Update of Mineral Material Prices

United States Department of the Interior
BUREAU OF LAND MANAGEMENT
Wyoming State Office
P.O. Box 1828
IN REPLY REFER TO: Cheyenne, Wyoming 82009-1828
3600 (922) P

July 22, 2010
EMS Transmission: July 23, 2010
Instruction Memorandum No. WY-2010-038
Expires 09/30/2011

To: District Managers
From: Associate State Director
Subject: Update of Mineral Material Prices

This Instruction Memorandum (IM) transmits updated prices to charge for mineral material sales
in Wyoming, effective immediately. The prices apply to sales both on Bureau of Land
Management (BLM) surface and on split estate. Over the past several months, our contract
appraiser, Bauer Mineral Appraisal, has surveyed mineral material producers and landowners in
Wyoming and prepared an appraisal of different construction materials and types of decorative
stone. This IM supersedes the previous guidance from IM No. WY-2008-038, which was an
interim producer price index update of the last statewide appraisal for mineral materials
completed in November 2004. Our Wyoming BLM policy has been to conduct a new statewide
appraisal every 2 years, although the schedule has slipped in recent years.

Attachment 1 lists the revised appraisal prices to charge, beginning today, for all production from
new sales and from existing sales over 2 years old that do not have a site-specific appraisal.
Please note that the appraised prices are based on comparable sales of pit run or processed
material leaving the property, not material in-place. Therefore, the prices in Attachment 1 are for
loose cubic yards of material, or tons of material weighed over scales, leaving the sale contract
area, NOT bank cubic yards measured from the mined area. When a purchaser requests a certain
amount of material, ensure that the contracted amount is for material leaving the property.

Also, the appraised prices do not account for waste material left in the pit—only the processed
material leaving the site, unless pit run. For verification of production based on in-place surveys
of pit dimensions, convert the in-place volume to loose cubic yards or weighed tons and apply a
waste factor. The operator should be encouraged to sell as much waste material as possible, to
reduce the amount left in the pit.

If you have any questions, please contact Ed Heffern in the Branch of Solid Minerals, Wyoming
State Office, at 307-775-6259.

Signed by: Authenticated by:
Ruth Welch Pamela D. Hernandez
Associate State Director Division of Support Services
1 Attachment
1 Mineral Material Royalty Rate Schedule July 2010 (2 pp)