BLM Financial Assurance (43 CFR 3809.500)
You must provide BLM a financial guarantee before beginning operations under an approved Notice or Plan. The bond amount must cover the estimated cost to contract a third party to reclaim your operations. The BLM Field Office will review your bond cost estimate and if acceptable, the BLM State Office will authorize and maintain the bond instrument.
If you provide evidence of an acceptable State approved financial guarantee under the New Mexico State Mining Act that covers the same operations, you will not be required to provide a separate financial guarantee.
The following forms of financial guarantees (bond instruments) are acceptable.
Surety bonds that meet the requirements of Treasury Department Circular 570, including surety bonds arranged or paid for by third parties. Use Form 3809-1.
You will need to complete Form 3809-2 if you use any of the following personal bonds:
Cash in an amount equal to the required dollar amount of the financial guarantee, to be deposited and maintained in a Federal depository account of the United States Treasury by Bureau of Land Management.
Irrevocable letters of credit from a bank or financial institution organized or authorized to transact business in the United States. Sample Letter of Credit
Certificates of deposit or savings accounts not in excess of the maximum insurable amount as set by the Federal Deposit Insurance Corporation.
Either of the following instruments having a market value of not less than the required dollar amount of the financial guarantee and maintained in a Securities Investors Protection Corporation insured trust account by a licensed securities brokerage firm for the benefit of the Secretary of the Interior, acting by and through BLM:
Negotiable United States Government, State and Municipal securities or bonds; or
Investment-grade rated securities having a Standard and Poor’s rating of AAA or AA or an equivalent rating from a nationally recognized securities rating service.
Insurance, if its form and function is such that the funding or enforceable pledges of funding are used to guarantee performance of regulatory obligations in the event of default on such obligations by the operator. Insurance must have an A.M. Best rating of “superior” or an equivalent rating from a nationally recognized insurance rating service.