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9 <br />B. Suspension of Operations (Non-FCLAA Coal Leases and Solid Minerals Only). <br />1. Statutory Authority and Regulations. <br />A suspension of operations does not apply to, and may not be approved for, say <br />coal lease subject to FCLAA or for say LMU. <br />prior to August 4, 1976, Section 7 of MLA (30 U.S.C. 207 (1970)) provided for <br />a "suspension of operation" for non-FCLAA coal. Such a suspension of <br />operations was "not to exceed six months ac any one time when market <br />conditions are such that the lease cannot be operated except at a loss." When <br />Section 7 was amended by FCLAA on August 4, 1976, the provision for <br />"suspension of operation" was not retained. (Cf. 30 U.S.C. 207 (1970) with 30 <br />U.S.C. 207(b) (1976)). 'Therefore, only those coal leases issued prior to <br />August 4, 1976, that have not yet become subject to the provisions of FCLAA <br />may qualify for a suspension of operations, if so provided by the terms of the <br />lease. For coal leases issued after August 4, 1976, or otherwise made subject <br />to the provisions of FCLAA, the condition of continued operation may be <br />suspended upon payment of advance royalty in lieu thereof (30 D.S.C. 207(b)), <br />a subject not covered in these guidelines. For guidance on payment of advance <br />royalty in lieu of continued operation, refer to the Dili eat Develo meat and <br />Continued Ooeration (Section 7 of the Mineral Leasing Act Guidelines for <br />of <br />of February 25. 1920 <br />as amended (!U U.S.C.lU2aJ (SU FR 3S14S, August 29, 1995, <br />Memorandum No. 85-322, September 5, 1985), as appropriate. <br />The phosphate and potassium leasing provisions of MLA, 30 U.S.C. 212 <br />(phosphate) and 283 (potassium), state: <br />";?ie Secretary of the Interior may permit suspension of operations <br />under any such leases when marketing conditions are such that the <br />leases cannot be operated ezcept at a loss." <br />Por phosphate, this provision was enacted as part of Section 11 of the <br />original MLA with the suspension limited to a 12~onth period. Congress <br />removed the 12-month limitation (Section 10 of the Act of June 3, 1948) and <br />added the potassium provision Sa Sections 3 and 9 respectively of the Act of <br />June 3, 1948. <br />Section 7 of MLA (30 U.S.C. 207 (1970)). which prescribed the terms sad <br />conditions of non-FCLAA coal leaaz:~, 3t:.ted: <br />"Ae (the Secretary) may permit suspension of operation under such lease <br />for not to ezceed siz months at any one time when market conditions are <br />such that the lease cannot be operated except at a lose." <br />This provision remains applicable to non-FCLAA coal leases which have not been <br />readjusted or otherwise made subject to the amended statute since August 4, <br />1976 (non-FCLAA coal leases). Currently, amended Section 7 (30 U.S.C. 207) <br />+' contains no economic suspension authority. <br />l __ Attachment 1-12 <br />