Rent for Non-linear Rights-of-Way and Permits

CA IM-2015-007
Instruction Memorandum

November 5, 2014

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

EMS TRANSMISSION:  11/5/2014
Instruction Memorandum No. CA-2015-007
Expires: 09/30/2018

To:                   All BLM-CA District Managers and Field Managers
                          Attention:  All BLM-CA Realty Specialists

From:              State Director

Subject:           Rent for Non-linear Rights-of-Way and Permits

The Division of Lands, Minerals and Cadastral Survey, Washington Office (WO-350), requested the Office of Valuation Services (OVS) to prepare a nationwide rental fee schedule to reduce the need and expense of requesting individual appraisals to determine rent for the various types of land use authorizations provided under Section 302, and when applicable, under Section 504 of the Federal Land Policy and Management Act of 1976, as amended. 

The Regulation at 43 CFR § 2920.8 directs the BLM to collect rent based either upon the fair market value of the rights authorized in the land use authorization or as determined by competitive bidding.  The Regulation at 43 CFR § 2806.50 directs the BLM to establish fair market rent for right-of-way grants that are not appropriate under the linear or communication site schedules.  In no case shall the rental be less than fair market value.

In accordance with the above regulations, OVS completed the attached 2014 LAND USE AUTHORIZATION RENT STUDY - Small Uses up to 25 Acres (schedule) that provides a rental fee for land use authorizations/non-linear rights-of-ways for each of California’s District and Field Offices to maintain a consistent approach to determining fees for annual rentals for minimum land use authorizations on Federal lands throughout the state for areas of 25 acres or less.  The nationwide template schedule utilizes the National Agricultural Statistical Service’ (NASS) that report agricultural land values by state and county and is published every 5 years.  OVS used the latest report and adjusted the values to appropriately reflect public land rent values.  For a more detailed explanation of how the rent values were derived, please read the attached schedule and accompanying OVS memorandum.

The OVS organized the schedule by the District Office and counties under that District Offices’ jurisdiction.  Each county has a per acre rent value that is adjusted depending on the intensity of the use by 50 percent for minimum impact, 75 percent for moderate impact, and 100 percent for high impact.  The Realty Specialist will select the appropriate county, identify the range of acreage the use falls within, and select the severity of the impact to arrive at the estimated annual rental for the proposed use.  The San Bernardino County agricultural land value per acre is considerably higher than agricultural land values in other California counties.  This county is large and diverse so the estimated rent value may be more applicable in some areas than others.  Exercise caution and reasonable judgment in assessing the location and impact to proposed rental sites in this county. 

The examples provided under the minimum, moderate or high impact uses are not inclusive.  The  Realty Specialist may use the schedule for any use that is determined appropriate, for example, to resolve certain trespass issues or apiary sites.  Again, the Realty Specialist must exercise discretion in assessing the impact to the proposed rental sites.  While the schedule provides exact values within the acreage ranges, there is great leeway to interpret the category of use and degree of impact.  If the values are low or high compared to previous annual rents, the Realty Specialist may consult with OVS or request a formal appraisal through the Interior Valuation Information System (IVIS). 

This schedule is not intended for filming, linear right-of-ways, special recreation use permits, mineral, hydroelectric, geothermal, oil and gas or related uses that may require a higher annual rent or have established schedules.

The BLM realty staff will use the schedule to administratively establish the rental rates to charge for non-linear rights-of-way and permit authorizations located in rural and/or low intensity land use areas where individual appraisals are not economically warranted.  By using the schedule, the BLM will provide consistent and fair values to the public for the use of Federal lands and the BLM and the OVS will save time and a substantial amount of appraisal costs. 

This office requests constructive feedback throughout the first year of implementation to provide OVS with comments to improve this schedule where necessary.  After the first year, it is recommended that the BLM update this schedule upon the 2019 publication of the NASS report. 

If you have any questions or wish to provide feedback, you may contact Janet Eubanks, California State Office Realty Specialist, at (916) 978-4674; or Thomas Pogacnik, Deputy State Director, Division of Natural Resources, at (916) 978-4637.
 

Signed By:                                                                                         
James Kenna                                                                                      
State Director                                                                                     

Authenticated By:
Cynthia Diezel
Admin Support Assistant

Attachment  – 1
 1-   Land Use Authorization Rent Study (24 pp)

cc:       Douglas D. Braun, MAI
            Acting BLM Client Service Manager
            DOI - Office of Valuation Services
            1220 SW 3rd Ave., 10th Floor
            Portland, OR  97204-2825
            WO-350 (Buhler)