2850 Page 1 of 10 FOREST SERVICE MANUAL DENVER, CO FSM 2800 – MINERALS AND GEOLOGY CHAPTER 2850 – MINERALS MATERIALS Supplement No.: 2800-2000-1 Effective Date: December 14, 2000 Duration: Effective until superseded or removed Approved: TOM L. THOMPSON Acting Regional Forester Date Approved: 11/30/2000 Posting Instructions: Supplements are numbered consecutively by Title and calendar year. Post by document name. Remove entire document and replace with this supplement. Retain this transmittal as the first page of this document. New Document(s): 2850 10 Pages Superseded Document(s): 2850 (Supplement 2800-92-4) 2 Pages (Last supplement was 2800-97-1 to 2817.2-2819.3.) Digest: 2850.11 2850.43 Establishes criteria for mineral material disposals from acquired lands. Updates Authorized Officers' responsibilities and establishes minimum administrative fees for mineral material disposals. R2 SUPPLEMENT 2800-2000-1 EFFECTIVE DATE: 12/14/2000 DURATION: Effective until superseded or removed 2850 Page 2 of 10 FSM 2800 – MINERALS AND GEOLOGY CHAPTER 2850 – MINERAL MATERIALS 2850.11 - Acquired Lands The Bankhead-Jones Farm Tenant Act of July 22, 1937, provides for disposal of mineral materials from those lands that meet the criteria listed in Subpart C of 36 CFR 228.41(b)(4). Materials from these lands may be disposed of only to public authorities and agencies for public purposes. 2850.4 – Responsibility 2850.42 - Regional Foresters The Regional Forester has the responsibility to make annual reports to the Washington Office and monitor Forest activity to ensure program objectives are met. Regional Forester is also responsible to: 1. Develop and implement Regional strategies for managing mineral materials. 2. Conduct and/or approve mineral rights appraisals (that is, mineral values). 3. Verify valuable discoveries made under Preference Rights permits. 4. Review material contracts having a value in excess of $25,000 to ensure contract stipulations and bonding requirements are current and within the authority of the authorized officer. 5. Classify common variety minerals in accordance with the authority under Public Law 167 of July 23, 1955. 2850.43 - Authorized Officers Forest Supervisors are delegated the authority to carry out the responsibilities set forth in 36 CFR 228, Subpart C as "authorized officer" for disposals up to 100,000 cubic yards (or weight equivalent) of mineral material. Forest Supervisors may authorize District Rangers to conduct sales and issue "free use" permits for up to 25,000 cubic yards (or weight equivalent) of mineral material. District Rangers may authorize Forest Officers to conduct sales up to 500 cubic yards (or weight equivalent) and issue "free use" permits for mineral materials. R2 SUPPLEMENT 2800-2000-1 EFFECTIVE DATE: 12/14/2000 DURATION: Effective until superseded or removed 2850 Page 3 of 10 FSM 2800 – MINERALS AND GEOLOGY CHAPTER 2850 – MINERAL MATERIALS Forest Supervisors are responsible for NEPA compliance with terms and conditions of all disposal authorizations, and for issuance of preliminary prospecting permits. These responsibilities may be delegated to the District Ranger In carrying out the responsibilities set forth in 36 CFR 228, Subpart C, "authorized officers" shall: 1. Not sell material for less than the fair market value (36 CFR 228.43, also see FSM 2856). 2. Charge the following administrative fees for free use permits and sales of mineral materials to cover costs of issuing and administrating the disposals (36 CFR 228.43(a)(4)(b)). Administrative fees are paid at the time of sale or when the permit is issued and are not refundable. The fees are deposited into Job Code 899015, Treasury Symbol 123220, "General Fund Proprietary Receipts, Not Otherwise Classified, Other". Authorized officer may adjust administrative fees for multiple contracts to the same purchaser from the same site, after the first contract and within a 2-year period. Regional Administration Fees for Material Disposals Disposal Size Charge Up to 10 cubic yards (C.Y.) No charge 10 to 100 (C.Y.) $25 101 to 5,000 C.Y. $50 5,001 to 15,000 C.Y. $100 15,001 to 50,000 C.Y. $200 50,001 to 100,000 C.Y. $400 100,000+ C.Y. $600 An additional administrative fee may be charged to recover costs incurred for the preparation of an Environmental Assessment or Environmental Impact Statement; or, enter into a collection agreement with the proponent to complete the necessary NEPA requirements through a thirdparty contractor. These are costs incurred in issuing the permit or sale. Collect these fees in advance of the sale or permit issuance and deposit into Job Code 899015, Treasury Symbol 123330, "General Fund Proprietary Receipts, Not Otherwise Classified, Other". 3. Ensure adequate measures are incorporated into disposal authorizations to protect and minimize damage to the environment. These measures must be consistent with Forest Plan direction and the project specific NEPA analysis. R2 SUPPLEMENT 2800-2000-1 EFFECTIVE DATE: 12/14/2000 DURATION: Effective until superseded or removed 2850 Page 4 of 10 FSM 2800 – MINERALS AND GEOLOGY CHAPTER 2850 – MINERAL MATERIALS 4. Ensure that all disposal authorizations contain measurable performance standards for all reclamation requirements, and all required bonds adequately cover the costs of reclamation. Follow FSM 2840 for guidance on reclamation. 5. Conduct mineral material site Inspection and Enforcement (I&E) and Production Verification (PV) for the following purposes: a. To identify and resolve unnecessary or undue resource degradation, and ensure protection of the environment, public health, and safety. b. To monitor and ensure proper compliance with laws and regulations, policy, the mine and reclamation plan, and the contract or permit stipulations. c. To ensure accurate accounting for materials removed and proper compensation to the Federal Government, and to identify and resolve mineral trespass removal in a timely manner. d. To administer disposal authorizations to standard, base the number of inspections on the size and type of disposal. The following are minimum frequency requirements for I&E/PV. Conduct more frequent I&E/PV where conditions warrant. (1) Sales: Annual Production. (a) Up to 100 Cubic Yards (CY) (76 Cubic Meters (m3)) (or weight equivalent). Conduct I&E/PV at the discretion of the authorized officer. (b) Between 100 CY (76 m3) and 5,000 CY (3823 m3) (or weight equivalent). Conduct I&E/PV at least once during the term of the contract or permit. For contracts or permits of greater than one year, conduct I&E/PV at least once annually. At a minimum, the PV shall include a field inspection. Require an operator submittal of the amounts removed at the end of the contract or annually for multiple year contracts. Require other field methods of the operator, as appropriate. (c) Between 5,000 CY (3823 m3) and 15,000 CY (11,469 m3) (or weight equivalent). Conduct I&E/PV at least twice, or twice a year for multiple year contracts. The PV shall include, at a minimum, a field inspection. Require an operator submittal at the end of the contract or annually for multiple year contracts. Require other field methods of the operator, as appropriate. (d) Between 15,000 CY (11,496 m3) and 50,000 CY (38,230 m3) (or weight equivalent). Conduct I&E/PV at least quarterly, or twice for contracts with less than a 6-month term. The PV shall include, at a minimum, a field inspection and use of a Pace and Compass or Tape and Compass by the Forest Service. The use of a more R2 SUPPLEMENT 2800-2000-1 EFFECTIVE DATE: 12/14/2000 DURATION: Effective until superseded or removed 2850 Page 5 of 10 FSM 2800 – MINERALS AND GEOLOGY CHAPTER 2850 – MINERAL MATERIALS sophisticated survey technique is encouraged. Require at least one operator submittal on a quarterly basis. When conditions warrant, require more frequent submissions. Require the operator to provide a pre- and post-survey of the disposal area. Aggregate sale of greater than 50,000 CY (38,230 m3) (or weight equivalent) out of the same pit by one operator should trigger the need for an operator provided survey of the disposal site. (e) Over 50,000 CY (3,230 m3) (or weight equivalent). Conduct I&E/PV at least once a month. Inspections should include an examination of the operator's PV methods (that is, survey control points, scales, and so forth). Require the operator to provide a pre- and post-survey of the disposal site. For contracts that exceed one year in duration, require annual surveys for pit dimensions and volume removed. Require at least one operator submittal on a quarterly basis. (2) Free Use. Conduct compliance inspections at least once a year during the life of the permit to administer the permit to standard. Inspections are discretionary for removals of less than 100 CY (76 m3) (or weight equivalent) on an annual basis. Require the operator to provide annual reports on actual production. The authorized officer shall ensure that the permittee complies with this requirement. Use other methods of PV at the discretion of the authorized officer. (3) Removal Trespass. (Under permit). Document problems identified during an inspection in an inspection report. Notify the permittee of corrective measures needed and the dates by which the remedial actions must be completed. Within a reasonable time period, re-inspect the site in order to ensure that the operator has adequately corrected the problem. If an operator is in trespass, the authorized officer shall issue a trespass notice and conduct a survey of the site to verify the amount removed. Require the operator to submit all documentation relating to the material removed. After discovery of a trespass, the authorized officer should increase the frequency of inspections to address the circumstances. Document the case file with the method and supporting data used to determine the quantity extracted for each pit. Use photographs, as appropriate, as part of the case file to aid in recording field observations. (A trespass notice is a certified or hand delivered letter to the permittee notifying of the trespass and outlines the specific corrective action needed to rectify the trespass. If a trespass has occurred, the authorized officer must determine if the trespass was "willful" (intentional) or "non-willful" (unintentional, in good faith or an honest and reasonable belief the taking was rightful). (4) Production Verification Methods. Use the type of production verification that reflects the accuracy needed. The techniques used for production verification range R2 SUPPLEMENT 2800-2000-1 EFFECTIVE DATE: 12/14/2000 DURATION: Effective until superseded or removed 2850 Page 6 of 10 FSM 2800 – MINERALS AND GEOLOGY CHAPTER 2850 – MINERAL MATERIALS from physical measurements taken during filed inspections to the use of high-tech methods that quantify the volume of material removed. Measurements using any of the following methods may need to consider overburden, swell and compaction factors, weight versus volume, and waste (oversize and fines). If a discrepancy occurs between the volume estimate and the reported volume and/or the operator disagrees with the findings, use an alternative verification method. (a) Site Visits. Examine an operation for compliance with regulations and stipulations of the contract or permit and visually estimate the quantity removed. (b) Pace and Compass. Measure distances by pacing. (c) Tape and Compass. For more exact and detailed traverses, use a tape to measure pit dimensions and stockpiles. Most surveys performed for production verification use this method. (d) Specialized Technology. On large scale projects, or on projects that require more accurate production verifications, consult with land surveying (cadastral) specialists at the forest, zone, or regional level regarding alternative methods. These methods may include: conventional surveying (transit/theodolite and tape), electronic surveying (electronic measurement, data collection, and processing equipment), photogrammetric surveying (aerial or terrestrial photograph measurements), satellite surveying (global positioning systems (GPS)), or computer generated mapping (CAD, GIS), any of which can provide reliable and cost effective results for specific applications. The cadastral specialist must have a clear understanding of (1) the purpose of the work to be done, (2) minimum accuracy requirements of the work, (3) the final product(s) or service(s) needed, (4) any fiscal constraints, and (5) realistic time frames for the completed work, allowing adequate time for review and revisions. Address certifications, reports, statements, or potential litigation commitments from any specialist. (e) End-Use Verification. Measure the volume of material at the end-use project area, and then compare the measured volume with the reported volume. (f) Operator Submittals. Trip Tickets. The truck driver or loader operator deposits completed volume or weight tickets in a secure box each time the operator exits the pit. Measure the dimensions of the truck and calculate the volume it holds. Each trip ticket represents the volume of one truckload. Weight Tickets. An operator provides certified copies of tally sheets from certified scales. R2 SUPPLEMENT 2800-2000-1 EFFECTIVE DATE: 12/14/2000 DURATION: Effective until superseded or removed 2850 Page 7 of 10 FSM 2800 – MINERALS AND GEOLOGY CHAPTER 2850 – MINERAL MATERIALS Production Reports. The operator is required to provide a production report during the specified reporting period. Pre- and Post-Surveys. An operator provides certified surveys of the site for determining pit dimensions and quantity removed. 2851 – SALES (36 CFR 228.57) Disposals may be by negotiated sale, competitive sale, negotiated preference right contract through prospecting permit, free-use permit, designation as a material source in a Forest Service timber sale or other contract, or administrative (In-Service) use. 2851.2 - Prospecting Permits These permits may be issued only for lands acquired under the Weeks Act or having Weeks Act status, if there is insufficient information on the mineral material resource to conduct a sale. Issue such permits free of charge unless the Forest or District determines that a significant administrative cost is being incurred. 2852 - FREE USE Free-use permits may be issued to any individual, for personal use only, up to 10 cubic yards (or weight equivalent) for any 12-consecutive months. Free-use permits may be issued to non-profit organizations or groups, or government agencies under the conditions specified in 36 CFR 228.62. Materials shall not be provided free to any individual, permittee, group, organization or government agency whose policy is to charge the Forest Service for use of materials under their control, unless there is clear evidence to show that the Federal Government is a direct beneficiary of the material use. Forests and Districts may establish additional volume restrictions. Free-use permits may be issued to amateur collectors, hobbyists, and scientists for limited quantities of petrified wood for personal use only. The material may not be bartered or sold. Forests and Districts may establish designated areas where permits are not required. Authorized officers must establish collecting rules for each area. The rules must be posted at these areas and the District and Supervisor's office. 2854 - COMMUNITY SITES AND COMMON-USE AREAS 2854.1 – Purpose R2 SUPPLEMENT 2800-2000-1 EFFECTIVE DATE: 12/14/2000 DURATION: Effective until superseded or removed 2850 Page 8 of 10 FSM 2800 – MINERALS AND GEOLOGY CHAPTER 2850 – MINERAL MATERIALS Community sites or pits and Common-use areas may be established to make simple nonexclusive disposals of small volumes to noncommercial users. There is no size limit for these areas, however community sites should be well marked on the ground, and each should have designated legal descriptions incorporated into forest plans. 1. A community site is a more specific site where mineral material disposals of fewer than 250 cubic yards each (or weight equivalent) may be authorized. 2. A Common-Use area is a more broad geographic area designated for removal of materials that occur on the surface. Limit size of each sale to 500 cubic yards (or weight equivalent) or less. 2854.3 – Term Sales or free-use disposals from community sites (pits) or common-use areas may not exceed 30 days duration with the right to apply for one 30-day extension. Forests and Districts may establish shorter terms as needed. 2855 - OPERATING PLANS In addition to minimum requirements in the regulations (36 CFR 228.56), operating plans for proposed disposals greater than 1,000 CY in volume (or weight equivalent) should include: 1. A map showing the general location of the proposed site, including access routes. 2. A map or sketch at a scale of at least 1 in. = 1000 ft., showing the area applied for, the area to be disturbed, the existing and any proposed access routes and staging areas, any structures or facilities planned, and any known historic resources present. 3. A description of the proposed operations, including the methods of extraction, all planned development and surface disturbance, type and size of equipment to be used, identifying an on-site contact or permittee's representative responsible for the operation (if applicable). 4. A description of all measures to be taken to protect and minimize damage to the environment, and prevent hazards to the public health and safety, and including reclamation plans that address structure and equipment removal. Operating plans for material sources designated in construction contracts shall follow guidelines in FSH 7709.56. Any revisions to an approved operating plan require approval by the authorized officer. Prepare operating (pit) plans for all in-Service pits, community sites, and common-use areas (36 CFR 228.64(b)). R2 SUPPLEMENT 2800-2000-1 EFFECTIVE DATE: 12/14/2000 DURATION: Effective until superseded or removed 2850 Page 9 of 10 FSM 2800 – MINERALS AND GEOLOGY CHAPTER 2850 – MINERAL MATERIALS Authorized Officers may establish additional requirements for disposals under their authority. 2856 – APPRAISAL All mineral materials for sale must be appraised to determine fair market value (36 CFR 228.48) of the right to extract and remove the mineral commodity. Appraisals shall be conducted by a qualified appraiser, minerals geologist, or geological/mining engineer; and approved by the Regional Forester. 2856.21 - Market Data Approach Material shall not be sold for less than fair market value, obtained through an appraisal for the commodity being sold. Appraisals should be no more than five years old, but must be updated annually before used. Minimum charges should be considered as "floor" values, not as "standard" values. The value of each sale must be substantiated by an appraisal. This can be prepared either for an individual sale, or for a general area where a specific variety has similar values. When the latter method is used, retain a copy of the area appraisal in each applicable case folder. The BLM appraises some material and their appraisals may be used, provided they have been reviewed and approved for use by the Director of Physical Resources. When an appraisal clearly shows that the product has a lower value than the Regional minimum, submit the appraisal to the Regional Forester for review of the proposed charge before issuing the permit. These appraisals should be sufficiently documented to prove that the lower value is fully justified. Product/Commodity Regional Minimum Value (*) $/TON Conversions (1 TON = 2000 lbs.) $/CUBIC YARD (CY) Sand & Gravel $0.35 $0.50 3200 lbs./CY Fill dirt $0.30 $0.36 2400 lbs./CY Rip-rap $0.30 $0.36 2400 lbs./CY Clay $0.30 $0.33 2400 lbs./CY Pumice 650 lbs./CY Cinders 1000 lbs./CY Stone $5.00 Not Applicable 2500 lbs./CY Flagstone/ Decorative Stone $12.00 Not Applicable 2500 lbs./CY Landscape rock $5.00 Not Applicable 2500 lbs./CY Peat 900 lbs./CY * (The Regional Office should be consulted every year for current costs and for material not listed above, or if there is a question on the classification of a mineral commodity.) R2 SUPPLEMENT 2800-2000-1 EFFECTIVE DATE: 12/14/2000 DURATION: Effective until superseded or removed 2850 Page 10 of 10 FSM 2800 – MINERALS AND GEOLOGY CHAPTER 2850 – MINERAL MATERIALS 2857 – BONDING A performance bond must be furnished to the authorized officer for all disposals, except as identified in the regulations to ensure payment (as necessary), reclamation, and other conditions of the contract or permit. Guidance for bonding is found in the regulations at 36 CFR 228.51. The Regional Office must review bonding requirements for all disposals greater than $5,000 prior to signing the contracts.