[Code of Federal Regulations]
[Title 10, Volume 4]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 10CFR760.1]

[Page 406-409]
 
                            TITLE 10--ENERGY
 
                    CHAPTER III--DEPARTMENT OF ENERGY
 
PART 760_DOMESTIC URANIUM PROGRAM--Table of Contents
 
Sec.  760.1  Uranium leases on lands controlled by DOE. (Domestic Uranium 

Program Circular No. 760.1, formerly (AEC) Domestic Uranium Program Circular 

8, 10 CFR 60.8).

    (a) What this section does. This section sets forth regulations 
governing the issuance of leases to permit the exploration for and 
mining of deposits containing uranium in public lands withdrawn from 
entry and location under the general mining laws for use of

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DOE, and in certain other lands under DOE control.
    (b) Statutory authority. The Atomic Energy Act of 1954, as amended 
(68 Stat. 919, 42 U.S.C. 2011 et seq.) is the authority for this 
section.
    (c) Who may hold leases. Only parties who are (1) citizens of the 
United States; (2) associations of such citizens; or (3) corporations 
organized under the laws of the United States or territories thereof, 
are eligible lessees under this section. Persons under 21 years of age 
or employees of DOE are not eligible.
    (d) Issuance of leases through competitive bidding. Except under 
special circumstances as provided in paragraph (u) of this section, each 
lease will be offered through competitive bidding and, except as 
otherwise provided in this paragraph (d), will be issued to the 
acceptable bidder offering the highest bid. The bid may be on a cash 
bonus, royalty bonus, or other basis as specified in the invitation to 
bid. Invitations to bid on some of the lands may be limited to small 
business concerns as defined by the Small Business Administration, and 
such invitations may limit the number of leases to be awarded to each 
bidder. In such cases DOE will accept those bids which, in relation to 
other bids received pursuant to the invitation, are most advantageous to 
the Government. Before any lease is awarded, DOE may require high 
bidders to submit a detailed statement of the facts as to such matters 
as their experience, organization, and financial resources. DOE reserves 
the right to reject any and all bids.
    (e) Solicitation of bids. Announcements of the availability of 
invitations to bid for a lease will be publicly posted and published. 
Copies of such announcements will also be mailed to parties who submit 
to DOE's Grand Junction, Colorado, Office subsequent to publication in 
the Federal Register of this (DOE) Domestic Uranium Program Circular 
760.1, written requests that their names be placed on a mailing list for 
receipt of such announcements. The invitations containing information 
for preparation and submission of bids will be available at the Grand 
Junction Office, and will be mailed only on specific written request, 
following announcement of their availability. Invitations will specify 
the land to be leased, the basis on which bids are to be submitted, the 
amount of the monetary deposit which must be transmitted with the bid, 
the place and time the bids will be publicly opened, the term, royalty 
and other payments, performance requirements, and other payments, 
performance requirements, and other conditions which will become a part 
of the lease. In addition, data which have been assembled pertaining to 
the lands to be leased will be available for public inspection at the 
Grand Junction Office; copies will also be available for purchase.
    (f) Bidding requirements; deposits. All bids must be filed at the 
place and prior to the time set forth in the invitation. Each bid must 
be sealed and accompanied by a deposit, in the form of a certified 
check, cashier's check, or bank draft, in an amount as specified in the 
invitation to bid. Deposits of unsuccessful bidders will be returned. If 
the bidder is an individual, he must submit with his bid a statement of 
his citizenship and age. If the bidder is an association (including a 
partnership), the bid shall be accompanied by a certified copy of the 
articles of association together with a statement as to the citizenship 
and age of its members. If the bidder is a corporation, evidence that 
the officer signing the bid had authority to do so and a statement as to 
the State of incorporation shall also be submitted.
    (g) Awarding of lease. Following public opening of the bids, DOE, 
subject to the right to reject any and all bids, will determine the 
successful bidder. In the event the highest acceptable bids are tie 
bids, a public drawing will be held by DOE to determine the successful 
bidder. After notice of award and within the time period prescribed in 
the invitation, the successful bidder shall execute and return to DOE 
three (3) copies of the lease and shall remit payments due as prescribed 
in the invitation. Should the successful bidder fail to execute the 
lease, or make payments as required, in accordance with the terms of the 
invitation, or fail to otherwise comply with applicable regulations, he 
may be required to forfeit any payments previously made, and lose

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any further right or interest in the lease. In such event, DOE may offer 
the lease to the next highest acceptable bidder, reoffer the lease for 
bidding, or take such other action as appropriate. If the awarded lease 
is executed by the bidder through an agent, evidence of authorization 
must be submitted.
    (h) Dating of lease. A lease issued under this section will 
ordinarily be effective as of the date it is signed on behalf of DOE.
    (i) Term of lease. A lease shall be for the period specified in the 
invitation to bid. When deemed desirable by DOE, the lease will provide 
that the lease term may be extended at the option of the lessee for a 
specified period and upon stipulated conditions.
    (j) Payments to DOE under lease. Royalty payments shall be specified 
in the invitation to bid; base royalty, minimum royalty, advance 
royalty, and rental payments, or a combination thereof may be required.
    (k) Title to unshipped ore. DOE, unless it approves otherwise, 
reserves all right and title to property in and to all ores and other 
uranium- or vanadium-bearing material not removed from the leased 
premises within 60 days after expiration or other termination of the 
lease. Unless DOE approves otherwise, all material mined from the leased 
premises and not marketed by the lessee shall remain on the leased 
premises.
    (l) Environmental controls. Each lease will contain such provisions 
as may be deemed necessary by DOE with respect to the lessee's use of 
the leased lands. DOE may require periodic submission of plans for 
exploration and mining activities including provisions for control of 
environmental impact. The lessee will be required to conduct operations 
so as to minimize adverse environmental effects, to comply with all 
applicable State and Federal statutes and regulations and to the extent 
stipulated in the lease agreement, will be held responsible for 
maintenance or rehabilitation of affected areas in accordance with plans 
submitted to and approved by DOE.
    (m) Performance requirements. A lease shall require that 
exploration, development, and mining activities, as appropriate, be 
conducted on the leased premises with reasonable diligence, skill, and 
care as required to achieve and maintain production of uranium ore at 
rates consistent with good and safe mining practice and with market 
conditions.
    (n) Health and safety requirements. A lease (1) shall require that 
exploration, development, and mining activities, as appropriate, be 
conducted on the leased premises with due regard for the health and 
safety of those involved, and (2) shall include appropriate measures for 
the control of radiation exposure in the mines.
    (o) Lessee's records. Leases shall provide that the lessee keep and 
make available to DOE such records as DOE deems necessary for the 
administration of the lease and its leasing program.
    (p) Rights of DOE. DOE reserves the right to enter upon the leased 
property and into all parts of the mine for inspection and other 
purposes. DOE also reserves the right to grant to other persons 
easements or rights of way upon, through, or in the leased premises. DOE 
and the Comptroller General of the United States or any of his duly 
authorized representatives shall, until the expiration of 3 years after 
termination or expiration of lease, have access to and the right to 
examine any directly pertinent books, papers, and records of the lessee 
involving transactions related to the lease.
    (q) Relinquishment of leases. A lease may be surrendered by the 
lessee upon filing with and approval by DOE of a written application for 
relinquishment. Approval of the application shall be contingent upon the 
delivery of the leased premises to DOE in a condition determined to be 
satisfactory to DOE. The lessee shall continue to be liable for the 
payment of all royalty and other debts due DOE.
    (r) Assignment of leases. Any transfer of a lease or any interest 
therein or claim thereunder, will not be recognized unless and until 
approved by DOE in writing. Ordinarily, DOE will not approve any 
transfer of a lease which involves overriding royalties or deferred 
payments of any kind to the transferor.
    (s) Cancellation. Any lease may be cancelled by DOE whenever the 
lessee fails to comply with the provisions of

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the lease. Failure of DOE to exercise its right to cancel shall not be 
deemed a waiver thereof.
    (t) Form of lease. Leases will be issued on forms prescribed by DOE.
    (u) Noncompetitive leases. Under special circumstances, where DOE 
believes it to be in the best interest of the Government, DOE at its 
discretion may award or extend leases on the basis of negotiation.
    (v) DOE decisions. All matters connected with the issuance and 
administration of leases will be determined by DOE whose decisions shall 
be final and conclusive.
    (w) Definitions. DOE as used in this section means the United States 
Department of Energy or its duly authorized representative or 
representatives.
    (x) Multiple use of land. Leases issued under this section shall 
provide that operations under them will be conducted so as not to 
interfere with the lawful operations of any third party having a lease, 
permit, easement, or other right or interest in the premises.
    (y) Compliance with State and Federal regulations. Every lease shall 
provide that the lessee is required to comply with all applicable State 
and Federal statutes and regulations.

(Secs. 66, 161, 68 Stat. 933, 948, as amended; 42 U.S.C. 2096, 2201)

[41 FR 56783, Dec. 30, 1976]