§3602.14. What kind of financial security does BLM require?
43 C.F.R. § 3602.14
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.
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.
A performance bond may be a—
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;
Certificate of deposit that—
Is issued by a financial institution whose deposits are Federally insured;
Does not exceed the maximum insurable amount set by the Federal Deposit Insurance Corporation;
Is made payable or assigned to the United States;
Grants BLM authority to demand immediate payment if you fail to meet the terms and conditions of the contract;
States that no party may redeem it before BLM approves its redemption; and
Otherwise conforms to BLM's instructions as found in the contract terms;
Cash bond, with a power of attorney to BLM to convert it upon your failure to meet the terms and conditions of the contract;
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
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.