RD Instruction 2000-U

PART 2000 - GENERAL

Subpart U - Memorandum of Understanding Between U.S. Department of\
the Interior Bureau of Mines (BOM) and the U.S. Department of\
Agriculture Rural Development(Business and Industrial Loans)

§2000.1001 [General]{.underline}.

The BOM covers a broad spectrum of program activities including mining
systems, processes involving mineral substances, eliminating
occupational health and safety hazards, economic development and
resource conservation. The memorandum (Exhibit A) has been developed to
establish an effective liaison and coordination of activities between
the two agencies to review loan applications submitted by mining and
mineral processing businesses and industries.

§2000.1002 [Reaching Agreement with BOM]{.underline}.

The BOM State Liaison Officers, or their designees, and the Rural
Development State Directors, or their designees, are the official
contact at the State level and are responsible for implementing this
agreement.

§2000.1003 [State supplements]{.underline}.

State Directors may issue State supplements, to the extent necessary to
properly implement the policies of the Memorandum of Understanding.

§§2000.1004 - 2000.1050 \[Reserved\]

Attachment: Exhibit A

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DISTRIBUTION: WS Administration

General

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(12-16-92) PN 196

RD Instruction 2000-U

Exhibit A

## MEMORANDUM OF UNDERSTANDING

## 

## between

## 

## U.S. DEPARTMENT OF THE INTERIOR

## Bureau of Mines

## 

## and

## 

## U.S. DEPARTMENT OF AGRICULTURE

## Rural Development

## 

I. [BACKGROUND]{.underline}:

The Department of the Interior (DOI) has responsibilities for
conservation and management of natural resources in the United States,
including 500 million acres of Federal land, the Outer Continental Shelf
lands, Indian lands, the territories, and the Trust Territories of the
Pacific Islands, for research and investigation necessary to understand
and develop minerals, and water resources of the United States; and for
research covering health and safety of persons engaged in mining and
extraction.

The Bureau of Mines (BOM) role in helping DOI to carry out its
responsibilities is to conduct inquiries and scientific and technologic
investigations concerning mining, and the preparation, treatment, and
utilization of mineral substances with a view to improving health
conditions, and increasing safety, efficiency, economic development, and
conserving resources through the prevention of waste in the mining,
quarrying, metallurgical, and other mineral industries; to investigate
on behalf of the Government minerals and unfinished mineral products
belonging to, or for the use of, the United States, with a view to their
most efficient mining, preparation, treatment and use (30.U.S.C.3).

BOM activities cover a broad spectrum of programs involved with mining,
processing minerals substances, eliminating occupational health and
safety hazards in the mineral industries, economic development, and
resource conservation. Professional engineers and scientists involved
with these programs are to be made available to review and comment on
environmental impact assessment and statements, and to review, assess,
and comment on economic and technical aspects of feasibility studies
that relate to mining and the preparation, treatment, and utilization of
mineral substances. Areas where BOM has expertise are as follows:

..Mining systems that affect productivity and efficiency of metal

and non-metal mining operations.

..Processes that beneficiate, recover and purify minerals and metals.

..Processes that control, reduce or eliminate environmental problems

associated with the extraction of minerals, metals and fuels.

..Processes that control environmental disturbances associated with

current mining operations and the reclamation of mine lands.

(10-18-78) PN 644

RD Instruction 2000-U

Exhibit A

Page 2

..Processes that restore abandoned mined lands and that control

subsidence caused by mining and fires in inactive mines.

..Processes affecting pollution abatement and secondary resource

recovery of mineral substances and metal values.

..Research on safety and health problems related to mining and mineral

processing operations (including respirable dust, fires and

explosion prevention, industrial hygiene, radiation hazards, post

disaster survival and rescue, ground control ventilation, noise,

and system engineering).

Rural Development is authorized to make and guarantee loans for stated
purposes under the consolidated Farm and Rural Development Act.

II\. [PURPOSE]{.underline}:

The purpose of this Memorandum of Understanding is to describe the
services that are to be provided by the BOM and Rural Development on
loans to be made to the mining and mineral processing industries.

III\. [BOM CONTRIBUTION]{.underline}:

A. Consistent with other priorities and resources available, the BOM
will offer technical assistance as described below on loan applications
submitted by the mining and mineral processing businesses and
industries:

1\. Review and comment on environmental impact assessments and
statements.

2\. Review, assess and comment on economic and technical aspects of
feasibility studies that relate to the mining, preparation, treatment
and utilization of mineral substances.

3\. Prepare written reports to Rural Development on items 1 and 2 above.

B. BOM will not review loan applications concerned with production of
fuel minerals, except insofar as the environmental and/or health and
safety aspects may be involved.

IV\. [Rural Development CONTRIBUTION]{.underline}:

Rural Development will perform the following services:

1\. Process loan applications received from the mining and mineral
processing businesses and industries of the United States.

2\. Provide BOM with a copy of the lender\'s pre-application letter to
Rural Development. This may include any copies of feasibility studies or
Rural Development\'s environmental impact assessments or statements.

V. [MADE OF OPERATION]{.underline}:

Rural Development will reimburse BOM for actual costs incurred, where
BOM is permitted to charge such costs, including costs of personnel,
overhead, travel, etc.

RD Instruction 2000-U

Exhibit A

Page 3

as routinely recorded in the BOM accounting systems. To implement this
Memorandum of Understanding, Rural Development will request BOM to
perform a specific review and BOM will prepare a cost estimate for the
requested service before the work will begin. When agreement is reached,
Rural Development will issue an Interagency Agreement in the form of a
purchase order or other document in accordance with Rural Development
regulations.

VI\. [LIAISON]{.underline}:

The BOM State Liaison Officers are to be the official contact at the
State level and the Office of the Associate Director\--Mineral and
Materials Supply/Demand Analysis is to have the responsibility of
implementing this agreement. See appendix A for information related to
State Liaison Officers name, office address, and State or States
responsibility.

The Rural Development State Directors, or their designees are to be the
official contacts at the State level and are to be responsible for
implementing this agreement. See appendix B for Rural Development State
Director\'s.

VII\. [AUTHORITY]{.underline}:

This Memorandum of Understanding is entered into pursuant to the
appropriate authorities of each agency as cited in Article I above and
Section 601 of the Economy Act of 1932, as amended (31 U.S.C. 686).

VIII\. [TERM OF THIS AGREEMENT]{.underline}:

This Agreement becomes effective upon the signature of both parties and
will remain in effect until September 30, 1980, unless extended by
mutual consent of both parties.

Amendment of this agreement, in whole or in part, may be accomplished by
written mutual agreement of both parties. Termination of this agreement
may be accomplished by either party upon 60 days notice in writing.

/s/ J.E.T for /s/

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Gordon Cavanaugh John D. Morgan, Jr.

Administrator, Farmers Home Administration Acting Director, Bureau of
Mines

8/22/78 5/3/78

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DATE DATE

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(10-18-78) PN 644

Exhibit A - Addendum not automated see manual

RD Instruction 2000-U

Exhibit A,

Appendix A

## FIELD CHIEFS STATE RESPONSIBILITY

[Alaska Field Operations Center]{.underline}

Mr. John J. Mulligan, Chief

Alaska Field Operations Center

P.O. Box 550

Juneau, Alaska 9902 Alaska

907-364-2111

[Western Field Operations Center]{.underline}

Mr. Richard N. Appling, Jr., Chief

Western Field Operations Center

E. 315 Montgomery Avenue

Spokane, Washington 99207 Washington, Oregon, Idaho,

509-484-1610 Montana, California, Hawaii,

Nevada

[Intermountain Field Operations Center]{.underline}

Mr. Joseph B. Smith, Chief

Intermountain Field Operations Center

Building 20, Denver Federal Center

Denver, Colorado 80225 Colorado, Utah, Wyoming,

303-234-3918 Kansas, Nebraska, Iowa,

Missouri, Oklahoma, Texas,

Louisiana, Arkansas,

Arizona, New Mexico, Minnesota

North Dakota, South Dakota

[Eastern Field Operations Center]{.underline}

Mr Robert D. Thomson, Chief

Eastern Field Operations Center

4800 Forbes Avenue

Pittsburgh, Pennsylvania 15213 Pennsylvania, West Virginia,

412-892-2400 Ohio, Maine, Connecticut,

Rhode Island, New Hampshire,

Vermont, Wisconsin, Michigan,

Indiana, Illinois, Puerto Rico,

Delaware, New Jersey, New York,

Maryland, Virginia, Tennessee,

North Carolina, Kentucky,

Mississippi, Alabama, Georgia,

South Carolina, Florida,

Massachusetts

(10-10-79) PN 695