Update of Mineral Material Prices

United States Department of the InteriorBUREAU OF LAND MANAGEMENTWyoming State OfficeP.O. Box 1828IN REPLY REFER TO: Cheyenne, Wyoming 82009-18283600 (922) PJuly 22, 2010EMS Transmission: July 23, 2010Instruction Memorandum No. WY-2010-038Expires 09/30/2011To: District ManagersFrom: Associate State DirectorSubject: Update of Mineral Material PricesThis Instruction Memorandum (IM) transmits updated prices to charge for mineral material salesin Wyoming, effective immediately. The prices apply to sales both on Bureau of LandManagement (BLM) surface and on split estate. Over the past several months, our contractappraiser, Bauer Mineral Appraisal, has surveyed mineral material producers and landowners inWyoming and prepared an appraisal of different construction materials and types of decorativestone. This IM supersedes the previous guidance from IM No. WY-2008-038, which was aninterim producer price index update of the last statewide appraisal for mineral materialscompleted in November 2004. Our Wyoming BLM policy has been to conduct a new statewideappraisal every 2 years, although the schedule has slipped in recent years.Attachment 1 lists the revised appraisal prices to charge, beginning today, for all production fromnew sales and from existing sales over 2 years old that do not have a site-specific appraisal.Please note that the appraised prices are based on comparable sales of pit run or processedmaterial leaving the property, not material in-place. Therefore, the prices in Attachment 1 are forloose cubic yards of material, or tons of material weighed over scales, leaving the sale contractarea, NOT bank cubic yards measured from the mined area. When a purchaser requests a certainamount of material, ensure that the contracted amount is for material leaving the property.Also, the appraised prices do not account for waste material left in the pit—only the processedmaterial leaving the site, unless pit run. For verification of production based on in-place surveysof pit dimensions, convert the in-place volume to loose cubic yards or weighed tons and apply awaste factor. The operator should be encouraged to sell as much waste material as possible, toreduce the amount left in the pit.If you have any questions, please contact Ed Heffern in the Branch of Solid Minerals, WyomingState Office, at 307-775-6259.Signed by: Authenticated by:Ruth Welch Pamela D. HernandezAssociate State Director Division of Support Services1 Attachment1 Mineral Material Royalty Rate Schedule July 2010 (2 pp)