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Washington, DC 20240
September 22, 2011
In Reply Refer To:
2800/2920 (350) P
Instruction Memorandum No. 2011-182
Expires: 09/30/2012
To:                   All Field Officials
From:               Assistant Director, Minerals and Realty Management
Subject:           Calendar Year 2012 Right-of-Way Cost Recovery Fee Schedule
Program Area: Right-of-Way Management and Land Use Authorization Management.
Purpose: This Instruction Memorandum (IM) provides the Bureau of Land Management (BLM) with the Calendar Year (CY) 2012 Cost Recovery Processing and Monitoring Fee Schedule (Attachment 1). The cost recovery fees are updated annually in accordance with the right-of-way (ROW) regulations and must be used for the processing and monitoring of Federal Land Policy and Management Act (FLPMA) and Mineral Leasing Act (MLA) ROWs and FLPMA land use authorizations. Separate decisions are necessary to determine the appropriate cost recovery category for processing actions and the appropriate category for monitoring actions.
Policy/Action: The ROW regulations at 43 CFR 2804.14(c), 2805.16(b), 2884.12(c), and 2885.23(b) state that cost recovery processing and monitoring fees will be adjusted annually based on the previous year’s change in the Implicit Price Deflator-Gross Domestic Product Index (IPD-GDP), which increased 2.4 percent from the second quarter of CY 2010 through the second quarter of CY 2011. 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.
Timeframe: This IM is effective January 1, 2012. 

Budget Impact: There is an anticipated decrease in the availability of funds in Functional Area 1430 and 1492 for processing and monitoring activities relating to ROWs and land use authorizations.

Background: 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. This schedule is updated annually as described above. The CY 2012 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. 

Manual/Handbook Sections Affected: This IM affects BLM Manual Section 2800, Rights-of-Way, and Manual Section 2880, Oil and Natural Gas Pipelines, which will be updated to reflect this IM.
Coordination: This IM was coordinated through WO-350 and 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 Lucas Lucero, Branch Chief, ROW (WO-350) at (202) 912-7342 or Lucas_Lucero@blm.gov, or Beth Ransel, Realty Specialist, Linear ROW & Master Agreements Lead (WO-350) at (202) 912-7213 or Beth_Ransel@blm.gov.
Signed by:                                                                    Authenticated by:
Michael Nedd                                                                Robert M. Williams
Assistant Director                                                         Division of IRM Governance,WO-560
Minerals and Realty Management
1 Attachment

    1 – CY 2012 Cost Recovery Processing and Monitoring Fee Schedule (1 p)

Last updated: 09-29-2011