This Policy is Inactive

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

NV IM-2015-008
Instruction Memorandum

In Reply Refer To:
2920/2800/9230 (NV930) P

United States Department of the Interior
BUREAU OF LAND MANAGEMENT
Nevada State Office
1340 Financial Boulevard
Reno, Nevada  89502-7147
http://www.blm.gov/nv

November 10, 2014

EMS TRANSMISSION
Instruction Memorandum: No. NV-2015-008 Expires: 09/30/2017

To: District and Field Managers, Nevada

From: State Director

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

The Division of Lands, Minerals, and Cadastral Survey, Washington Office (WO350), 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.

Code of Federal Regulation (CFR) 43 CFR § 2920.8 directs the Bureau of Land Management (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. 43 CFR § 2806.50 also 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 rent 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 Nevada’s District and Field Offices to maintain a consistent approach in 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 reports 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 values were derived, please see the attached rent study report. Before using the schedule, it is important that the realty specialist read the report and OVS’s memo in their entirety.

OVS organized the schedule by District Office and counties under that District Office’s jurisdiction.  Each county has a per acre rent value which 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 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 appraisal 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 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, please contact Frederick Marcell, Nevada State Office Realty Specialist at 775-861-6474, or Doug Braun, OVS Client Manager at 503- 808-6070.

Signed by:
Amy Lueders
State Director

Authenticated by:
Edison Garcia
Staff Assistant

Attachment
1 – Land Use Authorization Rent Study (15 pp)