such ores which are delivered to the purchase depot shall, unless otherwise specifically agreed to by buyer, become the property of the buyer as liquidated damages for buyer's expense of weighing, sampling, and assaying, and after sampling may be placed in process, commingled, or otherwise disposed of by buyer. If seller has any question as to the quality of his ore, it is suggested that before shipment and delivery to the purchase depot a representative sample be submitted to the buyer or to one of the umpires for assay at seller's expense. The buyer at its discretion may assay a limited number of samples without charge. (ii) Ores assaying 0.10 percent U.O. and more, as follows: Payment per pound U2O $1.50 1.70 1.90 2. 10 2.30 2.50 2.70 2.90 3.10 3.30 8.50 (iii) Premiums on uranium: $0.75 per pound for each pound of U.O. in excess of 4 pounds U.O. per short ton (2,000 pounds per ton) of ore and an additional premium of $0.25 per pound for each pound in excess of ten pounds U2O, per short ton. Fractional parts of a pound will be paid for on a pro rata basis to the nearest cent. (2) Vanadium. V2O, at $0.31 per pound up to, but not exceeding, ten pounds of V.O. for each pound of U2O. contained in ores. No factor will be included for V2O. in excess of ten pounds for each pound of U.O., although buyer may, from time to time, publicly announce that, for limited periods by written agreements with individual producers, V.O. in excess of ten-to-one will be paid for. Any such announcement will be made by posting a notice to this effect at the Monticello depot and through such other channels as are deemed suitable to achieve maximum dissemination among producers. Excess V2O, shall be deemed to be buyer's property. (3) Allowances. (i) A development allowance of $0.50 per pound U.O, in ores assaying 0.10 percent U.O. or more in recognition of expenditures incurred or likely to be incurred in the development or exploration necessary for maintaining and increasing developed reserves of uranium ores. Fractional parts of a pound will be paid for on a pro rata basis to the nearest cent. (ii) A haulage allowance of 6¢ per ton mile for transportation of ore paid for under § 60.5 and this section from the mine where produced to the purchase depot specified by the Commission, up to a maximum of 100 miles. The haulage distance from the mine to the purchase depot will be determined by the Commission and its decision will be final. Tonnages for purposes of this allowance shall be calculated on the basis of natural weights rather than dry weights. (4) Adjustment of assays. Assays shall be adjusted to the nearest 0.01 percent for purposes of payment. (b) Quality and size. Ores will not be accepted by buyer under §§ 60.5 and 60.5a which, in buyer's judgment: (1) Contain less than 0.10 percent U2O1; (2) Contain more than three parts of lime (CaCO.) to one part of V.Oь, or a total of more than 6 percent lime in the ore; (3) Contain impurities deleterious to buyer's extraction process or for any other reason are not amenable to it; (4) Contain lumps in excess of twelve inches in size. NOTE: The Commission will be interested in discussing arrangements for delivery to it of types of uranium-bearing materials other than those for which guaranteed prices have been established, such as tailings, mill products, and ores of types not acceptable under §§ 60.5 and 60.5a. [Circ. 5, Rev., 16 F. R. 2333, Mar. 13, 1951, as amended at 21 F. R. 6301, Aug. 22, 1956] § 60.6 Bonus for initial production of uranium ores from new domestic mines— (a) What this section does. This section provides for bonus payments for initial and certain other production of uranium-bearing ores. It is intended to encourage and assist the development of new sources of domestic uranium production in the interest of the common defense and security. (b) Production bonus established. The U. S. Atomic Energy Commission will pay a bonus under the conditons set forth in this section for delivery to a Commission ore-buying station or qualified uranium mill (called station or Fractional parts of a pound will be paid for on a pro rata basis to the nearest cent. Assays will be adjusted to the nearest 0.01 percent for purposes of payment. Weights are avoirdupois dry weights. Bonus payments made under this section will be in addition to any other payments for delivery of the ore. They will be paid directly by the Commission and not by the station or mill. (e) Maximum quantity of uranium ores for which bonus payments will be made. Subject to the conditions of this section, bonus payments will be made on deliveries of uranium ore from an eligible mining property to a station or mill until bonus payments have been made on 10,000 pounds of contained uranium oxide less the number of pounds, if any, accepted by stations or mills (or any other uranium ore processing plants) from that mining property between April 9, 1948 and February 28, 1951, inclusive. (f) Ores for which bonus payments will be made. Ores for which bonus payments will be made must have been delivered to and paid for by either a station or mill. However, in special cases, bonus payments may be made for ores which have been accepted by the station or mill but for which payment is still pending. Bonus payments will not be made for ores which a station or mill refuses to accept. The weights and final assays made to ascertain the amount of payment due from the station or mill shall be used to determine the amount of bonus payments under this section. (g) Which mining properties are eligible. In order for a mining property to be eligible for bonus payments under this section, (1) As required by paragraph (e) of this section, the total quantity of uranium oxide as contained in ore accepted by stations or mills (or any other uranium ore processing plants) from that property between April 9, 1948 and February 28, 1951, inclusive, must have been less than 10,000 pounds; and (2) The property must be within the United States, its Territories, possessions or the Canal Zone; and (3) The property must be certified by the Commission as eligible using the following criteria as guides: (i) Purpose of the bonus. The purpose of the bonus is to encourage and assist the development of new sources of domestic uranium production. (ii) Character of mining property. The mining property may consist of a placer or lode location, or if not covered by location, a tract which the Commission finds to be comparable or otherwise appropriate. However, an entire holding consisting of contiguous locations or tracts will be regarded as only a single eligible unit of mining property if the locations or tracts are held in common in the manner set forth in the following paragraph. (iii) Title or interest of the holder of the property. The title or interest in the mining property should be one of ownership or lawful possession of mining rights. This type of holding will generally be that of an owner or leaser (lessee). It is recognized that there are various arrangements such as split check leases, piece rate contracts and the like whereby persons either as employees or independent contractors conduct mining operations on designated areas of property held by another who also supplies certain of the mining services or equipment or both and who receives in return a percentage of the proceeds of the ore produced. In the case of such arrangements, the person who grants the right to conduct these mining operations will be considered as the holder of the min ing property although others perform mining operations on it. (iv) Minimum size of mining property. The mining property, if it is made up of a location or locations, should contain at least 15 acres. The minimum size of lands on Indian reservations will be established by the Commission after consultation with the Bureau of Indian Affairs of the Department of Interior. The minimum size of other mining properties will be established by the Commission in individual cases in the light of the purpose of the bonus. (v) Subdivision or consolidation of property. Since the division of existing mining properties into smaller units might have the effect of increasing bonus payments without advancing the purpose of the bonus program, division of a single unit of mining property on or after March 1, 1951, will not be recognized in determining its eligibility for bonus payments under this section. In addition, consolidation or merger of contiguous mining properties on or after March 1, 1951, will not affect the eligibility of the separate properties for bonus payments. (vi) Special cases. Since the above criteria are merely guides to assist the Commission in its decisions, areas which fail to meet all of the criteria may be certified by the Commission as eligible in special cases where it is determined that the deviations are not substantial or that their disqualification would cause serious inequities. In determining whether or not serious inequities would result, the physical characteristics and location of the deposit may be a factor. Under appropriate circumstances, a segment of a certified property may itself be certified as eligible. On the other hand, technical compliance with all the above criteria will not necessarily make a property eligible. Properties leased to private operators by the Commission will not be eligible for bonus payments except under special circumstances and as provided for in the lease. (h) Determination by the Commission. The Commission expressly reserves the right to decide the amount of any bonus payments to be made, whether the property should be certified as an eligible mining property, the person to whom the bonus should be paid and whether for any reason a bonus is not payable. These decisions shall rest in the sole discretion of the Commission and shall be final and conclusive. The Commission further reserves the right to establish procedures to carry out the bonus program. Any bonus payments made hereunder with respect to particular ores shall be the only such bonus payments made for those ores. The Commission will not consider any other application for bonus payments on those ores. (i) Application for certification. Applications for certification of a property as eligible should be made to: U. S. Atomic Energy Commission, Grand Junction, Colorado. The application should include a description of the mining property indicating its size, location, ownership, interest of the applicant and public recording. There should also be included a statement by the applicant that to the best of his knowledge the total quantity of uranium oxide contained in ore accepted by stations or mills (or any other uranium ore processing plants) from that property between April 9, 1948, and February 28, 1951, inclusive, was less than 10,000 pounds. A form prescribed by the Commission and obtainable at a station or mill should be used for supplying the above information. Certification by the Commission will be a prerequisite to payment of the bonus, but after certification, payments will be made for ores which are delivered before certification and which meet the requirements of this section. Normally certification will not be made before uranium deposits have been discovered on the property, but the Commission may issue certifications prior to discovery in special cases. The Commission reserves the right to revoke a certifiIcation if it determines that its issuance was based on fraud, misrepresentation or mistake or if the requirements of this section are not complied with. The Commission may require such information and right to make such inspections of the mining property as it finds necessary for the purpose of determining its eligibility for bonus payments and the amounts to be paid. NOTE: Misrepresentation or falsification of facts in an application for certification or for bonus payments may subject the offender to criminal penalties under pertinent provisions of the United States Code including section 1001 of Title 18. Any such offenses also will disqualify the offender from receiving bonus payments. (j) Application for bonus payment. Application for a bonus payment should be made on a prescribed form (obtainable at a station or mill) at intervals not more frequent than once a month during a period when ore deliveries from the property are believed to meet the requirements of this section. Applications may be addressed as follows: U. S. Atomic Energy Commission, Grand Junction, Colorado. In addition to the application, the Commission may require such other information as it finds necessary. (k) Who may apply for bonus payments. The person (other than a royalty payee or the like) who has lawfully received payment from a station or mill for the delivery of ore from a certified mining property may apply for bonus payments under this section. However, in special cases, the applications of persons whose ores have been accepted by the station or mill but for which payment is still pending will be considered. (1) Mill processing ores from its own mines. In the event that an operator of a mill processes in the mill ores which it obtains from mining properties operated by it, the Commission will pay the bonus under the conditions set forth in this section to the same extent as if the mining properties were operated by another person who delivered ore to the mill and received payment for it from the mill. In such case, however, the weights and assays used to fix the amount of payment due as a bonus under this section shall be determined in accordance with practices satisfactory to the Commission. (m) Definitions. As used in this section, (1) "Commission" means the Atomic Energy Commission created by the Atomic Energy Act of 1946, or its duly authorized representative. (2) "Person" means any individual, corporation, partnership, firm, association, trust, estate, public or private institution, group, or combination thereof. The term "person" shall not include the U. S. or any agency thereof or any officer or employee of the Commission. (n) Commission ore-buying stations and qualified uranium mills. (1) Stations. The following are Commission ore-buying stations (that is, ore-buying stations operated on behalf of the Commission): American Smelting & Refining Co., Monticello, Utah. American Smelting & Refining Co., Marysvale, Utah. (2) Mills. The following are qualified uranium mills: United States Vanadium Company, Uravan, Colo. United States Vanadium Company, Rifle, Colo. Climax Uranium Co., Grand Junction, Colo Vanadium Corporation of America, Durango, Colo. Vanadium Corporation of America, Naturita, Colo. Vanadium Corporation of America, Hite, Utah. Vitro Chemical Co., 600 West 33d St. South, Salt Lake City, Utah. (3) Modifications. These lists may be modified from time to time by public announcement of the Commission. (0) Inquiries and communications. Inquiries about this section and all other communications should be addressed as follows: U. S. Atomic Energy Commission, Grand Junction, Colo. (p) Records, rules and regulations. The Commission may require applicants for bonus payments under this section to keep for Commission inspection such records concerning production and deliveries of uranium ores for which application is made as it finds proper and may issue such additional rules and regulations relating to bonus payments as it finds necessary or desirable. [Circ. 6, 16 F. R. 6426, July 3, 1951, as amended at 21 F. R. 9010, Nov. 21, 1956] § 60.8 Uranium leases on lands controlled by the Commission-(a) What this section does. This section sets forth regulations governing the issuance of leases for mining deposits of uranium in public lands withdrawn from entry and location under the general mining laws for the use of the Commission, and in certain other lands under Commission control. (b) Statutory authority. The Atomic Energy Act of 1954 (68 Stat. 919) is the authority for this section. (c) Who may hold leases. Only parties who are (1) citizens of the United States; (2) associations of such citizens; or (3) corporations organized under the laws of the United States or territories thereof, are eligible lessees under this section. Persons under 21 years of age or employees of the Commission are not eligible. (d) Issuance of leases through competitive bidding. Except under special circumstances as provided in this section a lease will be issued only to the acceptable bidder offering the highest cash bonus. Before any lease is awarded the Commission may require high bidders to submit a detailed statement of the facts as to such matters as their experience, organization and financial resources. The Commission reserves the right to reject any and all bids. (e) Solicitation of bids. Invitation to bid for a lease will be publicly posted and published. Copies will also be mailed to parties who submit to the Commission's Grand Junction, Colorado, Operations Office written request that their names be placed on a mailing list for the receipt of such invitations. The invitation will set forth the location of the land or deposits to be leased, the term, royalty rate, work requirements and certain other conditions which will become a part of the lease. The invitation will specify a period following notice of award during which the successful bidder may explore the land or deposit, and will also specify the percentage of the bonus offered which must be transmitted with the bid and set the place and time the bids will be publicly opened. A detailed statement of the terms of the invitation and the factual data pertinent to the land or deposit obtained from Commission exploration will be available for public inspection at offices listed in the invitation and upon payment of a nominal charge copies of these statements and data may be acquired from the Grand Junction Operations Office. (f) Bidding requirements; deposits. All bids must be filed at the place and prior to the time set in the invitation. Each bid must be sealed and accompanied by a deposit, in the form of a certified check, cashier's check, bank draft or cash, equal to the specified percentage of the bonus offered. Deposits of unsuccessful bidders will be returned. If the bidder is an individual he must submit with his bid a statement of his citizenship and age. If the bidder is an association (including a partnership), the bid shall be accompanied by a certified copy of the articles of association together with a statement as to the citizenship and age of its members. If the bidder is a corporation, evidence that the officer signing the bid had authority to do so and a statement as to the state of incorporation shall also be submitted. (g) Award of lease. Following public opening of the bids the Commission, subject to the right to reject any and all bids, will determine the successful bidder. In the event the highest acceptable bids are tie bids, a public drawing will be held by the Commission to determine the successful bidder. After notice of award and prior to expiration of the period prescribed in the invitation, the successful bidder may explore the land or deposit, shall execute and return to the Commission three (3) copies of the lease and shall pay the balance of the bonus unless the bidder chooses to forfeit his deposit. Should the successful bidder fail to execute the lease and pay the balance of the bonus within the time specified in the invitation, or fail to otherwise comply with applicable regulations, he will also forfeit his deposit. In such event the Commission may offer the lease to the second highest acceptable bidder. If the awarded lease is executed by the bidder through an agent, evidence of authorization must be submitted. (h) Dating of lease. A lease issued under this section will ordinarily be effective as of the date it is signed by the Commission. (i) Term of lease. A lease shall be for the period specified in the invitation to bid. When deemed desirable by the Commission it will state in the invitation that the lease term may be extended for a specified period and upon stipulated conditions at the option of the lessee. In such event the lease will include this option. (j) Royalty. Royalty shall be at the rate specified in the invitation to bid. (k) Direction of ore shipments. The lessee shall ship all ore with reasonable diligence to such uranium ore receiving station or purchaser within the United States as the Commission may designate, and shipment shall be at lessee's own expense up to 100 miles. The Commission reserves the right to take and remove all ores not so shipped with reasonable diligence, and to credit the lessee with the value of such ores less sums due the Government from the |