{"data":{"id":"us/43-cfr-3602.14","jurisdiction":"us","citation":"43 CFR 3602.14","heading":"What kind of financial security does BLM require?","body":"(a) For contracts of $2,000 or more, BLM will require a performance bond of an amount sufficient to meet the reclamation standards provided for in the contract, but at least $500. If you have a sales contract from a community pit or common use area and you pay a reclamation fee, BLM will not require you to post a performance bond.\n(b) BLM may require a performance bond for contracts of less than $2,000. We will not require a bond amount greater than 20 percent of the total contract value.\n(c) A performance bond may be a—\n(1) Bond of a corporate surety shown on the approved list (Circular 570) issued by the U.S. Treasury Department, including surety bonds arranged or paid for by third parties;\n(2) Certificate of deposit that:\n(i) Is issued by a financial institution whose deposits are Federally insured;\n(ii) Does not exceed the maximum insurable amount set by the Federal Deposit Insurance Corporation;\n(iii) Is made payable or assigned to the United States;\n(iv) Grants BLM authority to demand immediate payment if you fail to meet the terms and conditions of the contract;\n(v) States that no party may redeem it before BLM approves its redemption; and\n(vi) Otherwise conforms to BLM's instructions as found in the contract terms;\n(3) Cash bond, with a power of attorney to BLM to convert it upon your failure to meet the terms and conditions of the contract;\n(4) Irrevocable letter of credit from a bank or financial institution organized or authorized to transact business in the United States, with a power of attorney to BLM to redeem it upon your failure to meet the terms and conditions of the contract; or\n(5) Negotiable Treasury bond of the United States of a par value equal to the amount of the required bond, together with a power of attorney to BLM to sell it upon your failure to meet the terms and conditions of the contract.","path":["Title 43—Public Lands: Interior","Subtitle B—Regulations Relating to Public Lands","CHAPTER II—BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR","SUBCHAPTER C—MINERALS MANAGEMENT (3000)","PART 3600—MINERAL MATERIALS DISPOSAL","Subpart 3602—Mineral Materials Sales"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-43.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:26:15Z","sha256":"12d46a76a6e462d4e05e69c461a632324097af20e27097e616930da9ea51057d","source_id":"us-cfr","stale":true,"prev":"us/43-cfr-3602.13","next":"us/43-cfr-3602.15"},"notice":"GroundRules: Original legal text. Not legal advice."}