constituent in the light of the cost of recovery.

(h) Licenses. Arrangements will be made by the Commission for the issuance of licenses, pursuant to the Atomic Energy Act of 1946, covering deliveries of source material to the Commission under this section.

[Circ. 1, 13 F. R. 2089]

§ 60.21 Bonus for the discovery and production of high-grade domestic uranium ore-(a) Discovery and production bonus. To stimulate prospecting for, discovery of, and production from new high-grade domestic uranium deposits and in the interest of the common defense and security the United States Atomic Energy Commission will pay, in addition to the guaranteed minimum price established in § 60.1, a bonus of $10,000 for delivery to the Commission, after the effective date (midnight, April 11, 1948) of this section, of the first 20 short tons (2,000 pounds avoirdupois dry weight per ton) of uranium-bearing ores or mechanical concentrates assaying 20 percent or more U.O by weight from any single mining location, lode or placer, which has not previously been worked for uranium (or in the case of production from lands not covered by such a mining location, from an area comparable thereto, as determined by the Commission). This bonus offer does not apply to delivery of ores of the Colorado Plateau area commonly known as carnotite-type or roscoelite-type ores; under § 60.3, the Commission has established guaranteed minimum prices for delivery of such ores including a development allowance and premiums for better grade.

NOTE: The term "domestic" in this section, referring to uranium, uranium-bearing ores and mechanical concentrates, means such uranium, ores and concentrates produced from deposits within the United States, its territories, possessions and the Canal Zone.

(b) Nature of bonus. The bonus of $10,000 offered in this section is a bonus to encourage the discovery of new uranium resources. However, it will be paid, not for discovery alone, but only in connection with delivery to the Commission, pursuant to § 60.1, of ores produced from the location, as an independent and additional part of the price established by the Commission under that section.

(c) Who may claim. The person lawfully entitled to deliver ore to the 1 Appears as § 60.1 at 13 F. R. 2090.

an

Commission pursuant to § 60.1, may claim the bonus offered in paragraph (a) of this section. A bonus will be paid only once for production of ores from any single lode or placer location (or, in the case of production from lands not covered by such a location, from area comparable thereto, as determined by the Commission). The Commission expressly reserves the right to determine whether production from a given location is the first production from such location for the purposes of this section or whether such location or property has previously been worked for uranium, whether production is such as to which a bonus has already been paid, or whether for any other reason a bonus is not payable. In making this determination the Commission will be guided by the mining laws of the United States which provide, generally, that lode locations may extend in lode or vein formation up to 1,500 feet along the vein and in width 300 feet on each side of the middle of the vein, the end lines of the location being parallel to each other; and that placer locations may not be greater than 20 acres for each location or 160 acres in a single location for up to eight locators. The fact that a bonus has already been received will not prevent the payment of another bonus to the same person with respect to production from a different location.

(d) Notice of discovery and production. Notice of the discovery of a uranium deposit and of production therefrom believed to meet the requirements of paragraph (a) of this section should be forwarded to the Commission by letter or telegram, to the address specified in paragraph (f) of this section, together with an offer to deliver such ore to the Commission under § 60.1. In addition to the information and the 10pound sample required under § 60.1, the following must be furnished:

(1) A brief description of the location or property indicating its size and relationship to mineral monuments or the public land surveys;

(2) Name of owner of record of property;

(3) Location of recorder's where ownership is recorded.

office

(e) Inspection of claim. Upon receipt of a notice of discovery and sample, forwarded as required in § 60.1, an analysis of the sample will be made. If the sample and supporting data indicate the claim is likely to meet the requirements

his representative, will receive one pulp; (2) the buyer will retain one pulp; (3) the other two pulps will be reserved for possible umpire analysis. The buyer's pulp will be assayed by the buyer. The seller may, if he desires, and at his own expense, have his pulp assayed by an independent assayer. In case of disagreement on assays as to any constituent of the ores, an umpire shall be selected in rotation from a list of umpires approved by the buyer whose assays shall be final if within the limits of the assays of the two parties; if not, the assay which is nearer to that of the umpire shall prevail. The party whose assay is the farther from that of the umpire will pay the cost of the umpire's assay for the constituent of the ores which is in dispute. In the event that the umpire's assay is equally distant from the assay of each party, costs will be split equally. In case of seller's failure to make or submit assays, buyer's assays shall govern. After sampling, the ores may be placed in process, commingled, or otherwise disposed of by buyer.

(g) Payment. Buyer will make payment promptly on payment dates to be posted at depots. Payment will not be made until an entire minimum lot of ten short tons (2,000 pounds per ton) has been delivered and accepted, unless special arrangements have been agreed upon by buyer, in which case there may be an extra charge for assaying and sampling. The analysis of any one lot consisting of more than one load will be based on a composite of the samples taken. Moisture determinations, analyses and settlement sheets, together with the check in payment, will be mailed to seller.

(h) Inquiries. All inquiries concerning the provisions of this section, offers to deliver ores, or questions about the Commission's uranium program in the Colorado Plateau area should be addressed to:

United States Atomic Energy Commission,
Post Office Box 270,

Grand Junction, Colorado.

Telephone: Grand Junction 3000.

(i) Licenses. Arrangements will be made by the Commission for the issuance of licenses, pursuant to the Atomic Energy Act of 1946, covering deliveries of source material to the Commission under this section. [Circ. 3, 13 F. R. 2090]

§ 60.3a Schedule 1: Minimum Prices, Specifications and Conditions—(a) Quality and size. Ores will not be accepted by buyer under § 60.3 which, in buyer's judgment at time of acceptance:

(1) Contain less than 0.10% UsOs;

(2) Contain more than three parts of lime (CaCO3) to one part of V2O, or a total of more than 6% lime in the ore;

(3) Contain other impurities deleterious to buyer's extraction process;

(4) Contain lumps in excess of 12 inches in size.

(b) Prices. Payment for delivery of the ores will be computed on the following basis:

(1) Vanadium. VOS at $0.31 per pound up to, but not exceeding, ten pounds of V2O for each pound of U2Os contained in ores. No factor will be inIcluded for V.Os in excess of ten pounds for each pound of UO,. (Example: For an ore containing two pounds of UO, and twenty-five pounds of V2Os, payment would be made for twenty pounds of V2O at $0.31 per pound, but no payment would be made for the additional five pounds.) Such excess V2Os shall be deemed to be buyer's property.

(2) Uranium. (i) Ores assaying less than 0.10% UзOs: no payment. Any such ores which are delivered to the purchase depot shall become the property of the buyer as liquidated damages for buyer's expense of weighting, 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 his discretion may assay a limited number of samples without charge.

(ii) Ores assaying 0.10% UsOs up to 0.15% price of $0.30 per pound of contained U Os for 0.10% ore, plus $0.30 per pound for each 0.01% above 0.10% UsO, up to (but not including) 0.15%. (Example: The contained UзO, in an ore assaying 0.13% UsOs per ton would be paid for at $0.30+(3X0.30)=$1.20 per pound.)

(iii) Ores assaying 0.15% UsOs and more: base price of $1.50 per pound U.O content, plus a "development allowance" (at seller's option) of $0.50 per pound, or a total of $2.00 per pound U.Os content.

(c) Assays shall be adjusted to the nearest 0.01% for purposes of payment.

NOTES: 1. The "development allowance" of $0.50 per pound of USO contained in ores assaying 0.15% U2O, or more, is offered by buyer in recognition of the expenditures necessary for maintaining and increasing the developed reserves of uranium ores. Sellers accepting this allowance are deemed to agree to spend such funds for the development or exploration of their properties. Sellers delivering less than 1,000 short tons per calendar year will not be required to submit an accounting record of expenditures for development or exploration pursuant to this agreement but sellers delivering in excess of 1,000 short tons per calendar year will be required, under the terms of their contracts, to submit proof satisfactory to the Commission that funds equivalent to the amount received as development allowance have been spent for development or exploration during the contract period or within six months thereafter.

2. Commitments by the Commission to accept delivery of ores are limited to the provisions of this section, as amended from time to time, or to written contracts between the Commission and sellers. Other commitments purporting to be made by the Commission's field personnel or other agents of the Commission will not bind the Commission unless they are in accord with the provisions of this circular or other official circulars.

3. Weights are avoirdupois dry weight; tons are short tons (2,000 pounds per ton). [Circ. 3, 13 F. R. 2090. Redesignation noted at 14 F. R. 695]

§ 60.4 Temporary additional allowances, Colorado Plateau area carnotitetype and roscoelite-type ores-(a) Additional allowances. In addition to the guaranteed minimum prices specified in § 60.3 (Circular No. 3) issued April 9, 1948, the relevant terms and conditions of which are hereby incorporated in this section by reference, the Commission will

pay the allowances specified in paragraph (b) of this section in connection with the delivery of carnotite-type or roscoelite-type uranium-bearing ores at the Commission's established purchase depots in the Colorado Plateau area.

(b) Allowances specified. The following allowances are specified:

(1) A haulage allowance of 6¢ per ton mile for transportation of ore 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.

(2) An allowance of 50¢ per pound for uranium oxide (UO) contained in ores assaying 0.20% or more UsOs, in addition to the development allowance provided for in § 60.3a (Schedule I).

(c) Inquiries. All inquiries concerning the provisions of this section, offers to deliver ores, or questions about the Commission's uranium program in the Colorado Plateau area should be addressed to:

United States Atomic Energy Commission, Post Office Box 270,

Grand Junction, Colorado,

Telephone: Grand Junction 3000. (d) Effective date. The allowances provided for in this section will become effective June 1, 1948 and will be in effect until July 1, 1949, and shall, during this period, constitute guaranteed minimum prices in addition to those specified in § 60.3.

[Circ. 4, 13 F. R. 3339]

Part 70-Definition of Fissionable Material

§ 70.1 Uranium 233. The Commission has determined pursuant to section 5 (a) (1) of the Atomic Energy Act of 1946 that the isotope Uranium 233 is a material capable of releasing substantial quantities of energy through nuclear chain reaction of the material. Accordingly, the isotope Uranium 233, and any material artificially enriched thereby, constitutes a "fissionable material" within the meaning of the Atomic Energy Act of 1946.

(60 Stat. 755-775; 42 U. S. C. 1801-1819. Interprets or applies sec. 5 (a) (1), 60 Stat. 760; 42 U. S. C. 1805 (a) (1) [13 F. R. 2220]