43 C.F.R. §§ 3602.11–3602.29

§3602.11. How do I request a sale of mineral materials?

43 C.F.R. § 3602.11

(a)

You may submit a written request for sale of mineral materials to the BLM office with jurisdiction over the site containing the materials. No particular form is required for this request.

(b)

BLM also may initiate a sale without a request under paragraph (a) of this section.

(c)

You must pay a processing fee as provided in §§ 3602.31(b) and 3602.44(f). If the request is for mineral materials that are from a community pit or common use area this requirement does not apply.

Notes, amendments, and revision history

Amendments

[66 FR 58901, Nov. 23, 2001, as amended at 70 FR 58878, Oct. 7, 2005; 72 FR 50888, Sept. 5, 2007]

Authority

Authority: 30 U.S.C. 601 et seq.; 43 U.S.C. 1201, 1701 et seq.; Sec. 2, Act of September 28, 1962 (Pub. L. 87-713, 76 Stat. 652).

Source

Source: 66 FR 58901, Nov. 23, 2001, unless otherwise noted.

Amendments

[66 FR 58901, Nov. 23, 2001, as amended at 70 FR 58878, Oct. 7, 2005; 72 FR 50888, Sept. 5, 2007]

§3602.12. How does the mineral materials sales process affect other users of the same public lands?

43 C.F.R. § 3602.12

(a)

When BLM designates tracts for competitive or noncompetitive sale of mineral materials, and notes the designation in the public land records, it creates a right to remove the materials superior to any subsequent claim, entry, or other conflicting use of the land, including subsequent mining claim locations.

(b)

The superior right under paragraph (a) of this section is part of all contracts and permits BLM authorizes within 2 years after the date we designate the tract. BLM may extend this 2-year period for one additional year for good cause. The right continues for the entire term of the contract or permit and any renewal term. The superior right under paragraph (a) of this section also applies to any subsequent contracts or permits that BLM authorizes within 2 years after the previous contract or permit expires or terminates.

(c)

This right does not prevent other uses or segregate the land from the operation of the public land laws, including the mining and mineral leasing laws. However, such subsequent uses must not interfere with the extraction of mineral materials.

Notes, amendments, and revision history

Amendments

[66 FR 58901, Nov. 23, 2001; 67 FR 68778, Nov. 13, 2002]

Authority

Authority: 30 U.S.C. 601 et seq.; 43 U.S.C. 1201, 1701 et seq.; Sec. 2, Act of September 28, 1962 (Pub. L. 87-713, 76 Stat. 652).

Source

Source: 66 FR 58901, Nov. 23, 2001, unless otherwise noted.

Amendments

[66 FR 58901, Nov. 23, 2001; 67 FR 68778, Nov. 13, 2002]

§3602.13. How does BLM measure and establish the price of mineral materials?

43 C.F.R. § 3602.13

(a)

BLM will not sell mineral materials at less than fair market value. BLM determines fair market value by appraisal.

(b)

BLM may periodically reappraise the value of mineral materials not yet removed, and adjust your contract price accordingly. BLM will not adjust the price during the first 2 years of the contract. BLM also will not adjust the contract price during the 2-year period following any adjustment. However, BLM may adjust the price at the beginning of any contract renewal period.

(c)

BLM measures mineral materials by in-place volume or weight equivalent. When BLM requires you to measure materials, we may either designate the method you must use or allow you to choose either method. We will verify your results.

Notes, amendments, and revision history

Authority

Authority: 30 U.S.C. 601 et seq.; 43 U.S.C. 1201, 1701 et seq.; Sec. 2, Act of September 28, 1962 (Pub. L. 87-713, 76 Stat. 652).

Source

Source: 66 FR 58901, Nov. 23, 2001, unless otherwise noted.

§3602.14. What kind of financial security does BLM require?

43 C.F.R. § 3602.14

(a)

For contracts of $2,000 or more, BLM will require a performance bond of an amount sufficient to meet the reclamation standards provided for in the contract, but at least $500. If you have a sales contract from a community pit or common use area and you pay a reclamation fee, BLM will not require you to post a performance bond.

(b)

BLM may require a performance bond for contracts of less than $2,000. We will not require a bond amount greater than 20 percent of the total contract value.

(c)

A performance bond may be a—

(1)

Bond of a corporate surety shown on the approved list (Circular 570) issued by the U.S. Treasury Department, including surety bonds arranged or paid for by third parties;

(2)

Certificate of deposit that—

(i)

Is issued by a financial institution whose deposits are Federally insured;

(ii)

Does not exceed the maximum insurable amount set by the Federal Deposit Insurance Corporation;

(iii)

Is made payable or assigned to the United States;

(iv)

Grants BLM authority to demand immediate payment if you fail to meet the terms and conditions of the contract;

(v)

States that no party may redeem it before BLM approves its redemption; and

(vi)

Otherwise conforms to BLM's instructions as found in the contract terms;

(3)

Cash bond, with a power of attorney to BLM to convert it upon your failure to meet the terms and conditions of the contract;

(4)

Irrevocable letter of credit from a bank or financial institution organized or authorized to transact business in the United States, with a power of attorney to BLM to redeem it upon your failure to meet the terms and conditions of the contract; or

(5)

Negotiable Treasury bond of the United States of a par value equal to the amount of the required bond, together with a power of attorney to BLM to sell it upon your failure to meet the terms and conditions of the contract.

Notes, amendments, and revision history

Authority

Authority: 30 U.S.C. 601 et seq.; 43 U.S.C. 1201, 1701 et seq.; Sec. 2, Act of September 28, 1962 (Pub. L. 87-713, 76 Stat. 652).

Source

Source: 66 FR 58901, Nov. 23, 2001, unless otherwise noted.

§3602.15. What will happen to my bond if I transferred all of my interests or operations to another bonded party?

43 C.F.R. § 3602.15

BLM will cancel your bond obligations following approval of the transfer of your interests or operations if the transferee provides a bond that assumes all of your existing liabilities as required in § 3602.24. However, under § 3602.26, you remain liable for any reclamation or other obligation that accrued during the time you held your interest.

Notes, amendments, and revision history

Authority

Authority: 30 U.S.C. 601 et seq.; 43 U.S.C. 1201, 1701 et seq.; Sec. 2, Act of September 28, 1962 (Pub. L. 87-713, 76 Stat. 652).

Source

Source: 66 FR 58901, Nov. 23, 2001, unless otherwise noted.

§3602.20. Administration of mineral materials sales.

43 C.F.R. § 3602.20

Notes, amendments, and revision history

Authority

Authority: 30 U.S.C. 601 et seq.; 43 U.S.C. 1201, 1701 et seq.; Sec. 2, Act of September 28, 1962 (Pub. L. 87-713, 76 Stat. 652).

Source

Source: 66 FR 58901, Nov. 23, 2001, unless otherwise noted.

§3602.21. What payment terms apply to my mineral materials sales contract?

43 C.F.R. § 3602.21

(a)

Under a sales contract for mineral materials—

(1)

For sales of $2,000 or less, you must pay the full amount before BLM will sign the contract.

(2)

When the sale exceeds $2,000, you may make installment payments. The first installment payment must be the greater of $500 or 5 percent of the total purchase price. If you elect to make installment payments—

(i)

For non-competitive sales, you must pay the first installment at or before the time BLM awards the contract;

(ii)

For competitive sales, you must pay the first installment as a deposit at the time you submit the bid; and

(iii)

For noncompetitive and competitive sales—

(A)

Once you have removed materials, you must make each subsequent installment payment monthly in an amount equal to the value of the minerals you remove each month. You must make the payment by the 15th day following the end of the month for which you are reporting. However, you must pay the balance of the purchase price not later than 60 days before the expiration date of the contract. BLM will credit your first installment payment to you at the time of your final payment unless we cancel your contract under § 3601.61; or

(B)

You may make advance payment for your annual production based on the previous year's production or your projection of the current year's production, so long as you resume paying on a monthly basis as required in paragraph (a)(2)(iii)(A) of this section if your annual payment does not cover your actual production for the current year. You must resume monthly payments no later than the 15th day following the end of the month in which production exceeds the projected production on which payments were based.

(3)

You must annually (as provided in your contract) produce an amount sufficient to pay to the United States a sum of money equal to the first installment determined under paragraph (a)(2) of this section. In lieu of such production, you may make an annual payment in the amount of the first installment. If in any contract year you make production payments that are less than the first installment, you must pay the difference between the production payments and the amount of the first installment. These annual payments are due on or before each anniversary date of the contract.

(b)

If you fail to comply with the terms and conditions of the contract and BLM cancels your contract under § 3601.61, you will forfeit all moneys that you paid.

Notes, amendments, and revision history

Authority

Authority: 30 U.S.C. 601 et seq.; 43 U.S.C. 1201, 1701 et seq.; Sec. 2, Act of September 28, 1962 (Pub. L. 87-713, 76 Stat. 652).

Source

Source: 66 FR 58901, Nov. 23, 2001, unless otherwise noted.

§3602.22. When will a contract terminate?

43 C.F.R. § 3602.22

(a)

Your contract terminates when—

(1)

Its term expires;

(2)

You have completed production under your contract or permit and any renewal, and completed required reclamation; or

(3)

BLM cancels your contract under § 3601.60 et seq. of this part.

(b)

You and BLM may, by agreement, terminate the sales contract at any time.

Notes, amendments, and revision history

Authority

Authority: 30 U.S.C. 601 et seq.; 43 U.S.C. 1201, 1701 et seq.; Sec. 2, Act of September 28, 1962 (Pub. L. 87-713, 76 Stat. 652).

Source

Source: 66 FR 58901, Nov. 23, 2001, unless otherwise noted.

§3602.23. When will BLM make refunds or allow credits?

43 C.F.R. § 3602.23

(a)

BLM may make refunds or allow credits if—

(1)

When your contract expires, your total payments exceed the total value of mineral materials included in the contract;

(2)

BLM determines that insufficient mineral materials existed in the sales area to fulfill the terms of the contract; or

(3)

Materials you paid for are unavailable as a result of terminating your contract by mutual agreement under § 3602.22(b).

(b)

If your refund or credit is a result of terminating your contract by mutual agreement under § 3602.22(b), BLM will reduce the amount of the refund or credit by the amount of the administrative cost of processing the disposal action. If these administrative costs exceed your total payments, BLM will not make a refund or allow a credit.

(c)

BLM may credit to future production on the same contract, but not refund, payments that you make in lieu of production under § 3602.21(a)(3). However, if, upon expiration of the contract, the total value of payments you have made exceeds the total value of mineral materials included in your contract, BLM will refund the difference in accordance with paragraphs (a) and (b) of this section.

Notes, amendments, and revision history

Authority

Authority: 30 U.S.C. 601 et seq.; 43 U.S.C. 1201, 1701 et seq.; Sec. 2, Act of September 28, 1962 (Pub. L. 87-713, 76 Stat. 652).

Source

Source: 66 FR 58901, Nov. 23, 2001, unless otherwise noted.

§3602.24. When may I assign my materials sales contract?

43 C.F.R. § 3602.24

(a)

You may not assign the contract or any interest therein unless BLM approves the transfer in writing.

(b)

BLM will not approve your proposed assignment of contract, unless—

(1)

Your assignee—

(i)

Furnishes a financial guarantee as required by § 3602.14; or

(ii)

Obtains a written commitment from the previous surety that it will be bound by the assignment when BLM approves it; and

(2)

The assignment contains all the terms and conditions in your contract.

Notes, amendments, and revision history

Authority

Authority: 30 U.S.C. 601 et seq.; 43 U.S.C. 1201, 1701 et seq.; Sec. 2, Act of September 28, 1962 (Pub. L. 87-713, 76 Stat. 652).

Source

Source: 66 FR 58901, Nov. 23, 2001, unless otherwise noted.

§3602.25. What rights and responsibilities does my assignee assume?

43 C.F.R. § 3602.25

When BLM approves your assignment, your assignee is entitled to all the rights and is subject to all the obligations under the contract.

Notes, amendments, and revision history

Authority

Authority: 30 U.S.C. 601 et seq.; 43 U.S.C. 1201, 1701 et seq.; Sec. 2, Act of September 28, 1962 (Pub. L. 87-713, 76 Stat. 652).

Source

Source: 66 FR 58901, Nov. 23, 2001, unless otherwise noted.

§3602.26. If I assign my contract, when do my obligations under the contract end?

43 C.F.R. § 3602.26

When BLM approves your assignment, you are released from any further liability under the contract for actions the assignee may take after the effective date of the assignment. You continue to be responsible for obligations that accrued before the approval date, whether or not you knew of them at the time of the transfer.

Notes, amendments, and revision history

Authority

Authority: 30 U.S.C. 601 et seq.; 43 U.S.C. 1201, 1701 et seq.; Sec. 2, Act of September 28, 1962 (Pub. L. 87-713, 76 Stat. 652).

Source

Source: 66 FR 58901, Nov. 23, 2001, unless otherwise noted.

§3602.27. When will BLM extend the term of a contract?

43 C.F.R. § 3602.27

BLM may grant a one-time extension of the contract not to exceed 1 year, if:

(a)

(1)

For contracts with terms over 90 days, BLM receives your written request between 30 and 90 days before the contract expires; or

(2)

For contracts with terms of 90 days or less, BLM receives your written request not later than 15 days before the contract expires; and

(b)

You show in writing that the delay in removing the mineral materials was due to causes beyond your control and was not due to your fault or negligence.

Notes, amendments, and revision history

Authority

Authority: 30 U.S.C. 601 et seq.; 43 U.S.C. 1201, 1701 et seq.; Sec. 2, Act of September 28, 1962 (Pub. L. 87-713, 76 Stat. 652).

Source

Source: 66 FR 58901, Nov. 23, 2001, unless otherwise noted.

§3602.28. What records must I maintain and how long must I keep them?

43 C.F.R. § 3602.28

(a)

BLM may require you to maintain and preserve for 6 years records, maps, and surveys relating to production verification and valuation. These include, but are not limited to, detailed records of quantity, types, and value of commodities you moved, processed, sold, delivered, or used.

(b)

You must make such records available to BLM to allow us to determine whether you have complied with statutes, regulations, and the terms of the contract.

Notes, amendments, and revision history

Authority

Authority: 30 U.S.C. 601 et seq.; 43 U.S.C. 1201, 1701 et seq.; Sec. 2, Act of September 28, 1962 (Pub. L. 87-713, 76 Stat. 652).

Source

Source: 66 FR 58901, Nov. 23, 2001, unless otherwise noted.

§3602.29. How will BLM verify my production?

43 C.F.R. § 3602.29

(a)

You must submit at least one report per contract year of the amount of mineral materials you have mined or removed under your sales contract so BLM can verify that you have made the required payments. BLM will specify the timing of the reports in your contract or permit.

(b)

BLM may require more frequent reporting if we find it necessary.

(c)

BLM may require you to conduct pre-operation, annual, and post-operation volumetric surveys of the mine site.

Notes, amendments, and revision history

Authority

Authority: 30 U.S.C. 601 et seq.; 43 U.S.C. 1201, 1701 et seq.; Sec. 2, Act of September 28, 1962 (Pub. L. 87-713, 76 Stat. 652).

Source

Source: 66 FR 58901, Nov. 23, 2001, unless otherwise noted.