HomeMy WebLinkAbout894791Fm'm 3100-1lb
(October 199Z) ~
UNITED. STATES:
DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT. ~
OFFER TO LEASE AND LEASE FOR oIL AND GAS
Serial NO.
~7Y"vV 15~596
Street
CiR. State, Zip Code
The understgned Ireverse) offers to lease all or any of the lands in item 2 that are available for lease pursuant to Ibe Mineral Leasing Act of 1920. as amended and supplemented (30 U.S.C. 181
et seq.), the Mineral Leasing Act for.Acqu red Lands. of 1947 as amended (30 U.S.C. 351-359). the Anomey General's Opinion of April 2. 1941 (40 Op. Atty. Gen. 41). or the
READ 1NSTRUCTIONS BEFORE COMPLETING Future rental payments must be made
..'-. C{~NJJDOR F,~LC)I~T{O~q,:~.C,. =... on or before the anniversat~ date to:
................................. Minerals Management Service
7720 E B'ELLEVIEW #B-102 .... Royalty Management Program
ENGLEWOOD, CO80111 P.O. Box 5640
Denver. CO 80217
2. This application/offer/lease is for: (Check only One) ~ PUBLIC DOMAIN LANDS [] ACQUIRED LANDS (percent U.S. interest )
Surface managing agency il~ other than BLM: Unit/Pro,leet - ' '
Legal description of and requesled ' ' *Parce No.: £ ' ' *Sale'Date (m/d/y): / '
T R. Meridian State County ' ' :
Amount remiue0: Filing
3_ Land'included in lease:
T
0240N
'89t 791
Rental fee $.
~ NOT WRITE BELOW THIS LINE
'R.
1150W
010 .ALL;
0t 1 ALL;
014 N2,S2SW, SE;,
015 ALL;
MerMian
06th
State ~¢y.. County
": Lincoln
Total acres in lease 2480.00
Rental relaiqed. $
This lease is issu~ granting tl~e ¢~i~i'Ve:~ight to drill for. mm'e. exiract, remove ano dispo~se of all the 0il and gas texcept helium1 in the lands described in Item 3 together w,th the right to'build
and maintain necessary _iu0p/q.ve~eqtsJh.er4ppou for the term indicated below, subject to renewal or cxtcnslgn in accordance wah the appropr ate easing aumqrity,. R ghu; granted are subject to
applicable laws. the~e~s, qoifi&i(j~'~, ~l_~j~ched Stipu.lations of this lease, the Secretary of the' Intcrio~:s r~gulations and formal orders in effect as of lease issiian~
orders I~reafier promulgated wfien:nbr inconsi'stem With leas~ rights .granted or qpecific.provisi~n$:,of ~his lease.' - ~ -;.'.'- '' ~ :.. · : :
NOTE: This lease is issued Io the high b alder pursuant lo his/her duly executed bid or nomination form submitted un~ec 43 CFR M'20 and is ~ubj~ci
~ Other EFFECTIVE DATE OF LEASE
4. fa) Unders]gued certifies that (1) offeror is n citizen of the United States; ,an ~sociation o[ such citizens; a municipality; or a corporation orgnnized under the laws of the United St~qtes or of any
SLqte or Territory thereof; (2) all parties holding an'~e[ees.~?n.' th,e. offer are m. comPbance' ' w,t.h' 43, CFR 3!00 and the lea.stag' antihero,eS; (3)'' ol~ferot~s chargeable inlerests, direct and indirect, in each
public domain and acquired lands SCl~qratcl¥ in thc . m ~t~c r~o not exeeea 246,080 acres Jn od and-gas ]c~es (o[ which up to 200,000 acres may bc in oll and g~ options), or 300,000 acres in
Ic~es in each le~asing District in Ad~ka o[ which up to 200,000 acres may be in options, (4) offeror is not considered a minor under thc laws o[ the State in which thc Innds covered by this offer arc
located; (5) offeror is in compliance with qualifications concerning Federal coal le<~c holdings provided n see. ?.(a~2XA) of.the Mineral Lea~ir~g Act,; {'6.) o ~[~r,o~' is,in compliance with reclamation
req,,~re, ,me?ts .for ,'dl Federal mi ,."~d g~ lease .holding ..... .quired by sec. 17(g) of the Mineral Leasing Act; and (7) offeror is not in vioind~
~o~,unuers'gned agr~ea .U~at s,gnarure to ~s off. ..... . t,tut. ....pt=ce of .th's lease, .mclu~'ng. all t .... nd,t/om, and st!pulatlons, of whld; o fi~r~h~-~ I~e~n'~i'~en noti~ and any amendment
tbelandrle_<cr;hedi~'m.--~'.Ld , . .~" . ....... ' ~'Y'~,~prop~.ou"~otacc,-~mceoe~oretms~eas~,annmenomentt0thisle~c
This offer will be rejected and will afford offeror no priority if It is not properly completed and executed in accordance with the regulutiens, or ifjt. L~ not accompanied by the required
oP~r Yr;;~nl~tUi;Sn;C~s i,~co alnyOOL:~eky~l~i;nrl~e.jfu~.s~YctiP~on.r~on knowingly and willfully to make to any Department or agency of the United Stat~,mfy ~aLse?~lctltlous or fraudulen, slatements
',..-',sigu?re of Lessee o ,.orney-in-fac.,
Sec. I. Rentals--Rentals shall be paid to proper office of lessor in edvance of each lease year.
Annual rental rates per acre or fraction thereof are:
fa) Noncompetitive lease. $1.50 for thc first 5 yearsi'thcreafier $2.00:
(b) Competilive lease, $1.50; for the first 5 years; thereafter $2.00;
(c) Other, see attachment, or
as specified in regulations at the time this lease is issued.
If this lease or a portion thereof is committed to an approved cooperative or unit plan which
includes a well capable of producing leased resources, and the plan contains a provision for
allocat on of production, royalties shall be paid on the production allocated lo this lease. However,
annual rentals shall continue th be due at the rate specified in (a), (b),, or (c) for those lands
not within a participating area.
Failure to pay annual rental, if due, on or before the anniversary date of this lease (or next
official working day if office is Closed) shall automatically terminate this lease by operation
law. Renlals may be waived, reduced, or suspended by the Secretary upon a sufficient showing
by lessee.
Sec. 2. Royalties--Royalties shall be paid to proper office of lessor. Royalties shall be computed
in accordance with regUlations on production removed or sold. Royalty rates are:
(a) Noncompetitive lease, 12 ~,6 %;
(b) Competitive lease. 12V/%;
(c) Other. see attachment; or
as specified in regulations at the time this lease is issued.
Lessor reserves the right to specify whether royalty is to be paid in value or in kind, and the
right to establish reasonable minimum values on products after giving lessee notice and an
opportunity to be heard. When paid in value;'royalties shall be due and payable on the last day
of the month following the month in which production occurred. When paid in kind, production
shall be delivered, unless otherwise agreed to by lessor, in merchantable condifiou on the premises
where produced without cost to lessor. Lessee shall not be required to hold such production
in, storage beyond the last day of the month following the month in which production occurred,
nor shall lessee be held liable roe loss or destruction of royalty oil or other products in storage
from causes beyond the reasonable control of lessee.
Minimum royalty in lieu of rental of not less than the rental which otherwise would be required
for that lease year shall be payable at the end of each lease year beginning on or after a discovery
in paying quantities. This minimum royalty may be waived, suspended, or reduced, and the
above royalty rates may be reduced, for all or portions of this lease if the Se~tar,jr~Jete~'m b~s'
that such action is necessary to encourage the greates u t mate recovery Of the leas{'~d,re$~rces,
or is otherwise justified. '
.....An interest charge shall be assessed.., on ale roy all3' pa y ments or underpay ments?'~ a¢c,o~danc~"~ : '
wtth the reoeral Od and Gas Royalty Management Act of 1982 (FOGRMA) (30 U';'Si'~. 1701i~
Lessee shall be liable for royalty payments on oil and gas lost or wasted from a lease site when
such loss or waste is due to negligence on the part of the operator, or due to the failure to comply
v.'ith any rule, regulation, order, or citation issued under FOGRMA or the leasing authority.
Sec. 3. Bonds--A bond shall be filed and maintained for lease operations as required under
regulations.
Sec. 4. Diligence, rate of development, unilb'~ation, and drainage--Lessee shall exercise reason~le
diligence in developing and produc ag. and shall prevent unnecessary damage to. loss of, or
waste of leased resources. Les~Sr reserves right th specify ~'ates of development and prodoction
· in the public interest and to require lessee to subscribe to a cooperative or unit plan, within 30
days of notice, if deemed necessary for proper devflopment and operation of area, field, or pool
embracing these leased lands· Lessee shall drill and produce wells necessary to protect leased
lands from drainage or pay compensatory royalty for drainage in amount determined by lessor.
Sec. 5. Documents, evidence, and inspection--Lessee shall rde with proper office of lessor.
not later than 30 days after effective date thereof, a~y contract or evidence of other arrangement
for sale or disposal of production. At such times and in such form as lessor may prescribe, lessee
shall furnish detailed statements showing anaounts and quality of all products removed and sold.
proceeds therefrom, and amount Used rot produ~ti0n purpf~es or Lm~,0idably Inst. Lessee may
be required to provide plats and schematic diagrams showing development work and
improvements, and reports With respect to parties in interest, expenditures, and depreciation
costs. In the form prescribed by lessor, lessee shall keep a dai y drilling reefed, a log, tni'~nviafi$fl
on well surveys and tests, and a record of subsurface investigations and furnish copies to lessor
when required. Lessee shall keep open at all reasonable t mos for inspection by any authorized.
officer of lessor, the leased premise~ and ali w~lls; imprQvements.,machinery, and fixtur~ fl~reon,
costs claimed as manu facturin~g, prepai'atiun, and/or transportation costs. All such records shall
be maintained in lessee's accounting offices for future audit by lessor· Lessee shall maintain
required records for 6 years after they a~'e generated ne, if art'-audit or investigation is underway,
until released of the obligation th maintain such records by lessor.
During existence of this lease, information obtained under this sedtion shall be closed th
inspection by the public in accordance with the Freedom of Information Act (5 U.S.C. 552).
Sec. 6. Conduct of operations--Lessee shall conducl operations in a manner that minimizes adverse
impacts to the land, air, and water, to cultural, biological, visual, and other resources, and to
other land uses or users. Lessee shall take reasonable measures deemed necessary by lessor to
accomplish the intent of this seetion~ To the extent consistent with lease fights granted, such
measures may inelud9, but are not limited to, modification to siting or dnsigu of facilifins, timing
of operations, and specification of interim and final reclamation measures. Lessor reserves the
right to continue existing uses and to authorize future uses upon or in the leased lands, including
the approval of casements or rights,f-way. Such uses shall be conditioned so as to prevent
unnecessary or unreasonable interference with rights of lessee.
Prior to disturbing the surface of the leased lands, lessee 'shall contact lessor to be apprised
of procedures to be followed and modifications or reclamation measures that may be neeesaary.
Areas th be disturbed may require inventories or special studies to determine the extent of impacts
to other resources. Lessee may be required to complete minor inventories or short term special
studies under guidelines provided by lessor. If in the conduct of operations, threatened or
endangered species, objects or historic or scientific interest, or substantial unanticipated
environmental effects are observed, lessee shall immediately contact lessor. Lessee shall cease
any operations that would resull in the destruction of such species or objects.
Sec. 7. Mining operatinns--To the extent that impacts from mining operations would be
substantially different or greater than those associated with normal drilling operations, lessor
reserves the eight to deny approval of such operations.
See. 8. Extraction of heliura--Lessor reserves the option of extracting or having extracted helium
from gas production in a manner specified and by means provided by lessor at no expense or
loss to lessee or owner of the gas. Lessee shall include in any contract of sale of gas the provisions
of this section.
Sec. 9. Damages to property--Lessee shall pay lessor for damage to lessor's improvements,
and shall save and hold lessor harmless from all claims for damage or harm to persons or property
as a result of lease operations.
Sec. In. Protection of diverse interests and equal opportunity--Lessee shall: pay when due all
:: ?~'~ legally assessed and levied under laws of the State or the United States; accord all employees
~Ornplete fre~, om of purchase; pay all wages at least Iv'ice each month in lawful money of the
Umted S~es~i~m~.~tam a safe working envtronmenl in accordance with standard industlT practiCeS;
and take measures necessary t6 'protect. the health and safeiy of'the public.
Lessor reserves the right to ensure thai pro~uctJon is sold al reasonable prices and to prevent
monopoly. If lessee operates a pipeline.~ or owns controlling intef~£i~i ~i pipeline or a company
operating a pipeline, whic~ 'rfi:i~l~ :0p~'~i'ed a~:cessible to oil de~ivf~ :f;orn these leased lands,
lessee shall comply with s~ction 28 of th~ Minci-alILea~ ~g Act of 1920.
Lessee shall comply with Executive Order' d0.'i 1246 of September 24, 1965, as amended,
and regulations and relevant orders of the Seerctary of Labor issued pursuant thereto. Neither
lessee nor lessee's subcontractors shall maintain segregated facilities.
Sec. I I. Transfer of lease interests and relinquishment of lease--As required by regulations,
lessee shall rde with lessor any assignment or other transfer of an interest in this lease. Lessee
may relinquish this lease or any legal subdivision by filing in the proper ofiqee n written
relinquishmenl: which shall be effective as of the date of Filing, subject to the continued obligation
of the lessee and surety to pay all accrued rentals 'and royalties.
Sec. 12. Delivery of premises--At such time as all or portions of this lease are returned to lessor,
lessee shall place affected wells in condition for suspension or abandonment, reclaim the land
as specified by lessor and. within a reasonable period of time, remove equipment and
improvements no{ deemed necessary by lessor for preservation of producible wells·
Sec. 13. Proceedings in case of default--if lessee fails to comply with any provisions of this
lease, and the noncompliance continues for 30 days after written notice thereof, this lease shall
he subject to cancellation urfless or until the leasehold contains a well capable of production
of oil or gas in paying qnantities, or the lease is committed to an approved cooperative or unit
plan or cornmunitization agreement which contains a well capable of production of unitized
substances in paying quantities· This provision shall not be construed to prevent the exercise
by lessor of any other legal and equitable remedy, including waiver of the default. Any such
remedy or waiver shall not prevent later cancellation for the same defanll occurring at any other
ii,me; Lessee. shall b~ {ubject to applicable pr?visions and pe.,r?tie{ ~f FOGRMA {30 U.S.C. 1701).
and all books, accounts, maps, and records relative to operations, surveys, or investigations Sec. 14. Heirs and successors-in-intel:est--Each obligaiion of this 'lease shall ~xtend to and be
· on or in the leased lands. L~s~.shall main,tala c~pies ofall.contracts~ sale,s.ag~eem~e0ts, ac~oimting .... ... ~inding upon, ~nd every .benefit hereof shall-inure to-the heirs; executors, administrators
records, and documentation.suCh as bit ngs" fi('o cos fir s mi af docur~entat 0ii that ~upl3ort§ 'Sui:cessors, beneficiaries, 'or 'ass{gnees"of respect'ix;e p~ii~s' hei~eto.
,.?.:
WY W 156 5 9~
O87
MULTIPLE MINERAL DEVELOPMENT 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
W 1 56 5 %
LEASE NOTICE NO. 1
O88
Under Regulation 43 CFR 3101.1-2 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 frozen 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
highways, 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/l~ee 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
1 56 5 96
L~A~ NOT~C~ NO. ~
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. 1241-125 I) as amend6d
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 21 ~' 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 results 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 eenterline, 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
WYW 156 5.96 '
TH/S STIPULATION APPLIES TO AI.L PARCELS
090
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 l/sting 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 August 6, 2002, Notice of Competitive Oil and Gas 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 this time. This information notice is to alert potential purchasers that all 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, ff 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, ff 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.
09I
WYW156596
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) Nov 15 to Apr 30;
On the lands described below:
(2) as mapped on the Kemmerer RMP stipulations overlay;
For the purpose of (reasons):
(3) protecting big game crucial winter range.
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.)
WYW156596
CONTROLLED SURFACE USE STIPULATION - CSU
Surface occupancy or use is subject to the following special operating contraints.
(1) Surface occupancy or use within crucial big game winter range will be restricted or prohibited unless the
operator and surface managing agency arrive at an acceptable plan for mitigation of anticipated impacts. This
plan may include development, operations, as well as the number, location, and maintenance of facilities;
On the lands described beloW:
(2) as mapped on the Kemmerer RMP stipulatiOns overlay;
For tbe purpose of:
(3) limiting winter access, protecting habitat quality, and preventing the loss of crucial big game winter range.
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.)
1 56 5 96
. ,-':' 093
ATTACHMENT TO EACH LEASE
NOTICE TO LESSEE
Provisions of the Mineral Leasing Act 0VILA) 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(a)(2)(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 assignment, 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.'