Calendar Year 2016 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

December 1, 2015

In Reply Refer To:
2800/2880/2920 (350) P

EMS TRANSMISSION 12/09/2015

Instruction Memorandum No. 2016-025       

Expires:  09/30/2019

To:                   All Field Office Officials

From:              Assistant Director, Energy, Minerals and Realty Management 

Subject:           Calendar Year 2016 Right-of-Way Cost Recovery Fee Schedule and Strict Liability Amount

Program Area:  Rights-of-Way Management and Land Use Authorization Management

Purpose:  This Instruction Memorandum (IM) transmits the Bureau of Land Management (BLM) Calendar Year (CY) 2016 Cost Recovery Processing and Monitoring Fee Schedule (Attachment 1) and updates the strict liability amounts for CY 2016.  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), from the second quarter of the previous year through the second quarter of current year  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.   The adjustment factor based on the percentage change for the IPD-GDP from the second quarter CY2014 through the second quarter CY2015 is 1.010.

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) and 43 CFR 2886.13(b)(3), the updated maximum amount for calendar year 2016 is $2,520,000.  This reflects the Consumer Price Index-Urban increase of 0.170 percent for the period of July 2014 through July 2015.

Timeframe:  This IM is effective January 1, 2016.

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(a) and 2885.24(a) 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 2016 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) and 2886.13(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(b)(3) and 2886.13(b)(3)).

Manual/Handbook Sections Affected:  This IM affects BLM Manual Section 2800 and 2880 Rights-of-Way.  The BLM will include this interim policy when next revised.

Coordination:  The Division of Lands, Realty and Cadastral Survey (WO-350) coordinated preparation of this IM with the National Renewable Energy Office (WO-301)

Contact:  If you have any questions concerning the content of this IM, please contact me at   202-208-4201, or your staff may contact Michael Stiewig, Division Chief, Lands, Realty and Cadastral Survey (WO-350) at 202-912-7350; Stephen Fusilier, Branch Chief, ROW (WO-350) at 202-912-7148 or sfusilier@blm.gov; or Erica Pionke, Realty Specialist (WO-350) at 202-912-7219 or epionke@blm.gov.

Signed by:                                                                   Authenticated by:

Michael Nedd                                                             Robert M. Williams
Assistant Director                                                       Division of IRM Governance,WO-860
Energy, Minerals and Realty Management

1 Attachment

    1 - Calendar Year 2016 Cost Recovery Processing and Monitoring Fee Schedule (1 p)