Before a lease may be issued, the lessee must furnish a bond in an amount determined by the BLM to ensure compliance with all the lease terms and conditions. At a minimum, a bond is required to cover the remaining balance of the bonus bid, one year of advanced rental, and one year of advanced royalty if the lease is subject to advance royalty. If the lease is producing, bond covers one year rental, reminder of bonus bid plus three months royalty payments. All bonds are rounded up to the next $1,000 but in no case less than $5,000. Bonding for reclamation is required under the lessee's mining permit authorized under the Surface Mining Control and Reclamation Act of 1977 and issued by OSM. Your bond with the BLM could include provisions for protection of the environment. The BLM may require a change, either higher or lower, on the bond amount at any time conditions warrant such a change.
The bond requirement may be met by corporate surety bonds, cash bonds, or personal bonds that are accompanied by negotiable Treasury securities, and cashier's check or certified check.