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fsM 2800 – MINERALS

CHAPTER 2850 MINERAL MATERIAL

SUPPLEMENT NO.: R9-SUPERIOR 2800-2003-1

Effective Date: May 1, 2003

Duration: This supplement is effective until superseded or removed.

|Approved: James W. Sanders |Date Approved: 04/17/2003 |

|Forest Supervisor | |

Posting Instructions: Supplements are numbered consecutively by Manual number and calendar year. Post by document; remove the entire document and replace it with this supplement. Retain this transmittal as the first page(s) of this document. The last supplement to this Manual was R9 Superior 2800-92-1 to Chapter 2850.

|New Document | R9 Superior 2800-2003-1 |14 Pages |

| |2850.2 – 2589 & Exhibits 1, 2, 3, 3A, 4 | |

|Superseded Document(s) (Supplement Number and | R9 Superior 2800-2002-1 |14 Pages |

|Effective Date) |2850.3 – 2859 & Exhibits 1, 2, 3, 3A, 4 | |

Digest:.

This supplement outlines general policy and procedures for managing mineral materials and emphasizes pit management planning to develop site-specific direction and includes minor revisions to wording for paragraph 2856 to clarify how products will be sold.

I have decided not to obtain further public input for this supplement in accordance with 36 CFR 216.4.

2850.2 - Objectives.

This supplement establishes policy and procedures for managing mineral materials and provides guidance for developing site-specific management direction through pit management planning.

2850.3 - Policy.

1. Pit management planning shall determine the type of pit, as listed in Paragraph 2850.4 of this supplement, that is appropriate for managing a mineral material source. Sources shall not be managed as multiple pit types and converting from one type to another requires approval of a new management plan.

2. An approved pit management plan is required before removing more than 5,000 cubic yards from any source during a calendar year.

3. An approved operating plan (extraction and processing plan submitted by the operator) is required before extracting more than 1,000 cubic yards from any source. (See Exhibit 2).

4. Performance bonds are required for removals over 5,000 cubic yards. Bonding for removals of less than 5,000 cubic yards are at the discretion of the district ranger.

5. Contractors shall provide proof of liability insurance covering their operations.

6. Special use permits are required for secondary processing operations (asphalt plants, etc.) except for those established under Forest Service contracts.

7. Free use to individuals shall be limited to 5 cubic yards of hand-loaded material.

8. Mining shall be done by front-end-loaders from the floor of the pit unless other methods are approved by the pit management plan. (Note: This is a bonding item.)

9. Standing timber shall not be caved into the pit. (Note: this is a bonding item.)

10. The minimum distance for clearing and grubbing is 10 feet beyond the working face. (Note: this is a bonding item.)

11. No material from the pit area shall be dumped into standing timber. (Note: this is a bonding item.)

12. No material shall be buried in the pit area unless specifically required by the pit management plan. (Note: this is a bonding item.)

13. Topsoil shall not be sold.

14. Mining of materials from outside the area specified in the contract shall be considered a trespass. (Note: this is a bonding item.)

15. Records shall be maintained for each pit, citing each sale, free use grant, or administrative use; the date, and the amount of material removed.

2850.4 - Responsibility.

2850.43 - Authorized Officers.

1. The Forest Supervisor has responsibility for; (1) issuing all “preference right” prospecting permits and leases for mineral materials, (2) issuing all contracts for over 15,000 cubic yards, (3) conducting all competitive sales; and (4) issuing free use permits over 5 cubic yards and up to 5,000 cubic yards per year to nonprofit entities which are not government agencies.

2. The District Ranger has authority for; (1) issuing contracts up to 15,000 cubic yards, (2) issuing free use permits for up to 5 yards of hand loaded material to private individuals or nonprofit entities and (3) issuing free use permits for highway purposes to public road agencies without limit on quantity. The District Ranger is hereby delegated the authority and responsibility for administering all contracts issued by the Forest Supervisor. The District Ranger shall approve all administrative uses on the district.

2850.5 - Pit Descriptions. The following pit descriptions provide direction on use, user, volumes, bonding and reclamation:

1. Administrative Pit – A deposit used exclusively by the Forest or cooperating agency for administrative uses. Restoration is the responsibility of the Forest or cooperator. Contractors acting on behalf of the Forest or cooperator must be bonded for removals greater than 5,000 cubic yards.

2. Single Entry Pit – A deposits that will be depleted by a single entry or where the time between entries justifies temporary restoration. Disposals are by administrative use, free use, or sales. Restoration is the responsibility of the user. Bonding for removals over 5,000 cubic yards is required unless the Forest does the work. The price list found in Paragraph 2850 of this supplement shall be used for all sales unless an appraisal is done.

3. Community Pit – A deposit where small quantities of material are continuously removed for noncommercial uses. Disposals are by sale or free use. The District has responsibility for developing the pit management plan. Reclamation is the responsibility of the Forest Service. The price list found in Paragraph 2850 of this supplement shall be used for all sales.

4. Continuous Use Pit – A large deposit that is continuously mined by many users over a long period of time. Disposals are by administrative use, free use or sales. Volumes are limited to: less than 100,000 cubic yards/sale for non-government entities; 200,000 for public works; and unlimited for interstate or Federal aid highways. All users, including the Forest and cooperators, contribute to a reclamation and resource recovery fund. Reclamation of all or part of the pit can be substituted for a reclamation contribution if it achieves the final reclamation required by the pit management plan. All users and Forest Service contractors removing more than 5,000 cubic yards shall be bonded for performance. Material prices are established by appraisal and listed in the pit management plan or the plan refers to the price list found in paragraph 2850 of this supplement.

5. Preference Right Pit – A deposit developed under a preference right lease. The lessee has exclusive right to mine the deposit subject to approval of an operating plan by the Forest Supervisor. Sales price is negotiated. Reclamation is the responsibility of the lessee. The lessee shall be bonded for performance.

6. Competitive Bid Pit – A deposit where the exclusive right to mine has been secured through competitive bidding. The contractor must submit an operating plan to the Forest Supervisor for approval before mining can began. Reclamation is the responsibility of the lessee. The lessee shall be bonded for performance.

7. Concession Pit – A deposit on Forest Service land that is managed by a concessionaire. The exclusive right to manage can be acquired through competitive bid, or through negotiation if obtaining competition is not practical. The concessionaire pays by volume removed and is required to sell material on the open market. Extraction cannot occur until an operating plan is approved and the operator is bonded for performance. Reclamation is the responsibility of the concessionaire. For large deposits, where concessionaires may change before the deposit is depleted, contributions to the Rehab Fund can be made. Contracts will be for 5 years with one 5-year renewal. Terms and conditions may be adjusted at the time of renewal. Additional renewals are at the discretion of the authorizing officer and may require competitive biding.

2850.7 - Pit Management Plans. A pit management plan is required before removing more than 5,000 cubic yards of mineral material from any site during one calendar year. Pit management plans will be prepared according to the guidelines given in Exhibit 1 and approved by the District Ranger. Copies of approved pit management plans shall be provided to field engineering units and the Forest Supervisor (Resources Team Leader).

2850.8 - Monitoring.

1. As a minimum all producing pits shall be monitored once a year for general condition, safety hazards, trespasses and need for inventory.

2. Additional monitoring requirements for operator compliance and production verification shall be based on the following volumes of removal:

a. For disposals between 100 and 1,000 cubic yards:

At District Ranger discretion.

b. For disposals between 1,000 and 5,000 cubic yards:

After removal.

c. For disposals between 5,000 and 10,000 cubic yards:

Before and after removal.

d. For disposals over 10,000 cubic yards:

Before, monthly during removal, and after removal.

3. Monitoring reports must be filed in the case folder.

2851 - SALES.

2851.1 - Contract Forms. The Forest Supervisor’s Staff shall provide contract forms for mineral material sales. Current forms authorized for use shall be maintained on the Forest computer system. See Exhibit 4 for a list of authorized forms.

2851.2 - Prospecting Permit. The Forest Supervisor upon the recommendation of the District Ranger will issue prospecting permits for mineral materials.

2851.3 - Preference Right Negotiated Sale. A Preference Right Negotiated Sale results from a discovery being made under a Preference Right Prospecting Permit. The Forest Supervisor issues the contract.

2851.4 - Competitive Sales Except for a negotiated sale under a preference right prospecting permit, competitive sale is required to obtain exclusive right to a mineral material source. The Forest Supervisor conducts competitive sales. (See 36 CFR 228.58).

2851.5 Negotiated Sales. When it is impractical to obtain competition, sales can be negotiated at not less than fair market value for volumes under 100,000 cubic yards. Such sales shall be made by contract in accordance with the guidance given in 36 CFR 228.53 through 228.56 and 228.59. These sales are generally those conducted in Community or Continuous Use Pits using the values listed in paragraph 2856.

2851.6 – Payments. Payments must be received before mineral materials can be removed. For contracts less than $5,000, full payment is required. Installments may be authorized for contracts over $5,000, however, installment must be made in advance of material removed.

2851.7 – Refunds. No refunds shall be given for material not removed during the term of the contract, unless the authorizing officer determines that circumstances preventing removal were beyond the control of the purchaser.

2851.8 - Quantity limit. No more than 200,000 cubic yards may be sold to any one applicant in any consecutive 12-month period (whether through competition or negotiated sale).

2852 - FREE USE

Except for small amounts of hand loaded material:

Mineral materials shall not be provided free for purposes that do no meet or exceed their highest-and-best-use. For example, if a public agency intends to use pit-run gravel for granular borrow charge them fair market value for pit-run gravel.

Free uses are not exempt from the requirements for reclamation, bonding and contributions to the resource recover fund as required in the pit plan.

District Ranger Authority:

The District Ranger may grant free use for 25 cubic yards of hand-loaded material to individuals, nonprofit corporations or nonprofit organizations during any consecutive 12-month period. Terms of the permits are not to exceed 30 days.

The District Ranger may grant free use of mineral materials to public agencies for highway purposes without volume limitations. For non-highway purposes, the maximum volume is 200,000 cubic yards per calendar year. Do not grant free use to agencies that charge the Forest for like materials.

Forest Supervisor:

The Forest Supervisor has authority to grant free use for up to 5,000 cubic yards per year to nonprofit corporations or nonprofit organizations.

2853 - IN-SERVICE USE. The District Ranger shall approve all in-service uses and assure that contractors and Forest Service crews comply with pit management plans.

2853.1 - Inventory and Planning.

1. District Rangers shall maintain a list of existing pits and the amount and type of material known to be available at each.

2. District Rangers shall develop a 5-year estimate of needs for mineral materials based on in-service plans and the needs of frequent purchasers and users. These estimates will be used for developing strategies for exploration and management of mineral material resources on the District.

3. The District Ranger shall request the assistance of the Forest Supervisor's staff for locating materials for large-scale projects and in areas where requests will exceed the available resources.

2855 - OPERATING PLANS. An operating plan describes the mining and processing activities associated with a specific removal. The authorizing officer provides an operating plan for removals of less than 1,000 cubic yards. For removals over 1,000 cubic yards, the operator submits a plan to the authorizing officer for approval. Operating plans must be consistent with the pit management plan. (See Exhibit 2)

2856 - MINERAL MATERIAL PRICES.

The highest and best use for materials from a source must be documented in a pit management plan before they are sold or provided free. No mineral materials shall be sold for less than the prices listed below unless the pit management plan or contractual agreement directs differently. These prices do not include contributions to the rehab and resource recovery fund.

1. CRUSHING MATERIAL: If the highest and best use of the materials from an entire pit, or designated sections of a pit, is for crushing material, charge $1.20/cubic yard along the North Shore and Gunflint corridors and $.95/cubic yard for the remainder of the forest.

2. PIT RUN GRAVEL: If the highest and best use of the materials from an entire pit, or designated section of a pit, is for pit run gravel (high quality material that can be substituted for processed material) charge $2.80/cubic yard along the North Shore and Gunflint corridors and $2.25/cubic yard for the remainder of the forest.

3. PIT RUN SAND: If the highest and best use of the material from a pit or sections of the pit is for pit-run sand (sand suitable for mounds, road sand or similar uses without further processing) charge $2.20/cubic yard along the North Shore and Gunflint corridors and $1.75/cubic yard for the remainder of the forest.

4. COARSE REJECTS: If the highest and best use of coarse rejects from a pit is for riprap, landscaping or similar uses charge $3.15/cubic yard along the North Shore and Gunflint corridors and $2.50/cubic yard for the remainder of the forest. For large sales convert cubic yards to tons and sell by the ton.

5. TOPSOIL: There shall be no disposal of topsoil.

6. OTHER MINERAL MATERIALS: The District Ranger must request an appraisal for all other mineral materials before disposal.

The District Ranger must request an appraisal of mineral materials if there are indications that their value is higher that the prices listed above.

2857 - BONDING. Performance bonds are required for all removals over 5,000 cubic yards, unless the Forest or other government agency is doing the removal on their own behalf. Contractors removing more than 5,000 cubic yards shall be bonded for compliance to pit management and operating plans.

2858 - RECLAMATION. The reclamation requirements of the pit management plan will be followed for removals from pits producing more than 5,000 cubic yards/year. For removals from pits producing less than 5,000 cubic yards/year, the authorizing officer shall determine the appropriate reclamation.

2859 - REPORTING. The District Ranger shall prepare a report listing the amount and values of the mineral materials removed during the past fiscal year from each designated site and submit it to the Forest Supervisor by October 15th.

EXHIBIT 1

PIT MANAGEMENT/DEVELOPMENT PLANS

Purpose:

A pit management plan provides the direction needed to mine a deposit in an efficient and environmentally acceptable manner and to leave the area in a safe and productive condition.

Description:

A pit management plan is a combination of maps and written information that describe the many aspects of managing a gravel resource from the start of operations to final reclamation. They can be simple to complex depending on the characteristics of the deposit and it’s location. There are no cookbook recipes; they need to be site specific.

Content:

1. A section designating the type of pit as required in 2850.3 – Policy.

2. Appropriate direction from the environmental assessment.

3. Other items that should be considered in developing a pit management plan are:

Description of the deposit:

a. Topographic map

b. Test hole locations and descriptions

c. Summary of test hole results – types and quantities of materials found and their location.

d. Depth of overburden and topsoil.

e. Depth to ground water.

f. Potential for expansion.

g. Highest and best use of the materials.

Site preparation:

a. Access – where and what controls; gates, fences, berms signs.

b. Timber removal.

c. Vegetation retention.

d. Clearing and grubbing.

e. Salvage and storage of topsoil.

f. Storage or disposal of woody debris.

g. Storage or disposal of overburden.

h. Scales, buildings or other facilities.

i. Landline Surveys.

j. Topographic survey for future volume checks.

Mining:

a. Sequence of development, mining and reclamation.

b. Limits on the type of mining equipment to be used – generally only front-end loaders are acceptable.

c. What types of materials are to be mined from what areas?

d. Grades of the pit floor.

e. Mining elevations above or below the water table.

f. Runoff control.

g. Grades of the side slopes.

h. Storage area for coarse or fine rejects.

i. Storage areas for finished products (long term storage requires special-use permit).

Processing:

a. Only pit run use?

b. Screening size limits.

c. Crushing size limits.

d. Batch plants if allowed require special-use permit.

Reclamation: Desired future condition of the site considering:

a. Environmental protection.

b. Aesthetics

c. Wildlife provisions.

d. Recreational provisions.

e. Water diversion or protection.

f. Sloping

g. Vegetation

h. Costs

Stipulations:

Provide a list of any stipulations that will be needed to enforce the provisions of the pit management plan. These will be attached to authorizations for removal as appropriate.

THE FOLLOWING ARE SOME EXAMPLES OF STIPULATIONS:

a. Only front-end-loaders can be used for mining.

b. Topsoil and woody debris shall be stockpiled in __________ (the area designated).

c. All material must be taken as pit run.

d. Minimum coarse reject size is ________ inches.

e. No operations can occur on weekends or holidays.

f. No vegetation shall be disturbed in the designated screen area.

g. The floor of the pit shall be excavated ____ feet below ground water in _____________ (the area designated).

h. A vertical bank shall be left in ____________________ (the area designated).

i. The section corner located _____________________ shall not be destroyed.

j. The floor of the pit will be contoured to direct drainage into _____________ (the area designated).

k. No mining within ______ feet of the water table.

The above examples of stipulations are not meant to be all-inclusive or mandatory. Good judgment will determined the appropriate stipulations based upon the requirements of the pit management plan and/or specific operating plan for the project.

EXHIBIT 2

OPERATING PLANS

Purpose:

To provide the Authorizing Officer with the information needed to determine if a specific mining proposal is consistent with the pit management plan. (An operating plan does not substitute for a pit management plan and a pit management plan does not substitute for an operating plan).

Description:

An operating plan describes the detailed mining and processing activities that are associated with a proposal to remove a specified amount of material.

Content:

Operating plans might include the following:

1. Timing and duration of operations.

2. Timber and slash removal methods and disposal.

3. Clearing and grubbing methods.

4. Location of storage or disposal areas for topsoil, overburden and woody debris.

5. Type of equipment to be used for mining.

6. Areas of the pit where mining will occur.

7. Type of equipment to be used for processing.

8. Areas of the pit where processing and other equipment will be located.

9. Size and volume of oversize and undersize materials that will be produced.

10. Location of storage or disposal areas for processing rejects.

11. Location of storage areas for finished products.

12. Reclamation plans.

13. The name of a designated representative of the purchaser or permit holder.

Note: Special use permits are required for:

1. Long term storage of finished products

2. Batch plants and other secondary processing plants

3. Recycling of asphalt or other paving products

EXHIBIT 3

RESOURCE RECOVERY/RECLAMATION FUND

I. Objective. The objective of this cooperative fund is to provide a method for purchaser's of mineral materials to contribute to resource recovery and rehabilitation of mineral material disposal areas.

II. Qualifications. All purchasers will be offered the choice of contributing to the fund in lieu of actual resource recovery and rehabilitation.

III. Fees. The resource recovery and rehabilitation fee for each cubic yard of material removed shall be established by the Forest Supervisor and reviewed annually. The initial fee is established as $0.15 per cubic yard for all sources. Adjustments to this fee shall be made by letter from the Forest Supervisor to District Rangers, when appropriate.

IV. Administration.

a. Contributions to this fund shall be deposited into account number FS0703. The total amount paid into the fund will be entered on a separate line on the bill for collection in Block 13 of a regular bill for collection, with the account number above entered under "Management Code". The fees for the mineral material itself will be entered on another separate line using the regular account under management code "898609". The "Mineral Material Permit and Bill for Collection" forms will have the management codes pre-printed on the necessary separate lines.

b. Disbursements from the cooperative fund must be specifically authorized. The administration of the fund shall be coordinated by the Forest Supervisor's staff to insure a comprehensive and cohesive program to manage the mineral material resources of the forest. The form attached hereto as Exhibit 3A shall be used to request and approve the use of funds from this account. All charges against this fund shall be made to Management Code FS0703 (MIN MAT ADMIN). Appropriate records of disbursements and projects completed shall be maintained in the S.O.

(1) Authority to approve requests for use of these funds is vested in the Forest Supervisor or Natural Resources Team Leader.

c. The funds shall be used for exploration and development to replace the depleted resources and rehabilitate depleted pits.

EXHIBIT 3A

USDA - Forest Service

Superior National Forest

REQUEST FOR APPROVAL TO USE

RESOURCE RECOVERY/REHABILITATION FUNDS

District:________________________ Project Name:______________________

Estimated Cost: $________________ Type of Project: ___Exploration ___Rehab

The above amount is necessary to complete the project work.

___ The subject pit or use area has or will be depleted and/or this work is necessary to meet the requirements of the pit management/ development plan to rehabilitate a site used for the removal of mineral material. A site has been designated to replace the depleted resource area.

___ This is an emergency request to alleviate a safety or environmental concern.

___ This is an exploration/development project to replace a depleted resource area.

___ This is an exploration/development project to provide for replacement of an active pit or use area.

District Ranger

Approved:

Forest Supervisor or Natural Resources Team Leader

EXHIBIT 4

APPROVED FORMS FOR USE IN MINERAL MATERIALS MANAGEMENT

SF-299

Application for Transportation and Utility Systems and Facilities on Federal Lands (06/1999)

Modified as necessary to serve as a "MINERAL MATERIALS PROSPECTING

PERMIT - REF. FSM 2851, 36 CFR 228.60" (issued by S.O.);

or "MINERAL MATERIAL FREE USE PERMIT - REF FSM 2852,

36 CFR 228.62". (Used for Free Use Permits to public agencies)

FS-2800-9

CONTRACT FOR THE SALE OF MINERAL MATERIALS (for bonded operations)

SNF-2850-9 SHORT

CONTRACT FOR THE SALE OF MINERAL MATERIALS

(Shortened form – for unbonded operations –

print this form back to back and fill in with pen and ink)

FS-2800-5

PLAN OF OPERATIONS FOR MINING ACTIVITIES ON NATIONAL FOREST

SYSTEM LANDS (This form is optional and may be used as a guide;

in conjunction with Exhibit 2 of this supplement)

SNF-2850-S4 (REV. 7/02)

MINERAL MATERIAL FREE USE PERMIT

SNF-2850-S5

STANDARD STIPULATIONS FOR MINERAL MATERIAL SALES

(For contracts or permits of 1,000 cubic yards or less – District Ranger provides

Operating Plan)

SNF-2850-S5A

STANDARD STIPULATIONS FOR MINERAL MATERIAL SALES

(For contracts or permits of more than 1,000 cubic yards –

Purchaser or permit holder provides Operating Plan)

SNF-2850-S7

STANDARD STIPULATIONS FOR MINERAL MATERIAL PROSPECTING PERMIT

(Will be issued by the Forest Supervisor)

The use of any other form for mineral materials management purposes must be approved in advance. Authority to approve forms is delegated to the Natural Resources Team Leader or Public Service Team Leader.

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