sees with one or more persons, associations, or corporations, to justify operations on a large scale for the discovery, development, production or transportation of ores.

§ 3505.3-2 Application.

(a) Where filed and copies. An application must be filed in the proper office in three executed copies, and a duplicate original must be filed with the Regional Mining Supervisor of the Geological Survey. All of the contracts held by the same contractor, in the area, should be submitted at the same time and full disclosure of the project made.

(b) Showing required. The contract must be accompanied by a statement showing all of the interests held by the contractor designated in the contract in the area, and also the agreed or the proposed plan of operation or development of the leased lands.

§ 3505.3-3 Approval.

(a) Approval of contract. Contracts may, by and with concurrence of the Geological Survey and on such conditions as may be subscribed, be approved by the Secretary or his authorized representative.

(b) Exemption from acreage limitations. Operating or development contracts may be approved regardless of acreage limitations provided in § 3501.2-5.

Subpart 3506-Assignments or Transfers and Subleases

SOURCE: 35 FR 9710, June 13, 1970, unless otherwise noted.

§ 3506.1 Qualifications.

§ 3506.1-1 Who may file.

Permits and leases may be transferred in whole or in part to any person, association, or corporation qualified to hold such leases and permits.

(a) Minors. A minor is not qualified to hold a permit or lease and a transfer to a minor will not be approved.

(1) Exception. An assignment in behalf of a minor heir or devisee of a

(a) Record title; copies required. Assignments or transfers of record title interest must be filed in triplicate.

(1) Approved form. There is no specific form which must be used for assignment transfers or requests for approval thereof. The application must contain evidence of qualifications of the assignee or transferee consisting of the same showing required of a lease or permit applicant as set forth in qualifications Subpart 3502.

(2) Separate instruments required. A separate instrument of assignment or transfer must be filed for each permit or lease when transfers involve record titles. When transfers to the same person, association, or corporation, involving more than one permit or lease are filed at the same time for approv

al, one request for approval and one showing as to the qualifications of the assignee or transferee will be sufficient.

(b) Other than record; title; copies required. A single executed copy of all other instruments of transfer is sufficient.

§ 3506.2-3 Bonds.

(a) Coverage. If a bond is necessary it must be furnished before a transfer of a permit or lease will be approved, the consent of the surety to the substitution of the transferee as principal, or a new bond with the transferee as principal, must be submitted if the original permit or lease required the maintenance of a bond. If the transfer is for part of the land only, it must be for a legal subdivision and (1) the consent of the surety to the transfer and its agreement to remain bound as to the interest retained by the permittee or lessee must be submitted, as well as (2) a new bond with the transferee as principal covering the portion of the lands transferred.

(b) Continuing responsibility. The transferor of a permit or lease, including a sublease, and his surety will continue to be responsible for the performance of any obligation under the permit or lease until the effective date of the approval of the transfer. If the transfer is not approved, their obligation to the United States shall continue as though no such transfer had been filed for approval. After the effective date of approval the transferee, including sublessee, and his surety will be responsible for the performance of all permit or lease obligations notwithstanding any terms in the transfer to the contrary. The account under the permit or lease must be in good standing before approval of a transfer will be given.

§ 3506.2-4 Permit or lease account status.

The account under the permit or lease must be in good standing before approval of a transfer will be given.

§ 3506.2-5 Description of lands.

Each instrument of transfer must describe the lands involved in the same manner as described in the

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§ 3510.1 General.

§ 3510.1-1 Character of lands.

The Secretary of the Interior is authorized to issue permits to qualified applicants to prospect unclaimed and undeveloped areas of mineral lands and mineral deposits in public and acquired lands or in public and acquired lands disposed of with a reservation of deposits to the United States.

(a) Exceptions. (1) Sulphur. The Secretary of the Interior is authorized to issue permits to prospect for sulphur in public lands or in public lands disposed of with a reservation of such deposits to the United States in the States of Louisiana and New Mexico.

§ 3511.1-4 Withdrawal of application.

An application for permit may be withdrawn in whole or in part prior to its execution on behalf of the United States. The filing fee will be retained as service charge. The advance rental covering the acreage withdrawn will be refunded.

(a) Application for permit; issuance of permit. To obtain a prospecting permit, an application must be filed on a form approved by the Director or an exact reproduction thereof. Each application should be filled in on a typewriter or printed plainly in ink by the applicant or the applicant's duly authorized attorney in fact.

(b) Exceptions-(1) [Reserved]

(2) Acquired lands-additional showing required. Specify the dominant mineral or minerals for which the lease or permit is sought;

(c) Where filed and copies. Applications must be filed in the proper office and filed in quintuplicate.

(a) The United States will indicate its acceptance of the application, in whole or in part, and the issuance of the permit by the signature of the authorized officer in the space provided therefor. An executed copy of the permit will be mailed to the applicant at the address of record.

(b) An application for permit on a form not correctly reproduced, but which contains the statement that the applicant agrees to be bound by the terms and conditions of the form in effect at the date of filing, will be approved by the authorized officer provided all other requirements are met.

§ 3511.2-4 Rejection.

(a) Except as provided in § 3511.2-3 an application will be rejected if:

(1) The land description does not conform with the requirements of § 3501.1-3, or the land is not in reasonably compact form as specified in § 3501.1-3.

(2) The total acreage exceeds the allowable acreage specified in § 3501.14(b) except where the rule of approximation applies (see § 3500.0-5(c)).

(3) The full amount of the filing fee and the first year's rental do not accompany the application, the rental payment to be for the total acreage if known, and if not known, for the total acreage computed on the basis of 40 acres for each smallest legal subdivision.

(4) The application is signed by an attorney-in-fact on behalf of the applicant and is not accompanied by the evidence and statement required by § 3502.6-1.

(5) The application is signed by a guardian or trustee on behalf of a minor and is not accompanied by the evidence specified § 3502.5.

(6) Less than five copies of the application are filed.

(a) Duration. Permits may be extended by an authorized officer of the Bureau of Land Management for a period of 2 years. (1) Exceptions—(i) Sodium and sulphur. No extension of term will be granted.

(ii) Phosphate. Phosphate permits may be extended by an authorized officer of the Bureau of Land Management for an additional period not in excess of 4 years.

(b) Requirements. A permit may be extended, in the discretion of the Secretary and after consultation with the Mining Supervisor of the Geological Survey, if:

(1) The permittee has been unable with reasonable diligence to determine the existence or workability of the deposits covered by the permit and desires to prosecute further prospecting or exploration, or for other reasons warranting such extension.

(2) The permittee has drilled at least one adequate test well on the permit area or performed other comparable prospecting prescribed in the permit. This requirement may be waived upon a satisfactory showing that the failure of permittee was directly attributable to the shortage of equipment or labor essential to the prescribed prospecting.

(3) The permittee's failure to perform diligent prospecting activities was due to conditions beyond his control.