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Saturday, Novem ber 28, 1959
proposed amendments would change 193.2, 193.3b, 193.11a3
and 193.18. Interested parties were given 30
days within which to submit written comments and suggestions, with respect to-the proposed amendments.
As the result of the only comment re ceived within the 30-day period, the pro posedamendments are hereby adopted with a change-in 193.18b, and are set forth below.

FEDERAL REGISTER
to the applicant for additional acreage of not more than 5,120 acres within the aggregate limitation of 2,560 acres in a single lease or perm it, subject to such terms and conditions as may, be pre scribed by the Secretary of the Interior.
Such terms and conditions may require the payment either of a cash bonus per acre or fraction thereof or a rental and royalty rate different from that required by the original leases or permits or both.

9529
Circular 2031

PART 201 MINERAL DEPOSITS IN
THE OUTER CONTINENTAL SHELF
Extension of Leases by Drilling or Well Reworking Operations
On pages 7460 and 7461 of the F ed er al of September 16, 1959, there was published a notice of proposed rule making, to add a new 201.20a, to 43
CFR Part 201, providing for extension These amended regulations become 2. Paragraph b of 193.3 is amended of leases by drilling or well reworking effective at the beginning of the calendar to read as follows:
operations.
Interested persons were day on which they are published in the given 30 days within which to submit 193.3 Qualifications o f applicants.
F ederal R e g ist e r .
written comments, suggestions, or objec

F red A . S e a t o n , b Every applicant for coal permit or tions with respect to the proposed new Secretary of the Interior.
lease, other than a company or corpora section. Comments have been received N o v e m b e r 20,1959.
tion operating a common-carrier rail and considered. The new section is hereby adopted without change and is 1.
Section 193.2 is amended to readroad, must show that, with the area set forth below. This section shall be applied for, his or its interest or interests, as follows:
in such permits, leases and applications come effective at the beginning of the 193.2 Area and limitation on hold therefor, directly or indirectly, do not calendar day on which it is published ings; segregation o f coal deposits; exceed in the aggregate 10,240 acres in in the F ed eral R e g is t e r .
public hearings.
any one State.
Dated: November 24,1959.
a A single lease or permit may em E l m e r F. B e n n e t t , 3. Paragraph a 3 of 193.11 is brace not exceeding 2,560 acres except Acting Secretary of the Interior.
amended to read as follows:
where the rule of approximation applies.
Section 201.20a, a new section, is A permit will comprise contiguous tracts, 193.11 Application fo r lease.
added to Part 201, to read as follows:
or tracts in reasonably compact form if a
good reason appears for not including a 3
A statement of thé interests, di 201.20a Extension o f leases by drilling contiguous area. A lease will comprise rect or indirect, in other coal leases, per or well reworking operations.
contiguous tracts, except in cases where mits or applications therefor on public a The Secretary shall be deemed to it appears that noncontiguous tracts lands in the State in which the lease is can be practically worked as a single desired, identifying same by land office have approved, within the meaning of mine or unit. No person, association or and serial number, and that Such inter section 8 b 2 of the Outer Continen corporation may hold at any one time, ests, when added to the acreage covered tal Shelf Lands Act, drilling or well re either directly or indirectly, leases or by the application, do not exceed in the working operations, conducted on the permits exceeding 10,240 acres in any aggregate 10,240 acres in the State. A leased area in the following instances:
1 If, after discovery of oil or gas one State, except as hereinafter stated. railroad company or corporation operat b A person, association, or corpora ing a common carrier must state that its in paying quantities has been made on tion may file with the Manager o f the interests, together with the acreage cov the leasehold, and within 90 days prior appropriate land office an application or ered by the application, do not exceed to expiration of the five-year term or any extension thereof, or thereafter, the pro applications for coal leases or permits in the aggregate 10,240 acres.
duction thereof shall cease at any time, for acreage in addition to the 10,240
4. Section 193.18 is amended by desig or from time to time, from any cause and acres, which application or applications shall be in multiples of 40 acres, not nating the text thereof paragraph a , production is restored or drilling or well exceeding a total of 5,120 additional changing the title of the Section, and reworking operations are commenced acres in any one State, and shall contain adding new paragraph b to read as within 90 days thereafter, and such drilling or well reworking operations a statement that the granting of a lease follows:
or permit for such additional lands is 193.18 Cancellation o f lease generally ; whether on the same or different wells are prosecuted diligently until produc necessary to carry on business economi cancellation o f lease or permit issued tion is restored in paying quantities.
cally and is in the public interest.
pursuant to 193.2 d .
2 If, within 90 days prior to expira c Upon the filing of an application

tion of the five-year term or any exten for additional lands as specified in para b A lease or permit issued pursuant sion thereof, or thereafter, at any time, graph b of this section, the coal de to 193.2d may be canceled by or from time to time, lessee is engaged in posits in the lands covered thereby shall the authorized officer, if the cancellation drilling or well reworking operations on be temporarily set aside and withdfawn is in the public interest or the coal de the leasehold and there is no well on the from all forms of disposal under the Act. posits in the lands covered thereby are leasehold capable of producing in pay d All applications filed for addi no longer necessary for the lessee or per ing quantities and the lessee diligently tional lands as specified in paragraph mittee to carry qn business economically prosecutes such operations whether on b of this section shall be posted in the or if the lessee or permittee has divested the same or different wells with no ces appropriate land office, and the author himself of all or any part of the original sation of more than 90 days.
b
The Secretary may approve such ized officer shall conduct public hearings 10,240 acres or no longer has facilities thereon. Upon conclusion thereof, he for the.exploitation of the deposits under other operations for drilling or rework may, in his discretion or whenever suffi lease or permit. However, such lessee ing upon application of lessee.
c Nothing in this section obviates cient public interest is manifested, re or permittee will be given notice o f the the necessity of obtaining the Oil and proposed cancellation and afforded an evaluate the lessees or permittees need Gas Supervisors approval of a plan or for all or any p a r t .of the additional opportunity o f submitting evidence notice of intention to drill or of comply acreage. Thereafter and to the extent showing why the lease or permit should ing with the other provisions of 30 CFR
necessary for the applicant to carry on not be canceled.
Part 250.
business economically, the authorized F.R r Doc. 59-10027; Filed, Nov. 27, 1959; F.R. Doc. 59-10033; Filed, Nov. 27, 1959;
officer may issue coal leases or permits 8:46 a.m.
8:47 a.m.
R e g ist e r