SEC. 10. Compensation and expenses. The Defense Transport Administration will not pay compensation to, or the expenses of, any member of an industry advisory committee in connection with his services on such committee.

SEC. 11. Report of committee meetings. Within one week after the date of a meeting of a Defense Transport Administration industry advisory committee, the Chairman shall file with the Executive Assistant, the information called for on the attached Form EA-9.

12. Terminating

committees.

SEC. When the Chairman considers that an industry advisory committee has served its purpose and is no longer required, he shall recommend the termination of the committee. Such recommendation shall be made on the attached Form EA-10. The Administrator, Defense Transport Administration, will notify the committee members of the termination of the committee.

SEC. 13. Revocation. Administrator's Memorandum No. 4, issued on January 20, 1951, is hereby revoked. Industry Advisory Committees established pursuant thereto are hereby terminated.

(Form EA-7) DEFENSE TRANSPORT ADMINISTRATION

· WASHINGTON 25, D. C.

REQUEST FOR CLEARANCE AND APPROVAL OF THE ESTABLISHMENT OF A DTA INDUSTRY AD

VISORY COMMITTEE

(This request is to be filed in duplicate with the Executive Assistant sufficiently in advance of the anticipated establishment of the committee to permit orderly following of the necessary procedures for clearance and approval.)

Responsible DTA Division or Unit:
Responsible DTA officer or employee:
Title

Room No.

Roster of Membership: Please attach roster of proposed membership, giving for each member his business affiliation, his specific position, and his full mailing address. Furnish a statement to the effect that the proposed committee will be representative of the Industry or other interests concerned, and attach adequate supporting data to Justify the conclusion that the committee is truly representative.

List of Government agency representatives: Please attach a list of Government agency representatives who are to attend committee meetings, giving for each his agency and title.

Use of classified material: Please indicate the security classification of any material which will be made available to the proposed committee. Also, please indicate the probable classification of any report or other document to be prepared by members of the committee.

Material Used by the Committee
Unclassified.

Restricted-Security Information.
Confidential Security Information.
Secret Security Information.

Top Secret Security Information.
Material To Be Prepared by Committee
Unclassified.

Restricted Security Information.
Confidential-Security Information.
Secret Security Information.

Top Secret Security Information. Letter of invitation: Please submit with this request a draft of the letter for the Administrator's signature which it is proposed to send out to the individual members inviting them to serve on the proposed committee and to attend its first meeting.

Agenda: Please attach a copy of the agenda which is proposed to be used at the first meeting of the committee.

Related Documents: Please attach copies of the documents proposed to be issued in advance of the first meeting, or at the first meeting, of the committee.

Date

Telephone No.

Letter of call: Please attach for clearance a draft of the letter which is to be used to call the proposed meeting and a list of the names of the persons who are to be invited to attend the meeting.

Agenda: Please attach a copy of the agenda to be used in the conduct of the meeting.

Related Documents: Please attach copies of the documents to be issued in advance of the meeting or at the meeting.

Will classified material of a classification higher than that for which the advisory committee has been cleared for security be discussed at the proposed meeting?

Related Documents: Please attach copies of any documents issued at the meeting or following the meeting. Where these documents have been filed with the Advance Notice of the meeting, they need not be filed again.

Minutes: Please attach a copy of the minutes of the meeting, as well as any report or document prepared as a result of the meeting.

List of attendance: Please attach a list of the actual attendance at the meeting, giving for each member his business or professional affiliation, his specific position, and his mailing address.

List of Government agency representatives: Please attach a list of Government agency representatives who actually attended the meeting, giving for each such attendant his title and agency.

7. Ratio of contributions.

8. Operator's property rights. 9. Allowable costs.

10. Repayment by operator.

11. Government not obligated to buy. 12. Title to and disposition of property.

AUTHORITY: Sections 1 to 12 issued under sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. 2154. Interpret or apply sec. 303, 64 Stat. 801, as amended; 50 U. S. C. App. 2093; E. O. 10480, 18 F. R. 4939, 3 CFR, 1953 Supp.

SOURCE: Sections 1 to 12 contained in DMEA Order 1, amended, 19 F. R. 1563, Mar. 23, 1954, except as otherwise noted.

EXPLANATORY PROVISIONS

SECTION 1. What this order does. This order sets forth procedures and regulations for obtaining Government aid in financing the cost of projects for exploration for indicated or undeveloped sources of strategic or critical metals and minerals.

SEC. 2. Definitions. As used in this order:

(a) "Exploration project" means the search for indicated or undeveloped sources of strategic or critical metals or minerals within a specified area or parcel of ground in the United States, its terri

tories or possessions, whether conducted from the surface or underground, including recognized and sound procedures for obtaining pertinent geological, geophysical, and geochemical information. The work shall not go beyond a reasonable delineation and sampling of the ore, and shall not include work prosecuted primarily for mining or preparation for mining.

(b) "Operator" means a person, firm, partnership, corporation, association, or other legal entity by whom or for whose account and interest an exploration project is to be carried out.

(c) "Administrator" means the Administrator of Defense Minerals Exploration Administration, or his representative authorized in writing.

(d) "Government" means the United States of America.

APPLICATIONS

SEC. 3. Form and filing. An application for aid in any specified exploration project must be in quadruplicate on forms which may be obtained from and filed with either:

The Defense Minerals Exploration Administration, Department of the Interior, Washington 25, D. C.

or the nearest Defense Minerals Exploration Administration field executive officer as indicated by the following addresses:

Area Served and Address

Region I: Northwest District-Idaho, Montana, Oregon, and Washington, South 157, Howard Street, Spokane 4, Wash. Alaska District-Alaska, Bureau of Mines, P. O. Box 560, Juneau, Alaska.

Region II: California and Nevada-Bureau of Mines, 1605 Evans Avenue, Reno, Nev.

Region III: Arizona, Colorado, Nebraska, New Mexico, North Dakota, South Dakota, Utah, and Wyoming-Bureau of Mines, 224 New Customhouse Building, Denver 2, Colo. Region IV: Arkansas, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, and TexasP. O. Box 431, Joplin, Mo.

Region V: Alabama, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia, and Wisconsin-Room 13, Post Office Building, Knoxville 2, Tenn.

[DMEA Order 1, amended, 19 F. R. 1563, Mar. 23, 1954, as amended by Amdt. 2, 20 F. R. 1698, Mar. 22, 1955]

Each

SEC. 4. Scope of application. application shall relate to and fully describe the exploration project, which shall be justified by detailed substantiating data as called for by the application form. The Administrator may require the filing of additional information, reports, maps or charts, and exhibits, in connection with the application, and may require such physical examination of the project as he deems necessary.

SEC. 5. Action on applications. If the application is approved, the Government, acting through the Administrator, will enter into an exploration project contract with the applicant upon such terms and conditions as are set forth in the contract form which the Administrator will supply. Exploration projects estimated to require more than two years to complete will be approved only if justified in the opinion of the Administrator by special circumstances.

SEC. 6. Criteria. The following factors will be considered and weighed in passing upon applications:

(a) The strategic importance of the mineral involved.

(b) The geologic probability of making a significant discovery.

(c) The availability of manpower, materials, supplies, equipment, water, and power.

(d) The accessibility of the project. (e) The operating experience and background of the applicant.

project, depending upon the mineral or minerals which are the subject of exploration, as follows:

(a) In the case of bauxite, chromium, copper, fluorspar, graphite (crucible flake), lead, molybdenum, zinc, and cadmium-50 percent.

(b) In the case of antimony, asbestos (chrysotile only), beryl, cobalt, columbium, corundum diamonds (industrial), kyanite (strategic), manganese, mercury, mica (strategic), monazite and rare earths, nickel, platinum-group metals, quartz crystals (piezo-electric), rutilebrookite, talc (block-steatite), tantalum, thorium, tin, tungsten, and uranium-75 percent.

(c) In the event that two or more of the minerals named in this section are the subject of the proposed exploration, the allowable percentage shall be apportioned between them.

SEC. 8. Operator's property rights. The operator must have, preserve, and maintain a sufficient interest in the land, as owner, lessee, or otherwise, for the purposes of the exploration project contract: Provided, That the Administrator may waive any deficiencies in the operator's interest in the land when he finds such action to be in the best interest of the Government. The operator shall devote the land and all existing improvements, facilities, buildings, installations, and appurtenances to the purposes of the exploration project without any allowance for the use, rental value, depreciation, depletion, or other cost of acquiring, owning, or holding possession thereof.

SEC. 9. Allowable costs. (a) The Government, to the extent provided in the exploration project contract, will contribute to the necessary, reasonable, direct costs of performing the exploration work, including: The costs of labor, supervision, and consultants; operating materials and supplies; operating equipment; any necessary initial rehabilitation or repairs of existing buildings, installations, fixtures, and operating equipment; any necessary buildings, fixed improvements, or installations; repairs and maintenance, analytical work, accounting, payroll deductions for the account of the operator, and liability insurance covering employment; payments by the operator to independent contractors; costs estimated and agreed upon by the operator and the Government in terms of units of work performed (per

foot of drifting, per foot of drilling, etc.); and such other necessary, reasonable, direct costs as may be approved by the Government in the course of the work.

(b) No costs of acquiring, owning, or holding possession of the land, and no items of general overhead, corporate management, interest, taxes (other than payroll and sales taxes), or work performed or costs incurred before the date of the contract, shall be allowed as costs of the contract in which the Government will participate.

(a)

SEC. 10. Repayment by operator. If the Government considers that a discovery or development from which production may be made has resulted from the work, the Government, within the time limited by the contract, may so certify in writing to the operator. Such certification shall describe broadly or indicate the nature of the discovery or development.

(b) The operator shall pay to the Government a royalty on all minerals mined or produced from the land described in the contract: (1) Regardless of any certification of discovery or development, from the date of the contract until the lapse of time within which the Government may make such certification, or until the total net amount contributed by the Government without interest is fully repaid, whichever occurs first; or (2) if the Government makes a certification of discovery or development, within ten years (or other period fixed by the contract) from the date of the contract, or until the total net amount contributed by the Government is fully repaid, whichever occurs first.

(c) The Government's royalty shall be a percentage of the gross proceeds (including any bonuses, premiums, allowances, or other benefits) from the production sold, in the form sold (ore, concentrates, metal, or equivalent), at the point of delivery (the f. o. b. point); except, that charges of the buyer arising in the regular course of business, and shown as deductions on the buyer's settlement sheets, on account of the cost of treatment processes performed by the buyer, sampling and assaying to determine the value of the production sold, and freight paid by the buyer to a carrier (not the operator), shall be allowed as deductions in arriving at the "gross proceeds" as that term is used herein. Any costs of treatment processes, sampling or assaying, or transportation, performed

(d) If any production (ore, concentrates, metal, or equivalent), after the lapse of six months from the date the ore was extracted from the ground, remains neither sold nor used by the operator in integrated manufacturing or fabricating operations (for instance, if it is stockpiled), the Government, at its option, as long as it so remains, may require the computation and payment of its royalty on the value of such production in the form (ore, concentrates, metal, or equivalent) it is in when the Government elects to require computation and payment. If any production is used by the operator in integrated manufacturing or fabricating operations before the Government makes its election, the Government's royalty on such production shall be computed on the value thereof in the form in which and at the time when it is so used. "Value" as here used means what is or would be gross income from mining operations for percentage depletion purposes in Federal income tax determination, or the market value, whichever is greater.

(e) The percentages of the Government's royalty shall be as follows:

One and one-half (12) percent of amounts ("gross proceeds" or "value") not in excess of eight dollars ($8.00) per ton of production in the form in which sold, held, or used, plus one-half (1⁄2) percent for each additional full fifty cents ($0.50) by which such amounts exceed eight dollars ($8.00) per ton, but not in excess of five (5) percent of such amounts.

(For instance: The royalty on an amount of five dollars ($5.00) per ton, would be one and one-half (12) percent; on an amount of ten dollars ($10.00) per ton, three and one-half (32) percent.)

(f) To secure the payment of the Government's percentage royalty, the contract shall provide for a lien upon the land or the operator's interest in the land