Tracking Tasks and Time Associated with Processing Cost Recoverable Solid Leasable Minerals Projects

3425 (922) P
December 9, 2014
EMS TRANSMISSION: 12/12/2014

Instruction Memorandum No. WY-2015-016
Expires: 9/30/2016

To: District Managers

From: Deputy State Director, Minerals and Lands

Subject: Tracking Tasks and Time Associated with Processing Cost Recoverable Solid
Leasable Minerals Projects

Program Area: Coal and Other Solid Leasable Mineral Actions

Purpose: The purpose of this Instructional Memorandum (IM) is to summarize how tasks and
time associated with cost recoverable Solid Leasable Minerals projects will be tracked.

Policy/Action: Competitive coal leasing, coal lease modifications, formation of logical mining
units, and royalty rate reductions require a cost recovery assessment to the applicant. The same
cost recovery requirement applies to processing non-coal solid leasable minerals. The objective
of this policy is to ensure consistency, efficiency, and thoroughness in tracking costs associated
with processing certain types of coal applications. By doing this, the BLM will be able to
provide an accurate accounting of monies spent and/or tasks completed to the applicant. This
also will allow accountability should internal or external program audits be conducted.

The BLM Wyoming State, District, and Field Offices responsible for processing coal and other
solid leasable minerals actions subject to cost recovery will be required to track actions and time
spent on individual project on the attached worksheet titled “Cost Recovery Log” Consistent
with Bureau policy, hours should be shown in 15 minute increments.

It will be the Project Manager’s responsibility to get copies of these logs from any
Interdisciplinary Team Member who completed project tasks at the end of each calendar year
quarter (i.e., March 31, June 30, September 30, and December 31). The Project Manager should
gather the logs and send them electronically to the attention of Jackie Madson, Land Law
Examiner, Solid Leasable Minerals, at jmadson@blm.gov.

In FY 2016, the BLM Wyoming State Office Branch of Solid Minerals will review the tracking
process to determine if it is meeting the objectives for accurate accountability of time and task
for projects using cost recovery funds.

Timeframe: This IM is effective upon receipt and will remain in effect until further notice.
Budget Impact: None

Background: The BLM Washington Office (WO) Instruction Memorandum No. 2006-106, was
issued on March 13, 2006, to provide guidance on the newly established case-by-case fees to
cover costs of processing Solid Mineral Program applications. BLM prepares a cost estimate
associated with document/application processing. Actual processing costs include both the direct
and indirect costs. A direct cost, according to WO IM 2006-106, includes labor, equipment,
travel, contractual services, and printing costs. A written fee estimate is sent to the applicant,
which must be accepted by the applicant prior to processing. Also, WO IM No. 2006-106
emphasized that BLM personnel working on solid minerals applications must keep track of all
costs when processing a document/application subject to a case-by-case fee. This policy
recommended maintaining working files with this information.

As BLM has completed many of the original cost recovery projects, we understand the
importance of accounting for actions taken on discrete applications and the need to track these
actions to ensure accurate accountability of proponent’s monies.

Manual/Handbook Sections Affected: None.

Coordination: This process was developed in coordination with the BLM Wyoming State
Office Coal Staff, the BLM Wyoming High Plains District Office Staff/Buffalo Field Office
Staff, and the High Desert District Office/Rock Springs Field Office Staff.

Contact: All questions regarding this memorandum should be directed to Brenda Vosika
Neuman, Chief, Branch of Solid Minerals at 307-775-6179 or Jackie Madson, Land Law
Examiner at 307-775-6258, both at the BLM Wyoming State Office.

Signed by: Larry Claypool Deputy State Director, Minerals and Lands
Authenticated by: Sherry Dixon, Support Services Assistant

1 Attachment:
1 - Cost Recovery Worksheet (1p)
Distribution
Director (100), Room 5660, MIB 1 (w/o atchs)
Field Managers 1 (w/atchs)
CF 2 (w/atchs)