Affordable Access to Small-Volume Non-competitive Mineral Materials: Tiered Sales Under 150 Tons, and Expanding Community Pit Program

This IM instructs all BLM State, District, and Field offices to implement the following procedures for small-volume non-competitive mineral materials sales outside of Community Pits on BLM lands that are open for mineral materials sales. Further, this IM instructs all BLM State, District, and Field offices to consider locations for creating additional Community Pits.

Section 1: Tiered Pricing Structure

This IM instructs all BLM State, District, and Field offices to implement the following tiered fee structure as an option for any person or entity who would like to purchase 150 tons or less of mineral materials per person or entity per calendar year from BLM-managed lands:

• Tier 1 (0–50 tons):
  A fee of $400 per transaction. This tier is intended for individuals or entities seeking small quantities of mineral materials, such as for personal use, small-scale construction, or community projects not covered by Free Use Permits.
• Tier 2 (51–150 tons):

A fee of $1,500 per transaction. This tier accommodates slightly larger needs, such as for local businesses, agricultural operations, or infrastructure maintenance.

The fees associated with these tiers ensure compliance with BLM’s regulation at 43 CFR § 3602.13(a), which requires that mineral materials be sold at “not less than fair market value.” 

This pricing structure is designed to reduce administrative burden, promote consistency across offices, and improve accessibility for public and commercial users of mineral materials from the public lands.

Section 2: Pricing Regulatory Authority

This pricing structure is established under:

43 CFR §§ 3601.6(b), 3602.13(a) (Sale of Mineral Materials at not less than Fair Market Value)

43 CFR §§ 3602.30–3602.34 (Non-competitive sales)

Materials Act of 1947, 30 U.S.C. § 601 (Requiring payment of “adequate compensation” for mineral materials)

Section 3: Fee Structure Justification

The two fee categories described in this IM will ensure that BLM receives “not less than fair market value” for small-volume sales of mineral materials, based on current valuations provided by BLM State, District, or Field offices that are associated with small-volume mineral material extraction. Community Pits are excluded from this small-volume two-tiered structure approach. If the current valuation provided by BLM State, District, or Field offices for a requested sale of mineral materials exceeds the fees listed in Section 1, the streamlined process outlined in this IM will not apply.

Section 4: Streamlined Administrative Requirements

This two-tiered approach for non-competitive small-volume mineral materials sales will significantly reduce administrative processing times and will improve efficiency and accessibility. These transactions are exempt from several standard procedures, allowing Field offices to process requests more quickly and with fewer resources. Specifically:

• No performance bond is required;
• No liability insurance naming the U.S. is required;
• No monthly production reports are required;
• No individual appraisals are required, unless the BLM State, District, or Field office has information that shows the current valuation exceeds the amounts provided for in this IM (the fee amounts described in this IM will otherwise ensure that the BLM will receive not less than Fair Market Value as established by Statewide or regional analysis);
• In administering small-volume mineral materials sales under this IM, the BLM will use Categorical Exclusion (CX) 516 11.9 F(10) “Disposal of Mineral Materials, such as Sand, Stone, Gravel, Pumice, Pumicite, Cinders, and Clay, in Amounts not to Exceed 50,000 Cubic Yards or Disturbing more than 5 Acres, Except in Riparian Areas” and CX 516 DM 14.5 D(9) “Issuance of Permits for Removal of Gravel and Sand by an Established Process for Existing Quarries,” unless a BLM State, District, or Field office identifies any extraordinary circumstances that warrants environmental analysis under the National Environmental Policy Act, as determined  by the Authorized Officer; and
• Contract execution is authorized at the Field office level. 

Section 5: Criteria for implementing this policy

The streamlined process outlined in this IM may be applied only when the following conditions are met:

• The small-volume sale of mineral materials is not from a Community Pit;
• The location of the sale is within an area open to mineral materials sale under the public land records and applicable Resource Management Plan;
• The volume is equal to or less than 150 tons per person or entity per calendar year;
• The material is identified as a mineral material, excluding petrified wood, under 43 CFR § 3601.5 (Petrified wood disposal is provided in 43 CFR § 3622);
• Additional analysis is not required (e.g., Endangered Species Act, National Historic Preservation Act);
• There are no extraordinary site conditions requiring further environmental review; and
• Surface disturbance will be reclaimed, as required by the Authorized Officer.

Section 6: Public Notification and Access

State, District, and Field offices are instructed to publicize the availability of streamlined small-volume mineral materials sales. The offices should use existing public media avenues, such as office websites, front desk information, etc.

Section 7: Expand Community Pit Opportunities

• In addition to the small-volume sale policy described above, State, District, and Field offices will manage the new Community Pit Mapping project to enhance information in that system (pdf flyers with Community Pit information), maintain updated website information on the map, and ensure public rooms are aware of the project and relay that information to the public.
• State, District, and Field offices will maintain current information on Community Pits so the information on the Community Pit Mapping project will reflect current values and conditions.
• States, District, and Field offices will track Nonexclusive Sales within the Mineral & Land Records System and Performance Management Data System, so that increase/decrease in sales can be modelled, as well as reported, in Public Land Statistics.
• State, District, and Field offices will identify opportunities for new Community Pit locations based on public need, discussions with local government officials, and geographic areas identified as lacking Community Pits. The BLM will consider geology and access when determining locations for new Community Pits.
• State, District, and Field offices will follow procedures to designate Community Pits found in H-3600-1 (Release 3-360) Handbook.