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t <br /> • • <br /> 3 <br /> General Electric Holdings, Inc. (GEH) , reserved non-participating minimum <br /> royalty and overriding production royalty interests to the coal lying above <br /> the Twentymile Sandstone in these assignments. GBH specifically transfers <br /> and assigns to Trapper "all reversionary and similar rights" that it may <br /> have had in each coal lease and "all first refusal, reversionary and similar <br /> rights" that it may have had in the sublease under Sections 7.4 and 9.4 of <br /> the Royalty Agreement, dated July 23, 1982, between Utah International Inc. <br /> and Trapper Mining Inc. GEH's retention of non-participating minimum royalty <br /> and overriding production royalty interests is not a holding of "working <br /> interest" in a lease under the regulations at 43 CFR 3472.1-2(e) and will not <br /> trigger the crucial "holds . . . and has held" phrase in section 2(a)(2)(A) <br /> of the Mineral Leasing Act of 1920, as amended. <br /> The 10-year holding period under section 2(a)(2)(A) for General Electric <br /> Holdings, Inc. , was to have ended May 31, 1988. Trapper Mining Inc, filed <br /> its arm's length assignments of the five leases on April 28, 1988. The <br /> assignments remained pending until compliance with additional requirements <br /> and this decision. Because GEH assigned all reversionary rights to Trapper, <br /> section 2(a)(2)(A) did not disqualify GEH from obtaining other leases under <br /> the Mineral Leasing Act during the period from April 28, 1988, to July 1, 1990. <br /> Therefore, based on the regulations at 43 CFR 3472.1-2(e)(4)(i) and (ii) , it <br /> is our understanding that any federal mineral leases that may have been issued <br /> during this period to General Electric Holdings, Inc. , or to its subsidiary, <br /> Ladd Petroleum Corporation, are valid because there is no adverse decision by <br /> the authorized officer on the request for assignments to Trapper Mining Inc. <br /> Q,�-lmoa)4— <br /> State Director <br /> Enclosures (6) <br /> Assignments (Assignee Only) <br /> cc: <br /> AEtua Casualty and Surety Co. <br /> Federal Insurance Co. <br /> R. Fanyo, Welborn Dufford Brown 6 Tooley <br /> J. Mitchell, Sherman 6 Howard <br /> L. Rising, Regional Sol. Office <br /> MMS (Ref. Data Br.-Sec. 1) w/asgns. <br /> OSMRE w/asgns. <br /> _-Governor c/o State Clearinghouse <br /> DM, Craig w/asgns. <br />