What kind of financial security does BLM require? (43 CFR 3602.14)

§ 3602.13

43 CFR Ch. II (10–1–07 Edition)

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

rfrederick on PROD1PC67 with CFR

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

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