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7 <br />b. Effective Date and Duration of Suspension Period. <br />Effective Date. In accordance with the regulations for coal (43 CFR <br />3483.3(b 1) and for solid minerals (43 CFR 3503.3-1), the authorized officer <br />specifies the effective date of a suspension of operations and production. <br />Because the lessee is denied all beneficial use of the lease, no suspeasion of <br />operations and production shall become effective until all beneficial use <br />ceases and all rental end royalty accounts are in good standing. Therefore, <br />the effective date of the suspension of operations and production may be <br />either the date that a complete application is filed or the date that all <br />beneficial use ceases sad the rental and royalty accounts are in good <br />standing, whichever is later. <br />A suspension of operations and production can be granted after the fact. A <br />lessee or operator may cease operations and production based on a given set of <br />circumstances. Although [he circumstances originally causing the suspension <br />of operations and production may no longer a:ist, nothing precludes the lessee <br />or operator from applying for a retroactive suspension of operations and <br />production. Normally, this application should be filed within 1 year of the <br />circumstances that caused the operator or Lessee to cease operations and <br />production on the leasehold to ensure that the authorized officer is able to <br />verify the facts contained in the application. If approved by Che authorized <br />officer, the duration of the suspeasion of operations and production would <br />apply to the lease terms and conditions, or LM[J approval stipulations, in <br />""•ccordance with the criteria and limitations described in the preceding <br />~ iecussion. <br />l <br />"For coal, the suspension of rental and royalty raymeats begins with the first <br />day of the lease month in which the suspension of operations and production <br />becomes effective (see 43 CFR 3483.3(b)(1)). <br />Foz solid minerals, the suspension of rental and minimum annual production <br />begiae rich: <br />1. The first day of the lease month on which the suspension of operations <br />and production becomes effective; or <br />2. The first day of the lease month following the effective date of the <br />suspension of operations and production if the suspension became <br />effective on any date other than the first day of a lease month (see <br />43 CPR 3503.3-1(d)). <br />Rental and royalty lease terms are suspended as of the effective date of the <br />suspension of operations and production. Horever, the suspension of payment <br />of rental and royalty may occur at a different time. The two dates need not <br />be the same. <br />The suspension of operations and production relieves for the duration of the <br />suspenalon the lessee of financial obligations under coal and solid mineral <br />gases, as well as the Pederal (non-Indian) portion of an approved I1lU, with <br />.e exception of deferred bonus payments. Therefore, rental and royalty <br />.yments are suspended during a suspeasion of operations and production. <br />Attachment 1-LO <br />