R2 SUPPLEMENT 2800-92-5 EFFECTIVE 10/30/92 2830 Page 1 of 18 FOREST SERVICE MANUAL DENVER, CO FSM 2800 - MINERALS AND GEOLOGY R2 Supplement No. 2800-92-5 Effective October 15, 1992 POSTING NOTICE. Supplements to this title are numbered consecutively. Post by document name. Remove entire document and replace with this supplement. Retain this transmittal as the first page of this document. The last supplement to this Title was Supplement 2800-92-4 to 2850. Page Code 2830.1 2831--1 through 2831--18 2832 Superseded Sheets 1 9 1 Supplements Covered R2 Supplement 28, 6/86 R2 Supplement 24, 5/86 R2 Supplement 28, 6/86 New Document Name 2830 (Number of Pages) 18 Digest: Corrects minor wording and updates to electronic format. ELIZABETH ESTILL Regional Forester R2 SUPPLEMENT 2800-92-5 EFFECTIVE 10/30/92 2830 Page 2 of 18 TITLE 2800 - MINERALS AND GEOLOGY 2830 - MINERAL RESERVATIONS AND OUTSTANDING MINERAL RIGHTS. 2830.1 - Authority. Authority is delegated to the Director, Physical Resources to sign reports to the Colorado Board of Land Commissioners regarding Forest Service recommendations whether State-owned minerals in the National Forest System lands should be leased and the appropriate terms and conditions if the Board decides to lease the minerals. Such signature shall be shown as Acting Regional Forester. 2831 - MINERAL RESERVATIONS. The following is an outline to guide and monitor the transition of mineral interests from private to Federal ownership. MANAGEMENT PROCEDURES REVERTING MINERAL INTERESTS INTRODUCTION The following procedures have been developed to monitor the transition of mineral interests from the private sector into Federal ownership. They apply to situations commonly found on the National Grasslands where the U.S. acquired title to land subject to a term mineral reservation (and that reservation is nearing expiration). While not required by law, these procedures assist in the protection of the public's rights by insuring that affected entities are aware in advance of the imminent shift in mineral interest ownership and the conditions from which such rights were established. Entities holding private leases and/or operating rights are to be informed of U.S. Department of Interior regulations which may allow leasing to continue under mineral interest ownership of the U.S. 1. FOREST SERVICE RESPONSIBILITY. a. Regional Office (RO). (1) Lands Staff will identify land parcels involved, notify the Bureau of Land Management of the change in mineral interest ownership, and provide affected National Forest (Grassland) with amended Land Status Records as well as technical staff assistance in the interpretation of legal documents. (2) Mineral staff will insure adequate funding and monitor program progress. b. Forest Supervisor's Office (SO) will coordinate between RO and Ranger District (RD), notify the Governor and Congressional representatives, provide adequate funding, and assist the RD as needed. c. Ranger District will take the lead in effectuating the mineral reversion by processing all cases and coordinate with SO to insure that all affected entities are notified. R2 SUPPLEMENT 2800-92-5 EFFECTIVE 10/30/92 2830 Page 3 of 18 2. LAND PARCEL IDENTIFICATION. The Regional Forester, through the Lands Staff Unit, will provide the Forest Supervisor with a listing of land parcels where the mineral estate may revert to the United States. The listing will be by legal description and/or parcel number tied to Land Status Records; acquisition file number will be included. (Not less than 24 months in advance of reversion.) 3. FILE AND RETRIEVAL AND REVIEW. The RD minerals staff will coordinate with the SO to: a. Obtain archive information and retrieve the acquisition file(s) from the Federal Records Center using Optional Form 11. b. Review the land acquisition file to determine what rights, if any, will revert to the U.S. Since data from this review will be used to assert title, insure that applicable documents are reviewed in their entirely. Documents of particular concern are: (1) The conveyance document -- usually a Warranty Deed. This is a legal instrument executed by the owner which conveys to the U.S. right, title, or interest in or to real estate. Conveyance documents are located either in the County Recorder's office and/or at the Federal Records Center in Lakewood, Colorado. Determine status of the deed; that is, whether it is self operative or production extension. A Self operative deed is a conveyance document whose language specifies a mineral interest reservation which terminates at a specified period of time with no possible extension by interest holder. Example: ". . . excepting and reserving all minerals . . . for a period of 50 years from date hereof . . . ." A production extension deed is a conveyance document containing a mineral interest reservation with a specific reversion date, and an exception clause which extends the time period of the mineral reservation if mineral production is occurring at the time mineral interest would have reverted back to the U.S. Example: ". . . excepting and reserving minerals . . . for a period of 50 years from March 1, 1936, and so long thereafter as oil, gas . . . are produced therefrom . . . or the premises are being developed or operated . . . ." (2) The title opinion--usually a letter prepared by the Attorney General addressed to either the Secretary of Agriculture or the Administrator of Resettlement Administration. R2 SUPPLEMENT 2800-92-5 EFFECTIVE 10/30/92 2830 Page 4 of 18 This is a legal opinion concerning the validity of the title as shown by the abstracts, title insurance reports, or other evidence of title. The file may contain several title opinions; however, the Final Title Opinion prepared after the conveyance is completed is most desirable. See Exhibit A. (3) Abstract of Title--a summary of all conveyances. The abstract is a chronological listing of all transactions that have occurred for any particular property. It provides information relative to recording of documents, such as deeds, wills, and legal proceedings. The names of the parties, the description of the land, and the agreements are arranged show sequence of ownership. A review of the Land Acquisition file should include scanning all material, including correspondence, to insure that nothing is overlooked, regardless of previous reviews. documents of interest include the Offer to Sell; RA-LU1 form on reservations cited in Offer to Sell; and, RA-LU1a form on exceptions (rights outstanding in third party). On Category 2 reversions, review all material pertaining to both the land purchase and the subsequent exchange. Category 1 reversions refer to a land transaction where the United States acquired title to land subject to a term mineral reservation or outstanding right and the surface is still under U.S. administration. Category 2 reversions refer to a land transaction where the United States acquired title to land subject to a term mineral reservation, then subsequently exchanged it to others, but reserved the minerals subject to the term mineral reservation. c. Machine copy all pertinent documents, including reference to current mineral lessees and set up a "reversion envelope" within the acquisition file. All subsequent correspondence and documents relating to the reversion should be housed in the reversion envelope portion of the acquisition file and be considered part of this permanent file. d. Reverting Mineral Estate Data Sheet. Complete this sheet (Exhibit B) for each file. Identification of the Land Status Line Numbers will serve as a check and expose inconsistency when the Line entry is compared with results of the file review (item 3 above). The following data is keyed to Exhibit B: (1) Reversion year--year the mineral rights revert back to the U.S. The year is computed by adding specified number of years of mineral reservation shown in conveyance deed to the year the deed was executed (i.e., 1936, execution date of deed, plus 50 years reservation from date of deed is computed to be 1986). (2) Reversion date--see(1) above. Deed date of 12/13/38; reversion date should be midnight 12/12/88. (3) Percent of interest--refers to amount of mineral rights that will revert to U.S. This is indicated in the deed. R2 SUPPLEMENT 2800-92-5 EFFECTIVE 10/30/92 2830 Page 5 of 18 (4) Acres--number of acres of land whereby a mineral reservation will revert to U.S. This is in the legal description of the deed. (5) Deed date--effective date of land transaction. (6) Reservation clause--the clause in the deed citing the excepted and reserved rights. (7) Outstanding rights--a third party (not the grantor or grantee), an interest in minerals not owned by the party (grantor) deeding the land to the U.S. Also, an exception in the deed which is the result of a prior conveyance of the same parcel of land separating title to certain minerals from the surface right. (8) File designation--information on case or file identification numbers for each parcel is found on the Land Status Tabular Record, the 5400-21 Basic Information Sheet, and the case file itself. (9) Federal Records Center information--information pertinent to accession of case files. Obtained from Form OF-11. (10) Proponent--the party (grantor) deeding the land to the U.S. and excepting and reserving certain mineral rights. (11) Legal descripition--found in the deed, identifies exact location where mineral rights have been excepted and reserved. Expressed in section subdivision, Section, Township, Range, Meridian, and County. (12) Land Status Tab line numbers--obtained from land status records; used as a cross check to insure accuracy of each case file review (Compare items 1, 2, 3, 7, and 11 of Reverting Mineral Estate Data Sheet with Land Status Tab for cross check.) (13) Surface owner--the party (grantee) who acquired the ownership of the land surface (U.S. unless Category 2--see item 3.b(3) above). (14) Remarks--summary of the case situation, including information on documents needed to complete the initial review. 4. RECORDATION. The RD will record with the County as acknowledge STATEMENT OF REVERSION (Exhibit C) no less than 24 months prior to the reversion date (Cases involving a production extension clause can only be processed at expiration of the initial term, do not record on these cases. See item 7, FIELD CHECKS.) a. Recordation data on the instrument creating the U.S. interest (the original conveyance document) will be included with every entry; this reference will direct researchers to the conveyance document. b. Include data on all reversions occurring during a specified period, that is, calendar year. R2 SUPPLEMENT 2800-92-5 EFFECTIVE 10/30/92 2830 Page 6 of 18 c. Place copy of recorded STATE OF REVERSION in applicable acquisition file reversion envelope. d. Transmit two (2) copies of recorded STATEMENT OF REVERSION to RO with applicable Reverting Mineral Estate Data Sheets and acquisition documents (conveyance deed). Care must be taken to insure that the information contained in the STATEMENT OF REVERSION is complete and accurate. 5. IDENTIFICATION--INTERESTED PARTIES. The SO and Rd mineral staff will coordinate to list the names and addresses of parties that have an interest in the reversion of the mineral interests to the U.S. Interested parties should include, but not be limited to, the following: a. Lessee/Operator--the person(s) or company(ies) who has a lease and/or the operating rights on the mineral interests. Information on lessees/operators may be found at the County court house typically recorded under Oil and Gas. Other land status records may identify lessee/operator. Oil and gas companies may also have available data on lessees/operators. A legal description of the land parcels is essential when attempting to locate lessee/operator. b. Lessor--the person(s) or company(ies) who granted the lease. Information sources same as lessee. c. Mineral Estate Owner--the person(s) or company(ies) that has title to the mineral estate which will revert to the U.S. Since identification of the current mineral estate owner(s) may be difficult, this information can be requested from the lessee(s)/operator(s) in conjunction with heir notification (item 6.a.(1)). d. Government Officials. Governor U.S. Congressional Representative(s) County Commissioner(s) State Oil and Gas Commission e. News Media. Local newspaper, as appropriate. Regional newspaper, as appropriate. R2 SUPPLEMENT 2800-92-5 EFFECTIVE 10/30/92 2830 Page 7 of 18 6. NOTIFICATION--INTERESTED PARTIES. a. The RD will prepare an information package for the signature of the Forest Supervisor which will be sent to the Governor and U.S. Congressional Representatives identifying the imminent shift in ownership. The package should be transmitted prior to or concurrent with notification of other interested parties. The intention here is to provide these elected officials with background information prior to constituent inquiry. (1) A letter similar to Exhibit G will be used. (2) Copy of the STATEMENT OF REVERSIONS and DOI regulations governing leasing will be enclosed. It is not necessary that this become part of the acquisition file. b. The RD will notify the lessees/operators at least 18 to 24 months prior to the Reversion Date and within 30 days following recordation of the STATEMENT OF REVERSION. (1) A letter similar to Exhibit D will be used and will include a request for assistance in the identification of the mineral estate owner(s) if his (their) identity(ies) is unknown. (2) A copy of the applicable recorded STATEMENT OF REVERSION and Department of Interior regulation (43 CFR 3100) governing leasing will be enclosed. (3) Copy of notification letters will be made a part of the acquisition file. c. The RD will notify the mineral estate owner(s)/lessor(s) either 30 days following the recordation of the STATEMENT OF REVERSION or 30 days after their identity becomes known. (1) A standard form letter similar to Exhibit E will be used. (2) Copy of the applicable recorded STATEMENT OF REVERSION will be enclosed. (3) Copy of notification letters will be made a part of the acquisition file. (4) Copy of the document identifying the mineral estate owner(s)/lessor(s) will be made a part of the acquisition file. This document may be notations made from County records research or the response from lessee(s)/operator(s) as a result of our request for information. d. The RD will notify the County Commissioners and appropriate State Oil and Gas Commission of the imminent shift in ownership within 30 days following the recordation of the STATEMENT OF REVERSION. (1) A letter similar to Exhibit F will be used. R2 SUPPLEMENT 2800-92-5 EFFECTIVE 10/30/92 2830 Page 8 of 18 (2) A copy of the STATEMENT OF REVERSION and Department of Interior regulation (43 CFR 3100) governing leasing will be enclosed. (3) A copy of notification letter will be made a part of the acquisition file. e. The RD will provide the local news media with a release covering the situation (optional); a copy will be placed in the acquisition file. 7. FIELD CHECKS. A field check is required in all cases involving production extension clauses. The RD will conduct an examination of existing facilities on each site as well as production records within 60 days following expiration of the term reservation. Information on production may be available at the County court house from royalty tax records, local oil and gas company records. The review of these records should cover the two year period prior to expiration of the term reservation. a. If production records are void (no records of production) during the two years prior to expiration of the term reservation the RD will record a STATEMENT OF REVERSION using Exhibit C1 as a guide and follow the procedures found in item 4 RECORDATI0N. b. If production records and/or site inspection indicates production exists RD will establish a periodic field and/or production records check schedule. Discretion should be used in establishing the frequency of checks based on production volume, that is, an oil well producing 1,000 barrels a month will likely produce or 10 or more years while a well producing 25 barrels a month may only produce for a couple of years. 8. RETURN FILES TO FRC. Land acquisition files may be needed after the notification of interested parties and should be retained until no longer needed to allow for easy access of additional information. Optional Form 11 should accompany the files on return to FRC to insure proper refile and easy retrieval. Files for Category 2 (production extension) cases where production exits may be returned after the periodic check schedule is established. 9. CASE INFORMATION TRANSMITTED TO BLM. Upon receipt of the recorded STATEMENT OF REVERSION and supporting documents RO Lands will provide the State Office of the BLM with copy and request that notation to the Official Status Records be made. 10. LAND STATUS RECORDS AMENDED. Within 90 days following the date of the mineral interest reversion to the U.S., RO Lands will reflect the reversion in the Landownership Status (LOS) record and forward amended records to affected unit(s). R2 SUPPLEMENT 2800-92-5 EFFECTIVE 10/30/92 2830 Page 9 of 18 EXHIBIT A 33-104-17-1 GSP:KP December 7, 1936 Honorable Roxford G. Tugwell Administrator of Resettlement Administration Washington, DC Dear Mr. Administrator: I have the honor to report the final examination of the abstract, of title, deed and related papers pertaining to the acquisition of a tract of land, lying and being in the County of Norton, State of Kansas, containing 80 acres, more or less. This tract has been acquired under the provisions of existing legislation in connection with a project for which the land is being acquired by the Resettlement Administration from Archie Olif Ahlburg, a single person, by a warranty deed dated November 19, 1936, and recorded November 19, 1936, in the land records of the aforesaid County and State, in Book 21 of Warranty Deeds, page 483, the total consideration being $751.00.. The land is more particularly described in the enclosed executed warranty deed. The abstracts of title, consisting of 9, 4 and 6 pages, were prepared by E. W. Dean abstractor, and his final certificate dated November 20, 1936, is in satisfactory form. From an examination of the abstracts of title, deed and related papers, I am of the opinion that a valid title to said land is now vested in the United States of America subject to the reservation of all oil, gas, and other minerals in the land which have not been heretofore reserved by the United States for a period of fifty years from November 19, 1936, together with the right to enter upon said premises and use so much of the surface thereof as may be reasonably necessary for the purposes of this reservation and for the development, production and marketing of said minerals, which reservation has been waived by provisions of the memoranda and letter dated February 7, 1936 and March 19, 1936, respectively, approved by L. C. Gray, Director, Land Utilization Division, Resettlement Administration, and as Assistant Administrator for the Administrator, Resettlement Administration, and R. G. Tugwell, Administrator, Resettlement Administration. The abstracts of title, memoranda, affidavit, tax receipts, deed, purchase money receipt and related papers are enclosed herewith. Respectfully, Attorney General Enclosure No 60536 R2 SUPPLEMENT 2800-92-5 EFFECTIVE 10/30/92 2830 Page 10 of 18 EXHIBIT B REVERTING MINERAL ESTATE DATA SHEET Unit County (1) Reversion Year (2) Reversion Date (3) % of Interest (6) Reservation Clause: (7) Outstanding Rights? (8) (9) (10) (11) File Designation FRC Information Proponent Legal Description: (12) Land Status Line Numbers (13) Surface Owner(s) Mineral Estate Lessor(s) Current Lessor(s) Current Operator(s) Remarks: (4) Acres (5) Deed Date R2 SUPPLEMENT 2800-92-5 EFFECTIVE 10/30/92 2830 Page 11 of 18 EXHIBIT C To record with County: County, (State) STATEMENT OF REVERSION The examination of the acquisition and exchange files of the United States Department of Agriculture including title documents conveying property to the United State of America have revealed that: 1. In conveying the real property listed at Item 4 below to the United States of American the Grantors reserved unto themselves, Their heirs and assigns and/or third parties, all or part of the underlying minerals for a specified period of time. 2. The United States of America accepted title to the real property listed at Item 4 below subject to the mineral reservations found in the documents of conveyance. 3. The mineral reservations found in the documents conveying real property title to the United States of America listed at Item 4 below will expire on the date indicated when said minerals become property of the United States of America. 4. 6th Principal Meridian, Morton County, Kansas (meridian) (County) (State) PROPERTY AFFECTED Twp. Rg INSTRUMENT GREATING GOVERNMENT'S INTEREST Instrument Date Subdivision Date Grantor Book Page Expires Section (Type name of signee) (Title) Forest Service United States Department of Agriculture ACKNOWLEDGMENT State of County of ) ) ) SS The foregoing instrument was acknowledged before me this of , 19 by . WITNESS my hand and official seal the day and year first above written. (Signed) My commission expires: Address of signee day R2 SUPPLEMENT 2800-92-5 EFFECTIVE 10/30/92 2830 Page 12 of 18 Notary Public: Please print or type name and address beneath signature. EXHIBIT C1 To Record with County: County, (State) STATEMENT OF REVERSION The examination of the acquisition and exchange files of the United States Department of Agriculture including title documents conveying property to the United State of America have revealed that: 1. In conveying the real property listed at Item 5 below to the United States of America the Grantors reserved unto themselves, their heirs and assigns and/or third parties, all or part of the underlying minerals for (insert the entire reservation clause found in the conveyance document here. 2. The United States of America accepted title to the real property listed at Item 5 below subject to the mineral reservations found in the documents of conveyance. 3. An on the ground inspection and a review of oil and gas production records (state specific production records reviewed) covering the real property listed at Item 5 below was conducted (state when inspection and review was conducted) and there was no indication of production (if date of last production is known, so state here). 4. The mineral reservation(s) found in the documents conveying real property title to the United States of America listed at Item 5 below have expired and said minerals are now the property of the United States of America. 5. 6th Principal Meridian, Morton County, Kansas (meridian) (County) (State) PROPERTY AFFECTED Twp. Rg Section INSTRUMENT GREATING GOVERNMENT'S INTEREST Instrument Date Subdivision Date Grantor Book Page Expires (Type name of signee) (Title) Forest Service United States Department of Agriculture ACKNOWLEDGMENT State of County of ) ) ) SS The foregoing instrument was acknowledged before me this of , 19 by . WITNESS my hand and official seal the day and year first above written. day R2 SUPPLEMENT 2800-92-5 EFFECTIVE 10/30/92 2830 Page 13 of 18 (Signed) My commission expires: Address of signee Notary Public: Please print or type name and address beneath signature.WITNESS my hand and official seal the day and year first above written. R2 SUPPLEMENT 2800-92-5 EFFECTIVE 10/30/92 2830 Page 14 of 18 EXHIBIT D LESSEE/OPERATOR LETTER Dear : During the 1930's the United States, through the United States Department of Agriculture, Resettlement Administration purchased a number of private lands under provisions of Title III of the Bankhead-Jones Farm Tenant Act of July 22, 1937 (50 Stat. 525, as amended; 7 USC 1010-1012). Many of these properties were acquired subject to a reservation of mineral interests, by the seller for a specific period of time the most common being 50 years. These mineral interests will begin to revert to the United States in 1985 and will continue into the late 1990's. The enclosed STATEMENT OF REVERSION identifies those lands where mineral interest will vest in the United States during calendar years 1985 and 1986. According to our records, you hold a current mineral interest in the property which we have indicated by highlighting. Also enclosed is a copy of existing and proposed Department of Interior regulations applicable to Competitive and Future Interest Leases. We suggest that you review these regulations with consideration to any future effect they may have on your existing leases and/or operations. This letter is the result of our desire to notify all affected parties of the imminent shift in mineral ownership. Identification of lessee(s)/operator(s) is readily available, it is not for the mineral estate owners. We request that you provide us with a copy of the most recent Division Order, Title Opinion, or other listing of the names and addresses of individuals or companies that you indicate possess ownership interests in the surface or minerals on the property highlighted. A franked enveloped is enclosed to your reply. The information you provide will be used to alert the interest owners of the expiration of any rights. If you have questions relating to this action please contact the District Ranger, Cimarron National Grasslands, P.O. Box , Elkhart, Kansas; questions relating to leasing regulations should be directed to (State) State Office of the Bureau of Land Management, (include address.) Sincerely, (Name of Signee) Enclosures R2 SUPPLEMENT 2800-92-5 EFFECTIVE 10/30/92 2830 Page 15 of 18 EXHIBIT E United States Department of Agriculture Forest Service Rocky Mountain Region 11177 W. 8th Avenue Box 25127 Lakewood, CO 80225-0127 Reply to: 2830 Date: Dear Owner/Lessor: During the 1930's, the United States, through the U. S. Department of Agriculture Resettlement Administration, purchased a number of farmland properties under provisions of Title III of the Bankhead Jones Farm Tenant Act of July 22, 1937 (50 Stat. 525, as amended; 7 USC 1010-102). Many of these properties were acquired subject to a reservation of mineral interests by the seller for a specific period of time, usually 50 years. According to our records you presently hold an interest in the mineral estate of the property as shown on the enclosed Statement of Reversion, an interest which is approaching expiration. Current holders of substantially of all the operating rights on these lands may be able to obtain a lease interest through noncompetitive "future interest" leasing. On lands within a known geological structure or on lands containing a producing well, competitive "future interest: leasing is available. A competitive future interest lease is awarded to the successful high bidder. Persons who may be eligible for a future mineral interest lease should contract the Bureau of Land Management, Colorado State Office, 1037 20th Street, Denver Colorado 80202. This letter is provided as information and as a reminder of the imminent shift in ownership of the mineral estate. If you have questions relating to this action, please contact the District Ranger, Cimarron National Grasslands, P.O. box J, Elkhart, Kansas 67950. Sincerely, (Name of Signee) R2 SUPPLEMENT 2800-92-5 EFFECTIVE 10/30/92 2830 Page 16 of 18 EXHIBIT F COUNTY COMMISSIONERS/STATE OIL AND GAS COMMISSION Dear : During the 1930's the United States, through the United States Department of Agriculture, Resettlement Administration, purchased submarginal farmland of properties which, as a result of severe droughts and erosion, could not profitably grow crops. Many of the sellers reserved all or part of the mineral estate for a specified period of time, usually 50 years. The enclosed STATEMENT OF REVERSION identifies the properties where the mineral estate will revert to the United States during calendar years 1985 and 1986 as a result of the expiration of these reserved mineral rights. We are attempting to notify all identifiable parties concerned with the mineral estate of the imminent shift in mineral rights ownership. Entities holding current mineral leases and/or operating rights on these lands will be informed of existing and proposed Federal Regulations governing competitive and non-competitive Federal oil and gas leasing. Current mineral estate owners will also be notified. We hope this letter and the enclosed STATEMENT OF REVERSION provides you with useful information that may help in your future planning efforts. If you have questions related to this situation please contact the District Ranger, Cimarron National Grassland, P.O. Box , Elkhart, Kansas, telephone Sincerely, (Name of Signee) Enclosure R2 SUPPLEMENT 2800-92-5 EFFECTIVE 10/30/92 2830 Page 17 of 18 EXHIBIT G Dear Governor : The Forest Service, through its Ranger District Office in Elkhart, will be notifying individuals and companies that the mineral rights on certain lands on the Cimarron National Grassland in Morton County will revert to the United States. This letter provides you with the background information necessary to more fully understand what is involved in this action. During the 1930's the United States, through the United States Department of Agriculture, Resettlement Administration, purchased submarginal farmland properties which, as a result of severe droughts and erosion, could not profitable grow crops. Many of the sellers reserved all or part of the mineral estate for a specified period of time, usually 50 years. The first of these reserved interests will automatically revert to the United States in 1985 and continue into the 1990's. We are attempting to notify all identifiable parties concerned with the mineral estate of the imminent shift in mineral rights ownership. Entities holding current mineral leases and/or operating rights on these lands will be informed of existing and proposed Federal Regulations governing competitive and non-competitive Federal oil and gas leasing. These parties are also being asked to provide us with the names and addresses of mineral estate owners; information they should have, but would prove very expensive if we were to gather it independently. Current mineral estate owners will also be notified although action or the lack of it on their part will have no effect on rights. The parties involved should be aware of the conditions to which they obtained or retained their current rights. However, since the documents which established those rights are some fifty years old, some of the parties may not now be aware of these conditions. We hope our notification procedures will alert those who are yet uninformed. We have enclosed a recorded document, which identifies the lands where the mineral estate will vest in the United States in 1985 and 1986. We have also enclosed a copy of the Federal Regulations governing future interest leases. If inquiries are received regarding this subject, please contact me at Pike and San Isabel National Forests, 1920 Valley Drive, Pueblo, Colorado, telephone 719-5458737, for further information. Sincerely, FOREST SUPERVISOR Enclosure This material cross-references to FSM 5491. R2 SUPPLEMENT 2800-92-5 EFFECTIVE 10/30/92 2830 Page 18 of 18 2832 - OUTSTANDING MINERAL RIGHTS. Requests from State agencies for Forest Service review of State mineral leasing proposals for State-owned minerals under National Forest System surface are referred to the Forest Supervisor by the Regional Forester. The Forest Supervisor shall check title status and make an environmental analysis of the proposed action which takes into account the rights of the State. The environmental analysis must be documented in an environmental assessment and forwarded to the Regional Forester for review and subsequent decision. The Forest Supervisor shall work with the appropriate State agency(ies) to assure that operating plans include reasonable measures for mitigating adverse effects on surface resources and for reclamation in conformance with Forest Service land management goals and objectives.