Updated Mineral Materials Values

United States Department of the Interior
BUREAU OF LAND MANAGEMENT
Wyoming State Office
P.O. Box 1828
Cheyenne, Wyoming 82009-1828
IN REPLY REFER TO:
3600 (922Varhalmi) P
January 8, 2015
EMS TRANSMISSION: 1/12/2015
Instruction Memorandum No. WY-2015-19
Expires 09/30/2016
To: District Managers
From: Acting Deputy State Director, Division of Minerals and Lands
Subject: Updated Mineral Materials Values
Program Area: Disposal of Mineral Materials
Purpose: This Instruction Memorandum (IM) updates unit values to be used by Authorized
Officials (AO) in the Field Offices when disposing of, through sale or permit, mineral materials
located on Federal lands within Wyoming.
Policy/Action: Mineral material values are to be reviewed and updated on a biennial basis.
The appropriate material unit value in Attachment 1 will, until replaced by another mineral
material appraisal, be applicable to (1) over-the-counter sales from community pits and common
use areas, (2) free use permits (so that the value provided to governmental entities and nonprofit
organizations can be reported to the annual public land statistics), (3) all nonrenewable contract
sales for which the total purchase price has yet to be paid (i.e., installment payments remain to be
made), and (4) cases of mineral material trespass in accordance with guidance contained in the
Mineral Material Trespass Prevention and Abatement handbook H-9235-1. The AO may submit
comparable sales data that show any of the unit values in this IM should be higher for a
particular geographic area.
For nonrenewable contract sales the updated unit price shall be applied at the start of next
calendar month following the date of issuance of this IM. If a nonrenewable contract sale was
authorized less than 2 years ago or the last adjustment of value was less than 2 years ago, the
updated unit price will be applied at the start of the calendar month immediately following the
second anniversary of the sale or second anniversary following the date of the last adjustment.
The unit prices should be used to establish minimum bids for competitive sales unless there have
been substantive changes in the local market since the issuance of this IM. In such cases an
appraisal utilizing comparable sales data would be completed as part of the application process.

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The cost of such would add to the case-by-case processing cost estimate. The AO should
carefully consider whether or not a unit price in this IM should apply to a contract sale that is
undergoing renewal.
The change in appraised value will be indicated by the entry of Action Code 132 with $*.**;CY
or $*.**;TN in the action remark into LR2000-Case Recordation. A copy of this IM should be
placed into the mineral material case file for documentation purposes. For community pits,
common use areas and free use permits, the action date shall be the date of receipt by your office
of this IM. For nonrenewable contract sales which are not paid in full, the Action Code 132 shall
be entered on the first calendar day of the month the new value will become applicable.
Timeframe: This IM is effective immediately
Budget Impact: Minimal
Background: In accordance with 43 Code of Federal Regulations (CFR) 3602.13 the BLM will
not sell mineral materials at less than fair market value and may periodically, usually on a 2 year
basis, reappraise the value of mineral materials. Washington Office IM No. 2009-160, Mineral
Materials Appraisal Policy, allows for the extension of existing appraisals using appropriate
Producer Price Index (PPI), published by the Bureau of Labor Statistics to adjust the estimate of
the fair market value.
A long form mineral material appraisal utilizing comparable sales data was completed in late
May 2010 and was transmitted to Field Offices via IM No. WY-2010-038 which was dated
July 22, 2010. The following table shows the PPI’s from May 2012 and November 2014 and the
mineral material products to which they are applied.
Series ID
WPU
Seasonally
Adjusted?
Group Item November
20141
PPI/May
2012 PPI =
Multiplication factor
applied to
132101 N Nonmetallic
mineral
products
Construction sand,
gravel and crushed
stone
290.6 /
272.2 =
1.068
Sand, gravel,
aggregate, rip-rap,
boulders
13990211 N Nonmetallic
mineral
products
Dimension stone 233.3 /
210.8 =
1.107
Moss rock, dimension
stone (flagstone),
decorative rock
139903 N Nonmetallic
mineral
products
Miscellaneous
mineral products
181.8 /
169.8 =
1.071
Borrow/fill, clinker
To adjust a 2012 unit prices to an approximate 2012 unit value using PPI’s the November 2014
PPI is first divided by the May 2012 PPI with the result being rounded to three digits right of the

1 Preliminary, index is subject to revision four months after publication (Source: www.bls.gov)

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decimal point. The 2012 unit price is then multiplied by that figure as shown in Attachment 1
with the result being rounded to the closest penny.
If any purchaser is concerned that any of the reappraised values presented in this IM is in error
that party is welcome to present comparable sales data for similar material sold from fee lands
that is the result of an arm’s length transaction. The mineral material appraisal handbook is
H-3630-1.
Manual/Handbook Sections Contact: If you have questions, please contact George Varhalmi
at 307-775-6273, and by email at gvarhalm@blm.gov.
Signed by: Authenticated by:
Brenda V. Neuman Sherry Dixon
Acting Deputy State Director Support Services Assistant
Minerals and Lands
1 Attachment:
1 – Mineral Material Rate Schedule – January 2015 (1 p)
Distribution

Director (320), 20 M Street, SE 1 (w/atch.)

Field Managers 1 (w/atch.)

CF 2 (w/atch.)