[Code of Federal Regulations]
[Title 36, Volume 2]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 36CFR228.65]

[Page 163-164]
 
              TITLE 36--PARKS, FORESTS, AND PUBLIC PROPERTY
 
          CHAPTER II--FOREST SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 228_MINERALS--Table of Contents
 
                 Subpart C_Disposal of Mineral Materials
 
Sec. 228.65  Payment for sales.

    (a) Conditions. Mineral materials may not be removed from the sale 
area until all conditions of payment in the contract have been met.
    (b) Advance payment. (1) For negotiated and competitive sales the 
full amount may be paid before removal is begun under the contract or by 
installment at the discretion of the authorized officer. Installment 
payments must be based on the estimated removal rate specified in the 
operating plan and must be, as a minimum, the value of 1 month's 
removal. The first installment must be paid before removal operations 
are begun; remaining installments must be paid in advance of removal of 
the remaining materials as billed by the authorized officer. The total 
amount of the purchase price must be paid at least 60 days before the 
expiration date of the contract.
    (2) All advance payment contracts must provide for reappraisal of 
the mineral material at the time of contract renewal or extension.
    (3) Minimum annual production must be sufficient to return a payment 
to the United States equal to the first installment. In lieu of minimum 
production, there must be an annual payment in the amount of the first 
installment which will not be credited to future years' production. 
Payments for or in lieu of minimum annual production must be received by 
the authorized officer on or before the anniversary of the effective 
date of the contract.
    (4) If the purchaser fails to make payments when due, the contract 
will be considered breached; the authorized officer will terminate the 
contract, and all previous payments will be forfeited without prejudice 
to any other rights and remedies of the United States. Forfeiture will 
not result when the purchaser is unable to meet the minimum annual 
production (volume or value) for reasons beyond the purchaser's control.
    (5) In order to determine payment amount, the purchaser must make a 
report of operations. The report must include the amount of mineral 
material removed, which must be verified by the authorized officer.
    (c) Deferred payments. The authorized officer may approve deferred 
payments for sales.
    (1) The purchaser may make payments monthly or quarterly which must 
be based on the in-place value

[[Page 164]]

(volume or weight equivalent) of material removed during the contract 
period. The units of measurement must correspond to the units used in 
the appraisal. The purchaser must make all payments before contract 
renewal.
    (2) The purchaser must deliver a bond which conforms to the 
provisions of Sec. 228.51(a)(2) to the authorized officer before 
operations are begun under the contract.