Subpart 3211-Bureau Motion, Land Previously Leased for Geothermal Resources

§ 3211.1 Releasing of formerly leased lands.

Lands available for noncompetitive leasing in canceled or relinquished leases or in leases which expire by operation of law at the end of their primary or extended terms or in leases which terminate by operation of law for nonpayment of rental pursuant to 30 U.S.C. section 1004, shall be subject to further leasing only in accordance with the provisions of this section. From time to time the authorized officer will publish in the FEDERAL REGISTER, post in each proper BLM office, and provide appropriate news coverage of:

(a) A list of leasing units composed of lands which are available for noncompetitive leasing and which were in canceled, expired, relinquished, or terminated leases.

(b) An announcement that applications for leases on such lands will be received after a specific hour and date and that any applications filed during a specified simultaneous filing period beginning at that time will be regarded as simultaneously filed;

(c) The address of the proper BLM office where applications must be filed and where the terms and conditions under which the lease will be issued are available; and

(d) Requirements for a complete application, indicating that the proposed plan of operation, as required by § 3210.2-1(d) of this chapter, will not be required until there has been a drawing and a consequent determination of priority, but must be filed prior to the issuance of the lease, upon notice from the authorized officer.

§ 3211.2 Applications during simultaneous filing periods.

(a) An application shall conform to the requirements of § 3210.2-1 of this chapter, except as provided below.

(b) Only one complete leasing unit, identified by unit number, may be included in an application. Lands not on the published list may not be included in the application.

(c) An applicant is permitted to file only one application for each numbered unit on the posted list. Submission of more than one application by or on behalf of the applicant for any unit on the posted list will result in the disqualification of all applications submitted by that applicant for the drawing to be held for that particular unit.

(d) The application must be accompanied by a signed statement that the applicant will furnish the information required by these regulations within 15 days after notification that his application is the only one for the tract, or that he is the successful drawee.

(e) Each application filed during a simultaneous filing period must be submitted in a sealed envelope marked “Application for a lease pursuant to 43 CFR Subpart 3211". The envelope will remain sealed until the end of the 30day simultaneous filing period, at which time the application will be time-stamped simultaneously and serialized. A public drawing of all applications received during the simultaneous 30-day period will be held to determine respective priorities and order of processing.

(f) Applications filed during a simultaneous filing period are subject to the classification criteria established in § 3200.0-5(k) of this chapter, and will be considered as all filed the same day.

(g) The requirements of § 3210.2-1(d) of this chapter requiring a proposed plan of operation need not be satisfied for a complete application during the 30-day simultaneous filing period or during any future designated simultaneous filing period. Such plan must be filed by the successful drawee prior to the issuance of the lease, upon notice from the authorized officer.

(h) Each application must be accompanied by the service charge of $50. The first year's advance rental need not be submitted with the application. A lease may be issued to the first drawee qualified to receive a lease upon payment of the first year's rental. Rental must be received in the proper BLM office within fifteen days from the date of receipt of notice that such rental is due. The drawee failing to submit the rental payment within the time allowed will be automatically

disqualified to receive the lease, and consideration will be given to the application of the drawee having the next highest priority in the drawing.

§ 3211.3 Issuance of leases for units on posted list.

(a) If more than one application is received during the simultaneous filing period for the same unit on the list posted pursuant to § 3211.1(a), all applications on that unit filed during that period will be considered simultaneously filed. Priority of filing for such units will be determined by a public drawing. Three applications will be drawn for each unit, and the order in which they are drawn will fix the order in which the successful drawee will be determined. Where less than three applications have been filed, all applications will be drawn to determine priority.

(1) If the lands are determined not to be within any KGRA, a lease may be issued to the successful drawee upon his compliance with all applicable regulations, including those in Subpart 3210 of this chapter.

(b) If only one application is filed during the simultaneous filing period on a unit on the list posted pursuant to § 3211.1(a), a lease on that unit, if the land is not included within any KGRA, may be issued to the applicant, upon his compliance with all applicable regulations, including those in Subpart 3210 of this chapter.

(c) If no application is filed on a unit on the list posted pursuant to § 3211.1 (a) within the prescribed simultaneous filing period, the land in that unit, if not within a KGRA, will become available for leasing in accordance with Subpart 3210 of this chapter.

(a) Nominations will be submitted on a card approved by the Director.

(b) A nomination must be filed in the proper BLM office in duplicate for public lands and triplicate where acquired lands are involved and must include the following:

(1) The nominator's name and address;

(2) A statement of citizenship and qualifications for lease;

(3) A description of the lands; and

(4) A statement of the interests, direct or indirect, held in other Federal geothermal leases in the same State.

§ 3220.3 Publication of notice of lease sale.

Where the Secretary determines to offer lands for competitive leasing he will publish a notice of lease sale in a newspaper of general circulation in the area in which the lands to be leased are located once a week for 4 consecutive weeks, or for such other period as he may direct.

§ 3220.4 Contents of notice of lease sale.

(a) The notice will specify the time and place of sale, the manner in which bids may be submitted, the description of the lands, and the terms and conditions of the sale, including royalty and rental rates.

(b) The notice will indicate the proper BLM office where the terms and conditions under which the lease will be issued are available. The notice I will also indicate that the proposed

plan of operation, as required by § 3210.2-1(d) of this chapter, must be filed before a lease can be issued.

§ 3220.5

Bidding requirements.

(a) A separate identified sealed bid shall be submitted for each lease unit. Each bidder shall submit with the bid a certified or cashier's check, bank draft, money order, or cash in the amount of one-fifth of the amount bid, together with proof of qualifications as required by these regulations. The balance of the bonus bid shall be paid either in a single payment upon the award of the lease or in two equal annual installments due and payable on the next two anniversary dates.

(b) All bidders are warned against violation of the provisions of 18 U.S.C. 1860 prohibiting unlawful combination or intimidation of bidders.

(c) If the lease is terminated by relinquishment, or for failure to make timely payment of annual rentals or for any other reason, any unpaid installments of the bonus bid shall be immediately due and payable to the lessor.

[44 FR 12039, Mar. 5, 1979]

§ 3220.6 Award of lease.

(a) All sealed bids shall be opened at the place, date, and hour specified in the notice. No bids will be accepted or rejected at that time.

(b) In the event that the Secretary determines to issue a lease, that lease shall be awarded to the highest responsible qualified bidder, except as required under Part 3230 of this chapter.

(c) The right to reject any and all bids is reserved. If the authorized officer fails to accept the highest bid for a lease within 30 days after the date on which the bids are opened (or such longer period as may be needed to comply with § 3230.1-6 of this chapter), all bids for that lease will be considered rejected. Deposits on rejected bids will be returned.

(d) If the lease is awarded, three copies of the lease will be sent to the successful bidder who shall be required to execute them within 30 days from receipt thereof, to pay the first year's rental, file the required bond or bonds; and submit the proposed plan

of operation as required by § 3210.21(d) of this chapter. When the three copies of the lease are executed by the successful bidder and returned to the authorized officer, the lease will be executed by the authorized officer and a copy will be mailed to the lessee.

(e) If the successful bidder fails to execute the lease or otherwise comply with the applicable regulations, the deposit will be forfeited and disposed of as provided in section 20 of the Act. In this event, the lands may be reoffered when it is determined, in the opinion of the Secretary, that sufficient interest exists to justify a competitive lease sale.

3230.1-1 Rights to conversion to geothermal leases.

3230.1-2 Rights to conversion to applications for geothermal leases. 3230.1-3 Land in which minerals are reserved to the United States.

3230.1-4 Conflicting claims of rights to

conversion to geothermal leases, or to applications for geothermal leases. 3230.1-5 Evidence required to qualify for

grant of rights to conversion to geothermal leases, or to applications for geothermal leases.

3230.1-6 Method of leasing to owners of

conversion rights to geothermal leases, or to applications for geothermal leases. 3230.1-7 Acreage limitation. 3230.2 Qualifications. 3230.3 Applications.

3230.3-1 Filing of application. 3230.3-2 Statements required. 3230.4 Conversion to geothermal leases or to applications for geothermal leases. 3230.4-1 Processing and adjudicating applications.

AUTHORITY: 84 Stat. 1566, 30 U.S.C. 1001

1025.

SOURCE: 38 FR 35095, Dec. 21, 1973, unless otherwise noted.

Subpart 3230-Rights to Conversion to Geothermal Leases or Application for Geothermal Leases

§ 3230.1 General.

§ 3230.1-1 Rights to conversion to geothermal leases.

Where lands were on September 7, 1965, subject to valid leases or permits issued under the Mineral Leasing Act of 1920, as amended and supplemented (30 U.S.C. 181-287), or the Mineral Leasing Act for Acquired Lands, as amended (30 U.S.C. 351-358), or subject to existing mining claims located on or prior to September 7, 1965, the lessees, permittees, or claimants, or their successors in interest, if qualified to hold geothermal leases, shall have the right, subject to certain limitations as hereinafter provided, to convert such leases, permits or claims to geothermal leases covering the same lands. Upon issuance of a geothermal lease based upon the exercise of conversion rights hereunder, such outstanding leases, permits, or mining claims shall be deemed to be terminated or relinquished, respectively.

§ 3230.1-2 Rights to conversion to applications for geothermal leases.

Where lands were subject to application for leases or permits under the mineral leasing laws referred to in § 3230.1-1 on September 7, 1965, the applicants may, subject to certain limitations as hereinafter provided, convert their applications to applications for geothermal leases having priorities dating from the time of filing such applications under said mineral leasing laws. Upon issuance of a geothermal lease based upon the exercise of conversion rights hereunder, such pending applications for leases or permits shall be deemed to be withdrawn.

§ 3230.1-3 Land in which minerals are reserved to the United States.

Where a right to one of the forms of conversion referred to in § 3230.1-1 or § 3230.1-2 is claimed as to lands the surface of which has passed from Federal ownership but in which the minerals have been reserved to the United States, final action on any claim to conversion rights under section 4 of

the Act shall be held in abeyance until such time as the question of title to the geothermal resources in such lands has been resolved pursuant to the provisions of section 21(b) of the Act, unless the Secretary determines that it is in the public interest to make a determination of such claims at an earlier time, subject to the rights, if any, of surface owners.

§ 3230.1-4 Conflicting claims of rights to conversion to geothermal leases, or to applications for geothermal leases.

(a) Where there are conflicting claims of rights to conversion to geothermal leases based upon mineral leases, mineral permits, or mining claims embracing the same land, the date of issuance of the permit or lease or of recordation of the claim shall determine priority.

(b) Where there are rights to conversion to applications for geothermal leases based on applications for mineral leases or permits in conflict with rights to conversion to geothermal leases based upon mining claims embracing the same lands, the mining claim right to convert to a geothermal lease shall have priority. If the applicant for a geothermal lease based upon a mining claim fails to qualify for any reason, the application for an application for a geothermal lease is entitled to priority based on the date of filing the application for a mineral lease or permit.

§ 3230.1-5 Evidence required to qualify for grant of rights to conversion to geothermal leases, or to applications for geothermal leases.

(a) Any person claiming rights to conversion to a geothermal lease must show to the reasonable satisfaction of the authorized officer that substantial expenditures for the exploration, development or production of geothermal steam, but not associated geothermal resources, were made by the applicant who is seeking the conversion on the lands for which a lease is sought or on adjoining, adjacent or nearby lands, including both Federal and nonFederal lands. The substantial expenditures must have been made prior to December 24, 1970, and either by the

applicant seeking conversion or by his predecessors in interest.

(b) For purposes of these regulations, an application for a lease or a permit, filed pursuant to applicable mineral leasing acts, pending on September 7, 1965, which subsequently ripened into a lease or permit, and which remains outstanding or has either terminated, expired or been canceled or relinquished, retains the right to conversion to an application for a geothermal lease. Applications for a lease or permit, filed pursuant to applicable mineral leasing acts, pending on September 7, 1965, which were subsequently withdrawn, retain the right to conversion to an application for a geothermal lease. Leases or permits issued pursuant to the applicable mineral leasing acts and outstanding on September 7, 1965, which were subsequently terminated, expired, or were canceled or relinquished, retain the right to conversion to a geothermal lease.

§ 3230.1-6 Method of leasing to owners of conversion rights to geothermal leases, or to applications for geothermal leases.

(a) Lands included within any KGRA-(1) Competitive lease. Where lands have been included within any KGRA prior to the issuance of a lease, the owner of a conversion right to a geothermal lease for such lands shall be entitled to the issuance of a competitive lease only in accordance with the provisions of paragraph (a)(2) of this section. If the lands subject to a conversion right to a geothermal lease are in part within a KGRA and in part outside a KGRA, the holder of that conversion right shall have the right to divide his conversion right into two separate conversion rights so that he may receive a geothermal lease to the lands within the KGRA only subject to paragraph (a)(2) of this section and a geothermal lease to the lands not within a KGRA subject to paragraph (b) of this section.

(2) Preference right. (i) Lands which have been included within any KGRA shall be leased only by competitive bidding in the manner prescribed in Subpart 3220 of this chapter, except that, in addition, the name and ad

dress of the applicant for any conversion right to a geothermal lease will be set forth in the lease sale notice.

(ii) The person owning the right to conversion to a geothermal lease shall be informed by written notice of the highest bona fide bid submitted for the lease at the sale. If within thirty (30) days after he has received that written notice, the person owning the right to conversion to a geothermal lease shall inform the authorized officer that he wishes such a lease, pay an amount equal to the highest bona fide bid submitted, pay the rental for the first year, file the required bond or bonds, and submit the date required by § 3210.2-1(d) and (e) of this chapter, a lease will be issued to him.

(iii) Failure of the owner of the right to conversion to a geothermal lease to inform the authorized officer timely will constitute a forfeiture of his conversion rights without further notice to him. In this event, the lease will be offered to the highest bona fide bidder, if otherwise qualified.

(iv) Where no bids are received, the person owning the right to conversion to a geothermal lease will not be awarded the lease. Failure of the owner of the right to conversion to submit a bona fide bid or to meet the high bid for the tract offered at the sale will constitute a forfeiture of his conversion right without further notice.

(b) Lands not included within any KGRA-Noncompetitive lease. Where lands have not been included within any KGRA prior to the issuance of a lease, the owner of a conversion right to a geothermal lease for such lands, if otherwise qualified, shall be entitled to the issuance of a noncompetitive lease for such lands.

(c) Lands included within a KGRA— (1) Application for a lease. Where lands have been included within a KGRA prior to the issuance of a lease, the owner of a conversion right to an application for a geothermal lease to those lands shall be entitled to receive a competitive geothermal lease only in accordance with the provisions of Subpart 3220 of this chapter. If the lands subject to a conversion right to a geothermal application are in part within a KGRA and in part outside a KGRA,