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~I <br />xs <br />requested in accordance with appropriate "secondary office of control" <br />procedures. The financial teat for the determination of uaeuccesaful <br />operations from the 1987 royalty reduction guidelines will be the <br />basis for the decision on whether the lease cannot be operated escept <br />at a loss. If an MMS audit is required, MMS, in accordance with the <br />Memorandum of Understanding with B71~[ dated February 9, 1987, xill <br />furnish a statue report within 45 days indicating the length of time <br />MMS will require to complete the audit. <br />Prior to approving or denying a suspension application, the authorized <br />officer shall ensure coordination with the Chief, Mvision of Solid <br />Mineral Operations (WO-660) on the anticipated action and reasons <br />therefor. This requirement allows the Director to ensure nationwide <br />policy consistency prior to final action on a suspension application. <br />" Update ALMRS to show that reports from other Federal Agencies gave <br />been requested. Enter date(s) of receipt xhen the Federal <br />Agencies respond to requests. <br />5. Inspection of Operations. <br />The BIli office having responsibility for inspection and enforcement <br />will inspect the lease or leases for which s suspension has been <br />~~" -_ requested in order to verify the conditions, situation. or events upon <br />which the application is based. The inspection will be coordinated <br />~ with other surface management or administrative agencies which will be <br />asked to participate, when appropriate. Inspection activities <br />relating to the suspension application will be fully documented in <br />each lease case file. <br />'* Update SINS inspection-related data elements. <br />6. Decision Approving or Rejecting the Application. <br />After review of the application and receipt of the inspection report <br />and any comments or recommended stipulations from other Federal <br />Agencies, the authorized officer will evaluate the information to <br />determine whether the suspension requested by the lessee can be <br />adequately justified based on that information. The case file moat <br />contain sufficient documentation. ezcluaive of any proprietary/ <br />confidential information. to support the authorized officer'• <br />decision, whether the decision is to approve or reject the suspension <br />application in whole or part. <br />All decisions on suspensions will use the formal or modified decision <br />format. A letter to the lessee stating the authorized officer's <br />decision is not appropriate where a coal or solid mineral leases terms <br />l and conditions or I.MU approval stipulations are being affected. <br />~. <br />t J .' <br />Attachment 1-28 <br />