Form 3600-9 (April 2002) UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT CONTRACT FOR THE SALE OF MINERAL MATERIALS FORM APPROVED OMB No. 1004-O103 Expires: March 31, 2008 Office: NV-050 Contract Number: N-83168
Exhibit 10.17
Form 3600-9 (April 2002) |
UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT CONTRACT FOR THE SALE OF MINERAL MATERIALS |
FORM APPROVED OMB No. 1004-O103 Expires: March 31, 2008 Office: NV-050 Contract Number: N-83168 |
The United States of America, acting through the Bureau of Land Management (BLM) and you, the
purchaser, make this AGREEMENT, under the authority of the Act of July 31. 1947. 61 Stat. 681, as
amended at 30 U.S.C. 601 through 604, and the regulations at 43 CFR Group 3600.
Ready Mix, Inc 0000 Xxxx Xxxxxxxx Xxxxx 000 Xxx Xxxxx, XX 00000 |
We agree: Sec. 1. Contract area. Under the terms and conditions of this contract, the United States
sells to you and you buy the mineral materials listed in section 2 and contained in the following
lands as shown on the map and mining plan attached to this contract:
County | State | Township | Range | Section | Aliquot Parts | Meridian | Acreage | |||||||||||
Xxxxx [X]
|
Nevada | T. 17 S. | R. 58 E. | 9 | NE1/4SE1/4 | MD | 40 | |||||||||||
Xxx [ ] |
Sec. 2. Amount and price of materials. The United States determines the total purchase price by
multiplying the total quantity of each kind of material designated by the unit price given below,
or as changed through reappraisal.
QUANTITY | PRICE | |||||||||||
KIND OF MATERIALS | (Units Specified) | PER UNIT | TOTAL PRICE | |||||||||
Sand & Gravel |
200,000 cubic yards | $ | 1.08 | $ | 216,000.00 | |||||||
Reclamation/Maintenance Fee |
200,000 cubic yards | $ | 0.01 | $ | 2,000.00 | |||||||
TOTAL |
200,000 cubic yards | $ | 1.09 | $ | 218,000.00 |
BLM’s
determination of the amount of materials that you have taken under the contract is binding on
you. You may appeal this determination as provided in section 19. You are liable for the
total purchase price, even if the quantity of materials you ultimately extract is less than the
amount shown above. You may not mine more than the quantity of
materials shown in the contract.
Sec.
3. Payments, title, and reappraisals. You may not extract the materials until you have either
paid in advance for them in full $218,000.00, or paid the first installment of $1 0,900.00. [ ] If
you pay in advance, BLM will check this box and subsections 3(a) through 3(c) do not apply to your
contract. You must pay in fall for all sales of $2,000 or less.
(a) If you pay in installments, you must pay the first installment before BLM approves the
contract.
(b) Once you start removing material, you must pay each subsequent installment payment monthly in
an amount equal to the value of materials removed in the previous month. Payment must be made by
the 15th day following the end of the month for which you are reporting. You must pay
the total purchase price not later than 60 days before the contract expires.
(c) The United States will retain the first installment as security for your full and faithful
performance and will apply it to the last installment required to make the total payment equal to
the total price given in section 2. The total purchase price equals the sum of the total quantities
removed, multiplied by their respective unit prices. If you are late making an installment
payment, you must not remove any more material until you have paid. Removing material you have not
paid for is trespass, and for trespass you must pay at triple the appraised unit price, or at
triple the reappraised unit price if BLM has made a reappraisal. To resume removal operations after
you were late making payments, you must obtain BLM’s written approval.
(d) You receive title to the mineral materials only after you have paid for them and extracted
them.
Sec.
4. Risk of loss. You assume complete risk of loss for all materials to which you have title.
If material covered by this contract is damaged or destroyed before title passes, you are liable
for all loss suffered if you or your agents are directly or indirectly responsible for the damages.
If you are not responsible for the damage or destruction, you are liable only to the extent that
the loss was caused by your failure to remove the material under the terms of this contract. You
are still liable for breach of contract or any wrongful or negligent act.
Sec.
5. Liability for damages to materials not sold to you. You
are liable for loss or damage to
materials not sold to you if you or your
agents are directly or indirectly responsible for the damage or loss. You are also liable if you
fail to perform under the contract according to XXX’s instructions and the United States incurs
costs resulting from your breach of any contract term or your failure to use proper conservation
practices. If the damage resulted from willful or gross negligence, you are liable for triple the
appraised value of the damaged or destroyed materials. If the damage or destruction did not result
from willful or gross negligence, you are liable for lesser charges, but not less than the
appraised value of the materials.
Sec. 6.
Stipulations and reserved terms. Your rights are subject to the regulations at 43 CFR Group
3600 and to any stipulations and the mining plan attached to this contract. [ X ] BLM will check
this box if there are stipulations attached to this contract.
Sec. 7.
Notice of operations. You must notify BLM immediately when you begin and end operations
under this contract. If BLM has specified a time frame for notification, you must comply with that
time frame.
Sec.
8. Bonds. (a) You must furnish BLM with a bond in the amount of $71,600.00 as a condition of
issuing this contract.
(b) If you do not perform all terms of the contract, BLM will deduct an amount equal to the damages
from the face amount of the bond. If the damages exceed the amount of the bond, you are liable for
the excess. BLM will cancel the bond or return the cash or U.S. bonds you supplied when you have
completed performance under this contract.
(c) BLM will require a new bond when it finds any bond you furnish under this contract to be
unsatisfactory.
Sec.
9. Assignments. You may not assign this contract without BLM’s written approval.
Sec.
10. Modification of the Approved Mining or Reclamation Plan. You or BLM may initiate
modification of these plans to adjust for changed conditions, or to correct any oversight. The
conditions for BLM requiring you to modify these plans, or approving your request for modification
are found in the regulations at 43 CFR 3601-44.
Sec. 11. Expiration of contract. This contract will expire one year, —months, — days from its
approval date, unless BLM extends the term or renews the contract. [ ] BLM will check this box if
this contract is a renewable competitive contract.
Sec. 12. Renewal of renewable competitive contract. BLM will renew your contract if you apply in
writing no less than 90 days before your renewable competitive contract expires and you meet the
conditions in the regulations at 43 CFR 3602.47.
Sec. 13. Violations: and cancellations.(a) If you violate any terms or provisions of this
contract, BLM may cancel your contract, following the regulations at 43 CFR 3601.60 et seq, and
recover all damages suffered by the United Stales, including applying any advance payments you made
under this contract toward the payment of the damages.
(b) If you extract any mineral materials sold under this contract after the contract has expired or
been cancelled, you have committed, and may be charged with, willful trespass.
Sec. 14. Responsibility for damages suffered or costs incurred by the United States. If you, your
contractors, subcontractors or employees breach this contract or commit any wrongful or negligent
act, you are liable for any resulting damages suffered or costs incurred by the United States. You
must pay the United States within 30 days after receiving a written demand from BLM.
Sec. 15. Extensions of time. BLM may grant you an extension of time in which to comply with
contact provisions under the regulations at 43 CFR 3602.27. For contracts with terms over 90
days, you must apply in writing no less than 30 or more than 90 days before your contract expires.
For contracts with terms of 90 days or less you must apply no later than 15 days before your
contract expires.
Sec. 16. Time for removing personal property. You have 90 days (not to exceed 90) from the date
this contract expires to remove your equipment, improvements, and other personal property from
United States lands or rights-of-way. You may leave in place improvements such as roads, culverts,
and bridges if BLM consents. Any property remaining after this period ends becomes the property of
the United Slates, but you will remain liable for the cost of removing it and restoring the site.
Sec.
17. Equal opportunity clause. The actions you take in
hiring must comply with the provisions
of Executive Order No. 11246 of September 24, 1965. as amended, which describe the
non-discrimination clauses. You may bet a copy of this order from BLM.
Sec-
18. Effective date. This contract becomes effective as
indicated below. [ ] If this contract
becomes effective on the date BLM signs the contract, BLM will check this box.
[ X ] If this contract becomes effective only after certain conditions are met, BLM will check
this box, list the conditions below, and indicate the effective date.
Sec. 19. Appeal. You may appeal any decision that BLM makes in regard to this contract under parts
4 and 1840 of Title 43 of the Code of Federal Regulations.
The following parties have executed this contract as of:
PURCHASER
|
UNITED STATES OF AMERICA | |||||
(Individual or Firm Name)
|
(Authorized Officer) | |||||
0000 Xxxx Xxxxxxxx, Xxxxx 000, Xxx Xxxxx, XX 00000 |
||||||
(Address)
|
(Title) | |||||
(000) 000-0000 |
||||||
(Phone
Number)
|
||||||
5-24-07 | ||||||
(Date) | ||||||
(Signature) |
||||||
If
you are a corporation, affix corporate seal here.
|
Effective date of contract is April 28, 2007 |
Title 18 U.S.C. Section 1001. makes it a crime for any person knowingly or willfully to make
to any department or agency of the United States any false, fictitious or fraudulent statements or
representations as to any matter within its jurisdiction, subject to a fine of up to $10,000 and
imprisonment up to 5 years.
NOTICE
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) requires us to inform you that: BLM is
collecting this information to process your application and effect a binding contract. BLM will use
this information to identify and communicate with applicants. You must respond to this request to
get a benefit. A federal agency may not conduct or sponsor, and you are not required to respond
to, an information collection which does not have a currently valid OMB control number.
Authority: 30 U.S.C. 601 et seq.; 43 CFR 3600
Principal Purpose: BLM uses this information to identify the parties entering into contracts for
disposing of mineral materials.
Routine Uses: BLM will transfer this information from the record or the record itself to
appropriate federal, state, local, or foreign agencies, when relevant to criminal, civil, or
regulatory investigations or prosecutions.
Effect Of
Not Providing Information: If you do not provide this information to BLM, we will not be
able to process your application for a contract.
BLM
estimates the public reporting burden for this form at an average of 30 minutes per response,
including the time for reviewing instructions, gathering and maintaining data, and completing and
reviewing the form. Direct comments regarding the burden estimate or any other aspect of this form
to U.S. Department of the interior, Bureau of Land Management, Bureau Clearance Officer,
(1004-0103), 0000 X Xx., XX., Mail Ston 400 IS Washington D.C.,
[ILLEGIBLE]
12. Backhauling of any materials and/or debris into any community pit is not allowed. The
backhauling of materials and/or debris into a community pit by the Purchaser, his contractors,
subcontractors, or their employees will be cause for the Authorized Officer to immediately order
the suspension and/or cancellation of all operations of the Purchaser under all contracts held
within the Las Vegas District and issue a Notice of Trespass. Purchaser will be liable for all
costs of removal of the backhaul materials.
13. Machinery will be kept on the pit floor to the extent possible. All stockpiles and waste rock
piles will be kept at as low an angle to the horizon as possible to reduce visual impacts. No
unnecessary equipment or vehicles will be kept on site. Except for stockpiles of processed
material, the pit floor will be kept reasonably level and uniform during the term of the contract.
14. When antiquities or other cultural objects of historic or scientific interest, including, but
not limited to, historic or prehistoric ruins, human remains, artifacts or vertebrate fossils, are
discovered during the mining operation, all operations will cease immediately. The cultural items
will be left intact and immediately brought to the attention of the Authorized Officer in order
that the cultural resource can be inspected, documented and/or salvaged.
15. Asphalt hot plants, concrete batch plants, materials recycling plants and water xxxxx are not
allowed within any community pit unless approval is granted in writing by the Authorized Officer.
All other types of plants not specifically for the sole purpose of mining, crushing and/or loading
mineral materials are not allowed.
16. Night watchmen, mobile homes, recreational vehicles, non-operational vehicles, storage areas,
repair areas, salvage areas, and all other persons, animals, materials and/or equipment not
directly related to the mining, processing, and/or hauling of mineral materials are not allowed
within any community pit unless approval is granted in writing by the
Authorized Officer.
17. All
mining, processing, hauling, and storage activities shall be confined to the minimum area
necessary. This area shall be delineated by the Authorized Officer and will not exceed ten (10)
square feet per cubic yard of material purchased with the exception that all Purchasers will be
allowed a minimum area of 10,000 square feet. Purchaser shall clearly mark the exterior boundaries
of the activity area prior to the commencement of any surface disturbing activities. All
activities, directly or indirectly associated with this contract, must be conducted within the
boundaries of this area.
18. Purchaser must display a permanent identification sign in the activity area showing the
Purchaser’s name,
address, and telephone number. Each Permittee is required to possess and display at the disposal
site a current copy of the Mineral Material Sale Contract issued by this office.
19. Purchaser will furnish this office with a monthly report of mineral materials removed under
this contract (see Attachment “B”). These copies must be furnished monthly and must be itemized,
including operator name and volume of materials, all sales on site to other sand and gravel
operators. They are due in this office (Las Vegas District Office) not later than the 10th of each
month, or the first business day thereafter if the 10th falls on a weekend or holiday. The
Authorized Officer may also require the Purchaser to submit certified copies of its community pit
mining records showing the names, addresses, and telephone numbers of buyers, quantities of
materials sold, and dates of deliveries. Submission of erroneous records will constitute grounds
for the suspension and/or cancellation of this contract and the suspension of sales of mineral
materials contracts for up to one year. This office may also refuse to issue any future contracts
without an adequate performance bond. If contract length is less than thirty (30) days then
Attachment “B” must be submitted within five (5) days of the contract expiration date. A new
contract will not be issued without all required submissions of Attachment “B”. Attachment “B” must
be signed and dated upon completion of the form.
20. Permittee’s who have purchased or anticipate an annual production volume greater than 15,000
cubic yards of material, will be required to provide the BLM with a pre- disposal and post-disposal
survey of the site. Any person or company suspected of unauthorized removal of material exceeding
15,000 c.y. will also be required to provide a survey. The survey may be either an aerial or land
survey. If a land survey is performed, it must be completed by a surveyor registered in the State
of Nevada. If the operator refuses to conduct a survey, the Authorized will suspend sales for a
thirty (30) day period, and the BLM will conduct a survey. The resulting costs will be billed to
the operator as an administrative cost, which must be paid prior to continued sales. Any trespass
established by a BLM survey, in such cases, will be considered willful. The operator will be
charged willful damages and sales will be terminated.
N-83168 04/28/07
General Stipulations
General Stipulations
1. “Purchaser” means any person, corporation, partnership, association, Federal agency,
State agency, local agency, municipality, or other entity that has been issued a community pit
purchaser identification number (CPPIN) by the Las Vegas District Office. Customers may obtain
contracts and/or free use permits under any name they choose. However, related business ventures
will be required to utilize the same CPPIN and will not be viewed as separate Purchasers.
2. “Authorized Officer” means the Las Vegas District Manager or his duly appointed representative.
3. Purchaser will conform to all Federal. State of Nevada, County, and Local laws, ordinances
and regulations. Purchaser will acquire all permits, variances, easements, etc. required to
operate within the pit. All operators will be required to obtain an OPERATING PERMIT with
CONDITIONS for a NON-MAJOR VARIOUS LOCATION NON-METALLIC MINERAL PROCESSING FACILITY from the Xxxxx
County Health District, prior to any surface disturbing activities. The operators will carry out
any monitoring requirements and pay any off-set fees imposed by the permit. Purchaser will provide
copies of permits, variances, etc. to the Authorized Officer upon
request. Failure to conform to all
laws, ordinances and regulations or to acquire all required permits, variances and easements will
result in the suspension of this contract for a period deemed appropriate by the Authorized
Officer.
4. Firearms may not be possessed within the boundaries of any community pit, either openly or under
concealment, except by an officer, agent or employee of the United States, a State, or a political
subdivision thereof, who is authorized by law to engage in law enforcement activities. Possession
or use of a firearm within a community pit will result in the revocation or cancellation of this
contract. Future sales may also be denied.
5. Purchaser shall notify the Authorized Officer within one (1} working day of: movement of
equipment into the pit, commencement of operations, termination of operations, and removal of
equipment from the pit.
6. As provided by 43 USC 1732. Sec. 302, the Authorized Officer may order an immediate temporary
suspension of this contract prior to a hearing or final administrative finding if he determines
that such a suspension is necessary to protect health, safety or the environment. Where other
applicable law (i.e. MSHA, NDOSHE) contains specific provisions for suspension, revocation or
cancellation the provisions of such law shall prevail.
7. If the Purchaser violates any provisions of this contract, the Authorized Officer through
written notice, has the
option of refusing to issue any additional material contracts to the Purchaser; or suspending
further operations of Purchaser under this contract, except operations necessary to remedy any
violations. If purchaser fails to remedy all violations within thirty (30) days after receipt of a
suspension notice, the Authorized Officer may, by written notice, cancel the existing contract and
take appropriate action to recover all damages suffered by the Government from the violations,
including application of any advance payments or performance bonds toward payment of damages.
8. Extraction, under this contract, means materials which have been processed to a final product
and stockpiled for removal. Materials stockpiled in this manner become the personal property of the
permittee only after they have been paid for.
9. The Purchaser shall be liable for any damages, cost or expense incurred by the Government
arising out of operations under this contract whenever damage, cost or expense results from breach
of contract or wrongful or negligent act of Purchaser, his contractors, subcontractors, or their
employees. The Purchaser
shall pay the Government for the damage, cost or expense within thirty (30) days of a written
demand by the Authorized Officer. Failure to make payment within this period will result in the
suspension of all sales to the Purchaser until payment is received.
10. Upon contract termination. Purchaser will remove or dispose of all waste, which has accumulated
in the contract area as a result of the mining operation, to a public sanitary landfill or other
proper disposal area. The term “waste”, as used herein, includes, but is not limited to, garbage,
human waste, trash, petroleum products and equipment. The purchaser shall have the right within
thirty (30) days after expiration of the time for extraction and removal of minerals, if not in
default, to remove his/her equipment, improvements, or other personal property from Government
lands or rights-of-way. Any improvements such as road surfacing, culverts and bridges which have
become a permanent part of a Government road shall not be removed. Equipment, improvements or other
personal property, including stockpiled materials as described in Stipulation #8, above, remaining
on Government lands and rights-of-way at the end of the thirty (30) day removal period shall become
the property of the Government.
11. Purchaser will avoid disturbing or removal of section corners, bench marks, monuments, or other
survey markers. Where excavation or road building may require removal or relocation of these items,
the Authorized Officer will be contacted thirty (30) days prior to removal or relocation for
special instructions.
21. If a tortoise is in imminent danger with immediate death or injury likely (such as from an
approaching vehicle or equipment), and the tortoise has been given the opportunity to move but has
withdrawn in its shell and is not moving, onsite personnel may capture the tortoise and place it in
a clean, unused cardboard box or similar container. Xxxxx County’s tortoise pick-up service will be
notified immediately (593-9027). The contained tortoise will be held in the shade or temperature
controlled environment until removed by the pick-up service.
22. Prior to starting operations each day, the permittee will make an inspection of the operating
area. This inspection is to determine if any desert tortoises are present.
23.
Vertical cuts of three (3) feet or greater will be graded to a horizontal to vertical slope
ratio of three to one (3 to 1) upon termination of the mining operation.
24. Migratory birds- The proponent must comply with the Migratory Bird Treaty Act and avoid
potential impacts to protected birds within the project area. The following measures describe the
most effective measures to avoid impacts:
a) To prevent undue harm, habitat-altering projects or portions of projects should be scheduled
outside bird breeding season. In upland desert habitats and ephemeral washes containing upland
species, the season generally occurs between March 15th — July 30th. In riparian and higher
elevation areas, breeding season generally occurs between March
1st–August 30th.
b) If a project that may alter any breeding habitat has to occur during the breeding season, then a
qualified biologist must survey the area for nests prior to commencement of construction
activities. This shall include burrowing and ground nesting species in addition to those nesting in
vegetation. If any active nests (containing eggs or young) are found, an appropriately-sized buffer
area must be avoided until the young birds fledge.
25. An encounter with a Gila Monster during operational activities require adherence to the
following protocols.
a) Any encounters during project construction must be reported immediately to the Nevada Division
of Wildlife at (000) 000-0000.
b) Live Gila monsters found in xxxxx way on the construction site will be captured and detained in
a cool, shaded environment (£85 degrees F) by the project biologist trained in handling venomous
reptiles until a NDOW biologist can arrive for documentation purposes. A
clean 5-gallon plastic bucket w/ a secure, ventilated lid; an 18”x 18”x 4” plastic sweater box w/ a
secure, vented lid; or, a tape-sealed cardboard box of similar dimension may be used for safe
containment. Written information identifying mapped capture location, date, time, and circumstances
(e.g. biological survey or construction) and habitat description (vegetation, slope, aspect,
substrate) will also be provided to NDOW.
c) Injuries to Gila monsters may occur during excavation, road-grading, or other construction
activities. In the event a Gila monster is injured, it should be transferred to a veterinarian
proficient in reptile medicine for evaluation of appropriate treatment. Rehabilitation or
euthanasia expenses will not be covered by NDOW. However, NDOW will be immediately notified during
normal business hours. If an animal is killed or found dead, the carcass will be immediately frozen
and transferred to NDOW with a complete written description of situation circumstances, habitat,
and mapped location.
d) Should NDOW be delayed to assist, biological personnel on site may be requested to remove and
release the Gila monster out of xxxxx way. Should NDOW not be immediately available to respond for
photo-documentation, a 35mm camera will be used to take good quality photographs of the Gila
monster in situ at the location of live encounter or dead salvage. The pictures, preferably
on slide film, will be provided to NDOW and will include:
1. Encounter location (landscape overview with Gila
monster in clear view)
2. A clear overhead shot of the entire body with a ruler next
to it for scale (Gila monster should fill camera’s
field of view)
3. A clear, overhead close-up of the head (head should fill camera’s field of view).
26. Noxious Weeds –
1. The operator/permittee shall be responsible for controlling all undesirable invading plant
species (including listed noxious weeds and other invasive plants identified as undesirable by
federal, state or local authorities) within the boundaries of their authorization area and Bureau-
authorized ancillary facilities (e.g. access and utility corridors), including all operating and
reclaimed areas, until revegetation activities have been deemed successful and responsibility
released by the authorized officer. Control standards and measures proposed must conform to
applicable state and federal regulations.
2. The operator shall use weed free seed for reclamation and for other organic products for erosion
control, stabilization, or revegetation (e.g. straw xxxxx, organic mulch) must be certified weed
free. According to Nevada law (NRS 587.111), “all seed shipped to or sold within Nevada is to be
free of noxious weed seeds”.
3. Prior to any application of herbicide on public lands the operator shall have a current
Pesticide Use Permit that outlines application methods, rates, weather constraints and the specific
dates of applications. Stipulation 3 — The project proponent will coordinate project activities
with the BLM Weed Coordinator (702-515-5000) regarding any proposed herbicide treatment. The
project proponent will prepare, submit, obtain and maintain a pesticide use proposal (PUP) for the
proposed action. Weed treatments may include the use of herbicides, and only those herbicides
approved for use on Public lands by the BLM.
4. The operator/permittee is responsible for ensuring that all project related vehicles and
equipment arriving at the site (including, but not limited to, drill rigs, dozers, support
vehicles, pickups and passenger vehicles, including those of the operator, any contractor or
subcontractor and invited visitors) do not transport noxious weeds onto the project site. The
operator shall ensure that all such vehicles and equipment that will be traveling off constructed
and maintained roads or parking areas within the project area have been power washed, including the
undercarriage, since their last off road use and prior to off road use on the project. When
beginning off road use on the project, such vehicles and equipment shall not harbor soil, mud or
plant parts from another locale. Depending on the site setting such as remoteness, or other site
condition, the operator may be required to have an on-site wash area identified and readily
available. If a noxious weed infestation is known or later discovered on the project site, project
related vehicles or equipment that have traveled through such an infestation shall be power washed
including the undercarriage prior to leaving the site, at an established, identified wash area.
Wash water and sediment shall be
contained in an adjacent settling basin. Should any vegetation emerge in the wash area or settling
basin, it will be promptly identified and appropriately controlled if found to be an undesirable
invasive plant.
5. Should undesirable invasive plants become established on developed areas prior to reclamation
reshaping; appropriate measures will be taken to ensure that the invasive plants are eradicated
prior to reclamation earthwork. Should undesirable invasive plants become established on reshaped
areas prior to reclamation seeding; appropriate measures will be taken to ensure that invasive
plants are eradicated prior to seeding the site.