Adjudicating a Lease Suspension

Students will learn how to process lease suspension actions for oil and gas leases. Lease suspensions provide a mechanism for relieving lessees from lease operating and producing requirements and stops the running of the lease term.  After taking this course, students will know if the suspension affects the lessee’s obligation to pay rentals, royalties, or minimum royalties. They will also be able to identify the needed updates to the lease’s term upon lifting the lease suspension.

Target Audience
Fluid mineral adjudicators or anyone performing their duties including but not limited to Land Law Examiners, Legal Instruments Examiners, Geologists, and Petroleum Engineers.

Course Goal
Upon completion of this course, participants will be able to adjudicate an Oil and Gas Lease Suspension and adjust the terms of the lease due to the lease suspension.

Course Objectives
In order to reach the course goal, students will be given knowledge to:

  • Understand the Rules and Regulations which apply to lease suspensions,
  • Define and identify the types of suspensions,
  • Explain circumstances that would not warrant a lease suspension,
  • Explain the circumstances that warrant the different types of suspensions,
  • Identify how and when a lease suspension affects the term of leases, and
  • Adjudicate and process sample lease suspensions.

Note
To receive course credit, enroll in the course on the DOI Talent (DOIT) course page, take the pre-test, follow the KRC directions below, self-certify course completion, and complete the post-test.

Directions 
Before starting, it is recommended students print the 43 CFR 3103 Suspensions Handout for Students PowerPoint presentation and Charts for Prorating Rental document (found within the Toolbox below).  While completing the course it is also recommended students refer to the current version of 3103 Handbook for Fees, Rentals, and Royalty for sample letters and decisions (see the Reference Docs attachment, in the Toolbox, for a link on where to find). 

View the Course PowerPoint and either listen to the recording or read the script (located under "Course Materials"), stopping as appropriate, to complete the following exercises:

  1. Exercise 1 (pause on slide 31, finish the exercise, then resume to hear the solution).
  2. Exercise 2 (pause on slide 36 until finished).
  3. Exercise 3 (pause on slide 41 until finished).

Training Course Materials

Toolbox

To view your Adobe documents in a presentation (full screen) format using Chrome,

  1. Select the Open in Acrobat button. This button is only available in Chrome.
  2. Select the Enable All Features button. The Full Screen view will not be an option while in Protected View.
  3. Select the View option on the Menu bar.
  4. Select the Full Screen Mode option from the View menu.

To view your Adobe documents in a presentation (full screen) format using Edge,

  1. Right click the link.
  2. Select the copy link option from the shortcut list.
  3. Open Acrobat.
  4. Select the File option from the menu bar.
  5. Select the Open option from the File menu.
  6. Paste the address in the File name box.
  7. Select the Open button.
  8. Select the Enable All Features button. The Full Screen view will not be an option while in Protected View.
  9. Select the View option on the Menu bar.
  10. Select the Full Screen Mode option from the View menu.

For answers to questions relating to the course content (lease suspensions), please contact your State Office’s lead or Supervisory Adjudicator. 

If you have questions regarding the course requirements and credit, please contact the course training coordinator, Hillary Conner, at hconner@blm.gov or 602-905-5533. 

Related Links: