Calendar Year 2013 Right-of-Way Cost Recovery Fee Schedule and Strict Liability Amount

UNITED STATES DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT
WASHINGTON, D.C. 20240
http://www.blm.gov

November 2, 2012

In Reply Refer To:

2800/2920 (350) P

EMS Transmission 11/07/12

Instruction Memorandum No. 2013-010

Expires: 09/30/2014

To:                   All Field Officials

From:               Assistant Director, Minerals and Realty Management

Subject:           Calendar Year 2013 Right-of-Way Cost Recovery Fee Schedule and Strict Liability Amount

Program Area: Right-of-Way Management and Land Use Authorization Management.

Purpose: This Instruction Memorandum (IM) transmits the Bureau of Land Management (BLM) Calendar Year (CY) 2013 Cost Recovery Processing and Monitoring Fee Schedule (Attachment 1) and updates the strict liability amounts for CY 2013. The BLM updates the cost recovery fees annually in accordance with the right-of-way (ROW) regulations. All field offices must use the new cost recovery fees for the processing of applications and monitoring of grants and land use authorizations pursuant to the Federal Land Policy and Management Act (FLPMA) and Mineral Leasing Act (MLA). Separate decisions are necessary to determine the appropriate cost recovery category for processing actions and the appropriate category for monitoring actions. The BLM also updates strict liability amounts annually in accordance with the ROW regulations. 

Policy/Action: The ROW regulations at 43 CFR 2804.14(c), 2805.16(b), 2884.12(c), and 2885.24(b) state that the BLM will adjust cost recovery processing and monitoring fees annually based on the previous year’s change in the Implicit Price Deflator-Gross Domestic Product Index (IPD-GDP), which increased 1.017 percent from the second quarter of CY 2011 through the second quarter of CY 2012. The regulations at 43 CFR 2920.6(b), require the reimbursement of costs for land use authorizations using the provisions contained in the ROW regulations.   

Field offices will reproduce the schedule locally and make copies available to applicants, ROW grant holders, and other interested parties as appropriate or as requested. The cost recovery fee schedule is posted on the BLM external website under the ROW section of the Lands, Realty and Cadastral Survey page at http://www.blm.gov/wo/st/en/prog/more/lands.html.

In accordance with Strict Liability regulations at 43 CFR 2807.12 (b)(3), the updated maximum amount for calendar year 2013 is $2,420,000.  This reflects the Consumer Price Index-Urban  increase of 1.4 percent for the period of July 2011 through July 2012.

Timeframe: This IM is effective January 1, 2013.

Budget Impact: The application of this policy will have no impact on the budget.  This increase is intended to be budget-neutral.

Background:

Cost Recovery.  Both the FLPMA and MLA authorize the BLM to collect fees in advance for the administrative and other costs incurred in processing applications for use of public lands and the subsequent monitoring when the authorization is issued. The ROW regulations at 43 CFR 2804.14(a), 2805.16(a), 2884.12(c) and 2885.23(b) established a cost recovery processing and monitoring fee schedule that became effective June 21, 2005. The BLM updates this schedule annually as described above. The CY 2013 Cost Recovery Processing and Monitoring Fee Schedule is attached. In addition, the processing and monitoring project codes established by Washington Office IM 2006-235, Establishment of Project Codes for Tracking Cost Recovery Fees in Subactivity 5102, must continue to be used to facilitate the appropriate tracking of bureau costs.

Strict Liability.  A ROW holder is strictly liable for any activity or facility associated with their ROW area that the BLM determines presents a foreseeable hazard or risk of damage or injury to the United States.  The BLM will specify in the grant any activities or facility posing such hazard or risk and the financial limitations on damages commensurate with such hazard or risk (43 CFR 2807.12(b)).  The BLM updates this amount each year to account for “changes in the Consumer Price Index for All Urban Consumers, US City Average as of July of each year” (43 CFR 2807.12 (3)).

Manual/Handbook Sections Affected: This IM affects BLM Manual Section 2800, Rights-of-Way, and Manual Section 2880, Oil and Natural Gas Pipelines.  The BLM will update the manual to reflect this IM during the next revision.

Coordination: The Washington Office Lands, Realty and Cadastral Survey Branch coordinated preparation of this IM with the National Renewable Energy Coordination Office.

Contact: If you have any questions concerning the content of this IM, please contact me at (202) 208-4201, or your staff may contact Kim Berns, Division Chief, Division of Lands, Realty and Cadastral Survey (WO-350) at (202) 912-7350, Lucas Lucero, Branch Chief, ROW (WO-350) at (202) 912-7342 or LLucero@blm.gov, or Michael Sarich, Realty Specialist, (WO-350) at (202)912-7341 or msarich@blm.gov.  

Signed by:                                                                   Authenticated by:

Micheal Nedd                                                               Catherine Hope Emmett

Assistant Director                                                          Division of IRM Governance, WO-560

Minerals and Realty Management

1 Attachment

      1 – CY 2013 Cost Recovery Processing and Monitoring Fee Schedule (1 p)