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10 <br />Ftom the above statutory provisions, it is clear that Congress intended a <br />suspension of operations to afford a lessee relief when "marketing conditions" <br />were ouch that the lessee could not operate the leases "ezcept at a loss." <br />Mine-cost and financial data will be required from Che lessee in order for the <br />authorized officer to make that determination. The financial teat for the <br />determination of unsuccessful operations from the 1987 royalty reduction <br />guidelines will be the basis for the determination of whether a lease can or <br />cannot be operated ezcept at a loea. <br />For certain solid mineral leases (sodium, sulphur, and gileonite), MLA is <br />silent regarding a auapenaion of operations. The Secretary's rulemaking <br />authority, provided by law and 1a the special leasing acts (30 U.S.C. 291-293) <br />alloxs for a suspension of operations to be eztended by regulation to hardrock <br />minerals and special-act solid minerals administered by BLM under 43 CFR Group <br />3500. <br />The chart below summarizes the statutory authority and regulations which apply <br />to each of the solid minerals. <br />LEASE SUSPENSION OF OPERATIONS <br />COMMODITY I STATUTE REGULATIONS <br />Coal - Applies to MIA, Sec. 7 No Current Regulations <br />Non-FCLAA Onl 1(30 U.S.C. 207 (1970))1 <br />Sodium, Sulphur, MLA, Sec. 32 4 CFR 35 3.3-2 <br />Gilsonite I (30 U.S.C. 189) I <br />Phosphate tilA, Sec. 10 3 CFR 350 -2 <br /> (30 II.S.C. 212) <br />Potassium Act of 2 7 1927, Sec.3 43 CFR 3503.3-2 <br /> 1 (30 U.S.C. 283) 1 <br />Hardrock and Other 43 U.S.C. 1201, 43 CFR 3503.3-2 <br />Special-Act Minerals 130 U.S.C. 291, etc. I <br />2. Suspension-Qualification Criteria. <br />a. Lease-Suspension Criteria. There are three conditions xhich must be <br />met in order fora lessee to obtain a suspension of operations: <br />° The lessee moat demonstrate that marketing conditions are such that <br />the lease(s) cannot be operated ezcept at a loss; <br />° Tne leases included is a suspension of operations application must <br />have received authorization to mine and onsite mine development moat <br />have commenced for the mine in order to conform to the "auapenaion <br />of operation(s)" phrase used is the statutory language; and <br />° The lease rental and royalty account moat be in good standing xith <br />lDIS. <br />A suspension of operations for a non-FCLAA coal or solid mineral lease may be <br />granted for one or mote leases covered by an approved mine plan and included <br />in an application for a suspension of operations. <br />~ Attachment 1-13 <br />