2850

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FOREST SERVICE MANUAL

SOUTHERN REGION (REGION 8)
ATLANTA, GA

FSM 2800 – MINERALS AND GEOLOGY

CHAPTER 2850 – MINERALS MATERIAL

Supplement No.: R8-2800-2002-2

Effective Date: November 06, 2002

Duration: This supplement is effective until superseded or removed.

Approved: ROBERT T. JACOBS Date Approved: 10/16/2002

Regional Forester

Posting Instructions: Supplements to this title are numbered consecutively. Post by

document name at the end of each chapter. Retain this transmittal as the first page of this
document. The last Supplement to this title was R8 Supplement 2800-2002-1.

New Document 2850 8 Pages

Superseded Document(s) 2850 8 Pages

(Supplement Number and 2800-2002-1
Effective Date) 04/26/02

Digest:

2851.2 - Adds the process for getting a permit to rock hound on parcels on which the quartz lease
has expired.
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DURATION: This supplement is effective until superseded or removed.

FSM 2800 – MINERALS AND GEOLOGY

CHAPTER 2850 – MINERALS MATERIAL

2850.1 - Authority.

Management for mineral resources is found in the following:

1. Mineral Materials Act of 1947

2. Act of July 23, 1955 (30 USC 601, 603, 611-615)

3. Act of March 4, 1917 (16 USC 520)

4. Act of June 11, 1960 (74 Stat. 205)

5. 36 CFR 228, Subpart C

6. Section 323 of P.L. 100-446.

2850.2 – Objective

To establish uniformity and continuity in the management of the minerals material program.

2850. 3 - Policy

1. The Forest Service in the Southern Region will make mineral materials available to
the public and to local, state and federal agencies when all of the following conditions are met:

a. Reasonable protection of, or mitigation of effects on, other resources is assured.

b. Removal is not otherwise prohibited.

c. Minerals material to be removed is not within an area reserved for Forest Service
use.

Free-use permits will be limited to local governmental projects. Free-use to individuals is

discouraged.

2850.4 - Responsibility

2850.42 - Regional Foresters

The Forest Supervisor is responsible for developing a Forest minerals material management plan
and will report annually to the Regional Forester the type and quantity of all mineral materials
removed, including free and Forest Service use.
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DURATION: This supplement is effective until superseded or removed.

FSM 2800 – MINERALS AND GEOLOGY

CHAPTER 2850 – MINERALS MATERIAL

2850.43 - Authorized Officers

District Rangers may conduct sales and issue free-use permits for mineral materials in values as
re-delegated by the Forest Supervisor.

2851.2 - Prospecting Permit

1. Known Deposits. If a deposit is already well known, there is little justification for
issuing a preference right prospecting permit. In this case, conduct a competitive sale or, if
competition is impracticable, (See current 36 CFR 228) conduct a negotiated sale (but not a
preference right negotiated sale). Use the following procedures:

a. Advertise for Bids.

b. Applicant completes Form FS 2700-3 - Special Use Application and Report.

c. Issue Form FS-2700-4 - Special Use Permit - for verification by bidder of Forest
Service information regarding quality and quantity.

d. Submission of Bids.

e. Award Contract - Form FS-2800-9.

2. Unknown Deposits. A preference right prospecting permit may be issued for

acquired and public domain National Forest lands where existing information about the mineral
material resource is insufficient or lacking. This permit grants the holder the exclusive right to
explore for and to demonstrate the existence of a valuable mineral material deposit. Use Form
FS-2800-2 with special stipulations (See FSM 2852.1). Applications for this type of prospecting
permits can be made using the sample form provided or a suitable form developed by the
Forests. Use these procedures:

a. Applicant completes Application for Prospecting Permit - Form R8-FS-2800-1.

b. Issue Prospecting Permit - Form 2800-2.

c. Verify discovery (See FSM 2859)

d. Issue Contract for Sale of Mineral Material - Form 2800-9.

3. Competitive Sale. When a combination of past mining activity and geologic

information indicates an excellent chance of yielding a quantity and quality saleable mineral
material, a competitive sale is the only method to be used. (See current 36 CFR 228 for quantity
and value limitations). Follow the procedures for Known Deposits. Forest Supervisors will
forward selected areas to the RO for approval.
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DURATION: This supplement is effective until superseded or removed.

FSM 2800 – MINERALS AND GEOLOGY

CHAPTER 2850 – MINERALS MATERIAL

Section 323 of P.L. 100-446 established that all quartz crystals on the Ouachita National Forest
were mineral materials (common variety) and were to be sold competitively. Parcels for sale can
be identified and nominated by individuals, companies, or governmental agencies including the
Forest Service. Parcel size varies from 10 to 80 acres and the parcel must be described by legal
subdivision.

Interested parties submit their nominations to the authorized Forest Officer. Nominations must
be accompanied by a $100 nomination fee. The nomination fee is returned to the nominator if
he/she is out bided. If neither the nominator nor anyone else bids, the nomination fee is forfeited
by the nominator and distributed as directed along with all other fees. Each parcel shall be
described by aliquot parts and must conform to established legal subdivisions. The authorized
Forest Officer will complete an environmental review or assessment to determine if the parcel is
legally available, if development is consistent with the Forest Plan, and under what terms and
conditions exploration and development can occur.

The Forest Officer shall offer all quartz parcels for sale by competitive bid. Those interested in
the parcel must make a one-time bonus bid for the entire parcel. The highest bidder wins the
parcel. Any parcel that is not bid on or otherwise remains unsold will be immediately retired and
will be available only if renominated and processed as a new parcel. In lieu of charging a royalty
on production, the parcel winner must pay an annual fee as specified later below. The minimum
bid for any parcel is $50.00.

a. Sale Schedule. The Ouachita National Forest shall hold competitive quartz sales
on a periodic basis. Public demand shall determine the number of sales scheduled
each year. Sales will be advertised for at least two (2) consecutive weeks in
appropriate newspaper(s) covering the area of the sale. Sale notices will be sent to
interested persons at least two (2) weeks prior to the sale date. The authorized Forest
Officer may initiate additional advertising as deemed needed.

b. Bidder Qualification. No individual or company may purchase more than six (6)
sale contracts or have contracts covering more than 240 acres at any one time. No
bids will be accepted from, nor will a quartz contract be issued, to any individual,
partnership, person in a partnership, or company that is in non-compliance on another
quartz contract at the time of the sale. No bids will be accepted from nor will a quartz
contract be issued to any individual, partner, person in a partnership, company, or any
combination thereof that has received three formal notices of non-compliance by a
District Ranger within a year of the sale announcement.

c. Contract Terms. The initial term of the sale contract covers a five (5) year period
with a provision for additional five-year extensions. The permittee has the option of
dropping acreage at the end of each fifth year. At no time can the acreage under any
contract contain less than 10 acres. Acreage dropped from a contract can be
renominated.
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FSM 2800 – MINERALS AND GEOLOGY

CHAPTER 2850 – MINERALS MATERIAL

d. Contract Fees. Since there is no royalty charged on production, each permittee

must pay an annual fee based on the acreage contained in the contract. To promote
diligent development, this fee will increase each year the contract is in effect during
the initial five-year term. Failure to pay the annual fees or otherwise violate the
conditions of the contract can result in termination of the contract. The Forest shall
collect all funds generated by the sales and distribute them as directed by existing
statute. The following fee schedule applies to all sale contracts issued:

Year 1 $5.00/acre
Year 2 $10.00/acre
Year 3 $20.00/acre
Year 4 $40.00/acre
Year 5 $50.00/acre

e. Contract Extensions. The annual contract fee shall be no less than the 5th year fee
plus the percent increase on quartz at the mine site based on a Forest Service
evaluation of the quartz market conditions.

4. Negotiated Sale. This method should be used in all non- competitive disposal and
when competition is impracticable. (See current 36 CFR 228 for quantity and value limitations).

5. Minimum Sale. All disposals not qualifying for free-use as described in FSM 2850.3
(2) will be subject to a minimum charge of $25.00.

6. Resale of Terminated Parcels. Parcels that have sold successfully by competitive sale
and then expired or terminated may be reissued non-competitively under the following
conditions:

a. Parcel will be used only for non-commercial mineral collecting (rockhounding) of

surface mineral specimens in reclaimed tailings;

b. Parcels must consist of 10 acres, but no more than 3 acres total will be used for
collecting purposes;

c. Contracts issued on these parcels will be issued on a first-come, first-served basis.

7. Forms. For preference right sales use Form 2800-7a. For all other sales use Form
FS-2800-9.
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DURATION: This supplement is effective until superseded or removed.

FSM 2800 – MINERALS AND GEOLOGY

CHAPTER 2850 – MINERALS MATERIAL

2853 - IN-SERVICE USE

1. Other Uses.

a. Free Use. Use Form FS-2800-9, Mineral Material Contract for free-use disposal.
For determining maximum amounts of mineral material that may be given away
without charge to a non-profit association, corporation or individual, see the most
recent 36 CFR in 228. Lower limits may be established by the Forest Supervisor or
his delegated representative if required for effective resource management. When
possible, adhere to policy listed in FSM 2850.3 (2).

2. Forest Service Use.

a. Inventory. Prepare and keep current a mineral materials inventory for both
proven and probable resources. Use this inventory as the basis for determining the
allocation of mineral materials for both Forest Service and external needs that will
yield the greatest public benefit. This inventory is an integral part of the Forest
mineral material plan.

b. Coordination. It is essential that adequate coordination be established and

maintained with the Forest Engineer when developing Forest Service allocations.

2853.21 - Development Plan

A development plan shall be prepared for each mineral materials resource site proposed for
Forest Service use. This plan is based on detailed geologic investigations (See current 36 CFR
228). This plan, including reclamation measures, must be responsive to the findings of an
environmental analysis. Update the operating plan as needed.

2854 - COMMUNITY SITES AND COMMON-USE AREAS

2854.1 - Purpose

Community pits are sites designated for long-term disposal of specific deposits of mineral
materials. Common-use areas are broad geographic areas designated for the removal of surface
occurring mineral materials having no appreciable surface disturbance, and which normally do
not require reclamation. These areas from which non-exclusive disposal can be made are
established, maintained, and ultimately closed by the Forest Service.
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DURATION: This supplement is effective until superseded or removed.

FSM 2800 – MINERALS AND GEOLOGY

CHAPTER 2850 – MINERALS MATERIAL

The purposes for establishing these areas are:

1. To provide a source of mineral materials for small volume and/or non-commercial

users who may neither have the equipment nor the capital to invest in an exclusive disposal site.

2. Concentrate activities into limited areas to minimize environmental impacts and

administrative costs.

2854.2 - Method of Disposal

Use negotiated sales subject to the minimum sale provisions (FSM 2852.3) or free-use permits to
dispose of mineral material from community sites and common-use areas. Process disposal on
approved form FS-2800-9 with appropriate annotations.

2854.3 - Term

The maximum term for any single authorized non-exclusive use is 90 days; however, shorter
terms may be established as needed.

2855 - OPERATING PLANS

All surface disturbing operations, except those occurring under a minimum sale where there is no
significant surface disturbance, require an operating plan. Purchasers and permittees prepare
their own operating plans.

1. Format. Operating plans have no special format since their complexity and length
may vary with the scope of the proposed operation and anticipated environmental impacts. The
only requirement is that they must include the information specified in the most current part of
the 36 CFR 228 that deals with mineral materials and their disposal.

2. Revisions. An authorized officer must approve any revision to the original plan.

2856- APPRAISAL

2856.1 - Requirements

All mineral materials for sale or free-use must be appraised to determine their fair market value.
Make no sales at less than the appraised value. For details on mineral material appraisal
procedures, refer to Region Eight’s "Mineral Material Appraisal Guidelines" of July 1981,
supplemented May 1994.
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DURATION: This supplement is effective until superseded or removed.

FSM 2800 – MINERALS AND GEOLOGY

CHAPTER 2850 – MINERALS MATERIAL

2857- BONDING

The main purpose for bonding is to ensure compliance with reclamation requirements described
in operating plans. FSM 6506 lists the types of bonds acceptable to the Forest Service. For
purchasers and permittees having a history of poor compliance, use discretion in establishing
more stringent bond requirements.

2858 - RECLAMATION

All contracts and permits must contain requirements for the reclamation of disturbed areas.
Reclamation measures must be included in all operating plans. Although reclamation is
primarily the responsibility of the purchaser or permittee, the Forest Service is responsible for
reclamation above and beyond that required in contracts and permits for community sites and
common-use areas (for example, pit enclosure). The Forest Service has no authority to require
cooperative deposits for this purpose.

2859 - REPORTING

The authorized officer must obtain a report of the mineral material volume in removed cubic
yards or weight equivalent from each purchaser and permittee at least annually.

1. VERIFICATION OF DISCOVERY. In order to verify the discovery of marketable

mineral material, the responsible officer must secure from the applicant sufficient subsurface
information to formulate a decision as to the volume and quality of the mineral material present
under the prospect area. This information should include drill hole logs, samples from each hole
drilled, and a map or sketch locating all drill holes, trenches, and sample pits. The responsible
officer should visit the prospect area during and after prospecting operations to validate locations
of all drill holes, trenches, and test pits and to insure that samples presented by applicant are
representative of the prospect area. Assistance from the Forest Geologist or the Regional
Geologist is recommended.