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HomeMy WebLinkAbout894785F°rm ]100'!1 UNrrED STATES (oc~oher 199zF DEPARTMENT OF THE INTERIOR -. BUREAU OF LAND MANAGEMENT OFFER TO LEASE AND LEASE FOR OIL AND GAS H-15743/ Thc undersigned (reverse) offers to lease aLI or any of thc' I.,~ in lmm 2 that ate available for lease pursuant to the Mineral l.~Lqing Act of 1920, as afnceded and supplemented (30 U.S.C. 181 et seq.), thc Mines-al Leasing Ac~ for Acquh~l laflctq of 1947, aa amended (30 U.S.C. 351-359), the Attorney General's Opinion of April 2, 1941 (40 Op. Ally. fica. 41), or thc ~ sppUcation/offer/Icasc is for: (Check only One) g~ PUBLIC DOMAIN LANDS Surfacc managing agency ff othea' than BLM: Uui~oject L~gal de~ription of land requested: *Pm'ecl No.: tO *SEE ITEM 2 IN INSTRUCTIONS BELOW PRIOR TO COMP~G PARCEL NUMIIER AND SALE DATK. Future rental payments must be made on or before thc anniversary dale to: Minerals Management Service Royalty Management Program P.O. Box 5640 Denver, CO 80217... :~-" ...... . ....... UI ACQ~ LANDS (l~rc~m U.S. interest *Sale Date (m/d/j): RECEIVED k!N,COLN COUNTY CLERK DO NOT ~ BELOW THIS LINE 3. Land included in lease: Meridian County To~I acres in lea~e R~mal rc~d $ TI~ lea.~ is iaued granting thc exclusive right to drill for, mine, exttnct, remove and dis ,pgc~ of all th~ oil and gas (except helium) in ~ land~ described in Item 3. together with th~ fight to build and maintain necessary improvements thereupon for th~ term indicated below, subject to renewal or extension in accordance with the appropriat~ leasing authority. Right~ gremtxl are subject to applicable laws, thc ~rn~. coadJfioaa, sad atlacbud stipulations of dfis lease, the Sccrclaty of thc [mcdor's regulatioas and fennel orders in cffec~ as of lease iasuaacc, and to regulatioas and formal orders h~reaf~r promulgated when not inconsistent with lea.~ righ~ granted or specific provisions of ~ lense, NOTE: This lease is I~ued to the high bidder pU~uunt 1o his/her duly executed bid or nomlnn~io~ form subtultled under 4.3 CFR 3120 and is subject lo the provlsion~ of that bid or nomination and tho~e specified on this form. ~ and p~nap/mrm of lea~: · Chief, ~a'~d M~eral, Adj~3~n~~ FEB 1 0 2003 ¢'"') I'1AR 0 ] 2003 ,,,ate) ..... t-'l Other, - ....... ~ -EFFECTIVE DATE OF LEASE ' · ~ ?T,","..;,k. , i .{ ,y..;,;.:.:,...._,; · , oneompetltivelease (t~n y~trs) [] Comi~dv,~ I~a,,~ (~a yeah) 4. (a) Undersigned c~rtifies that (1) offeror is a cltlzen of' the United States; an assc~ati0n of such citizens; a municipality; or a coq~r~un or~anlzed ruder the inw~ ol` the United State* or of any State or Tcnltory thereof; (2) all parties buidlog an'ir'Infest in the offer are in compliance with 43 CFR 3100 and thc leasing authorities; (3) offer~Cs chargeable tnteres~ direct and inditer, in each public domain and acquired lands separately in the same State~ do not ea~ 246,080 acres in oil and gas leasea (o,f which up to 200,0(IO ac~s may be lo oil and gas options), or 3OCJ,000 acres in lense* in each leasing DIS .~ct In Alaska of which UP to 200,000 acres may be in opSuns, (4) offeror ia not co~asJdered a manor ~ the la,as of the State in which the lands COVe.~d by th;s offer are .located; (5) offeror is in compliance wlth qualifications corx~crniog Federal coal lea*~ holdings provided in sec. 2(aX'2XA) of the Mineral Leasing Act; (6) offeror is in compliance wlth reclamMiun requirements fcc all Federal oil and gas lease holdings ns rcqnired by sec. 17(g) of the Mineral l..~.asing Ad.; and (7) offe~x' is Bet ;n violMion of sec. 41 of the A~ (b) Undersigned agrees that signature to thl; offer cons§turn* aeeeptance of this lease, including all terms, coodltiona, and sllpoiatl~ of wiaJch offeror has been g;vco notice, and any nm~_~dmant or separate lea~e that may include any land described in this offer open to leasing at the time this offer was §led but omitted for any ~ason l'rm~ 'this lease. Tho offer<ar further agrees that thls offer Canno~ be withdrawn, either ,~n whole or in part, unless the witixtrnwal |s received by the proper 13LM Slate Office befo~ this lease, an amendment to I~is leas~ or a separate lease, whichever cove.~ the land described in the withdrawal, bas been signed on behalf of ~ United States. Tids offer will be rejected and wtU n/ford offeror no p~iority If It is not properly completed smd executed in nceordsmce with lbo regUintions, or If It is not ne~omPstaled by the required orlmymenLq' "8 'U"S'C' Sec' 1001 makes It ' crime for any perann Im°wingly smd willfully t° make t° stay Delmrtn~eu' or ag(~n,.cJ-2°f: UnReal Slides sm, ,--, Ik'tltlo~s or It-a--at stateme~tsrepresentauons as to sm, m.tter within Rs jurisdktion. ~__ . Sec. I. Rentals--Rentais Shall he paid to proper office of lessor in advance of each lea.se year. Annual rental rates per acre or fraction thereof n~e: (a) Noncompetitive lease, $1.50 for the first $ years; thereafter $2.00; ~) Competitive lease, $1.50; for the firat 5 yens; there.,'d,~Ler $2.00; (c) Other, see attachment, or as specified in re ,gulations at the time this lease is issued. If this lease or a portion thereof is commJt~d to an approved cooperative or unit plan which includes a well capable of producing leased resources, and the plan contains n provision for al} ,.,~, ~on of.production, ~yalties shall be paid on the production allocated to this lease. However, . anoom rentals shall continue to he due at the rate specified in (a), (b), or (c) for those lands oot Mthin a participating area. Failure to pay annual rental, if due, on or before the annlversar7 date of this lease (or next official working day if office is closed) shall automatically terminate this lease by operation of law. RenUds may be waived, reduced, or suspended by the Secretory upon a sufficient showing by lessee. Sec. 2. Royalties:Royalties shall he paid ta pr~er office of lessor. Royalties shall he computed in accordance with regulations on production removed or sold. Royalty rates are: (q),, Noncompetitive lease, 12H %; (b) 'Competitive lease,, 12~ %; (c). Other, see attachment; or as specified in regulations at the time this lease is issued. Lessor reserves the right to specif7 whether royalty is to be paid in value or in kind, and the right .~o establish reasonable minimum values on products after giving lessee notice and an opportunity to be beard. When paid in value, royalties shall he due and payable on the last day of thc month following hie month in which production occurred. When paid in kind, production shall be delivered, unless otherwise agr~l to by lessor, in merchantable condition on the p~mises where produced without cost to lessor. Lessee shall not he required to hold such production in storage beyond the last day of the month foUowiog the month in which production occurred, nor shall lessee he held liable for loss or deslruction of royalty oil or other preducts in storage from causes beyond the reasonable cun~ol of lessee. Minimum royalty in lieu of rental of not less than the rental which otherwise would be required for that lease year shall he payable at thc end of each lease year beginning on or after s discovery in paying quantities. This minimum royalty may he wal'~ed, suspended, or reduced, and the above royalty rates may be reduced, for all or portions of this lease il' the Secramry determines that such actioo is necessary to encourase the ~eatest ultimate recover7 of the leased resources, or is otherwise justified. An interest charge shall be asSeSsed on late royalty payments or undcrpayments in accordance with the Federal Oil and Oas Royalty Manag,cmcnt Act of 1982 (FOORMA)(30 U.$.C. 1701). l~ssee shall be liable for royally payments on.oil and gas lost or wasted from a lease ~'ite when such loss or Waste i~ due Io negligence Oh the part of the operator, or due to the failure to comply with any rule, regnlafiOn,' ruder, Or citation issued uncles FOGRMA or the leasing suthority. Sec. 3. Bonds--A bond shall be tided and maintained for lease operations as required under regulations. ,: . ~ Sec. 4. Diligence, rate of developmcot, unitiradou~ and dminage.-~ shall exercise reaso~i>ie diligence in developing and producing, and shall prevent uanecessary damage to, loss of, or .w~..te of!..e~, resources. Lessor. reserves right to specify rates of development and production . m me paouc interest and to reqmre lessee to subscribe to a cooperative ~r unit plan, within 30 * days of notice, if deemed necessary for proper development and operation of area, field, or pool embracing these leased lands, l_~sseo shall drill and produce wells neces~u7 to protect leased lands from dn, inage or pay compensatory royalty for drainage in mount determined by lessor. ,~c. 5. Documents, evidence, and inspectlon--Leasec shall Me with proper office of lessor, not later O~m 30 days after effective date thereof, any conUact Or evidence of other arrangement l'or sale or dispesal of pmdoction. At such times and in'such form ~ lessor may l~n:scn'he, lessee shall fi~rnish detailed stetem~nts showing amounts and quality of all products removed and sold, proceeds therefr0tn,' and amount used for produ~on paU~oses or unavoidably lost. ~ may be requir~ to provide plsts and SChematic dinsram~., showing development work ~d improvements, and reports wi~h respect :to parties in interest, expenditures, and depreciation co~. In the: f~ Im~scm'bed by lessor, les.~ shall Iteep a daily drilling rcco~, a log, hffom'mtion on weU surveys and tests, and a reconl of subsurfsce investigations and furnish copies to lessor when mqulred. Lessee shall keep open at nil reasonable times for inspection by any authorized officer of lessor, the leased pl,t~ises and all wells, improvements, machinery, and fixtm~s ~eroon, · and all books, accounts, maps, and records relative to operations, surveys, or investigations on or in the leased lands. Lessee shall maintain copies of all contracts, sales agreements, accounting reconis, and documentation such as billings, invoices, or similar documentation that supports 026 costs claimed as manufacturing, preparation, and/or transportation costs. All such records shall be maintained in les.see's accounting offices for future audit by lessor. Lessee shall maintain ' required records for 6 years after they are generated or, if an audit or inyestigntion is underway, until released of the obligation to malntaln such records by lessor. During existence of this lease, information obtained under lhis section shall he closed to inspection by the public .in accordance with the Freedom of Information Act (5 U.$.C. 552). Sec. 6. Conduct of operations--Lessee shall conduct operations in a manner that minimizes Mivers~ impacts to the land, air, and water, to cultund, biological, visual, ami other re. sources, and to other land uses or uso~. I~sseo shall take reasonable measures deemed ~ by lessor to accomplish the intent of ~ section. To the extent consistent with le.~e rights granted, such measures may include, hot are nm limited m, modlficMio~ to ~ifing or design of facilities, timing . of operations aM spacifieation of interim and final.raclamation measores. Lessor reserves the fight to continue existing uses and to authorize future ~ upon or in the Ina~d lands, including the approval of easements or rights-of-way. Such uaes shall he conditioned so as tu prevent unnecessary or unreasonable interferem:e with rights of lessee. Prior to disturbing the surface of the leased lands, lesse~ shall contact lessor to be appri~l of procedures to he fotlowed and modification~ or reclamation measures that'may be nece~uy. Areas to be disturbed may require inventories or special ~udi~ to determine the extent of impacts to other re. source.s, l_~asee may he required to complete minor inventories or sho~ term spac~ studies under guidelines provided by lessor. If in the conduct of opesatiom, threatened or endangered species, objects of historic or SCientific interest, or sob~tsmtinl unanticipated enviroumenlal effects are observed, lessee shall immediately contact lessor. Lessee shall cede any operations that would result in the destruction of such species or objects. Sec. 7. Mining operations--To the extent that impacts from mining operations wo~ld be substantially different or greater than those associated with nomud drilling operations, lessor reserves the, right to deny H~proval of such oparation~. Sec. 8. Extraction of helium--Lessor reserves the option of extractlng or having extracted helinm from gas production in a manner specified and by .means provided by le~or at no expense or loss to lessee or owner of the gas. Lessee shall include in any contract of sale of gas Iho provisinns of this section. Sec. 9. Damages to property--Lessee shall pay lessor for damage to le~orYs improvements, and shall save and hold lessor harmless bom all claims for damage or harm to persons or property as a result of lease Sec. 10. Protection of diverse interests and equal opportunity--Lessee shall: pay when due ali taxes legally assessed and levied under laws of the State or the United State*; accord MI en~oyees complete freedom of purchase; pay all wages at least twice each month in lawful money of the United Ststes; maintain s safe working envimnmem in ~cc~dance with ~dard i,~,~ pmctic~; and take measures necessary to protect ~ ben]th ~ed safety of the Public. Lessor reserves the right to ensure that production is sold at reasonable prices and to prevent. monopoly. If lessee operates a pipeline, or owns con~'olling interest in s pipeline or a company operating a pipeline, which may he operated aceeas~ie tooil derived from these leased lands, lessee shall comply with section 28 ol` the Mineral Leasing Act of 1920. Lessee shall comply with Executive Order No. 11246 of Septemher 24, 1965, as amended, and regulations and relevant orders of the Secretary of Labor issued porsuant tl~reto. Neither lessee nor lessee's subcontractor~ shat/maintain segregated facilities. Sec. i I. Transfer'of lease interests and relinquishment of le~e-~-A~ required by reguintiona, lessee shall ~'fle with lessor any assignment or other mm, far of an intet~t in this le~e. ~ umy relinquish this lease or any legal subdivision by frling in the proper office a' writlen relinquishment, which shall he effective as of the date of filing, subject to the continued ob{igafion of the lessoe and surety to pay all ~ccrued sentais and royalties. Sec. 12. Delivery of premised--At such time as all 6t portions of ~ lease are relumed to ie~or, lessee shall place affected wells in condition for suspeosinn or ahandonmont, reclaim the land as specified by lessor and, within a reasonable period of time, rensove equipment and imptm, ements not deemed necessary by lessor for pre~n, Mion of producible wella. Sec. 13. Pmceodiogs in case of default--If lessee fails tu comply with any provlsiona of lease, and the noncompliance continues for 30 days after written notice thereof, tith lease shall he subject to cancellation unie~ or until the lea~aold conmim a well capable of Imxhiction ofoil or ga~ in paying quantities, or the le.a~ b ca:munitted to an ~oved coopesative or unit plan or communitizatlon agreement which conmina a well caq~ble of production of unitized substances in paying quantifies. This provision shall not be conalrued to prevent the exercise by lessor of any other legal and equitable remedy, including waiver of the default. Any ~uch remedy or waiver shull not prevent later cancellation for the ~me default occurring at any time. I~sseo shall he subject to applicable provisions and penalde~ of FOGRMA ('30 U.S.C. 1701}. Soc. 14. Heirs and successors-in-interest--Each obligation of ~ lease shall extend to and be binding upon, and every benefit hereof shall inure to the hoirs, executors ~ mtmlni~h'/tors, succea~rs, hencficiaries, or assisnees of fl~ resl~ve piu'ties ber~fx). ' : · ~ ~-.' :; ;:::1::~:::~ ': 'U.S. GOVERNMENT PFi:': ;. ICE: 1ggS-673-O04141123 :~- O27 ~/YW 1.57/+ ~ 4 MULTIPLE MINERAL DEVELOPMF~NT STIPULATION Operations will not be approved which, in the opinion of the authorized officer, would unreasonably interfere with the orderly development and/or production from a valid existing mineral lease issued prior to this one for the same lands. THIS STIPULATION APPLIES TO ALL PARCELS LEASE NOTICE NO. 1 O28 Under Regulation 43 CFR. 310 I. 1-2 and terms of the lease (BLM Form 3100-11), the authorized officer may require reasonable measures to minimize adverse impacts to other resource values, land uses, and users not addressed in lease stipulations at the time operations are proposed: Such reasonable measures may include, but are not limited to, modification of siting or design of facilities, 'timing of operations, and specification of interim and final reclamation measures, which may require relocating proposed operations up to 200 meters, but not offthe leasehold, and prohibiting surface disturbance activities for up to 60 days. The lands within this lease may include areas not specifically addressed by lease stipulations that may contain special values, may be needed for special purposes, or may require special attention to prevent damage to surface and/or other resources. Possible special areas are identified below. Any surface use or occupancy within such special areas will be strictly controlled or, if absolutely necessary, prohibited. Appropriate modifications to imposed restrictions will be made for the maintenance and operation of producing wells. 1. Slopes in excess of 25 percent. 2. Within 500 feet of surface water and/or riparian areas. 3. Construction with fro~zen material or during periods when the soil material is saturated or when watershed damage is likely to occur. 4. Within 500 feet of Interstate highways and 200 feet of other existing rights-of-way (i.e., U.S. and State hi,ghways, roads, railroads, pipelines, powerlines). 5. Within 1/4 mile of occupied dwellings. 6. Material sites. GUIDANCE: The intent of this notice is to inform interested parties (potential lessees, permittees, operators) that when one or more of the above conditions exist, surface disturbing activities will be prohibited unless or until the permittee or the designated representative and.the surface management agency (SMA) arrive at an acceptable plan for mitigation of anticipated impacts. This negotiation will occur prior to development and become a condition for approval when authorizing the action. Specific threshold criteria (e.g., 500 feet from water) have been established based upon the best information available. However, geographical areas and time periods of concern must be delineated at the field level (i.e., "surface water and/or riparian areas" may include both intermittent and ephemeral water sources or may be limited to perennial surface water). The referenced oil and 'gas leases on these lands are hereby made subject to the stipulation that the exploration or drilling activities will not interfere materially with the use of the area as a materials site/free use permit. At the time operations on the above lands are commenced, notification will be made to the appropriate agency. The name of the appropriate agency may be obtained from the proper BLM Field Office. THIS NOTICE APPLIES TO ALL PARCELS LEASE NOTICE NO. 2 BACKGROUND: The Bureau of Land Management (BLM), by including National Historic Trails within its National Landscape Conservation System, has recognized these trails as national treasures. Our responsibility is to review our strategy for management, protection, and preservation of these trails. The National Historic Trails in Wyoming, which · include the Oregon, California, Mormon Pioneer, and Pony Express Trails, as well as the Nez Perce Trail, were designated by Congress through the National Trails System Act (P.L. 90-543; 16 U.S.C. 1241-1251) as amended through P.L. 106-509 dated November 13, 2000. Protection of the National Historic Trails is normally considered under the National Historic Preservation Act (P.L. 89-665; 16 U.S.C. 470 et seq.) as amended through 1992 and the National Trails System Act. Additionally, Executive Order 13195, "Trails for America in the 21s~ Century," signed January 18, 2001, states in Section 1: "Federal agencies will...protect, connect, promote, and assist trails of all types throughout the United States. This will be accomplished by: (b) Protecting the trail corridors associated with national scenic trails and the high priority potential sites and segments of national historic trails to the degrees necessary to ensure that the values for which each trail was established remain intact." Therefore, the BLM will be considering all impacts and intrusions to the National Historic Trails, their associated historic landscapes, and all associated features, such as trail traces, grave sites, historic encampments, inscriptions, natural features frequently commented on by emigrants in journals, letters and diaries, or any other feature contributing to the historic significance of the trails. Additional National HistOric Trails will likely be designated amending the National Trails System Act. When these amendments occur, this notice will apply to those newly designated National Historic Trails as well. STRATEGY: The BLM will proceed in this objective by conducting a viewshed analysis on either side of the designated centerline of the National Historic Trails in Wyoming, except, at this time, for the Nez Perce Trail, for the purpose of identifying and evaluating potential impacts to the trails, their associated historic landscapes, and their associated historic features. Subject to the viewshed analysis and archaeological inventory, reasonable mitigation measures may be applied. These may include, but are not limited to, modification of siting or design of facilities to camouflage or otherwise hide the proPosed operations within the viewshed. Additionally, specification of interim and final reclamation measures may require relocating the proposed operations within the leasehold. Surface disturbing activities will be analyzed in accordance with the National Environmental Policy Act of 1969 (P.L. 91-190; 42 U.S.C. 4321-4347) as amended through P.L. 94-52, July 3, 1975 and P.L. 94-83, August 9, 1975, and the National Historic Preservation Act, supra, to determine if any design, siting, timing, or reclamation requirements are necessary. This strategy is necessary until the BLM determines that, based on the resulta of the completed viewshed analysis and archaeological inventory, the existing land use plans (Resource Management Plans) have to be amended. The use of this lease notice is a predecisional action, necessary until final decisions regarding surface disturbing restrictions are made. Final decisions regarding surface disturbing restrictions will take place with full public disclosure and public involvement over the next several years if BLM determines that it is necessary to amend existing land use plans. GUIDANCE: The intent of this notice is to inform interested parties (potential lessees, permittees, operators) that when any oil and gas lease contains remnants of National Historic Trails, or is located within the viewshed ora National Historic Trails' designated centerline, surface disturbing activities will require the lessee, permittee, operator or, their designated representative, and the surface management agency (SMA) to arrive at an acceptable plan for mitigation of anticipated impacts. This negotiation will occur prior to development and become a condition for approval when authorizing the action. THIS NOTICE APPLIES TO ALL PARCELS 030 THIS STIPULATION APPLIES TO ALL PARCELS The U.S. Fish and Wildlife Service (FWS) has proposed for listing under the Endangered Species Act (ESA) of 1973, the mountain plover (Charadrius montanus) as a threatened species. A listing package has been sent to the Director of FWS in Washington, D.C. for review/approval. The listing is very likely in the near future. Mountain plovers migrate to Wyoming to nest each year and are confirmed to nest in every county. Even though they arrive in early April and complete their nesting by the middle of July, alteration of habitat throughout the rest of the year can have a detrimental effect on these birds as they generally return to the same location to nest each year. The exploration and development of'oil and gas leases may have a detrimental effect on mountain plovers and their habitat: Some of the land encompassed in the lease parcels described in the February 12, 2002 Notice of Competitive Oil andGas Lease Sale contain habitat for the mountain plover and have been designated as such. Most of the parcels have not been specifically inventoried for the presence or absence of mountain plovers, so reliable information is not available at tlfis time. This information notice is to alert potential purchasers that al_.! of the parcels in this sale are subject to the ESA and may contain habitat for mountain plovers (even if not specifically denoted herein). Inventories will be required when potential mountain plover habitat exists within a lease parcel. If the birds are then found to be present, then additional protective measures most likely will be added to allow for any disturbing activities. If a lease parcel contains no mountain plover habitat or if the birds are not present, then the lease parcel may be developed without restrictions for mountain plovers. If at a later date mountain plovers occupy previously unoccupied habitat within a lease parcel, then additional protective measures will most likely be added. Please see section 6 of the Lease Terms for additional information regarding threatened or endangered species. 031 VVYVV157434 TIMING LIMITATION STIPULATIONS -TLS No surface use is allowed during the following time period(s). This stipulation does not apply to operations and maintenance of production facilities. (1) Feb 1 to Jul 31; On the lands described, below: (2) as mapped on the Kemmerer RMp stipulations overlay; For the purpose of (reasons): (3) protecting Sage Grouse and Raptor nesting habitat. Any changes to this stipulation will be made in accordance with the land use plan and/or the regulatory provisions for such changes. {For guidance on the use of the stipulation, see BLM Manual 1624 and 3101 or FS Manual 1950 and 2820.) 032 WYW157434 CONTROLLED SURFACE USE STIPULATION - CSU Surface occupancy or use is subject to the following special operating contraints. (1) Surface occupancy or use within 1/4 mile or visual horizon of trail whichever is closer may be restricted or prohibited unless the operator and surface managing agency arrive at an acceptable plan for mitigation of anticipated impacts; On the lands described below: (2) as mapped on the Oregon/Mormon Pioneer National Historic Trails Management Plan; For the purpose of: (3) protecting cultural and scenic values of the Oregon Trail. Any changes to this stipulation will be made in accordance with the land use plan and/or the regulatory provisions for such changes. (For guidance on the use of the stipulation, see BLM Manual 1624 and 3101 or FS Manual 1950 and 2820.) W YW 1574..f, 4 ATTACHMENT TO EACH LEASE O33 NOTICE TO LESSEE Provisions of the Mineral Leasing Act (MLA) of 1920, as amended by the Federal Coal Leasing Amendments Act of 1976, affect an entity's qualifications to obtain an oil and gas lease. Section 2(aX2)(A) of the MLA, 30 U.S.C. 201 (a)(2)(A), requires that any entity that holds and has held a Federal coal lease for 10 years beginning on or after August 4, 1976, and who is not Producing coal in commercial quantities from each such lease, cannot qualify for the issuance of any other lease granted under the MLA. Compliance by coal lessees with Section 2(a)(2)(A) is explained in 43 CFR 3472. In accordance with the terms of this oil and gas lease, with respect to compliance by the initial lessee with qualifications concerning Federal coal lease holdings, all assignees and transferees are hereby notified that this oil and gas lease is subject to cancellation if.' (1) the initial lessee as assignor or as transferor has falsely certified compliance with Section 2(a)(2)(A), or (2) because of a denial or disapproval bY a State Office of a pending coal action, i.e., arms-length assignmem, relinquishment, or logical mining unit, the initial lessee as assignor or as transferor is no longer in compliance with Section 2(a)(2)(A). The assignee, sublessee or transferee does not qualify as a bona fide purchaser and, thus, has no rights to bona fide purchaser protection in the event of cancellation of this lease due to noncompliance with Section 2(a)(2)(A). Information regarding assignor, sublessor or transferor compliance with Section 2(a)(2)(A) is contained in the lease case file as well as in other Bureau of Land Management records available through the State Office issuing this lease.