Credit Distribution Examples

General requirements and helpful information to obtain prior to filling out the form.

It is always best to obtain from your records or from MCI, details of the banked credits and the associated report.

1. View your client report and identify which claim(s) have reserve and how much credit is needed to withdraw in order to keep claims active.
   

2. Find the work transaction number by viewing the reserve information under "Active Claims" in MCI.
   

3. Check the work dates of the original banked work against the recording date of the claims to ensure all claims (including claims that provide a contiguous link) are recorded prior to the work being performed and completed. You can search for "Work Reports" in MCI if you have the "W." number (i.e.: W0380.00089) which is obtained from the search listed as item 2 above.

This is an example summary of the information found:

Claims identified with reserve: SSM1186543 ($1,810), SSM1186544 ($4,717), SSM1186552 ($3,010), SSM1186557 ($4,717). Each claim requires $400 per unit per year.

Associated transaction number: W9750.05555

All claims listed above are on the original report, therefore no claims are identified as being recorded after the work, therefore they are eligible to receive credit.

The following is an example of the completed form where credits are being withdrawn from each claim and applied onto themselves for one year. The recorded holder of the claims has filled out and signed the application.

A second example is provided to indicate a bank withdrawal from one claim. The credit is being applied to the claim with reserve and assigned to other contiguous claims. The agent authorized in writing has filled out and signed the application and has provided a sketch showing the contiguous claims.

A third example is provided to indicate a distribution of credit among 6 contiguous claims of which EZ Mining has an option agreement on 5 and Dave Hopeful holds the last claim (798966). The maximum amount allowed is applied to each claim except for claim 1186552 and 1186543. A sketch showing the contiguous claims is included.

Example of a contiguity sketch

Important information to note

• Keep track of the claim reserve with respect to any given assessment work report.
• Keep track of the claim's work assignments for the year to ensure not to exceed what is allowed. ($24,000 up to a maximum of $96,000 based on the size of the claim/lease or patent).
• Every time a reserve is withdrawn, the assessment credits are depleted from the reserve with respect to a particular work report number.
• A claim's reserve can be depleted prior to that claim's anniversary date and allowed to cancel. Even if the claim is in work report pending status with no credits applied to it, the claim may in fact cancel on its due date.
• A claim reserve is not applied automatically to the claim.