[Federal Register Volume 60, Number 112 (Monday, June 12, 1995)]
[Notices]
[Pages 30830-30844]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14361]



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DEPARTMENT OF AGRICULTURE
Forest Service
RIN 0596-AB53


Outfitting and Guiding Permit Administration and Fees

AGENCY: Forest Service, USDA.

ACTION: Notice; adoption of final policy.

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SUMMARY: The Forest Service is adopting final policy and procedures for 
issuing and administering permits and assessing fees for outfitting and 
guiding activities on National Forest System lands. This policy has 
been revised to respond to comments on the proposed and interim 
policies previously published in the Federal Register and to address 
recommendations in several General [[Page 30831]] Accounting Office 
reports on administration of Federal concessions. This policy will 
ensure consistency in outfitter and guide program administration and 
fees throughout Forest Service units. The text of this policy, which 
has also been edited and reorganized for clarity, is set forth at the 
end of this notice.

EFFECTIVE DATE: The final policy is effective June 19, 1995.

FOR FURTHER INFORMATION CONTACT:
John Shilling, (202) 205-1426, Recreation, Heritage, and Wilderness 
Resources Management Staff (2340), Forest Service, USDA, P.O. Box 
96090, Washington, D.C. 20090-6090.

SUPPLEMENTARY INFORMATION: 

Background

    Outfitting and guiding includes a wide range of activities, such as 
river rafting, horseback trips, guided wildlife photography excursions, 
and mountain-bike tours. Annually, some 2,800 special use permits are 
in effect for outfitting and guiding on National Forest System lands. 
The majority of these are for commercial operations. Fees are generally 
three percent of the revenue generated from the use of National Forest 
System lands.
    On April 8, 1983, the Forest service published a proposed policy 
for notice and comment on issuance and administration of permits and 
assessment of fees for outfitting and guiding activities on National 
Forest System lands (48 FR 15296, Apr. 8, 1983). On February 15, 1984, 
the agency gave notice of adoption of a final policy as an interim 
directive to the Forest Service Manual which addressed issues raised in 
comments received on the proposed policy (49 FR 5782, Feb. 15, 1984). 
The same interim directive was reissued without change in 1988.
    When that interim directive could no longer be reissued, the Forest 
Service published a notice of interim direction and request for 
comments on April 18, 1990 (55 FR 14445, Apr. 18, 1990). With only 
minor differences, the April 18, 1990, interim directive continued the 
direction contained in the 1983 proposed policy, the 1984 interim 
directive, and the 1988 interim directive which it replaced. The 1990 
interim directive has been reissued several times and cannot be 
reissued again pursuant to agency directive policy.
    Since April 1990, commercial recreation concessions on Federal 
lands have been the subject of several General Accounting Office (GAO) 
studies. In June 1991, GAO released a report, ``Federal Lands: 
Improvements Needed in Managing Concessioners'' (GAO/RCED-91-163, June 
11, 1991), that directed the Federal land-management agencies to 
develop policies that achieve greater consistency in the management of 
concession programs and authorizing instruments. A subsequent report 
issued by GAO, ``Federal Lands: Improvement Needed in Managing Short-
Term Concessioners'' GAO/RCED-93-177, Sept. 14, 1993), made further 
recommendations for improving administration of Federal concessions. 
The 1993 report specifically addressed short-term concessions, 
including outfitting and guiding.
    The address the concerns expressed in these reports, to address the 
comments received on the previously published proposed policy and 
interim directive, and to improve consistency in program 
administration, the Forest Service is adopting final policy and 
procedures governing administration of outfitting and guiding permits 
and calculation of fees. This policy is being issued as amendments to 
chapters 30 and 40 of Forest Service Handbook (FSH) 2709.11, Special 
Uses Handbook. The text of these amendments is set out at the end of 
the notice.
    This final policy makes substantive changes to the direction 
previously issued in the 1990 interim directive. This final policy also 
differs in certain nonsubstantive ways from the 1990 interim directive. 
The agency has reorganized, clarified, and edited the 1990 interim 
directive to conform with current agency requirements for the content, 
format, and style of Forest Service directives.
    In response to a lawsuit, Wilderness Watch v. Robertson, No. 92-
0740 (D.D.C, Apr. 8, 1993) and in accordance with the court's 1993 
order in the case, this final policy revises terminology and clarifies 
and expands policy on the kinds of structures, improvements, or 
installations that may be authorized for use in outfitting and guiding 
operations.
    The agency has also clarified its direction on permit renewal. At 
this time, where outfitting and guiding services have been previously 
authorized and the authorization is expiring, the agency favors 
noncompetitive reissuance of special use authorizations to outfitters 
and guides who have a history of satisfactory performance over 
providing new competitive opportunities (see sec. 41.53f, para. 3 of 
the policy set out at the end of this notice). In the future, however, 
the agency may publish for notice and comment a proposed policy 
providing for competition for outfitting and guiding permits.
    The 1990 interim directive defined ``priority use'' as ``a Forest 
Service commitment to the holder of a permit for outfitting and guiding 
to give priority consideration to granting the holder a specific amount 
of available future use.'' The Forest Service has redefined ``priority 
use'' in this final policy to reflect more accurately the duration of 
the authorized use, factors determining the amount of use, and 
renewability of permits providing for priority use. Priority use is now 
defined in section 41.53c as: ``Authorization of use for a period not 
to exceed five years. The amount of use is based on the holder's past 
use and performance and on forest land and resource management plan 
allocations. Authorizations providing for priority use are subject to 
renewal.'' Under the final policy, outfitting and guiding permits may 
be renewed without competition when the holder has performed 
satisfactorily (sec. 41.53f, para. 3). Renewal will be at the sole 
discretion of the authorized officer. This final policy is consistent 
with applicable Federal regulations and continues direction contained 
in the 1983 draft policy, the 1984 interim directive, and the 1990 
interim directive.
    Further, the final policy in section 41.53f provides that an 
authorized officer may issue a permit without competition to the party 
who acquires ownership of or a controlling interest in an outfitting 
and guiding business entity, if the authorized officer determines that 
the prospective holder meets requirements under Forest Service 
regulations (36 CFR 251.54).

Summary of Key Revisions

    The Forest Service received nine comments on the 1990 interim 
directive within the specified comment period: three from outfitter and 
guide associations; three from outfitters and guides; two from State 
outfitter and guide licensing boards; and one from an individual.
    The following is a section-by-section analysis of the final policy 
in chapters 30 and 40 of FSH 2709.11 and the Forest Service's response 
to the comments received on the 1990 interim directive, relevant court 
rulings, and recommendations from GAO reports.
Chapter 30--Fee Determination

Sections 37 to 37.24--Outfitter and Guide Fees

    In Wilderness Watch v. Robertson, plaintiffs contended that certain 
outfitting and guiding activities as authorized under special use 
permit and administered by the Forest Service in [[Page 30832]] the 
Frank Church River of No Return Wilderness (Frank Church Wilderness), 
located in the Boise, Challis, Payette, Salmon, Bitterroot, and Nez 
Perce National Forests in Idaho, violated the Wilderness Act of 1964 
(16 U.S.C. 1131 et seq.). The court ruled in favor of plaintiffs on 
several issues, including authorization of permanent structures and 
installations (such as caches and water transmission systems) in the 
Frank Church Wilderness and continuing, exclusive use of campsites 
reserved by outfitters and guides in the Frank Church Wilderness. The 
court ordered the parties to confer and submit a joint remedial plan to 
ensure compliance with applicable provisions of the Wilderness Act and 
Forest Service regulations.
    The 1990 interim directive included caches as acceptable 
installations and included the term ``reserved site.'' In accordance 
with the holding in Wilderness Watch and the requirements of the 
Wilderness Act, the final policy does not authorize permanent 
structures in wilderness areas. The agency has replaced the term 
``reserved site'' with the term ``assigned site,'' which is defined as 
a site that is designated and authorized for occupancy and use by a 
holder who is providing a recreation service to the public during the 
period of occupancy (sec. 37.05). In addition, the agency has revised 
the administrative practice of reserving sites for use by outfitters 
and guides under special use permits. Under the final policy, the 
authorized officer must specify and describe the proposed use of 
specific assigned sites in operating plans and annual itineraries (sec. 
41.53j).
    Section 37.01--Authority. The agency has added this section to 
include cross-references to other sections of the Forest Service 
Handbook (FSH) and Forest Service Manual (FSM) that provide direction 
on laws, regulations, and other authorities for administration of 
special uses programs (including outfitting and guiding) and fees on 
NFS lands.
    Section 37.03--Policy. The agency has added this section to provide 
direction and cross-references to other FSH and FSM sections that 
provide additional direction. The section includes direction on the use 
of the graduated rate fee system (GRFS) to determine fees for 
outfitting and guiding activities authorized in connection with a 
commercial service site under permit. This direction originally 
appeared in a different section of the 1990 interim directive, and the 
agency has determined that this direction is more appropriately coded 
to the policy section.
    Section 37.04--Responsibility. The agency has added this section to 
provide a cross-reference to an FSM section that provides related 
direction and to add the responsibility of the Director of Recreation, 
Heritage, and Wilderness Resources Management for adjusting the minimum 
fee and the assigned campsite fee every three years with 1993 as the 
base year, based on the Gross Domestic Product--Implicit Price Deflator 
Index.
    Section 37.05--Definitions. The agency has added definitions for 
``adjustment for use off National Forest System lands,'' ``assigned 
site,'' ``client days'' (including ``National Forest System client 
days'' and ``total client days''), ``non-use,'' ``revenue additions,'' 
``revenue exclusions,'' ``short-stop fee,'' and ``unapproved non-use.'' 
The agency has revised definitions for ``adjusted gross revenue,'' 
``gross revenue,'' ``service day,'' and ``duration of the outfitted or 
guided trip.'' ``Average adjusted service day client charge'' is 
retitled ``average client-day charge.''
    ``Reserved site'' is replaced with ``assigned site,'' which is 
defined as a site that is designated and authorized for occupancy and 
use by a holder who is providing a recreation service to the public 
during the authorized period of occupancy.
    ``Adjustment for use off National Forest System lands'' is defined 
as the reduction in the fee for commercial use to account for the 
portion of the outfitted or guided trip that occurs off National Forest 
System lands.
    ``Client days'' is defined as either ``National Forest System 
client days'' or ``total client days.'' ``National Forest System client 
days'' is defined as the number of service days (that is, days on the 
National Forest System) for the duration of the outfitted or guided 
trip multiplied by the number of clients on the trip. ``Total client 
days,'' which applies where there is use both on and off National 
Forest System lands, is defined as the total number of days for the 
duration of the outfitted or guided trip multiplied by the number of 
clients on the trip. Client days are used to calculate the average 
client-day charge and the adjustment for use off National Forest System 
lands in determining the fee for commercial use.
    ``Non-use'' was previously undefined, although the term was used in 
final fee calculation. Lack of a definition for ``non-use'' has 
resulted in inconsistent fee assessments and miscalculations in various 
Forest Service units. Consequently, the agency has defined ``non-use'' 
in the final policy as authorized use the holder did not use. In 
addition, the agency has defined ``unapproved non-use'' as authorized 
use the holder did not use and for which the holder has not properly 
requested and received a waiver. Under the final policy, the holder 
must pay for unapproved non-use. See the direction in section 37.21g 
set forth at the end of this document.
    To conform with agency policy on fiscal management and accounting, 
including generally accepted accounting principles or other 
comprehensive basis of accounting, and to improve consistency in fee 
calculation when fees are based on gross revenue, the agency has added 
the definition of ``revenue additions,'' which is defined as the value 
of gratuities and sales of certain kinds of goods and services; 
specified which items are excluded from gross revenue; and included a 
definition for ``revenue exclusions.''
    The new term ``short-stop fee'' refers to a fee established by 
Regional Foresters for trips with two service days or less spent on 
National Forest System lands. (An example would be an Alaskan tour 
which stops for one day or less at a National Forest System site.) 
Under the 1990 interim directive, Regional Foresters were allowed to 
establish additional discounts for use off National Forest System 
lands. The Alaska Region of the Forest Service has suggested the short-
stop fee for use in that Region. Since the short-stop fee may have 
applicability in other Regions, the agency has provided for its 
Servicewide use in the final policy (sec. 37.21c, para. 3).
    The revised definition for ``gross revenue'' is revenue from goods 
or services provided during the outfitted or guided trip; revenue 
received for scheduling or booking the trip; and revenue provided off 
National Forest System lands, unless specifically excluded.
    The term ``adjusted gross revenue'' is defined as gross revenue and 
revenue additions less applicable exclusions. ``Revenue exclusions'' is 
defined as revenue derived on private land from the sale of items not 
directly related to the outfitting or guiding operation conducted on 
National Forest System lands; revenue conveyed to the State for hunting 
and fishing licenses; and revenue from the sale of operating equipment.
    The agency has edited the definitions for ``service day'' and 
``duration of outfitted or guided trip'' for clarity and format.
    Section 37.21--Fees. To clarify direction on fee calculation, the 
agency has reordered the sequence of topics in this section (including 
sections 37.21 to 37.21j) covering fees to be collected for 
[[Page 30833]] specific uses associated with outfitting and guiding 
activities.
    Section 37.21a--Minimum fee. For 1993-96, the agency has 
established a minimum annual fee of $70 per permit. Using 1993 as a 
base year, the agency will adjust the minimum annual fee per permit 
every three years based on the Gross Domestic Product--Implicit Price 
Deflator Index. In addition, the agency has edited this section to 
conform with Forest Service directive format and style.
    Section 37.21b--Fee for Incidental Use for Temporary Special-Use 
Permits. To provide clarity and to ensure consistency in fee 
collection, the agency has added direction on collecting a minimum fee 
when commercial outfitting and guiding is authorized by a temporary 
permit. Form FS-2700-25, Temporary Special-Use Permit.
    Section 37.21c--Fee for Commercial Use. Portions of the direction 
in this section previously appeared in a section entitled ``Final 
Fee.'' The agency has included this section to ensure consistent fee 
calculation and collection for commercial outfitting and guiding 
activities on National Forest System lands. Further, to provide clear 
direction and to ensure consistent fee calculation, the agency has 
expanded this section to include examples of fee calculations for 
option A, option B, and the short-stop fee. Option A establishes a fee 
based on an average client-day charge. Option B establishes the fee as 
three percent of the adjusted gross revenue. A short-stop fee is 
established for activities of short duration (two service days or 
less).
    Section 37.21d--Determining Service Days.
    Comment: Three respondents objected to the definition for ``service 
day,'' but did not offer alternative wording.
    Response: The agency believes that the revised definition for 
``service day'' (previously discussed under section 37.05) is clearer 
and will make fee calculations easier to perform and more accurate.
    Comment: One respondent suggested a method for calculating service 
days for drop-off services that would account for the complete number 
of days a holder is providing goods or services to a client. The 
respondent recommended that all drop-off and packing days be counted as 
service days. Another respondent concurred with this view, observing 
that all full or fractional days on which supply, spot, dunnage, or 
drop-off services are provided by an outfitter or guide should be 
counted as service days.
    Response: The agency with these comments. Under the final policy 
the agency counts service days in three drop-off situations. In the 
first situation, a holder guides a client to a specific drop-off site 
on National Forest System lands; the holder neither retrieves the 
client, nor returns to the drop-off site to guide the client. In the 
second situation, the holder guides the client to a specific drop-off 
site on National Forest System lands and returns to pack the client 
out. In the third situation, the holder guides the client to a specific 
drop-off site on National Forest System lands, the client occupies the 
holder's assigned site, and the holder packs the client out.
    In the first situation, the agency would count one full service day 
for fee purposes. In the second situation, the agency would count one 
full service day for drop-off services and one full service day for 
pick-up services. In the third situation, the agency would count one 
full service day for drop-off services, one full service day for pick-
up services, and one service day for each day in between.
    The agency has expanded this section to include direction on the 
three situations to clarify counting of service days for fee 
calculation when drop-off and pick-up services are provided. To conform 
to Forest Service directive organization, the agency has removed the 
definition for ``service day'' that formerly appeared in this section 
of the 1990 interim directive and has included the definition in 
section 37.05, Definitions.
    Section 37.21e--Adjustment for Use Off National Forest System 
Lands. The agency has edited this section to conform with Forest 
Service directive format and style.
    Section 37.21f--Fee for Additional Use. The agency has edited this 
section to conform with Forest Service directive format and style.
    Section 37.21g--Payment for Unapproved Non-Use. To ensure 
consistency in fee collection, the agency has clarified the direction 
to charge the holder for unapproved non-use when the holder has not 
properly requested and received a waiver for authorized non-use.
    Section 37.21h--Fee for Assigned Sites. In accordance with the curt 
order is Wilderness Watch and the requirements of the Wilderness Act, 
the agency has replaced the term ``reserved site'' with the term 
``assigned site.'' For 1993-96, the agency has established an annual 
fee of $140 for the use of each assigned site. Using 1993 as a base 
year, the agency will adjust the minimum annual fee for each assigned 
site every three years based on the Gross Domestic Product--Implicit 
Price Deflator Index.
    Section 37.21i--Fee for Grazing Livestock. The agency has edited 
this section to conform with Forest Service directive format and style.
    Section 37.21j--Fee for Nonprofit Organizations. To ensure 
consistency in fee calculation, the agency has stated that the fee for 
nonprofit organizations is three percent of annual adjusted gross 
revenue. The 1990 interim directive did not clearly state that 
nonprofit organizations pay a fee based on a percentage of annual 
adjusted gross revenue.
    Section 37.21k--Fee for Educational Institutions. To ensure 
consistency in fee calculation, the agency has stated that the fee for 
educational institutions is three percent of annual adjusted gross 
revenue. The 1990 interim directive did not clearly state that 
educational institutions pay a fee based on a percentage of annual 
adjusted gross revenue.
    Section 37.22--Estimated Fee. To ensure consistency in fee 
collection, the agency has clarified direction on collecting a portion 
or all of the fee in advance.
    Section 37.23--Final Fee. To ensure consistency in fee calculation, 
the agency has clarified direction on calculating the final fee.
    Section 27.24--Billing and Refunds. Related direction in section 
41.53f of the final policy, Applications and Issuance of Permits, 
directs the authorized officer to collect fees for outfitting and 
guiding under the authority of the Land and Water Conservation Fund 
(LWCF) Act of 1964. This is an administrative change; previously, fees 
were deposited into the general receipts of the Treasury. Fees 
collected under the LWCF Act are deposited into the LWCF. Once 
appropriated by Congress, LWCF monies many be used for management of 
Federal outdoor recreational resources and facilities.

Chpater 40--Special Uses Administration

Sections 41.53 to 41.531--Outfitters and Guides

    Comment: Two respondents commented generally on the administrative 
topics of assignment and management of temporary use, applications and 
issuance of permits, reductions, and permits for institutional and 
semi-public outfitting and guiding. These respondents were 
representatives of State outfitter and guide licensing boards who 
expressed general concern about the policy but did not specify wording 
changes in the sections covering these topics. [[Page 30834]] 
    The respondents requested exception for their States (Wyoming and 
Idaho) from certain sections of the policy, specifically: Assignment 
and Management of Temporary Use; Applications and Issuance of Permits; 
Reductions; and Permit Administration, including Performance 
Evaluation. They contended that their respective State laws, State 
outfitting and guiding rules and regulations, and memoranda of 
understanding with local Forest Service offices exempt them from 
Federal law and national policy.
    Response: Forest Service Regional Offices in Missoula, Montana, 
Portland, Oregon, and Ogden, Utah have memoranda of understanding that 
were executed in 1985 with the States of Wyoming and Idaho. The 
memoranda describe local coordination and implementation procedures as 
agreed upon between those Regional Offices and the States of Wyoming 
and Idaho in the context of State laws and regulations. These memoranda 
do not provide any basis, however, for exempting these States from the 
requirements of Forest Service regulations or national policy for 
issuing and administering permits and assessing fees for outfitting and 
guiding activities; These requirements ensure consistency in program 
administration throughout the National Forest System units.
    Applicable Federal regulations (36 CFR 251.50) require a special 
use authorization for commercial use and occupancy of National Forest 
System lands, including outfitting and guiding activities. The Forest 
Service further implements its delegated land-management authority by 
issuing national policy in the Forest Service Manual and Handbooks, 
including policy on outfitting and guiding activities. These 
regulations and policies cannot be waived by Regional memoranda of 
understanding. The final policy maintains the longstanding Forest 
Service policy that permit holders must agree to comply with all 
applicable State laws. Applicable State laws, including those enforced 
by State outfitter and guide licensing boards and game-management 
agencies, apply to holders of permits authorizing the use of National 
Forest System lands for outfitting and guiding activities.
    Section 41.53a--Objectives. The agency has added the objective that 
outfitting and guiding activities be conducted in a manner that 
protects environmental resources.
    Section 41.53b--Policy.
    Comment: One respondent recommended that the term for outfitters 
and guides who are operating without a permit be changed from 
``pirate'' to ``illegal.''
    Response: applicable Federal regulations, commercial use and 
occupancy of National Forest System lands requires a special use 
authorization. Commercial use and occupancy of National Forest System 
lands without a special use authorization is defined as 
``unauthorized.'' Therefore, the agency has replaced the term ``pirate 
outfitters'' with the term ``unauthorized outfitting and guiding 
activities'' in paragraph 4.
    In accordance with the holding in Wilderness Watch and the 
requirements of the Wilderness Act as described previously in the 
discussion of sections 37 to 37.24, the final policy in paragraphs 2 
and 3 does not authorize permanent structures in wilderness. The agency 
has replaced the term ``reserved site'' with the term ``assigned 
site,'' which is defined in section 27.05. In addition, the proposed 
use of specific assigned sites must be specified and described in 
operating plans and annual itineraries (sec. 41.53j).
    To ensure consistency in permit administration, the agency has 
included in paragraph 5 of this section direction not to issue a 
separate special use authorization for commercial service sites (such 
as a lodge or resort) that have outfitting and guiding activities as 
part of the authorized operation. (Section 37.03, Policy, provides 
direction on the use of the Graduated Rate Fee System to determine fees 
for outfitting and guiding activities authorized in connection with a 
commercial service site under permit.)
    Also, the agency has added ``hitching posts'' to the list in 
paragraph 2 of structures or improvements with negligible value and has 
moved ``pack stations'' from the list of structures or improvements 
with negligible value to the list of commercial public service sites in 
paragraph 5. This change more accurately acknowledges the value of pack 
station facilities.
    Section 41.53c--Definitions.--The agency has made the following 
revisions to this section: adds definitions for ``incidental use'' and 
``renewal'' and revises the definitions for ``priority use,'' 
``temporary use,'' and ``transportation livestock.'' The definitions 
for ``guiding'' and ``outfitting'' have been edited for clarity.
    ``Incidental use'' was previously undefined, although the term was 
used in direction to allow the authorized officer to waive permit 
requirements. The lack of a definition for ``incidental use'' has 
created discrepancies in determining impacts on the environment and on 
the quality of services provided to the public. The agency has defined 
``incidental use'' and has added it to this section.
    The agency has clarified the definition for ``priority use'' in 
conformance with Forest Service directive style; included the five-year 
maximum term specified in earlier interim directives; provided for 
determination of use based on the holder's past use and performance and 
on forest land and resource management plan allocations; and provided 
for renewal subject to certain conditions.
    This policy is consistent with applicable Federal regulations (36 
CFR 251.64) and with direction contained in the 1983 draft policy, the 
1984 interim directive, and the 1990 interim directive. These earlier 
directives provided for a five-year maximum term for priority use; 
reductions in priority use assignments and the number of permit holders 
based on forest land and resource management plan allocations; 
reductions in priority use assignments for reasons in the public 
interest, such as protection of forest resources and public health and 
safety; and changes in priority use assignments based on past use and 
performance.
    The agency has edited the definitions for ``temporary use'' and 
``transportation livestock'' to conform with Forest Service directive 
format and style.
    Section 41.53d--When Permits Are Required. The agency has revised 
this section to conform with Forest Service directive format and style. 
In addition, the agency has clarified that a permit is not needed when 
services are being provided to Forest Service contractors or Federal 
officials in the course of their official duties.
    Section 41.53e--Incidental Use. The agency has expanded and 
clarified this section by providing direction on authorizing incidental 
use. As defined in 41.53c, use is incidental when the proposed annual 
use is 50 service days or less and is anticipated to have little or no 
impact on public health and safety, the environment, or other 
authorized uses and activities.
    The agency developed Form FS-2700-25, Temporary Special-Use Permit, 
in June 1992 for authorizing use that is seasonal or of short duration 
and that involves minimal improvements or investment. The agency has 
included direction in the final policy on use of Form FS-2700-25. The 
agency has also included direction on use of Form FS-2700-4, Special-
Use Permit, rather than Form FS-2700-25, when the incidental use 
involves the following activities: white water travel, use of firearms, 
livestock or aircraft, or all-terrain or off-highway vehicle travel. 
[[Page 30835]] 
    Section 41.53f--Applications and Issuance of Permits.--The agency 
has added this section to clarify the application process and the 
process for issuance of permits under applicable Federal regulations 
(36 CFR 251.54) and Forest Service policy. Paragraph 3 has been added 
which addresses renewal of terminating permits. The final policy states 
that direction in FSM 2712.2 on issuance of prospectuses applies to new 
outfitting and guiding opportunities.
    The final policy directs the authorized officer to collect fees for 
outfitting and guiding under the authority of the LWCF Act of 1965. 
(Further discussion of this policy appears earlier in this notice under 
section 37.24.)
    The agency also has revised this section to include direction in 
paragraph 4 on change of ownership or control of the business entity. 
The agency has added the term ``business entity'' to distinguish this 
change in ownership from change in ownership of personal or real 
property. The agency also has expanded and edited this section to 
conform with direction in FSM 2716, Change of Ownership.
    Section 41.53q--Assignment and Management of Temporary Use. The 
agency has edited this section to conform with Forest Service directive 
format and style.
    Section 41.53h--Assignment and Management of Priority Use. To 
ensure consistency in administration and compliance with standards and 
guidelines in forest land and resource management plans, the agency has 
added that assignment of priority use and the amount of priority use 
shall be at the discretion of the authorized officer and shall be 
consistent with direction in forest land and resource management plans.
    To ensure consistency in administration, the agency has revised 
direction on reduction in the amount of priority use. The final policy 
(para. 3b) requires reduction in the amount of priority use if the 
holder has utilized less than 70 percent of the assigned amount for 
three consecutive years. The 1990 interim directive required reduction 
in the amount of priority use if the holder had used less than 70 
percent of the assigned amount in at least two of the past five years. 
This direction has been subject to broad interpretation and 
misapplication. The agency believes that a period of three consecutive 
years of under-utilization is easier to quantify and demonstrates a 
trend of lack of business due to a decrease in customer demand for 
services.
    Section 41.53i--Reduction of Use or Service Days. The agency has 
added direction that prior to reassigning use that may be available 
after a reduction, the authorized officer must solicit applications 
from current holders assigned priority use and base assignment of use 
on services proposed and performance.
    Section 41.53j--Permit Terms and Conditions. The agency has edited 
this section of the final policy to conform with Forest Service 
directive format and style and with standard terms and conditions in 
special use permits.
    Section 41.53k--Permit Administration. For clarity, the agency has 
put direction on performance standards and performance ratings of 
holders in separate paragraphs and provided more detailed direction, 
such as mid-season review and evaluation for all holders. This 
procedural direction is needed to meet due process requirements under 
Federal law for giving holders notice and the opportunity to comply. In 
addition, the section in the 1990 interim directive entitled 
``Subletting of Use'' has been retitled ``Assignment of Use'' as 
paragraph 2 in this section of the final policy.
    Section 41.521--Permits for Institutional and Semi-Public 
Outfitting and Guiding. This section now states that permits must be 
consistent with forest land and resource management plan direction.

Regulatory Impact

    This final policy has been reviewed under USDA procedures and 
Executive Order 12866 on Regulatory Planning and Review. It has been 
determined that this is not a significant policy. The final policy does 
not have an effect of $100 million or more on the economy; 
substantially increase prices or costs for consumers, industry, or 
State or local governments; or adversely affect competition, 
employment, investment, productivity, innovation, or the ability of 
domestic companies to compete in foreign markets. The final policy 
consists primarily of technical and administrative changes for 
authorization of occupancy and use of National Forest System lands.
    Moreover, this final policy has been considered in light of the 
Regulatory Flexibility Act (5 U.S.C. 601 et seq.). It has been 
determined that this final policy will not have a significant economic 
impact on a substantial number of small entities because it will not 
impose recordkeeping requirements on them; it will not affect their 
competitive position in relation to large entities; and it will not 
affect their cash flow, liquidity, or ability to remain in the market. 
As stated previously, this final policy consists primarily of technical 
and administrative changes concerning authorization of occupancy and 
use of National Forest System lands.

No Takings Implication

    This policy has been reviewed for its impact on private property 
rights under Executive Order 12630 of March 15, 1988, as implemented by 
the United States Attorney General's Guidelines for the Evaluation of 
Risk and Avoidance of Unanticipated Takings. Executive Order 12630 does 
not apply to this final policy because it consists primarily of 
technical and administrative changes governing authorization of 
occupancy and use of National Forest System lands. Forest Service 
special use authorizations for outfitting and guiding do not grant any 
right, title, or interest in or to lands or resources held by the 
United States.

Civil Justice Reform Act

    This policy has been reviewed under Executive Order 12778, Civil 
Justice Reform. After adoption of this final policy, (1) All State and 
local laws and regulations that conflict with this policy or that 
impede its full implementation will be preempted; (2) no retroactive 
effect will be given to this final policy; and (3) it will not require 
administrative proceedings before parties may file suit in court 
challenging its provisions.

Controlling Paperwork Burden on the Public

    This final policy contains information collection requirements as 
defined in 5 CFR 1220 that have been approved by the Office of 
Management and Budget and assigned control number 0596-0082. The agency 
estimates that the reporting burden for the collection of information 
in the policy is 5 to 10 hours per response.

Environmental Impact

    This final policy consists primarily of technical and 
administrative changes related to the authorization of occupancy and 
use of National Forest System lands. Section 31.1b of Forest Service 
Handbook 1909.15 (57 FR 43180 Sept. 18, 1992), categorically excludes 
from documentation in an environmental assessment (EA) or environmental 
impact statement (EIS) ``rules, regulations, or policies to establish 
Service-wide administrative procedures, program processes or 
instructions.'' Based on the nature and scope of this final policy, the 
agency has determined that it falls within this category of actions and 
that no extraordinary circumstances exist which [[Page 30836]] would 
require preparation of an EA or an EIS.

    Dated: May 30, 1995.
Mark A. Reimers,
Acting Chief.

Final Handbook Revision

    The Forest Service organizes its directive system by alpha-numeric 
codes and subject headings. Only those sections of the Forest Service 
Handbook (FSH) 2709.11, Special Uses Handbook, that are the subject of 
this notice are set out here. The audience for this direction is Forest 
Service employees charged with issuing and administering special use 
permits for outfitting and guiding.
CHAPTER 30--FEE DETERMINATION

    37--Outfitter and Guide Fees. (For related direction on special 
uses administration, see sec. 41.53).
    37.01--Authority. (Sec. 30.1; FSM 2701.1).
    37.03--Policy. (Sec. 31; FSM 2715.03).
    37.03a--Fees for Activities Associated with Commercial Public 
Service Site. Use the Graduated Rate Fee System (GRFS) (FSM 2715.11) to 
determine fees for outfitter and guide activities (such as cross-
country skiing or horseback riding) authorized by the Forest Service in 
connection with an authorized commercial public service site on 
National Forest System lands (such as a resort or lodge). Where 
applicable, require holders under GRFS to pay additional fees for 
assignment of sites (sec. 37.21h) and livestock grazing use (sec. 
37.21i).
    37.03b--Fees for Activities Not Associated with Commercial Public 
Service Site. Require payment of fees according to the direction in 
sections 37.21 to 37.24 for outfitter and guide activities authorized 
as a distinct activity not associated with a public service site.
    37.04--Responsibility. (FSM 2704.13). The Washington Office 
Director of Recreation, Heritage, and Wilderness Resources Management 
is responsible for adjusting the minimum fee and the assigned site fee 
every three years with 1993 as the base year, based on the Gross 
Domestic Product-Implicit Price Deflator Index.
    37.05--Definitions. See section 41.53c for additional definitions 
for ``guiding,'' ``holder,'' ``incidental use,'' ``outfitting,'' 
``priority use,'' ``renewal,'' ``temporary use,'' and ``transportation 
livestock''.
    Adjusted Gross Revenue. Gross revenue and revenue additions less 
applicable exclusions.
    Adjustment for Use Off National Forest System Lands. The reduction 
in the fee for commercial use to account for the portion of the 
outfitted or guided trip that occurs off National Forest System lands 
(sec. 37.21e).
    Assigned Site. A site that is designated and authorized for 
occupancy and use by a holder who is providing a recreation service to 
the public during the authorized period of occupancy. Examples include 
but are not limited to base and drop camps, picnic sites, loading 
facilities, boat launches, and helispots.
    Average Client-Day Charge. Adjusted gross revenue divided by the 
total number of client days for the duration of the outfitted or guided 
trip.
    Client Charge. The outfitter's or guide's charge per client for an 
outfitted or guided trip.
    Client Days.
    1. National Forest System Client Days. The number of service days 
(that is, days on National Forest System lands) for the duration of the 
outfitted or guided trip multiplied by the number of clients on the 
trip. See section 37.21c for related direction.
    2. Total Client Days. Where there is use both on and off National 
Forest System lands, the total number of days for the duration of the 
outfitted or guided trip multiplied by the number of clients on the 
trip. See section 37.21c for related direction.
    Duration of Outfitted or Guided Trip. The period that begins when 
the client first comes under the care and supervision of the outfitter 
or guide, including arrival at the holder's headquarters or local 
community, and ends when the client is released from the outfitter's or 
guide's care and supervision. Duration of the outfitted or guided trip 
is used to calculate client days, which in turn are used to determine 
the average client-day charge and the adjustment for use off the 
National Forest System lands. See section 37.21c for related direction.
    Gross Revenue. The total amount of receipts from the sale of goods 
or services provided by the holder in connection with the outfitted or 
guided trip. These receipts include:
    1. Revenue received by the holder from clients for goods or 
services provided during the outfitted or guided trip (the client 
charge per trip multiplied by the total number of clients on each 
trip);
    2. Revenue received by the holder or the holder's employees or 
agents for scheduling or booking the outfitted or guided trip; and
    3. Revenue from goods or services provided off National Forest 
System lands, such as lodging and meals, unless specifically excluded.
    Non-Use. Authorized use the holder did not use (see also 
``Unapproved non-use'').
    Revenue Additions. The market value of the following items which 
are added to gross revenue:
    1. The value of goods and services that are donated or the value of 
goods and services that are bartered in exchange for goods and services 
received that are directly related to the outfitted or guided trip; and
    2. The value of gratuities, which are goods, services, or 
privileges that are not available to the general public and that are 
donated or provided without charge or at a discount to organizations; 
individuals; the holder's employees, owners, or officers; or immediate 
family members of the holder's employees, owners, or officers.
    Revenue Exclusions. The following items which are excluded from 
gross revenue:
    1. Revenue derived from goods or services sold on private land that 
are not related to outfitting and guiding operations conducted on 
National Forest System lands, such as souvenirs, telephone toll 
charges, and accident insurance sales;
    2. Amounts paid or payable to a State government licensing 
authority or recreation administering agency from sales of hunting or 
fishing licenses and recreation fee tickets; and
    3. Revenue from the sale of operating equipment, rental equipment, 
capitalized assets, or other assets used in outfitting and guiding 
operations. Examples are horses, tack, watercraft, and rental skis and 
boots, which are sold periodically and replaced.
    Service Day. A day or any part of a day on National Forest System 
lands for which an outfitter or guide provides goods or services, 
including transportation, to a client.
    Short-Stop Fee. Fees for trips that use National Forest System 
lands incidental to the purpose of the trip, such as a bus tour that 
takes clients on a sightseeing trip. The rate is established by the 
Regional Forester for trips with two service days per client or less 
spent on national Forest System lands.
    Unapproved Non-Use. Authorized use days the holder has not used and 
for which the holder has not properly requested and received a waiver 
(see also ``Non-use'').
    37.1--Commercial Services Associated with Commercial Public Service 
Site. Use the Graduated Rate Fee system to determine outfitter and 
guide fees associated with such sites (sec. 37.03a and FSM 2715.11).
    37.2--Commercial Services Not Associated with Public Service Site 
[[Page 30837]] 
    37.21--Fees. Fees are assessed against adjusted gross revenue. Fees 
are also assessed against all unapproved non-use.
    37.21a--Minimum Fee. The minimum fee for outfitting and guiding on 
National Forest System lands is $70 annually per permit for 1993-1996. 
Using 1993 as a base year, the Washington Office Director of 
Recreation, Heritage, and Wilderness Resources Management adjusts the 
minimum fee every three years based on the Gross Domestic Product-
Implicit Price Deflator Index.
    37.21b--Fee for Temporary Use Permits for Incidental Use. When 
commercial outfitting and guiding is authorized by a temporary permit, 
use Form FS-2700-25, Temporary Special-Use Permit, to collect the 
minimum fee (sec. 3721a). The authorized officer may waive the minimum 
fee only if the use meets the criteria listed in 36 CFR 251.57 and 
section 31.21k.
    37.21c--Fee for Commercial Use. Calculate and collect a fee for 
commercial outfitting and guiding occurring on National Forest System 
lands. Charge for any commercial use of National Forest System lands 
for outfitting or guiding, even if unauthorized.
    Upon the authorized officer's approval of the prospective holder's 
application for a special use permit, advise the applicant to select 
option A or B (para. 1 and 2) to be used in calculating the fee. 
Include the selected method as a condition of the permit issued to the 
holder, and use that method to calculate the fee for the period 
authorized.
    1. Option A. The fee is based on an average client-day charge using 
the following schedule of rates:

                            Schedule of Rates                           
------------------------------------------------------------------------
 Average client-day charge (for client days on and                      
                   off NFS lands                       Client-day fee   
------------------------------------------------------------------------
Less than $8.00...................................  $.25                
8.01-20.00........................................  .40                 
20.01-35.00.......................................  .80                 
35.01-50.00.......................................  1.30                
50.01-75.00.......................................  1.90                
75.01-100.00......................................  2.60                
100.01-125.00.....................................  3.40                
125.01-150.00.....................................  4.10                
150.01-175.00.....................................  4.90                
175.01-200.00.....................................  5.60                
200.01-250.00.....................................  6.75                
250.01-300.00.....................................  8.25                
300.01-400.00.....................................  10.00               
Over 400.00.......................................  3 percent of the    
                                                     average, client-day
                                                     charge.            
------------------------------------------------------------------------

    Calculate the fee as follows:
    a. Client Days (National Forest System and Total). To determine the 
number of National Forest System client days, multiply the number of 
service days for the duration of the outfitted or guided trip by the 
number of clients on each trip. To determine the number of total client 
days, multiply the total number of days for the duration of the 
outfitted or guided trip by the number of clients on each trip. See 
example A-2 in this section for additional direction on determining 
total client days.
    b. Adjusted Gross Revenue. Multiply the client charge per trip by 
the total number of clients on each trip, add any other gross revenue 
and applicable revenue additions, and subtract any applicable revenue 
exclusions (sec. 37.05). This figure represents adjusted gross revenue 
for the duration of the outfitted or guided trip.
    c. Average Client-Day Charge. Divide the adjusted gross revenue by 
the number of client days (National Forest System or total) for the 
duration of the outfitted or guided trip. This figure is the average 
client-day charge.
    d. Client-Day Fee. Refer to the preceding Schedule of Rates, and 
use the average client-day charge to determine the client-day fee.
    e. Interim Calculation for Fee for Commercial Use. Where use is 
strictly on National Forest System lands, multiply the number of 
National Forest System client days by the client-day fee to determine 
the fee for commercial use. Where use is both on and off National 
Forest System lands, multiply the number of total client days by the 
client-day fee to determine the interim calculation for commercial use, 
and adjust for use off National Forest System lands under the following 
paragraph f.
    f. Adjustment for Use off National Forest System Lands. Adjust for 
use off National Forest System lands, if applicable, by dividing the 
number of National Forest Client days (or hours, miles, and so forth) 
by the number of total client days (or hours, miles, and so forth) to 
determine the amount of time spent on National Forest System lands. 
Refer to the schedule in section 37.21e to determine the appropriate 
percentage of fee reduction. See section 37.21e for the use of other 
equitable units of measure to determine adjustment for use off National 
Forest System lands.

    Example A-1: In one operating season, the holder is authorized 
to provide two trips, both of which are solely on NFS lands:

July 27-29 for 3 clients @ $450/client
August 18-21 for 7 clients @ $500/client

    a. Client Days (all NFS):


3 service days  x  3 clients =        9 NFS client days         ................................................
4 service days  x  7 clients =      28 NFS client days          ................................................
                                   ----------------------------                                                 
                                    37 NFS client days          ................................................
                                                                                                                

    b. Adjusted Gross Revenue:


$450  x  3 clients =   $1,350     ..............................................................................
$500  x  7 clients =   $3,500     ..............................................................................
                      -----------                                                                               
                       $4,850     gross revenue, plus $0 revenue additions and minus $0 revenue exclusions.     
                                                                                                                

    c. Average Client-Day Charge (all NFS client days in this 
example):


                                                                                                                
       $4,850 adjusted gross revenue                                                                            
-------------------------------------------  =   $131                                                           
            37 NFS client days                                                                                  
                                                                                                                

    d. Client-day Fee (all NFS client days in this example):
    $131 average client-day charge from step c corresponds to a 
$4.10 client-day fee.
    e. Fee for Commercial Use:

37 NFS client days  x  $4.10 client-day fee = $151.70 fee.

    [[Page 30838]] Example A-2: In one operating season, the holder 
is authorized to provide two trips. Both Trips include time on and 
off NFS lands.

July 4-13 for 8 clients @ $2,000/client
August 10-23 for 7 clients @ $3,000/client

    During each trip, 3 of the 10 days are on NFS lands.
    a. Client Days (Total):


10 total days  x  8 clients =       80 total client days                                                        
10 total days  x  7 clients =       70 total client days                                                        
                                  -----------------------------------                                           
                                   150 total client days                                                        
                                                                                                                

    b. Adjusted Gross Revenue:


$2,000  x  8 clients =    $16,000                                       
$3,000  x  7 clients =    $21,000                                       
                         ------------                                   
                          $37,000     gross revenue, plus $0 revenue    
                                       additions and minus $0 revenue   
                                       exclusions.                      
                                                                        

    c. Average Client-Day Charge:


                                                                                                                
      $37,000 adjusted gross revenue                                                                            
-------------------------------------------   = $246.67                                                         
           150 total client days                                                                                
                                                                                                                

    d. Client-Day Fee:
    $246.67 average client-day charge corresponds to a $6.75 client-
day fee.
    e. Interim Calculation for Fee for Commercial Use:

150 total client days  x  $6.75 client-day fee = $1,012.

    f. Adjustment for use off NFS lands:
    NFS client days:

                                                                                                                
                                                                                                                
                                                                                                                
3 service days  x  8 clients =      24 NFS client days                                                          
3 service days  x  7 clients =      21 NFS client days                                                          
                                   ----------------------------                                                 
                                    45 NFS client days                                                          
                                                                                                                


                                                                        
    45 NFS client days                                                  
--------------------------   = 30%                                      
  150 total client days                                                 
                                                                        

    Which corresponds to a 40% fee reduction (sec. 37.21e):

$1,012  x  40% = $404.80

$1,012 - 404.80 = $607.20 fee for commercial use, which can be 
rounded to $607.

    2. Option B. The fee is 3 percent of the annual adjusted gross 
revenue, minus any applicable adjustment for use off National Forest 
System lands. Determine the gross revenue, add any applicable revenue 
additions, and subtract any applicable revenue exclusions to determine 
the adjusted gross revenue. Multiply the adjusted gross revenue by 3 
percent; then adjust, if applicable, for use off National Forest System 
lands to determine the fee for commercial use (sec. 37.05; 37.21c, 
para. 1.b, and 37.21e).

    Example B-2: For one year, the holder had an annual adjusted 
gross revenue of $4,850 and used all 100 authorized use days.

$4850  x  0.03 = $145.50 fee for actual commercial use.

    Example B-2: For one year, the holder had an annual adjusted 
gross revenue of $4,650 and used 90 days of 100 authorized use days. 
Unapproved non-use accounted for 10 days.

$4,650  x  0.03 = $139.50 fee for 90 days of commercial use.


                                                                        
  $139.50                                                               
-----------  =     $1.55 per day                                        
  90 days                                                               
                                                                        

$1.55 per day  x  10 days = $15.50 fee for 10 days of unapproved 
non-use.
$139.50 + $15.50 = $155 fee for commercial use.
    Example B-3: An off-road tour outfitter has an adjusted gross 
revenue of $250,000. The travel routes used are across NFS lands and 
private lands. The time spent on NFS lands is 50 percent of the 
duration of the outfitted or guided trips.

$250,000  x  0.3 = $7,500

    50 percent duration on NFS lands corresponds to a 40% fee 
reduction (sec. 37.21e):

$7,500  x  40% = $3,000

$7,500-$3,000 = $4,500 fee for commercial use.

    3. Short-Stop Fee. (Sec. 37.05). Fees are calculated from rates 
established by the Regional Forester for situations in which commercial 
tours and trips involve only very short stops or visits on National 
Forest Systems lands of two service days or less.

    Example 1: A float plane company markets fishing trips to the 
National Forest, flies anglers to high mountain lakes, drops them 
off, and picks them up. The company has 175 passenger trips. In this 
example, the Regional Forester has established a short-stop rate of 
$2.00 per client for this service.

175 passenger trips  x  $2.00 = $350 fee for commercial use.

    Example 2: A bus company markets fall foliage tours and sends 
out 50 bus trips per season with 35 paying passengers. They stop at 
a National Forest Visitor Center for an average of 40 minutes. The 
Regional Forester [[Page 30839]] has established a short-stop rate 
of $2.00 per client.

35 people  x  50 buses  x  $2.00 = $3,500 fee for commercial use.

    37.21d--Determining Service Days. Count any full or fractional part 
of a day the client receives goods or services as a full service day.
    1. When livery, rental, supply, or drop-off service to customers is 
provided, count only the day on which the outfitter or guide provides 
services or goods.
    2. When the outfitter or guide provides drop-off and pick-up 
service on two separate days, count one service day for drop-off and 
one service day for pick-up.
    3. When the outfitter or guide provides drop-off and pick-up 
service and the clients occupy an outfitter's assigned site and/or the 
outfitter or guide furnishes equipment and supplies, count one service 
day for drop-off, one service day for pick-up, and one service day for 
each day in between.
    37.21e--Adjustment for Use off National Forest System Lands. Reduce 
the fee or estimated fee if the outfitter or guide's clients occupy 
National Forest System lands for 60 percent or less of the duration of 
the outfitted or guided trip according to the schedule in paragraph 1. 
When days are the unit of measure, at least one entire day must be off 
National Forest System lands to qualify for the adjustment. Other units 
of measure besides days may be used where equitable to calculate the 
percentage on and off National Forest System lands. For example, trail 
distance may be used at Nordic centers.
    1. Apply the following schedule in calculating adjustments for use 
off National Forest System lands:

             Schedule of Fee Reduction for Use Off NFS Lands            
------------------------------------------------------------------------
                Percentage on NFS Lands                   Fee reduction 
------------------------------------------------------------------------
Less than 5 percent...................................  80 percent.     
5 to 60 percent.......................................  40 percent.     
Over 60 percent.......................................  None.           
------------------------------------------------------------------------

Request the holder to provide documentation of the duration of trips, 
such as the itineraries for outfitted or guided trips, to support a 
request for a fee reduction based on use off National Forest System 
lands.
    2. When use off National Forest System lands occurs on lands 
administered by another Federal agency and the holder is authorized by 
that agency, coordinate the fee calculations so that overcharges do not 
occur.

    Example: An outfitter conducts a 10-day trip with 8 clients; 5 
days are spent on NFS lands and 5 on Bureau of Land Management (BLM) 
lands. Assume the fee for the trip would be $100 if all 10 days were 
on either NFS or BLM lands. Coordinate with the BLM to charge the 
outfitter $100, and split the fee equitably between the two 
agencies. Do not adjust for use off NFS lands which would result in 
a higher fee of $120 ($60 for the Forest Service and $60 for the 
BLM).

    37.21f--Fee for Additional Use. If the holder requests advance 
approval of additional use and if capacity is available, the authorized 
officer may approve the request and collect any additional estimated 
fees. When option A (sec. 37.21c, para. 1) is used to calculate the fee 
for commercial use, use the schedule of rates to calculate the 
additional fee. When option B (sec. 37.21c, para. 2) is used to 
calculate the fee for commercial use, estimate the additional adjusted 
gross revenue associated with the approved additional use, and include 
it in the calculation of the estimated and final fees (sec. 37.22 and 
37.23). See sections 41.53g and 41.53h for additional direction.
    37.21q--Payment for Unapproved Non-Use. Charge the holder for 
unapproved non-use when the holder does not properly request and 
receive a waiver for authorized use (see sec. 41.53h, para. 4). Add the 
amount calculated for unapproved non-use to the final fee total. This 
provision applies to calculation of the fee under option A or B.
    37.21h--Fee for Assigned Sites.
    1. The minimum annual fee for each assigned site is $140.
    2. Using 1993 as a base year, the Washington Office Director of 
Recreation, Heritage, and Wilderness Resources Management adjusts the 
minimum annual fee (in para. 1) that applies to each assigned site 
every three years based on the Gross Domestic Product-Implicit Price 
Deflator Index (sec. 37.04). The assigned site fee is in addition to 
the minimum permit fee and other mandatory fees for commercial 
outfitting and guiding (sec. 37.21c).
    3. The Regional Forester may establish higher fees if necessary to 
obtain fair market value.
    4. Authorized officers may not prorate assigned site fees. Apply 
the full annual fee for each assigned site.
    5. Authorized officers may not authorize refunds or credits for 
assigned site fees.
    37.21i--Fee for Grazing Livestock. Assess livestock grazing fees 
when the Forest Service authorizes the holder to graze animals used for 
transport on National Forest System lands. Do not assess a grazing fee 
when the animals travel on National Forest System lands but the holder 
is not authorized to graze them. Charge grazing fees in accordance with 
direction in FSM 2238. Do not authorize refunds or credits for 
authorized but unused grazing use.
    37.21j--Fee for Nonprofit Organizations. The fee for nonprofit 
organizations is three percent of annual adjusted gross revenue (option 
B, sec. 37.21c, para. 2). Include the amount of donations and grants as 
gross revenue if the holder requires the customer or client to make a 
donation or grant as a condition of receiving the service. Do not 
consider donations or grants made voluntarily by customers to support 
the programs or activities of the holder.
    37.21k--Fee for Educational Institutions. The fee is three percent 
of annual adjusted gross revenue (option B, sec. 37.21c, para. 2).
    1. Credited Programs. Exclude tuition and other payments made by 
students which are unrelated to the use of National Forest System lands 
authorized for outfitting and guiding purposes if the program provided 
under the permit is recognized for credit toward graduation or a degree 
in a recognized school system or accredited educational institution.
    2. Non-Credited Programs. Include all payments made by students for 
authorized outfitting and guiding services if the program provided 
under the permit is not recognized for credit toward graduation or a 
degree in a recognized school system or accredited educational 
institution.
    37.22--Estimate Fee.
    1. Consult with the applicant or holder to estimate the anticipated 
number of service days and adjusted gross revenue. Use financial and 
related documents furnished by the applicant or holder, including 
records of the previous year's business activity, planned customer rate 
schedules, and itineraries. Retain documents used for fee calculations 
in the case folder.
    2. Based on authorized use, calculate the total estimated annual 
fee, including the fee for commercial use, assigned site fee, and 
livestock grazing fee, on a fee determination statement (sec. 31.4) 
prior to the operating season.
    3. Establish payment due dates prior to the start of the operating 
season for all payments.
    4. Calculate the total estimated fee as a single amount, and 
collect the fee from the holder as follows:
    a. Collect the total annual estimated fee in advance when it is 
less than $500.
    b. Collect half of the total annual estimated fee in advance and 
the remainder by mid-season when the total [[Page 30840]] is equal to 
or greater than $500, but less than $2,500.
    c. Collect one-third of the total annual estimated fee in advance 
and the remainder in two equal payments by mid-season when the total is 
$2,500 or more.
    d. Deposit fees collected to the Land and Water Conservation Fund 
(FSM 6530).
    37.23--Fee for Commercial Use. Record in the holder's operating 
plan the date established by the authorized officer and the holder by 
which the holder must submit financial records and records of use 
required to calculate the fee for commercial use.
    In calculating the fee for commercial use, follow the procedure 
described in section 37.22, paragraph 1. Use financial records and 
records of use appropriate for the fee option selected (sec. 37.21c).
    37.24--Billing and Refunds. Calculate the fee for commercial use 
and adjust for use off National Forest System lands, if applicable. 
Charge the holder for any unapproved non-use. Charge the holder for any 
unauthorized use.
    1. When the final fee exceeds the paid estimated fee, bill the 
holder for the balance due.
    2. When the final fee is less than the paid estimated fee and more 
than the minimum fee, refund the difference to the holder. If the 
holder is authorized to operate with a priority use assignment, at the 
holder's request credit the overpayment toward the next year's fee. If 
the holder is authorized to operate with a priority use assignment and 
the authorization is due to expire that year, refund the difference to 
the holder.
    Follow billing and refund procedures found in FSH 6509.11k. Under 
the authority of the Land and Water Conservation Fund Act of 1964 (16 
U.S.C. 4601-6a (c) and (i)(1)), deposit fees into the Land and Water 
Conservation Fund (FSM 6530).

Chapter 40--Special Uses Administration

    41.53--Outfitters and Guides. (For related authorities, policies 
responsibilities, and definitions, see FSM 2340 and FSM 2701-2705. 
Direction on fees for outfitters and guides is in section 37 of this 
Handbook). Administer permits for outfitters and guides operating on 
National Forest System lands in accordance with the direction in 
sections 41.53a through 41.531. Outfitting and guiding services include 
but are not limited to packing, hunts, float trips, canoe or horse 
liveries, ski touring, helicopter skiing, jeep tours, boat tours, and 
fishing trips.
    41.53a--Objectives.
    1. As identified in forest and resource management plans, provide 
for commercial outfitting and guiding services that address concerns of 
public health and safety and that foster small businesses.
    2. Encourage skilled and experienced individuals and entities to 
conduct outfitting and guiding activities in a manner that protects 
environmental resources and ensures that National Forest visitors 
receive high quality services.
    41.53b--Policy. (FSM 2340.3, 2703).
    1. Authorize only those outfitting and guiding activities that are 
consistent with forest land and resource management plans.
    2. Do not authorize any development or permanent improvements on 
the National Forest System for outfitting and guiding services, except 
for temporary structures or improvements or installations with 
negligible value, such as hitching posts, corrals, tent frames, and 
shelters.
    3. Do not authorize any development, improvement, or installation 
in wilderness for the purpose of convenience to the holder or the 
holder's clients. The authorized officer may authorize temporary 
structures, improvements, or installations in wilderness only when 
necessary to meet minimum requirements for administration of the area 
for the purposes of the Wilderness Act (16 U.S.C. 1121 (note)).
    4. Work with other Federal agencies, State and local authorities, 
outfitters, and outfitter and guide organizations to ensure that 
outfitting and guiding activities are consistent with applicable laws 
and regulations and to identify unauthorized outfitting and guiding 
activities. Follow procedures in FSM 5300 in investigating and taking 
action to prevent the occurrence of unauthorized outfitting and guiding 
activities.
    5. Do not issue a separate permit for outfitting or guiding 
activities (such as cross-country skiing and horseback riding) to a 
holder of a permit or term permit for a commercial public service site 
(such as a pack station, lodge, or resort) when the outfitting or 
guiding operations are part of commercial public service site 
operations. Include the outfitting and guiding activities in the 
commercial service site's annual operating plan. Attach the annual 
operating plan to the commercial service site permit or term permit and 
consider it part of the permit or term permit. See section 37.03 for 
related direction on fees.
    41.53c--Definitions. See section 37.05 for additional related 
definitions for ``adjusted gross revenue,'' ``adjustment for use off 
National Forest System lands,'' ``assigned site,'' ``average client-day 
charge,'' ``client days,'' ``duration of the outfitted or guided 
trip,'' ``non-use,'' ``revenue additions,'' ``revenue exclusions,'' 
``service day,'' ``short-stop fee,'' and ``unapproved non-use.''
    Guiding. Providing services or assistance (such as supervision, 
protection, education, training, packing, touring, subsistence, 
interpretation, or other assistance to individuals or groups in their 
pursuit of a natural resource-based outdoor activity) for pecuniary 
remuneration or other gain. The term ``guide'' includes the holder's 
employees, agents, and instructors.
    Holder. An applicant who has received a special use authorization 
to conduct outfitting or guiding activities.
    Incidental Use. Annual use that is proposed to be 50 service days 
or less and is anticipated to have little or no significant impact on 
public health and safety, the environment, or other authorized uses and 
activities.
    Outfitting. Providing through rental or livery any saddle or pack 
animal, vehicle or boat, tents or camp gear, or similar supplies or 
equipment, for pecuniary remuneration or other gain. The term 
``outfitter'' includes the holder's employees, agents, and instructors.
    Priority Use. Authorization of use for a period not to exceed five 
years. The amount of use is based on the holder's past use and 
performance and on forest land and resource management plan 
allocations. Authorizations providing for priority use are subject to 
renewal (sec. 41.53f).
    Renewal. The issuance of a new special use authorization for the 
same use to the same holder upon the expiration of the holder's current 
authorization.
    Temporary Use. An amount of use assigned the holder of a permit 
with a period of one season or less.
    Transportation Livestock. Pack and saddle animals authorized in 
connection with an outfitter or guide permit and expressed in animal 
months and by class of animal (FSM 2234.11).
    41.53d--When Permits Are Required.
    1. Individuals or organizations conducting outfitting or guiding 
activities on National Forest System lands must have a permit unless 
the authorized officer (FSM 2705) issues a Temporary Special-Use Permit 
(Form FS-2700-25) for incidental use (sec. 41.53e).
    2. Outfitters based off National Forest System lands who rent and 
deliver equipment or livestock to the public on National Forest System 
lands must obtain a permit if they, their employees, or agents occupy 
or use National Forest [[Page 30841]] System lands or related waters in 
connection with their rental programs. For example, a permit is 
required if a boat livery operator provides service, including delivery 
or pickup of boats, at sites on National Forest System lands. No permit 
is necessary nor is a fee charged if an operator's customers transport 
rented equipment to and from the National Forest System lands or if an 
operation serves Forest Service employees, Forest Service contractors, 
or other Federal officials in the course of their official duties.
    41.53e--Incidental Use. When the proposed annual use is 50 service 
days or less and is expected to have little or no impact on public 
health and safety, the environment, or other authorized uses and 
activities on National Forest System lands, the use may be authorized 
by a temporary permit, Form FS-2700-25, Temporary Special-Use Permit. 
The following activities and uses shall not be authorized by a 
temporary permit and shall be authorized only by Form FS-2700-4, 
Special Use Permit: white water travel, use of firearms, livestock, or 
aircraft, or all-terrain and off-highway vehicle travel.
    41.53f--Applications and Issuance of Permits.
    1. Applications. Provide outfitter and guide applicants with Form 
FS-2700-3, Special Use Application and Report, to specify the services 
to be performed, the number of service days, the lands to be occupied, 
modes of transportation, season of use, scheduling, and other matters 
relating to the applicant's operation. Application and authorization 
procedures established in 36 CFR 251.54 and FSM 2712 are fully 
applicable to outfitter and guide applications. See FSM 2712.2 for 
direction regarding prospectuses for new opportunities as described in 
paragraphs 2a through 2d of this section.
    Conduct environmental analyses for outfitter and guide applications 
in accordance with procedures in FSH 1909.15, National Environmental 
Policy Act Handbook.
    2. Issuance. Outfitting and guiding permits may be issued when one 
or more of the following occurs:
    a. An increased allocation, capacity, or public need is identified 
through the forest planning process;
    b. An existing permit is revoked;
    c. A reduction of service days by an existing holder or holders 
makes additional service days available;
    d. Competitive interest in an area, unit, or activity arises where 
no previously authorized use exists and where the proposed use is 
compatible with objectives in forest land and resource management 
plans;
    e. An application has been submitted to provide outfitter and guide 
services for an area or activity that has not previously been 
authorized and for which there is no competitive interest; or
    f. An existing permit terminates.
    For situations fitting the criteria in the preceding paragraphs 2a 
through 2d, solicit applicants by issuing a prospectus and contacting 
all parties who have expressed an interest. See FSM 2712.2 for 
additional direction on issuing a prospectus.
    For an application fitting the criteria in the preceding paragraph 
2e, document the determination of no competitive interest and then 
issue a permit to the qualified applicant. In issuing the permit, 
classify authorized use as temporary use until the holder has performed 
acceptably for at least two consecutive years.
    When determining the most qualified applicants, consider past 
experience and knowledge of the area, financial capability, economic 
viability of existing holders, performance record, return to the 
Government, and other factors. The authorized officer may classify the 
use as priority if the selected applicant has a two-year record of 
acceptable performance as a holder of a permit for an outfitting and 
guiding operation similar to the proposed use. Process requests to 
expand a current holder's operations as an application for temporary 
use under section 41.53g. For a selected applicant with no previous 
record, classify the use as temporary.
    Issue temporary permits and permits under the authority of the Land 
and Water Conservation Fund Act of September 3, 1964 (16 U.S.C. 460l-
6a(c)), on Form FS-2700-25, Temporary Special-Use Permit, and on Form 
FS-2700-4, Special-Use Permit, respectively.
    3. Renewal without Competition. When a permit of a holder assigned 
priority use terminates (preceding para. 2f) the permit is subject to 
renewal without competition, provided the current holder has performed 
satisfactorily as demonstrated by acceptable annual performance 
inspections. Renewal shall be at the sole discretion of the authorized 
officer and shall be in accordance with 36 CFR 251.64. In renewing the 
permit, the authorized officer may modify the terms and conditions of 
the permit.
    4. Change of Ownership or Control of Business Entity.
    a. Upon notification by the holder that a change in ownership of or 
a controlling interest in the business entity is being considered, the 
authorized officer shall inform the holder of the following:
    (1) The permit is a privilege and is not transferable, either upon 
the sale of the business entity or the sale of a controlling interest 
in the business entity;
    (2) Priority use is a privilege acquired by demonstrated acceptable 
performance and is not transferable;
    (3) The permit is not real property, does not convey any interest 
in real property, and may not be used as collateral;
    (4) Upon consummation of a change of ownership of or controlling 
interest in the business entity, the holder's permit terminates; and
    (5) The party who acquires ownership of or a controlling interest 
in the business entity may be issued a permit if the authorized officer 
determines that the prospective holder meets Forest Service 
requirements, including financial and technical capability.
    b. The authorized officer shall inform the holder to submit Form 
FS-2700-3a, Request for Termination of an Application for Special-Use 
Permit, for relinquishment of the permit.
    c. The authorized officer shall inform the party who acquires 
ownership of or a controlling interest in the business entity to 
submit:
    (1) An application for a permit on Form FS-2700-3, Special Use 
Application and Report; and
    (2) Documentation of change of ownership, including properly 
executed documents showing a bona fide conveyance of the equipment or 
other assets previously used by the business, and for businesses based 
on private land, properly executed documents showing a bona fide 
conveyance of the real and personal property used by the business; or
    (3) Documentation of a change of control, including properly 
executed documents showing a bona fide change of a controlling interest 
in the business entity.
    d. If the change of ownership or control is not consummated and the 
original holder has relinquished the permit, the authorized officer may 
reissue the permit to the original holder. Prior to reissuance, the 
authorized officer must request the original holder to submit 
documentation establishing ownership or control of the business entity.
    41.53q--Assignment and Management of Temporary Use.
    1. Eligibility. All qualified applicants, including institutional 
and semi-public entities and holders of permits assigned priority use, 
are eligible to receive [[Page 30842]] temporary use assignments. 
Current holders assigned priority use and proposing to expand their use 
may also submit an application. Approved additional use may be assigned 
as temporary use.
    2. Assignment of Temporary Use. If capacity is available, temporary 
use may be authorized if the need for the use exists and the use is 
consistent with the forest land and resource management plans (FSM 
1920). If forest land and resource management plans do not address the 
use and/or capacity levels, assignments shall be at the discretion of 
the authorized officer subject to the requirements of the National 
Environmental Policy Act (FSH 1909.15). A temporary use assignment does 
not commit the Forest Service to authorizing that use for a similar 
number of service days in the future.
    3. Conversion to Priority Use. A holder authorized for at least two 
years may be eligible for assignment of priority use if it is in the 
best interest of the Forest Service and the use is compatible with 
forest land and resource management plans. Assignment of priority use 
shall be based on documented acceptable performance by the holder for 
two consecutive years. The amount of use authorized may be based on the 
previous two-year average authorized use which was actually used. See 
section 41.53h, paragraph 2, for limitations on assignment of priority 
use.
    41.53h--Assignment and Management of Priority Use.
    1. Eligibility. Previously authorized outfitters or guides who have 
made their services available to all members of the public and who have 
performed acceptably for the previous two consecutive years may be 
eligible for assignment of priority use.
    Outfitters or guides who provide services only to private or 
restricted clientele are not eligible for assignment of priority use. 
See section 41.531 for additional direction on semi-public outfitting 
and guiding.
    2. Assignment of Priority Use. Assignment of priority use shall be 
at the discretion of the authorized officer and shall be consistent 
with forest land and resource management plans. Base any assignment of 
priority use on the capacity of the area or standards and guidelines as 
established in forest land and resource management plans.
    a. Use may be based on the average of the highest two years of 
actual use authorized use which was actually used during the previous 
five years.
    b. Record the following on the permit:
    (1) The amount of authorized use in terms of service days, season, 
months, weeks, people-at-one-time (PAOT), or similar time factors that 
may apply;
    (2) The nature of the authorized service or activity (such as big 
game hunting, white water rafting, or fishing trips);
    (3) The resource area (such as wilderness, river, or administrative 
unit) within which the service or activity is to be authorized; and
    (4) The various modes of transportation to be used and other 
factors necessary to define the quality and scope of the activity.
    3. Management of Priority Use.
    a. Establish use in terms of service days. Where recreation use 
levels are planned and managed in terms of launches and people per 
launch, camps and people per camp, or trips and people per trip, 
specify numbers of launches, campsites, and/or trips authorized for 
those service days.
    b. When a permit is about to terminate and the holder has applied 
for renewal of the permit, the assignment of priority use for the new 
permit shall be at the discretion of the authorized officer and shall 
be consistent with forest land and resource management plans. Consider 
general market and other economic fluctuations, availability of state 
hunting licenses, and natural phenomena which may have adversely 
affected the ability of the holder to utilize the authorized use fully. 
The authorized officer may assign priority use consistent with the 
level of use utilized effectively under the former permit. If capacity 
is available and environmental analyses have been completed, authorize 
the amount of additional use that has been effectively used during the 
temporary use period. Base the amount of use recorded in the new permit 
as described in the preceding paragraph 2b(2). Reduce the authorized 
use if the holder has utilized less than 70 percent of the assigned 
amount in each of three consecutive years. Make no reductions in use 
assignment if non-use was approved by the authorized officer in 
accordance with the following paragraph 4.
    4. Approved Non-Use. Prior to allowing the holder to operate, the 
authorized officer must review and approve a holder's annual proposed 
itinerary and requests for amendments to an operating plan. Any 
deviations from the assigned amount of use (referred to as ``approved 
non-use'') must be approved by the authorized officer. The authorized 
officer must document the basis for approving non-use and provide a 
copy to the holder. The holder is not responsible for fee payment on 
approved non-use.
    Non-use may be approved:
    a. To protect natural resources, to address concerns of public 
health and safety, or to prevent conflicts with other authorized uses 
of National Forest System lands; or
    b. When requested by a holder far enough in advance to allow the 
authorized officer to reassign the approved non-use to other holders, 
if appropriate.
    41.53i--Reduction of Use or Service Days. See section 41.53h, 
paragraph 3b, for additional direction on calculating reductions.
    1. Amendments to or revisions of forest land and resource 
management plans may establish a level of outfitting and guiding that 
could result in a reduction of a holder's use or service days. When 
considering renewal of the permit, the authorized officer has three 
options:
    a. Request holder(s) to reduce use voluntarily;
    b. Proportionally reduce use for holders; or
    c. Reassign the amount of use through solicitation of applications 
by issuing a prospectus. Limit solicitation to current holders who are 
assigned priority use. Base assignment of use on services proposed and 
performance. When reassigning use or service days, consider the 
holder's performance, experience and knowledge of the area, financial 
capability, performance record, return to the Government, economic 
viability of other holders, and other appropriate factors.
    41.53j--Permit Terms and Conditions.
    1. For new applicants, authorize use for periods not to exceed one 
year. For holders who are assigned priority use, a period of up to five 
years may be authorized. To the extent possible, issue permits with a 
length coinciding with time periods in forest land and resource 
management plans, as appropriate.
    2. For applicants who have a limited record or no record of 
performance, a one-year permit subject to a conditional one-year 
renewal may be issued to provide a performance evaluation period. Renew 
the use and amend the permit term, unless the permit is revoked after 
the first year under section 41.53k, paragraph 1e(2).
    3. Use the standard mandatory clauses for outfitter and guide 
service as defined in section 52. Include standard clauses from section 
53 as appropriate.
    4. Enter the total number of service days in each use category on 
the permit. Specify in the permit, operating plans, and annual 
itineraries all of the various modes of transportation authorized. 
[[Page 30843]] Show amounts and class of use. If applicable, enter the 
number of launches and people per launch, camps and people per camp, or 
trips and people per trip associated with the use.
    5. Require an annual operating plan for the period of the permit 
and approval of an annual itinerary as a provision of the permit.
    6. Indicate in the permit the amount of livestock used for 
transportation of people and equipment in connection with the activity, 
and specify if the livestock may graze. Do not issue a separate 
livestock use permit. Include a clause that requires the holder to 
record and report the amount of livestock grazing use that will 
actually occur with the outfitting or guiding use. Report livestock 
grazing use in the Annual Grazing Statistical Report (Report FS-2200-
j). Do not report occupancy by animals that were not authorized to 
graze.
    7. Specify and describe proposed use of specific assigned sites in 
operating plans and annual itineraries.
    8. Allow holders to choose one of two alternative fee systems based 
on FSH 2709.11, section 37.21c (option A or B).
    9. Require holders to provide accurate information through an 
actual use report within 30 days of the close of the operating season.
    10. Require holders to maintain accounting records in accordance 
with generally accepted accounting principles or other comprehensive 
bases of accounting, to make those records available to the Forest 
Service for review, and to retain them for at least five years.
    11. The holder may be required to have public liability insurance 
under FSM 2713.32. The holder's insurance must name the United States 
Government as an additional insured.
    41.54k--Permit Administration.
    1. Performance Review and Evaluation. Monitor authorized operations 
to verify compliance with permit terms and conditions during the season 
of use. Assignment of priority use depends on documentation of 
satisfactory performance. More frequent reviews may be necessary to 
achieve compliance with the permit terms and conditions. Conduct a mid-
season performance review and evaluation of the holder's operations. 
See FSM 2716.5 for additional direction.
    a. Performance Standards. Forest Supervisors shall develop specific 
performance standards for inclusion in each permit and/or operating 
plan in consultation with District Rangers and individual holders, 
outfitter and guide licensing agencies, advisory councils, and other 
State and Federal land management agencies. At a minimum, Forest 
Supervisors shall develop specific standards for the degree of 
compliance with terms of the permit and operating plans and 
itineraries, customer satisfaction, and protection of natural 
resources.
    b. Performance Ratings. Evaluate the holder's overall performance 
using three performance ratings: Acceptable, Probationary, and 
Unacceptable. Base these ratings on the specific performance standards 
included in the holder's permit and/or operating plan.
    c. Mid-Season Review and Evaluation. Conduct a mid-season review 
and evaluation of all holders. Notify the holder in writing of the 
results of this mid-season review and evaluation. Include:
    (1) Any deficiencies or items of noncompliance; and
    (2) A time frame for remedying deficiencies and correcting 
noncompliance.
    d. Second Review and Evaluation. Conduct a second review and 
evaluation at the end of each operating season if the mid-season review 
and evaluation disclose deficiencies or items of noncompliance that 
would substantiate a rating of Unacceptable, or in the case of holders 
assigned priority use, a rating of Unacceptable or Probationary. Notify 
the holder in writing of the results of this second review and 
evaluation. Include:
    (1) Any deficiencies or items of noncompliance identified at mid-
season and not remedied or corrected; and
    (2) Any deficiencies or items of noncompliance identified during 
the second review.
    e. Annual Ratings. Rate every holder at the end of the operating 
season. Provide the holder with a copy of the rating, and include 
notification of the holder's right to appeal.
    (1) Holders Assigned Priority Use.
    (a) If a holder receives an annual rating of Probationary at the 
end of the permit year, reduce the term of the permit to no more than 
one additional year. If at the end of that period the holder receives 
an annual rating of Probationary or Unacceptable, the authorized 
officer shall not renew the permit and shall allow the permit to 
terminate. If at the end of the additional year the holder receives an 
annual rating of Acceptable, the holder may again be assigned priority 
use, and the permit is subject to renewal under section 41.53f, 
paragraph 2f.
    (b) If a holder receives an annual rating of Unacceptable, the 
permit shall be revoked. In the case of a permit that is about to 
expire, it shall be allowed to terminate.
    (c) Holders may appeal final ratings of Probationary and 
Unacceptable under applicable Federal regulations. Termination of a 
permit is not subject to appeal.
    (2) Holders Not Assigned Priority Use.
    (a) If a holder receives an annual rating of Acceptable at the end 
of the permit year, the authorized officer may renew the permit for no 
more than one additional year. If at the end of that period the holder 
receives an annual rating of Acceptable then the holder may be eligible 
for assignment of priority use. See section 41.53g for additional 
direction on conversion to priority use.
    (b) If a holder receives an annual rating of Unacceptable, the 
permit shall be revoked or allowed to terminate.
    (c) Holders may appeal an annual rating of Unacceptable under 
applicable Federal regulations. Termination of a permit is not subject 
to appeal.
    2. Assignment of Use. Do not approve requests to assign all or part 
of the authorized use to others. If a holder is unable or unwilling to 
provide the services authorized by the permit, revoke the permit or 
reduce the authorized use. If appropriate, assign the amount of use to 
others in accordance with section 41.53h.
    41.531--Permits for Institutional and Semi-Public Outfitting and 
Guiding. Permits may be issued to institutional and semi-public 
outfitting and guiding applicants consistent with forest land and 
resource management plan direction for commercial use and group size. 
Schedules and services may fluctuate from season to season or year to 
year. Applicants may include a variety of membership or limited-
constituency institutions, such as religious, conservation, youth, 
fraternal, service club, and social groups; educational institutions, 
such as schools, colleges and universities; and similar common interest 
organizations and associations. This category may also include 
applicants who operate commercially on a limited or intermittent basis 
in providing service to selected customer clientele rather than to the 
public at large. Outfitting and guiding activities conducted by 
institutional or semi-public groups may be authorized regardless of 
whether a fee or other consideration is collected from participants.
    1. Issue permits when the use furthers the public interest and can 
be accommodated without causing unacceptable resource impacts or 
conflicts with other authorized users. The authorized activities must 
be consistent with applicable laws, regulations, and forest land and 
[[Page 30844]] resource management plans. See 36 CFR Part 251, Subpart 
B, for additional requirements on when a permit is required.
    2. Ensure that applicants demonstrate financial and technical 
capability to meet the terms and conditions of the permit.
    3. Issue a temporary permit, Form FS-2700-25, Temporary Special-Use 
Permit, if the permit period is for one year or less, such as for a 
single trip. See section 41.53e for direction on incidental use.
    4. Do not assign priority use to holders of permits for 
institutional or semi-public outfitting and guiding.
    5. Require an operating plan for permits issued for continuing 
intermittent use. An operating plan may also be necessary for single-
trip permits to ensure public safety and resource protection, depending 
on the nature and scope of the trip.
    6. Document performance evaluation as described in section 41.53k 
is optional.
    7. Determine fees and fee waivers based on chapter 30 of this 
Handbook.

[FR Doc. 95-14361 Filed 6-9-95; 8:45 am]
BILLING CODE 3410-11-M