Form 3520-7 Mineral Lease

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Form 3520-7
(February 2005)

UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT

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FORM APPROVED
OMB NO. 1004-0121
Expires: November 30, 2009
Serial Number

LEASE
PART 1. LEASE RIGHTS GRANTED.
This
Lease
Lease Renewal entered into by and between the UNITED STATES OF AMERICA, through the Bureau of Land
Management (BLM), hereinafter called lessor and (Name and Address)

Hereinafter called lessee, is effective (date) _____________________________________________, for a period of _________________ years,
Sodium, Sulphur, Hardrock –
with preferential right in the lessee to renew for successive periods of ___________ years under such terms and conditions as may be
prescribed by the Secretary of the Interior, unless otherwise provided by law at the expiration of any period.
Potassium, Phosphate, Gilsonite –
and for so long thereafter as lessee complies with the terms and conditions of this lease which are subject to readjustment at the end of
each ___________ year period, unless otherwise provided by law.
Sec. 1. This lease is issued pursuant and subject to the terms and provisions of the:
Mineral Leasing Act of 1920, as amended, and supplemented, 41 Stat. 437, 30 U.S.C. 181-287, hereinafter referred to as the Act;
Mineral Leasing Act of Acquired Lands, Act of August 7, 1947, 61 Stat. 913, 30 U.S.C. 351-359;
Reorganization Plan No. 3 of 1946, 60 Stat. 1099 and 43 U.S.C. 1201;
(Other) _____________________________________________________________________________________________________ ; and
to the regulations and general mining orders of the Secretary of the Interior in force on the date this lease issued.
Sec. 2. Lessor, in consideration of any bonuses, rents, and royalties to be paid, and the conditions and covenants to be observed as herein set
forth, hereby grants and leases to lessee the exclusive right and privilege to explore for, drill for, mine, extract, remove, beneficiate, concentrate,
or otherwise process and dispose of the ________________deposits ____________________________________________________________
hereinafter referred to as “leased deposits,” in, upon, or under the following described lands:

containing ____________________________ acres, more or less, together with the right to construct such works, buildings, plants, structures,
equipment and appliances and the right to use such on-lease rights-of-way which may be necessary and convenient in the exercise of the rights
and privileges granted, subject to the conditions herein provided.
Phosphate –
In accordance with section 11 of the Act (30 U.S.C. 213), lessee may use deposits of silica, limestone, or other rock in the processing of
refining of the phosphates, phosphate rock, and associated or related minerals mined from the leased lands or other lands upon payments of
royalty as set forth on the attachment to this lease. (Phosphate leases only.)
(Continued on page 2)

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 first lease year and each succeeding lease year;
Hardrock –
$1 for the first lease year and $1 for each succeeding lease year;
Phosphate –
25 cents for the first 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 first calendar year or fraction thereof, 50 cents
for the second, third, fourth, and fifth 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 first 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 royality and reserves the authority to assent to or
order the suspension of this lease.

Sec. 4. BONDS – Lessee must maintain in the proper office 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

(Continued on page 3)

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,
modification to proposed siting or design of facilities, timing of
operations, and specification of interim and final 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

(Form 3520-7, page 2)

situated are more reactive than the provisions in this paragraph, then
the State laws apply.
Lessee must comply with all provisions of Executive Order No.
11246 of September 24, 1965, as amended, and the rules,
regulations, and relevant orders of the Secretary of Labor. Neither
lessee or lessee’s subcontractors must maintain segregated facilities.
Sec. 8. (a) TRANSFERS – This lease may be transferred in whole
or in part to any person, association or corporation qualified to hold
such lease interest.
(b) RELINQUISHMENT - The lessee may relinquish in writing at
any time all rights under this lease or any portion thereof as provided
in the regulations. Upon lessor’s acceptance of the relinquishment,
lessee must be relieved of all future obligations under the lease or the
relinquished portion thereof, whichever is applicable.
Sec. 9. DELIVERY OF PREMISES, REMOVAL OF
MACHINERY, EQUIPMENT, ETC. – At such time as all or
portions of this lease are returned to lessor, lessee must deliver up to
lessor the land leased, underground timbering, and such other
supports and structures necessary for the preservation of the mine
workings on the leased premises or deposits and place all wells in
condition for suspension or abandonment. Within 180 days thereof,
lessee must remove from the premises all other structures,
machinery, equipment, tools, and materials that it elects to or as
required by BLM. Any such structures, machinery, equipment, tools,
and materials remaining on the leased lands beyond 180 days, or
approved extension thereof, will become the property of the lessor,
but lessee must either remove any or all such property or must
continue to be liable for the cost of removal and disposal in the
amount actually incurred by the lessor. If the surface is owned by
third parties, lessor will waive the requirement for removal, provided
the third parties do not object to such waiver. Lessee must,

prior to the termination of bond liability or at any other time
when required and in accordance with all applicable laws and
regulations, reclaim all lands the surface of which has been
disturbed, dispose of all debris or solid waste, repair the offsite and
onsite damage caused by lessee’s activity or activities on the leased
lands, and reclaim access roads or trails.
Sec. 10. PROCEEDINGS IN CASE OF DEFAULT – If lessee fails to
comply with applicable laws, now existing regulations, or the terms,
conditions and stipulations of this lease, and noncompliance continues
for 30 days after written notice thereof, this lease will be subject to
cancellation by the lessor only by judicial proceedings. 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.
Sec. 11. HEIRS AND SUCCESSORS-IN-INTEREST – Each
obligation of this lease must extend to and be binding upon, and every
benefit hereof must inure to, the heirs, executors, administrators,
successors, or assigns of the respective parties hereto.
Sec. 12. INDEMNIFICATION – Lessee must indemnify and hold
harmless the United States from any and all claims arising out of the
lessee’s activities and operations under this lease.
Sec. 13. SPECIAL STATUTES – This lease is subject to the Federal
Water Pollution Control Act (33 U.S.C. 1151-1175), the Clean Air Act
(42 U.S.C. 1857 et seq.), and to all other applicable laws pertaining to
exploration activities, mining operations and reclamation.

Sec. 14. SPECIAL STIPULATIONS -

(Section 14 continued on page 4)

(Form 3520-7, page 3)

Sec. 14. SPECIAL STIPULATIONS – (Cont.)

THE UNITED STATES OF AMERICA

By
_____________________________________________________
(Company or Lessee Name)

__________________________________________________________
(Signing Officer's Printed Name)

_____________________________________________________
(Signature of Lessee)

_________________________________________________________
(Signing Officer)

_____________________________________________________
(Title)

_________________________________________________________
(Title)

_____________________________________________________
(Date)

_________________________________________________________
(Date)

Title 18 U.S.C. Section 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.
(Continued on page 5)

(Form 3520-7, page 4)

NOTICES
The Privacy Act of 1974 and the regulation in 43 CFR 2.48(d) provide that you be furnished with the following information required
by this application.
AUTHORITY: 30 U.S.C. 181 et seq., 43 U.S.C. 3500
PRINCIPAL PURPOSE: The BLM will use the information you provide to verify your compliance with lease terms.
ROUTINE USES: The BLM will disclose information to: (1) appropriate Federal, State, local or foreign agencies when relevant to
civil, criminal, or regulatory investigations or prosecutions; (2) appropriate Federal agencies when their concurrence is required before
BLM grants a right in public lands or resources; (3) a member of the public in response to a specific request for pertinent information;
(4) a congressional office in response to an inquiry made at the request of an individual; and (5) to a consumer reporting agency to
expedite collecting debts owed the government.
EFFECT OF NOT PROVIDING INFORMATION: Filing of the information is required to obtain and keep a benefit. If you do not
provide the information, BLM may seek to cancel your lease.
The Paperwork Reduction Act of 1995 requires us to inform you that:
The BLM collects this information to comply with the regulations at 43 CFR 3500, which implement the provisions of the Mineral
Leasing Act of 1920, as amended; the Mineral Leasing Act for Acquired Land of 1947; and section 402 of Reorganization Plan No. 3
of 1946.
The BLM uses the information to verify that you are complying with lease terms.
Response to this request is required to obtain and keep a benefit.
The BLM would like you to know that you do not have to respond to this or any other Federal agency-sponsored information
collection unless it displays a currently valid OMB control number.
BURDEN HOURS STATEMENT: Public reporting burden for this form is estimated to average 300 hours per response, including the
time for reviewing instructions, gathering, and maintaining data, and completing and reviewing the form. Direct comments regarding
the burden estimate or any other aspect of this form to U.S. Department of the Interior, Bureau of Land Management (1004-0121),
Bureau Information Collection Clearance Officer (WO-630), 1849 C Street, N.W., Mail Stop 401 LS, Washington D.C. 20240.

(Form 3520-7, page 5)