will be given a current serial number, but a discovery on lands under one permit will not inure to the benefit of the other. The approval of such an assignment will not extend the life of the permit or the readjustment periods of the lease. Assignments of permits and leases, whether by direct assignment, operating agreements, working or royalty interests, subleases, or otherwise must be filed for approval at the proper land office within 90 days after execution. Evidence of the qualifications of the assignee or transferee to hold the permit or lease, as required by §§ 196.3 and 196.12 (a) (4) and (b), must be submitted simultaneously. Assignments of record title interests must be filed in duplicate. A single executed copy of all other instruments of transfer is sufficient. An assignment will take effect the first day of the month following its final approval by the Bureau of Land Management, or if the assignee requests, the first day of the month of approval.

(b) An application for approval of any instrument transferring a lease, permit, or interest therein, must be accompanied by a $10 filing fee. An application not accompanied by such a fee will not be accepted. The fee will not be returned even though the application is later withdrawn or rejected.

(c) Where an assignment does not create separate leases or permits, the assignee must submit a new bond, or the consent of the surety on the bond of record to the substitution of the assignee as principal. If the assignment is for part of the land covered by a lease or permit, the assigned portion must be definitely described and the exact area given, and there must be submitted: (1) The consent of the surety to the assignment and its agreement to remain bound as to the interest retained by the lessee or permittee, and (2) a new bond with the assignee as principal covering the portion of the land assigned.

(d) The assignor or sublessor and his surety will continue to be responsible for the performance of any obligation under the lease or permit until the effective date of the assignment or sublease. If the assignment or sublease is not approved, their obligations to the United States shall continue as though no such assignment or sublease had been filed for approval. After approval the assignee or sublessee and his surety will be responsible for the performance of all lease or permit obligations notwithstanding

any term in the assignment or sublease to the contrary.

(e) In order for the heirs or devisees of a deceased holder of a lease or permit, an operating agreement, or a royalty interest in a lease or permit, to be recognized by the Bureau of Land Management as the holder of the lease or permit, agreement or interest, there must be furnished the appropriate showing required under § 196.11(c).

(f) No assignment will be approved if the assignee fails to file the evidence required by this section and the account under the lease or permit is not in good standing. A minor, except a minor heir or devisee of a lessee or permittee, is not qualified to hold a lease or permit and an assignment to a minor will not be approved.

§ 196.23 Limitation on overriding royalties.

An overriding royalty interest shall not be created by assignment or otherwise exceeding one percent of the gross value of the output at point of shipment to market or an overriding royalty interest which when added to any other overriding royalty interest exceeds that percentage, excepting that where an interest in the leasehold, permit, or operating agreement is assigned, the assignor may retain an overriding royalty interest in excess of the above limitation if he shows to the satisfaction of the authorized officer that he has made substantial investments for improvements on the land covered by the assignment.

§ 196.24 Readjustment of terms and conditions at end of twenty-year periods.

The terms and conditions of a lease may be readjusted at the end of each twenty-year period succeeding the date of the lease. Prior to the expiration of that period, the lessee will be advised of the reasonable readjustment of terms proposed or notified that no readjustment is to be made for the next period. The lessee may file his consent to such proposed readjustment or inform the authorized officer as to the terms which are unsatisfactory. After considering the suggestions of the lessee, the authorized officer shall make his determination as to the reasonable readjustment of terms to be effective for the twenty-year period under consideration.

§ 196.25 Relinquishment of lease.

Upon a satisfactory showing that the public interest will not be impaired, the lessee may surrender the entire lease or any legal subdivision thereof. A relinquishment must be filed in duplicate in the appropriate land office. Upon its acceptance it shall be effective as of the date it is filed, subject to the continued obligation of the lessee and his surety to make payment of all accrued rentals and royalties and to provide for the preservation of any mines or productive works or permanent improvement on the leased lands in accordance with the regulations and terms of the lease.

§ 196.26

Cancellation of lease.

If the lessee shall fail to comply with the provisions of the act, or of the general regulations promulgated and in force at the date of the lease, or at the effective date of any readjustment of the terms and conditions thereof under § 196.24 or make default in the performance or observance of any of the terms, covenants, and stipulations of the lease and such default shall continue for 30 days after service of written notice thereof by the lessor, then the lessor may institute appropriate proceedings in a court of competent jurisdiction for the forfeiture and cancellation of the lease as provided in section 31 of the act. A waiver of any particular cause of forfeiture shall not prevent the cancellation and forfeiture of the lease for any other cause of forfeiture, or for the same cause occurring at any other time. § 196.27 Use permits for

additional

lands. (a) A lessee or permittee may be granted a right to use the surface of not exceeding 80 acres of unappropriated and unentered public land not included within the boundaries of a national forest as may be necessary for the proper extraction, treatment, or removal of the leased deposits. The annual charge for the use of such land will be not less than $1 per acre or fraction thereof.

(b) Applications for permits for such additional land shall be filed in the office specified in § 196.12(a). A filing fee of $10, which is not returnable, must accompany each application. Such applications must set forth the specific reasons why the additional land is necessary to the permittee or lessee for the use named, describe the land desired in accordance with § 196.12(a)(2), and also

197.2 197.3

197.4

197.5

197.6

197.7 197.8

Qualifications of applicants.

Lands and deposits to which applicable.

Form and contents of application.

Disposition of application.

Action on application.

Form of lease.

Preferred right to a lease.

AUTHORITY: §§ 197.1 to 197.8 issued under sec. 32, 41 Stat. 450; 30 U. S. C. 189.

SOURCE: $197.1 to 197.8 appear at 19 F. R. 9032, Dec. 23, 1954; 26 F.R. 5006, June 6, 1961.

CROSS REFERENCES: For Forest Service, land uses, see 36 CFR Part 251. For operating and safety regulations of the Geological Survey, see 30 CFR Part 231.

1 Circ. 1220, June 9, 1930 (53 I. D. 127), contains the following instructions relative to oil shale withdrawal of Apr. 15, 1930, No. 5327:

"By E. O. 5327, Apr. 15, 1930, made under authority and pursuant to the provisions of the act of June 25, 1910 (36 Stat. 847), as amended by the act of August 24, 1912 (37 Stat. 497; 43 U. S. C. 142), and subject to valid existing rights, the deposits of oil shale and lands containing such deposits owned by the United States were temporarily withdrawn from lease or other disposal and reserved for the purposes of investigation, examination and classification.

"In order to identify for administrative purposes the known areas affected by the order, the Secretary has approved maps prepared by the Geological Survey designating the lands containing oil shale of recognized commercial importance, in Colorado, Wyoming, and Utah. Copy of the map showing the designations is transmitted herewith to the register of each district in which designations have been made.

"The oil shale deposits and the lands so designated, title to which is in the United States, are by the order withdrawn from lease, entry, selection or other form of disposal, and you will therefore reject all applications for such lands, except applications for patent under the mining laws for metal

liferous mining claims, or applications under other public land laws which are based on claims to the lands initiated prior to the date of the withdrawal.

"Lands not designated on the map as oil shale, but which are in fact valuable for their oil shale deposits are also withdrawn by said order. Affirmative proof of the nonoil shale character of lands not designated on the maps as oil shale, other than the regular non-mineral affidavit, will not be required.

"However, if your records show any land not designated on the map to be in fact oil shale in character, you will reject any application therefor. Any entry, filing, or selection allowed for lands which are thereafter, and prior to patent, found to be valuable for oil shale, will be subject to cancellation by appropriate proceedings."

Circ. 1355, June 4, 1935 (55 I. D. 280), contains the following instructions relative to modification of oil shale withdrawal of Apr. 15, 1930, by E. O. 7038, May 13, 1935:

"By E. O. 7038, May 13, 1935, E. O. 5327, Apr. 15, 1930, withdrawing certain lands for purposes of investigation, examination, and classification, was modified to extent of authorizing the Secreary of the Interior to issue sodium permits and leases under the general leasing act of February 25, 1920 (41 Stat. 437), as amended by the act of December 11, 1928 (45 Stat. 1019; 30 U. S. C. 261, 262), for and of any of the lands withdrawn by said order.

"Circ. 1220, June 9, 1930 (53 L. D. 127), is accordingly modified to conform to the later Executive order and you are authorized to accept applications for sodium prospecting permits and leases for lands withdrawn under E. O. 5327, Apr. 15, 1930."

E. O. 5327, Apr. 15, 1930, was modified by E. O. 6016, Feb. 6, 1933, so as to authorize oil and gas leases for the withdrawn lands.

Since the issuance of the foregoing instructions, the title "register" has been changed to "manager." For elimination of the requirement of oaths in certain cases, see § 101.18 of chapter.

States, or of any State or Territory thereof; or (d) a municipality.

CROSS REFERENCE: For citizenship in public land cases, see Part 137 of this chapter. § 197.3 Lands and deposits to which applicable.

The lease may include oil shale deposits and the surface of so much of the land containing same, or of land adjacent thereto, as may be required for the extraction and reduction of the leased minerals, the aggregate area not to exceed 5,120 acres.

§ 197.4 Form and contents of application.2

(a) Applications shall be filed in the proper land office in the State or Territory, or for lands in a State in which there is no land office shall be filed with the Bureau of Land Management, Washington 25, D. C., except the applications for lands in North or South Dakota shall be filed in the land office at Billings, Montana; applications for lands in Nebraska or Kansas shall be filed in the land office at Cheyenne, Wyoming; and for lands in Oklahoma in the land office at Santa Fe, New Mexico. No specific form of application is required, and no blanks will be furnished, but it should cover in substance the following points:

(1) Applicant's name and address.

(2) Qualifications of petitioner to take a lease under the act including: Statement of his interests, direct or indirect, in other oil shale leases or applications therefor on public lands in the State in which the lease is desired, identifying the same by land office and serial number, and proof of citizenship—in the case of an individual, by a statement as to whether native-born or naturalized and, if naturalized, date of naturalization, court in which naturalized and number of certificate if known; if a woman, whether she is married or single, and, if married, the date of her marriage and citizenship of her husband. Corporations are required to file a certified copy of their articles of incorporation, a showing as to residence and citizenship of the stockholders, and if any stock is held by aliens, a showing, to the extent reasonably ascertainable, of the name, coun

218 U. S. C. 1001 makes 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.

try to which each such alien owes allegiance, and amount of stock held by each. Municipalities must submit evidence of the law or charter and procedure taken by which it became and exists as a body corporate, that the taking of a lease is authorized under such law or charter, and that the action proposed has been duly authorized by the governing body of such municipality.

(3) A statement that the applicant has no lease under the provisions of this section, nor any other application for lease thereunder pending, and that he does not hold interests in such leases or applications which, with the land applied for, will exceed 5,120 acres.

(4) Description of land for which the lease is desired, by legal subdivisions if surveyed, and by metes and bounds if unsurveyed, in which latter case the description should be connected to some corner of the public land surveys where practicable, or to some permanent landmark. If the land is unsurveyed, the applicant, after he has been awarded the right to a lease, but before the issuance thereof, will be required to deposit with the State Director the estimated cost of making a survey of the lands, any balance remaining after the work is completed to be returned. This survey will be an extension of the public land surveys over the tract applied for, the leased land to be conformed to legal subdivisions of such survey when made.

(5) Evidence that the land is valuable for its oil-shale content, except so much thereof as is necessary for the extraction and reduction of the leased materials, with a statement as accurate as may be of the character and extent and mode of occurrence of the oil-shale deposits in the lands applied for.

(6) Proposed method, so far as determined, as to the process of mining and reduction to be adopted, the diligence with which such operations will be carried on, and the contemplated investment in reduction works and development, and the capital available therefor.

(7) The application shall be accompanied by a notice for publication, in duplicate, prepared for the signature of the manager, in substantially the following form:

(b) The application must be signed by the applicant or his attorney in fact, and if executed by an attorney in fact must be accompanied by the power of attorney and the applicant's own statement as to his citizenship and acreage holdings. Applications on behalf of a corporation must be accompanied by proof of the signing officer's authority to execute the instrument and must have the corporate seal affixed thereto.

(c) The manager will fix the time within which adverse or conflicting claims may be filed at not less than 30, nor more than 40 days from first publication.

197.5

Disposition of application.

(a) One copy of the signed notice will be delivered to the applicant, who will cause the same to be published in a newspaper to be designated by the manager, of general circulation, and best adapted to give the widest publicity, in the county where the land is situated. If the land is in two or more counties, notice must be published in each. Notice must also be posted in the land office during the period of publication.

§ 197.6 Action on application.

As the area and form of lands leased hereunder is entirely discretionary with the authorized officer, if the area applied for is considered too large, or the form unsatisfactory, or in case of conflicting applications, the application may be held for rejection, but the applicant given an opportunity to amend his application in conformity with requirements. If the right to a lease be granted, the applicant will be required, within 30 days from notice, to pay the rental of 50 cents per acre for the first year.

§ 197.7 Form of lease.

The form of lease will be substantially the same as that set forth in 47 L.D. 426429.

(a) Under a proviso of section 21 of the act (41 Stat. 445; 30 U.S.C. 241), a person having a valid claim to oil shale deposits under existing law, prior to January 1, 1919, shall, upon the relinquishment of such claim or claims, be entitled to a lease for not exceeding 5,120 acres: Provided, "That no claimant for a lease who has been guilty of any fraud, or who had knowledge or reasonable ground to know of any fraud, or who has not acted honesty and in good faith, shall be entitled" to such lease.

(b) The beneficiaries of this proviso are those persons or their grantors who, in the honest belief that the mining laws were applicable to oil shale deposits, have proceeded in absolute good faith to make mineral locations, lode or placer, of shale deposits, and who have, in all respects, fully compiled with the provisions and requirements of such laws, including discovery.

(c) The same form of procedure in making applications for lease should be followed as in other cases, except that, in addition to the points referred to in § 197.4 of any ordinary application, an application for a preference-right lease should be accompanied by a full and detailed showing, duly corroborated, of the facts on which the applicant claims a preferred right, together with copies of the location notices, abstracts of title, and such other evidence as may be deemed necessary to establish the claimant's preferred right and entire absence of fraud. Claimants of such preferred rights to leases should present same promptly; otherwise the lands may be leased to others, in which case any preference rights under this proviso will be deemed to have lapsed.

§ 198.1 Statutory authority.

Sections 1 to 7 of the Act of April 17, 1926 (44 Stat. 301), as amended July 16, 1932 (47 Stat. 701; 30 U.S.C. 271-276), authorize the Secretary of the Interior to:

(a) Issue permits to prospect for sulphur in public lands or in public lands disposed of with a reservation of such deposits to the United States located in the States of Louisiana and New Mexico.

(b) Lease such lands containing valuable deposits of sulphur. § 198.2 Definitions.

The following terms, as used in this part or in any lease or permit approved under the regulations in this part, shall have the meanings here given:

(a) Land Office, or appropriate land office. The Land Office, Bureau of Land Management, Santa Fe, New Mexico, for lands covered by a permit, lease, or application therefor, situated in the State of New Mexico, and the Eastern States Land Office, Bureau of Land Manage