[Code of Federal Regulations]

[Title 43, Volume 2]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 43CFR3602.21]



[Page 705]

 

                    TITLE 43--PUBLIC LANDS: INTERIOR

 

    CHAPTER II--BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR

 

PART 3600_MINERAL MATERIALS DISPOSAL--Table of Contents

 

                  Subpart 3602_Mineral Materials Sales

 

Sec. 3602.21  What payment terms apply to my mineral materials sales 

contract?



    (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 Sec. 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 Sec. 3601.61, you will 

forfeit all moneys that you paid.