1. Name
City, State, Zip
ACQUIRED LANDS (percent U.S. interest
PUBLIC DOMAIN LANDS2. This application/offer/lease is for:
(Check Only One)
Surface managing agency if other than Bureau of Land Management (BLM):
*Parcel No.: *Sale Date (mm/dd/yyyy):
Legal description of land requested:
*See Item 2 in Instructions below prior to completing Parcel Number and Sale Date.
Total acres applied for
Rental fee $
Amount remitted: Filing fee $
Total $
3. Land included in lease:
Rental retained $
Total acres in lease
This lease is issued granting the exclusive right to drill for, mine, extract, remove and dispose of all the oil and gas (except helium) in the lands
described in Item 3 together with the right to build and maintain necessary improvements thereupon for the term indicated below, subject to
renewal or extension in accordance with the appropriate leasing authority. Rights granted are subject to applicable laws, the terms, conditions,
and attached stipulations of this lease, the Secretary of the Interior's regulations and formal orders in effect as of lease issuance, and to regulations
and formal orders hereafter promulgated when not inconsistent with lease rights granted or specific provisions of this lease.
This lease is issued to the high bidder pursuant to his/her duly executed bid form submitted under 43 CFR 3120 and is subject to
the provisions of that bid and those specified on this form.
Type and primary term:
Noncompetitive lease (ten years)
Competitive lease (ten years)
(Continued on page 2)
Form 3100-11
(October 2008)
Serial Number
The undersigned (page 2) offers to lease all or any of the lands in Item 2 that are available for lease pursuant to the Mineral Lands Leasing Act of
1920, as amended and supplemented (30 U.S.C. 181 et seq.), the Mineral Leasing Act for Acquired Lands of 1947, as amended (30 U.S.C. 351-359),
or ______________________________________________________________________________________________________________(other).
4. (a) Undersigned certifies that (1) offeror is a citizen of the United States; an association of such citizens; a municipality; or a corporation
organized under the laws of the United States or of any State or Territory thereof, (2) all parties holding an interest in the offer are in compliance
with 43 CFR 3100 and the leasing authorities; (3) offeror's chargeable interests, direct and indirect, in each public domain and acquired lands
separately in the same State, do not exceed 246,080 acres in oil and gas leases (of which up to 200,000 acres may be in oil and gas options or
300,000 acres in leases 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 laws of the State in which the lands covered by this offer are located; (5) offeror is in compliance with qualifications concerning Federal
coal lease holdings provided in sec. 2(a)2(A) of the Mineral Leasing Act; (6) offeror is in compliance with reclamation requirements for all
Federal oil and gas lease holdings as required by sec. 17(g) of the Mineral Leasing Act; and (7) offeror is not in violation of sec. 41 of the Act.
(b) Undersigned agrees that signature to this offer constitutes acceptance of this lease, including all terms conditions, and stipulations of which
offeror has been given notice, and any amendment or separate lease that may include any land described in this offer open to leasing at the time
this offer was filed but omitted for any reason from this lease. The offeror further agrees that this offer cannot be withdrawn, either in whole or in
part unless the withdrawal is received by the proper BLM State Office before this lease, an amendment to this lease, or a separate lease,
whichever covers the land described in the withdrawal, has been signed on behalf of the United States.
This offer will be rejected and will afford offeror no priority if it is not properly completed and executed in accordance with the
regulations, or if it is not accompanied by the required payments.
Duly executed this ______________
day of ______________________
, 20 ____
(Signature of Lessee or Attorney-in-fact)
Title 18 U.S.C. Section 1001 and Title 43 U.S.C. Section 1212 make it a crime for any person knowingly and willfully to make to any department or Agency
of the United States any false, fictitious, or fraudulent statements or representations as to any matter within its jurisdiction.
Sec. 1. Rentals--Rentals must be paid to proper office of lessor in advance
of each lease year. Annual rental rates per acre or fraction thereof are:
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 must be due and payable on the last day
of the month following the month in which production occurred. When
paid in kind, production must be delivered, unless otherwise agreed to
by lessor, in merchantable condition on the premises where produced
without cost to lessor. Lessee must not be required to hold such
production in storage beyond the last day of the month following the
month in which production occurred, nor must lessee be held liable for
loss or destruction of royalty oil or other products in storage from
causes beyond the reasonable control of lessee.
(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
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 allocation of production, royalties must
be paid on the production allocated to this lease. However, annual rentals
must continue to be due at the rate specified in (a), (b), or (c) rentals for
those lands not within a participating area.
Minimum royalty in lieu of rental of not less than the rental which
otherwise would be required for that lease year must 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 Secretary determines that such action is necessary to
encourage the greatest ultimate recovery of the leased resources, or is
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) must automati-
cally terminate this lease by operation of law. Rentals may be waived, re-
duced, or suspended by the Secretary upon a sufficient showing by
See. 2. Royalties--Royalties must be paid to proper office of lessor.
otherwise justified.
Royalties must be computed in accordance with regulations on production
removed or sold. Royalty rates are:
An interest charge will be assessed on late royalty payments or
underpayments in accordance with the Federal Oil and Gas Royalty
Management Act of 1982 (FOGRMA) (30 U.S.C. 1701). Lessee must
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 with any rule, regulation,
order, or citation issued under FOGRMA or the leasing authority.
(a) Noncompetitive lease, 12 1/2%;
(b) Competitive lease, 12 1/2 %;
(c) Other, see attachment; or
as specified in regulations at the time this lease is issued.
(Continued on page 3)
(Form 3100-11, page 2)
Sec. 3. Bonds - A bond must be filed and maintained for lease
operations as required under regulations.
Sec. 4. Diligence, rate of development, unitization, and drainage -
Lessee must exercise reasonable diligence in developing and
producing, and must prevent unnecessary damage to, loss of, or waste
of leased resources. Lessor reserves right to specify rates of
development and production 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 development and operation of area, field,
or pool embracing these leased lands. Lessee must 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 must file with
proper office of lessor, not later than 30 days after effective date
thereof, any contract or evidence of other arrangement for sale or
disposal of production. At such times and in such form as lessor may
prescribe, lessee must furnish detailed statements showing amounts and
quality of all products removed and sold, proceeds therefrom, and
amount used for production purposes or unavoidably lost. 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 must keep a daily drilling record, a log,
information on well surveys and tests, and a record of subsurface
investigations and furnish copies to lessor when required. Lessee must
keep open at all reasonable times for inspection by any representative
of lessor, the leased premises and all wells, improvements, machinery,
and fixtures thereon, and all books, accounts, maps, and records
relative to operations, surveys, or investigations on or in the leased
lands. Lessee must maintain copies of all contracts, sales agreements,
accounting records, and documentation such as billings, invoices, or
similar documentation that supports costs claimed as manufacturing,
preparation, and/or transportation costs. All such records must be
maintained in lessee's accounting offices for future audit by lessor.
Lessee must maintain required records for 6 years after they are
generated or, if an audit or investigation is underway, until released of
the obligation to maintain such records by lessor.
During existence of this lease, information obtained under this section
will be closed to inspection by the public in accordance with the
Freedom of Information Act (5 U.S.C. 552).
Sec. 6. Conduct of operations - Lessee must 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 must take reasonable measures deemed necessary by
lessor to accomplish the intent of this section. To the extent consistent
with lease rights 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 must be conditioned so as to
prevent unnecessary or unreasonable interference with rights of lessee.
Prior to disturbing the surface of the leased lands, lessee must 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 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 of historic or scientific interest, or substantial
unanticipated environmental effects are observed, lessee must
immediately contact lessor. Lessee must 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 helium - 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 must include in any contract of sale of gas the
provisions of this section.
Sec. 9. Damages to property - Lessee must pay lessor for damage to
lessor's improvements, and must save and hold lessor harmless from 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
must 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 standard industry 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 must comply with section 28 of the Mineral Leasing Act
of 1920.
Lessee must 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 must maintain segregated facilities.
Sec. 11. Transfer of lease interests and relinquishment of lease - As
required by regulations, lessee must 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 written
relinquishment, which will 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 must 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 - If lessee fails to comply with
any provisions of this lease, and the noncompliance continues for 30
days after written notice thereof, this lease will 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 will 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 will not prevent later
cancellation for the same default occurring at any other time. Lessee
will be subject to applicable provisions and penalties of FOGRMA (30
U.S.C. 1701).
Sec. 14. Heirs and successors-in-interest - Each obligation of this lease
will extend to and be binding upon, and every benefit hereof will inure
to the heirs, executors, administrators, successors, beneficiaries, or
assignees of the respective parties hereto.
(Continued on page 4) (Form 3100-11, page 3)
A. General:
1. Page 1 of this form is to be completed only by parties filing for a
noncompetitive lease. The BLM will complete page 1 of the form
for all other types of leases.
2. Entries must be typed or printed plainly in ink. Offeror must sign
Item 4 in ink.
3. An original and two copies of this offer must be prepared and filed
in the proper BLM State Office. See regulations at 43 CFR
1821.2-1 for office locations.
4. If more space is needed, additional sheets must be attached to each
copy of the form submitted.
B. Special:
Item 1 - Enter offeror's name and billing address.
Item 2 - Identify the mineral status and, if acquired lands, percentage
of Federal ownership of applied for minerals. Indicate the agency
controlling the surface of the land and the name of the unit or project
which the land is a part. The same offer may not include both Public
Domain and Acquired lands. Offeror also may provide other
information that will assist in establishing title for minerals. The
description of land must conform to 43 CFR 3110. A single parcel
number and Sale Date will be the only acceptable description during
the period from the first day following the end of a competitive
process until the end of that same month, using the parcel number on
the List of Lands Available for Competitive Nominations or the
Notice of Competitive Lease Sale, whichever is appropriate.
Payments: The amount remitted must include the filing fee and the
first year's rental at the rate of $1.50 per acre or fraction thereof. The
full rental based on the total acreage applied for must accompany an
offer even if the mineral interest of the United States is less than 100
percent. The filing fee will be retained as a service charge even if the
offer is completely rejected or withdrawn. To protect priority, it is
important that the rental submitted be sufficient to cover all the land
requested. If the land requested includes lots or irregular quarter-
quarter sections, the exact area of which is not known to the offeror,
rental should be submitted on the basis of each such lot or quarter-
quarter section containing 40 acres. If the offer is withdrawn or
rejected in whole or in part before a lease issues, the rental remitted
for the parts withdrawn or rejected will be returned.
Item 3 - This space will be completed by the United States.
The Privacy Act of 1974 and the regulations in 43 CFR 2.48(d) provide that you be furnished with the following information in connection with
information required by this oil and gas lease offer.
AUTHORITY: 30 U.S.C. 181 et seq.; 30 U.S.C 351-359.
PRINCIPAL PURPOSE: The information is to be used to process oil and gas offers and leases.
ROUTINE USES: (1) The adjudication of the lessee's rights to the land or resources. (2) Documentation for public information in support of notations
made on land status records for the management, disposal, and use of public lands and resources. (3) Transfer to appropriate Federal agencies when consent
or concurrence is required prior to granting a right in public lands or resources. (4)(5) Information from the record and/or the record will be transferred to
appropriate Federal, State, local or foreign agencies, when relevant to civil, criminal or regulatory investigations or prosecutions.
EFFECT OF NOT PROVIDING INFORMATION: If all the information is not provided, the offer may be rejected. See regulations at 43 CFR 3100.
(Form 3100-11, page 4)