[meteorite-list] BLM Law vs Type Sample

From: Michael Mulgrew <mikestang_at_meteoritecentral.com>
Date: Wed, 3 Oct 2012 10:23:55 -0700
Message-ID: <CAMseTy3vEWcz91-nQkwKh05H9+b0qV0GKOVB1=WuN+=ZUrxraw_at_mail.gmail.com>

List,

I approached the BLM for clarification on two specific points: 1)
Casual trading of meteorites for other meteorites between individuals
and institutions, and 2) Donation/trade of a type specimen for
classification purposes. Please allow me to share the results of that
inquiry.

On item 1, casual trading, I was informed by Lucy Kuizon, BLM National
Paleontologist, "...the BLM uses the definition of ?barter? as
formally described by the Internal Revenue Service (IRS). There are
several types of barter, some of which requires the filing of forms to
report certain types of exchanges that are considered by the IRS to be
reportable income by both parties in the exchange. Usually these
parties are small businesses or sole proprietors. Here is an IRS link
for reference: http://www.irs.gov/uac/Four-Facts-About-Bartering"

Further, she stated [non-commercial trading was a term I used in my
initial inquiry], "...?non-commercial trading of meteorites? where (1)
it is a one-on-one trade or exchange, and (2) there is no IRS
reporting requirement for tax purposes, this is appropriately part of
casual or hobby collecting. This is considered personal non-commercial
use."

As casual collectors we can all continue to trade meteorites we find
on public lands for other meteorites as part of the hobby we all
enjoy. These trades can no longer include cash, as may be the case
for commercial trades, otherwise a permit from the BLM would be
required per 43 CFR 2920 regulations.

With respect to item 2, type specimens, she wrote:

"Your description of ?type specimen? is a type of ?exchange? that is
benefitting the science of meteorites. Let me address that concept
in each of the type of collecting scenarios. First, under true casual
collecting, that is, for non-commercial personal use and no exchange
of cash or income-type services, that type of exchange is allowable,
and may be considered a donation to the educational or scientific
institution. Under the scientific collecting permit, this type of
exchange is a little more complex and is not really acceptable. The
institution that recovers the meteorite must certify that the
meteorite will be curated in that institution in perpetuity. The
meteorite is considered federal property under the federal property
and accounting laws and regulations. The concept of removing a piece
of the meteorite in payment for the services of the agent who recovers
it is not a typical action we would allow for other scientifically
important resources we issue permits for on public lands, such as
cultural artifacts and paleontological resources. Lastly, under a
commercial permit, yes, that type of exchange is acceptable, but
probably would need to be factored into the fees and rental that would
be calculated for the permit. It may possibly lower the amount of the
rental being charged. But, that would be at the discretion of the
state appraiser. The meteorite professional must communicate this type
of exchange clearly to the BLM when applying for a commercial permit
because of the influence on the estimate of the rental fees."

I replied back that a type specimen would not really be applicable
under a scientific collecting permit since the institution will be
receiving 100% of the recovered meteorites for study and curation.

So good news, we can still trade our meteorites and are still able to
donate type specimens for classification purposes. I hope this helps
keep a little piece of the sky from falling.

Best,
Michael in so. Cal.
Received on Wed 03 Oct 2012 01:23:55 PM PDT