Assignments

With the BLM's approval, grantees or leaseholders may assign, in whole or in part, any right or interest in a grant or 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 grant or 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 grant or lease, the proposed assignee must file an assignment application and follow the same procedures and standards as for a new grant or lease, including paying application and processing fees, and the grant must be in compliance with the terms and conditions of the 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 grant or lease that is being assigned and all applicable laws and regulations.

Assignment are not recognized until the BLM approves in writing. The BLM will approve assignments if doing so is in the public interest. Except for leases issued under a competitive process, the BLM may modify the grant or lease or add bonding and other terms, conditions, or requirements to the grant or lease when approving the assignment (unless a modification to a lease issued under subpart 2809 of this part is required due to changes in legislation, regulation, or as otherwise necessary to protect public health or safety or the environment [43 CFR 2805.15(e)]).

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.

In general pending right-of-way applications do not create any property rights or other interest and may not be assigned from one entity to another, except that an entity with a pending application may continue to pursue that application even if that entity becomes a wholly owned subsidiary of a new third party.

A change in name only is not an Assignment. A change in name is when the name change is not the result of an underlying change in control of the right-of-way grant. Instructions for completing a change in name only are provided at 43 CFR 2807.21(h).