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15 <br />such operation shall be interrupted by strikes, the elements, or casualties <br />not attributable to the lessee "(30 U.S.C. 207 (1970)). The diligent <br />development requirement for these non-PCLAA coal leases must not be confused <br />with current diligence requirements that resulted from the enactment of FCLM <br />on August 4, 1976, and subsequent promulgated regulations now !o force. <br />Section 7, as amended by PCLAA, now reads at section 7(b) that each coal lease <br />'shall be subject to the conditions of diligent development and continued <br />operation of the mine of mines, ezcept where operations under the lease are <br />interrupted by strikes, the elements, or casualties not attributable to the <br />lessee" (30 U.S.C. 207(b)). <br />The MLA is different for phosphate. Amended Section 10 of ?II.A states that the <br />leases "shall be conditioned upon a minimum annual production or the payment <br />of a minimum royalty in lieu thereof, ezcept when production is interrupted by <br />strikes, the elements, or casualties not attributable to the lessee" (30 <br />U.S.C. 212). Identical language was used for potassium in Section 3 of the <br />Act of February 7, 1927, as amended (30 U.S.C. 283). <br />It should be noted that the key phrase in each case is that operation(s) or <br />production must be "interrupted by atrikea, the elements, or casualties not <br />attributable to the lessee." From this, it is clear that these events moat be <br />present in order for a lease to qualify for a force majeure suepeasion: <br />° The operations on, or production from, the lease moat be interrupted; <br />° The interruption must be caused by atrikea, the elements, or <br />casualties; and <br />° The interruption moat not be attributable to the lessee. <br />If production is interrupted by "strikes, the elements, or casualties not <br />attributable to the lessee," operations under the lease are also affected <br />because production is a phase of operations. <br />"Strikes" includes a labor strike affecting the mine, processing facility, or <br />transportation of coal or solid minerals and are considered se qualifying <br />events for a force majeure suspension of a lease. <br />"ffiemeate" refers to earth, air, fire, and water. It includes events caused <br />by natural forces such as earthquakes, gale-force winds, wildfires and <br />floods. Failure of equipment due to seasonal temperature eztremea or mine <br />shutdown due Co seasonal conditions is not considered to be an event causing a <br />disruption of operations or production and would not qualify for a force <br />majeure suepeasion because these situations are not considered either <br />uncontrollable or unezpected. <br />Attachment 1-18 <br />