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September 17, 2013
In Reply Refer To:
2800/2880/2920 (WO 350) P
Instruction Memorandum No. 2013-185     
Expires:  09/30/2014                                                                                       

To:                 All Field Officials

From:             Assistant Director, Minerals and Realty Management 

Subject:         Calendar Year 2014 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) 2014 Cost Recovery Processing and Monitoring Fee Schedule (attachment 1) and updates the strict liability amounts for CY 2014. 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), which increased 1.473 percent from the second quarter of CY 2012 through the second quarter of CY 2013.  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 BLM has posted the cost recovery fee schedule 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), the updated maximum amount for CY 2014 is $2,467,000.  This reflects the Consumer Price Index-Urban increase of 1.961 percent for the period of July 2012 through July 2013.
Timeframe: This IM is effective January 1, 2014.

Budget Impact: The application of this policy will have no impact on the budget.  The BLM expects this increase to be budget-neutral. 

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(c), and 2885.23(b) established a cost recovery processing and monitoring fee schedule that became effective June 21, 2005.  The BLM updates this schedule annually as described above.  Attached is the CY 2014 Cost Recovery Processing and Monitoring Fee Schedule.  In addition, all BLM offices must continue to use the processing and monitoring project codes established in Subactivity 5102, 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)).  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 (3)).
Manual/Handbook Sections AffectedThis IM affects BLM Manual Sections 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).

ContactIf you have any questions concerning the content of this IM, please contact me at   202-208-4201, or your staff may contact Kim Berns, Division Chief, Lands, Realty and Cadastral Survey (WO-350), at 202-912-7350; Lucas Lucero, Branch Chief, ROW (WO-350), at 202-912-7342 or LLucero@blm.gov; or Jennifer Whyte, Realty Specialist (WO-350), at 202‑912-7219 or JWhyte@blm.gov.

Signed by:
Authenticated by:
Michael D. Nedd
Catherine Emmett
Assistant Director, Minerals and Realty Management
Division of IRM Governance, WO-560

1 Attachment


Last updated: 09-25-2013