Reclamation bond

The1rod

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Jan 18, 2018
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So I wanted to start a discussion about reclamation bonds, their factors and costs. So I'm gonna lay out a scenario and any feedback about other factors that may affect the bond amount, and any estimation of what it could cost would be very helpful.
So here's the scenario
A person wants to start a small/ mid scale placer operation, the claim is mostly flat with a creek running through one side. The mining plan is to strip the top soil and vegetation and run everything else down too bedrock at 12' . They will be using a small excavator to dig, and feed a trommel. Water will be pumped straight from the creek, the used water will flow into a settling pond and settle through the dirt back into the ground water. Tailings will be used to back fill as more ground is opened. Let's say at Max 20,000 yard of material will be moved in a year, equating to around an acre of surface area. And the vegetative coverage is mostly grasses and sage with a few small trees and no pocket gophers or anything else crazy and protected.
So what else is considered in a reclamation bond, and does anyone have an estimate?
 

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Goldwasher

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ghostminer

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My argument would be that any gravel deposits in a flood plane are previously disturbed & not to be factored in the 1000 cubic yards of disturbance. Of course the other factor which is quite laughable goes to the assumption that the FS minerals agent can calculate 1000 cubic yards of disturbance, especially when you are digging & filling trenches as you go. All a wild guess that can easily be challenged. It would be their burden of proof to show the actual amount of disturbance as they would have no idea as to the depth of a digging that was filled before they saw it. Was the trench 5 ft deep? Was it 20 ft deep?
 

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Assembler

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My argument would be that any gravel deposits in a flood plane are previously disturbed & not to be factored in the 1000 cubic yards of disturbance. Of course the other factor which is quite laughable goes to the assumption the the FS minerals agent can calculate 1000 cubic yards of disturbance, especially when you are digging & filling trenches as you go. All a wild guess that can easily be challenged. It would be their burden of proof to show the actual amount of disturbance as they would have no idea as to the depth of a digging that was filled before they saw it. Was the trench 5 ft deep? Was it 20 ft deep?
Has little to do with the "Mineral deposit" and a lot more to do with "Aliquot parts of a section". This is the surface lines "Conforming to the Rectangular survey system".
 

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Assembler

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Locatable Minerals Operations
A Proposed Rule by the Forest Service on 03/25/2008
https://www.federalregister.gov/documents/2008/03/25/E8-5746/locatable-minerals-operations
The Forest Service recognizes that prospectors and miners have a statutory right, not a mere privilege, under the Mining Law of May 10, 1872, the Surface Resources Act of 1955, 30 U.S.C. 611-615 (sometimes referred to as the Multiple Use Mining Act of 1955 or as Public Law 167), and the Organic Administration Act of 1897, to go upon certain National Forest System lands for the purposes of locatable mineral exploration, development, and production. The Forest Service may not unreasonably restrict the exercise of that right. Under the revised regulation, Forest Service administrators would at all times apply the test of reasonableness, in that the regulations and their administration cannot extend beyond what is needed to preserve and protect the National Forests from needless surface resource damage.
The term “reasonably incident” would be defined to clarify that, by law, mineral operators are restricted to using only reasonable methods of surface disturbance that are appropriate to their stage of operations regardless of the validity of any mining claim on which the operations take place. This clarification is warranted by case law (such as United States v. Richardson, 599 F. 2d 290 (1979); cert. denied, 444 U.S. 1014 (1980)) and the Surface Resources Act of 1955 (30 U.S.C. 612). Reasonable and necessary uses of the National Forest System lands must employ sound and accepted practices to avoid or minimize adverse environmental impacts. These uses also must employ sound, accepted operational methods appropriate for the applicable stage of mining operations, including prospecting, exploration, production (mining and processing), or Start Printed Page 15696reclamation. The Forest Service General Technical Report INT-35, Anatomy of a Mine, from Prospect to Production (section 10-7), describes and gives examples of the reasonable stages of a mining operation.
The term “reclamation bond” would be included to clarify that interest earning escrow accounts may be used to cover the costs of long-term reclamation measures.
The term “significant disturbance of surface resources” would be defined at § 228.3(n) of the proposed rule to provide general criteria for evaluating the significance of the disturbance of surface resources. However, as discussed in a portion of the June 6, 2005, Federal Register notice for the final rule amending 36 CFR 228.4(a) (70 FR 32713) quoted below, it is impossible to define this term definitively given the variability of National Forest System lands.
Disturbance by a particular type of operation on flat ground covered by sagebrush, for example, might not be considered significant. But that same sort of operation in a high alpine meadow or near a stream could cause highly significant surface resource disturbance. The determination of what is significant thus depends on a case-by-case evaluation of proposed operations and the kinds of lands and other surface resources involved. In general, operations using mechanized earthmoving equipment would be expected to cause significant disturbance. Pick and shovel operations normally would not. Nor would explosives used underground, unless caving to the surface could be expected. Use of explosives on the surface would generally be considered to cause significant disturbance. Almost without exception, road and trail construction and tree clearing operations would cause significant surface disturbance. The Department continues to believe that a universal definition of the term ‘significant disturbance’ cannot be established for NFS lands.
Nonetheless, locatable mineral operations that fall within the criteria set forth in proposed § 228.3(n) would be judged as likely to cause a significant disturbance of surface resources absent unusual circumstances. It also should be understood that an operation not meeting these criteria might nonetheless be likely to cause “significant disturbance of surface resources” given the nature of the lands and surface resources that would be affected by proposed operations.
An operator would be required to submit a notice of intent to operate before beginning operations that might cause significant disturbance of surface resources. Among the operations that would require a notice of intent to operate are those that would involve occupancy of National Forest System lands lasting longer than the local forest stay limit and those involving motorized use of closed roads. Submission of a notice of intent for occupancy exceeding the local forest stay limit would be required because such occupancy along with the related mining operations might cause significant disturbance of surface resources. Submission of a notice of intent for motorized use of closed roads similarly would be required because such use along with the related mining operations might cause significant disturbance of surface resources. The notice of intent to operate also would provide an efficient means of evaluating, and when reasonably necessary, regulating occupancy that would exceed local forest stay limits and motorized use of closed roads.
An operator would be required to have either a complete bonded notice then in effect or an approved plan of operations then in effect before beginning operations likely to cause significant disturbance of surface resources. The criteria for deciding which of these instruments the operator would be required to have would be based upon the duration and the extent of the likely significant disturbance of surface resources. The subset of proposed operations likely to cause significant disturbance of surface resources which the rule addresses by means of a complete bonded notice, rather than an approved plan of operations, are those that would neither so disturb more than 5 acres at any point in time nor last more than 2 years. This proposed rule requires an operator to have an approved plan of operations before beginning other operations likely to cause significant disturbance of surface resources which do not satisfy both of these criteria.
Definitions.
Operations. All functions, work, and activities in connection with prospecting, exploration, development, mining or processing of locatable mineral resources, reclamation and closure, and all uses reasonably incident thereto, including roads, other means of access and occupancy, on National Forest System lands subject to the regulations in this subpart, regardless of whether said operations take place within or outside the boundaries of a mining claim.
(g) Operator. A person conducting or proposing to conduct operations.
(h) Permanent structure. Structures fixed to the ground by any of the various types of foundations, slabs, piers, poles, and other means and structures placed on the ground that can only be moved through disassembly of the structure into its component parts or by techniques commonly used in moving houses. Tents and lean-tos are temporary, not permanent, structures.
(i) Person. Any individual, partnership, corporation, association, or other legal entity.
Significant disturbance of surface resources generally results from operations employing mechanized earth-moving equipment, truck-mounted drilling equipment, explosives or chemicals; requiring access road construction or reconstruction; requiring construction of buildings, impoundments and other support facilities; occurring within areas of National Forest System lands or waters known to contain Federally listed threatened or endangered species or their designated critical habitats; or occurring within areas of National Forest System lands withdrawn from the operation of the United States mining laws. Significant disturbance of surface resources also generally occurs when operations cause fire, health or safety hazards on National Forest System lands; preclude or restrict other uses of National Forest System surface resources; prevent or obstruct free passage or transit over National Forest System lands; involve residency, other than permitted camping, on National Forest System lands; injure or destroy any scientifically important paleontologic remains or any historical or archaeological structure, resource, or object; or necessitate closing National Forest System lands or facilities to users other than an operator or exempting an operator from closure of National Forest System lands or facilities to other users.
Beginning prospecting and sampling that will not cause significant disturbance of National Forest System surface resources and will not involve removal of more than a reasonable amount of a mineral deposit for analysis and study which generally might include searching for and occasionally removing small mineral samples or specimens, gold panning, metal detecting, non-motorized hand sluicing, using battery operated dry washers, and collecting mineral specimens using hand tools;
(iii) Marking and monumenting a mining claim;
(iv) Beginning underground operations that will not cause significant disturbance of National Forest System surface resources;

Locatable Minerals (Hardrock and Placer Mining)
https://www.blm.gov/programs/energy-and-minerals/mining-and-minerals/locatable-minerals
The Mining Law of 1872, as amended, is the major Federal law governing locatable minerals. This law allows U.S. citizens the opportunity to explore for, discover, and purchase certain valuable mineral deposits on Federal lands that are open for mining claim location (open to mineral entry).
These mineral deposits include most metallic mineral deposits and certain nonmetallic and industrial minerals. The law sets general standards and guidelines for claiming the possessory right to a valuable mineral deposit discovered during exploration.
The Mining Law allows for the enactment of state laws governing location and recording to mining claims and sites that are consistent with Federal law. The Federal regulations implementing the Mining Law, including fee schedules, are found at Title 43 of the Code of Federal Regulations (CFR) in Groups 3700 and 3800.
The Mining Law has five elements:
1. Discovery of a valuable mineral deposit;
2. Location of mining claims and sites;
3. Recordation of mining claims and sites;
4. Annual maintenance (annual assessment work or annual fees) for mining claims and sites, and
5. Mineral patents.
 

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Assembler

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Open, v. Black's Law D. 4th ed. p. 1241:
To render accessible, visible, or available; to submit or subject to examination,....by the removal of restrictions or impediments.
Open, adj. Patent: visible; apparent;.....not closed, settled, fixed, or terminated. page 1242.
 

KevinInColorado

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Your long post above is NOT law. It is merely regulation. The difference is substantial as regulations (especially those untested by circuit courts) may have no more strength behind them than any one person’s opinion.
 

Assembler

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"In Law" or "Administration".
Is the term "Locatable Minerals Operations" a "Administration agency" term?
 

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