Form 3520-7 ____ Lease

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Form 3520-7
(March 2010)

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UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT

FORM APPROVED
OMB NO. 1004-0121
Expires: February 28, 2013
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)
to the regulations and general mining orders of the Secretary of the Interior in force on the date this lease issued.

; and

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)

detailed statements showing the amounts and quality of all products
Sec. 1. (a) RENTAL RATE – Lessee shall pay lessor rental annually removed and sold from the lease, the proceeds therefrom, and the amount
and in advance for each acre or fraction thereof during the continuance used for production purposes or unavoidably lost.
of the lease at the rate indicated below:
Lessee must keep open at all reasonable times for the inspection of any
duly prescribed employee of lessor, the leased premises and all surface
Sulphur, Gilsonite –
and underground improvements, work, machinery, ore stockpiles,
50 cents for the first lease year and each succeeding lease year;
equipment, and all books, accounts, maps, and records relative to
Hardrock –
operations, surveys, or investigations on or under the leased lands.
$1 for the first lease year and $1 for each succeeding lease year;
Lessee must either submit or provide lessor access to and copying of
Phosphate –
documents reasonably necessary to verify lessee compliance with terms
25 cents for the first lease year, 50 cents for the second and third
and conditions of the lease.
lease years, and $1 for each and every lease year thereafter;
PART II. TERMS AND CONDITIONS

Potassium Sodium –
While this lease remains in effect, information obtained under this
25 cents for the first calendar year or fraction thereof, 50 cents for section must be closed to inspection by the public in accordance with the
the second, third, fourth, and fifth calendar years respectively, and Freedom of Information Act (5 U.S.C. 552).
$1 for the sixth and each succeeding calendar year; or
Sec. 6. DAMAGES TO PROPERTY AND CONDUCT OF
Sodium, Sulphur, Asphalt, and Hardrock Renewal Leases–
OPERATIONS – Lessee must exercise reasonable diligence, skill,
$
for each lease year;
and care in the operation of the property, and carry on all operations
in accordance with approved methods and practices as provided in the
(b) RENTAL CREDITS – The rental for any year will be credited operating regulations, having due regard for the prevention of injury to
against the first royalties as they accrue under the lease during the life, health or property and of waste or damage to any water or mineral
year for which rental was paid.
deposits.
Sec. 2. (a) PRODUCTION ROYALTIES – Lessee must pay lessor Lessee must not conduct exploration or operations, other than causal use,
a production royalty in accordance with the attached schedule. Such prior to receipt of necessary permits or approval of plans of operations
production royalty is due the last day of the month next following the by lessor.
month in which the minerals are sold or removed from the leased lands.
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,
(b) MINIMUM ANNUAL PRODUCTION AND MINIMUM
ROYALTY – (1) Lessee must produce on an annual basis a minimum and water, to cultural, biological, visual, minerals, and other resources,
amount of
, except when production is interrupted and to other land uses or users. Lessee must take measures deemed
by strikes, the elements, or casualties not attributable to the lessee. necessary by lessor to accomplish the intent of this lease term. Such
Lessor may permit suspension of operations under the lease when measures may include, but are not limited to, modification to proposed
marketing conditions are such that the lease cannot be operated except siting or design of facilities, timing of operations, and specification of
at a loss. (2) At the request of the lessee, made prior to initiation of the interim and final reclamation procedures.
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 Lessor reserves to itself the right to lease, sell, or otherwise dispose of
particular lease year. Minimum royalty payments must be credited to the surface or other mineral deposits in the lands and the right to continue
production royalties for that year.
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
Sec. 3. REDUCTION AND SUSPENSION – In accordance with uses to prevent unnecessary or unreasonable interference with rights of
Section 39 of the Mineral Leasing Act, 30 U.S.C. 209, the lessor reserves lessee as may be consistent with concepts of multiple use and multiple
the authority to waive, suspend or reduce rental or minimum royalty, or mineral development.
to reduce royality and reserves the authority to assent to or order the
Sec. 7. PROTECTION OF DIVERSE INTERESTS, AND EQUAL
suspension of this lease.
OPPORTUNITY – Lessee must: pay when due all taxes and legally
assessed and levied under the laws of the State or the United States;
Sec. 4. BONDS – Lessee must maintain in the proper office a lease accord all employees complete freedom of purchase; pay all wages at
bond in the amount of $
, or in lieu thereof, least twice each month in lawful money of the United States; maintain
an acceptable statewide or nationwide bond. The BLM may require a safe working environment in accordance with standard industry
an increase in this amount when additional coverage is determined practices; restrict the workday to not more than 8 hours in any one day
for underground workers, except in emergencies; and take measures
appropriate.
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
Sec. 5. DOCUMENTS, EVIDENCE AND INSPECTION – At such the extent that laws of the State in which the lands are situated are more
times and in such form as lessor may prescribe, lessee must furnish reactive than the provisions in this paragraph, then the State laws apply.

(Continued on page 3)

(Form 3520-7, page 2)

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.

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. 8. (a) TRANSFERS – This lease may be transferred in whole or
in part to any person, association or corporation qualified to hold such Sec. 10. PROCEEDINGS IN CASE OF DEFAULT – If lessee fails
lease interest.
to comply with applicable laws, now existing regulations, or the terms,
conditions and stipulations of this lease, and noncompliance continues
(b) RELINQUISHMENT - The lessee may relinquish in writing at any for 30 days after written notice thereof, this lease will be subject to
time all rights under this lease or any portion thereof as provided in the cancellation by the lessor only by judicial proceedings. This provision
regulations. Upon lessor’s acceptance of the relinquishment, lessee must will not be construed to prevent the exercise by lessor of any other
be relieved of all future obligations under the lease or the relinquished legal and equitable remedy, including waiver of the default. Any such
portion thereof, whichever is applicable.
remedy or waiver will not prevent later cancellation for the same default
occurring at any other time.
Sec. 9. DELIVERY OF PREMISES, REMOVAL OF MACHINERY,
EQUIPMENT, ETC. – At such time as all or portions of this lease
Sec. 11. HEIRS AND SUCCESSORS-IN-INTEREST – Each obligation
are returned to lessor, lessee must deliver up to lessor the land leased,
of this lease must extend to and be binding upon, and every benefit hereof
underground timbering, and such other supports and structures necessary
must inure to, the heirs, executors, administrators, successors, or assigns
for the preservation of the mine workings on the leased premises or
of the respective parties hereto.
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 Sec. 12. INDEMNIFICATION – Lessee must indemnify and hold
or as required by BLM. Any such structures, machinery, equipment, harmless the United States from any and all claims arising out of the
tools, and materials remaining on the leased lands beyond 180 days, or lessee’s activities and operations under this lease.
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 Sec. 13. SPECIAL STATUTES – This lease is subject to the Federal
incurred by the lessor. If the surface is owned by third parties, lessor Water Pollution Control Act (33 U.S.C. 1151-1175), the Clean Air Act
will waive the requirement for removal, provided the third parties do (42 U.S.C. 1857 et seq.), and to all other applicable laws pertaining to
not object to such waiver. Lessee must, prior to the termination of bond 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)