[Federal Register Volume 60, Number 117 (Monday, June 19, 1995)]
[Proposed Rules]
[Page 31935]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14933]



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DEPARTMENT OF THE INTERIOR

Bureau of Land Management

43 CFR Part 3150

[WO-610-4110-02 1A]
RIN 1004-AC25


Onshore Oil and Gas Geophysical Exploration

AGENCY: Bureau of Land Management, Interior.

ACTION: Advance notice of proposed rulemaking.

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SUMMARY: The Bureau of Land Management gives notice of its intention to 
propose a rule to: Impose a fee to recover costs incurred for 
processing notices of intent to conduct onshore oil and gas geophysical 
exploration; and establish guidelines for charging fair market value 
for the use of Federal lands during onshore oil and gas geophysical 
exploration operations. The purpose of this notice is to solicit 
comments to help guide preparation of the proposed rule.

DATES: Comments on the advance notice of proposed rulemaking must be 
received by August 21, 1995. Comments postmarked after this date may 
not be considered in the preparation of the proposed rule.

ADDRESSES: Comments should be sent to: Director (140), Bureau of Land 
Management, Room 5555, 1849 C Street, N.W., Washington, D.C. 20240. 
Comments can also be sent to WO[email protected]. Please include ``attn: 
AC25'' and your name and return address in your internet message. 
Comments will be available for public review at the above address 
during regular business hours (7:45 a.m. to 4:15 p.m.), Monday through 
Friday.

FOR FURTHER INFORMATION CONTACT: Erick Kaarlela, Leader, Compliance 
Team, Bureau of Land Management, (202) 452-0340.

SUPPLEMENTARY INFORMATION: The rule will be proposed based on 
recommendations by the Office of the Inspector General (OIG) for the 
Department of the Interior. The OIG recommended that the Bureau of Land 
Management: (1) impose a $500 fee to recover the costs of processing a 
notice of intent to conduct oil and gas geophysical exploration 
operations; and (2) establish and implement procedures for charging 
operators fair market value for use of Federal lands during onshore oil 
and gas geophysical exploration and seismic surveys.
    Office of Management and Budget Circular No. A-25, as amended and 
supplemented, requires agencies to establish user charges based on 
sound management principles and, to the extent feasible, in accordance 
with commercial practices. The charges need not be limited to the 
recovery of costs; they may also produce net revenues to the Federal 
Government. The Federal Land Policy and Management Act (FLPMA) (43 
U.S.C. 1701 et seq.) reaffirmed long-standing Congressional support of 
fair market value as a basis for fees. Section 102(a) of FLPMA (43 
U.S.C. 1701(a)) states that it is the policy of the United States that 
the United States must receive fair market value for the use of the 
public lands and their resources unless otherwise provided for by 
statute. Section 304 of FLPMA (43 U.S.C. 1734) authorizes the Secretary 
to establish reasonable filing and service fees and reasonable charges.
    This advance notice of proposed rulemaking presents only a general 
description of the actions being considered and includes no regulatory 
text.
    The Bureau of Land Management currently charges no filing fee for 
notices of intent (NOI) for oil and gas geophysical exploration for 
lands outside of Alaska. Other Federal agencies, including the Forest 
Service, the Fish and Wildlife Service, and the Bureau of Indian 
Affairs, issue permits and charge fees for oil and gas geophysical 
exploration. Additionally, several State governments charge fees for 
geophysical exploration. Research has shown that BLM incurs costs per 
case estimated to range from $450 to $1,500 in processing and 
monitoring each NOI.
    Most agencies base charges for conducting geophysical surveys on 
line miles of the seismic survey. However, some agencies use the number 
of shot holes or other criteria to calculate the charge and/or fee. 
Charges range from nothing up to about $1,000 per line mile, with the 
average being a few hundred dollars per line mile.
    In publishing this advance notice of intent to propose rulemaking, 
the Bureau of Land Management requests information and public comments 
on:
    a. The effect of charging a $500 fee to recover the cost of 
processing a notice of intent to conduct onshore oil and gas 
geophysical exploration operations.
    b. The effect of an additional charge for the use of the surface of 
Federal lands while conducting oil and gas geophysical surveys. (The 
additional charge would not apply to a Federal lessee conducting such 
activities on its own leases.)
    c. The most appropriate method of determining the additional charge 
for surface use, including the following possibilities:
    1. Whether the surface use charge should be based on a flat rate of 
$200 per seismic line mile or fraction thereof;
    2. Whether the surface use charge should be based on the size of 
the area affected by the survey, e.g., $800 per section or square mile 
involved.
    3. Whether the surface use charge options in 1. and 2., above, 
should be higher for those seismic methods involving more extensive 
surface disturbance.
    The public is invited to raise any additional issues of concern 
related to the proposed processing fee and surface use charges for 
geophysical exploration operations, including any other factors that 
should be considered in determining the reasonableness of the proposed 
fee and charge.
    The principal author of this advance notice of proposed rulemaking 
is Gloria Jean Austin of the of Fluids Group, Compliance Team, assisted 
by the staff of the Regulatory Management Team, Bureau of Land 
Management.

    Dated: June 13, 1995.
Sylvia V. Baca,
Acting Assistant Secretary of the Interior.
[FR Doc. 95-14933 Filed 6-16-95; 8:45 am]
BILLING CODE 4130-84-P