[Code of Federal Regulations]

[Title 43, Volume 2]

[Revised as of October 1, 2006]

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

[CITE: 43CFR3600]



[Page 709-710]

 

                    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.  3602.14  What kind of financial security does BLM require?



    (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;



[[Page 710]]



    (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.