PART II. TERMS AND CONDITIONS
Sec. 1. (a) RENTAL RATE – Lessee shall pay lessor rental annually
and in advance for each acre or fraction thereof during the continuance
of the lease at the rate indicated below:
Sulphur, Gilsonite –
50 cents for the rst lease year and each succeeding lease year;
Hardrock –
$1 for the rst lease year and $1 for each succeeding lease year;
Phosphate –
25 cents for the rst lease year, 50 cents for the second and third
lease years, and $1 for each and every lease year thereafter;
Potassium Sodium –
25 cents for the rst calendar year or fraction thereof, 50 cents
for the second, third, fourth, and fth calendar years respectively,
and $1 for the sixth and each succeeding calendar year; or
Sodium, Sulphur, Asphalt, and Hardrock Renewal Leases–
$ for each lease year;
(b) RENTAL CREDITS – The rental for any year will be credited
against the rst royalties as they accrue under the lease during the
year for which rental was paid.
Sec. 2. (a) PRODUCTION ROYALTIES – Lessee must pay lessor
a production royalty in accordance with the attached schedule. Such
production royalty is due the last day of the month next following
the month in which the minerals are sold or removed from the leased
lands.
(b) MINIMUM ANNUAL PRODUCTION AND MINIMUM
ROYALTY – (1) Lessee must produce on an annual basis a
minimum amount of , except when
production is interrupted by strikes, the elements, or casualties
not attributable to the lessee. Lessor may permit suspension of
operations under the lease when marketing conditions are such that
the lease cannot be operated except at a loss. (2) At the request of
the lessee, made prior to initiation of the lease year, the BLM may
allow in writing the payment of a $3.00 per acre or fraction thereof
minimum royalty in lieu of production for any particular lease year.
Minimum royalty payments must be credited to production royalties
for that year.
Sec. 3. REDUCTION AND SUSPENSION – In accordance with
Section 39 of the Mineral Leasing Act, 30 U.S.C. 209, the lessor
reserves the authority to waive, suspend or reduce rental or minimum
royalty, or to reduce royalty and reserves the authority to assent to or
order the suspension of this lease.
Sec. 4. BONDS – Lessee must maintain in the proper ofce a lease
bond in the amount of $ , or in lieu thereof, an
acceptable statewide or nationwide bond. The BLM may require
an increase in this amount when additional coverage is determined
appropriate.
Sec. 5. DOCUMENTS, EVIDENCE AND INSPECTION – At such
times and in such form as lessor may prescribe, lessee must furnish
detailed statements showing the amounts and quality of all products
removed and sold from the lease, the proceeds therefrom, and the
amount used for production purposes or unavoidably lost.
Lessee must keep open at all reasonable times for the inspection
of any duly prescribed employee of lessor, the leased premises and
all surface and underground improvements, work, machinery, ore
stockpiles, equipment, and all books, accounts, maps, and records
relative to operations, surveys, or investigations on or under the
leased lands.
Lessee must either submit or provide lessor access to and copying
of documents reasonably necessary to verify lessee compliance with
terms and conditions of the lease.
While this lease remains in effect, information obtained under this
section must be closed to inspection by the public in accordance with
the Freedom of Information Act (5 U.S.C. 552).
Sec. 6. DAMAGES TO PROPERTY AND CONDUCT OF
OPERATIONS – Lessee must exercise reasonable diligence, skill,
and care in the operation of the property, and carry on all operations
in accordance with approved methods and practices as provided in
the operating regulations, having due regard for the prevention of
injury to life, health or property and of waste or damage to any water
or mineral deposits.
Lessee must not conduct exploration or operations, other than causal
use, prior to receipt of necessary permits or approval of plans of
operations by lessor.
Lessee must carry on all operations in accordance with approved
methods and practices as provided in the operating regulations,
and the approved mining plans in a manner that minimizes
adverse impacts to the land, air, and water, to cultural, biological,
visual, minerals, and other resources, and to other land uses or
users. Lessee must take measures deemed necessary by lessor to
accomplish the intent of this lease term. Such measures may include,
but are not limited to, modication to proposed siting or design of
facilities, timing of operations, and specication of interim and nal
reclamation procedures.
Lessor reserves to itself the right to lease, sell, or otherwise dispose
of the surface or other mineral deposits in the lands and the right to
continue existing uses and to authorize future uses upon or in the
leased lands, including issuing leases for mineral deposits not covered
hereunder or the approval of easements or rights-of-way. Lessor
will condition such uses to prevent unnecessary or unreasonable
interference with rights of lessee as may be consistent with concepts
of multiple use and multiple mineral development.
Sec. 7. PROTECTION OF DIVERSE INTERESTS, AND EQUAL
OPPORTUNITY – Lessee must: pay when due all taxes and legally
assessed and levied under the 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; restrict the workday to not more than 8 hours
in any one day for underground workers, except in emergencies;
and take measures necessary to protect the health and safety of the
public. No person under the age of 16 years must be employed in any
mine below the surface. To the extent that laws of the State in which
the lands are situated are more reactive than the provisions in this
paragraph, then the State laws apply.
(Continued on page 3) (Form 3520-7, page 2)
