general circulation serving the counties where all lands

involved are located, and arrange for a public hearing. We will solicit

public comments on the proposed exchange, and after considering this

input we will make our final decision to approve or reject the

exchange.

If we approve the exchange, we will offer you a lease containing

the lease terms discussed in the appropriate regulations and any needed

special stipulations. Once we approve an exchange we will include a

statement in your new lease that you relinquish all interests in the

land which you are giving up in exchange.

Subpart 3516--Use Permits

This next subpart concerns special permits to use the surface of

lands which are not included in your lease. If you have a phosphate or

sodium lease or permit, you may apply for a permit to use the surface

of nearby lands for purposes related to your mineral development.

BLM may grant use permits on unappropriated, unentered lands which

we administer. Under a phosphate use permit, you could conduct

activities on the surface necessary to extract, treat or remove

phosphate deposits from your leased lands. Under a sodium use permit,

you may occupy camp sites, develop refining works, and otherwise use

the surface to accommodate your sodium lease operations.

To apply, send your application, a $25 processing fee, and the

first year's rental, which is $1 per acre or fraction of an acre. Your

application should describe the lands you seek and the specific reason

why you feel you need to use them. You should also submit any

additional information which demonstrates that the lands you seek are

available and suitable for your needs. Your application must include a

statement that you agree to pay the annual charge identified in the

permit, which should be $1 per acre or $20, whichever is greater.

If BLM grants your use permit, you will be able to use the lands

for the specific purposes identified in it. Your use permit will

contain an expiration date, but if your associated lease or permit

expires or terminates for any reason during the life of the use permit,

we will terminate the use permit at that time. Use permits cannot

outlive the operations they are intended to support. Finally, if you

fail to pay the rental within 30 days of BLM notifying you that the

rental is due, we will terminate your use permit.

Subpart 3517--Hardrock Mineral Development Contracts; Processing

and Milling Arrangements

The final subpart of these regulations concerns a subject specific

to hardrock mineral leases: development contracts and processing and

milling arrangements. These are agreements between one or more lessees

and other persons to collaborate on large-scale operations to develop,

produce, or transport ores. Permits and leases committed to these

contracts and arrangements do not count towards your maximum acreage

holdings.

BLM must approve any such agreement you enter into if your permits

and leases are not to be counted toward your maximum acreage holdings.

You may apply for BLM's approval by submitting copies of all agreements

between you and other parties to the development contract or processing

and milling arrangement; a statement which identifies the nature and

reason of your request, and which shows all interests held in the area

by the designated contractor; and a proposed plan of operations. BLM

will approve your agreement only if it will conserve natural resources

and is in the public interest.

[[Page 53528]]

III. Responses to Comments

BLM received a total of 29 comments on the proposed rule. The

commenters included nine corporations, three industry associations,

eleven BLM offices, three other government agencies, and three

individuals. These comments addressed a wide variety of subjects, and

ranged from commenting on general issues to offering specific language

changes. We have considered every comment and will address them here,

beginning with general comments followed by responses to comments on a

section-by-section basis.

A. Generally Applicable Comments

The most hotly-debated issue raised by the proposed rule concerns

the definition of a ``valuable deposit.'' Sixteen of these comments

addressed the term ``profitable mine'' as an aspect of the definition

of a ``valuable deposit.'' Many of these commenters say that by making

this change we have substantially raised the standard of evidence

required to earn an entitlement to a preference right lease. Others

suggest that this definition exceeds our authority under the law, and

suggest that a permittee need only show that they have established the

``existence and workability of the deposit'' during the term of a

prospecting permit in order to be entitled to a preference right lease.

We have carefully considered these comments, but we have chosen to

leave the definition as we originally proposed it.

The proposed language does not materially change the definition or

our existing policy. For example, BLM Instruction Memorandum WO 93-101,

dated December 31, 1992, clearly states that BLM's policy is that

``valuable mine'' means ``profitable mine'' in this definition. Our

legal authority for this definition is found in the Mineral Leasing Act

and the Mineral Leasing Act for Acquired Lands.

This definition does not require that a prospecting permittee

demonstrate that a profit can be made from the property. The language

is conditioned by the phrase ``reasonable prospect of success.'' This

means that the permittee only has to show how one can reasonably infer

from the data collected during the period of the prospecting permit

that further expenditure of his or her means is justified by the

expectation he or she can develop a profitable mine.

We have considered if we can make a distinction between a valuable

mine and a profitable one. Is there a level of information that would

show a hypothetical mine to be valuable, but at the same time be

insufficient to show that it is reasonable to believe that this same

hypothetical mine would be profitable? We do not think there is.

Information that is less than that necessary to show a person can

reasonably expect to develop a profitable mine may show that a valuable

prospect exists, but is insufficient to show that a valuable mine can

be developed. If a property is only valuable as a prospect, then the

permittee has not yet earned an entitlement to a preference right

lease.

Nine commenters expressed their opinions about the new style in

which this rule is written. As mentioned above, this rule has been

reorganized to consolidate overlapping provisions into a single set of

generally applicable rules. We are also writing in ``plain language,''

which involves transforming the rule text into a series of questions

and answers. Commenters had mixed reactions to our new format, but

since we are required to use plain language and to streamline all BLM

regulations, we are not making substantial changes in response.

More specifically, some commenters said streamlining is a bad idea

because it took the old system, where each commodity had its own set of

regulations, and merged them all into a single, more confusing set of

regulations. We disagree. There are very few differences between how

each commodity is leased, and once people get used to using the new,

consolidated rules, they should find them just as easy to use as the

prior rules. One commenter felt that streamlined regulations worked in

favor of large corporate customers and against small businesses. Again,

we disagree. BLM designed these rules to be easy for everyone to

understand, including people entirely outside the mining industry. This

should actually benefit small businesses, who sometimes may not have

the same expertise as large corporations. Your local BLM office is also

available to help you understand any regulation that affects you.

Two commenters felt the proposed table of contents was long and

hard to understand. We agree, so we have added groupings to the table

of contents which should make the table of contents much easier to

read. Now, if you want to know how to prove that you are qualified to

hold a lease, rather than searching through all fifteen section headers

under ``Subpart 3502--Qualification Requirements,'' you can find the

grouping called ``How to Show Lease Qualifications'' and find the

section you need more quickly. These groupings should also make it

easier to understand how we structured the regulations.

Some people also were unhappy with the question-and-answer format,

where each section header is a question which is answered by the

section text. This is a key aspect of plain English, which BLM is

committed to using. Once you get used to it we believe you will find it

very helpful.

Several commenters did not understand the numbering system used in

the proposed rule. Two commenters said that the numbering system in the

proposed rule did not conform to the numbering system used in BLM's

case tracking computer database. We made several changes in the final

rule in response to these comments. We added subheadings under the

major headings to clarify the organization of the rule. Also, we

changed the tables in the rule so that we always list the commodities

in the same order. The final rule lists the commodities in the same

order as that used in the previous version of this rule. Also, we

intentionally skipped numbers in the final rule. We did this to leave

room for any future amendments and additions to this rule that might

someday be required.

One key index in our computer databases is the case type field. The

case type index allows a user to search the data base for particular

kinds of cases, for example phosphate leases, and ignore other cases.

The first four digits of the case type field have cited the regulations

that authorize the action. For example, the first four digits of the

case type for competitive phosphate leases is 3515, the same as the

citation for competitive phosphate leasing in the previous rule.

This rule making does not require any change to our computer

databases. If BLM needs to change this database, we will not need to

change this rule to do so. We have placed the commodities in the order

in which they were found in the previous version of this rule so that

the first three digits of the case type field will refer to the rule.

We did this as a matter of convenience and with the hope that it will

make the rule easier to use.

There were several general comments concerning substantive issues.

One commenter suggested that we should ask potential lessees to certify

themselves as qualified, rather than asking them to submit proof of

their qualifications so that we can certify them as eligible. We did

not accept this idea. While self-certifying could save applicants some

time, we feel this is too important an issue for BLM to relinquish our

responsibility. Leases issued to people who are not qualified are void

by law, and if we granted a lease to an unqualified person and were

[[Page 53529]]

forced to shut down their operations later, it would be far more costly

and complicated than determining qualifications at the outset. These

problems could also occur where someone accidentally misinterprets the

qualifications. BLM prefers to resolve these critical issues before we

issue a lease, and we think it is in the public interest to do so.

One commenter pointed out that we had eliminated all information on

fractional interest leases. We have since reinstated information on

fractional interests in this final rule, beginning at 43 CFR 3509.40.

Two commenters requested that BLM make several changes to the

proposed bonding requirements, such as allowing self-bonding, not

duplicating state bonding requirements, and not requiring high premiums

until a user has planned a surface disturbance. We have not made any

changes to accommodate self-bonding. First, we will not accept self

bonds because they provide no additional security to the government. A

self bond is a personal or corporate guarantee of performance. This is

not significantly different from the lease document. Once you sign the

lease, you have guaranteed your performance of its terms and

conditions. The purpose of the bond is to secure performance of these

terms and conditions should you be unable to honor your guarantee.

We have added language to Sec. 3504.50 that allows BLM offices to

enter agreements with state governments on bonding. In a state where we

have entered such an agreement, your state bond may not fully satisfy

BLM's bonding requirement. We may still require additional bonding in

such states because our bonds cover compliance with all terms and

conditions of the lease. State governments generally only bond your

reclamation obligations. BLM bonds for reclamation as well as for the

payment of rental and royalties. If you are working in a state where

the BLM and the state government have developed an agreement on bonds,

the information you file with us must prove that your state bond

completely covers your responsibilities to BLM, for the entire life of

the BLM bond you would otherwise need. If you cannot prove this, or if

your state bond is inadequate, we will require you to file an

additional bond.

The final rule does have provisions for phased bonding in

Sec. 3504.60. This subpart allows us to adjust your bond as

circumstances warrant. It may take some time after we issue your lease

before you have gotten all the permits needed to open a mine. You need

to have a full reclamation bond in place before you open the mine, but

you may not need to have this full bond in place while you are still

seeking permits. Subpart 3504.60 allows individual BLM offices to phase

in your bond if appropriate.

Finally, a few comments raised questions and offered suggestions

for language we could use to describe areas which are known to contain

a deposit of a leasable mineral. Exploration licenses, competitive

leases, and fringe acreage leases are available in these areas. One

comment requested that we use the term Known Leasing Area to describe

areas where these authorizations are available. We chose not to change

the language in the final rule.

The term Known Leasing Area (KLA) comes from the BLM's practice of

classifying lands for various purposes. The former Conservation

Division of the U.S. Geological Survey was responsible for designating

KLAs. The Secretary of the Interior transferred this responsibility to

BLM in the early part of the 1980's. The boundaries of KLAs are fixed

through a formal decision process. Because of other workload

priorities, we have not reviewed many of these KLA designations

recently. Some of these designations may be out of date. Therefore, we

chose to avoid the use of the term Known Leasing Area in the final

rule.

Under the final rule, we intend for BLM to review each application

to see if it is for lands known to contain a valuable deposit of a

leasable mineral. This will be more effective than relying solely on

old classification maps that may not be based on all currently

available geologic data.

B. Specific Comments

Authority Citation

Several comments suggested that we should retain the authorities

section from the previous version of the regulations. The existing

regulations now contain a complete list of all the statutory

authorities which support this part. Also, each commodity section lists

statutory authorities. In response to these comments, we expanded the

authorities section at the beginning of the rule. We deleted the

authorities section from each commodity section because of the way we

consolidated the rule. However, we included any commodity-specific

authority in the general section listing our statutory authority.

Section 3501.5

Three commenters suggested expanding the definitions section at

section 3501.5 to resemble the existing set of definitions. One

commenter opposed consolidating definitions sections in general,

reasoning that consolidated sections will be harder to work with and

will make it more difficult to track changes to regulations because

when BLM revises a definition we can do so by simply referring to the

definitions section, not the affected regulations. We did not accept

these comments, except to add the term ``acquired lands'' to the

definitions section. We do not use several of the terms we deleted from

the definitions section in the final rule. We deleted other terms from

the definitions section because we believe these terms will be readily

understood when read in the context of the rule. Therefore, we chose to

leave these terms out of the definitions section.

Three commenters felt the proposed definition of ``hardrock

minerals'' was deficient. We re-wrote this definition to give a simple,

brief explanation of what hardrock minerals generally are and what they

are not, without listing all the specific minerals which could fall

into this category.

Based on a comment by a BLM office, we deleted the proposed

definition of ``leasing,'' which we decided was unnecessary. These

regulations explain leasing in great detail, and defining the term does

nothing more to help the reader. We also deleted the proposed

definition of ``Act'' because we do not use this term in the rule.

Section 3501.10

Two commenters disputed the proposed language about who determines

land to be chiefly valuable for a mineral, and when this determination

is required. We amended 43 CFR 3501.10(a) to point out that BLM will

determine if land is chiefly valuable for developing a certain mineral,

and that BLM must do so only when someone holding a prospecting permit

for sodium, potassium or sulphur discovers a valuable deposit and wants

a preference right lease to mine the deposit. The permit holder does

not make ``chiefly valuable'' determinations.

Section 3501.16

One commenter suggested including a provision which says that we

will determine your priority based on the date of your initial permit

or lease. We have accepted this idea, so that now your priority will be

determined by your original lease date, even if you have since renewed

it.

[[Page 53530]]

Section 3501.17

We received four comments on paragraph (b), which says that BLM or

the surface managing agency must comply with NEPA before issuing any

permit or lease. Two commenters requested definitions of NEPA and

``surface managing agency'' but we felt this was unnecessary. NEPA

refers to the National Environmental Policy Act of 1969, 42 U.S.C. 4321

et seq. The surface managing agency will be the Federal agency

responsible for managing the surface estate overlying a leasable

mineral area.

Section 3502.13

One BLM office pointed out that we no longer maintain a list of

countries which deny U.S. citizens and corporations the opportunity to

hold mineral leases or permits. The procedures implementing the Mineral

Leasing Act's alien ownership provisions were changed by notice in the

Federal Register (47 FR 27622, June 25, 1982). This comment is correct,

so we deleted the reference to this list from this section.

Section 3502.25

We received one question about filing evidence to show that you are

qualified to hold a lease or permit. This comment asked if you have to

file evidence with every application. The final rule requires that you

do. The information you submit to one BLM office may not be shared with

another because it stays with your application. Also, your

qualifications may change over time. Therefore, we ask that you submit

a copy of your proof of qualifications with each application you file.

Section 3502.30

In response to a question we received, we changed the rule to state

that the alien provisions apply to hardrock minerals on acquired

National Forest lands.

Section 3503.10

This section lists the areas which the Secretary of the Interior is

prohibited by law from leasing because of their wilderness values. This

includes designated wilderness, Wilderness Study Areas (WSAs),

inholdings in wilderness, and lands recommended for wilderness

designation by the surface managing agency. One commenter asked whether

this also included lands in Utah that may be reinventoried for

wilderness values. BLM is not prohibited by law from leasing these

lands provided they are otherwise available.

Section 3503.11

One comment pointed out that the Grand Staircase-Escalante National

Monument was closed to mineral leasing by Presidential Proclamation on

September 18, 1996, subject to valid existing rights. We added a

reference to the Grand Staircase-Escalante National Monument to

Sec. 3503.11. This section of the final rule lists those areas where we

will not issue a permit or lease. There are no existing prospecting

permits or preference right lease applications for the commodities

controlled by this rule in the Grand Staircase-Escalante National

Monument, so we will not have to consider preference right leasing for

these commodities in this area.

One comment pointed out that we have no legal authority to issue

permits or leases in Ross Lake and Lake Chelan National Recreation

Areas. We removed the reference to these areas in the final rule. The

proposed rule copied the list of lands available for leasing from the

previous rule. We published the previous rule in 1986. Congress passed

the law th

This text is long and has been trimmed here. Open the source document for the complete record.