(c) The United States will retain the rst installment as security for
your full and faithful performance and will apply it to the last
installment required to make the total payment equal to the total price
given in Section 2.
If you are late making an installment payment, you must not remove
any more material until you have paid. Removing material you have not
paid for is trespass, and for trespass you must pay at triple the appraised
unit price, or at triple the reappraised unit price if BLM has made a
reappraisal. To resume removal operations after you were late making
payments, you must obtain BLM’s written approval.
(d) You must annually produce an amount sufcient to pay to the
United States a sum of money equal to the rst installment identied in
this section. In lieu of such production, you may make an annual
payment in the amount of the rst installment. If in any contract year
you make production payments that are less than the rst installment,
you must pay the difference between the production payments and the
amount of the rst installment. These annual payments are due on or
before each anniversary date of the contract.
(e) You receive title to the mineral materials only after you have
paid for them and extracted them.
Sec. 4. Bonds - (a) You must furnish BLM with a performance
bond in the amount of $
condition of issuing this contract.
(b) If you do not perform all terms of the contract, BLM will deduct
an amount equal to the damages from the face amount of the bond. If
the damages exceed the amount of the bond, you are liable for the
excess. BLM will cancel the bond or return the cash or U.S. bonds you
supplied when you have completed performance under this contract.
(c) BLM will require a new bond when it nds any bond you
furnish under this contract to be unsatisfactory.
Sec. 5. Risk of loss - You assume complete risk of loss for all materials
to which you have title. If material covered by this contract is damaged
or destroyed before title passes, you are liable for all loss suffered if you
or your agents are directly or indirectly responsible for the damages. If
you are not responsible for the damage or destruction, you are liable
only to the extent that the loss was caused by your failure to remove the
material under the terms of this contract. You are still liable for breach
of contract or any wrongful or negligent act.
Sec. 6. Liability for damage to materials not sold to you - You are
liable for loss or damage to materials not sold to you if you or your
agents are directly or indirectly responsible for the damage or loss. You
are also liable if you fail to perform under the contract according to
BLM’s instructions and the United States incurs costs resulting from
your breach of any contract term or your failure to use proper
conservation practices. If the damage resulted from willful or gross
negligence, you are liable for triple the appraised value of the damaged
or destroyed materials. If the damage or destruction did not result from
willful or gross negligence, you are liable for lesser charges, but not less
than the appraised value of the materials.
Sec. 7. Stipulations and reserved terms - Your rights are subject to the
regulations at 43 CFR Group 3600 now or hereafter in force and to any
stipulations and the mining plan attached to this contract.
BLM will check this box if there are stipulations attached to this
Sec. 8. Notice of operations - You must notify BLM immediately when
you begin and end operations under this contract. If BLM has specied
a time frame for notication, you must comply with that time frame.
Sec. 9. Assignments - You may not assign this contract without BLM’s
Sec. 10. Modication of the Approved Mining or Reclamation Plan - You
or BLM may initiate modication of these plans to adjust for changed
conditions, or to correct any oversight. The conditions for BLM requiring
you to modify these plans, or approving your request for modication are
found in the regulations at 43 CFR 3601.44.
Sec. 11. Expiration of contract - This contract will expire
months, days from its
approval date, unless BLM extends the term or renews the contract.
Sec. 12. Extensions of time - BLM may grant you an extension of time in
which to comply with contract provisions under the regulations at 43 CFR
3602.27. For contracts with terms over 90 days, you must apply in writing
no less than 30 or more than 90 days before your contract expires. For
contracts with terms of 90 days or less you must apply no later than 15
days before your contract expires.
BLM will check this box if this contract is a renewable
Sec. 13. Renewal of renewable competitive contract - BLM will renew
your renewable competitive contract if you apply in writing no less than
90 days before your contract expires and you meet the conditions in the
regulations at 43 CFR 3602.47.
Sec. 14. Time for removing personal property - You have
days (not to exceed 90) from the date this contract expires
to remove your equipment, improvements, and other personal
property from United States lands or rights-of-way. You may leave in
place improvements such as roads, culverts, and bridges if BLM consents.
Any property remaining after this period ends, including extracted
materials, becomes the property of the United States. You will remain
liable for any costs of removing and disposing of the property and
restoring the site.
Sec. 15. Violations and cancellations - (a) If you violate any terms or
provisions of this contract, BLM may cancel your contract following the
regulations at 43 CFR 3601.60 et seq., and recover all damages suffered
by the United States, including applying any advance payments you made
under this contract toward the payment of the damages.
(b) If you extract any mineral materials sold under this contract during
a suspension period, or after the contract has expired or been canceled,
you have committed, and may be charged with, willful trespass.
Sec. 16. Responsibility for damages suffered or costs incurred by the
United States - If you, your contractors, subcontractors or employees
breach this contract or commit any wrongful or negligent act, you are
liable for any resulting damages suffered or costs incurred by the United
States. You must pay the United States within 30 days after receiving a
written demand from BLM.
Sec. 17. Equal opportunity clause - The actions you take in hiring must
comply with the provisions of Executive Order No. 11246 of Sept. 24,
1965, as amended, which describe the non-discrimination clauses. You
may get a copy of this order from BLM.
(Continued on page 3)
(Form 3600-9, page 2)