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.. <br />$.25/ton. Tt~e letter proposes using an actual royalty paid of $.25/ton. <br />The Forest Service position is that the higher of a "market value" royalty <br />rate or an actual royalty rate should be used. <br />District Ranger Richard Cook performed an appraisal for removal of sand and <br />gravel at a different site in the general area in 1984. His determination <br />of royalty value at that time was $.45/cubic yard. The Bureau of Land <br />Management's Montrose District Office has produced a Mineral Material <br />Appraisal for use from 1993 through 1995. On page 4, this appraisal <br />concludes that the market value royalty for sand and gravel in the area is <br />$.30/ton or $.44/yard, loose. The conclusions of both of these appraisals <br />supports the negotiated figure of 3000 pounds per cubic yard of gravel <br />removed from the site since a conversion factor of 1.5 tons per cubic yard <br />would result. <br />$.45/cu yd $.30/ton = 1.5 x 2000 lb.ton = 3000 lb/cubic yard. <br />As a result of these considerations, all parties agreed on a market value <br />royalty of $.30/ton fer gravel removed from the site. <br />The final calculation of Royalty Value lost by the United States as a result of <br />the unauthorized occupancy would be as follows: <br />90,000 cubic yards x 1.5 (conversion factor) = 135,000 tons x $.30/ton = <br />$40,500.00 <br />The undersigned propose that the Department of Justice approve a negotiated <br />settlement of damages due the United States for Royalty Loss and Land Value <br />Damages on the basis of the considerations contained herein. It is <br />acknowledged by all parties that reclamation work shall not begin before the <br />Department of Justice approves this proposal. <br />Richard P. Cook Pete Ballode <br />District Ranger Telluride Gravel, Inc. <br />Gran3 Mesa, Uncompahgre <br />6 Gunnison Nat'l. Forest <br />Kirk Alexander <br />Date Date Date <br />