Mineral Materials Valuation Policy

IM 2016-011
Instruction Memorandum

UNITED STATES DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT
WASHINGTON, D.C. 20240-0036
http://www.blm.gov
October 30, 2015

In Reply Refer To: 
3630 (320) P

EMS TRANSMISSION 11/04/2015

Instruction Memorandum No. 2016-011

Expires:  09/30/2019

To:                   All Field Office Officials

From:               Assistant Director, Energy, Minerals and Realty Management

Subject:           Mineral Materials Valuation Policy

Program Area:  Mineral Materials.

Purpose:  This Instruction Memorandum (IM) issues policy and guidance for preparing valuations for mineral materials and use of the Producer Price Index to extend the applicable time period for valuations.

Policy/Action:  Valuations for disposals of mineral materials from public lands are a high priority of the Bureau of Land Management (BLM). The BLM's goal is to determine values of mineral materials to ensure proper compensation to the Federal Government in an efficient manner that controls costs. The methods and frequency for valuations are provided in Attachment 1.

Timeframe:  Effective immediately.

Budget Impact:  Implementation of this IM is to be performed within existing budget allocations, because existing policy requires use of current fair market value for sales, valuations are already factored into budget allocations. The impact of this IM is expected to reduce the workload, reduce expenditures, and enable more timely pricing updates.

Background: This IM provides the BLM’s nationwide policy on valuations for the mineral materials program previously covered by expired IM 2009-160, Minerals Appraisal Policy. The Materials Act requires that mineral materials may be disposed of only upon payment of adequate compensation, as determined by the Secretary.  The BLM’s current implementing regulations under 43 CFR 3602.13(a) state that the BLM will not sell mineral materials at less than fair market value, which the BLM determines by appraisal.   The BLM intends to propose an amendment to its regulations to allow for the use of various valuation methods.

The Office of Inspector General (OIG) Final Audit Report- Bureau of Land Management's Mineral Materials Program Report No. C-IN-BLM-0002-2012, Recommendation Nos. 8 and 9, advised BLM to ensure that field offices adjust prices in existing mineral materials contracts as authorized by Federal regulations and required by BLM policy, and identify priorities for performing valuations and revaluations.  This memorandum provides policy that addresses OIG Recommendation Nos. 8 and 9 to ensure that field offices timely adjust prices in existing mineral materials contracts and develop rankings of valuation reports that need to be valued and revalued.  This memorandum also addresses an issue related to OIG Recommendation No. 10 that was not mentioned by the OIG —the use of cost recovery fees for performing valuations and their influence on priorities.

Manual/Handbook Sections Affected:  The BLM will incorporate this interim policy into Manuals 3600 and 3630 and Handbooks 3600-1 and 3630-1 during the next revision.

Coordination:  The Division of Solid Minerals (WO-320) coordinated development of this IM with the BLM Washington Office, state offices, the National Training Center, and the Department of the Interior, Office of the Solicitor.

Contact:  If you have any questions concerning the content of this IM, please contact me at 202‑208-4201, or your staff may contact Mitchell Leverette, Division Chief, Solid Minerals, at 202-912-7113, or George Brown, Geologist, Solid Minerals, WO-320, at 202-912-7118 or g1brown@blm.gov.

Signed by:                                                                   Authenticated by:

Michael Nedd                                                             Robert M. Williams
Assistant Director                                                       Division of IRM Governance,WO-860
Energy, Minerals and Realty Management

1 Attachment

     1 - Policy for Mineral Materials Valuations (2 pp)

Fiscal Year

2016