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The regulations in this part establish procedures for the exploration, development, and disposal of mineral material resources on the public lands, and for the protection of the resources and the environment. The regulations apply to permits for free use and contracts for sale of mineral materials.
(a) BLM's authority to dispose of sand, gravel, and other mineral and vegetative materials that are not subject to mineral leasing or location under the mining laws is the Act of July 31, 1947, as amended (30 U.S.C. 601 et seq. ), commonly referred to as the Materials Act. This authority applies to sale and free use of these materials. BLM's authority to allow removal of limited quantities of petrified wood from public lands without charge is section 2 of the Act of September 28, 1962 (Pub. L. 87-713, 76 Stat. 652).
(b) Section 302 of the Federal Land Policy and Management Act of 1976 (FLPMA) (43 U.S.C. 1732) provides the general authority for BLM to manage the use, occupancy, and development of the public lands under the principles of multiple use and sustained yield in accordance with the land use plans that BLM develops under FLPMA.
(c) Section 304 of FLPMA (43 U.S.C. 1734) and the Independent Offices Appropriation Act of 1952 (31 U.S.C. 9701) authorize the U.S. Government to collect fees and to require reimbursement of its costs.
As used in this part the term:
Act means the Materials Act of July 31, 1947, as amended (30 U.S.C. 601, et seq. ).
BLM means the Bureau of Land Management.
Common use area means a generally broad geographic area from which BLM can make disposals of mineral materials to many persons, with only negligible surface disturbance. The use is dispersed throughout the area.
Community pit means a relatively small, defined area from which BLM can make disposals of mineral materials to many persons. The surface disturbance is usually extensive in the confined area.
Mineral materials means, but is not limited to, petrified wood and common varieties of sand, stone, gravel, pumice, pumicite, cinders, and clay.
Performance bond means a bond to ensure compliance with the terms of the contract and reclamation of the site as BLM requires.
Permittee means any Federal, State, or territorial agency, unit, or subdivision, including municipalities, or any non-profit organization, to which BLM issued a free use permit for the removal of mineral materials from the public lands.
Public lands means any lands and interest in lands owned by the United States and administered by the Secretary of the Interior through BLM without regard to how the United States acquired ownership, except lands held for the benefit of Indians, Aleuts, and Eskimos.
Purchaser means any person, including a business or government entity, buying or holding a contract to purchase mineral materials on the public lands.
It is BLM's policy:
(a) To make mineral materials available unless it is detrimental to the public interest to do so;
(b) To sell mineral material resources at not less than fair market value;
(c) To permit Federal, State, Territorial, and local government entities and non-profit organizations free use of these materials for qualified purposes;
(d) To protect public land resources and the environment and minimize damage to public health and safety during the exploration for and the removal of such minerals;
(e) To prevent unauthorized removal of mineral materials; and
(f) To require purchasers and permittees to account for all removals of mineral materials.
(a) All data and information concerning Federal and Indian minerals that you submit under this part are subject to part 2 of this title. Part 2 of this title includes the regulations of the Department of the Interior covering the public disclosure of data and information contained in Department of the Interior records. BLM may make available for inspection certain mineral information not protected from disclosure under part 2 of this title without a Freedom of Information Act (FOIA) (5 U.S.C. 552) request.
(b) When you submit data and information under this part that you believe to be exempt from public disclosure, and that you wish BLM to withhold from such disclosure, you must clearly mark each page that you believe includes confidential information. BLM will keep all data and information confidential to the extent allowed by § 2.13(c) of this title.
The Office of Management and Budget has approved the information collection requirements in part 3600 under 44 U.S.C. 3501 et seq. and assigned clearance number 1004-0103. BLM is collecting the information to allow us to determine if you are qualified to purchase or have free use of mineral materials on the public lands. You must respond to obtain a benefit.
(a) BLM may make mineral material sales and allow free use under permit from the same deposit within areas that we designate for this purpose. These kinds of disposals must be consistent with other provisions of this part. These designated community pit sites or common use areas may be any size.
(b) This subpart applies to both sales and free use from community pits and common use areas unless otherwise stated. Refer to subpart 3604 of this part for additional regulations applicable to the free use of mineral materials.
BLM will not dispose of mineral materials if we determine that the aggregate damage to public lands and resources would exceed the public benefits that BLM expects from the proposed disposition.
(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.
BLM's designation of a community pit site, when noted on the appropriate BLM records or posted on the ground, establishes a right to remove the materials superior to any subsequent claim or entry of the lands.
If you wish to apply for free use of mineral materials, you may file a letter of request or a BLM standard application form approved by the Office of Management and Budget.
(a) BLM will not dispose of mineral materials from wilderness areas or other areas where it is expressly prohibited by law. This includes national parks and monuments.
(b) BLM will not dispose of mineral materials from Indian lands and lands set aside or held for the use or benefit of Indians.
(c) BLM will not dispose of mineral materials from areas identified in land use plans as not appropriate for mineral materials disposal.
(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.
(a) BLM's designation of a common use area does not establish a right to remove the materials superior to any subsequent claim or entry of the lands.
(b) Once you have a permit or a sales contract to remove mineral materials from a common use area, your rights under that permit or contract are superior to any subsequent claim or entry on the lands.
Any Federal, State, or territorial agency, unit, or subdivision, including municipalities, or any non-profit organization, may apply for a free use permit to extract and use mineral materials.
(a) BLM may issue free use permits to a government entity without limitation as to the number of permits or as to the value of the mineral materials to be extracted or removed, provided that the government entity shows that it will not use these materials for commercial or industrial purposes.
(b) BLM may issue free use permits to a non-profit organization for not more than 5,000 cubic yards (or weight equivalent) in any period of 12 consecutive months, provided that the organization shows that it will not use these materials for commercial or industrial purposes.
If you wish to obtain mineral materials from lands withdrawn to aid a function of another Federal agency or of a State or local government agency, you may apply to BLM. BLM will dispose of the mineral materials only with the consent of that agency.
(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.
BLM will sell mineral materials from community pits or common use areas under materials sales contracts for not less than fair market value.
BLM will not issue a free use permit if we determine that you own or control an adequate supply of suitable mineral materials that:
(a) Are readily available, and
(b) You can mine in a manner that is economically and environmentally acceptable.
(a) BLM may dispose of mineral materials from unpatented mining claims if disposal does not endanger or materially interfere with prospecting, mining, or processing operations, or uses reasonably incident thereto.
(b) BLM will ask a mining claimant for a waiver before disposing of mineral materials from a claim. If the mining claimant refuses to sign a waiver, BLM will make sure that disposal of the mineral materials will not be detrimental to the public interest. We also will consult with the Solicitor's Office, if necessary, before proceeding with the disposal.
(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.
BLM generally will not require a mining or reclamation plan before you mine or remove mineral materials from a community pit or common use area. We may require such a plan if we find that circumstances warrant it. In all cases, you must comply with the terms of the contract or permit to protect health, safety, and the environment.
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.
(a) Unless otherwise provided, if you are a purchaser under a sales contract or a free use permittee, you have the right to:
(1) Extract, remove, process, and stockpile the material until the contract or permit terminates, regardless of any rights others acquire later under the provisions of the general land laws; and
(2) Use and occupy the described lands to the extent necessary for fulfillment of the contract or permit.
(b) Users of the lands covered by your materials sales contract or free use permit who acquire their rights later than the date BLM designated the tract for mineral materials disposal will be subject to your existing use authorization, as provided in § 3602.12. This applies to uses due to any later settlement, location, lease, sale, or other appropriation under the general land laws, including the mineral leasing and mining laws.
(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.
Generally, you do not need to perform reclamation after extracting mineral materials from community pits or common use areas. However, you must pay a reclamation fee as provided in § 3603.22.
(a) BLM will determine the appropriate length of your free use permit term.
(1) BLM will not grant free use permits to government entities for terms exceeding 10 years.
(2) BLM will not grant free use permits to non-profit organizations for terms exceeding one year.
(b) BLM may extend any free use permit term for a single additional period not to exceed one year.
Your sale contract or use permit is subject to the continuing right of the United States to issue leases, permits, and licenses for the use and occupancy of the lands, if such use would not endanger or materially interfere with the production or removal of materials under contract or permit.
(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.
(a) You must pay a reclamation fee based on the amount of mineral materials you extract from the community pit or common use area, unless you make an alternative arrangement under paragraph (b) of this section. The reclamation fee you pay is a proportionate share of the total estimated cost of reclamation, determined by using the ratio of the material that you extract under your permit or contract to the total volume of the material BLM estimates will be extracted from the site.
(b) BLM may, at our discretion, allow purchasers and permittees to perform interim or final reclamation, where needed, in lieu of paying reclamation charges. If BLM allows you to perform reclamation in lieu of paying a fee, we may also require you to post a bond under § 3602.14.
(a) You must not barter or sell mineral materials that you obtain under a free use permit.
(b) You must not remove mineral materials before BLM issues you a permit or after your permit expires.
(c) BLM may incorporate other conditions and restrictions into your free use permit.
(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.
You may assign or transfer your free use permit to entities qualified under § 3604.12. You must first obtain BLM's written approval.
(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.
(a) You may allow your agent to extract mineral materials under your free use permit.
(b) Your agent may charge you only for extraction services and must not—
(1) Charge you for the materials extracted, processed, or removed; or
(2) Take mineral materials from the permit area as payment for services rendered to you, or as a donation or gift.
When BLM approves your assignment, your assignee is entitled to all the rights and is subject to all the obligations under the contract.
BLM may require a bond or other security as a guarantee of your faithful compliance with the provisions of your permit and applicable regulations, including reclamation. The type of security must be one of those provided for in § 3602.14(c) of this part.
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.
BLM may cancel your permit if you fail, after adequate notice, to follow its terms and conditions.
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.
Permits that BLM issues under this subpart constitute a superior right to remove the materials in accordance with the permit terms and provisions, as against any claim to or entry of the lands made after the date BLM designated the tract for mineral materials disposal. See § 3602.12.
(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.
(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.
(a) BLM may authorize you in writing to sample and test mineral materials. The authorization letter expires after 90 days, but BLM may extend it for an additional 90 days if you show us that an extension is necessary. BLM may authorize these activities before issuing a sales contract or free use permit.
(b) You must submit your sampling and testing findings to BLM. All information you submit under this section is subject to part 2 of this title. That part sets forth the rules of the Department of the Interior relating to public availability of information contained in Departmental records. ( See § 3601.8.)
(c) A letter from BLM authorizing you to sample and test mineral materials does not give you a preference right to a sales contract or free use permit.
(d) BLM may impose bonding and reclamation requirements on sampling and testing that you conduct under an authorization letter.
In addition to the following sections, §§ 3602.31 through 3602.35, the provisions of §§ 3602.11 through 3602.29 also apply to noncompetitive sales.
(a) BLM may sell, at not less than fair market value, and without advertising or calling for bids, mineral materials not greater than 200,000 cubic yards (or weight equivalent) in any individual sale, when BLM determines it to be:
(1) In the public interest; and
(2) Impracticable to obtain competition.
(b) BLM will charge the purchaser a processing fee on a case-by-case basis as described in § 3000.11 of this chapter.
(c) BLM will not approve multiple noncompetitive sales that exceed a total of 300,000 cubic yards (or weight equivalent) made in any one State for the benefit of any one purchaser, whether an individual, partnership, corporation, or other entity, in any period of 12 consecutive months.
(d) The volume limitations in paragraphs (a) and (c) of this section do not apply to sales in the State of Alaska that BLM determines are needed for construction, operation, maintenance, or termination of the Trans-Alaska Pipeline System or the Alaska Natural Gas Transportation System.
(e) The volume limitations in paragraphs (a) and (b) of this section do not apply if:
(1) BLM determines that circumstances make it impossible to obtain competition; or
(2) There is insufficient time to invite competitive bids, because of an emergency situation affecting public property, health, or safety.
BLM may sell mineral materials not exceeding 400,000 cubic yards (or weight equivalent), at not less than fair market value, without advertising or calling for bids if:
(a) BLM determines the sale to be in the public interest; and
(b) The materials will be used in connection with an urgent public works improvement program on behalf of a Federal, State, or local governmental agency, and time does not permit advertising for a competitive sale.
(a) If you propose to use mineral materials in connection with developing a mineral lease issued by BLM, we may, without calling for competitive bids, sell you at fair market value a volume of mineral materials not exceeding a total of 200,000 cubic yards (or weight equivalent) in one State in any period of 12 consecutive months.
(b) If the materials remain within the boundaries of the lease, BLM will not charge for mineral materials that you must move in order to extract minerals under a Federal lease, whether or not you use them for lease development.
BLM will not issue a noncompetitive contract for the sale of mineral materials for a term exceeding 5 years, excluding any contract extension under § 3602.27 and any period that BLM may allow for removal of equipment and improvements under § 3601.52.
BLM may require you to submit mining and reclamation plans before we begin any environmental review or issue a contract or permit. You may combine these plans in one document.
MINERAL MATERIALS DISPOSAL (U.S.C.). Retrieved via LawPlayer, https://lawplayer.com/us/act/cfr-title-43-part-3600
United States government works (U.S. Code, Code of Federal Regulations) are in the public domain under 17 U.S.C. § 105.
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