Updated Mineral Materials Values
In Reply Refer To:
3600 (922Varhalmi) P
December 15, 2020
EMS TRANSMISSION: 12/16/20
Instruction Memorandum No. WY-2021-007
Expires 09/30/2024
To: District Managers
From: Deputy State Director, Division of Minerals & Lands
Subject: Updated Mineral Materials Values
Program Area: Disposal of Mineral Materials in Buffalo Field Office – Scoria/Clinker Resources
Purpose: This Instruction Memorandum (IM) modifies WY-IM-2020-010 (2020 IM) to be used by Authorized Officers (AO) in the Buffalo Field Office when disposing of, through sale or permit, scoria mineral materials located on Federal lands within Wyoming.
Administrative or Mission Related: Mission related
Policy/Action: This IM modifies the 2020 IM by adding a new unit value exclusively for scoria resources in the Buffalo Field Office (BFO/FO) for disposals covering three market areas. All other unit values and conditions from 2020 IM will, until replaced by another mineral material appraisal, remain applicable to their respective disposals.
Timeframe: This IM is effective immediately
Budget Impact: Minimal
Background: Pursuant to the 2020 IM, scoria operators in the BFO have exercised their right to provide data to support a new price for scoria resources within the jurisdictional area, as the unit values exceed what the market could bear for the aggregate resource.
The 2020 IM was based on a Division of Mineral Evaluation (DME) Report which evaluated five distinct mineral material products. This report lumped multiple resources under a generalized aggregate1 resource assessment and found ten distinct markets across the State.
In the BFO, the DME report resulted in the following two items:
- Four of the ten market areas can be found in the BFO.2
- Low-quality/value scoria was treated and priced at the same value as high-quality/value limestone or granitic resources. Most of the BFO sales/permits are for scoria not high-quality aggregates.
Operators provided FOB price data sheets for the last five years for review at the Wyoming State Office. All the sales/permits occur within three of the four markets therefore this IM only applies to the applicable markets. A review of the data provided, has shown a substantially lower value of what the market could bear than what DME’s report proposed for unit values within the BFO3.
Disposals of scoria aggregate resources in the BFO occurring in the Gillette, Sheridan and Rural markets will have a base unit value of $0.70/tn and $0.75/cy.
Manual/Handbook Sections Affected: None
Contact: If you have questions, please contact George Varhalmi at 307-775-6273, and by email at gvarhalm@blm.gov.
Signed by: Authenticated by:
Timothy Wilson Jessica Camargo
Acting, Deputy State Director State Director’s Office
Minerals & Lands
Attachment:
1 – Mineral material rate schedule – December 2020 Update (2 p)
Distribution
Field Managers 1 (w/atch)
Chief Branch of Solids 1 (w/atch)
CF 2 (w/atch)
1 Aggregates comprise of the following: sand, gravel, crushed stone, borrow/fill, and topsoil. Crushed stone is further broken down to include railroad ballast, scoria, and riprap.
2 Markets present in the BFO: Casper, Gillette, Rural and Sheridan. There are no sales out of the Casper market and is dropped from further consideration.
3 DME concurred with the findings of the mineral evaluation report developed by the BLM Wyoming State Office, Branch of Solid Minerals Geologist on December 8, 2020.