authorized until after compliance with section 106 of the National Historic Preservation Act (16 U.S.C. 470f). Other cultural resource values shall also be protected pursuant to section 105 of the National Historic Preservation Act.

§ 3410.2-4 Threatened or endangered species.

If the proposed exploration would be likely to jeopardize the continued existence of a threatened or endangered species of fauna or flora or destroy or cause adverse modification to its critical habitat, no exploration license for such lands shall be issued. In making this determination the authorized officer shall consult any other surface management agency, and, if the presence of any threatened or endangeed species or its habitat is suspected or known, with the Fish and Wildlife Service in accordance with 50 CFR Part 402.

§ 3410.2-5 Surface management agency.

The authorized officer may issue an exploration license covering lands the surface of which is under the jurisdiction of any Federal agency other than the Bureau of Land Management only in accordance with those conditions prescribed by the surface management agency concerning the use and protection of the nonmineral interests in those lands.

§ 3410.2-6 Substantial disturbance.

No exploration license shall be issued if exploration under it would result in substantial disturbance to the natural land surface and improvements. Substantial disturbance means any disturbance which would cause significant and lasting degradation to the land or injury to improvements, or any disturbance other than that necessary to determine the nature of the overlying strata and the depth, thickness, shape, grade, quality or hydrologic conditions of the coal deposit.

§ 3410.3 Exploration licenses.

§ 3410.3-1 Issuance and termination of an exploration license.

(a) The authorized officer has the discretion to issue an exploration li

cense or to reject the application therefor under this subpart.

(b) An exploration license shall become effective on the date specified by the authorized officer as the date when exploration activities may begin. An exploration license shall not be valid for more than two years from its effective date.

(c) The exploration plan approved by Geological Survey shall be attached and made a part of each exploration license.

(d) Subject to the continued obligation of the licensee and the surety company to comply with the terms and conditions of the exploration license, the exploration plan, and the regulations, a licensee may relinquish an exploration license for all or any portion of the lands covered by it. A relinquishment shall be filed in the Bureau of Land Management State Office in which the original application was filed. See 43 CFR Subpart 1821.

(e) An exploration license may be revoked by the authorized officer for noncompliance with its terms and conditions, the exploration plan, or the regulations, after the authorized officer has notified the licensee of the violation(s) in writing and the licensee has failed to correct the violation(s) within the period prescribed in the notice.

(f) Should a licensee request a modification to the exploration plan, the Mining Supervisor, with the concurrence of the authorized officer, and where appropriate the surface management agency, may approve the modification if geologic or other conditions warrant. If modification of the exploration plan could result in substantial disturbance to the natural land surface or damage to improvements, the authorized officer, after consultation with the Mining Supervisor, and where appropriate, the surface management agency, may adjust the terms and conditions of the license to mitigate such disturbance or damage. Unless the licensee concurs in the adjusted terms and conditions of the license, the modification of the exploration plan shall not be approved.

(g) When unforeseen conditions that could result in substantial disturbance

to the natural land surface or damage to the environment or improvements are encountered, or when geologic or other physical conditions warrant a modification in the approved exploration plan, (1) the authorized officer, after consultation with the Mining Supervisor, and where appropriate, the surface management agency, may adjust the terms and conditions of the exploration license, or (2) the Mining Supervisor, after consultation with the authorized officer and where appropriate, the surface management agency, may direct adjustment in the exploration plan. If the licensee does not concur in the adjustment of the terms and conditions of the exploration license and exploration plan, he may, under 43 CFR Part 4, appeal the decision modifying the license, or he may relinquish the exploration license.

(h) Exploration licenses shall not be extended. Exploration operations may not be conducted after the exploration license has expired. The licensee may apply for a new exploration license as described in § 3410.3-1. A new exploration license may be issued simultaneously with the termination of the existing exploration license.

§ 3410.3-2 Limitations on exploration li

censes.

(a) The issuance of exploration licenses for an area shall not preclude the issuance of a Federal coal lease under applicable regulations for that area. If such a lease is issued for lands included in an exploration license, the authorized officer shall cancel the exploration license on the effective date of the lease for those lands which are common to both.

§ 3410.3-3 Operating regulations.

The licensee shall comply with the provisions of the operating regulations of the Geological Survey (30 CFR Part 211). Copies of the operating regulations may be obtained from the Mining Supervisor. Authorized representatives of the Secretary and, where appropriate the surface management agency shall be permitted to inspect the premises and operations. The licensee shall allow the free ingress and egress of Government officers and

other persons using the land under authority of the United States.

§ 3410.3-4 Surface protection and reclamation.

(a) The authorized officer shall inIclude in each exploration license requirements and stipulations to protect the environment and associated natural resources and to ensure reclamation of the land disturbed by exploration.

(b) The approved exploration plan shall not authorize substantial disturbance of the natural land surface or damage to improvements.

(c) The authorized officer may issue an exploration license for Federal lands underlying private surface. The bond amount, when the exploration license will embrace such lands, shall reflect any agreement between the license applicant and the surface owner with respect to compensation for operations on the surface of the lands in the exploration license.

(a) Bonding provisions in subpart 3474 of this chapter apply to this subpart.

(b) Prior to issuing an exploration license, the authorized officer, after consultation with the Mining Supervisor and, where appropriate, the surface management agency and the surface owner, shall insure that the amount of the bond or bonds to be furnished is sufficient to assure compliance with the terms and conditions of the exploration license, exploration plan and regulations. In no event shall the amount of such bond be less than $5,000.

(c) Upon completion of exploration and reclamation activities that are in compliance with the terms and conditions of the exploration license, the exploration plan, and the regulations, or upon discontinuance of exploration operations and completion of such reclamation as may be needed to the satisfaction of the authorized officer and, where appropriate, the surface management agency, the authorized officer shall terminate the period of liability of the bond. Where the surface of the land being explored is privately

owned, the authorized officer shall not terminate the period of liability under the bond until each surface owner has notified the authorized officer, in writing, that the surface has been reclaimed in a satisfactory manner. Should the licensee and any surface owner be unable to agree on the adequacy of the reclamation, the authorized officer shall make the final determination. The period of liability under the bond shall be terminated after it is determined that the terms and conditions of the exploration license, the exploration plan, and the regulations have been met.

§ 3410.4 Collection and submission of data.

(a) The authorized officer may require the applicant to collect ground and surface water data that are available to the licensee in the conduct of the approved exploration plan.

(b) In addition, the licensee shall furnish to the Mining Supervisor copies of all data (including, but not limited to, geological, geophysical, and core drilling analyses) obtained during exploration. The licensee shall submit such data and the methods by which the data were gathered, at such time and in such form as required by the Mining Supervisor. All data shall be considered confidential and not made public until the areas involved have been leased or until the Mining Supervisor determines that public access to the data would not damage the comof petitive position the licensee, whichever comes first. (30 CFR 211.6; 43 CFR 2.20.)

§ 3410.5 Use of surface.

(a) A licensee shall be entitled to use for exploration purposes only the surface area of the lands in the exploration license that is authorized in the exploration plan.

(b) Operations under these regulations shall not unreasonably interfere with or endanger operations authorized under any other Act or regulation.

(c) The licensee shall comply with all applicable Federal, state and local laws and regulations, including the regulations in Group 3000 of this title,

leasing of rights to extract Federal coal.

§ 3420.0-2 Objectives.

The objectives of these regulations are to establish policies and procedures for considering development of coal deposits through a leasing system involving land use planning and environmental assessment processes; to ensure that an adequate supply of Federal coal is developed efficiently in compliance with laws, planning processes, and other safeguards designed to protect society and the environment; to ensure that coal deposits are leased at their fair market value; and to ensure that coal deposits are developed in consultation, cooperation, and coordination with the public, state and local governments, Indian tribes and involved Federal agencies.

§ 3420.0-3 Authority.

(a) The regulations in this part are issued under the authority of the statutes cited in § 3400.0-3 of this title.

(b) The regulations in this part implement: (1) Primarily section 2(a) of the Mineral Leasing Act of 1920, as amended by Sections 2 and 3 of the Federal Coal Leasing Amendments Act of 1976 (30 U.S.C. 201(a)); and (2) the Small Business Act of 1953, as amended (15 U.S.C. 631 et seq.).

§ 3420.0-6 Policy.

All leases except those issued under the provisions of Part 3430 of this title shall be issued competitively. There shall be special opportunity lease sales for qualified public bodies and for small businesses. Before each sale, the Department shall evaluate and compare the method or methods of mining that will achieve the maximum economic recovery of the resource. The Department shall receive fair market value for all coal leased.

§ 3420.1 Procedures.

§ 3420.1-1 General.

Competitive leasing is a component of the Federal coal management program and consists of four principal elements: comprehensive land use planning; establishment of regional

leasing targets; tract delineation, ranking, selection, and scheduling; and lease sale. The application of unsuitability criteria pursuant to Subpart 3461 of this title for mining is an integral part of land use planning. All competitive lease sales under this subpart shall be initiated by the Secretary; applications for a competitive lease will be accepted only when filed under the provisions of Subpart 3425 of this chapter.

§ 3420.1-2 Lands subject to evaluation for leasing.

All lands subject to coal leasing under the mineral leasing laws are subject to evaluation under this subpart (43 CFR 3400.2).

§ 3420.1-3 Known Recoverable Coal Resource Areas.

No area outside a designated Known Recoverable Coal Resource Area (KRCRA) shall be leased under this subpart. Each KRCRA shall be formally designated by publication in the FEDERAL REGISTER.

§ 3420.1-4 Special leasing opportunities.

(a) The Secretary shall, under the procedures established in this subpart, including § 3420.4 of this title, reserve and offer a reasonable number of lease tracts through competitive lease sales open only to a restricted class of potential bidders. Except for the limitation on bidding contained in paragraph (b) of this section, all requirements in this subpart apply equally to special leasing opportunities, including the requirement that coal be leased at its fair market value.

(b) Special leasing opportunities shall be provided for two classes of potential lessees:

(1) Public bodies. (i) Only public bodies with a definite plan for producing energy for their own use or for their members or customers shall bid for leases designated as special leasing opportunities for public bodies. To qualify as a definite plan, a plan must clearly state the intended use of the coal and have been approved by the governing board of the public body submitting the plan. In the event an electric generating station which will produce energy for the public body is

either jointly owned with or participated in by others, or both, the definite plan shall assure that the public body's proportionate part of the energy produced is utilized pursuant to this paragraph.

(ii) Each public body shall submit evidence of qualification (43 CFR 3472.2-5(a)) as part of its expression of leasing interest or upon submission of a bid if no expression of leasing interest is made.

(iii) The Secretary may designate, during the process of preparing a regional lease sale schedule, certain coal lease tracts for special leasing opportunities for public bodies only if a public body has submitted an expression of leasing interest under § 3420.42, requesting that the procedures of this section apply.

(iv) Leases issued under this section to public bodies may be assigned only to other public bodies, or to a person who will mine the coal on behalf of and for the use of the public body, or to a person for the limited purpose of creating a security interest in favor of a lender who agrees to be obligated to mine the coal on behalf of the public body.

(2) Small businesses. (i) When necessary to comply with the requirements of the Small Business Act, the Secretary shall designate a reasonable number of tracts for special leasing opportunities for businesses qualifying under 13 CFR Part 121.

(ii) Leases issued under this section may be assigned only to other small businesses qualifying under 13 CFR Part 121.

(c) Potential lessees qualifying for special leasing opportunities may participate in competitive lease sales not designated as special leasing opportunities and shall not be required to submit the evidence and information required specifically for a special leasing opportunity to participate.

§ 3420.1-5 General requirements for land use planning.

(a) The Secretary may not issue a lease for coal development under this part unless the lands containing the coal deposits have been included in a comprehensive land use plan or land