FS-2800-9 Contract for Sale of Mineral Materials

USDA Forest Service

FS-2800-9
OMB No. 0596-0081 (Exp. 12/31/2020)
For Forest Service Use Only

USDA FOREST SERVICE
CONTRACT FOR THE SALE OF
MINERAL MATERIALS
(Ref. FSM 2850)

Forest Service Unit Name
Contract Number

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provider and employer.

THIS AGREEMENT, made this

day of
, 20
, under authority of the Acts of July 31, 1947 (61
Stat. 681), as amended (30 U.S.C. 601 et seq.), March 4, 1917 (16 U.S.C. 520), and June 11, 1960 (74 Stat. 205), and
the regulations set forth in 36 CFR 228, Subpart C, between the UNITED STATES OF AMERICA (hereinafter called the
"Government"), acting through the Authorized Officer of the Forest Service (hereinafter called the "Authorized Officer"),
and
(hereinafter called the "Purchaser.")
WITNESSETH, That the parties hereto mutually agree as follows:
Sec. 1. Contract area. The Government hereby sells to Purchaser and Purchaser hereby buys from Government,
under the terms and conditions of this contract, all of the mineral materials described in Sec. 2 below, for severance,
National Forest, County of
, State
extraction, or removal, on the following described lands situated in the
of
as shown on the operating plan marked "Exhibit B", attached hereto and made a part hereof, viz: Section
, Township
, Range
, Meridian
, containing
acres, more or less.
Sec. 2. Amount and price of materials. The total purchase price will be determined by multiplying the total quantity of
each kind of mineral material designated by the respective unit price as set forth below, or as changed through
reappraisal hereunder.
KIND OF MATERIALS

QUANTITY
(Units Specified)

PRICE PER UNIT

TOTAL PRICE

Total
Determination by the Authorized Officer of the quantity of materials taken is binding on Purchaser subject to appeal
only as provided in Sec. 14. All materials in the contract area in excess of the estimated quantity listed above are
reserved by Government.
Sec. 3. Payments, passage of title, and risk of loss. Title to materials sold hereunder passes to Purchaser immediately
before excavation and upon proper payment for such materials. No part of the material sold hereunder may be
severed, extracted, or removed by Purchaser until payment for such materials has been made in accordance with the

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USDA Forest Service

FS-2800-9 (v 10/2014)
OMB No. 0596-0081 (Exp. 10/31/2017)

following:
(a) Unless materials sold under this contract are paid for in full in advance, payment for materials must be made
in installments of not less than $
each. The first installment must be paid upon approval of this contract.
(b) Each additional installment is due and payable as billed by the Authorized Officer in advance of removal of
the remaining material. The first installment will be retained as additional security for the full and faithful performance
of this contract by Purchaser, and will be applied in whole or in part to the payment of the last installment required
hereunder to make the total payment equal the total price set forth in Sec. 2, above.
The total purchase price must equal the sum of the total quantities severed, extracted, or designated therefor,
multiplied by their respective unit prices. The balance due where less than a full installment remains to be paid upon
the total price will be the value of material remaining to be severed or extracted. Each installment will be held in
suspense until the quantity of material covered thereby has been determined. The total purchase price must be paid
at least 60 days before the expiration date of the contract.
Upon termination, if the total payments made under the contract exceed the total value of the actual materials
removed, the excess will be returned to Purchaser, except as noted in 36 CFR 228.66.
(c) Risk of loss shall be borne by the party holding title to the mineral material at the time of loss except that
nothing herein shall be construed to relieve either party from liability for breach of contract or any wrongful or negligent
act.
Sec. 4. Stipulation and reserved items. The rights of Purchaser are subject to the regulations in 36 CFR 228, Subpart
C, which are made a part of this contract, and to the stipulation, if any, which are attached hereto and made a part
hereof as Exhibit A.
Sec. 5. Bonds.
(a) Purchaser must file with the Authorized Officer and must maintain at all times the bond required under the
regulations to be furnished as a condition to the award of this contract in the amounts established by the Authorized
Officer and to furnish additional bonds or security as the Authorized Officer may require.
$

(b) If all terms of this contract are not faithfully and fully performed by Purchaser, the bond in the sum of
filed at the time of the signing of this contract will be forfeited to the amount of damages determined

by the Authorized Officer. If damages exceed the amount of the bond, Purchaser hereby acknowledges liability for
such excess. Upon satisfactory performance of this contract, the bonds will be canceled, or if cash or United States
securities were furnished in lieu of a security bond, such cash or securities will be returned to Purchaser.
(c) Whenever any bond furnished under this contract is found unsatisfactory by the Authorized Officer, the
Authorized Officer may require a new bond which is satisfactory.
Sec. 6. Expiration of contract and extensions of time. This contract will expire on
, 20
,
unless an extension of time is granted in accordance with the provisions of 36 CFR 228.53(b). Written application for
an extension of time may be made by Purchaser between 30 and 90 days before the expiration date of the contract.
Sec. 7. Duties of Purchaser. Purchaser must take fire precaution and conservation measures and must dispose of
slash and other debris resulting from operations hereunder in accordance with written instructions from the Authorized
Officer.
Sec. 8. Notice of operations. Purchaser must notify the Authorized Officer immediately of the commencement and
termination of operations hereunder. A report of production will be furnished at least annually by Purchaser to the
Authorized Officer.
Sec. 9. Responsibility for damages. Purchaser is liable in damages for the loss or destruction of all Government
property for which Purchaser is directly or indirectly responsible under this contract, or resulting from Purchaser's
failure to perform under this contract in accordance with the instruction of the Authorized Officer, as well as for costs
incurred by Government resulting from Purchaser's breach of any of the terms hereof, or Purchaser's failure to engage
in proper conservation practice. For damages resulting from willful action or gross negligence of Purchaser,
Purchaser's contractors or subcontractors, or any of their employees, Purchaser is liable for triple the appraised value
of damaged or destroyed materials as determined by the Authorized Officer. If the Authorized Officer determines that
the damage or destruction did not result from Purchaser's willful action or gross negligence, lesser damages may be
charged, buy not less than the actual appraised value of the materials. Purchaser must pay the Government for such
damages within 30 days after a written demand therefor by the Authorized Officer.

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Sec. 10. Violations, suspension, and cancellation.
(a) If Purchaser violates any provision of this contract, the Authorized Officer may, after giving written notice,
suspend any further operations for the Purchaser under this contract, except such operations as may be necessary to
remedy any violations. The Authorized Officer may grant Purchaser an additional 30 days, after service of written
notice, to correct any violations. If Purchaser fails to remedy all violations, the Authorized Officer may, by written
notice, cancel this contract and take appropriate action to recover all damages suffered by the Government by reason
of such violations, including application toward payment of such damages of any advance payments and bonds.
(b) If Purchaser extracts or removes any mineral materials sold under this contract during any period of
suspension, or if Purchaser extracts any of such material after expiration of the time for extraction or the cancellation of
this contract, such extraction or removal is in trespass and renders Purchaser liable for triple damages.
Sec. 11. Time for removal of personal property. Purchaser has the right within
months after expiration of the
time for extraction and removal of mineral materials, if not in default, to remove equipment, improvements, or other
personal property from Government lands or rights-of-way. Any improvements such as road surfacing, culverts, and
bridges which have become a permanent part of a Government road may not be removed. Any equipment,
improvements, or other personal property remaining on Government lands and rights-of-way at the end of the period
for removal as set forth herein becomes the property of the Government.
Sec. 12. Assignments.
Authorized Officer.

This contract or any portion of it may not be assigned without written approval of the

Sec. 13. Tenure. Unless otherwise provided by this contract, Purchaser has the right to extract and remove the
materials until the termination of the contract, notwithstanding any subsequent appropriation or disposition under the
general land laws, including the mining and mineral leasing laws.
Sec. 14. Appeal. Unless specifically excluded by 36 CFR 214. Purchaser may appeal any decision by the Authorized
Officer regarding this sale of mineral materials.

PURCHASER

THE UNITED STATES OF AMERICA

(Individual or Firm Name)

(Authorized Officer)

(Address, Including Zip Code)

(Title)

(Signature)

(Date) [mm/dd/yy]

(Signature)
If this contract is executed by a corporation, it must affix its corporate seal.

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