What payment terms apply to my mineral materials sales contract? (43 CFR 3602.21)

Bureau of Land Management, Interior

§ 3602.23

ADMINISTRATION OF SALES

rfrederick on PROD1PC67 with CFR

§ 3602.20 Administration
materials sales.

of

mineral

§ 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 § 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.
§ 3602.22 When will a contract terminate?
(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.
§ 3602.23 When will BLM make refunds
or allow credits?
(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.

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