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117R) <br />(c) The United States will retain the first installment as security foi <br />your full and faithful performance and will apply it to the last <br />installment required to make the total payment equal to the total price <br />given in Section 2. <br />If you are late making an installment payment, you must not remove <br />any more material until you have paid. Removing material you have not <br />paid for is trespass, and for trespass you must pay at triple the appraised <br />unit price, or at triple the reappraised unit price if BLM has made a <br />reappraisal. To resume removal operations after you were late making <br />payments, you must obtain BLM's written approval. <br />(d) You must annually produce an amount sufficient to pay to the <br />United States a sum of money equal to the first installment identified in <br />this section. In lieu of such production, you may make an annual <br />payment in the amount of the first installment. If in any contract year <br />you make production payments that are less than the first installment, <br />you must pay the difference between the production payments and the <br />amount of the first installment. These annual payments are due on or <br />before each anniversary date of the contract. <br />(e) You receive title to the mineral materials only after you have <br />paid for them and extracted them. <br />Sec. 4. Bonds - (a) You must furnish BLM with a performance <br />bond in the amount of $ $57,785.00 as a <br />condition of issuing this contract. <br />(b) If you do not perform all terms of the contract, BLM will deduct <br />an amount equal to the damages from the face amount of the bond. If <br />the damages exceed the amount of the bond, you are liable for the <br />excess. BLM will cancel the bond or return the cash or U.S. bonds you <br />supplied when you have completed performance under this contract. <br />(c) BLM will require a new bond when it finds any bond you <br />furnish under this contract to be unsatisfactory. <br />Sec. 5. Risk of loss - You assume complete risk of loss for all materials <br />to which you have title. If material covered by this contract is damaged <br />or destroyed before title passes, you are liable for all loss suffered if you <br />or your agents are directly or indirectly responsible for the damages. If <br />you are not responsible for the damage or destruction, you are liable <br />only to the extent that the loss was caused by your failure to remove the <br />material under the terms of this contract. You are still liable for breach <br />of contract or any wrongful or negligent act. <br />Sec. 6. Liabilityfor damage to materials not sold to you - You are <br />liable for loss or damage to materials not sold to you if you or your <br />agents are directly or indirectly responsible for the damage or loss. You <br />are also liable if you fail to perform under the contract according to <br />BLM's instructions and the United States incurs costs resulting from <br />your breach of any contract term or your failure to use proper <br />conservation practices. If the damage resulted from willful or gross <br />negligence, you are liable for triple the appraised value of the damaged <br />or destroyed materials. If the damage or destruction did not result from <br />willful or gross negligence, you are liable for lesser charges, but not less <br />than the appraised value of the materials. <br />Sec. 7. Stipulations and reserved terms - Your rights are subject to the <br />regulations at 43 CFR Group 3600 now or hereafter in force and to any <br />stipulations and the mining plan attached to this contract. <br />✓❑ BLM will check this box if there are stipulations attached to this <br />contract. <br />Sec. 8. Notice of operations - You must notify BLM immediately when <br />you begin and end operations under this contract. If BLM has specified <br />a time frame for notification, you must comply with that time frame. <br />Sec. 9. Assignments - You may not assign this contract without BLM's <br />written approval. <br />Sec. 10. Modification of the Approved Mining or Reclamation Plan - You <br />or BLM may initiate modification of these plans to adjust for changed <br />conditions, or to correct any oversight. The conditions for BLM requiring <br />you to modify these plans, or approving your request for modification are <br />found in the regulations at 43 CFR 3601.44. <br />Sec. 11. Expiration of contract - This contract will expire <br />2 years, 0 months, 0 days from its <br />approval date, unless BLM extends the term or renews the contract. <br />Sec. 12. Extensions of time - BLM may grant you an extension of time in <br />which to comply with contract provisions under the regulations at 43 CFR <br />3602.27. For contracts with terms over 90 days, you must apply in writing <br />no less than 30 or more than 90 days before your contract expires. For <br />contracts with terms of 90 days or less you must apply no later than 15 <br />days before your contract expires. <br />❑ BLM will check this box if this contract is a renewable <br />competitive contract. <br />Sec. 13. Renewal ofrenewable competitive contract - BLM will renew <br />your renewable competitive contract if you apply in writing no less than <br />90 days before your contract expires and you meet the conditions in the <br />regulations at 43 CFR 3602.47. <br />Sec. 14. Time for removing personal property -You have <br />30 days (not to exceed 90) from the date this contract expires <br />to remove your equipment, improvements, and other personal <br />property from United States lands or rights-of-way. You may leave in <br />place improvements such as roads, culverts, and bridges if BLM consents. <br />Any property remaining after this period ends, including extracted <br />materials, becomes the property of the United States. You will remain <br />liable for any costs of removing and disposing of the property and <br />restoring the site. <br />Sec. 15. Violations and cancellations - (a) If you violate any terms or <br />provisions of this contract, BLM may cancel your contract following the <br />regulations at 43 CFR 3601.60 et seq., and recover all damages suffered <br />by the United States, including applying any advance payments you made <br />under this contract toward the payment of the damages. <br />(b) If you extract any mineral materials sold under this contract during <br />a suspension period, or after the contract has expired or been canceled, <br />you have committed, and may be charged with, willful trespass. <br />Sec. 16. Responsibility for damages suffered or costs incurred by the <br />United States - If you, your contractors, subcontractors or employees <br />breach this contract or commit any wrongful or negligent act, you are <br />liable for any resulting damages suffered or costs incurred by the United <br />States. You must pay the United States within 30 days after receiving a <br />written demand from BLM. <br />Sec. 17. Equal opportunity clause - The actions you take in hiring must <br />comply with the provisions of Executive Order No. 11246 of Sept. 24, <br />1965, as amended, which describe the non-discrimination clauses. You <br />may get a copy of this order from BLM. <br />(Continued on page 3) (Form 3600-9, page 2) <br />