Non-Linear Land Use Authorization Rent Schedule up to 25 Acres

                                                     December 21, 2020

In Reply Refer To:
2800/2880/2920 (CA-930) P

EMS TRANSMISSION 12/23/2020
Instruction Memorandum No. 2021-004    
Expires: 9/30/2025

To:             District Managers, Field Managers, and Realty Specialists

From:        State Director

Subject:    Non-Linear Land Use Authorization Rent Schedule up to 25 Acres 

Program Area: Lands and Realty Program 

Purpose: This Instruction Memorandum (IM) provides guidance and implements the Rent Study and Rental Schedule for BLM Land Use Authorizations - Tracts of Land up to 25 Acres for the State of California Districts (rent schedule).

Policy/Action: Section 102(9) of the Federal Land Policy and Management Act of 1976, as amended states, “The United States receive fair market value of the use of public lands and their resources,” and Section 185(l) of the Mineral Leasing Act of 1920, as amended states, “The applicant … and the holder of a right-of-way or permit … shall pay annually in advance the fair market rental of the right-of-way or permit, as determined by the Secretary or agency head.”

The Bureau of Land Management (BLM) realty staff will use the attached rent schedule to determine the rent for land use authorizations, primarily for 2920 permits under 43 CFR 2920 regulations, and when applicable for non-linear right-of-way (ROW) grants under 43 CFR 2800 and 2880 regulations for site-specific projects up to 25 acres.  This rent schedule is to be used for authorizations that are without existing rent schedules and where individual appraisals are not economically warranted.  The intent of this rent schedule is to provide a fair and reasonable market valuation for rent, implement sound business management principles by streamlining the authorization process, and provide a uniform rent approach.  

The realty staff will calculate the rent by using the appropriate district office table labeled Annual Rental Schedule For BLM Land Use Authorizations Tracts of Land Up to 25 Acres, select the appropriate county or counties, identify the acreage range, and select the severity of the impact to arrive at the annual rent for the authorized use.

If the authorization is less than 12 months, then the realty staff will prorate the rent using a part-year factor.  For example, the annual rent for moderate use within the acreage range of .01-5 acres in Butte County is $751.27.  The authorization is for six months.  The part-year factor for 6 months is 0.5000 multiplied by $751.27 = $375.64.  If the authorization is more than one year, rent should be adjusted starting with calendar year 2021 by using the 2.1% IDP-GDP adjustment discussed in the rent schedule.  The calculation for rent cannot be less than one month.

Although this rent schedule does not apply to linear ROW, this rent schedule may be appropriate for areal (small site) uses authorized separately from the primary linear ROW as described in MS 2806.10 and 2885.16.  Examples of areal use could include metering stations along pipelines, substations for transmission lines, regenerating sites for fiber optic lines, cathodic protection site, or temporary use permits for staging.  The rent schedule is not intended for filming, linear ROWs, solar, wind, communication sites, special recreation use permits, mineral, hydroelectric, geothermal, oil and gas, or related uses, which already have established rent schedule or requires a separate appraisal.

Realty staff should exercise reasonable judgment in assessing the impact to the proposed use to determine the rent.  The rent schedule and memo from Appraisal and Valuation Services Office (AVSO) should be read before determining the rent.  The case file must be documented with a description of how the rent was determined.  Decisions issued to the holder should clearly explain how rent was established.  

The BLM Headquarters Office provides guidance to use the Land and Realty Authorization Module to generate the initial Courtesy Statement for cost recovery and the initial rent, and to generate Accounts Receivable for subsequent bills.  

Realty staff must enter the rent determination in LR2000 by using Action Code 315 Rental Rate Det/Adj. The decision for the rental rate determined date is the same date as the authorization issued (permit, temporary use permit, or short-term ROW grant) for the action date. In the action remarks column, the rent amount must be entered (i.e., $375.64;) and the term after the semi-colon (i.e. 6MOS).   

This rent schedule is publicly available.  The review completed by AVSO in support of the schedule is an internal document and the public may request it in accordance with the Freedom of Information Act. 

The holder has the right of appeal on rental decisions in accordance with 43 CFR 4.

Timeframe:  This IM is in effect on the date of issuance.  The rental schedule will remain in effect until replaced by an updated schedule.  It is recommended this schedule be updated with the next NASS Census data publication in 2022 for billing in 2026.

Budget Impact:  This schedule reduces the costs for individual appraisal and time to process and manage a case.  Applications affected by this guidance are subject to cost recovery, unless exempt. 

Background:  Individual appraisal reports for small non-linear ROWs, under most circumstances, exceed the amount of rent collected and increase the processing time and the administrative burden.  By using the rent schedule, the BLM can improve customer service, reduce costs, and streamline processes.  

Manual/ Handbook Sections Affected:  This IM replaces IM No. CA-2015-007 and affects sections at 43 CFR 2920, 2800 and 2880.

Coordination: Appraisal and Valuation Services Office (AVSO), California State Office, Division of Natural Resources, External Communications and Solicitor’s office. 

Contact:  Janet Eubanks, Realty Specialist at 951-697-5237 or Erik Pignata, Realty Specialist at 916-978-4655.

Signed by:                                                                                                 
Karen Mouritsen                                                                                
State Director                                                        

Authenticated by:
Larry Weitzel
GIS/Applications Mgmt. Branch, CA-946

2 Attachments
           1-    Rent Study and Rental Schedule (update) for BLM land Use Authorization Tracts of Land up to 25 acres dated July 24, 2020, prepared by Joshua Robinson, AVSO (32pp)
           2-    AVSO General Memo for Minimum Rent dated July 28, 2020 (5pp)