[Federal Register Volume 60, Number 45 (Wednesday, March 8, 1995)]
[Rules and Regulations]
[Pages 12710-12711]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-5626]
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DEPARTMENT OF THE INTERIOR
Bureau of Land Management
43 CFR Part 2720
RIN 1004-AB86
[WO-690-02-4120-24 1A; Circular No. 2658]
Conveyance of Federally-Owned Mineral Interests
AGENCY: Bureau of Land Management, Interior.
ACTION: Final rule.
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SUMMARY: This final rule amends 43 CFR part 2720 in order to streamline
and clarify the procedures for conveying Federally-owned mineral
interests to the owner of the surface estate overlying the mineral
interests. Section 209 of the Federal Land Policy and Management Act
(FLPMA) allows such conveyances when there are no known mineral values
present, or when the reservation of the mineral rights is interfering
with or precluding appropriate nonmineral development of the land that
would be more beneficial than mineral development. The rule is
necessary because the wording of the existing regulation has caused
considerable confusion on the part of both the public and public land
managers, and has been interpreted to require expensive mineral surveys
in many cases where such surveys were unnecessary. The final rule will
simplify the conveyance of Federally-owned mineral interests.
EFFECTIVE DATE: April 7, 1995.
ADDRESSES: Suggestions or inquiries should be sent to: Director (690),
Bureau of Land Management, 1849 C Street NW., Washington, D.C. 20240.
FOR FURTHER INFORMATION CONTACT: Clyde Topping, (202) 452-0380.
SUPPLEMENTARY INFORMATION: Five sections of subpart 2720 are amended in
this final rule. The amendments in two of these sections are
substantive and are designed to meet the objectives stated above in the
Summary, and are explained below in the discussion of the comments
received on the rule. The remaining three sections--sections 2720.0-6,
2720.1-3, and 2720.3--contain minor clarifications and corrections in
language that were explained in the preamble to the proposed rule
published in the Federal Register on September 28, 1993 (58 FR 50536).
The rule allowed 60 days for public comment. During this public comment
period, 1 public comment was received.
The comment basically supported the rule. It also asked for a
reaffirmation of BLM's policy regarding exchanges involving surface and
mineral rights, which allows both parties to an exchange to reserve
mineral rights or to convey other mineral rights in order to keep the
exchange balanced. This final rule has no effect on this BLM policy.
The statute that is implemented in these regulations allows
conveyance of the mineral rights when the Secretary of the Interior
finds that there are no known mineral values or that the mineral
reservation is interfering with or precluding appropriate nonmineral
development that is more beneficial than mineral development. It
requires payment of administrative costs and the current fair market
value of the minerals conveyed. It does not require the retention of
non-valuable minerals in Federal ownership where there is a beneficial
use of the surface with which mineral development would interfere. If
the Secretary finds that mineral development in a particular case may
be more beneficial than the surface use planned by the non-Federal
owner, the conveyance would not be allowed.
The definition of ``known mineral value'' has been amended in the
final rule to make it clear that mineral values will be determined in
light of the current market, and to refer to lands containing mineral
formations rather than to lands with underlying formations.
Minor changes in style have been made in the regulatory text to
improve clarity and readability.
The principal author of this final rule is Clyde Topping of the
Biotic and Landscape Resource Team, assisted by the Regulatory
Management Team, BLM.
It is hereby determined that this final rule does not constitute a
major Federal action significantly affecting the quality of the human
environment, and that no detailed statement pursuant to Section
102(2)(C) of the National Environmental Policy Act of 1969 (NEPA) (42
U.S.C. 4332(2)(C)) is required. The BLM has determined that this final
rule is categorically excluded from further environmental review. Under
the Council on Environmental Quality regulations (40 CFR 1508.4) and
environmental policies and procedures of the Department of the
Interior, ``categorical exclusions'' means a category of actions that
do not individually or cumulatively have a significant effect on the
human environment and which have been found to have no such effect in
procedures adopted by a Federal agency and for which neither an
environmental assessment nor an environmental impact statement is
required. The BLM has made this determination under 516 Departmental
Manual (DM), Chapter 2, Appendix 1, Item 1.10, which includes
``regulations * * * the environmental effects of which are too broad,
speculative or conjectural to lend themselves to meaningful analysis
and will be subject later to the NEPA process, either collectively or
case-by-case,'' because the environmental effects of the transactions
covered by this rule (a great variety of possible proposed uses of non-
Federal surface) are entirely speculative and conjectural, and the
transactions covered by the regulations will be subject to the NEPA
process on a case-by-case basis as they are proposed. The BLM further
determined that the rule will not trigger any of the 10 exceptions
disallowing categorical exclusions listed in 516 DM 2, Appendix 2.
These 10 exceptions apply to individual actions, not broad regulations
covering a multitude of possible individual actions.
This rule was not subject to review by the Office of Management and
Budget under Executive Order 12866.
The Department has determined under the Regulatory Flexibility Act
(5 U.S.C. 601 et seq.) that the final rule will not have a significant
economic impact on a substantial number of small entities. The rule, by
clarifying provisions that have been misinterpreted in the past,
obviates unneeded and expensive mineral exploration programs to prove
the market value of reserved mineral rights that are not valuable in
the market sense. The rule imposes no costs, and makes the regulatory
process less cumbersome.
The Department certifies that this final rule does not represent a
governmental action capable of interference with constitutionally
protected property rights. The rule does not require the taking of any
property rights. Therefore, as required by Executive Order 12630, the
Department [[Page 12711]] of the Interior has determined that the rule
will not cause a taking of private property.
The information collection requirements contained in part 2720 have
been approved by the Office of Management and Budget under 44 U.S.C.
3501 et seq. and assigned clearance number 1004-0153.
The Department has certified to the Office of Management and Budget
that this rule meets the applicable standards provided in Sections 2(a)
and 2(b)(2) of Executive Order 12778.
List of Subjects in 43 CFR Part 2720
Administrative practice and procedure, Public lands-mineral
resources, Public lands-sale.
Dated: March 2, 1995.
Bob Armstrong,
Assistant Secretary of the Interior.
For the reasons stated in the preamble, and under the authorities
stated below, part 2720 of Group 2700, Subchapter B, Chapter II, Title
43 of the Code of Federal Regulations is amended as follows:
PART 2720--CONVEYANCE OF FEDERALLY-OWNED MINERAL INTERESTS
Subpart 2720--Conveyance of Federally-Owned Mineral Interests
1. The authority citation for part 2720 is revised to read as
follows:
Authority: 43 U.S.C. 1719 and 1740.
2. Section 2720.0-5(b) is revised to read as follows:
Sec. 2720.0-5 Definitions.
* * * * *
(b) Known mineral values means mineral rights in lands containing
geologic formations that are valuable in the monetary sense for
exploring, developing, or producing natural mineral deposits. The
presence of such mineral deposits with potential for mineral
development may be known because of previous exploration, or may be
inferred based on geologic information.
* * * * *
3. Section 2720.0-6 is amended by revising the first sentence
thereof to read as follows:
Sec. 2720.0-6 Policy.
As required by the Federal Land Policy and Management Act, the
Bureau of Land Management may convey a federally owned mineral interest
only when the authorized officer determines that it has no known
mineral value, or that the mineral reservation is interfering with or
precluding appropriate nonmineral development of the lands and that
nonmineral development is a more beneficial use than mineral
development. * * *
4. Section 2720.0-9 is added to read as follows:
Sec. 2720.0-9 Information collection.
(a) The Office of Management and Budget has approved under 44
U.S.C. 3507 the information collection requirements contained in part
2720 and assigned clearance number 1004-0153. The Bureau of Land
Management is collecting the information to permit the authorized
officer to determine whether the Bureau of Land Management should
dispose of Federally-owned mineral interests. The Bureau of Land
Management will use the information collected to make these
determinations. A response is required to obtain a benefit.
(b) The Bureau of Land Management estimates the public reporting
burden for this information to average 8 hours per response, including
the time for reviewing regulations, searching existing data sources,
gathering and maintaining the data needed, and completing and reviewing
the collection of information. Send comments regarding this burden
estimate or any other aspect of this collection of information,
including suggestions for reducing the burden, to the Information
Collection Clearance Officer (783), Bureau of Land Management,
Washington, D.C. 20240, and the Office of Management and Budget,
Paperwork Reduction Project, 1004-0153, Washington, D.C. 20503.
5. Section 2720.1-3 is amended by revising the concluding text of
paragraph (b) to read as follows:
Sec. 2720.1-3 Action on application.
* * * * *
(b) * * *
The authorized officer, in reaching a determination as to whether
there are any known mineral values in the land and, if so, the
estimated costs of an exploratory program, if one is needed, will rely
upon reports on minerals prepared by or reviewed and approved by the
Bureau of Land Management.
* * * * *
6. Section 2720.2 is amended by revising paragraph (b) and adding
paragraph (c) to read as follows:
Sec. 2720.2 Determination that an exploratory program is not required.
(a) * * *
(b) The authorized officer will not require an exploratory program
to ascertain the presence of mineral values where the authorized
officer determines that a reasonable person would not make exploration
expenditures with expectations of deriving economic gain from the
mineral production.
(c) The authorized officer will not require an exploratory program
if the authorized officer determines that, for the mineral interests
covered by the application, sufficient information is available to
determine their fair market value.
7. Section 2720.3 is amended by revising the fourth sentence of
paragraph (a), and paragraph (b) in its entirety, to read as follows:
Sec. 2720.3 Action upon determination of the fair market value of the
mineral interests.
(a) * * * The notice must require the applicant to pay both the
fair market value of the Federal mineral interests and the remaining
administrative costs owed within 90 days after the date the authorized
officer mails the notice.
* * * * *
(b) The Bureau of Land Management will convey mineral rights on
lands for which this part does not require an exploratory program upon
payment by the applicant of fair market value for those mineral
interests and all administrative costs of processing the application to
acquire the mineral rights.
[FR Doc. 95-5626 Filed 3-7-95; 8:45 am]
BILLING CODE 4310-84-P