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Assignments of Lease

Major milestone BLM-initiated action Bidder/leasee-initiated action Due diligence Assignments Bonding Applicable fees Finalize plan of development Conduct NEPA evaluation (if not conducted prior to leasing) Cost recovery Rental payment Issue ROW lease Reject bids (if applicable) Bidding Variable offsets Notice of competitive offer Call for nominations(if applicable) Select and prepare parcels Initiate Competitive Process BLM ConductsCompetitive Offer BLM Selects Successful Bidder Terms and Conditions for Leases BLM Issues Notice to Proceed Procedures for Issuing Solar Energy ROW Leases Competitively
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With the BLM's approval, leaseholders may assign, in whole or in part, any right or interest in a lease. Assignment actions that may require BLM approval include, but are not limited to:

  • The transfer by the leaseholder of any right or interest in the lease to a third party (assignee); and
  • Changes in ownership or other related change in control transactions involving the leaseholder and another business entity, including corporate mergers or acquisitions, but not transactions within the same corporate family.

The BLM may require a grant or lease holder to file new or revised information in some circumstances that do not constitute an assignment. Circumstances that would not constitute an assignment but may necessitate this filing include, but are not limited to:

  • Transactions within the same corporate family;
  • Changes in the holder's name only (see paragraph (h) of this section); and
  • Changes in the holder's articles of incorporation.

In order to assign a lease, the proposed assignee must file an assignment application and follow the same procedures and standards as for a new lease, including paying application and processing fees, and the lease must be in compliance with the terms and conditions of the original lease (as described at 43 CFR 2805.12). The preliminary application review meetings and public meeting are not required for an assignment. The BLM will not approve any assignment until the leaseholder makes any outstanding payments that are due.

The assignment application must also include documentation that the leaseholder agrees to the assignment and a signed statement that the proposed assignee agrees to comply with and be bound by the terms and conditions of the lease that is being assigned and all applicable laws and regulations. Assignment are not recognized until the BLM approves in writing.

The BLM may decrease rents if the new holder qualifies for an exemption or waiver or reduction (as described at 43 CFR 2806.14 and 2806.15) and the previous holder did not. Similarly, the BLM may increase rents if the previous holder qualified for an exemption or waiver or reduction and the new holder does not.

The processing time and conditions described at 43 CFR 2804.25(d) apply to assignment applications.

Instructions for completing a change in name only are provided at 43 CFR 2807.21.