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HomeMy WebLinkAbout906288or,n 3100-11h UNITED STATES S~rial No. ~ [ :)cto~er L0~2) DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT ~ ~?0394 WYW 159760 · OFFER TO LEASE AND LEASE FOR OIL AND GAS ~Jy-- Oc~g30-O01 -~ ................... g ,-~c, [or r, cqmreo t.arms o{ {~/, as.amenaeo ~u u.5.<. 351-359), the Anomey General's Qpinion of April 2. 1941' i~0"Op. 'Ati~.' G4n. 41), m; the" ~: ' Street City, State, Zip Code RE. ad} INSTRUCTIONS BEFORE COMPLETING - ASSOCIATED REsoURcEs INC" ~ 7318 AUGUSTA PINES DR' SPRING, TX'77389 ..... : This application/offer/lease is for: fCheck only One), ~3 PUBLicDOMAIN Surface managing agency if other'thl/n BLM: :: Unit/Project Legal description of land requested: ~'Parcel No.: '.:-i.:". '4 -..., -. Future rental payments must be made on or before the anniversary date to: '" Minerals Management Service Royalty Management Program P.O. Box 5640 Denver, CO 80217 [] ACQUIRED LANDS (Perce01~ ~J S ,.:S:jnteresl'.,,.,<,~., *SEE ITEM 2 IN INSTRUCTIONS BELOW PRIOR'TO'c~jMp~TiNG PARCEL'NUMBER AND SALE DATE. T. Meridian State '": ~ ., r< "~ RECEIVED 2/4/2005 at 11:53 RECEIVING # 906288 BOOK: S78 PAGE: 394 ...... CLERK KEMMERER Amount rcmined: Filing fee $ Rental fee $ Total acres applied for Total $ DO NOT WRITE BELOW THIS LINE Land included in lease: T. 0240N R. I130W Sec. 002 LOTS 2-4; 002 NESW,N2S E,SESE; 011 ALL; ~ ~..~ 014 ALL; 024 W2; Meridian 06th Statel,,V y County Lincoln Total acres 'in lease -. 1814.200 Rental retained S 779,9 '50 ; lease is issued granting the exclusive right to drill for, mine, ex[tact, remove and dispose of all the oil and gas (except helium) in the lands described in Item 3 together with the right to build maimam necessary improvements thereupon for the term indicated below subject to renewal or extension in accordance with the appropriate leasing authority. Rhghts granted are subject to icable laws. the terms, conditions and attached stipulations of this lease, the Secretar~ of the Interior's regulations and formal orders m effect as of lease issuance, and to regulations and formal :rs hereafter prommgated when not thconststem with lease rights granted or specific provtstons of t~is lease. rE: This lease is issued to the high bidder pursuant to his/her duly executed bid or nomination form submitted under 43 CFR 3120and is,..i subject~ '~, ! ¥ dnaflon and tho~ sp~:ifled on this form. ~:'=i5 .~t~'f=}L?,-'~"t~Lt"~,~q~ . { ~,o,,,.the provislon~ of that bid or e and primary term of lease: :~ · :. c · ~...t.~9 ~_.' q"l ' : _ .} :~ ~ ~ THE UNITED S~S OF AME~CA Chief, Fluid Minorals Adjudication JUL 2 (Title} (Date) DAT OF LEASE AUG 0 1 2004 ... '~oncompetitive lease (ten years) ~ompetitive lease (ten years) )ther 9 '2004 ,~ (a) U;ri~lersigued certifies that (1) offeror is a citizen of the United States; an association of such citizens; a municipality; or a corpomdun organized under the laws of the United States or of any ;tote or '~iritory thereof; (9) all parties holding an interest in the offer are in compliance with 43 CFR 3100 and the leasing authorit es- (3) offeror's charge.lc interests direct and indirect, in each ,ubhe domino and acqmred lands separately m the same State do not exceed 246,080 acres m od and gas leases (of which up to 200,000 aCres may be inbil and eases in each leasing District in Alaska of which up to 200,000 acres may be in options, (4) offeror is not considered a minor under the taws of the State in which the lands covered by this offer are ccated; (5) offeror is in compliance with qunlifieations concerning, Federal coal lease holdings provided in sec. 2(aX2XA) of the Mineral Leasing A~tf ~6) 0ffero(is iL ¢0mpliancc with reclamation eqnirements foe all Federal oil and gas lease holdings as required by sec. 17(8) of the Mineral Lc,using Act; and (7) offeroe is not in violation of sec. 4 ~b) Undersigned agrees that signature to this offer constitutes acceptance of this lease, including all terms, conditions, and stlpniatiuns of which offeror h,~ been given notice, a~ any amendment ~r separate lease that may include any land described in this offer open to leasing at the time this offer wa.s filed but omitted foe any re~c~ from this lease. The offeror.further agrees'that thlg'offer ~anoot be withdrawn either in whole or in part. unless the withdrawal is received by the proper BLM State Office before this lease an amendment o th s I .... a se ar~e I:ease ~l~i~heWd~.d~,ers ha land described in the withdrawal, has been signed c~a behalf of the United States. This offer will be rejected and will .afford offeror no priority if it !s not prop~.rfy compleled and execuled in act°r~i with'tbe'reg ~u~a~ lion& or if i('is nOii~/:tompanied by tbe required Jymenta. 18 U.$.C. Sec. 16~1 makes ti a crime foe any person knowingly and willfully to make 1o any Department or agency oftbe U~ited States any false, fi~titious or fcaudulent statements 'uly executed this dayofU ~J ~J ~1~ ~Jj ,'9__ ~'Signamre of Lessee or AtiOrney-in:facO LEASE TERMS cc. I. Rentals--Rentals shall be paid to proper office of lessor in ad~/ance of each lease year. mnual rental rates per acre or fraction thereof are: (a) Noncompetitive lease.. $1.50 for the first 5 years; thereafter $2.00; (b) Competitive lease, $1.50; for the first 5 years; thereafter $2.00; (c) Other, see attachment, or s 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 ~cludes a well capable of producing leased resources, and the plan conhains a provision for llncation of producrinn, royalties shall be paid on the production allocated m this lease. However. nnual rentals shall continue to be due at the rate specified in (a), (b), or (c) for those lands ot within a participating area. Failure to pay annual rental, if due, on or before the anniversary date of this lease (or next ~cial working day if office is closed) shall automatically terminate this lease by operation of aw. Rentals may he waived, reduced, or suspended by the Secretary upon a sufficient showing y lessee. .cc. 2. Royalties--Royalties shall be paid to proper office of lessor. Royalties shall be computed ~ accordance with regulations on production removed or sold. Royalty rates are: (a) Noncompetitive lease, 12~A%; (b) Competitive lease, 12~.& %; (c) Other, see attachment; or s 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 ight to establish reasonable minimum values on products after giving lessee notice and an ppormnity to be heard. When paid in value, royalties shall be due and payable on the last day f the month following the month in which production occurred. When paid in kind, production Droll be delivered, unless otherwise agreed to by lessor, in merchantable condition on the premnies there produced withoul cost to lessor. Lessee shall not be required to hold such production '~ storage beyond [he last day of the month following the month in which production occurred, or shall lessee be held liable for loss or destruction of royalty oil or other products in storage rom causes beyond the reasonable control of lessee. Minimum royalty in lieu of rental of not less than the rental which otherwise would be required ~r that lease year shall be payable at the end of each lease year beginning on or after a discovery ~ paying quantities. This minimum royalty may be waived, suspended, or reduced, and the bore royalty rates may be reduced, for all or portions of this lease if the Secretary determines ~at such action is necessary to encourage the greatest ultimate recovery of the leased resources, r is otherwise justified. An interest charge shall be assessed on late royalty payments or underpayments in accordance tith the Federal Oil and Gas Royalty Management Act of 1982 (FOGRMA) (30 U.S.C. 1701). ,nssee shall be liable for royalty payments on oil and gas lost or wasted from a lease site when ach loss or waste is due to negligence on the part of the operator, or due to the failure to comply dth any rule, regulation, order, or citation issued under FOGRMA or the leasing authority. cc. 3. Bonds--A bond shall be fded and maintained for lease operations as required under :gulations. cc, 4. Diligence, rate of development, unitization, and drainage--Lessee shall exergise reasonable iligence in developing and producing, and shall prevent unnecessary damage to, loss of, or taste of lea~v~:l resources. Lessor reserves fight to specify rates of development and production ~ the public interest and to require lessee to. subscribe tO a cooperative or unit plan, within 30 ays of notice, if deemed necessary for proper development and operation of area, field, or pool mbracing these leased lands. Lessee shall drill and produce wells necessary to protect leased tnds from drainage or pay compensatory royalty for drainage in amount determined by lessor. cc. 5. Documents, evidence, and inspection--Lessee shall ftc with proper office of lessor, ot later than 30 days after effective date thereof, any contract or evidence of other arrangement >r sale or disposal of production, At such times and in such form as lessor may prescribe, lessee aall furnish detailed statements showing amounts and quality of all products removed and sold, roceods therefrom, and amount used for production purposes or unavoidably lost Lessee may e required to provide plats an4, schematic diagrams showing development work and nprovements, and reports with respect to parties in interest, expenditores, and depreciation :)sm. In the form prescribed by lessor, lessee shall keep a daily drilling record, a log, information n well surveys and tests, and a record of subsurface investigations and furnish copies to lessor 'hen required. Lessee shall keep open at all reasonable times for inspection by any authorized ~cer of lessor, the leased premises and 'all wells, improvements, machinery, and fixtures thereon, nd all books, accounts, maps, and records relative to operations, surveys, or investigations n or in the leased lands. Lessee shall maintain copies of all contracts, sales agreements, accounting ~cords, and documentation such as billings, invoices, or similar docum~entation that supports costs claimed as manufacturing, preparation, and/or ti'ansportation costsl All such records shall be maintained in lessee's accounting offices for future audit by lessor. Lessee shall maintain required ~-ecords for 6 years aher they are generated Or, if an liUdil or in~,estigati6n is underway, until released of the obligation to maintain such records by lessor. During existence of this lease, information obtained under thi~ section shall be ciosed to inspection by the public in accordance with the Freedom of lnfonnatinn Act (5 U.S.C. 552). Sec. 6. Conduct of operations--Lessee shall conduct 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 necessar)' by lessor to accomplish the intent of this section. To the extent consistent with lease fights granted, such measures may include, but are not limited to, modification to siting or design of facilities, 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 easements or rights-of-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 necessary. Areas to be disturbed may require inventories or special studies to determine the extent of impaots 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 of historic or scientific interest, or substantial unanticipa~d environmental effects are observed, lessee shall itnmediately contact lessor, Lessee shall cease 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 would be substantially different or greater than those associated with normal drilling operations, lessor reserves the right to deny approval of such operations. Sec. 8. Extraction of heliumlLessor reserves the option of extracting or having exl~acted 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 les~gr ~or damage !o lessor's impr~2,~eme~ ts and shall save and hold lessor harmless from all claims for damag~~ ~r I~rni to persons or pro~rty as a result of lease operations. Sec. 10. Protection of diverse interests and equal opportunity--Lessee shall: pay when due all taxes legally assessed and levied under laws of the State or the United States; accord all employees complete freedom of purchase; pay all wages at least twice each month in lawful money of the United States; maintain a safe working environment in accordance with standanl indnswy practices; and take measures necessary to protect the health 'and 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 controlling interest in a pipeline or a company operating a pipeline, which may be operated accessible to oil derived from these leased lands, lessee shall comply with section 28 of the Mineral Leasing Act of 1920. Lessee shall comply with Executive Order No. 11246 of September 24, 1965, as amended, and regulations and relevant orders of the Secretary of Labor issued pursuant thereto. Neither lessee nor lessee's subcontractors shall maintain segregated facilities. Sec. 1 I. Transfer of lease interests and relinquishment of lease--As required by regulations, lessee shall file 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 office a wfitlen relinquishment, which shall be effective as of the date Of £thng, subject to the continued obligation of the lessee and surety to pay all aecrned 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 not deemed necessary by lessor for preservation of producible wells. Sec. 13. Proceedings in case of default--lf lessee fails to comply with any provisions of this lease, and the noncompliance continues for 30 days after written notice thereof, this lease shall be subject to cancellation unless or until the leasehold contains a well capable of production of oil or gas in paying quantities, or the lease is committed to an approved cooperative or unit plan or communitization agreement which contains a well capable of production of unitized substances in paying quantities. This provision shall ndt he 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 Bot prevent later cancellation for the same default occurring at any other time. LeSsee shall be subj ~eeQQ ~pplicable provisio~ and penalties'~( FOGRMA (30 U.S.C. 1701). Sec. 14. Heirs and suc~e~"Sors~ir[-~nterest--Each obligation of this lease shall extend to and be binding upon, and every benefit hereof shall innre to the heirs, executors; ~ndr0inistrators' successors, beneficiaries, or assignees of the respective parties hereto. WYW159760 "t.'0396 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 WYWl_59760 0 0 5;8SS LENSE SOT CE NO. 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/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 BACKGROUND: LEASE NOTICE NO. 2 W 159 760 0398 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 2 lS~ 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 ifBLM determines that it is necessary to amend existing land use plans. GUIDANCE: The intent of this notice is to inform interested parties (potential lessees, perrnittees, operators) that when any oil and gas lease contains remnants of National Historic Trails, or is located within the viewshed of a 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. TI-HS NOTICE APPLIES TO ALL PARCELS ' ' 0399 WYW159760 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) Mar 1 to Jun 30; On the lands described below: (2) as mapped on the Kemmerer RMP stipulations overlay; For the purpose of (reasons): (3) protecting Sage Grouse 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.) .,.O400 WYW159760 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 Field Office GIS database; For the purpose of (reasons): (3) protecting Raptor nesting habitat. Any changes to this stipulation will be made in accordance with the land us~ plan and/or the regulatory provisions for such changes. (For guidance on the use of the stipulation, seeBLM Manual 1624 and 3101 or FS Manual 1950 and 2820.) WYW159760 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 Field Office GIS database; 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 us~[l~l.hh'~nd/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.) WYW159760 CONTROLLED SURFACE USE STIPULATION - CSU Surface occupancy or use is subject to the following special operating constraints. (1) Surface occupancy or use will 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 Kemmerer Field Office GIS database; For the purpose of: (3) protecting Class I and II Visual Resource Management Areas. 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.) 0 0G888 WYW159760 CONTROLLED SURFACE USE STIPULATION - CSU Surface occupancy or use is subject to the following special operating constraints. (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 Field Office GIS database; For the 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.) _ WYW159760 CONTROLLED SURFACE USE STIPULATION - CSU Surface occupancy or use is subject to the following special operating constraints. (1) Surface occupancy or use within 1/4 mile of a Sage Grouse strutting/dancing ground will 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 Kemmerer RMP stipulations overlay; For the purpose of: (3) protecting Sage Grouse breeding habitat. ATTACHMENT TO EACH LEASE 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(a)(2)(A) of the MLA, 30 U.S.C. 201 (a)(2)(A), requires that any emity 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 w/th 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.