(c) Procedure for acquiring a lease. equals 500 feet or less, showing (i) land (1) The lands as to which a lease is subdivision if surveyed, (ii) tract patsought must be in tracts, preferably rec- tern with courses and distances of the tangular, not to exceed 1,500 feet in boundary lines, and reference to a corlength by 600 feet in width, which must ner of the public land survey, if surbe distinctly identified and marked on veyed, or reference to a natural object the ground by suitable monuments at or permanent monument, if unsurveyed, each corner so that the surface bound-by which the location of the tract(s) on aries thereof may be readily found and the ground can be readily and accurately traced. When the true point for a tract ascertained, and (iii) position of concorner falls upon an inaccessible place, |flicting claims of which the applicant a witness corner should be established. or applicants are aware. The CommisMonuments should be posts not less than sion may require additional information 4 inches in diameter or stone monuments in connection with consideration of the at least 18 inches high and must be application. marked with the name of the tract and the designation of the corner, either by number or cardinal point.

(2) There must be posted conspicuously at one of the corner monuments for each tract of land so marked, a written or printed "Notice of Lease Application" containing the name(s) of the applicant(s), the name of the tract, the date of posting, the length and general course of the boundary lines of the tract and the position of the tract referenced to a corner of the public land survey or, if there is no public land survey, a natural object or permament monument. (3) The applicant or applicants shall record the "Notice of Lease Application" for each tract in the office of the county recorder of the county in which such tract is situated within thirty days after the identification, marking and posting of such tract on the ground as provided for in subparagraphs (1) and (2) of this paragraph.

(4) An application for a lease provided for by this section must be filed with the Atomic Energy Commission, Grand Junction Operations Office, P. O. Box 270, Grand Junction, Colorado, on a form prescribed for this purpose, within sixty days after the recordation required by subparagraph (3) of this paragraph, and must be accompanied by a certified copy or copies of the recorded "Notice of Lease Application", the rental required by paragraph (f) of this section, and a map satisfactory to the Commission on which one inch

(d) Eligibility of applicants. Uranium mining leases under this section will be issued only to qualified applicants who are (1) citizens of the United States, (2) associations of such citizens, or (3) corporations organized under the laws of the United States or of any state or territory thereof. A uranium mining lease will not be issued to anyone under 21 years of age.

(e) Commission decisions. All matters connected with issuance and administration of leases will be determined by the Commission, using the provisions of this section as criteria. Although priority in posting a tract, provided there is timely compliance with the other provisions of paragraph (c) of this section, will normally be the controlling criterion in cases where more than one application has been filed for part or all of a particular tract, consideration may be given to other factors. The Commission reserves the right to refuse to issue a lease as to any or all the tracts included in an application even though there has been compliance with the terms of this section if it believes such refusal is desirable in the national interest.

NOTE: Misrepresentation or falsification of facts in a notice of application for lease or in the application may subject the offender to criminal penalties under pertinent provisions of the United States Code including section 1001 of Title 18. Any such offenses also will disqualify the offender from receiving a lease.

(f) Royalty and rentals. Leases un- | each type of drilling, cubic yards of surder this section will be on a royalty-free face excavation in rock, gravel, earth or basis. Rental shall be ten dollars ($10) per lease year per tract of 1,500 feet by 600 feet, or fraction thereof, payable in advance by certified check or money order made payable to Treasurer of United States, at the time of application for a lease and prior to the beginning of each lease year thereafter. No refund of rental will be made by the Commission to the lessee or lessees should the lease be relinquished or canceled as provided for in paragraphs (k) and (1) of this section. If an insufficient rental payment is made, the Commission may, at its discretion, select the tracts under the lease to which the payment is applicable.

other material, cubic feet of underground excavation, indicated by type, or other work performed or improvements made on the leased premises. Whenever cost of labor is used as a measure of work performed, the statement must include the name or names of the workmen performing the labor, date or dates on which work was performed and a description of the work performed. In determining the cost of labor, actual wage rates shall be used unless they are in excess of rates prevailing in the area for similar work at the time the work was done, in which case the prevailing rates shall be used for the purposes of this computation. Labor performed or improvements made on any one tract may be applied to not more than nine (9) additional contiguous tracts under the same lease in the order designated by the lessees. Labor performed or improvements made under one lease may not be applied to satisfy work requirements under any other lease issued under this section.

(h) Size of lease. Ordinarily no lease containing in excess of 100 tracts will be issued.

(g) Work requirements. A condition of every lease entered into under this section will be the conduct on the leased premises of exploration, development or mining activities with reasonable diligence, skill and care for the purpose of achieving and maintaining maximum production of uranium ore consistent with good mining practice and the size of the deposit, unless other arrangements are specified in writing by the Commission. In any event, but not in limitation of the lease condition set (i) Lands to be in a reasonably comforth in the preceding sentence, such ac-pact body. The area covered by a lease tivities must include for each 1,500 feet by 600 feet tract, or fraction thereof constituting a tract, one hundred dollars ($100) worth of labor performed or improvements made on or beneath the surface of the leased premises during each lease year. Labor performed or expenditures made in marking or posting the tract or tracts comprising the leased premises, expenditures attributable to travel of personnel to and from the premises and acquisition cost of equipment may not be applied to satisfy work requirements of the lease. A statement signed by the lessee or lessees must be submitted to the Commission within fifteen (15) days after the close of each lease year listing the work performed under the lease as measured in lineal feet of

under this section should be in a reasonably compact body and will ordinarily consist of adjoining tracts or tracts closely situated to each other. No lease under this section shall convey extralateral rights.

(j) Term of lease. A lease issued under this section ordinarily will be for a term of five (5) years and renewable as to any or all of the tracts for not more than five (5) additional periods of three (3) years each upon written application made by a lessee or lessees in good standing within sixty (60) days prior to expiration of the lease or any extension thereof. If a tract leased under this section becomes open in whole or in part to location of mining claims under the United States mining laws during the

lease term, the Commission may refrain from thereafter extending such lease as to the land so opened to such entry.

panied by a statement of the assignee or assignees setting forth his or their qualifications to hold a lease and that (k) Relinquishment. A lease or any he or they accept and agree to be bound of the tracts under a lease may be re- by the terms and conditions of the lease, linquished by the lessee or lessees by provided the assignment is approved by written notification sent to the Commis- the Commission. No assignment of a sion at its Grand Junction, Colorado, lease will be approved which provides office. Relinquishment shall take effect for royalties on uranium-bearing ore on the date such notification is received production from the leased premises by the Commission as evidenced by the which amount to more than fifteen perwritten acknowledgment of the Com- cent (15%) of gross ore receipts, or mission. The lessee or lessees within which when added to royalties already fifteen (15) days of receipt of the Com- created amount to more than fifteen mission's acknowledgment of relin- percent (15%) of gross ore receipts. quishment shall file the acknowledgment in the office of the county recorder for the county in which such leased tracts are located.

(1) Cancellation. Should the lessee or lessees fail to comply with any of the terms and conditions of the lease within thirty (30) days after receipt of written notice from the Commission specifying such failure and requesting compliance, or should there be any falsification or misrepresentation of a material fact, whether or not intentional, in the notice of lease application or in the application for uranium mining lease, the Commission shall have the right to terminate such lease in whole or in part and the Commission shall then be entitled and authorized to take immediate possession of the affected land and dispossess all persons occupying the same under the authority of the lease.

(m) Effective date of lease. A lease issued under this section will ordinarily be effective as of the date it is signed by the Commission.

(n) Assignment. Leases issued under this section may be assigned as to all or any of the leased tracts subject to approval by the Commission. To procure such approval, all instruments of transfer of the lease must be filed at the Commission's Grand Junction, Colorado, office and must contain all of the terms and conditions agreed upon by the parties thereto. The application for approval of assignment must be accom

303584-549

In calculating gross ore receipts for the purpose of this paragraph, development and haulage allowances payable pursuant to $60.5 (Commission's Domestic Uranium Program Circular 5, Revised) or any further revision thereof or equivalent allowances will be first excluded. With the approval of the Commission, less than all the tracts described in the lease may be assigned. In such an event the Commission may require the execution of a new lease by the assignor or assignee or both. The Commission will not grant approval if it determines that the terms and conditions of the proposed assignment do not embody terms and conditions equivalent to those of the original lease to the extent applicable. After the effective date of approval, the assignee or assignees will be responsible for the performance of all such obligations.

(0) Designation of representative. When leases are issued or assigned under this section to a group of two or more persons or legal entities, they shall designate one person to represent them for the receipt of communications or notices or to make reports or statements on their behalf, together with the address of the representative. This designation shall be binding on the lessees until the Commission has received notice in writing from the lessees of a new designee and his address.

(p) Initial production bonus. The provisions of § 60.6 (Domestic Uranium

Program Circular 6) shall be applicable ground and the "Notice of Lease Appli

to ores produced from the leased premises.

(q) Form of lease. Leases will be issued on forms prescribed by the Atomic Energy Commission.

(r) Recording of lease. The holder or holders of a lease or assignment under this section shall, unless otherwise authorized by the Commission, record the lease or assignment within fifteen (15) days of the date thereof in the office wherein the "Notice of Lease Application", required by paragraph (c) (3) of this section, is recorded.

cation" posted and recorded as required by paragraph (c) of this section, prior to the effective date of the withdrawal or segregation, and further provided there is compliance with the other provisions of this section.

(t) Multiple use of lands. Leases issued under this section will also provide that operations under them will be conducted in such manner as not to interfere with the lawful operations of any third party having a lease, permit, easement or any other right or interest in the premises.

(s) Withdrawn lands. Lands with- (u) Reservation of rights. The right drawn from mineral entry by the Secre- is reserved by the Commission to revise, tary of the Interior for the use of the modify or terminate the regulations Atomic Energy Commission or embraced in this section at any time without prejuwithin an Atomic Energy Commission dice to rights of leaseholders established application for such land withdrawal | under existing leases.

(1) "Commission" means the Atomic Energy Commission created by the Atomic Energy Act of 1946, or its duly authorized representative.

(2) "Lease Year" shall be the annual period commencing on the date of the lease or any anniversary thereof during the lease term.

are not available for leasing under this (v) Definitions as used in this section. section. However, tracts situated on lands not open to location of mining claims under the United States mining laws because of the existence of a lease, permit, application, or offer under the Mineral Leasing Act of 1920 as amended, or because such lands are known to be valuable for minerals leasable under that act, which lands are subsequently withdrawn by the Secretary of the Interior and reserved for the use of the Atomic Energy Commission, or included in an application for withdrawal filed by the Commission, will be eligible for this type of lease provided that such tracts have been identified and marked on the

(60 Stat. 755–775, 67 Stat. 240; 42 U. S. C. 1801-1819)

Dated at Washington, D. C., this 29th day of January 1954.

By order of the Commission.

K. D. NICHOLS,
General Manager.

APPENDIX 8

PROBABLE COURSE OF INDUSTRIAL DEVELOPMENT OF ECONOMIC NUCLEAR POWER

(Excerpt of Statement by AEC Before the Joint Committee on Atomic Energy at Hearings on Proposed Amendments to the Atomic Energy Act, June 2, 1954)

In considering the proposed legislation, certain essential factors must be clearly recognized, namely:

1. That nuclear power is not yet an economic reality in the competitive cost sense, and

2. That the big job of driving costs down to levels competitive with conventional electric energy can best be accomplished by joint effort of both industry and Government as a working team.

Now, in order to gauge the size of the cooperative effort and the additional legislative authority required to establish a new atomic power industry, we should look ahead-as judiciously as we can―over the next 10 to 20 years to visualize what the probable course of development will be and what economic benefits seem likely to come with competitive nuclear power. No one, of course, can say with any assurance now how long it will take and how much effort will actually be needed to convert the present technical feasibility of nuclear power into future economic reality. Nor can anyone foresee now the shape of industrial development and the extent of benefits that may come from economic nuclear power. These are strictly speculative subjects, about which there are certainly wide ranges of opinion. Yet, they are worth considering because the major changes in the basic legislation presuppose the desirability of accomplishing economic nuclear power soon, establishing a new source of electric energy, and doing this in the traditional framework of free, competitive enterprise.

It is proposed to state at length the results of our preliminary thinking and speculation on the probable pattern of industrial development and economic benefits. The results of our speculation are, of course, transient and replete with broad guesses, plausible presumptions, and personal judgments. No one, therefore, will take these comments as either predictions or considered judgments. They are neither. They are simply some working ideas presented to illustrate what may be in store, if nuclear power becomes economically worthwhile.

In summary fashion these are the key factors of national interest over the next 20 years or more in achieving and applying economic nuclear power: First, is the matter of time. We are only now in the development stage. We have not yet reached the phase of competitive, commercial application. This is some years ahead. As mentioned earlier, the 5-year reactor program submitted to the committee is aimed at making competitive nuclear power a reality. If the goal is accomplished, our feeling is that only a small number of full-scale privately owned and operated power reactors are likely to be on the line before 1965 in other words over 10 years from now. Faster introduction may be possible, but without extraordinary measures of Government assistance, which we are not recommending, this time scale seems reasonable on economic grounds. Second, is the Nation's future energy resource base. In the United States, the mounting demands for energy in all forms, the unpredictable long-term supply of fuels now in use (particularly oil and natural gas), and the limited number of