[Federal Register Volume 61, Number 150 (Friday, August 2, 1996)]
[Proposed Rules]
[Pages 40373-40374]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18945]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management

43 CFR Parts 3600, 3610, and 3620

[WO-420-1050-00-24 1A]
RIN 1004-AC68


Mineral Materials Disposal

AGENCY: Bureau of Land Management, Interior.

ACTION: Proposed rule.

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SUMMARY: The Bureau of Land Management (BLM) proposes to amend the 
mineral materials sales regulations by accepting qualified certificates 
of deposits as surety bonds, and by changing bonding requirements for 
sales of $2,000 or more. For such sales, the current rule sets the bond 
amount at $500 or 20 per cent of the contracted price, whichever is 
greater. The new rule will be more flexible. The bond will be set at 5 
percent of the contract value plus an amount large enough to meet the 
anticipated reclamation work. The rule still requires $500 as the 
minimum amount for the bond. The rule makes the bond amount more 
realistic and ensures that the amount of bond is adequate to accomplish 
the projected reclamation work. Other changes simplify certain 
paragraphs by amending or removing confusing language.

DATES: Comments on the proposed rule must be received by September 3, 
1996 to be assured of consideration. Comments received or postmarked 
after this date may not be considered in the preparation of the final 
rule.

ADDRESSES: Comments should be sent to: Director (420), Bureau of Land 
Management, Room 401 LS, 1849 C Street NW., Washington, DC 20240, or 
the Internet address: [email protected] [For Internet, 
please include ``ATTN: AC68'', and your name and return address.] You 
may also hand deliver comments to the Bureau of Land Management 
Administrative Record, Room 401, 1620 L Street NW., Washington, DC.
    Comments will be available for public review at the L Street 
address during regular business hours (7:45 a.m. to 4:15 p.m.), Monday 
through Friday.

FOR FURTHER INFORMATION CONTACT: Dr. Durga N. Rimal, Resource Use and 
Authorization Team, at (202) 452-0350.

SUPPLEMENTARY INFORMATION: The proposed rule would amend 43 CFR Group 
3600, subpart 3602, part 3610, and Part 3620 in order to simplify 
certain paragraphs by amending or removing confusing language. Changes 
proposed on bonding (Sec. 3610.1-5) will reduce unnecessary financial 
burden to some operators, while assuring that the amount of bond 
required is not less than that projected for the reclamation work. 
Certificates of deposit issued by Federally insured financial 
institutions would be acceptable as bonds. Such certificates of deposit 
would be held by the BLM. Accrued interest would be returned to the 
purchaser.
    The principal author of this proposed rule is Dr. Durga N. Rimal of 
the Resource Use and Authorization Team, assisted by the Regulatory 
Management Team, BLM.
    BLM has determined that this proposed rule does not constitute a 
major Federal action significantly affecting the quality of the human 
environment, and that no detailed statement pursuant to section 
102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 
4332(2)(C)) is required. The BLM has determined that this proposed rule 
is categorically excluded from further environmental review pursuant to 
516 Departmental Manual (DM), Chapter 2, Appendix 1, Item 1.10, and 
that the proposal would not significantly affect the ten criteria for 
exceptions listed in 516 DM 2, Appendix 2. Pursuant to the Council of 
Environmental Quality regulations (40 CFR 1508.4) and environmental 
policies and procedures of the Department of the Interior, 
``categorical exclusions'' means a category of actions which do not 
individually or cumulatively have a significant effect on the human 
environment and which have been found to have no such effect in 
procedures adopted by a Federal agency and for which neither an 
environmental assessment nor an environmental impact statement is 
required.
    The proposed rule would have little effect on costs or prices for 
consumers, nor would there be a need for increasing Federal, State, or 
local agency budget or personnel requirements. The proposed rule will 
not have a gross annual effect on the economy of more than $100 
million, nor will it cause major increases in costs or prices for any 
private or government section of the economy.
    The Department has determined under the Regulatory Flexibility Act 
(5 U.S.C. 601 et seq.) that this rule will not have a significant 
economic impact on a substantial number of small entities. The BLM 
issues or manages an estimated 2,500 mineral materials sales contracts 
per year, valued at $4.4 million. The percentage of small entities 
involved in these contracts is unknown. Small entities such as 
subcontractors and local construction companies as well as larger 
companies buy mineral materials. The proposal favors no demographic 
group, imposes no direct or indirect costs on small entities, and does 
not change the application process and requirements of contract 
issuance, which do not favor or disfavor small entities.
    The Department certifies that this proposed rule does not represent 
a governmental action capable of interference with constitutionally 
protected property rights. The rule will result in no taking of private 
property. As required by Executive Order 12630, the Department of the 
Interior has determined that the rule will not cause a taking of 
private property.
    BLM has submitted the information collection requirement contained 
in this rule to the Office of Management and Budget for approval as 
required by 44 U.S.C. 3501 et seq. The collection of this information 
would not be required until it has been approved by the Office of 
Management and Budget.

List of Subjects for 43 CFR Parts 3600, 3610, 3620

    Government contracts, Public lands-mineral resources, Appraisal, 
Reporting and recordkeeping requirements, Surety bonds.

    Under the authorities of the Materials Act of July 31, 1947, as 
amended (30 U.S.C. 601, 602), Parts 3600, 3610, and 3620, Group 3600, 
subchapter C, chapter II, subtitle B, title 43 of the Code of Federal 
Regulations is proposed to be amended as follows:

[[Page 40374]]

PART 3600--MINERAL MATERIALS DISPOSAL; GENERAL

    1. The authority citation for 43 CFR part 3600 continues to read as 
follows:

    Authority: 30 U.S.C. 601, 602.

Subpart 3602--Disposal of Mineral Materials: General

    2. Section 3602.1-3 is revised to read as follows:


Sec. 3602.1-3   Approval and modification of mining and reclamation 
plans.

    (a) After reviewing the mining and reclamation plans, the BLM will 
promptly notify the applicant of any deficiencies in the plans and will 
recommend the changes necessary to prevent unnecessary or undue 
degradation of the lands, and hazards to public health and safety. 
Mining and reclamation plans as approved, will be attached to, and made 
a part of the contract or permit.
    (b) The permittee's operation must not deviate from the plan 
approved by the BLM.
    (c) The BLM and the permittee may agree to modify an approved 
mining or reclamation plan to adjust to changed conditions, or to 
correct any oversight that could result in unnecessary or undue 
degradation. Any change must be consistent with the requirements of 
Sec. 3601.1-3.
    (d) When a permittee requests to change an approved mining or 
reclamation plan, the BLM will review the proposed modification and 
within 30 days will notify the permittee of its approval, needed 
changes, or denial.

PART 3610--SALES

    3. The authority citation for 43 CFR part 3610 is revised to read 
as follows:

    Authority: 30 U.S.C. 601, 602.

Subpart 3610--Mineral Material Sales

    4. Section 3610.1-2 is amended by revising paragraph (b) to read as 
follows:


Sec. 3610.1-2   Appraisal, reappraisal and measurements.

 * * * * *
    (b) Two years after the contract or reappraisals the BLM may 
reappraise the value of mineral materials disposed of and adjust the 
contract price accordingly.
 * * * * *
    5. Section 3610.1-5 is amended by revising the heading and 
paragraph (a), amending paragraphs (b) by removing the phrase 
``reclamation or'' and (c) introductory text by removing the phrase 
``and reclamation'', revising paragraphs (c)(2) and (c)(3), and adding 
new paragraph (c)(4), to read as follows:
 * * * * *


Sec. 3610.1-5  Performance bond.

    (a) The BLM will require, for contracts of $2,000 or more, a 
performance bond of:
    (1) at least 5 percent of total contract value, plus; and
    (2) an amount large enough to meet the reclamation standards 
provided for in the contract or permit, but at least $500. Where 
contract sales or permits are made from a community pit and a 
reclamation fee is paid by the permittee, BLM will not require this sum 
for reclamation for the bond amount.
* * * * *
    (c) * * *
    (2) Certificate of deposit which:
    (i) Is issued by a financial institution whose deposits are 
Federally insured;
    (ii) Does not exceed the maximum insurable amount set by Federal 
Deposit Insurance Corporation;
    (iii) Is made payable or assigned to the United States;
    (iv) Grants the BLM authority to demand immediate payment for 
failure to meet the terms and conditions of the contract or permit;
    (v) Indicates that the BLM's approval is required before any party 
can redeem it; and
    (vi) Otherwise conforms to BLM's instructions as found in the 
contract terms.
    (3) Cash bond, with a power of attorney to the BLM to convert it 
upon the permittee's failure to meet the terms and conditions of the 
contract or permit; or
    (4) 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 the BLM to sell it upon the permittee's failure to meet the 
terms and conditions of the contract or permit.
* * * * *


Sec. 3610.3-2  [Amended]

    6. In Sec. 3610.3-2 paragraph (a) (7) is amended by removing the 
term ``require'' and adding in its place ``required''.

PART 3620-- FREE USE

    7. The authority citation for 43 CFR part 3620 is revised to read 
as follows:

    Authority: 30 U.S.C. 601, 602.

    8. Sec. 3621.1-6 is revised to read as follows:
* * * * *


Sec. 3621.1-6  Performance bond.

    The BLM may require a bond to guarantee faithful performance of the 
provisions of the permit and applicable regulations.

    Dated: July 8, 1996.
Sylvia V. Baca,
Deput Assistant Secretary for Land and Minerals Management.
[FR Doc. 96-18945 Filed 8-1-96; 8:45 am]
BILLING CODE 4310-84-P