Updated Mineral Material Values

3600 (922Sokolosky) P
August 1, 2012
EMS TRANSMISSION: 8/8/2013
Instruction Memorandum No. WY-2012- 043
Expires 9/30/2013
To: District Managers
From: Deputy State Director, Division of Minerals and Lands
Subject: Updated Mineral Material Values
Program Area: Disposals of Mineral Materials
Purpose: This Instruction Memorandum (IM) provides information regarding updated unit values of
mineral materials within Wyoming, disposals through sale or permit of which are managed by the
Authorized Officials in the Field Offices.
Policy/Action: Mineral material values are to be reviewed and updated on a biennial basis.
The appropriate material unit value in Attachment 1 will, until replaced by another mineral material
appraisal, be applicable to (1) over-the-counter sales from community pits and common use areas,
(2) free use permits (so that the value provided to governmental entities and nonprofit organizations
can be reported to the annual public land statistics); (3) all nonrenewable contract sales for which the
total purchase price has yet to be paid; i.e., installment payments remain to be made and (4) cases of
mineral material trespass in accordance with guidance contained in the Mineral Material Trespass
Prevention and Abatement handbook H-9235-1. Authorized Officials (AO) may submit comparable
sales data that show any of the unit values in this IM should be higher for a particular geographic
area.
For nonrenewable contract sales the updated unit price shall be applied at the start of next calendar
month following the date of issuance of this IM. If a nonrenewable contract sale was authorized less
than 2 years ago or the last adjustment of value was less than 2 years ago, the updated unit price will
be applied at the start of the calendar month immediately following the second anniversary of the
sale or second anniversary following the date of the last adjustment.
The unit prices should be used to establish minimum bids for competitive sales unless there have
been substantive changes in the local market since the issuance of this IM. In such cases an appraisal
utilizing comparable sales data would be completed as part of the application process. The cost of
such would add to the case-by-case processing cost estimate. The AO should carefully consider
whether or not a unit price in this IM should apply to a contract sale that is undergoing renewal.
United States Department of the Interior
BUREAU OF LAND MANAGEMENT
Wyoming State Office
P.O. Box 1828
Cheyenne, Wyoming 82009-1828
IN REPLY REFER TO:
2
The change in appraised value will be indicated by the entry of Action Code 132 with $*.**;CY or
$*.**;TN in the action remark into LR2000-Case Recordation. A copy of this IM should be placed
into the mineral material case file for documentation purposes. For community pits, common use
areas and free use permits, the action date shall be the date of receipt by your office of this IM.
For nonrenewable contract sales which are not paid in full, the action code shall be entered on the
first calendar day of the month the new value will become applicable.
Background: In accordance with 43 CFR 3602.13 the BLM will not sell mineral materials at less
than fair market value and may periodically, usually on a 2 year basis, reappraise the value of mineral
materials. Washington Office Instruction Memorandum (IM) No. WO-2009-160, Mineral Materials
Appraisal Policy allows for the extension of existing appraisals using appropriate Producer Price
Index (PPI), published by the Bureau of Labor Statistics to adjust the estimate of the fair market
value. The guidance in this IM was extended by IM No. WO-2011-043, Extending Expiration Dates
of 2009 Instruction Memoranda.
A long form mineral material appraisal utilizing comparable sales data was completed in late
May 2010 and was transmitted to Field Offices via IM No. WY-2010-038 which was dated
July 22, 2010. The following table shows the PPI’s from May 2010 and May 2012 and the mineral
material products to which they are applied.
Series ID
WPU
Seasonally
Adjusted?
Group Item May 2012 PPI/
May 2010 PPI =
Multiplication factor applied to
132101 N Nonmetallic mineral
products
Construction sand, gravel and
crushed stone
273.7 / 162.1 =
1.044
Sand, gravel, aggregate, rip-rap,
boulders
13990211 N Nonmetallic mineral
products
Dimension stone 210.5 / 203.8 =
1.033
Moss rock, dimension stone
(flagstone), decorative rock
139903 N Nonmetallic mineral
products
Miscellaneous mineral
products
169.8 / 164.6 =
1.032
Borrow/fill, clinker
To adjust a 2010 unit prices to an approximate 2010 unit value using PPI’s the May 2012 PPI is
first divided by the May 2010 PPI with the result being rounded to three digits right of the
decimal point. The 2010 unit price is then multiplied by that figure as shown in Attachment
1 with the result being rounded to the closest penny.
If any purchaser is concerned that any of the reappraised values presented in this IM is in error,
that party is welcome to present comparable sales data for similar material sold from fee lands
that is the result of an arm’s length transaction. The mineral material appraisal handbook is
H-3630-1.
Timeframe: This IM is effective immediately
Budget Impact: Minimal
3
Contact: Pete Sokolosky at 307-775-6261, and by email at psokolos@blm.gov.
Distribution
Director (320), 20 M Street, SE 1 (w/atch.)
Field Managers 1 (w/atch.)
CF 2 (w/atch.)
1 Attachment
1 – Mineral material rate schedule – July 2012