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FOREST SERVICE MANUAL
APACHE-SITGREAVES NATIONAL FORESTS
SPRINGERVILLE, AZ
FSM 2800 – MINERALS AND GEOLOGY
CHAPTER50 – MINERAL MATERIALS
Supplement No.: 2800-94-5
Effective Date: April 1, 1994
Duration: This supplement is effective until superseded or removed.
Approved: JOHN C. BEDELL
Forest Supervisor
Date Approved: 04/01/1994
Posting Instructions: Supplements are numbered consecutively by title and calendar year.
Post by document; remove the entire document and replace it with this supplement. Retain this
transmittal as the first page of this document. The last supplement to this Title was Supplement
2800-94-4 to FSM 2850.
New Document
2856.2
7 Pages
Superseded Document(s)
(Supplement Number and
Effective Date)
Supplement #7 Transmittal dated 05/86
2856.2—1 thru 2856--6
1 Pages
4 Pages
Digest:
This supplement is issued to conform to new directives format requirements, and to correct
typographical errors.
ASNF SUPPLEMENT 2800-94-5
EFFECTIVE DATE: April 1, 1994
DURATION: This supplement is effective until superseded or removed.
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FSM 2800 – MINERALS AND GEOLOGY
CHAPTER 50 – MINERAL MATERIALS
CHAPTER 50 - MINERAL MATERIALS
2856.2 - Fair Market Value. Reference EXHIBIT 01 for sale of common variety materials (cost
determination).
ASNF SUPPLEMENT 2800-94-5
EFFECTIVE DATE: April 1, 1994
DURATION: This supplement is effective until superseded or removed.
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FSM 2800 – MINERALS AND GEOLOGY
CHAPTER 50 – MINERAL MATERIALS
EXHIBIT 01
UNITED STATES
DEPARTMENT OF AGRICULTURE
FOREST SERVICE
Southwestern Region
Albuquerque, New Mexico
MEMORANDUM
MINERAL REPORT
2810 Apache-Sitgreaves National Forests
/s/ Hilton K. Cass
Mineral Examiner
October 7-9, 1985
Date of Examination
November 18, 1985
Date of Report
Category: Mineral Material Appraisal--Cinders
Claim Names: N/A; Springerville and Show Low areas
Brief of Conclusions and Recommendations: The recommended fair market value of the cinders
is $.50 per cubic yard.
Recommended:
/s/ Roger D. Marion
Regional Minerals Geologist
12/3/85
Date
Approved:
/s/ Nick W. McDonough
Forest Supervisor
12/10/85
Date
ASNF SUPPLEMENT 2800-94-5
EFFECTIVE DATE: April 1, 1994
DURATION: This supplement is effective until superseded or removed.
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FSM 2800 – MINERALS AND GEOLOGY
CHAPTER 50 – MINERAL MATERIALS
EXHIBIT 01 (Continued)
Introduction
The Apache-Sitgreaves National Forest has requested an appraisal of fair market value for
volcanic cinders disposed from various sites in the Springerville and Show Low areas. There are
a number of existing contracts that are shortly due for expiration and renewal, and there are some
indications of interest in new contracts by other operators. The Forest has been selling the
cinders for $.25 to $.30 per cubic yard for several years, and recognizes the need to review and
update the fair market value contract price. I visited the Springerville and Show Low areas on
October 7-9, 1985, and collected much information for this report form site visits and interviews
with operators and Forest personnel. Further information was obtained from other operators and
State and Forest personnel.
Location and Access
Springerville and Show Low are located about 46 miles apart on the southern edge of the
Colorado Plateau in east-central Arizona. Good, all weather highways serve as the main
transportation corridors and are linked to a good system of unimproved but maintained Forest
roads. Due to the high number of suitable cinder sources in the areas, most pits are within a few
miles of an all weather road and are easily accessible.
Area and Neighborhood Data
The Show Low area includes the neighboring communities of Pinetop and Lakeside, for a total
combined population of about 7,700. National Forest lands predominate, but much of the local
demand for cinders is supplied from a few sites on private lands within 3 to 5 miles of the
population centers. Currently, available cinders disposal sites managed by the Forest are about
the same distance. Cinders are used for landscaping, driveways, and leach lines.
The Springerville area includes the adjacent community of Eagar, for a combined total
population of 6,000. The small rural community of Greer is about 15 miles west of
Springerville, but is included within this study. Springerville-Eagar is surrounded by State and
private lands, with Forest lands extending from a few miles south of the communities to Greer
and beyond. The local demand for cinders for driveways and leach lines is supplied from Forest,
State, and County pits within 5 miles of the communities.
Site Data
Cinder cones are numerous in the Springerville and Show Low areas, which are part of the White
Mountain volcanic field. The cones are composed of moderately-compacted red and black
ASNF SUPPLEMENT 2800-94-5
EFFECTIVE DATE: April 1, 1994
DURATION: This supplement is effective until superseded or removed.
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FSM 2800 – MINERALS AND GEOLOGY
CHAPTER 50 – MINERAL MATERIALS
cinders that may require some primary crushing at times to break apart bombs and welded
boulders. Operators did not relate any difference in value between red and black cinders,
although red cinders are generally preferred for landscaping.
Vegetative cover ranges from sparse grasses to moderate pine forest. Most disposals are made
from existing pits that require little additional site preparation.
Market Data
A market data approach for appraisal has been selected because of the availability of comparable
sales in the areas. The basic data is summarized in the following charts:
Springerville Area
No.
Seller
Buyer
Date
Price
1.
Apache County
Richard Davies
current
$.50/yd3
2.
Private
Doug Slade
current
$.50/yd3
3.
State
Reidhead
current
$30/ton
($.221/2/yd3)
4.
State
Francis Day
current
$.50/yd3
Show Low Area
5.
National Forest
Bob Stoddard
current
$.30/yd3
6
Private
Red Mountain
Cinder Co.
current
$.35-$.50/yd3
7.
Private
Kay Perkins
current
$.35/yd3
The Arizona Department of Transportation (ADOT), which uses a large amount of cinders for
highway paving and maintenance in these areas, obtains all of its supply by Free Use Permits
from the Forest. The standard statewide selling price by the State Land Department to ADOT is
ASNF SUPPLEMENT 2800-94-5
EFFECTIVE DATE: April 1, 1994
DURATION: This supplement is effective until superseded or removed.
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FSM 2800 – MINERALS AND GEOLOGY
CHAPTER 50 – MINERAL MATERIALS
$.25/ton, and will be raised to $.35/ton in 1986. As cinders are about 1500 pounds/yd3, the
prices translate to about $.19/yd3 presently, and $.27/yd3 in 1986.
Sale 1 is on an as-needed basis to a private contractor from a pit on State lands that is operated
by Apache County. The pit is about 5 miles from Springerville. The cinders are used for general
purposes that do not require stringent specifications.
Sale 2 is similar to Sale 1, with the exception that the pit is privately owned. It also is within 5
miles of Springerville.
Sale 3 is a noncompetitive annual lease for a natural mixture of cinders and gravel that is used in
local asphalt road paving. According to State Land Department personnel, it is a one-of-a-kind
deposit that is sold at a higher price than the usual value ($.25/ton) for cinders, sand, and gravel
from State lands. The higher price is justified because the material meets the asphalt mix
specifications for State roads. This price will be raised to $.40/ton ($.30/yd3) in 1986.
Sale 4 is a competitive sale dated September 13, 1984, for a pit on State lands in T. 10 N., R. 28
E., section 23. The site is near a major highway and is about 8 miles northwest of Springerville.
The sole bidder was Francis Day & Son, contractors, who supply construction materials for the
improvements at the nearby electric power plant. There is a 3000 yd3 per year minimum, which
the operator has been meeting.
Sale 5 is a competitive sale dated October 9, 1984, from the Lakeside Ranger District to Bob
Stoddard for a pit located at Second Knoll, T. 10 N., R. 23 E., section 18, about 5 miles east of
Show Low. The pit is shared with the City and ADOT. There is a $6,000 annual minimum, and
the contractor mines about 26,000 yd3 per year. The contract expires at the end of 1986.
Sale 6 is the in-place value of cinders removed from private lands near Show Low, as quoted by
the operator, Red Mountain Cinder Company. The operator was reluctant to reveal the exact
terms of his contract with the landowner. The company is a major supplier of cinders to the
Show Low area.
Sale 7 is a lease arrangement between a private landowner and Kay Perkins, a contractor,
providing for a royalty on production. The term of the lease is not known. The pit is on First
Knoll, T. 10 N., R. 22 E., section 23, about 3 miles west of Show Low. The pit adjoins Forest
land that has also been worked in the past for cinders. Kay Perkins is one of the major suppliers
of cinders to the Show Low area.
ASNF SUPPLEMENT 2800-94-5
EFFECTIVE DATE: April 1, 1994
DURATION: This supplement is effective until superseded or removed.
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FSM 2800 – MINERALS AND GEOLOGY
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Analysis
The comparable sales data for cinders in the Springerville area suggests a typical in-place market
value of $.50/yd3 for all general purpose cinders. The sale from the State Land Department to
Reidhead for slightly different aggregate materials at $.22-1/2/yd3 is anomalously low, but is
close to the State Land Department's statewide asking price of $.19/yd 3 for general purpose
cinders. The State's appraised values for noncompetetive sales are based upon a statewide
appraisal that is several years old and is updated annually according to changes in the Bureau of
Labor Statistic's Wholesale Price Index for construction mineral materials. Although this
method may not reflect true fair market value, it is accepted by the State Land Department as a
convenience. The State's own recent competitive sale is this area to Francis Day & Son
confirmed the higher value of $.50/yd3.
The sales data for the Show Low area for cinders suggests a value between $.35/yd3 and
$.50/yd3. The contractual relationships between the private landowners and both Red Mountain
Cinder Company and Kay Perkins are unclear, but both pit operators have been in business for
several years and mine large volumes of cinders. Under those conditions, the lower end of the
range of values are most likely acceptable to the landowners. As most Forest sales are for shortterm contracts and smaller volumes, the higher end of the range ($.50/yd3) should be expected.
Conclusions
A fair market value of $.50/yd3 for volcanic cinders is proposed for both the Springerville and
Show Low areas. This valuation should be reviewed at least every 2 years in order to keep
abreast of changing economic conditions.
/s/ Hilton K. Cass
HILTON K. CASS
Mining Geologist