[Federal Register Volume 64, Number 34 (Monday, February 22, 1999)]
[Notices]
[Pages 8682-8690]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-4294]



[[Page 8681]]

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Part III





Department of Agriculture





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Forest Service



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Ski Area Permit Fee System; Notice

  Federal Register / Vol. 64, No. 34 / Monday, February 22, 1999 / 
Notices  

[[Page 8682]]



DEPARTMENT OF AGRICULTURE

Forest Service


Ski Area Permit Fee System

RIN 0596-AB49
AGENCY: Forest Service, USDA.

ACTION: Notice; adoption of final policy.

-----------------------------------------------------------------------

SUMMARY: The Forest Service is adopting final policy and procedures for 
determining permit fees for ski areas on National Forest System lands. 
The policy and procedures are being issued as amendments to the Forest 
Service Manual (FSM) chapter 2720 and the Forest Service Handbook (FSH) 
2709.11, chapters 30 and 50. The policy and procedures implement the 
ski area permit fee system established by section 701 of the Omnibus 
Parks and Public Lands Management Act of 1996. The intended effect is 
to streamline and improve the consistency of permit administration for 
ski areas for both the Forest Service and ski area permit holders. 
Prior to the establishment of this ski area permit fee system, permit 
fees for most ski areas operating on National Forest System lands have 
been determined under the graduated rate fee system (GRFS), which is 
complex and costly to administer for large ski areas and has also been 
the subject of several audits, administrative appeals, and lawsuits.

DATES: These amendments are effective February 26, 1999.

FOR FURTHER INFORMATION CONTACT: Alice Carlton, Recreation, Heritage, 
and Wilderness Resources Staff, Forest Service, USDA, P.O. Box 96090, 
Washington, DC 20090-6090, (202) 205-1399. See the SUPPLEMENTARY 
INFORMATION section for information on electronic access to Forest 
Service directives.

SUPPLEMENTARY INFORMATION:

Background

    Section 701(i) of the Omnibus Parks and Public Lands Management Act 
of 1996 (16 U.S.C. 497c) mandates that a new permit fee system be 
implemented for those ski areas operating on National Forest System 
lands that are authorized under the National Forest Ski Area Permit Act 
of 1986 (16 U.S.C. 497b) and for those ski areas authorized under the 
Organic Act of 1897 or the Term Permit Act of 1915 that elect the new 
fee system.
    Because the Omnibus Parks and Public Lands Management Act of 1996 
provides very little discretion to the agency in implementing the new 
fee system, the agency is proceeding to issue final policy and 
procedures to guide its employees in implementing this fee system. 
Permit fees for most ski areas operating on National Forest System 
lands have been determined under the graduated rate fee system (GRFS), 
which is complex and costly to administer for large ski areas and has 
also been the subject of several audits, administrative appeals, and 
lawsuits. Prior to passage of the act, the agency had published notice 
in the Federal Register of a proposed fee system based on site-specific 
appraisals (60 FR 36097, July 13, 1995). That proposed fee system was 
not finalized, because it was superseded by the fee system established 
by section 701 of the act.
    The National Forest Ski Area Permit Act of 1986 authorizes the 
Forest Service to issue permits for the use and occupancy of suitable 
lands within the National Forest System for nordic and alpine skiing 
operations and purposes (16 U.S.C. 497b). Ski area permits issued 
before the effective date of the National Forest Ski Area Permit Act 
are authorized by the Term Permit Act (16 U.S.C. 497) and the Forest 
Service's Organic Act (16 U.S.C. 551).
    Approximately 135 alpine or alpine and nordic ski areas are 
operating on National Forest System lands. Of those permitted areas, 
most pay annual permit fees determined under the graduated rate fee 
system (GRFS), while 15 to 20 permitted areas pay annual flat permit 
fees based either on GRFS principles or on a percentage of land value.
    GRFS has been in effect for more than two decades and is complex 
and difficult to administer for ski areas. As applied to large ski 
areas, GRFS is not only costly to administer but also has been the 
subject of continuous controversy as evidenced by several audits, 
administrative appeals, and lawsuits.
    The General Accounting Office (GAO), which conducted audits of the 
GRFS system in 1988, 1993, and 1996, concluded that GRFS does not 
reflect fair market value and recommended revision of the fee 
calculation system for ski areas. The U.S. Department of Agriculture's 
Office of Inspector General conducted internal audits of GRFS in 1993 
and 1994 and recommended that the Forest Service pursue new systems for 
determining ski area permit fees based on fair market value.
    Due to the historical controversy of ski area permit fees and the 
need for multidisciplinary expertise in this area, a Departmental 
Working Group was formed in July 1994 to expedite development of a new 
ski area permit fee system based on fair market value. The working 
group included representatives from the Forest Service, the Office of 
Inspector General, the Office of the General Counsel, and the Office of 
the Chief Financial Officer.
    In September 1994, the Forest Service awarded a contract to 
identify methods pertinent to determining the fair market value of the 
use of National Forest System lands by ski areas. The contractor's 
December 1994 report analyzed 14 valuation techniques, including land 
valuation methods, business valuation methods, and a competitive bid 
valuation method. At the request of the Departmental Working Group, the 
Forest Service contracted for a written technical review of the 
contractor's report by two expert real estate appraisers.
    A Federal advisory committee also was established in February 1995 
to advise the Secretary of Agriculture on development of a new ski area 
permit fee system.
    On July 13, 1995, the Forest Service published in the Federal 
Register for comment a proposed policy for a ski area permit fee system 
based on site-specific appraisals of the use of National Forest System 
lands by ski areas (60 FR 36097). Comments were received on the 
proposal, but the policy was not finalized because of the anticipated 
passage of legislation (first introduced in 1992) that would establish 
a different ski area permit fee system based on a percentage of 
revenues. This legislation was reintroduced in the 104th Congress and 
was signed into law on November 12, 1996 as Title VII, section 701, of 
the Omnibus Parks and Public Lands Management Act of 1996 (16 U.S.C. 
497c).
    Section 701 of the act requires permit fee calculations to be based 
on a percentage of revenue derived from use of National Forest System 
lands for ski areas authorized under the National Forest Ski Area 
Permit Act 1986 (16 U.S.C. 497b) and for ski areas with permits issued 
under other authorities that elect the new ski area permit fee system. 
The total fee is the sum of the amount of revenue in each of four 
revenue brackets, multiplied by progressively increasing percentages. 
Revenues from year-round operations of the ski areas (such as alpine 
and nordic lift tickets, passes, and ski school revenues) are included 
and are prorated according to the percentage of use of public compared 
to private land. Revenue from year-round ancillary facilities and 
operations is included only when the facilities or operations are 
located on public land. The value of bartered goods and the value of 
most complimentary lift tickets, as well as special event revenues, 
also are included in the fee calculation.

[[Page 8683]]

    This ski area fee system is expected to be simpler and less costly 
to administer than GRFS, by eliminating the need for burdensome audits 
of ski area assets for those ski areas under the new system. This 
system is also expected to result in nationally consistent fee 
determinations. Every five years the Forest Service is required to 
determine whether the fee system reflects fair market value and to 
submit a report to Congress on its findings.

Conclusion

    The text of the final ski area permit fee system direction as it is 
being issued in amendments to the Forest Service Manual (FSM) chapter 
2720 and to Forest Service Handbook (FSH) 2709.11, Special Uses 
Handbook, chapters 30 and 50 is set forth at the end of this document.
    Ski areas authorized under the National Forest Ski Area Permit Act 
of 1986 (16 U.S.C. 497b), and ski areas authorized under other 
authorities that so elect, would pay fees under the ski area permit fee 
system established by the Omnibus Parks and Public Lands Management Act 
of 1996 (16 U.S.C. 497c). Direction on specific circumstances under 
which the permit fee system established by 16 U.S.C. 497c applies to 
ski areas is found in FSM 2720.
    The permit fee system established by 16 U.S.C. 497c is based on 
revenue from ski area lift tickets and passes and ski school operations 
(both alpine and nordic), adjusted for that portion of use that occurs 
on National Forest System lands, and revenue from ancillary facilities 
and operations that are located on National Forest System lands. 
Included in revenue are the value of bartered goods, and complimentary 
lift tickets and the revenue from special events. The permit fee is 
determined by applying progressively increasing percentage rates to the 
revenue amounts that fall into each of four revenue brackets, and 
summing the results. The implementing policy and procedures for fee 
calculation pursuant to 16 U.S.C. 497c are set out in FSH 2709.11, 
chapter 30.
    The permit clause used to implement the permit fee system in 16 
U.S.C. 497c by amending permits is set out in FSH 2709.11, chapter 50. 
Routine administrative revisions to make other agency direction 
consistent with implementation of this ski area permit fee system are 
also being issued to the FSM 2700 zero code chapter and FSH 2709.11, 
chapter 40.

Electronic Access

    The full text of the FSM and FSH chapters for the amendments set 
out at the end of this document and for the related technical 
amendments is available electronically from the Forest Service 
directives home page on the World Wide Web at the Internet address 
www.fs.fed.us/im/directives/ and the amendments are also available upon 
request from Forest Service offices. These amendments are issued to FSM 
chapters 2700 zero code and 2720, Special Uses Administration, and FSH 
2709.11, Special Uses Handbook, chapters 30, 40, and 50.

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 action. This policy will not 
have an annual effect of $100 million or more on the economy nor 
adversely affect productivity, competition, jobs, the environment, 
public health or safety, nor State or local governments. This policy 
will not interfere with an action taken or planned by another agency 
nor raise new legal or policy issues. Finally, this action will not 
alter the budgetary impact of entitlements, grants, user fees, or loan 
programs or the rights and obligations of recipients of such programs. 
Accordingly, this final policy is not subject to OMB review under 
Executive Order 12866.
    Moreover, this final policy has been considered in light of the 
Regulatory Flexibility Act (5 U.S.C. 601 et seq.), and it has been 
determined that this action will not have a significant economic impact 
on a substantial number of small entities as defined by that act. This 
ski area permit fee system, which was created and supported by the ski 
industry, is designed to have small ski areas with less revenue pay a 
smaller percentage of their earnings in permit fees than larger ski 
areas with higher revenues.
    The statute establishing this ski area permit fee system (16 U.S.C. 
497c), which the Congressional Budget Office determined to be revenue 
neutral, also requires the Forest Service to report to Congress every 5 
years on whether the ski area permit fee system provides fair market 
value.

Environmental Impact

    The final directives deal with technical, administrative changes 
associated with implementing the ski area permit fee system required by 
law (section 701 of the Omnibus Parks and Public Lands Management Act 
of 1996). Section 31.1b of Forest Service Handbook 1909.15 (57 FR 431, 
September 18, 1992) excludes from documentation in an environmental 
assessment or environmental impact statement ``rules, regulations, or 
policies to establish Service-wide administrative procedures, program 
processes, or instruction.'' The agency's assessment is that this 
policy falls within this category of actions and that no extraordinary 
circumstances exist which would require preparation of an environmental 
assessment or an environmental impact statement.

No Takings Implications

    These directives have been analyzed in accordance with the 
principles and criteria contained in Executive Order 12630, and it has 
been determined that the directives do not pose the risk of a taking of 
Constitutionally protected private property. Executive Order 12630 does 
not apply to these directives because they consist primarily of 
technical and administrative changes to implement the ski area permit 
fee system required by law (section 701 of the Omnibus Parks and Public 
Lands Management Act of 1996) for authorization of occupancy and use of 
National Forest System lands by ski areas. Forest Service special use 
authorizations for ski areas do not grant any right, title, or interest 
in lands or resources held by the United States.

Controlling Paperwork Burdens on the Public

    The information reporting requirements that will be imposed by 
these directives are required by the authorizing statute (16 U.S.C. 
497c). Ski areas have previously reported revenue data on Form FS-2700-
19 (OMB No. 0596-0082). Ski areas will now report revenue data on a 
modified version of Form FS-2700-19, numbered Form FS-2700-19a (OMB No. 
0596-0082). All other resorts and concessions which remain on the 
graduated rate fee system (GRFS) will continue to use Form FS-2700-19. 
Because the new ski area permit fee system required by 16 U.S.C. 497c 
streamlines the fee calculation method, the agency estimates that the 
public reporting burden for ski areas will be substantially lower under 
this system than it is under GRFS. No additional recordkeeping, 
reporting requirements, or information collection requirements, as 
defined in 5 CFR part 1320, are required by these directives and, 
therefore, these directives impose no additional paperwork burden on 
the public. Accordingly, the review provisions of the Paperwork 
Reduction

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Act of 1995 (44 U.S.C. 3501 et seq.) and implementing regulations at 5 
CFR 1320 do not apply.

Unfunded Mandates Reform

    Pursuant to Title II of the Unfunded Mandates Reform Act of 1995 (2 
U.S.C. 1531-1538), which the President signed into law on March 22, 
1995, the Department has assessed the effects of these directives on 
State, local, and tribal governments and the private sector. These 
directives do not compel the expenditure of $100 million or more by any 
State, local, or tribal governments or anyone in the private sector. 
Therefore, a statement under section 202 of the act is not required.

Civil Justice Reform

    This final policy has been reviewed under Executive Order 12988, 
Civil Justice Reform. When this final policy is adopted, (1) all State 
and local laws and regulations that are in conflict with this final 
policy or which would impede its full implementation would be 
preempted; (2) no retroactive effect would be given to this final 
policy; and (3) it would not require administrative proceedings before 
parties may file suit in court challenging its provisions.

    Dated: February 11, 1999.
Robert Lewis, Jr.,
Acting Associate Chief.

Ski Area Permit Fee System

Forest Service Manual and Handbook Directives

    (Note: The Forest Service organizes its directive system by 
alphanumeric codes and subject headings. Only those sections of the 
Forest Service Manual (FSM) and Handbook (FSH) 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 ski areas.)
Forest Service Manual
Chapter 2720--Special Uses Administration.
Section 2721.6--Winter Recreation.

    2721.61--Winter Recreation Resort. This designation includes 
resorts associated with various forms of winter outdoor recreation, 
though they often may be used for summer recreation purposes also. Make 
provision in the permit, as needed, to allow all-season uses. See FSH 
2709.11 for general instructions on the prospectus, application for 
permit, permit preparation, permit issuance, and permit administration.
    Review by the Regional Forester is required prior to issuance of a 
permit where the capital investment to be authorized exceeds or is 
expected to exceed $1 million for winter sports resorts.
    2721.61b--Permit Fees. Calculate fees for winter recreation permits 
under the ski area permit fee system established by 16 U.S.C. 497c (FSH 
2709.11, sec. 38) or under the graduated rate fee system (GRFS) (FSM 
2715.11) as follows:
    1. Permit Fee System for Ski Areas Authorized Under National Forest 
Ski Area Permit Act of 1986. For ski areas authorized under the 
National Forest Ski Area Permit Act of 1986 (16 U.S.C. 497b), calculate 
permit fees under the permit fee system established by 16 U.S.C. 497c 
and set out in FSH 2709.11, section 38.
    2. Permit Fee System for Ski Areas Authorized Under Organic Act of 
1897 and Term Permit Act of 1915. For ski areas authorized under the 
Organic Act of 1897 (16 U.S.C. 551) or the Term Permit Act of 1915 (16 
U.S.C. 497), provide holders the opportunity to elect the fee system in 
16 U.S.C. 497c (FSH 2709.11, sec. 38). Do not require conversion of 
such authorizations to a permit issued under the National Forest Ski 
Area Permit Act of 1986.
    If the holder does not elect to have permit fees calculated under 
the ski area permit fee system in 16 U.S.C. 497c, continue to calculate 
fees according to the method specified in the holder's permit (FSM 
2715.11).
    For nordic areas where primarily outfitting and guiding activities 
are conducted, continue to apply the permit fee system specified in the 
existing permit. Refer to FSM 2721.61e, paragraph 4, for direction on 
the characteristics of a nordic operation eligible for authorization 
under the National Forest Ski Area Permit Act of 1986 and for 
applicability of the permit fee system to such areas, as set out in FSH 
2709.11, section 38.
    3. Permit Fee System for Operations That Include Incidental Ski 
Activities or Facilities. For resorts that are primarily summer 
seasonal in nature and may include minor ski operations (such as a 
simple lift or minor nordic operations), continue to apply the permit 
fee system specified in the existing permit.
    For activities that are authorized under the National Forest Ski 
Area Permit Act of 1986 but include only incidental ski operations, 
apply the permit fee system in 16 U.S.C. 497c (FSH 2709.11, sec. 38). 
Encourage authorization of those activities under a more appropriate 
authority listed in FSM 2701, with the appropriate fee system.
    4. Permit Fee System for Ski Lifts and Tows. Use the following 
permit fee systems for ski lifts and tows:
    a. If the use is authorized under the Term Permit Act of 1915 or 
the Organic Act of 1897, calculate permit fees for ski lifts and tows 
using a negotiated fair market value flat rate (FSH 2709.11, sec. 52) 
or GRFS (FSM 2715.11).
    b. If the use is authorized under the National Forest Ski Area 
Permit Act of 1986, apply the permit fee system established by 16 
U.S.C. 497c (FSH 2709.11, sec. 38). Encourage authorization of ski 
lifts and tows under a more appropriate authority listed in FSM 2701, 
with the appropriate fee system. Refer to FSM 2721.62 for management 
direction regarding ski lifts and tows.
Forest Service Handbook 2709.11--Special Uses Management Handbook
Chapter 30--Fee Determination.

    38--Ski Area Permit Fees. This section provides direction to be 
followed primarily in determining fees as required by the Omnibus Parks 
and Public Lands Management Act of 1996 (16 U.S.C. 497c) for ski areas 
on National Forest System lands authorized under the National Forest 
Ski Area Permit Act of 1986 and for ski areas authorized under the 
Organic Act and the Term Permit Act that elect the fee system 
established by 16 U.S.C. 497c. See FSM 2711.15 for direction on 
determining fees under the graduated rate fee system (GRFS) for ski 
areas authorized under the Organic Act and the Term Permit Act that do 
not elect the fee system established by 16 U.S.C. 497c. (For related 
direction on special uses administration for ski areas, see FSM 2721.6 
and FSH 2709.11, ch. 40 and 50.)
    38.01--Authority. (FSM 2701.1).
    38.02--Objectives. The objectives of the permit fee system for ski 
areas operating on National Forest System lands are:
    1. To ensure that the permit fee remains equitable to both the 
United States and ski area permit holders.
    2. To ensure that the permit fee system is economical and simple to 
administer for both the permit holders and the Forest Service.
    38.03--Policy.
    38.03a--Ski Area Permits Subject to Fee System Established by 16 
U.S.C. 497c. Use the fee system established by 16 U.S.C. 497c to 
calculate permit fees for ski areas authorized by the National Forest 
Ski Area Permit Act of 1986 (Ski Area Permit Act) and for those ski 
areas authorized by the Organic Act of 1897 and the Term Permit Act of 
1915 that have elected the permit fee system established by 16 U.S.C. 
497c. For ski areas authorized by the Ski Area Permit Act, follow the 
direction in section

[[Page 8685]]

38.43a and section 38.43b to convert permits to the permit fee system 
in 16 U.S.C. 497c. For ski areas authorized by other authorities, 
follow the direction in section 38.43c to convert permits to the permit 
fee system established by 16 U.S.C. 497c.
    38.03b--Ski Area Permits Subject to Graduated Rate Fee System or 
Alternate Fee System. Until a new permit is issued under the Ski Area 
Permit Act, continue to administer under their current fee system those 
ski areas whose permits were issued under authorities other than the 
Ski Area Permit Act and which have not elected the permit fee system 
established by 16 U.S.C. 497c (FSM 2715.1).
    38.04--Responsibility.
    38.04a--Director of Recreation, Heritage, and Wilderness Resources, 
Washington Office. It is the responsibility of the Director of 
Recreation, Heritage, and Wilderness Resources, Washington Office to 
adjust annually the gross revenue figures for each revenue bracket by 
the Consumer Price Index for the preceding calendar year (sec. 38.12) 
and to analyze every five years, beginning in 1999, whether permit fees 
paid under 16 U.S.C. 497c are returning fair market value for the use 
of National Forest System lands under ski area permits.
    38.04b--Director of Financial Management, Washington Office. It is 
the responsibility of the Director of Financial Management to compile 
national permit fee information annually and to provide overall 
management and oversight on audits of the fee system (FSH 1409.15, 
Auditing Concessions Handbook) to be used in administration of the 
permit fee system established by 16 U.S.C. 497c.
    38.04c--Directors of Financial Management, Regional Offices. It is 
the responsibility of the Regional Directors of Financial Management or 
equivalent officials to submit regionally compiled permit fee 
information to the Washington Office on an annual basis.
    38.04d--Authorized Officer. It is the responsibility of the 
authorized officer (36 CFR 251.51) to:
    1. Notify the permit holder of the ski area permit fee system and 
related requirements established by 16 U.S.C. 497c and, as applicable, 
of the holder's option to elect the permit fee system established by 16 
U.S.C. 497c.
    2. Modify special use permits issued under the Ski Area Permit Act 
to incorporate provisions of the ski area permit fee system established 
by 16 U.S.C. 497c, and provide permit fee information on Form FS-2700-
19a, USDA Forest Service Fee Calculation for Ski Area Permits, to the 
permit holder.
    3. Notify holders of annual adjustments to the gross revenue 
figures for each revenue bracket by the Consumer Price Index for the 
preceding calendar year (sec. 38.12).
    4. Require the holder, through provisions in the permit, to 
calculate and make estimated fee payments, and ensure that the holder 
calculates and pays permit fees in accordance with the terms of the 
permit.
    5. Ensure that the holder submits financial documents, including 
annually completed permit fee information on Form FS-2700-19a, that 
support fee calculations in accordance with the terms of the permit.
    6. Submit permit fee information to the regional director 
responsible for financial management on an annual basis.
    38.05--Definitions. The following terms and acronyms are used in 
the fee calculations set out in section 38.12.
    Adjusted Gross Revenue--AGR. Revenue used in the permit fee 
calculation, which includes revenue from sales of year-round alpine and 
nordic ski area passes and tickets and revenue from alpine and nordic 
ski school operations associated with the use of National Forest System 
lands; gross year-round revenue from ancillary facilities located on 
National Forest System lands; the value of bartered goods; and the 
value of complimentary lift tickets.
    Bartered Goods and Complimentary Lift Tickets. Goods, services, or 
privileges that are not available to the general public (except for 
employee gratuities, employee lift tickets, and discounts, and except 
for ski area tickets and passes provided for a public safety or public 
service purpose) and that are donated or provided without charge in 
exchange for something of value to organizations or individuals (for 
example, ski area product discounts, service discounts, or lift tickets 
that are provided free of charge in exchange for advertising).
    Discriminatory Pricing. Rates based solely on race, color, 
religion, sex, national origin, age, disability, or place of residence.
    Gross Revenue from Ancillary Facilities--GRAF. Gross revenue from 
year-round sales derived from temporary and permanent ancillary 
facilities located on National Forest System lands, including all 
holder and subholder lodging, food service, rental shops, and other 
ancillary operations.
    Lift Tickets and Passes--LT. Revenue from sales of alpine and 
nordic lift tickets and passes purchased for the purpose of using a ski 
area during any time of the year.
    Market Price. The price generally available to an informed public, 
excluding special promotions.
    Ski Area Permit Fee--SAPF. Ski area permit fee for use of National 
Forest System lands.
    Ski School Operations--SS. Revenue from lessons provided to teach 
alpine or nordic skiing or other winter sports activities, such as 
racing, snowboarding, or snowshoeing.
    Slope Transport Feet Percentage--STFP. The method used to prorate 
revenue from the sale of alpine ski area passes and lift tickets and 
revenue from alpine ski school operations between National Forest 
System lands and private land in the ski area.
    38.1--Permits Subject to Ski Area Permit Fee System. Under the ski 
area permit fee system established by 16 U.S.C. 497c, calculate the 
permit fee based on adjusted gross revenue associated with the ski area 
under permit.
    38.11--Fee Proration for Mixed Land Ownership. Under no 
circumstances shall holder or subholder revenue (except those revenues 
from sales of lift tickets and passes and from ski school operations) 
obtained from operations located on private land be included in the 
permit fee calculation.
    1. Prorate revenue derived from the ski area according to the 
percentage of use between National Forest System lands and private land 
in the ski area (for example, use the STFP for alpine revenue or the 
nordic trail length percentage for nordic revenue; sec. 38.12, para. 
5).
    2. Prorate revenue from ancillary facilities before it is included 
in the permit fee calculation, since GRAF is gross revenue from 
ancillary facilities located on National Forest System lands.
    3. Include in the fee calculation and prorate accordingly all 
revenue from the sale of alpine and nordic ski area tickets and passes 
and all revenue from alpine and nordic ski school operations, even such 
revenue that is generated on private land (such as from tickets sold on 
private land).
    38.12--Fee Calculation. (See sec. 38.05 for definitions of acronyms 
and terms used in this section.) Use the following formula to calculate 
the ski area permit fee in accordance with 16 U.S.C. 497c:

SAPF = (.015  x  AGR in bracket 1) + (.025  x  AGR in bracket 2) + 
(.0275  x  AGR in bracket 3) + (.04  x  AGR in bracket 4)
Where:
AGR = [(LT + SS)  x  (proration %)] + GRAF


[[Page 8686]]


    1. SAPF is the ski area permit fee established by 16 U.S.C. 497c 
for use of National Forest System lands.
    a. Calculate SAPF by summing the results of multiplying the 
indicated percentage rates by the amount of the holder's adjusted gross 
revenue (AGR), which falls into each of the four brackets.
    b. Follow direction in the following paragraph 2 to determine AGR.
    c. Calculate the permit fee based on the holder's fiscal year, 
unless otherwise mutually agreed by the holder and the authorized 
officer.
    d. Use the revenue brackets as indexed for the previous calendar 
year. The Director of Recreation, Heritage, and Wilderness Resources, 
Washington Office, annually adjusts the four revenue brackets by the 
Consumer Price Index (CPI). (The Director of Lands, Washington Office, 
issues the updated CPI annually in sec. 36.21). Regardless of when the 
holder's fiscal year begins or ends, do not split the holder's AGR for 
any fiscal year into more than one set of indexed brackets. For 
example, apply the brackets as adjusted by the calendar year 1996 CPI 
to the holder's fiscal year 1997 permit fee calculation. When applying 
the adjusted brackets to calculate fees, round the fees to the nearest 
thousand dollars (for example, round up to $1,000 from $500.00 and 
round down to $0 from $499.99). Only the levels of AGR defined in each 
bracket are updated annually. The percentage rates do not change.
    e. To calculate permit fees for fiscal years 1996 through 1999, and 
for 2000 and beyond, use the revenue brackets and percentages displayed 
in exhibit 01 as shown in the preceding formulas in this section.

38.12--Exhibit 01.--Adjusted Gross Revenue (AGR) Brackets and Associated Percentage Rates for Use in Determining
                                           Ski Area Permit Fee (SAPF)
                       [Revenue Brackets (updated annually by CPI*) and Percentage Rates]
----------------------------------------------------------------------------------------------------------------
            Holder FY              Bracket 1 (1.5%)    Bracket 2 (2.5%)    Bracket 3 (2.75%)    Bracket 4  (4%)
----------------------------------------------------------------------------------------------------------------
FY 1996 CPI: N/A................  All revenue below   $3,000,000 to       $15,000,000 to      All revenue over
                                   $3,000,000          <$15,000,000        $50,000,000         $50,000,000.
FY 1997 CPI: 1.030..............  All revenue below   $3,090,000 to       $15,450,000 to      All revenue over
                                   $3,090,000          <$15,450,000        $51,500,000         $51,500,000.
FY 1998 CPI: 1.022..............  All revenue below   $3,158,000 to       $15,790,000 to      All revenue over
                                   $3,158,000          <$15,790,000        $52,633,000         $52,633,000.
FY 1999 CPI: 1.017..............  All revenue below   $3,212,000 to       $16,058,000 to      All revenue over
                                   $3,212,000          <$16,058,000        $53,528,000         $53,528,000.
FY 2000 and beyond..............                     BRACKETS WILL BE UPDATED ANNUALLY BY CPI*
----------------------------------------------------------------------------------------------------------------
*The Director of Recreation, Heritage, and Wilderness Resources, Washington Office, updates the revenue brackets
  annually, based on the Consumer Price Index (CPI) which is revised and issued annually in section 36.21.

    2. AGR is the adjusted gross revenue used in the permit fee 
calculation.
    a. Include as revenue: income from sales of alpine and nordic 
tickets and ski area passes; alpine and nordic ski school operations; 
gross revenue from ancillary facilities; the value of bartered goods 
and complimentary lift tickets (such as lift tickets provided free of 
charge to the holder's friends or relatives); and special event 
revenue. Discriminatory pricing is not allowed, but if it occurs, 
include the amount that would have been received had the discriminatory 
pricing transaction been made at the market price.
    b. Exclude from revenue: income from sales of operating equipment; 
refunds; rent paid to the holder by subholders; sponsor contributions 
to special events; any amount attributable to employee gratuities or 
employee lift tickets; discounts; ski area tickets or passes provided 
for a public safety or public service purpose (such as for National Ski 
Patrol or for volunteers to assist on the slope in the Special 
Olympics); and other goods or services (except for bartered goods and 
complimentary lift tickets) for which the holder does not receive 
money.
    c. Calculate AGR by summing the revenue from lift tickets and ski 
school operations prorated for use of National Forest System lands and 
from ancillary facility operations conducted on National Forest System 
lands.
    d. Include the following in AGR:
    (1) Revenue from sales of year-round alpine and nordic ski area 
passes and tickets and revenue from alpine and nordic ski school 
operations prorated according to the percentage of use between National 
Forest System lands and private land in the ski area;
    (2) Gross year-round revenue from ancillary facilities located on 
National Forest System lands;
    (3) The value of bartered goods and complimentary lift tickets. 
Include the market price value of bartered goods and complimentary lift 
tickets (except for employee gratuities, employee lift tickets, and 
discounts, and except for ski area tickets and passes provided for a 
public safety or public service purpose) in the AGR formula as revenue 
under LT, SS, or GRAF, depending on the type of goods, services, or 
privileges donated or bartered; and
    (4) Special event revenue from events such as food festivals, foot 
races, and concerts. Include special event revenue in the AGR formula 
as revenue under LT, SS, or GRAF, as applicable. Prorate revenue 
according to the percentage of use between National Forest System lands 
and private land as described in section 38.11 and as indicated in the 
following paragraphs 5 and 6.
    3. LT is the revenue from sales of alpine and nordic lift tickets 
and passes purchased for the purpose of using a ski area during any 
time of the year.
    4. SS is the revenue from lessons provided to teach alpine or 
nordic skiing or other winter sports activities, such as racing, 
snowboarding, or snowshoeing.
    5. Proration % is the method used to prorate revenue from the sale 
of ski area passes and lift tickets and revenue from ski school 
operations between National Forest System lands and private land in the 
ski area. Separately prorate alpine and nordic revenue with an 
appropriate proration factor. Add prorated revenues together; then sum 
them with GRAF to arrive at AGR. Use one or both of the following 
methods, as appropriate:
    a. STFP is the method used to prorate alpine revenue. Follow the 
direction for STFP contained in FSM 2715.11c. Include in the 
calculation only uphill devices (lifts, tows, and tramways) that are 
fundamental to the winter sports operation (usually those located on 
both Federal and private land). Do not include people movers whose 
primary purpose is to shuttle people between parking areas or between 
parking areas and lodges and offices.

[[Page 8687]]

    b. Nordic trail length is the method used to prorate nordic 
revenue. Use the percentage of trail length on National Forest System 
lands to total trail length. To calculate the percentage, divide the 
length of nordic trails on National Forest System lands by the total 
length of ski area nordic trails.
    6. GRAF is the revenue from ancillary facilities, including all of 
the holder's or subholder's lodging, food service, rental shops, 
parking, and other ancillary operations located on National Forest 
System lands. For facilities that are partially located on National 
Forest System lands, calculate the ratio of the facility square footage 
located on National Forest System lands to the total facility square 
footage. Prorate special event revenue allocatable to GRAF pursuant to 
paragraphs 2d (2) through 2d (4) of this section by the ratio of the 
use on National Forest System lands to the total use.
    38.13--Permit Fee If There Is No Adjusted Gross Revenue. In cases 
when a ski area permit holder has no adjusted gross revenue (AGR) for a 
given fiscal year, charge the holder a permit fee of $2 per acre for 
National Forest System lands under permit or a percentage of the 
appraised value of National Forest System lands under permit (sec. 
31.1), at the discretion of the authorized officer.
    When there is minimal use of National Forest System lands under 
permit, especially when prorated revenues from alpine and nordic uses 
are zero, authorized officers should consider whether to issue such ski 
area permits under an authority other than the Ski Area Permit Act.
    38.2--Payments.
    1. In accordance with the terms of the permit, holders are required 
to:
    a. Calculate and submit advance, interim, and final payments;
    b. Submit financial documents that support fee calculations; and
    c. Submit permit fee information on Form FS-2700-19a annually to 
the authorized officer.
    2. When the permit fee is expected to exceed $10,000 per year, the 
permit shall require monthly payments. If the permit fee is expected to 
be $10,000 or less, quarterly payments are required during months of 
operation.
    3. Holders submit payments without billing by the Forest Service. 
Holders that fail to make payments in accordance with the terms of the 
permit are in violation of the permit and the authorized officer shall 
so notify them. Assess late payment charges, including interest, 
penalties, and administrative costs, in accordance with the Federal 
Claims Collection Act of 1966, as amended by the Debt Collection Act of 
1982 (31 U.S.C. 3701-3719) when the required payment is not made on 
time (FSH 6509.11h, Service-Wide Claim Management Handbook, ch. 20).
    38.21--Advance Payments. Holders are required to make advance 
payments due by the beginning of the holder's fiscal year or by another 
payment cycle in accordance with the permit. Credit the advance payment 
toward the total ski area permit fee due at the end of the payment 
cycle, in accordance with the permit.
    1. Base the advance payment on 20 percent of the holder's average 
fee for 3 previous operating years when applicable.
    2. Base the advance payment for new holders of an existing ski area 
permit on 20 percent of the prior holder's average fee.
    3. For new areas:
    a. Establish the advance payment for new areas as 20 percent of the 
permit fee, based on projected AGR, or
    b. For ski areas not expected to generate AGR for a given fiscal 
year, require advance payment of the permit fee as calculated according 
to the procedures in section 38.13 ($2 per acre or a percentage of the 
appraised value of the National Forest System land under permit). If 
the ski area reports AGR for that fiscal year, credit the permit fee 
paid under provisions of section 38.13 toward the permit fee calculated 
according to the ski area permit fee formula in section 38.12.
    38.22--Interim Payments. To keep permit fees current with use, 
require interim payments. Credit interim payments toward the total ski 
area permit fee due at the end of the payment cycle, in accordance with 
the permit. Base interim payments on a tentative percentage rate and 
monthly or quarterly sales. Interim payments are due 30 days after the 
end of each month, if payments are made monthly; or 30 days after the 
end of each holder's fiscal year quarter, if payments are made 
quarterly.
    38.23--Final Payments. Reconcile payments made in the current 
payment cycle against the total ski area permit fee due at the end of 
the payment cycle, in accordance with the permit. The final payment is 
due 90 days after the close of the holder's fiscal year, or under 
another payment cycle in accordance with the permit. The holder is 
required to submit final payments with supporting financial documents, 
including permit fee information on Form FS-2700-19a, as provided in 
the permit.
    38.3--Permits Subject to Fee Systems Other Than System Established 
by 16 U.S.C. 497c. For ski areas authorized by the Organic Act of 1897 
and Term Permit Act of 1915 that do not elect the ski area permit fee 
system established by 16 U.S.C. 497c, continue to assess fees in the 
manner prescribed in the existing permit. When a new permit is issued 
under the Ski Area Permit Act or if the holder elects the permit fee 
established by 16 U.S.C. 497c, calculate the permit fee as set forth in 
section 38.12 or 38.13.
    38.4--Transition From Prior Permit Fee Systems. The ski area permit 
fee system established by 16 U.S.C. 497c is effective as of June 1, 
1996, and covers receipts retroactively to June 1, 1995. The authorized 
officer shall determine revenues attributable to the graduated rate fee 
system (GRFS) for the holder's fiscal year 1996 that began prior to 
June 1, 1995. Any permit fees prepaid under GRFS for any holder's 
fiscal year in which the ski area permit fee system established by 16 
U.S.C. 497c is in effect shall be reconciled by the authorized officer 
against the permit fee calculated under the latter system. For the 
purpose of implementing 16 U.S.C. 497c, do not require a change in the 
holder's fiscal year or payment schedule.
    38.41--Permit Fee Floor. The purpose of the permit fee floor is to 
ensure increasing permit fees to the United States during the 
transition from the graduated rate fee system to the ski area permit 
fee system established by 16 U.S.C. 497c.
    1. The permit fees due for the holder's fiscal years 1996, 1997, 
and 1998 are, respectively:
    a. Either the permit fee paid in the base year (fiscal year 1995) 
or the permit fee calculated under sections 38.12 or 38.13, and 38.42, 
whichever is higher for the holder's fiscal year 1996;
    b. Either the permit fee paid for the base year (fiscal year 1995) 
or the permit fee calculated under sections 38.12 or 38.13, and 38.42, 
whichever is higher for the holder's fiscal year 1997; or
    c. Either the permit fee paid for the base year (fiscal year 1995) 
or the permit fee calculated under sections 38.12 or 38.13, and 38.42, 
whichever is higher for the holder's fiscal year 1998;
    2. Except that if a holder's AGR for fiscal years 1996, 1997, or 
1998 falls more than 10 percent below the AGR for the base year (fiscal 
year 1995), the permit fee paid shall be the permit fee calculated 
under section 38.12 or 38.13. Compare the holder's AGR for the base 
year, as computed under section 38.12 or 38.13, against the holder's 
AGR for the transition years.
    38.42--Permit Fee Phase-In. The fee system established by 16 U.S.C. 
497c provides for a phase-in of fees during

[[Page 8688]]

the first five years the system is in effect when the permit fee 
calculated according to direction in section 38.12 or 38.13 for the 
holder's fiscal year 1996 results in an increase in the permit fee 
greater than 0.5 of one percent of the holder's AGR. In such cases, the 
increase in fees above the base year is phased in over a 5-year period. 
By the holder's fiscal year 2001, calculate all permit fees under 
section 38.12 or 38.13. For fiscal years 1996 through 2000, phase in 
that portion of the permit fee that exceeds the base fee (the fee paid 
in fiscal year 1995), beginning with the holder's fiscal year 1996. If 
the phase-in applies, calculate the permit fee according to the fee 
schedule in exhibit 01.

   38.42--Exhibit 01. 5-Year Phase-In of Ski Area Permit Fee Under 16
                               U.S.C. 497c
------------------------------------------------------------------------
 
-------------------------------------------------------------------------
1. 1996 Permit Fee = FY 1995 fee + .2  x  (FY 1996 fee-FY 1995 fee)
2. 1997 Permit Fee = FY 1995 fee + .4  x  (FY 1997 fee-FY 1995 fee)
3. 1998 Permit Fee = FY 1995 fee + .6  x  (FY 1998 fee-FY 1995 fee)
4. 1999 Permit Fee = FY 1995 fee + .8  x  (FY 1999 fee-FY 1995 fee)
5. 2000 Permit Fee = FY 1995 fee + 1.0  x  (FY 2000 fee-FY 1995 fee)
------------------------------------------------------------------------

    1. The FY 1995 fee is the permit fee paid in the holder's fiscal 
year 1995 (usually under GRFS).
    2. The FY 1996 fee is the permit fee calculated under section 38.12 
or 38.13 that would be due if phase-in were not applicable, and so on 
for the FY 1997-2000 fees.
    3. During fiscal years 1997 and 1998, if there is no increase in 
the permit fee calculated under the fee formula in section 38.12 or 
38.13 over the base fee (fiscal year 1995), establish the permit fee 
paid as the permit fee paid for fiscal year 1995. However, if a 
holder's AGR for fiscal years 1997 or 1998 falls more than 10 percent 
below the AGR for the base year (fiscal year 1995), the permit fee paid 
shall be the permit fee calculated under section 38.12 or 38.13. 
Compare the holder's AGR for the base year, as computed under section 
38.12 or 38.13, against the holder's AGR for the transition years.
    4. During fiscal years 1999 and 2000, if there is no increase in 
the permit fee calculated under the fee formula in section 38.12 or 
38.13 over the base fee (fiscal year 1995), establish the permit fee 
paid as the fee calculated under section 38.12 or 38.13.
    38.43--Applicability of Ski Area Permit Fee System Provisions 
Established by 16 U.S.C. 497c During Transition From Previous Permit 
Fee Systems to the Permit Fee System Established by 16 U.S.C. 497c. 
Follow direction set out in sections 38.43a through 38.43c when 
applying transition provisions (sec. 38.4 through 38.42) of the ski 
area permit fee system established by 16 U.S.C. 497c.
    38.43a--Permits Issued Under National Forest Ski Area Permit Act of 
1986 On or Before June 1, 1996. Ski areas authorized under the Ski Area 
Permit Act of 1986 on or before June 1, 1996 are subject to the fee 
system established by 16 U.S.C. 497c. Amend the holder's permit by 
replacing the fee provisions in clause VI of the permit with the clause 
that implements the fee system in section 38.12. See chapter 50 for the 
appropriate clause. Apply transition provisions (sec. 38.4 through 
38.42) of 16 U.S.C. 497c.
    38.43b--Permits Issued Under National Forest Ski Area Permit Act of 
1986 After June 1, 1996. Ski areas authorized under the Ski Area Permit 
Act of 1986 after June 1, 1996 are subject to the fee system 
established by 16 U.S.C. 497c. Amend the holder's permit by replacing 
the fee provisions in clause VI of the permit with the clause that 
implements the fee system in section 38.12. See chapter 50 for the 
appropriate clause.
    1. When a permit is issued to the existing holder upon expiration 
of the current permit, or to the existing holder of a permit converted 
from a permit issued under the Organic Act of 1897 or the Term Permit 
Act of 1915, the following direction applies:
    a. Holders of permits may elect the transition provisions on or 
before May 27, 1999 (90 days following the effective date of the ski 
area permit fee system directive issued in Amendment 2709.11-99-2). The 
permit fee system established by 16 U.S.C. 497c would apply 
retroactively to these permits. Apply transition provisions (sec. 38.4 
through 38.42).
    b. For holders that do not elect the transition provisions on or 
before May 27, 1999 (90 days following the effective date of the ski 
area permit fee system directive issued in Amendment 2709.11-99-2), the 
permit fee system established by 16 U.S.C. 497c would apply from the 
date the permit is issued. The phase-in or other transition provisions 
are not available to these holders. The permit fee system (sec. 38.12) 
is effective on the date of permit issuance. Do not apply transition 
provisions (sec. 38.4 through 38.42.)
    c. Permits that are issued after May 27, 1999 (90 days following 
the effective date of the ski area permit fee system directive issued 
in Amendment 2709.11-99-2) are not subject to the transition provisions 
for the permit fee system. The phase-in or other transition provisions 
are not available to these holders. The permit fee system (sec. 38.12) 
is effective on the date of permit issuance. Do not apply transition 
provisions (sec. 38.4 through 38.42.)
    2. When a permit is issued to a new owner of improvements at an 
existing ski area or to an owner of improvements at a new ski area, the 
phase-in or other transition provisions are not available to these 
holders. The permit fee system (sec. 38.12) is effective on the date of 
permit issuance. Do not apply transition provisions (sec. 38.4 through 
38.42.)
    38.43c--Permits Issued Under Organic Act of 1987 and Term Permit 
Act of 1915. Ski areas authorized under the Organic Act of 1897 or the 
Term Permit Act of 1915 may elect the permit fee system established by 
16 U.S.C. 497c. Amend such permits by replacing the fee provisions in 
clause VI of the permit with the clause that implements the fee system 
in section 38.12. See chapter 50 for the appropriate clause.
    1. Holders of permits that elect the permit fee system established 
by 16 U.S.C. 497c on or before May 27, 1999 (90 days following the 
effective date of the ski area permit fee system directive issued in 
Amendment 2709.11-99-2), are subject to the transition provisions for 
the permit fee system (sec. 38.4 through 38.42).
    2. Holders that elect the permit fee system established by 16 
U.S.C. 497c after May 27, 1999 (90 days following the effective date of 
the ski area permit fee system directive issued in Amendment 2709.11-
99-2), are subject to the permit fee system established by 16 U.S.C. 
497c in the holder's fiscal year following amendment of the permit to 
reflect coverage under this permit fee system (sec. 38.12). The phase-
in or other transition provisions are not available to these holders.
Forest Service Handbook 2709.11--Special Uses Management Handbook
Chapter 50--Terms and Conditions.
Section 52.1--A Clauses--Fees and Payments.

    A-9. Ski Area Permit Fees. The Forest Service shall adjust and 
calculate permit fees authorized by this permit to reflect any 
revisions to permit fee provisions in 16 U.S.C. 497c or to comply with 
any new permit fee system based on fair market value that may be 
adopted by statute or otherwise after issuance of this permit.
    A. Fee Calculation. The annual fee due the United States for the 
activities authorized by this permit shall be calculated using the 
following formula:


[[Page 8689]]


SAPF = (.015  x  AGR in bracket 1) + (.025  x  AGR in bracket 2) + 
(.0275  x  AGR in bracket 3) + (.04  x  AGR in bracket 4)
Where:
AGR = [(LT + SS)  x  (proration %)] + GRAF
AGR is adjusted gross revenue;
LT is revenue from sales of alpine and nordic lift tickets and passes;
GRAF is gross year-round revenue from ancillary facilities;
Proration % is the factor to apportion revenue attributable to use of 
National Forest System lands;
SAPF is the ski area permit fee for use of National Forest System 
lands; and
SS is revenue from alpine and nordic ski school operations.

    1. SAPF shall be calculated by summing the results of multiplying 
the indicated percentage rates by the amount of the holder's adjusted 
gross revenue (AGR), which falls into each of the four brackets. Follow 
direction in paragraph 2 to determine AGR. The permit fee shall be 
calculated based on the holder's fiscal year, unless mutually agreed 
otherwise by the holder and the authorized officer.
    The four revenue brackets shall be adjusted annually by the 
consumer price index issued in FSH 2709.11, chapter 30. The revenue 
brackets shall be indexed for the previous calendar year. The holder's 
AGR for any fiscal year shall not be split into more than one set of 
indexed brackets. When adjusting brackets, round the fees to the 
nearest thousand dollars (for example, round up to $1,000 from $500.00 
and round down to $0 from $499.99). Only the levels of AGR defined in 
each bracket are updated annually. The percentage rates do not change.
    The revenue brackets and percentages displayed in Exhibit 01 shall 
be used as shown in the preceding formula to calculate the permit fee.

  Exhibit 01--Adjusted Gross Revenue (AGR) Brackets and Associated Percentage Rates for Use in Determining Ski
                                             Area Permit Fee (SAPF)
                       [Revenue Brackets (updated annually by CPI*) and Percentage Rates]
----------------------------------------------------------------------------------------------------------------
            Holder FY              Bracket 1  (1.5%)   Bracket 2  (2.5%)  Bracket 3  (2.75%)    Bracket 4  (4%)
----------------------------------------------------------------------------------------------------------------
FY 1996 CPI: N/A................  All revenue below   $3,000,000 to       $15,000,000 to      All revenue over
                                   $3,000,000.         $15,000,000.        $50,000,000.        $50,000,000.
FY 1997 CPI: 1.030..............  All revenue below   $3,090,000 to       $15,450,000 to      All revenue over
                                   $3,090,000.         $15,450,000.        $51,500,000.        $51,500,000.
FY 1998 CPI: 1.022..............  All revenue below   $3,158,000 to       $15,790,000 to      All revenue over
                                   $3,158,000.         $15,790,000.        $52,633,000.        $52,633,000.
FY 1999 CPI: 1.017..............  All revenue below   $3,212,000 to       $16,058,000 to      All revenue over
                                   $3,212,000.         $16,058,000.        $53,528,000.        $53,528,000.
FY 2000 and beyond..............                     BRACKETS WILL BE UPDATED ANNUALLY BY CPI*
----------------------------------------------------------------------------------------------------------------
* The authorized officer shall notify the holder of the updated revenue brackets based on the Consumer Price
  Index (CPI) which is revised and issued annually in FSH 2709.11, chapter 30.

    2. AGR shall be calculated by summing the revenue from lift tickets 
and ski school operations prorated for use of National Forest System 
lands and from ancillary facility operations conducted on National 
Forest System lands.
    Revenue inclusions shall be income from sales of alpine and nordic 
tickets and ski area passes; alpine and nordic ski school operations; 
gross revenue from ancillary facilities; the value of bartered goods 
and complimentary lift tickets (such as lift tickets provided free of 
charge to the holder's friends or relatives); and special event 
revenue. Discriminatory pricing, a rate based solely on race, color, 
religion, sex, national origin, age, disability, or place of residence, 
is not allowed, but if it occurs, include the amount that would have 
been received had the discriminatory pricing transaction been made at 
the market price, the price generally available to an informed public, 
excluding special promotions.
    Revenue exclusions shall be income from sales of operating 
equipment; refunds; rent paid to the holder by subholders; sponsor 
contributions to special events; any amount attributable to employee 
gratuities or employee lift tickets; discounts; ski area tickets or 
passes provided for a public safety or public service purpose (such as 
for National Ski Patrol or for volunteers to assist on the slope in the 
Special Olympics); and other goods or services (except for bartered 
goods and complimentary lift tickets) for which the holder does not 
receive money.
    Include the following in AGR:
    a. Revenue from sales of year-round alpine and nordic ski area 
passes and tickets and revenue from alpine and nordic ski school 
operations prorated according to the percentage of use between National 
Forest System lands and private land in the ski area;
    b. Gross year-round revenue from temporary and permanent ancillary 
facilities located on National Forest System lands;
    c. The value of bartered goods and complimentary lift tickets, 
which are goods, services, or privileges that are not available to the 
general public (except for employee gratuities, employee lift tickets, 
and discounts, and except for ski area tickets and passes provided for 
a public safety or public service purpose) and that are donated or 
provided without charge in exchange for something of value to 
organizations or individuals (for example, ski area product discounts, 
service discounts, or lift tickets that are provided free of charge in 
exchange for advertising).
    Bartered goods and complimentary lift tickets (except for employee 
gratuities, employee lift tickets, discounts, and except for ski area 
tickets and passes provided for a public safety or public service 
purpose) valued at market price shall be included in the AGR formula as 
revenue under LT, SS, or GRAF, depending on the type of goods, 
services, or privileges donated or bartered; and
    d. Special event revenue from events, such as food festivals, foot 
races, and concerts. Special event revenue shall be included in the AGR 
formula as revenue under LT, SS, or GRAF, as applicable. Prorate 
revenue according to the percentage of use between National Forest 
System lands and private land as described in the following paragraphs 
5 and 6.
    3. LT is the revenue from sales of alpine and nordic lift tickets 
and passes purchased for the purpose of using a ski area during any 
time of the year,

[[Page 8690]]

including revenue that is generated on private land (such as from 
tickets sold on private land).
    4. SS is the revenue from lessons provided to teach alpine or 
nordic skiing or other winter sports activities, such as racing, 
snowboarding, or snowshoeing, including revenue that is generated on 
private land (such as from tickets sold on private land).
    5. Proration % is the method used to prorate revenue from the sale 
of ski area passes and lift tickets and revenue from ski school 
operations between National Forest System lands and private land in the 
ski area. Separately prorate alpine and nordic revenue with an 
appropriate proration factor. Add prorated revenues together; then sum 
them with GRAF to arrive at AGR. Use one or both of the following 
methods, as appropriate:
    a. STFP shall be the method used to prorate alpine revenue. This 
STFP direction is identical to the direction issued at FSM 2715.11c in 
1992; pursuant to the Omnibus Parks and Public Lands Management Act of 
1996, the STFP method shall not be changed from the 1992 direction. 
Include in the calculation only uphill devices (lifts, tows, and 
tramways) that are fundamental to the winter sports operation (usually 
those located on both Federal and private land). Do not include people 
movers whose primary purpose is to shuttle people between parking areas 
or between parking areas and lodges and offices.
    b. Nordic trail length is the method used to prorate nordic 
revenue. Use the percentage of trail length on National Forest System 
lands to total trail length.
    6. GRAF is the revenue from ancillary facilities, including all of 
the holder's or subholder's lodging, food service, rental shops, 
parking, and other ancillary operations located on National Forest 
System lands. Do not include revenue that is generated on private land. 
For facilities that are partially located on National Forest System 
lands, calculate the ratio of the facility square footage located on 
National Forest System lands to the total facility square footage. 
Special event revenue allocatable to GRAF shall be prorated by the 
ratio of use on National Forest System lands to the total use.
    7. In cases when the holder has no AGR for a given fiscal year, the 
holder shall pay a permit fee of $2 per acre for National Forest System 
lands under permit or a percentage of the appraised value of National 
Forest System lands under permit, at the discretion of the authorized 
officer.
    B. Fee Payments. Reports and deposits shall be tendered in 
accordance with the following schedule. They shall be sent or delivered 
to the collection officer, USDA, Forest Service, at the address 
furnished by the authorized officer. Checks or money orders shall be 
made payable to: USDA, Forest Service.
    1. The holder shall calculate and submit an advance payment which 
is due by the beginning of the holder's payment cycle. The advance 
payment shall equal 20 percent of the holder's average permit fee for 3 
operating years, when available. When past permit fee information is 
not available, the advance payment shall equal 20 percent of the permit 
fee, based on the prior holder's average fee or projected AGR. For ski 
areas not expected to generate AGR for a given payment cycle, advance 
payment of the permit fee as calculated in item A, paragraph 7 ($2 per 
acre for National Forest System lands under permit or a percentage of 
the appraised value of National Forest System lands under permit, at 
the discretion of the authorized officer) shall be made. The advance 
payment shall be credited (item B, paragraph 3) toward the total ski 
area permit fee for the payment cycle.
    2. The holder shall report sales, calculate fees due based on a 
tentative percentage rate, and make interim payments each calendar 
[MONTH, QUARTER, or YEAR], except for periods in which no sales take 
place and the holder has notified the authorized officer that the 
operation has entered a seasonal shutdown for a specific period. 
Reports and payments shall be made by the end of the month following 
the end of each reportable period. Interim payments shall be credited 
(item B, paragraph 3) toward the total ski area permit fee for the 
payment cycle.
    3. Within 90 days after the close of the ski area's payment cycle, 
the holder shall provide a financial statement, including a completed 
permit fee information form, Form FS-2700-19a, representing the ski 
area's financial condition at the close of its business year and an 
annual operating statement reporting the results of operations, 
including a final payment which includes year-end adjustments for the 
holder and each subholder for the same period. Any balance that exists 
may be credited and applied against the next payment due or refunded, 
at the discretion of the permit holder.
    4. Within 30 days of receipt of a statement from the Forest 
Service, the holder shall make any additional payment required to 
ensure that the correct ski area permit fee is paid for the past year's 
operation.
    5. Payments shall be credited on the date received by the 
designated collection officer. If the due date for the fee or fee 
calculation financial statement falls on a non-workday, the charges 
shall not accrue until the close of business on the next workday.
    6. All permit fee calculations and records of sales are subject to 
review or periodic audit as determined by the authorized officer. 
Errors in calculation or payment shall be corrected as needed for 
conformance with those reviews or audits. In accordance with the 
Interest and Penalties clause contained in this authorization, interest 
and penalties shall be assessed on additional fees due as a result of 
reviews or audits.
    7. Correction of errors includes any action necessary to calculate 
the holder's sales or slope transport fee percentage or to make any 
other determination required to calculate permit fees accurately. For 
fee calculation purposes, an error may include:
    a. Misreporting or misrepresentation of amounts;
    b. Arithmetic mistakes;
    c. Typographic mistakes; or
    d. Variation from generally accepted accounting principles (GAAP), 
when such variations are inconsistent with the terms of this permit.
    Correction of errors shall be made retroactively to the date the 
error was made or to the previous audit period, whichever is more 
recent, and past fees shall be adjusted accordingly.

[FR Doc. 99-4294 Filed 2-19-99; 8:45 am]
BILLING CODE 3410-11-P