[Code of Federal Regulations]

[Title 43, Volume 2]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 43CFR3140.1-4]



[Page 408-409]

 

                    TITLE 43--PUBLIC LANDS: INTERIOR

 

    CHAPTER II--BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR

 

PART 3140_LEASING IN SPECIAL TAR SAND AREAS--Table of Contents

 

Subpart 3140_Conversion of Existing Oil and Gas Leases and Valid Claims 

                       Based on Mineral Locations

 

Sec.  3140.1-4  Other provisions.



    (a) A combined hydrocarbon lease shall be for no more than 5,760 

acres. Acreage held under a combined hydrocarbon lease in a Special Tar 

Sand Area is not chargeable to State oil and gas limitations allowable 

in Sec.  3101.2 of this title.

    (b) The rental rate for a combined hydrocarbon lease shall be $2 per 

acre per year and shall be payable annually in advance.

    (c)(1) The royalty rate for a combined hydrocarbon lease converted 

from an oil and gas lease shall be that provided for in the original oil 

and gas lease.

    (2) The royalty rate for a combined hydrocarbon lease converted from 

a valid claim based on a mineral location shall be 12\1/2\ percent.

    (3) A reduction of royalties may be granted either as provided in 

Sec.  3103.4 of this title or, at the request of the lessee and upon a 

review of information provided by the lessee, prior to commencement of 

commercial operations



[[Page 409]]



if the purpose of the request is to promote development and the maximum 

production of tar sand.

    (d)(1) Existing oil and gas leases and valid claims based on mineral 

locations may be unitized prior to or after the lease or claim has been 

converted to a combined hydrocarbon lease. The requirements of 43 CFR 

part 3180 shall provide the procedures and general guidelines for 

unitization of combined hydrocarbon leases. For leases within units of 

the National Park System, unitization requires the consent of the 

Regional Director of the National Park Service in accordance with Sec.  

3140.4-1(b) of this title.

    (2) If the plan of operations submitted for conversion is designed 

to cover a unit, a fully executed unit agreement shall be approved 

before the plan of operations applicable to the unit may be approved 

under Sec.  3140.2 of this title. The proposed plan of operations and 

the proposed unit agreement may be reviewed concurrently. The approved 

unit agreement shall be effective after the leases or claims subject to 

it are converted to combined hydrocarbon leases. The plan of operations 

shall explain how and when each lease included in the unit operation 

will be developed.

    (e) Except as provided for in this subpart, the regulations set out 

in part 3100 of this title are applicable, as appropriate, to all 

combined hydrocarbon leases issued under this subpart.



[47 FR 22478, May 24, 1982, as amended at 48 FR 33682, July 22, 1983; 55 

FR 12351, Apr. 3, 1990; 61 FR 4752, Feb. 8, 1996; 70 FR 58614, Oct. 7, 

2005]