[Federal Register Volume 64, Number 114 (Tuesday, June 15, 1999)]
[Proposed Rules]
[Pages 32106-32143]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-14588]



[[Page 32105]]

_______________________________________________________________________

Part II





Department of the Interior





_______________________________________________________________________



Bureau of Land Management



_______________________________________________________________________



43 CFR Parts 2800 and 2880



Rights-of-Way, Principles and Procedures; Rights-of-Way Under the 
Mineral Leasing Act; Proposed Rule

  Federal Register / Vol. 64, No. 114 / Tuesday, June 15, 1999 / 
Proposed Rules  

[[Page 32106]]



DEPARTMENT OF THE INTERIOR

Bureau of Land Management

43 CFR Parts 2800 and 2880

[WO-350-2800-24 1A]
RIN 1004-AC74


Rights-of-Way, Principles and Procedures; Rights-of-Way Under the 
Mineral Leasing Act

AGENCY: Bureau of Land Management, Interior.

ACTION: Proposed rule.

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

SUMMARY: The Bureau of Land Management (BLM) of the United States 
Department of the Interior proposes to: amend its right-of-way 
regulations to revise rent and cost recovery procedures and policies; 
adjust cost recovery fees to reflect cost increases since the current 
regulations became effective in July 1987; eliminate automatic 
exemptions from cost recovery for federal agencies, except for those 
agencies and projects exempted by law; use a short-term right-of-way 
instead of a temporary use permit for rights-of-way issued under the 
Federal Land Policy and Management Act of 1976; clarify how BLM will 
apply rent schedules for communication site rights-of-way; broaden the 
conditions for which BLM will require advance payment of rent; rephrase 
the language of the regulations into plain language; and reorganize the 
regulations to reflect the sequence in which BLM takes action on 
applications.

DATES: Send your comments to reach BLM on or before October 13, 1999. 
BLM will not necessarily consider any comments received after the above 
date during its decision process on the proposed rule. Because of the 
length of the comment period, BLM does not intend to extend it.

ADDRESSES: You may mail comments to: Bureau of Land Management, 
Administrative Record, Room 401 LS, 1849 C St., N.W., Washington, D.C. 
20240. You may also hand-deliver comments to: BLM, 1620 L St., N.W., 
Room 401, Washington, D.C. Comments, including names and addresses of 
respondents, 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, except holidays. For information about filing comments 
electronically, see the SUPPLEMENTARY INFORMATION section under 
``Electronic access and filing.''

FOR FURTHER INFORMATION CONTACT: Ron Montagna, (202) 452-7782, 
[email protected]. Individuals who use a telecommunications device 
for the deaf (TDD) may call the Federal Information Relay Service 
(FIRS) at 1-800-877-8339 between 8 a.m. and 8 p.m., Eastern time, 
Monday through Friday, except holidays.

SUPPLEMENTARY INFORMATION:

I. Public Comment Procedures and Information
II. Background
III. Discussion of Proposed Rule
IV. Procedural Matters

I. Public Comment Procedures

Electronic Access and Filing Address

    You may view an electronic version of this proposed rule at BLM's 
Internet home page at www.blm.gov. You may also comment via the 
Internet to: WOC[email protected]. If you submit your comments 
electronically, please submit them as an ASCII file to minimize 
computer problems and include ``Attention: AC74'' and your name and 
return address in your Internet message. If you do not receive a 
confirmation from the system that we have received your Internet 
message, contact us directly at (202) 452-5030.

Written Comments

    Confine written comments on the proposed rule to issues pertinent 
to the proposed rule and explain the reasons for any recommended 
changes. Where possible, reference the specific section or paragraph of 
the proposal which you are addressing. BLM may not necessarily consider 
or include in the Administrative Record for the final rule comments 
which it receives after the comment period closes (see DATES), or 
comments delivered to an address other than those listed above (see 
ADDRESSES).
    Written comments, including the names, street addresses, and other 
contact information about respondents, will be available for public 
review at the above address during regular business hours (7:45 am to 
4:15 pm), Monday through Friday, except holidays. Comments made by 
Internet will be available for inspection at the end of the comment 
period. Individual respondents may request confidentiality. If you wish 
to request that BLM consider withholding your name, street address and 
other contact information (such as: Internet address, FAX or phone 
number) from public review or from disclosure under the Freedom of 
Information Act, you must state this prominently at the beginning of 
your comment. BLM will consider each request on a case-by-case basis. 
Such requests will be granted to the extent allowed by law. All 
submissions from organizations or businesses, and from individuals 
identifying themselves as representatives or officials of organizations 
or businesses, will be made available for public inspection in their 
entirety.
    BLM is interested in all comments that you may have on the issues. 
We are especially interested, however, in comments and rationale in the 
following areas:
     Whether or not BLM should continue to issue temporary use 
permits for rights-of-way issued under the Federal Land Policy and 
Management Act;
     Whether or not there should be a separate cost recovery 
decision for monitoring costs or whether each application category 
decision should continue to determine both the processing and the 
monitoring category fees. If you believe that there should be separate 
application and monitoring categories, please provide definitions for 
the monitoring categories and identify methods that BLM can use to 
relate a fee to a specific category;
     Whether BLM should charge for processing right-of-way 
grant renewals, and, if so, on what should the costs be based;
     Whether or not federal agencies should continue to be 
exempt from cost recovery and rent payments;
     When and under what conditions BLM should require the 
advance payment of rent;
     Whether BLM should establish a new ``Minimal Impact'' cost 
recovery category for non-Mineral Leasing Act actions that require less 
than 8 hours to process; and
     Whether BLM should impose fees for late payment of rent.

Interagency Coordination

    The United States Department of Agriculture, Forest Service, is 
currently preparing regulations to recover its costs for processing and 
administering special use authorizations on National Forest System 
lands. In doing so, the Forest Service intends to adopt, to the extent 
possible, the processes, procedures, and schedules identified in this 
proposed rule. The Forest Service will evaluate the comments received 
in response to this proposed rule and will consider those comments in 
developing proposed regulations applicable to special use applications 
and authorizations on National Forest System lands. The Forest Service 
intends to publish its proposed cost recovery regulations for review 
and comment as soon after the close of the comment period on these 
proposed rules as possible.

[[Page 32107]]

II. Background

General Authorities and Policies

    Section 501 of the Federal Land Policy and Management Act (FLPMA), 
43 U.S.C. 1761, authorizes the BLM to issue and renew rights-of-way 
under, over, and through lands under its jurisdiction. These rights-of-
way may contain facilities for impounding, storing and transporting 
water; for transporting and distributing liquids and gases other than 
oil and gas; for distributing and transporting solid materials, other 
than oil and gas and products refined from them; for generating, 
transmitting, and distributing electricity; for transmitting and 
receiving electronic signals, such as radio, television and telegraph; 
and for transportation corridors, such as railroads, roads, tramways, 
and livestock driveways.
    Section 28 of the Mineral Leasing Act, as amended (MLA), 30 U.S.C. 
185, authorizes the Secretary of the Interior to grant to qualified 
applicants rights-of-way through Federal lands for transporting oil, 
gas, synthetic liquid or gaseous fuels, or other refined products. The 
MLA also allows for temporary use permits to supplement each pipeline 
right-of-way for the purposes of constructing, operating, maintaining 
and terminating the pipeline and to protect the natural environment and 
public safety.
    BLM has designed its right-of-way program to coordinate the actions 
of individuals, governments, and businesses in using public lands for 
right-of-way purposes; promote the sharing of rights-of-way; protect 
the quality of natural resources; prevent unnecessary environmental 
damage to lands and resources; and protect the right-of-way holder's 
investments in improvements on the right-of-way.

Statistics About Rights-of-Way

    As of September 30, 1998, there were 87,511 active right-of-way 
grants under BLM administration. Most of the grants are located in the 
western states of Alaska, Arizona, California, Colorado, Idaho, 
Montana, Nevada, New Mexico, Oregon, Utah, Wyoming, North and South 
Dakota and Oklahoma. New Mexico had the largest number of grants, and 
Wyoming had the next largest. There were 63 grants located east of the 
Mississippi River. Of the right-of-way grants, approximately 28 percent 
are for roads and highways, 28 percent represent oil and gas related 
systems, 4 percent represent grants for communication sites, 13 percent 
represent grants for electrical generation and transmission lines, and 
27 percent are for other uses, such as telephone, telegraph, and other 
miscellaneous systems.

III. Discussion of the Proposed Rule

    Unless specifically stated in the discussion below, BLM does not 
intend to make policy changes by rewording and streamlining the 
regulatory text. If you believe that rewording the regulatory text has 
resulted in BLM's eliminating or changing important concepts or 
policies, please describe in your comments these modifications or 
omissions and the reasons that you believe the regulations should 
retain the concept from the existing regulations.

General Discussion

    The discussions below affect more than one section of the proposed 
regulations and contain proposed policy changes and the rationale for 
them.
Cost Recovery Provisions
(Proposed sections 2803.14, 2804.16, 2883.11, and 2884.13, and subparts 
2807 and 2887)
    It may be helpful to read the preamble to the July 25, 1986, 
proposed rules, published at 51 FR 26836, and to the July 8, 1987, 
final rules at 52 FR 25802, to get more background information on 
current cost recovery policies.
    BLM proposes the following specific changes to the cost recovery 
provisions:
     Reduce the number of fee categories used for recovering 
the cost of processing applications from five to four (for rights-of-
way issued under FLPMA) and from six to four (for rights-of-way issued 
under the MLA);
     Clarify the definition of the term ``category I, II, 
etc.,'' to include processing steps and work hours;
     Provide a ``master agreement'' category for multiple 
applications submitted by a single applicant in a specific geographical 
area;
     Adjust the fees for both processing an application and for 
monitoring any ensuing grant to reflect the reasonable (FLPMA) or 
actual (MLA) costs and the effects of inflation;
     Use proposed fees to determine the cost reimbursement fees 
for assignments and renewals; and
     Broaden the conditions under which BLM will require 
advance payment of rents.

We expect that these proposed changes will shorten application 
processing time, reduce costs, and result in a more equitable 
distribution of business costs between the benefitting entity and the 
general public.
    Background for changes. Section 504(g) of FLPMA authorizes BLM to 
recover the ``reasonable'' costs of processing and monitoring rights-
of-way issued under Title V, 43 U.S.C. 1761. Section 28(f) of the MLA, 
30 U.S.C. 185(l), requires applicants for pipeline rights-of-way issued 
under the MLA to reimburse the United States for the administrative and 
other costs involved in processing applications and for the United 
States' costs of monitoring activities under those grants. The 
administrative and other costs associated with MLA grants are 
collectively referred to as ``actual costs.''
    Section 304(b) of FLPMA allows the Secretary of the Interior to 
establish ``reasonable costs'' for processing applications and other 
documents relating to public lands. Several factors that the Secretary 
may consider in establishing reasonable costs include the costs of 
special studies; preparing and distributing environmental documents, 
such as environmental assessments and environmental impact statements; 
monitoring the construction, operation, maintenance, and termination of 
facilities; and other special activities.
    BLM first issued cost recovery regulations for linear and areal 
rights-of-way in 1979. The regulations for FLPMA rights-of-way were 
successfully challenged in federal court in Nevada Power Co. v. Watt, 
711 F.2d 913 (10th Cir. 1983), on the basis that the regulations did 
not sufficiently consider each of the ``reasonability criteria'' in 
section 304(b) of FLPMA, 43 U.S.C. 1734(b). BLM then developed 
definitions for these criteria, which were published in July 1987.
    Based on field studies conducted in 1982 and 1983, which measured 
the costs of processing right-of-way applications and monitoring 
grants, BLM developed a number of ``cost categories'' and the 
corresponding average costs of processing applications that fall into 
one or another of these categories. BLM broke the cost information into 
various elements, e.g., filing, status review, field examination, 
environmental considerations, and document preparation. For FLPMA 
rights-of-way, BLM related these costs to the statutory reasonability 
criteria and made decisions to: (1) retain the cost if it was 
reasonable, (2) eliminate the cost if it did not meet the reasonability 
requirements, or (3) adjust the cost downward, if it contained both 
public and private benefits under the reasonability requirements. From 
this analysis, BLM proposed four cost categories with fixed cost 
recovery fee amounts and a fifth category, as described in the next 
paragraph, requiring the full reasonable costs as determined by BLM.

[[Page 32108]]

    In cases where a fixed fee amount would not be appropriate, such as 
complex projects, BLM established a final category for the reasonable 
costs of processing individual cases and of monitoring activities under 
the grant. In these cases, each applicant had the options of: (1) 
completely analyzing the estimated actual costs relative to the 
reasonability criteria, (2) waiving the full analysis and completing a 
less demanding analysis that could limit the costs recovered to 1 
percent of construction costs, or (3) waiving these analyses and 
agreeing to pay the full reasonable costs involved, as jointly 
determined by BLM and the applicant.
    For MLA rights-of-way, BLM also used the 1982 through 1983 field 
studies to establish five fixed fee amount categories, each based on 
its relevant average actual cost. A final sixth category requiring 
periodic payment of actual costs was also included for these rights-of-
way.
    At the time of the study BLM did not have sufficient cost data on 
monitoring grants to determine the exact monitoring costs. To provide 
some recovery of costs, BLM estimated the necessary monitoring cost for 
each fixed fee category for both FLPMA and MLA rights-of-way.
    FLPMA applicants could request that BLM review their specific 
circumstances and consider a waiver or reduction in the amount of the 
processing or monitoring fees or both. Current regulations exclude from 
the cost recovery provisions certain applicants, such as federal 
agencies, ``non-utility type'' state and local governments, and 
applicants for ``cost-share'' roads and reciprocal right-of-way 
agreements.
    BLM conducted an extensive field study of processing and monitoring 
costs in 1986. The study generally verified the processing costs 
developed from the earlier study. The study also demonstrated that the 
costs related to monitoring could be further refined. Current 
regulations do not specify any method for increasing costs for 
inflation or similar factors except for proposing a change in 
regulations. As the cost of living has increased steadily for the last 
40 years (the last yearly drop in the Consumer Price Index occurred in 
1955), a mechanism for adjusting processing and monitoring fees is 
desirable. BLM has looked at various indices, e.g., the Consumer Price 
Index (CPI), the CPI-U (urban), and the Implicit Price Deflator-Gross 
Domestic Product (IPD-GDP), that could be used to update fee schedules 
periodically.
    In 1995 the Inspector General (IG) for the Department of the 
Interior audited BLM's cost recovery efforts on rights-of-way. The IG 
found BLM's financial system was not adequate to give a good estimate 
of the costs of the right-of-way program. The IG found that BLM's 
processing fees were too low. The IG estimated costs from two 
approaches: (1) examining randomly selected case files and estimating 
the time required to perform the work involved and (2) polling BLM 
personnel as to the amount of time spent on right-of-way casework. In 
both cases the IG compared these estimates to the actual amount of cost 
recovery money collected for the specific cases in (1) and (2). Based 
on 75 sample cases and an estimated 3,000 cases per year, the IG 
estimated that BLM was losing $640,000 per year in processing costs. 
(The 3,000-case figure includes cases which, under current regulations, 
are excluded from cost recovery.) The IG recommended that BLM revise 
the regulations to recover all applicable costs.
    BLM has adopted the IG's recommendations by proposing to: (1) 
increase the processing and monitoring costs for right-of-way 
applications, (2) provide for cost adjustments to accommodate increases 
in the economic indicator reflecting the general cost of labor, and (3) 
eliminate fixed dollar amounts from the regulations to allow for 
periodic cost adjustments.
    The following paragraphs describe the proposed changes to the cost 
recovery provisions of the existing right-of-way regulations. Changes 
would decrease the number of cost recovery categories for both FLPMA 
and MLA applications and for monitoring categories, revise the 
definitions of the categories, eliminate the automatic exemption from 
paying processing costs for Federal agencies, and increase category 
fees.
    Cost recovery categories. Experience suggests a need for one less 
fixed fee amount category for FLPMA applications processed under 
proposed section 2804.20 and two less categories for MLA applications 
processed under proposed section 2884.18. BLM rarely uses existing 
Category IV for FLPMA applications or existing Categories IV and V for 
MLA applications. These categories involved applications which 
historically require multiple field examinations that are normally 
associated with collecting original data to complete environmental 
analysis or to verify the existence or absence of a threatened or 
endangered plant or animal species. In these cases, the work involved 
in processing the applications generally meets the criteria for 
Category V for FLPMA applications and Category VI for MLA applications, 
both of which address complex projects.
    The proposed regulations at sections 2804.14 and 2884.12 would 
remove the existing Category IV for FLPMA applications and Categories 
IV and V for MLA applications. BLM would establish a new Category IV 
for use with both types of applications. The new Category IV would 
require the applicant to pay the full reasonable or actual cost to BLM 
of processing right-of-way applications that require multiple field 
examinations and collecting or verifying original data.
    The proposed regulations at sections 2804.17 and 2884.13 establish 
a ``master agreement'' category for both FLPMA and MLA right-of-way 
applications. A master agreement is an agreement between BLM and you 
that, among other things, specifies you will reimburse BLM for the full 
reasonable costs of processing your application(s), if you are seeking 
a FLPMA grant, or the full actual costs of processing your 
application(s), if you are seeking an MLA grant. Paragraph (b) of 
proposed section 2804.17 lists the areas of negotiation. The master 
agreement application category is especially useful for MLA right-of-
way applications. Most MLA right-of-way applications filed with BLM 
involve activities within a limited area, an oil and gas field of 
relatively compact size. For example in New Mexico, an oil and gas 
field about 50 miles by 50 miles was developed on or crossing BLM-
administered lands. In a 20-month period, developers filed some 205 
right-of-way applications, each requiring individual category decisions 
and the collection of separate fees. One developer filed about half of 
the applications; another filed about 15 percent. A coordinated 
agreement for processing multiple applications for rights-of-way 
located in a limited area would have resulted in a more timely and 
complete response for both BLM and the companies involved.
    The proposed regulations specify what master agreements should 
include, what BLM expects of applicants, and what applicants may expect 
of BLM.
    The Forest Service proposes a fee category called ``Minimal 
Impact.'' The Forest Service considers this fee category to include 
minor recreation activities in an area already approved or designated 
in a forest plan for that use. Examples of ``minor recreation 
activities'' would be a one-time permit for a wedding, a marathon, a 
bike race, and a company picnic for more than 75 people. The Forest 
Service proposes a flat fee of $75 for processing an application in the 
Minimal Impact Category and no monitoring fee, since the authorization 
covers a one-time event.

[[Page 32109]]

    These activities do not qualify for grants issued under Title V of 
FLPMA, and BLM does not propose to add a Minimal Impact Category to our 
revised category list. If we did adopt a Minimal Impact Category, we 
would charge the same fee as the Forest Service proposes. We invite 
your comments on whether to include this category for short-term 
activities authorized by temporary use permits issued under the MLA or 
short-term grants issued under FLPMA.
    Revised category definitions. Applicants for grants have requested 
that BLM revise the existing category definitions. Applicants have 
stated that the definitions of the categories do not clearly state 
which costs to exclude or include. The proposed category definitions 
attempt to better define the categories by stating what factors BLM 
must consider in determining the application category. These factors 
include (1) whether or not original data are needed, (2) whether or not 
BLM must amend an existing land-use plan, (3) how many, if any, field 
examinations are needed, and (4) the estimated number of work hours 
needed to complete processing the application.
    The current fee category for processing an application also 
establishes the fee category for monitoring the subsequent grant. Once 
BLM issues the grant, however, the situation may change from that 
existing when the application was processed and require reevaluation of 
monitoring costs. For example, the presence of an endangered species or 
of an archaeological site may require numerous field observations by 
BLM or the grant holder, especially during construction. Thus, 
monitoring costs may increase.
    Current fee schedules of processing and monitoring costs are 
estimated average costs across BLM. The studies performed in 1986 
tracked monitoring costs according to the category decisions for 
processing. While normal statistical analysis would eliminate unusually 
high or low values, the remainder, as an average, should account for 
most of the variables between easy-to-hard processing and easy-to-hard 
monitoring.
    If BLM establishes monitoring fees separate from application 
processing fees, we propose to establish the monitoring categories 
based on the number of work hours involved, including the number of 
field examinations needed to monitor the grant. These hour estimates 
would be determined separately from the hour estimates for the 
processing fee categories. For instance, Monitoring Category I would 
consist of those grants that require less than 24 hours of work, 
including field examinations; Monitoring Category II would consist of 
those grants requiring between 24 and 36 hours of work, including field 
examinations; and Monitoring Category III would consist of those grants 
requiring between 37 and 50 hours of work, including field 
examinations. If you believe that this is an inappropriate criterion 
upon which to base monitoring categories, please suggest alternative 
criteria.
    Background for category fee amounts. Current regulations at subpart 
2808 of this title set fees for processing and monitoring costs as 
follows:

------------------------------------------------------------------------
                                                 Processing   Monitoring
                   Category                         fee          fee
------------------------------------------------------------------------
I.............................................         $125          $50
II............................................          300           75
III...........................................          550          100
IV............................................          925          200
V.............................................    Full reasonable costs
                                                      as required.
------------------------------------------------------------------------

    Based on the field study of some 1600 cases, BLM should have 
adjusted these fees in 1987, because of inflation and underestimating 
costs, to:

------------------------------------------------------------------------
                                                 Processing   Monitoring
                   Category                         fee          fee
------------------------------------------------------------------------
I.............................................         $175          $65
II............................................          300          100
III...........................................          575          175
IV............................................          820          200
------------------------------------------------------------------------

    Current MLA regulations at subpart 2883 set application processing 
and monitoring fees as follows:

------------------------------------------------------------------------
                                                 Processing   Monitoring
                   Category                         fee          fee
------------------------------------------------------------------------
I.............................................         $125          $25
II............................................          275           50
III...........................................          350           75
IV............................................          600          150
V.............................................        1,000          250
------------------------------------------------------------------------

    Based on the field study of more than 600 cases, BLM should have 
adjusted the MLA fees in 1987 to:

------------------------------------------------------------------------
                                                 Processing   Monitoring
                   Category                         fee          fee
------------------------------------------------------------------------
I.............................................         $150         $ 50
II............................................          225           75
III...........................................          575          250
IV............................................          750          350
V.............................................      Full actual costs.
------------------------------------------------------------------------

    Proposed fee amounts. Since the 1986 study, the cost of doing 
business has continued to rise. The Consumer Price Index, used to 
adjust the communication site rent schedule, and the Implicit Price 
Deflator Index, used to adjust other schedules, have risen about 35 and 
30 percent respectively. BLM calculated the proposed fee schedule for 
FLPMA applications and grants by adjusting the detailed study figures 
upward by 30 percent and rounded up to the nearest $10. This is the 
proposed fee schedule for processing and monitoring FLPMA right-of-way 
applications and grants:

------------------------------------------------------------------------
                                                 Processing   Monitoring
                   Category                         fee          fee
------------------------------------------------------------------------
I.............................................         $230         $ 80
II............................................          390          130
III...........................................          750          230
IV............................................    Full reasonable costs
                                                      as required.
Master agreement..............................        As negotiated.
------------------------------------------------------------------------

    BLM calculated the proposed fee schedule for MLA applications and 
grants in the same manner. The proposed fee schedule for these 
applications and grants is as follows:

------------------------------------------------------------------------
                                                 Processing   Monitoring
                   Category                         fee          fee
------------------------------------------------------------------------
I.............................................         $200          $70
II............................................          290          100
III...........................................          750          330
IV............................................      Full actual costs.
Master agreement..............................        As negotiated.
------------------------------------------------------------------------

    BLM sampled a number of cases in 1995. The sampling tended to agree 
with the adjusted 1986 study figures. Five Category I cases ranged from 
$125 to $510 to process, an average of about $200. Fifteen cases in 
Category II ranged from $82 to $700 to process, with an average of 
about $390. Only one Category III case was sampled, and its processing 
cost was $600. Performing another extensive field cost study, such as 
was done in 1986, would not produce sufficient new data to justify its 
costs. Adding a ``master agreement'' category may remove about half the 
cases which currently fall into Categories I through III.
    Annual fee adjustments. The regulations also propose adjusting the 
fee schedule for the following calendar year based on the previous 
year's change in the Implicit Price Deflator-Gross Domestic Product 
(IPD-GDP). BLM will round up changes to the nearest dollar. Review of 
other economic indices, such as the Consumer Price Index, discloses 
that these do not reflect a sufficiently high labor intensiveness to be 
used to adjust the cost recovery fee structure. We believe, however, 
that the IPD-GDP more closely reflects the relationship of labor to 
other costs and can be used as an adjustment factor. BLM proposes to 
use this index,

[[Page 32110]]

measured second quarter to second quarter, to adjust the fixed cost 
recovery fees annually. Under the proposed regulations, each year BLM 
would revise the fees, make copies of the revised fee schedule 
available in BLM offices before the beginning of the next calendar 
year, and post the fee schedule on the BLM Home Page on the Internet, 
http://www.blm.gov.
    Rents for communication site rights-of-way would continue to use 
the Consumer Price Index because the rents are based on the population 
served. The CPI reflects changes in the urban economy more accurately 
than the IPD-GPD does.
    If BLM adopts the increased cost recovery fee schedule as proposed, 
adjusted for the inflation rate, the fee schedule will be published in 
the Federal Register as part of the preamble to the final rule. The 
preamble would make clear that the fees would rise each year based on 
changes in the IPD-GDP.
    If you believe that the proposed cost recovery fee increases are 
unreasonable, or not in the public interest, please provide your 
rationale and any suggestions you may have for alternative methods of 
charging reasonable processing and monitoring fees for FLPMA and MLA 
right-of-way applications.
    Assignments and renewals. (Proposed subpart 2807). BLM proposes to 
use the category fee schedules as the basis for establishing and 
recovering the costs of processing assignments and renewals. Currently, 
the fee for assignments is $50, and there is no fee for renewals. BLM 
proposes to determine the appropriate category based on the estimated 
time to process each request. For example, if the estimated time to 
process an assignment for a FLPMA right-of-way is no more than 24 work 
hours, the cost recovery fee would be the fee for a Category I 
application. BLM specifically requests your comments on whether to use 
the proposed cost recovery categories for assignments and renewals. If 
you oppose the change, please suggest an alternative method of 
recovering costs for processing assignments and renewals.
Cost Exemptions and Reductions
    Background. Two final rulemakings, one on January 10, 1985, and the 
other on September 5, 1986, established BLM's current policies with 
respect to cost recovery for MLA grants. These policies are based on 
the 1973 amendments to the MLA, which require applicants for MLA 
rights-of-way or temporary use permits to reimburse the United States 
for all administrative and other costs involved in processing 
applications and in monitoring, operating, maintaining, and terminating 
the MLA grants. Therefore, cost exemptions and reductions are not 
available for MLA rights-of-way, except for those state and local 
governments that are exempt from cost recovery under the current 
regulations at 43 CFR 2883.1-1(a)(2).
    The final rule of July 8, 1987, described BLM's policies associated 
with determining the processing and monitoring costs for FLPMA right-
of-way grants. The rule defined the terms ``actual costs,'' which are 
the resources expended in processing a right-of-way application and 
monitoring the construction, operation, maintenance, and termination of 
the project and its facilities. Actual costs, less management overhead, 
form the amount to which BLM applies the ``reasonability factors'' 
listed in section 304(b) of FLPMA. For all but complex projects 
(Category V), the reasonability factors have little or no effect on 
actual costs. The rulemaking also defined the reasonability factors: 
``monetary value of the rights or privileges sought,'' ``public 
benefits,'' ``efficiency to government processing,'' and ``other 
factors.'' The ``other factors'' definition provides the means for BLM 
State Directors to reduce actual processing costs based on a wide range 
of special circumstances, including unique instances of public benefits 
or services. These reductions generally fall under the broad category 
of ``hardship,'' that is, paying full reasonable costs would create an 
undue hardship on the applicant.
    The rule also established, as a method of computing reasonable 
costs, an alternative which represented one percent of construction 
costs. This alternative was based on the practice of the state of New 
York, which charged corporations a maximum fee of one-half of one 
percent of their actual construction costs to process their right-of-
way applications for non-residential projects and a maximum of 2 
percent of actual construction costs for residential projects. This fee 
included the costs of preparing environmental impact statements and 
other processing activities. Finally, the rule exempted federal 
agencies and state and local governments and their agencies and 
instrumentalities from paying processing and monitoring costs.
    Automatic exemptions. BLM considered eliminating the exemptions for 
federal, state, and local governments to pay processing and monitoring 
costs established by the July 8, 1987, final rule. This exemption, 
under the current regulations, does not apply to municipalities that 
derive the majority of their revenues from user fees. We decided 
against proposing to eliminate the exemption for state and local 
governments for several reasons, including the fact that these entities 
comprise less than 10 percent of all applicants and grant holders. 
Because of their small numbers, eliminating the automatic exemption for 
them would not significantly decrease BLM's revenues from cost 
recovery. Municipalities that derive the majority of their revenues 
from user fees would continue to pay processing and monitoring costs.
    Currently, many federal agencies fund the processing of FLPMA 
right-of-way applications affecting their lands. The amount they pay is 
determined through negotiations. This process does not always produce 
consistency across BLM organizational units. BLM proposes to achieve 
consistency by assigning each federal project to a category. The 
category designation will enable other federal agencies to determine 
their costs in advance and will also reduce the administrative 
paperwork involved in federal transactions.
    Eliminating the one percent alternative. As mentioned previously, 
the July 1987 final rule established the payment of up to one percent 
of actual construction costs as an alternative method of paying the 
reasonable costs of processing right-of-way applications and monitoring 
the issued grants. The approach was viewed to have several benefits: 
(1) efficiency to both the applicant and BLM by avoiding complex data 
collection and by eliminating complex cost calculations, (2) providing 
an incentive to BLM to stay under the one percent cost level in 
processing and monitoring activities, and (3) giving a readily 
available dollar value for establishing a reasonable level of actual 
cost reimbursement. The current regulations contain this alternative at 
43 CFR 2808.3-1(f).
    Although this alternative seemed to have merit at the time, in 
practice it has been used only once, in resolving a situation in Public 
Service Commission v. Watt. BLM has not done an analyses of why 
applicants have not used this approach and will not speculate on the 
reasons. We are proposing to eliminate the one percent alternative. If 
you believe that we should retain this alternative, please provide the 
rationale for doing so in your comments.
    ``Other factors.'' Current regulations at 43 CFR 2808.5 list a 
number of factors which BLM State Directors may use to reduce or waive 
processing and monitoring costs. Although the preamble to the July 1987 
rule did not specifically state so, the factors are a list

[[Page 32111]]

of what could be termed ``hardship'' situations. BLM considers that 
``hardship'' is one of the ``other factors'' which section 304(b) of 
FLPMA allows BLM to consider in determining reasonable costs. Examples 
of hardship situations include: (1) the project requiring the right-of-
way grant could not be built because the processing and monitoring 
costs would be excessive, (2) public health and safety could be 
compromised if the right-of-way project were not built, and (3) the 
public benefits of the project greatly outweigh the costs. The language 
at proposed section 2804.18, paragraph (b), called ``Other 
considerations,'' lists possible hardship situations.
    The proposed regulations at section 2804.18 attempt to clarify that 
the exemptions and reductions listed apply to all FLPMA processing and 
monitoring cost categories, not just those having the highest costs 
(Category IV applications). In preparing the financial plans required 
as part of the information for Category IV applications (see proposed 
sections 2804.16(a)(3) for FLPMA applications and 2884.12 for MLA 
applications) and in negotiating cost recovery master agreements (see 
proposed section 2804.17 for FLPMA applications and section 2884.13 for 
MLA applications), you should identify what you expect BLM to pay for 
and what you expect to pay for. FLPMA applicants should also identify 
any hardship factors that they believe apply to their project. BLM will 
consider these factors during negotiations over the final processing 
and monitoring costs.
    Federal agencies may not qualify for cost reductions under the 
hardship factors. They may, however, qualify for reductions under the 
reasonability criteria as proposed at section 2804.18.
    The following sections describe other proposed changes to the 
existing regulations that do not involve fees. The proposed changes 
involve a new customer service standard for processing applications, 
organizational matters, clarifications of policies relating to rents 
for both linear and communication-site rights-of-way, a description of 
how the proposed regulations are organized, and when you may appeal BLM 
decisions.
Customer Service Standards
    Executive Order 12862, ``Setting Customer Service Standards,'' 
requires federal agencies to provide a standard of customer service 
equal to the best in the business. To accomplish this, Executive 
agencies should identify the customers that they serve, post customer 
service standards and measure results against them, provide customers 
with choices in both sources of service and means of delivery and make 
information, services and complaint systems easily accessible.
    The right-of-way program is committed to providing its customers 
with excellent, efficient service. Through a series of internal policy 
directives, starting in December 1995, program staff and managers have 
streamlined right-of-way application processing by: (1) encouraging 
applicants to file applications by fax and to pay by credit cards, (2) 
reiterating the processing times stated in Manual sections, (3) 
allowing applicants for MLA rights-of-way to file as part of their 
applications for a permit to drill, (4) reaching an understanding with 
State Historic Preservation Officers as to how BLM will conduct 
cultural surveys and the State Historic Preservation Officers will 
review applications and recommend provisions to preserve the cultural 
values of lands affected by potential rights-of-way, (5) sending 
customer service cards to right-of-way customers and requesting that 
the customers rate BLM's service in specific areas, and (6) modifying 
the financial system to assure that processing and monitoring fees go 
directly to the field office that generates the fee.
    The proposed regulations at section 2804.20(c) would further assist 
the customer service effort by providing applicants with written 
notices of when they can expect BLM to process their applications if 
processing the application will take longer than the estimated time 
periods. This information should assist applicants and grant holders in 
planning for constructing or changing their projects.
Hazardous Materials
    The proposed regulations would contain language addressing the 
storing, transporting, and using of hazardous materials on right-of-way 
grants as they relate to the following statutes: the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980, 42 
U.S.C. 9601 et seq. (CERCLA); the Resource Conservation and Recovery 
Act, 42 U.S.C. 6991 et seq. (RCRA); the Clean Water Act, 33 U.S.C. 1251 
et seq.; the Oil Pollution Act, 33 U.S.C. 2701 et seq.; and the 
Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. 
11001 et seq. CERCLA holds responsible parties liable for the costs of 
cleaning up hazardous waste sites. RCRA sets minimum guidelines and 
standards for manufacturing and disposal of hazardous and solid wastes.
    The current regulations do not address hazardous materials. Because 
of the importance of the safe use of rights-of-way and resource 
protection, BLM decided to incorporate hazardous material provisions 
into the proposed regulations. While most other BLM regulations do not 
yet specifically address hazardous materials, BLM concluded that 
addressing hazardous materials in the right-of-way regulations was a 
suitable beginning. The proposed revisions include the following:
    (1) Adding to the definitions section of the regulations at section 
2801.5 several terms used in the acts: ``discharge,'' ``hazardous 
material,'' and ``release;'' and
    (2) Clarifying that there is no maximum limit for strict liability 
for damages or injuries resulting from the actual or threatened 
discharge or release of hazardous substances, as defined by CERCLA, at 
section 2807.12.
    These definitions and conditions would apply to part 2880 by cross 
reference.
    All the proposed changes follow the ``polluter pays'' principle. If 
the grant holder is an innocent holder, he will still be held 
responsible for all costs and clean up from an accident or the release 
of hazardous substances. BLM believes that any other policy would shift 
the liability from the holder onto the United States and would result 
in less holder accountability.
    We intend to add similar program-specific language to other 
regulations as they are revised.
Organizational Matters
    Regional offices. Utility and industry applicants have suggested 
that BLM could shorten processing time for right-of-way applications if 
we established one or more ``regional right-of-way offices'' solely for 
processing applications involving cost recovery. BLM has not adopted 
this approach in the proposed rule because establishing regional right-
of-way offices would fracture the existing interdisciplinary approach 
to decisionmaking that BLM uses. Such offices would be understaffed, as 
from time to time a variety of specialists are needed for advice on 
proposed impacts or mitigation methods. Currently, BLM gets this 
expertise from existing BLM offices where the specialists are 
performing duties other than processing applications or monitoring 
grants.
    BLM is exploring the way that we process various applications. We 
periodically look at ways to consolidate, simplify, and cut costs when 
we process all types of applications. One possible way to cut costs and 
maximize resources would be to have a single specialist do all field 
examinations of a single site for which multiple

[[Page 32112]]

applications exist. For instance, when an oil and gas lessee needs 
approval of an application for permit to drill and a right-of-way for a 
road to the drill pad, a single specialist could visit the site and 
gather the necessary data to serve the processing of both applications. 
BLM welcomes any comments you may have on increasing our efficiency and 
cutting the time for processing your applications.
    Water power situations. Water power projects require a license from 
the Federal Energy Regulatory Commission (FERC) under the Water Power 
Act of 1920, as amended. If the project involves public lands, BLM must 
also issue a right-of-way grant. There are some exceptions for 
relicensing existing projects. FERC can collect costs incurred by it 
and other Federal agencies, including BLM, from the water power 
applicant or holder. This creates a potential double collection, where 
both FERC and BLM could collect from the applicant/holder the costs of 
a single project. To prevent this, BLM will only report to FERC those 
processing and monitoring costs that are not associated with BLM 
actions on the right-of-way application or grant. When a right-of-way 
application or grant is not involved, BLM will report all of its costs 
associated with a water power application or relicensing to FERC. The 
language at proposed section 2804.24 reflects this policy.
Rents
    Non-communication site rent payments. Section 504(g) of FLPMA 
requires right-of-way grant holders to pay annually, and in advance, 
the fair market value of their grant. This amount constitutes the 
``rent'' for the grant. Originally, FLPMA allowed BLM to bill grant 
holders for more than 1 year if the annual rent was less than $100. 
Amendments in 1986 changed the provision to give private individuals 
the option of paying annually or at some interval greater than 1 year 
if their rent payments exceed $100 per year.
    A March 1995 study by the Inspector General of the Department of 
the Interior (IG) found that BLM had not established a cost-effective 
system for billing annual rents. There was no minimum collection 
amount, and BLM billed for all annual rents that exceeded $1 per year. 
About 7,700 courtesy notices for bills of $34 or less were sent to 
grant holders. The IG further noted that BLM annually sent over 14,000 
bills to 21 grant holders. The IG recommended that BLM establish a 
minimum rent collection amount and revise the right-of-way regulations 
to provide for advance lump-sum payments covering more than 5 years 
when the annual rent is less than $100 per year. Even so, a substantial 
percentage of the bills for $34 or less represented 5 years' worth of 
rent.
    Based on the 1986 amendment to FLPMA and the IG's recommendations, 
BLM proposes to modify the way that we bill right-of-way grant holders. 
BLM must take steps to reduce the administrative workload that field 
offices bear in billing grant holders annually for rents, collections 
of rents, and proper depositing of the rents. Proposed section 2806.10 
states that BLM may bill for rents annually or for periods of more than 
1 year. Private individuals whose rent payments exceed $100 per year 
may elect to make annual payments rather than lump sum payments. 
Current policy requires advance rent payments in 5-year intervals if 
the rent amount is less than $100. The proposed rule would change this 
policy to allow BLM greater flexibility to address specific situations. 
We invite suggestions and comments on how long the advance payment 
period should be and what amount the annual rent payment should be to 
trigger the advance or lump sum payment.
    This proposed rule does not address either minimum rent amounts or 
another IG recommendation, that of increasing the rent amounts on the 
current linear rent schedule. A joint BLM-Forest Service team is 
analyzing these recommendations and other concerns related to linear 
rights-of-way.
    We request your comments, however, on whether BLM should charge 
fees for the late payment of rents. We are considering adding language 
to the regulations which would allow us to collect fees for the late 
payment of rents because (1) charging a fee for the late payment of 
money owed is a normal business practice in the private sector, with 
other federal agencies, and with other programs within BLM; (2) BLM is 
incurring significant administrative charges for attempting to collect 
late rent payments, without being able to recoup any of the 
administrative costs; and (3) imposing a late charge may encourage 
grant holders to make rent payments when they are due and avoid 
possible termination of their grants. When BLM terminates a grant, we 
may be able to recover rent payments owed under the Debt Collection 
Improvement Act of 1996, 31 U.S.C. 3701 et seq., but cannot recover the 
administrative costs associated with our prior collection efforts.
    You can find regulatory provisions which allow for BLM's collecting 
late payment charges at 43 CFR 2920.8(a)(3) and 43 CFR 4130.8-1(f). You 
may review these provisions to assist you in making comments or 
suggestions on whether BLM should charge a fee for late payment of 
right-of-way rents.
    If BLM decides to impose a late payment charge for delinquent 
rents, we propose to base the charge on the method described at 43 CFR 
4130.8-1(f). If we decide to use a different methodology, we will 
describe the proposed method in a separate proposed rule.
    Communication site rents. BLM proposes to amend the provisions for 
communication site rents as follows:
     Adding or revising various definitions related to rents 
applicable to rights-of-way for communication sites;
     Clarifying procedures promulgated in a final rule 
published in November 1995 as to how BLM will apply the communication 
site rent schedule in various circumstances; and
     Adding a provision that explains how BLM determines the 
``population served.'' We specifically invite your comments on whether 
or not all rules concerning communication site management should be 
segregated into a separate section of the right-of-way regulations. If 
our analysis of the comments received on this proposed rule indicates 
that a separate section for communication site management is 
appropriate, BLM will adopt it in the final rule without any change in 
the policies reflected in this proposed rule.
    Background for changes to communication site right-of-way rents. On 
November 13, 1995, BLM published regulations establishing a rental 
schedule for communication uses in the Federal Register. The schedule 
was the result of recommendations from the Radio and Television Use Fee 
Advisory Committee and the General Accounting Office. BLM intended the 
schedule to: (1) establish a fair and consistent approach for 
determining rental payments, based upon using facilities at various 
communication sites, (2) encourage tenants in a communication facility 
to consolidate their separate authorizations into a single 
authorization, and (3) reduce the number of disputes concerning rental 
values. These changes reduced the costs of obtaining appraisals and 
billing costs and minimized BLM involvement in managing the use and 
occupancy of facilities.
    The rent schedule bases rent on nine categories of communication 
uses on BLM-managed lands and groups these uses into three major 
categories: broadcast, non-broadcast and other. The ``broadcast'' 
category includes television, FM radio, rebroadcast devices, and cable 
television. The ``non-

[[Page 32113]]

broadcast'' category includes commercial mobile radio service, cellular 
telephone, private mobile communications, common carrier, and microwave 
communications. The ``other'' category includes small, unobtrusive, 
low-power uses serving small numbers of customers. Rents correlate with 
the population of the community where the facility is located or that 
it serves, or both. BLM uses the Rand McNally Commercial Atlas and 
Marketing Guide to determine the population size of communities of 
50,000 or more. For communities of less than 50,000 people, BLM uses 
the category of use and the most recent Census Bureau census.
    Before BLM established a schedule for communication site right-of-
way rentals, all such rents were determined through appraisal. All uses 
within a facility generally required a separate right-of-way 
authorization, and BLM appraised each use separately. Appraisals were 
expensive and needed frequent updating to reflect changes in fair 
market value. BLM administers approximately 3,200 rights-of-way for 
communication sites, half of which pay no rent because they are exempt 
under statutory and regulatory provisions. By implementing the rent 
schedule, BLM no longer bills rent on an individual user basis. BLM now 
requires only the facility owner to have an authorization for multiple 
use occupancy and bases the rent on the highest value use in the 
facility, plus 25 percent of the scheduled rent for each of the other 
uses in, or associated with, the facility for which rent is to be paid. 
The rent schedule identifies nine categories of use and nine population 
strata. Uses serving larger populations generally have higher 
associated rent values, as compared with those same uses serving 
smaller populations.
    BLM's rent schedule for rights-of-way devoted to communication uses 
became effective on December 13, 1995. BLM decided not to implement the 
new schedule until January 1, 1997, so that we could properly train 
field personnel to apply it and could resolve any outstanding policy 
issues. The Forest Service adopted a similar schedule through a policy 
published in the Federal Register on October 27, 1995. Nineteen ninety-
seven was the first year of BLM's 5-year phase-in period for the new 
schedule. During this year BLM received several questions from affected 
grant holders about the schedule, but there were no protests filed that 
resulted in appeals to IBLA. BLM and the Forest Service have jointly 
developed policies and procedures to ensure that both agencies 
consistently apply the schedule under similar circumstances, regardless 
of which agency authorizes the communication use.
    The changes contained in this proposed rule modify the regulatory 
text to reflect what has been implemented through internal BLM and 
Forest Service policy in the last 2 years. Unless otherwise specified, 
these proposed regulatory revisions only clarify how BLM will apply the 
schedule in various circumstances and will ensure that the schedule is 
applied fairly and consistently for all uses and holders of 
communication facilities located on BLM-managed lands. The proposed 
revisions do not change the rental values assigned to the uses or 
population strata of the original schedule.
    The proposed regulations and policies are consistent with the 
Telecommunications Act of 1996, 47 U.S.C. 332 note, and the various 
General Services Administration government-wide policy bulletins on 
determining the locations of telecommunications facilities, including 
commercial antennas, on public lands.
    New or revised definitions. (Section 2806.5). These definitions 
would affect subpart 2806 only. BLM would:
     Add new definitions for ``commercial purpose,'' 
``communication use rent schedule,'' ``facility manager,'' ``facility 
owner,'' ``reselling,'' and ``site'; and
     Revise the definitions for ``customer,'' ``tenant,'' and 
``other communication uses'' category.
    Adding a definition for ``commercial purpose'' would establish the 
condition that must exist before BLM will charge rent. Adding a 
definition for ``communication use rent schedule'' would identify all 
the uses and population strata that are included in the rent schedule.
    The proposed regulations use two new terms, ``facility manager'' 
and ``facility owner.'' A facility manager owns a communication 
facility on public land, leases space to other tenants in the facility, 
and has a communications authorization, usually a lease, but does not 
have his or her own communications equipment in the facility. A 
``facility owner'' owns a communication facility on public land, may or 
may not lease space to other tenants in the facility, and has a 
communications authorization, usually a lease, but has his or her own 
communications equipment within the facility. The difference is that 
the facility manager does not operate communication equipment for his 
or her own use; the facility owner does. BLM is introducing these terms 
because we charge rent only to those entities who hold authorizations. 
Tenants and customers do not ordinarily pay rent to BLM.
    Adding a definition for ``reselling'' is necessary, as reselling is 
a critical component for determining whether an occupant is considered 
a tenant, subject to rent, or a customer, not subject to rent.
    Amending the definition of ``other communication uses, within the 
overall definition of ``communication use rent schedule,'' to delete 
the reference to passive reflectors as an example of an ``other 
communication use'' is consistent with the intent of the November 13, 
1995, preamble to the communication site regulations (60 FR 57068) and 
with the Forest Service definition for this category. Amending the 
definition of ``tenant'' to include the words ``or broadcast'' would 
identify television or radio broadcast uses as a commercial activity 
subject to rent when located in another's facility and would make it 
consistent with the Forest Service definition of this term. Revising 
the definition of ``customer'' to incorporate the changes for the 
definition of ``tenant'' and to clarify the term would make it 
consistent with the Forest Service definition of the term. Under the 
proposed definition, BLM would exclude private and internal 
communication uses located in another holder's facility, and not just 
located in a commercial mobile radio service facility, for the purposes 
of calculating rent.
    Other changes proposed for applying the communication site use rent 
schedule. (Proposed sections 2806.17 through 2806.27) BLM would remove 
the statement at section 2803.1-2(d) that the rent schedule does not 
apply to public telecommunication service operators providing public 
television or radio broadcast services and who are granted a waiver or 
reduction of rent. A similar statement appears, however, in proposed 
section 2806.11. BLM may still grant reductions of rent for these uses 
if the provisions of proposed section 2806.12 apply.
    Section 2803.1-2(d)(2)(ii) now provides for a review of right-of-
way rents on a case-by-case basis 10 years after BLM issues the grants, 
and no more than every 5 years after that, to determine whether rents 
are appropriate. Such a request amounts to asking BLM to conduct an 
appraisal, estimated to cost $2,000 each in 1995. If all holders were 
to make such a request, right-of-way rental determinations for 
communication uses would revert to the methods used before November 
1995. This would greatly

[[Page 32114]]

increase costs (an estimated $3 million for the 1,500-plus 
authorizations now subject to rent) and would negate the administrative 
savings envisioned by using the new rent schedule. Proposed section 
2806.17(a) directs BLM to review the rent schedule every 10 years to 
ensure that the schedule reflects a rational fair market value estimate 
and eliminates the provision that allows each holder to request one or 
more reviews after 5 years.
    Proposed sections 2806.17 through 2806.27 clarify how BLM would 
apply the schedule in the various combinations of facility owners, 
tenants, customers, and the types of uses and populations served by 
these uses. These proposed sections would enable users and agency 
personnel to fully understand how to apply the schedule, given the 
varied circumstances that can exist. These provisions would not alter 
any of the basic provisions of the current rental schedule. This 
addition provides a basis for applying the communication use rent 
schedule fairly and consistently by both BLM and the Forest Service.
    One proposed change is to add the term ``site'' to the definitions 
section at 2806.5 to clarify ``site'' and ``facility.'' These terms are 
used throughout the proposed sections, particularly at proposed section 
2806.19, How will BLM determine the rent for a single-use communication 
facility? The term ``site'' is used to refer to the area, such as a 
mountain top, which contains one or more communication facilities. The 
term ``facility'' is used to refer to the authorized improvements 
associated with a site, e.g., TV, radio, or cell phone antennae. A 
single site may accommodate several facilities for a variety of 
communication uses, some facilities serving metropolitan areas, such as 
TV broadcast towers and antennae, and some serving local areas, such as 
cellular phone antennae. The facilities located at a particular site 
are there because the site allows the facilities to serve a particular 
market or geographical area effectively.
    Appeals section. The proposed regulations eliminate the existing 
subpart on Appeals, subpart 2804, and propose to replace it with 
references to the right of appeal at each point where you may appeal a 
decision. If an appeal is authorized, the proposed rule references 
``part 4.'' This proposed modification is meant only to improve the 
organization of the rule. It is not intended to add or remove appeal 
opportunities. Current regulations also contain references to the right 
of appeal at each appealable decision point. BLM has issued proposed 
regulations to revise and consolidate its appeals regulations at part 
1840 and 1850 into a revised part 1840. (See 61 FR 54120 through 54141, 
October 17, 1996.) If or when BLM promulgates revised appeal 
regulations, this final revised rule will reflect them.
Reorganizing the Regulations
    The proposed rule would reorganize the material and present it in 
the order in which prospective applicants for rights-of-way across 
public lands would need it. The proposed regulations also give 
information about what is expected of right-of-way grant holders and 
how BLM monitors the grants. This restructuring is meant to make the 
regulations simpler to understand and is not meant to have any 
substantive effect.
    BLM proposes to adopt the preferred numbering system of the Office 
of the Federal Register. The existing regulations indicate one section 
as subordinate to another by using hyphens in the number. For example, 
sections 2808.3-1 and 2808.3-2 are subordinate to section 2808.3. In 
the proposed rule, sections are arranged sequentially, beginning with 
the number ``0.'' For example, section 2804.10 is followed by 
subordinate sections 2804.11, 2804.12, 2804.13, and so forth. In some 
cases, these leading sections may serve only as main headings.
    The following cross-reference table describes the major 
organizational changes. Use the table as a guide to help you find where 
provisions found in the current regulations appear, in either an 
unchanged (except for style) or substantively revised form, in the 
proposed regulations. Proposed new provisions and policy appear in the 
text under both the GENERAL and SECTION-SPECIFIC DISCUSSIONS in the 
preamble, not in the table that follows.

------------------------------------------------------------------------
       Where is it now?                    Where would it go?
------------------------------------------------------------------------
Section 2800.0-1, Purpose....  Eliminated as redundant to material in
                                section 2801.7, What is the scope of
                                these regulations?
Section 2800.0-3, Authority..  Section eliminated. Authority appears in
                                introductory material at the beginning
                                of part 2800 under ``Authority''
                                heading.
Section 2800.0-5, Definitions  Section changed and renumbered as section
                                2801.5, What definitions do I need to
                                know to understand these regulations?
                                Minor changes in definitions to reflect
                                plain language writing style.
Section 2800.0-7, Scope......  Text streamlined, reworded and renumbered
                                to appear in two sections: 2801.7, What
                                is the scope of these regulations? And
                                2801.8, Are there any rights-of-way
                                outside the scope of these regulations?
Section 2800.0-9, Information  Text streamlined and moved to new section
 collection.                    2801.9, Does BLM have the authority to
                                ask me for the information required in
                                these regulations?
Section 2801.1-1, Nature of    Text streamlined, reworded, and moved to
 right-of-way interest.         proposed section 2805.12, What rights
                                does the grant convey?, and 2805.13,
                                What rights does the United States
                                retain? References to temporary use
                                permits removed, as BLM proposes to
                                eliminate these instruments.
Section 2801.1-2, Reciprocal   Text streamlined, reworded, and moved to
 grants.                        proposed section 2805.13, What rights
                                does the United States retain?,
                                paragraph (d), as a potential condition
                                of issuing a grant.
Section 2801.2, Terms and      Text streamlined, reworded, and moved to
 conditions of grants.          proposed section 2805.12, What rights
                                does the grant convey?, as follows:
                                (a)(1) to paragraph (c)(1); paragraph
                                (a)(2) to paragraph (c)(8); paragraph
                                (a)(3) to paragraph (c)(2); paragraph
                                (a)(4) to paragraph (c)(3); paragraph
                                (b)(1) to paragraph (c)(7)(i); paragraph
                                (b)(2) to paragraph (c)(7)(ii);
                                paragraph (b)(3) to paragraph
                                (c)(7)(iii); paragraph (b)(4) to
                                paragraph (c)(7)(iv); paragraph (b)(5)
                                to paragraph (c)(7)(v); and paragraph
                                (b)(6) to paragraph (c)(7)(vi).
Section 2801.3, Unauthorized   Text streamlined and moved to proposed
 use, occupancy, or             subpart 2808, What do I need to know
 development.                   about trespass?
Section 2801.4, Rights-of-way  Text streamlined and moved to proposed
 issued on or before October    section 2801.7, What is the scope of
 1, 1976.                       these regulations?

[[Page 32115]]

 
Section 2802.1,                Text streamlined and moved to proposed
 Preapplication activity.       sections as follows: paragraph (a) to
                                2802.10, What lands are available for
                                FLPMA rights-of-way?; paragraph (b) to
                                proposed section 2804.13, Will BLM keep
                                my information confidential?; paragraph
                                (c) to proposed section 2804.14, Is
                                there a filing fee for my application?;
                                paragraph (d) to proposed section
                                2804.25, What can I do on the proposed
                                right-of-way while BLM is processing my
                                application?; and paragraph (e) to
                                proposed section 2804.10, What should I
                                do before I file my application?
Section 2802.2-1, Application  Text streamlined and moved to proposed
 filing.                        section 2804.11, Where do I file my
                                application?
Section 2802.2-2,              Text streamlined, reworded, and moved to
 Coordination of applications.  proposed section 2804.12, What
                                information do I need to submit in my
                                application?, paragraph (b).
Section 2802.3, Application    Text streamlined, reworded, and moved to
 content.                       proposed section 2804.12, What
                                information do I need to submit in my
                                application?
Section 2802.4, Application    Text streamlined, reworded and moved to
 processing.                    proposed sections as follows: paragraph
                                (a) to proposed section 2804.21, Can BLM
                                reject my application?, for paragraphs
                                (1) through (5), and to proposed section
                                2804.20, How will BLM process my
                                application?, for the acknowledgment;
                                paragraph (b) eliminated because BLM
                                proposes to eliminate temporary use
                                permits and to replace them with short-
                                term right-of-way grants; paragraph (c)
                                to proposed section 2804.12, What
                                information do I need to submit in my
                                application?; paragraphs (d), (e) and
                                (h) to proposed section 2804.20, How
                                will BLM process my application?;
                                paragraph (f) to proposed section
                                2805.13, What rights does the United
                                States retain?, paragraph (e); and
                                paragraph (g) to proposed section
                                2805.11, When is the grant effective?
Section 2802.5, Special        Paragraph (a) eliminated because the
 applications procedures.       grace period has expired; paragraph (b)
                                eliminated as redundant of text in other
                                parts of the regulations.
Section 2803.1-2, Rental.....  Text streamlined and moved to proposed
                                subpart 2806, What information do I need
                                to know about rents for right-of-way
                                grants?, where there are separate
                                discussions of linear (sections 2806.14
                                through 2806.16, communication site
                                (2806.17 through 2806.27) and other
                                (2806.28) rents. Text also clarifies
                                treatment of different types of
                                communication sites, based on the
                                November 1995 regulations.
Section 2803.1-3, Competitive  Text significantly streamlined and moved
 bidding.                       to proposed section 2804.23, Do I always
                                have to submit an application for a
                                right-of-way to receive a grant?
                                Procedural detail removed as more
                                appropriate for internal agency guidance
                                and to allow greater flexibility in
                                using competitive bidding.
Section 2803.1-4, Bonding....  Text reworded and moved to proposed
                                section 2805.10, What rights does the
                                grant convey?, paragraph (c)(6).
Section 2803.1-5, Liability..  Text streamlined, reworded and moved as
                                follows: paragraph (a) to proposed
                                paragraph (a) of section 2807.12, For
                                what am I liable?; paragraph (b) to
                                proposed paragraph (b) of section
                                2807.12; paragraph (c) to proposed
                                paragraph (d) of section 2807.12;
                                paragraph (d) to proposed paragraph
                                (c)(6) of section 2807.12; paragraph (e)
                                to proposed paragraph (f) of section
                                2807.12; paragraph (f) to proposed
                                section 2807.13, What liabilities do
                                State and local governments have?;
                                paragraph (g) to proposed paragraph (c)
                                of section 2807.12; paragraph (h) to
                                proposed paragraph (f) of section
                                2807.12; and paragraph (i) to proposed
                                paragraph (e) of section 2807.12.
Section 2803.2, Holder         Text streamlined, reworded and moved to
 activity.                      proposed sections as follows: paragraph
                                (a) to proposed section 2807.10, When
                                can I start activities under my grant?;
                                and paragraph (b), (c) and (d) to
                                proposed section 2807.11, When must I
                                contact BLM?
Section 2803.3, Immediate      Text streamlined, reworded and moved to
 temporary suspension of        proposed section 2805.17, Can BLM
 activities.                    temporarily suspend my activities to
                                protect public health and safety and the
                                environment without providing an
                                administrative hearing?
Section 2803.4, Suspension     Text streamlined, reworded, and moved as
 and termination of right-of-   follows: paragraphs (a), (b), (c) and
 way grants.                    (d) to proposed section 2807.16, Can BLM
                                terminate or suspend my grant?;
                                paragraph (d) to proposed section
                                2807.17, How will I know that BLM
                                intends to suspend or terminate my
                                grant?, paragraph (a); and paragraph (e)
                                to proposed paragraph (c) of section
                                2807.16, Can BLM terminate or suspend my
                                grant?
Section 2803.1-4, Disposition  Text streamlined, reworded and moved to
 of improvements upon           proposed section 2807.18, What happens
 termination.                   to any improvements on my grant when it
                                terminates?
Section 2803.5, Change in      Text streamlined, reworded, and moved to
 Federal jurisdiction or        proposed section 2807.14, What happens
 disposal of lands.             if BLM transfers management of the land
                                on which my grant is located to another
                                Federal agency or outside of public
                                ownership?
Section 2803.6-1, Amendments.  Text streamlined, reworded, and moved to
                                proposed section 2807.19, When must I
                                amend my application or grant?
Section 2803.6-2, Amendments   Text streamlined, reworded, and moved to
 to existing railroad grants.   proposed paragraph (c) of section
                                2807.19, When must I amend my grant?
Section 2803.6-3, Assignments  Text streamlined, reworded, and moved to
                                proposed section 2807.20, May I assign
                                my grant?
Section 2803.6-4,              Text streamlined, reworded, and moved to
 Reimbursement of costs for     proposed section 2807.21, What will BLM
 assignments.                   charge for reviewing a request for
                                assignment?
Section 2803.6-5, Renewals of  Text streamlined, reworded, and moved to
 right-of-way grants and        proposed section 2807.22, Can I renew my
 temporary use permits.         grant?
Section 2804.1, Appeals......  Subpart eliminated. Information about
                                actions which you may appeal appears in
                                the sections to which it applies.
Section 2806.1, Corridor       Text streamlined and more simply worded.
 designation.                   Material appears in renumbered section
                                2802.10, What lands are available for
                                right-of-way grants?
Section 2806.2, Designation    Text streamlined and reworded. Material
 criteria.                      appears in renumbered section 2802.11,
                                How does BLM designate corridors?
Section 2806.2-1, Procedures   Text streamlined, reworded, and moved to
 for designation.               section 2802.10, What lands are
                                available for right-of-way grants?

[[Page 32116]]

 
Section 2807.1, Application    Text streamlined, reworded, and moved to
 filing.                        proposed section 2809.10, Can Federal
                                agencies get a right-of-way grant?
Section 2807.1-1, Document     Text streamlined, reworded, and moved to
 preparation.                   proposed section 2805.10, What does a
                                grant contain?
Section 2807.1-2, Reservation  Text streamlined, reworded, and moved to
 termination and suspension.    proposed section 2807.16, Can BLM
                                terminate or suspend my grant?
Section 2808.1, General......  Text streamlined, reworded, and moved to
                                proposed section 2804.14, Is there a
                                filing fee for my application?,
                                paragraph (a).
Section 2808.2-1, Application  Text streamlined, reworded, and moved to
 categories.                    proposed section 2804.14, Is there a
                                filing fee for my application?,
                                paragraph (c).
Section 2808.2-2, Category     Text streamlined, reworded, and moved to
 determination.                 proposed section 2804.14, Is there a
                                filing fee for my application?,
                                paragraph (e) and (g).
Section 2808.3-1, Application  Text streamlined, reworded, and moved to
 fees.                          proposed sections as follows: paragraph
                                (a) to proposed section 2804.14, Is
                                there a filing fee for my application?,
                                paragraph (b); paragraph (b) to proposed
                                section 2804.14, paragraph (f).
                                Paragraphs (c), (d) and (e) to proposed
                                section 2804.16, How will BLM process my
                                Category IV application?; paragraph (f)
                                to proposed section 2804.18, Can BLM
                                reduce my reimbursement costs?,
                                paragraph (a)(2); paragraph (g) to
                                proposed section 2804.18, paragraph (e);
                                and paragraph (i) to proposed section
                                2804.18, paragraph (d).
Section 2803.3-2, Periodic     Text streamlined, reworded, and moved to
 advance payments.              proposed sections as follows: paragraphs
                                (a) and (b) to proposed section 2804.16,
                                How will BLM process my Category IV
                                application?, paragraph (b); paragraph
                                (c) to proposed section 2804.14, Is a
                                filing fee for my application?,
                                paragraph (g); and paragraph (d)
                                eliminated, as this is redundant of
                                other sections, such as 2804.14.
Section 2803.3-3, Costs        Text streamlined, reworded, and moved to
 incurred for a withdrawn or    proposed section 2804.22, Do I owe any
 denied application.            money if BLM rejects my application or I
                                withdraw my application?
Section 2803.3-4, Joint        Text streamlined, reworded, and moved to
 liability for payments.        proposed section 2804.19, What happens
                                if there are two or more competing
                                applications for the same facility or
                                system?
Section 2808.4, Reimbursement  Text streamlined, reworded, and moved to
 of costs for monitoring.       proposed section 2805.14, What are
                                monitoring fees?
Section 2808.5, Other cost     Text streamlined, reworded, and moved to
 considerations.                proposed section 2804.18, Can BLM reduce
                                my reimbursement costs?
Section 2808.6, Action         Text consolidated with that in current
 pending decision and appeal.   section 2808.5, reworded and moved to
                                proposed section 2804.18, Can BLM reduce
                                my reimbursement costs?
Section 2880.0-3, Authority..  Section eliminated. Material appears as
                                ``Authority'' in the introductory
                                material at the beginning of part 2880.
Section 2880.0-5, Definitions  Minor changes in definitions to reflect
                                plain language writing style. Definition
                                of ``public lands'' in proposed section
                                2801.5 replaced by definition of
                                ``Federal lands'' in proposed section.
                                Section renumbered as 2881.5, What
                                definitions do I need to know to
                                understand these regulations?
Section 2880.0-7, Scope......  Text reworded into plain language and
                                appears in two proposed sections:
                                2881.7, What is the scope of these
                                regulations? And 2881.8, What grants are
                                not covered by these regulations?
Section 2881.1-1, Nature of    Text streamlined, reworded, and moved to
 right-of-way interest.         proposed section 2885.11, What are the
                                terms and conditions of the grant or
                                permit? Cross references proposed
                                section 2805.10, for terms and
                                conditions in common with non-MLA rights-
                                of-way.
Section 2881.1-2, Nature of    Same as entry above at section 2881.1-1.
 temporary use permit.
Section 2881.1-3, Reservation  Text streamlined and moved to proposed
 of rights to the United        section 2885.12, What are the terms and
 States.                        conditions of the grant or permit?,
                                which cross references proposed section
                                2805.13, since many terms and conditions
                                are common to both types of rights-of-
                                way. Proposed section 2885.12 emphasizes
                                only those terms and conditions which
                                are MLA-specific.
Section 2881.2, Terms and      Text streamlined and moved to proposed
 conditions, interest granted.  section 2885.12, What are the terms and
                                conditions of the grant or permit?
Section 2881.3, Unauthorized   Text streamlined and moved to proposed
 use, occupancy or              subpart 2888, What general information
 development.                   do I need to know about trespass?
                                Contains a cross reference to proposed
                                subpart 2808.
Section 2882.1,                Text streamlined, reworded, and moved to
 Preapplication activity.       proposed sections as follows: paragraph
                                (a) to proposed section 2884.10, What
                                should I do before I file my
                                application?: paragraph (b) eliminated
                                as redundant of regulatory text
                                elsewhere, including subpart 2883, What
                                qualifications do I need to have to hold
                                an MLA grant or permit?; paragraph (c)
                                to proposed section 2884.12, Is there a
                                filing fee for my application?; and
                                paragraph (d) to proposed section
                                2884.22, What may I do on the proposed
                                right-of-way while BLM is processing my
                                application?
Section 2882.2-1, Application  Text streamlined, reworded, and moved to
 qualifications.                proposed sections as follows: paragraphs
                                (a) and (b) to subpart 2803, What
                                qualifications do I need to have to hold
                                an MLA grant or permit?; and paragraph
                                (c) to proposed section 2884.16, What do
                                I file my application for an MLA grant
                                or permit?
Section 2882.2-2, Application  Text streamlined, reworded, and moved to
 filing.                        proposed section 2884.16, Where do I
                                file my application for an MLA grant or
                                permit?
Section 2882.2-3, Application  Text streamlined, reworded, and moved to
 content.                       proposed section 2884.11, What
                                information do I need to provide in my
                                application?

[[Page 32117]]

 
Section 2882.3, Application    Text streamlined, reworded, and moved to
 processing.                    proposed sections as follows: paragraphs
                                (a), (b), (f) and (g) to proposed
                                section 2884.18, How will BLM process my
                                application?; paragraph (c) to proposed
                                section 2884.11, Can BLM reject my
                                application?; paragraphs (d) and (h) to
                                proposed section 2884.19, Can BLM ask me
                                for additional information?; paragraph
                                (e) eliminated as redundant of other
                                text; paragraphs (i) and (j) to proposed
                                section 2884.23, When will BLM issue the
                                grant or permit?; paragraphs (k) and (l)
                                to proposed section 2885.10, When is the
                                MLA grant or permit effective?; and
                                paragraph (m) to proposed section
                                2885.11, What are the terms and
                                conditions of the grant or permit?
Section 2882.4, Interagency    Text eliminated as redundant of other
 agreements.                    text in other sections, such as proposed
                                sections 2884.10 and 2884.18.
Section 2883.1-1, Cost         Text streamlined, reworded, and moved to
 reimbursement.                 proposed section 2884.12, Is there a
                                filing fee for my application?
Section 2883.1-2, Rental       Text streamlined, reworded, and moved to
 payments.                      proposed section 2885.12, How much does
                                it cost to hold a grant or permit? Cross
                                references to proposed subpart 2806--
                                What information do I need to know about
                                rents for MLA right-of-way grants?
Section 2883.1-3, Bonding....  Text streamlined, reworded, and moved to
                                proposed section 2885.11, What are the
                                terms and conditions of the grant?, as a
                                condition of issuing the grant.
Section 2883.1-4, Liability..  Text streamlined, reworded, and moved to
                                proposed section 2886.15, For what am I
                                liable?, and proposed section 2885.13,
                                Who is liable for payments?
Section 2883.1-5, Common       Text streamlined and incorporated as a
 carriers.                      provision of the grant at proposed
                                section 2885.11, What are the terms and
                                conditions of the grant or permit?,
                                paragraph (c).
Section 2883.1-6, Export.....  Text streamlined and incorporated as a
                                provision of the grant at proposed
                                section 2885.11, What are the terms and
                                conditions of the grant or permit?,
                                paragraph (b) on the terms and
                                conditions of use.
Section 2883.2, Holder         Text streamlined, reworded, and moved to
 activity.                      proposed sections as follows: paragraph
                                (a) to proposed section 2886.11, Who
                                regulates my activities?; paragraphs (b)
                                and (c) to proposed section 2886.13,
                                When must I contact BLM?; paragraphs
                                (d), (e) and (f) to proposed section
                                2887.10, What conditions require
                                amending a grant?
Section 2883.3, Construction   Text streamlined, reworded, and moved to
 procedures.                    proposed section 2886.10, When can I
                                start activities under my grant or
                                permit?
Section 2883.4, Operation and  Text streamlined and consolidated with
 maintenance.                   existing section 2883.3, Construction
                                procedures, into proposed section
                                2886.10, When can I start activities
                                under my grant or permit?
Section 2883.5, Immediate      Text streamlined, reworded, and moved to
 temporary suspension of        proposed section 2886.18, When can BLM
 activities.                    terminate or suspend my grant or permit?
Section 2883.6-1, Suspension   Text streamlined, reworded, and moved to
 and termination of permits.    proposed section 2886.17, When can BLM
                                terminate or suspend temporary use
                                permits?, which cross references
                                proposed sections 2807.15 and 2807.16.
Section 2883.6-2, Suspension   Section eliminated, as temporary use
 and termination of temporary   permits are covered in proposed section
 use permits.                   2886.17, When can BLM terminate or
                                suspend temporary use permits?
Section 2883.7, Change in      Text streamlined, reworded, and moved to
 jurisdiction or disposal of    proposed section 2886.16, What happens
 lands.                         if BLM transfers management of the land
                                on which my grant is located to another
                                agency or outside public ownership?
Section 2883.8, Restoration    Text streamlined, reworded, and
 of Federal lands.              consolidated within proposed section
                                2885.11, What are the terms and
                                conditions of my grant or permit?, as a
                                provision of the grant or permit, cross
                                referenced to proposed subpart 2805--
                                What terms and conditions do grants
                                contain?
Section 2884.1, Appeals......  Section eliminated. Right of appeal noted
                                in text where appealable action is
                                discussed.
Section 2887.0-3, Authority..  Section eliminated. Act cited in
                                ``Authority'' section as heading in the
                                introductory material before part 2880
                                listings begin.
------------------------------------------------------------------------

    Additional reorganization may occur as a result of the public 
comments received. The preamble to the final regulations will address 
any additional reorganization of the regulatory text made as a result 
of public comments.

Section-Specific Discussions

    The material in this section describes proposed changes affecting a 
single section and policies relating to the proposed changes. It also 
describes new sections. Sections which consist entirely of language 
rephrased from material in the current regulations without any other 
changes are not discussed.
Part 2800
    Section 2801.5, What definitions do I need to know to understand 
these regulations? The discussions below pertain only to those 
definitions proposed for change or proposed to be added.
    The existing terms ``public service provided, ``cost incurred for 
the benefit of general public interest,'' ``monetary value of the 
rights and privileges sought,'' ``actual costs,'' ``management 
overhead,'' and ``efficiency to Government processing,'' found at 
section 2800.0-5, would be incorporated into section 2804.18, Can BLM 
reduce my reimbursement costs?, as factors which BLM may consider in 
determining whether or not to reduce the processing fee for all 
categories of applications, including Category IV applications. The 
terms ``road use, amortization and maintenance charges'' and ``written 
demand'' would be removed because they are no longer used.
    Three new terms, ``discharge,'' ``hazardous material,'' and 
``release'' would be added to be consistent with the provisions of the 
Clean Water Act and BLM's hazardous materials policies with respect to 
the right-of-way program. BLM complies with these laws, but the current 
regulations do not explicitly address their requirements. The terms 
``discharge'' and ``release'' would have the meanings given at section 
1321(a)(2) of the Clean Water Act and section 9601(22) of CERCLA, 
respectively.
    The new term ``hazardous material'' would cover the following 
substances or materials:

[[Page 32118]]

    (1) Any substance or material defined as a ``hazardous substance'' 
under CERCLA at 42 U.S.C. 9601(14),
    (2) Any regulated substance in underground storage tanks, as 
defined by the Resources Conservation and Recovery Act (RCRA) at 42 
U.S.C. 6991 et seq.,
    (3) ``Oil,'' as defined in the Clean Water Act at 33 U.S.C. 1321(a) 
and the Oil Pollution Act at 33 U.S.C. 2701 et seq., and
    (4) Other substances defined and regulated as ``hazardous'' by 
applicable federal, state and local law.
    BLM intends to use the term ``hazardous material,'' rather than 
``hazardous substance,'' because the term is broader. Right-of-way 
holders, including oil and gas pipeline companies, use, store or 
transport various hazardous materials across public lands. BLM seeks to 
protect the public lands from oil discharges and releases. The broad 
definition also aligns with BLM's responsibility to minimize damage to 
scenic and scientific values and fish and wildlife habitat, to protect 
the environment from impacts resulting from issuing and using right-of-
way grants, and to protect the public lands from undue degradation.
    The new term ``field examination'' defines one of the factors that 
BLM will use to determine the category upon which to base processing 
and monitoring costs. BLM proposes to base the definition on the number 
of vehicles, rather than the number of people occupying the vehicles, 
because we believe that measuring costs on the basis of trips will 
encourage BLM to combine trips and use our expertise most efficiently.
    You should compare the term ``public land'' at proposed section 
2801.5 to the term ``federal land'' at proposed section 2881.5, What 
definitions do I need to know to understand these regulations? The 
lands available for right-of-way grants under FLPMA are different from 
the lands available for grants and temporary use permits under the MLA. 
Lands under BLM jurisdiction are called ``public lands'' for the 
purposes of FLPMA. For the purposes of the MLA, the term ``federal 
lands'' includes both lands under BLM jurisdiction and under the 
jurisdiction of other federal agencies, state governments, and private 
individuals (if the minerals were reserved to the United States.) Under 
the MLA, BLM only issues grants on federal lands which are under the 
jurisdiction of BLM or when a proposed use involves two or more other 
federal agencies. Lands in the National Park Service System are 
statutorily excluded from both MLA and FLPMA because they are 
administered by the National Park Service and are generally not subject 
to non-Park Service uses. Other lands excluded from right-of-way use 
under both FLPMA and MLA are lands located on the Outer Continental 
Shelf and those held in trust for Aleuts, Eskimos, and Indians.
    The proposed regulations continue to define the terms ``right-of-
way'' and ``grant'' separately. The term ``right-of-way'' describes the 
physical feature, the land, upon which the holder is exercising the 
right to use or traverse the right-of-way. The term ``grant'' describes 
the instrument (easement, lease, license, or permit) which gives the 
holder authority to use or traverse the land for right-of-way purposes. 
Although FLPMA uses the term ``right-of-way'' to describe both the land 
and the instrument, in practice using the term in both ways has proven 
confusing. The phrase ``authorizing the use of a right-of-way over, 
upon, under or through public lands for construction, operation, 
maintenance and termination of a project'' would be dropped from the 
definition of ``right-of-way grant'' because it is redundant of 
material found in the definition of the term ``right-of-way.'' The term 
``grant'' does not imply the conveyance of the title.
    The term ``temporary use permit'' would be removed and replaced by 
a definition for ``temporary use.'' The term ``temporary use'' 
signifies BLM's intent to issue short-term grants issued under part 
2800, when the use is of a temporary nature. We make this proposal 
because, in practice, the same provisions apply to both use permits and 
grants and because processing times for the two documents are similar. 
The only difference between temporary use permits issued under part 
2800 and grants is duration. The proposed change would also eliminate 
confusion caused by using the term permit for both short-term grants 
and permits for other uses authorized under part 2920. We are unable to 
propose this change for rights-of-way issued under part 2880 because 
the MLA specifically allows for temporary use permits. Therefore, 
section 2881.5 retains a definition for ``temporary use permit.''
    Section 2801.10, Severability. This new section would describe the 
legal principle of ``severability'' and apply it to the regulations in 
part 2800. Under severability, if any portion of these regulations were 
found invalid as to a particular set of circumstances or particular 
people, the remaining portions of the regulations would remain valid 
and BLM could enforce them separately and legitimately. This principle 
has always applied to the regulations but is stated here for 
information and clarity.
    Section 2802.10, What lands are available for right-of-way grants? 
This section combines and retains the information found in the current 
regulations at sections 2806.1, Corridor designation, and 2806.2-1, 
Procedures for designation. It explains that the availability of land 
for right-of-way use is tied to BLM's land-use planning process, which 
may designate corridors and avoidance, exclusion and open areas. 
Although BLM designates right-of-way corridors and issues grants within 
these corridors to the maximum extent practical, it is not always 
possible to restrict uses to designated corridors, in cases such as 
rights-of-way connecting wells, residences, and buildings to existing 
facilities.
    New paragraph (c) suggests that you visit the BLM office nearest 
you before you file an application for a right-of-way grant. During the 
visit you can learn whether the land that you want to use is available, 
what the qualifications are for holding a grant, what the application 
requirements are and how long it may take BLM to process your request. 
You can also learn if other federal and state agencies need to be 
involved. (See also the discussion at proposed section 2804.10, What 
should I do before I file my application?)
    Section 2802.11, How does BLM designate corridors? This section 
contains material currently found in the regulations at section 2806.2, 
Designation criteria. The proposed rule would add two new criteria: 
transportation and utility corridor studies developed by user groups 
(paragraph (h)) and existing transportation and utility corridors that 
are capable of accommodating additional compatible uses without further 
review (paragraph (j)). Experience has shown that BLM managers use 
these two factors, in addition to the others, in making decisions about 
siting right-of-way corridors.
    Subpart 2803, What qualifications must I meet to get a right-of-way 
grant? The proposed regulations contain four new sections-- 2803.10, 
Who can hold a grant?; 2803.11, Must I submit proof of my 
qualifications with my application?; 2803.12, Can other people act on 
my behalf?; and 2803.13, What happens to my grant if I die?--with 
information about who may hold a grant. This information has not 
appeared in the regulations at part 2800 since 1982, when BLM decided 
to eliminate it and place it on the application form, SF-299. We 
believe

[[Page 32119]]

that placing the qualifications information back in the regulations 
will make it easier for individuals and groups to find information 
about BLM's right-of-way program.
    Section 2804.10, What should I do before I file my application? 
This proposed section begins the completely revised subpart about 
applying for grants. It contains a streamlined version of the material 
currently found in section 2802.1, Preapplication activity, paragraphs 
(a) and (e). BLM encourages anyone interested in obtaining a right-of-
way grant across public lands to visit the nearest BLM office to get 
information about the right-of-way program, lands available for right-
of-way grants, and other factors affecting their applications. Visiting 
BLM before filing your application may shorten the time that it takes 
BLM to process your application and determine whether or not to issue a 
grant. At this meeting, BLM may be able to provide you with an estimate 
or informal determination of what it may cost to process your 
application.
    Section 2804.12, What information do I need to submit in my 
application? Currently, this information is contained in several 
subparts, including 2802 and 2808. BLM intends that this subpart 
provide all the information that you may need to apply for a grant 
issued under the provisions of FLPMA. The subpart presents the 
necessary information in a sequence in which you might ask questions 
about the application procedures.
    The new language in this section would specify the form number of 
the application, SF-299, and give a brief description of the 
information that the form requires. This description is a condensed 
version of the list of information in the current regulations at 
section 2802.3, paragraph (a).
    Section 2804.14, Is there a filing fee for my application? This 
proposed section contains information from several sections of subpart 
2808, including section 2808.1, General; 2808.2-1, Application 
categories; 2808.2-2, Category determination; and 2808.3-1, Application 
fees. The major changes contained in this section are discussed in the 
``Cost Recovery Provisions'' section in the GENERAL DISCUSSION portion 
of this preamble. These include: (1) Increasing application processing 
and grant monitoring fees to reflect the reasonable costs of processing 
and monitoring activities, (2) providing a mechanism to adjust these 
fees based on changes in the ``Implicit Price Deflator-Gross Domestic 
Product,'' (3) eliminating the automatic exemption from paying the 
reasonable costs of processing applications and monitoring grants for 
federal agencies, (4) eliminating the 1 per cent of construction costs 
alternative to paying full reasonable processing costs; (5) reducing 
the number of cost recovery categories for both FLPMA and MLA 
applications; and (6) adding a new category, ``master agreement,'' to 
cover multiple applications in a limited geographic area. Otherwise, 
BLM proposes no policy changes except to reword the regulatory 
provisions for clarity.
    Section 2804.16, How will BLM process a Category IV application? 
This new section provides information in one place about Category IV, 
in which BLM recovers the ``full reasonable costs'' of processing 
right-of-way grant applications under FLPMA. Currently, this 
information is scattered throughout several sections of the 
regulations, including 2808.2-1, Application categories; 2808.3-2, 
Periodic advance payments; and 2808.4, Reimbursement of costs for 
monitoring.
    Section 2804.17, What is a master agreement and what does it 
contain? This new section would give information about the proposed new 
category called ``master agreements.'' As described in the ``Cost 
Recovery Provisions'' section in the GENERAL DISCUSSION section of this 
preamble, master agreements are optional but may be of use to 
applicants or grant holders seeking multiple grants in a limited 
geographical area. They are especially useful to developers of oil and 
gas fields. These developers may need many grants to build access 
roads, feeder lines, and pipelines to transport the product(s) from the 
field. This section specifies what information master agreements must 
contain.
    Section 2804.18, Can BLM reduce my reimbursement costs? This 
proposed section contains information about applying for a reduction of 
processing and monitoring costs. The only policy changes from the 
existing regulations are as follows: (1) The proposed section lists the 
``reasonability'' criteria on which you may seek to reduce your 
processing costs, and (2) the proposed section does not use the term 
``waive.'' The term ``reduction'' as used in the proposed rule includes 
a provision for a reduction to zero dollars. All other changes are to 
increase clarity and your ease of finding and using the information 
that you may need in order to seek a reduction of processing and 
monitoring costs.
    BLM believes that this provision needs to be clear, since we are 
eliminating exemptions from processing costs for federal agencies 
except for those exempted by statute. We welcome any comments that you 
may have on ways to streamline the process for determining whether or 
not we should grant your requests for reductions and on the types of 
information needed to adjudicate such applications.
    Section 2804.19, What happens if there are two or more competing 
applications for the same facility or system? This new section 
clarifies how BLM will assess processing costs in situations where 
there is more than one applicant for a facility or system. This 
discussion is separated by category because BLM expects that the first 
three cost categories will not involve costs attributable to more than 
one application.
    Applicants for FLPMA Category IV applications are responsible for 
all reasonable costs identifiable with their applications. For costs 
that cannot be easily identified with a specific application, such as 
the costs of preparing environmental impact statements, all applicants 
will pay an equal share or a proportion agreed to in writing.
    Section 2804.20, How will BLM process my application?, contains a 
customer service standard at proposed paragraph (c). The standard 
states that BLM will process your application for a right-of-way within 
30 working days of receiving it if the application falls within the 
criteria for Categories I through III and if BLM may categorically 
exclude the action from environmental analysis or prepare an 
environmental assessment for it. If BLM cannot process your application 
within 60 working days, a BLM field official will notify you in writing 
and give you an explanation for the delay and an estimated completion 
date. If your application falls within the criteria for Category IV 
application, a BLM field official will notify you in writing and give 
you an estimated completion date. This standard is found in BLM Manual 
Section 2801.35B1g2b(1) and is intended to make us more responsive to 
right-of-way customers.
    Section 2804.23, Do I always have to submit an application to 
receive a right-of-way grant?, is an updated version of current section 
2803.1-3, which describes in detail procedures for competitive leasing. 
BLM proposes to update and streamline that section because it is seldom 
used and contains guidance more appropriate for a Manual section or 
handbook. The current regulation also restricts the use of competitive 
bidding to site-type rights-of-way, and BLM wants to broaden the use of 
competitive bidding to include other situations, such as rights-of-way

[[Page 32120]]

used for emerging technologies. The proposed regulation would broaden 
competitive bidding to increase BLM's flexibility in using it for site-
specific situations.
    Section 2805.10, What does a grant contain? This proposed section 
contains material from the current section 2801.2, Terms and conditions 
of interest granted, and new language concerning hazardous materials 
and adjusting bond amounst. The new language about hazardous materials, 
which appears as terms and conditions of use in paragraph (c), would 
require grant holders to notify the appropriate authorities of actual 
and threatened discharges or releases of hazardous materials, to handle 
hazardous materials in a proper manner and to comply with all liability 
and indemnification requirements and provisions. (See the discussion at 
section 2807.10 of this preamble.) Because BLM believes that preventing 
discharges and releases of hazardous materials into the environment is 
a part of doing business, we propose to expand the language in this 
section.
    The new language concerning BLM's adjustment of bond amounts also 
occurs in paragraph (c) of section 2805.10. Currently all grant holders 
furnish a bond or other security to cover losses, damages, or injury to 
human health, the environment, and property resulting from activities 
on the right-of-way. The proposed provision allows BLM to decrease or 
increase the amount of the bond to reflect changes in the risk 
associated with changed conditions and the grant holder's record of 
complying with the provisions of the grant.
    Section 2805.12, What rights does the grant convey? This proposed 
section contains material from current section 2801.1-1, Nature of 
right-of-way interest, paragraphs (b) through (f) and (k), with no 
proposed regulatory changes. This section describes the rights that the 
grant gives you. They are only the rights expressly contained in the 
grant and do not include any rights that the United States retains. 
Your use of resources within the right-of-way is limited to project and 
facility purposes but includes minor trimming, pruning, and clearing as 
necessary. Your grant is limited to the activities necessary to build, 
operate, maintain, and terminate the authorized project and facilities.
    Section 2805.14, What are monitoring fees? and 2805.15, When do I 
pay monitoring fees? The information about monitoring fees is included 
in these two proposed sections in this subpart. Monitoring fees are 
assessed when BLM issues the grant. Although not a term or condition of 
the grant, payment of monitoring fees is a condition of obtaining the 
grant. The language of proposed section 2805.14, paragraph (b), would 
change if BLM decides to develop and administer monitoring fees and 
categories separately from application processing fees. (See discussion 
under ``Cost Recovery Provisions'' in the GENERAL DISCUSSION section of 
this preamble.) If BLM decides to develop and administer monitoring 
fees and categories separate from the processing fee categories, we 
will repropose the regulations in this section and provide you with an 
opportunity to comment on the proposed categories and fees only if we 
do not adopt the proposal described in the ``Revised Category 
Definitions'' section of the GENERAL DISCUSSION in this preamble.
    Subpart 2806, What information do I need to know about rents for 
right-of-way grants? For a discussion of the major policy changes to 
the sections in this subpart, see the discussion of Rents in the 
GENERAL DISCUSSION section of this preamble. All other changes proposed 
are intended to improve the clarity and readability of the requirements 
for paying rents under FLPMA grants, except for one proposed change. 
This proposed change occurs at section 2806.11, Are there exceptions to 
paying rents? This section describes the circumstances under which 
there are exemptions from paying rents on grants. The Omnibus Parks and 
Public Lands Management Act of 1996, which amended section 504(g) of 
FLPMA, struck out the phrase ``financed pursuant to the Rural 
Electrification Act of 1936, as amended, `` and replaced it with the 
phrase ``eligible for financing pursuant to the Rural Electrification 
Act of 1936, as amended, determined without regard to any application 
requirement under that Act.'' This statutory change has caused some 
large, for-profit utility grant holders to apply for rent reductions 
under FLPMA.
    In mid-1997 the Forest Service sought guidance from the Committee 
on Natural Resources of the U.S. House of Representatives. The 
Committee Chairman, Representative Don Young, responded by letter dated 
October 1, 1997. In his letter, Mr. Young stated that the intent of the 
statutory revision was to exempt all not-for-profit rural electric and 
telephone cooperatives from paying rent on their grants, whether these 
cooperatives had built their facilities with financing from the Rural 
Utility Service or not. Mr. Young further stated that the Committee 
believed that rural and electric cooperatives filled an essential need 
by providing electric and telephone service in areas of difficult 
terrain and low customer density. Based on this information, BLM 
believes that the exemption from paying rents does not apply to all 
utility holders, just those who can document their non-profit status as 
defined in the Internal Revenue Code at section 501(c)(3).
    BLM therefore proposes to amend the existing provision at section 
2803.1-2(b)(1)(iii) to include non-profit electric and telephone 
cooperatives that built facilities financed by or eligible for 
financing from the Rural Utility Service. The revised text, at 
paragraph (b) of proposed section 2806.11, would read: ``The facilities 
constructed on the right-of-way were constructed with funds from the 
Rural Electrification Act of 1936, as amended (REA), or are non-profit 
rural electric or telephone cooperative facilities eligible for REA 
financing; or are extensions of such facilities.''
    Section 2806.14, What are the rent costs for linear rights-of-way? 
would make one change to existing policy. Current policy states that 
BLM will use the rent schedule for linear grants unless the grant meets 
two criteria: the land value exceeds the area's value by at least a 
factor of 10 and the expected rent is sufficient to warrant a separate 
appraisal. Some linear uses of rights-of-way have a significant value 
that is not related to land value. In these cases, the value comes from 
the type of use. Because the criteria require both factors to be met 
before BLM considers rent separately from the rent schedule, we must 
currently use the rent schedule for these uses. Having to use the rent 
schedule for these grants prevents us from collecting their fair market 
value. If we could use other methods to determine rent for these 
grants, we could collect fair market value, as required by FLPMA. We 
therefore propose to separate the factors that we will use to determine 
when not to use the linear rent schedule. See the language in the 
current regulations at section 2803.1-2(c)(v)(A), and compare with the 
proposed regulations at section 2806.14(a)(1).
    Section 2807.12, For what am I liable?, contains the material in 
the current regulations at section 2803.1-5, Liability. It contains new 
language in two areas: (1) the maximum limit on the amount of damages 
would rise from $1 million to $5 million, and (2) there would be no 
maximum limitation on strict liability resulting from damages or 
injuries caused by hazardous substances or as allowed by law. See the 
discussion under ``Hazardous materials'' in the GENERAL DISCUSSION 
section of this preamble.

[[Page 32121]]

    Section 504(h) of FLPMA gives the Secretary of the Interior the 
authority to promulgate regulations specifying the extent to which 
right-of-way holders are liable to the United States for damages or 
injuries resulting from occupying or using a right-of-way grant. The 
provision further states that the regulation must include a maximum 
limitation on damages comparable to the foreseeable risks and hazards 
presented. Current regulations, promulgated in July 1980, set the limit 
at $1 million. The proposed regulations would raise the limit to $5 
million, owing to inflation and other factors.
    The liability limit does not apply to damages or injuries resulting 
from the discharge or release of hazardous substances as defined by 
CERCLA of otherwise allowed by law. The Federal Court of Appeals in 
United States v. Chromalloy American Corporation, 158 F.3d 345, 350 
(5th Cir. 1998), recently cited CERCLA for the proposition that 
``notwithstanding any other provision of law, a private party will 
reimburse the United States for all costs incurred.'' The court held 
that CERCLA establishes a federal action in strict liability that 
allows administrators to recover damages quickly and does not place 
limits on liability. CERCLA preempts the liability cap established by 
FLPMA for hazardous substances only.
    Eliminating the liability cap for hazardous substances also aligns 
with BLM's policy of having the polluter pay. A grant holder is fully 
liable for all clean-up and restoration costs, damages, fees, and 
penalties assessed against the holder's storing or using hazardous 
substances in developing, relinquishing, or using the right-of-way, 
regardless of fault.
    Section 2807.13, What liabilities do state and local governments 
have? requires state and local governments or their agencies to furnish 
a bond to protect the liability exposure of the United States from 
claims by third parties.
    Section 2807.20, May I assign my grant? contains the same customer 
service standard for processing time as that of applications for 
grants. This standard is adopted from BLM Manual Section 
2801.35B1g2b(1) and estimates the processing time as 30 working days 
for applications which do not require extensive administrative work. If 
processing an application for assignment takes more than 60 days, BLM 
will notify you in writing, explain the reason for the delay, and give 
an estimated processing time.
    Section 2807.21, What will BLM charge me to review a request for 
assignment? BLM proposes to charge processing fees for assignments, 
based on the category of the application, rather than the flat fee 
currently charged. For this reason, the section contains a brief 
statement of the way in which we will charge fees. The fee would be 
charged based on the number of work hours involved in processing the 
assignment. Generally, the work involves adjudicating the prospective 
assignee's qualifications to hold the grant; visiting the project site 
to determine the status of the project and whether or not operations 
are in compliance with applicable statutes, regulations, and the terms 
and conditions of the grant; and preparing the necessary legal 
paperwork. BLM would estimate the work hours involved in these 
activities, consult the schedule for the appropriate number of hours, 
and charge accordingly. (See the discussion at the ``Assignments and 
Renewals'' section under the GENERAL DISCUSSION in this preamble.)
    Section 2807.22, Can I renew my grant? The proposed section 
contains material from existing section 2803.6-5. Note that the 
reference to ``temporary use permits'' has been eliminated because BLM 
proposes to eliminate temporary use permits for rights-of-way issued 
under FLPMA and replace them with short-term grants. The same customer 
service standard for processing times would apply to applications for 
renewal as to new applications.
    Subpart 2808, What do I need to know about trespass? This proposed 
subpart contains material currently found at Section 2801.3. The first 
section, 2808.10, What is trespass?, briefly describes the term. The 
next section, 2808.11, What will BLM do if it determines that I am in 
trespass?, describes your liability if BLM determines that you are in 
trespass. Liability includes monetary damages and rehabilitating, 
restoring, and stabilizing any damaged areas. It also describes the 
penalties that BLM may assess. Section 2808.12, May I receive a grant 
if I am in trespass?, states that you should apply to BLM to determine 
whether BLM will authorize your unauthorized use.
Part 2880
    This proposed part describes provisions relating to grants issued 
under the Mineral Leasing Act. Holders of these grants operate and 
maintain oil and natural gas pipelines and related facilities which 
have rights-of-way through public lands. This part summarizes or cross 
references information found at part 2800 and highlights those 
provisions which are peculiar to oil and natural gas pipeline systems 
and facilities. BLM intends that the summary will provide readers with 
enough information to determine whether they need to consult part 2800 
for additional detail.
    Section 2881.5, What definitions do I need to know to understand 
these regulations? This proposed section starts a new part and contains 
material relating to terms used in connection with grant holders whose 
grants BLM issued under the terms of the MLA. These grant holders 
operate and maintain oil and natural gas pipelines and related 
facilities which use right-of-way corridors through public lands.
    The proposed regulations in this section generally retain the 
definitions found in the current regulations at section 2880.0-5. Major 
differences between the definitions in proposed section 2800.5 and this 
proposed section are the lands covered by the grant, ``federal lands,'' 
and terms related to the oil and gas resources and the pipeline 
facilities for transporting them, that is, ``production facilities'' 
and ``related facilities.'' Other definitions should be identical, 
however; and introductory language refers you to the definitions in 
part 2800.
    Section 2881.7, What is the scope of these regulations? The 
definitions section defines the term ``production facilities.'' 
Paragraph (b) clarifies that the only facilities which require a grant 
on an oil and gas lease are those that are both owned by a third party 
and are downstream of storage tanks or a metering device.
    Proposed Section 2881.9, Does BLM have the authority to ask me for 
the information required in these regulations?, describes the 
information collection requirements related to grants and temporary use 
permits connected with oil and natural gas pipelines and their related 
facilities. This would be a new section and would comply with the 
Office of Management and Budget's guidelines concerning the reporting 
requirements for regulations to comply with the provisions of the 
Paperwork Reduction Act of 1995.
    Section 2881.10, Severability. This new section is a counterpart to 
proposed section 2801.1. It applies the legal principle of 
``severability'' to the regulations in this part. The principle has 
always been true of these regulations but would be stated here for 
clarity and understanding.
    Subpart 2882, What lands are available for MLA grants and permits?. 
This proposed subpart is a summary of the information presented at 
subpart 2802. It has no counterpart in the current regulations at part 
2880. BLM

[[Page 32122]]

uses its planning process to make decisions about land uses and 
restrictions on their use, including decisions on whether to allow 
pipeline corridors through federal lands in particular locations.
    Subpart 2883, What qualifications do I need to hold an MLA grant or 
permit?, describes the qualifications that entities need in order to be 
issued and to hold a grant or permit under the Mineral Leasing Act 
(MLA). These qualifications are given in the MLA and repeated in the 
current regulations at 43 CFR 2882.2-1. The proposed regulations make 
no changes except for rewording the material into plainer language.
    Section 2884.19, How will BLM process my application?, applies the 
same customer service standard to processing applications for MLA 
grants as for FLPMA grants. This standard states that, for Category I 
through III applications, BLM will process your application within 30 
working days of receiving it. If BLM cannot process the application 
within 60 working days, a BLM field official will provide you with a 
written explanation of the delay and an estimated completion time for 
processing the application. If you have a Category IV application, BLM 
will provide you with a written estimate of the estimated processing 
time.
    Subpart 2885, What are the terms and conditions of MLA right-of-way 
grants and permits?. This subpart describes those terms and conditions 
which are specific to MLA grants and permits. BLM is retaining the term 
``temporary use permit'' for MLA rights-of-way because the statute 
specifically refers to these instruments. Proposed section 2885.12, 
What are the terms and conditions of the grant or permit? cross 
references section 2805.12 for terms and conditions common to both 
types of grants. Proposed paragraph (b) describes those conditions 
specific to these types of grants and permits: restrictions on 
exporting domestically produced crude oil and on pipeline diameters and 
requirements to use the pipeline as a common carrier.

IV. Procedural Matters

    The principal authors of this proposed rule are Ted Bingham, 
Arizona State Office; Priscilla McLain, Oregon State Office; Ron 
Montagna, Washington Office; and Bil Weigand, Idaho State Office, with 
the assistance of staff from the Regulatory Affairs Group. The authors 
considered the following requirements in preparing the proposed rule:

National Environmental Policy Act

    BLM has prepared an environmental assessment (EA) and found that 
the proposed rule would not constitute a major federal action 
significantly affecting the quality of the human environment under 
section 102(2)(C) of the National Environmental Policy Act of 1969, 42 
U.S.C. 4332(2)(C). BLM has placed the EA and the Finding of No 
Significant Impact (FONSI) on file in the BLM Administrative Record at 
the address previously specified. BLM invites the public to review 
these documents by contacting us at the address listed above (see 
ADDRESSES) and suggests that anyone wishing to comment in response to 
the EA and FONSI do so in accordance with the Written Comments section 
above or contact us directly.

Paperwork Reduction Act

    BLM has submitted an information collection package to the Office 
of Management and Budget for its approval of the information 
requirements contained in subparts 2802, 2803, 2805, 2806, 2882, 2883, 
and 2884 of the proposed rule under the requirements of the Paperwork 
Reduction Act, 44 U.S.C. 3501 et seq. Proposed changes in the 
regulations may increase processing and monitoring fees for all 
applicants subject to cost recovery fees for grants and could increase 
the number of applicants seeking a reduction of processing and 
monitoring fees. BLM expects the public reporting burden of these 
proposed regulations to be as follows: preparing Plans of Development, 
40 hours per response; negotiating master agreements, 30 hours per 
response; providing maps of projects, one-half hour per response; 
providing detailed ``as built'' maps, 8-16 hours per response for 
Category I through III applications and 120 hours per response for 
Category IV applications; providing BLM with copies of certificates, 
permits, and approvals from other agencies, one-half hour per response; 
getting copies of location maps from state and local governments, one-
half hour per response; applying for processing cost reductions, 2.5 
hours per response; and providing information about multiple tenants at 
communication site grants, 1 hour per response. These estimates include 
the time for reviewing instructions, searching existing data sources, 
gathering and maintaining the data needed, and completing and reviewing 
the collection of information.
    We specifically request your comments on: (1) whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information will 
have practical utility; (2) the accuracy of BLM's estimate of burden of 
the proposed collection, including the validity of the methodology and 
assumptions used; (3) ways to enhance the quality, utility and clarity 
of the information to be collected; and (4) ways to minimize the burden 
of the collection of information on those who are to respond, including 
the use of appropriate automated, electronic, mechanical, or other 
technological collection techniques or other forms of information 
technology. BLM will receive and analyze any comments sent in response 
to this notice and include them in preparing the final rule.
    Send comments regarding this information collection, including 
suggestions for reducing the burden, to: Office of Management and 
Budget, Interior Desk Officer (1004-NEW) or (1004-0060), Office of 
Information and Regulatory Affairs, Washington, D.C. 20503, and 
Information Collection Clearance Officer (WO-630), Bureau of Land 
Management, 1849 C St., N.W., Mail Stop 401 LS, Washington, D.C. 20240.

Regulatory Flexibility Act

    Congress enacted the Regulatory Flexibility Act of 1980 (RFA), 5 
U.S.C. 601, to ensure that government regulations do not unnecessarily 
or disproportionately burden small entities. The RFA requires a 
regulatory flexibility analysis if a rule would have a significant 
economic impact, either beneficial or detrimental, on a substantial 
number of small entities.
    BLM has determined under the RFA that this proposed rule would not 
have a significant impact on a substantial number of small entities. 
Current data collection categories do not allow us to determine who 
among the grant holders is a small business; therefore, we have no 
accurate data on the number of small entities affected by these 
regulations. The proposed processing and monitoring fees would increase 
for all applicants and grant holders, including small businesses. This 
fee increase may increase the number of applicants seeking reductions 
of recoverable costs, including small businesses.
    In the past, small entities may have qualified for reductions under 
the criteria. Small businesses which would be adversely affected by the 
increased processing and monitoring fees could apply for reductions on 
a case-by-case basis; and, in those cases where they qualified, could 
get them. Increases in the categories most likely to affect small

[[Page 32123]]

businesses--Categories I and II--are 83 percent and 30 percent 
respectively (processing costs) and 60 percent and 73 percent 
(monitoring costs) for FLPMA applications and 60 percent and 5 percent 
(processing costs) and 280 percent and 200 percent (monitoring costs) 
for MLA applications respectively. Even if, under the proposed rules, 
small entities do not qualify for exemptions, the fee increases for the 
categories for which they would most likely apply are the lowest 
processing fees assessed: $230 and $390 (processing costs) and $80 and 
$130 (monitoring costs) for FLPMA applications and $200 and $290 
(processing costs) and $70 and $100 (monitoring costs) for MLA 
applications.
    BLM considered eliminating the current automatic exemptions from 
paying FLPMA processing and monitoring costs for all governmental 
entities--federal, state, and local--as a means of recovering more of 
the costs or processing applications and monitoring issued grants. 
Analyses of applicants and right-of-way holders indicate, however, that 
state and local governments constitute in total less than 10 percent of 
all current applicants. Based on economic return alone, eliminating the 
automatic exemption for these entities is not warranted. Further, many 
local governments that are affected by BLM regulations qualify as small 
entities under the RFA. Eliminating the automatic exemption for local 
governments could increase their operating costs by requiring them to 
apply for a reduction of processing and monitoring costs without any 
corresponding overall public benefit.
    BLM therefore proposes to retain the automatic exemption for state 
and local governments but to charge federal agencies for cost recovery 
if those federal agencies are not exempted by law from paying 
processing and monitoring fees. We propose to eliminate the automatic 
exemption for federal agencies because many already pay these costs 
through interagency agreements with BLM and because there would be 
greater uniformity of charges to the federal agencies.

Unfunded Mandates Reform Act

    The proposed rule will not result in any unfunded mandate to any 
state, local or tribal government in the aggregate, or to the private 
sector, of $100 million or more in any one year. The proposed 
regulations would pose no additional burdens on these governmental 
entities, as the exemptions from paying processing and monitoring fees 
for state and local governments would remain, and so would the 
procedures for processing applications and monitoring grants.

Executive Order 12612

    The proposed rule will not have a substantial direct effect on 
states, on the relationship between the national government and the 
states, or on the distribution of power and responsibilities among the 
various levels of government. The elements which this rule proposes to 
change--principally, increased processing and monitoring costs--do not 
have sufficient federalism implications to warrant preparing a 
federalism assessment.

Executive Order 12630

    The proposed rule does not represent a government action capable of 
interfering with constitutionally protected property rights. Section 
2(a)(1) of EO 12630 specifically exempts actions abolishing regulations 
or modifying regulations in a way that lessens interference with 
private property uses from the definition of ``policies that have 
takings implications.'' The proposed rule was written with the intent 
not to increase the regulatory burden on the regulated public. The 
regulations only apply to public and federal lands over which BLM has 
jurisdiction and do not change the terms and conditions of existing 
grants and temporary use permits. Therefore, the proposed rule will 
impair no private property rights. The Department of the Interior has 
determined that the rule would not cause a taking of private property, 
or require further discussion of takings implications under this EO.

Executive Order 12866

    The proposed rule would not cause economic impacts of $100 million 
or more per year, does not propose any novel policy changes, cause 
significant sectoral impacts, or conflict with any other regulations. 
Although the proposed rule is not ``significant,'' as defined under EO 
12866, the rule is important because it provides the public with 
information about a needed and wanted service: the use of public lands 
for right-of-way purposes, when there is no choice as to the provider, 
BLM. At a maximum, the proposed changes have an economic impact of 
approximately $12 million annually, as described in this section.
    Section 304 of the Federal Land Policy and Management Act allows 
the Secretary of the Interior to charge ``reasonable filing and service 
fees and reasonable charges and commissions with respect to 
applications and other documents relating to the public lands.'' 
Section 28(f) of the Mineral Leasing Act requires applicants for oil 
and gas pipeline rights-of-way to reimburse the United States for the 
administrative and other costs, i.e., ``actual costs,'' of monitoring 
activities under their grants.
    The estimated maximum increase in fees generated by the proposed 
regulations is $2.7 million annually. Entities adversely affected by 
these increases may qualify for fee reductions, in some cases to no 
fees. Those entities already granted fee reductions will retain their 
reductions for future applications. Those entities exempted by law from 
paying processing and monitoring fees will continue to be exempted. For 
those having to pay, the proposed processing fee increases range from 6 
to 114 percent ($15 to $400), with an overall average of $148. The 
proposed monitoring fee increases range from 60 to 313 percent ($30 to 
$265), with an overall average of $81.
    On a percentage basis, the monitoring fee increases proposed are 
higher than the proposed processing fee increases. The higher 
percentage increase results from several factors: (1) when BLM 
established the current monitoring fees, it did not have accurate data 
about the costs of constructing, operating, and terminating facilities 
within right-of-way grants; and (2) the policy that BLM uses to charge 
for monitoring fees does not reflect changes in resources present in 
the right-of-way over time. For example, BLM's policy is that the 
processing category of the application determines the category of the 
monitoring fee. An application that required minimal processing time 
might require considerably more time to monitor if an endangered 
species moved into the grant area. Using the same processing and 
monitoring fee categories would result in a revenue loss. We are 
therefore requesting comments on whether to continue the practice of 
having the processing category determine the monitoring fee category.
    Statutory language in the Omnibus Parks and Land Management Act of 
1996 could adversely affect the rent revenue by increasing the number 
of facilities exempt from paying rent. Section 504(g) of the Federal 
Land Policy and Management Act (FLPMA) specifies that rents for rights-
of-way are equivalent to the fair market value of the grant and that 
the Secretary of the Interior may charge less rent to federal agencies, 
state and local governments, and non-profit associations and 
coporations not owned by profit-making associations, especially those 
non-profit associations financed with funds from

[[Page 32124]]

the Rural Electrification Act of 1936, as amended (REA). The Omnibus 
Act changed FLPMA's statutory language from ``financed pursuant to the 
Rural Electrification Act of 1936, as amended,'' to ``eligible for 
financing pursuant to the Rural Electrification Act of 1936, as 
amended, determined without regard to any application requirement under 
the Act.''
    The impact of this change could range economically from minimal to 
the loss of BLM's entire annual rental revenue, $9.5 million in fiscal 
year 1998, depending on what ``eligible for financing pursuant to the 
Rural Electrification Act'' means. Unlike processing and monitoring 
fees, which return to the BLM offices administering the right-of-way 
program, rent payments are deposited into the general revenues of the 
U.S. Treasury. Their loss would deprive the federal government and the 
general public of money which could be used for public purposes. BLM 
has adopted the position of Chairman Don Young of the Committee on 
Natural Resources on the meaning of the phrase ``eligible for REA 
financing.'' Chairman Young stated in a letter to the U.S. Forest 
Service that the intent of the language was to exempt all not-for-
profit rural electric and telephone cooperatives from paying rent on 
their right-of-way grants, whether or not these cooperatives had built 
their facilities with financing from the Rural Utility Service. (The 
Rural Utility Service is the federal agency that implements the REA.) 
Chairman Young did not intend that large, for-profit corporations, 
which build facilities eligible for REA financing, be able to get rent 
reductions. (See the preamble discussion at section 2806.11, Are there 
exceptions to paying rents?, for a discussion of this point.)
    Other proposed regulatory revisions clarify existing right-of-way 
regulations pertaining to determining rents for communication site 
rights-of-way but have no direct economic effects. The clarifications 
do not propose new or novel policies relating to communication site 
rights-of-way or increase the rent amounts.
    Executive Order 12866 requires each agency to write regulations 
that are easy to understand. We invite your comments on how to make 
this proposed rule easier to understand, including answers to questions 
such as the following: (1) Are the requirements in the proposed rule 
clearly stated?; (2) Does the proposed rule contain technical language 
or jargon that interferes with its clarity?; (3) Does the format of the 
proposed rule (grouping and order of sections, use of headings, 
paragraphing, etc.) aid or reduce its clarity?; (4) Would the rule be 
easier to understand if it were divided into more but shorter sections? 
(A ``section'' appears in bold type and is preceded by the symbol 
``Sec. '' and a numbered heading; for instance, Sec. 2803.10, Who can 
hold a grant?); and (5) Is the description of the proposed rule in the 
``supplementary information'' section of this preamble helpful in 
understanding the proposed rule? What else could we do to make the 
proposed rule easier to understand?
    Send a copy of any comments that concern how we could make this 
proposed rule easier to understand to: Office of Regulatory Affairs, 
Department of the Interior, Room 7229, 1849 C St., NW, Washington, D.C. 
20240. You may also e-mail the comments to: E[email protected].

Executive Order 12988

    The Department of the Interior has determined that this rule meets 
the applicable standards provided in section 3(a) and 3(b)(2) of the 
order.

List of Subjects

43 CFR Part 2800

    Communications, Electric power, Highways and roads, Penalties, 
Public lands and rights-of-way, and Reporting and recordkeeping 
requirements.

43 CFR Part 2880

    Administrative practice and procedures, Common carriers, Pipelines, 
Public lands rights-of-way, and Reporting and recordkeeping 
requirements.

    Dated: May 4, 1999.
Sylvia V. Baca,
Acting Assistant Secretary, Land and Minerals Management
    For the reasons set out in the preamble and under the authority of 
the Federal Land Policy and Management Act, 43 U.S.C. 1701 et seq.; the 
Mineral Leasing Act of 1920, as amended, 30 U.S.C. 181 et seq.; and the 
Secretary's enforcement powers, BLM proposes to revise parts 2800 and 
2880 of Title 43 of the Code of Federal Regulations as follows:
    1. Revise part 2800 to read as follows:

PART 2800--RIGHTS-OF-WAY, PRINCIPLES AND PROCEDURES

Subpart 2801--What General Information Do I Need To Know About the 
Right-of-Way Program?

Sec.
2801.5  What definitions do I need to know to understand these 
regulations?
2801.7  What is the scope of these regulations?
2801.8  Are any rights-of-way outside the scope of these 
regulations?
2801.9  Does BLM have the authority to ask me for the information 
required in these regulations?
2801.10  Severability

Subpart 2802--What Lands Are Available for Right-of-Way Grants?

2802.10  What lands are available for right-of-way grants?
2802.11  How does BLM designate corridors?

Subpart 2803--What Qualifications Must I Meet To Get a Right-of-Way 
Grant?

2803.10  Who can hold a grant?
2803.11  Must I submit proof of qualifications with my application?
2803.12  Can other people act in my behalf?
2803.13  What happens to my grant if I die?

Subpart 2804--How Do I Apply for a Right-of-Way Grant?

2804.10  What should I do before I file my application?
2804.11  Where do I file my application?
2804.12  What information do I need to submit in my application?
2804.13  Will BLM keep my information confidential?
2804.14  Is there a filing fee for my application?
2804.15  Am I exempt from paying cost recovery charges?
2804.16  How will BLM process my Category IV application?
2804.17  What is a master agreement and what does it contain?
2804.18  Can BLM reduce my reimbursement costs?
2804.19  What happens if there are two or more competing 
applications for the same facility or system?
2804.20  How will BLM process my application?
2804.21  Can BLM reject my application?
2804.22  Do I owe any money if BLM rejects my application or if I 
withdraw my application?
2804.23  Do I always have to submit an application for a right-of-
way to receive a grant?
2804.24  Do I have to pay the costs of processing BLM rights-of-way 
associated with Federal Energy Regulatory Commission (FERC) 
licenses?
2804.25  What can I do on the proposed right-of-way while BLM is 
processing my application?

Subpart 2805--What Terms and Conditions Do Grants Contain?

2805.10  What does a grant contain?
2805.11  When is the grant effective?
2805.12  What rights does the grant convey?
2805.13  What rights does the United States retain?
2805.14  What are monitoring fees?
2805.15  When do I pay monitoring costs?

[[Page 32125]]

Subpart 2806--What Information Do I Need To Know About Rents for Right-
of-Way Grants?

2806.5  What definitions do I need to know to understand these 
regulations?
2806.10  Must I pay rent for using my right-of-way?
2806.11  Are there exceptions to paying rents?
2806.12  Can my rent be reduced?
2806.13  What happens if I default on my rent payment?
2806.14  What are the rent costs for linear rights-of-way?
2806.15  Does the linear rent schedule ever change?
2806.16  How will BLM calculate my rent for linear rights-of-way 
covered by the schedule?
2806.17  What are the rent costs for communication facilities or 
uses?
2806.18  How does BLM calculate rent for communication uses?
2806.19  How will BLM determine the rent for a single-use 
communication facility?
2806.20  How will BLM calculate the rent for a multiple use 
communication facility?
2806.21  How will BLM calculate rent for private mobile radio 
service (PMRS), internal microwave and ``other'' category uses?
2806.22  How will BLM authorize and calculate rent for customers and 
tenants who choose to have their own right-of-way facility to be 
used in common with an existing right-of-way of the owner of a 
communication facility that they use or occupy?
2806.23  How will BLM calculate rents as to ``shared facilities'' or 
for multiple facilities that are under one authorization?
2806.24  How does BLM calculate rent for a facility manager use?
2806.25  How does BLM calculate rent for ancillary uses?
2806.26  How does BLM calculate rent for uses within federally owned 
facilities?
2806.27  What happens if converting to the rent schedule causes a 
$1,000 or more increase in my rent?
2806.28  What are the rent costs for other rights-of-way and uses?

Subpart 2807--What Can I do on the Right-of-Way Once BLM Issues the 
Grant?

2807.10  When can I start activities under my grant?
2807.11  When must I contact BLM?
2807.12  For what am I liable?
2807.13  What liabilities do state and local governments have?
2807.14  What happens if BLM transfers management of the land on 
which my grant is located to another federal agency or outside of 
public ownership?
2807.15  Can BLM temporarily suspend my activities to protect public 
health and safety or the environment without providing an 
administrative hearing?
2807.16  Can BLM terminate or suspend my grant?
2807.17  How will I know that BLM intends to suspend or terminate my 
grant?
2807.18  What happens to any improvements on my grant when it 
terminates?
2807.19  When must I amend my application or grant?
2807.20  May I assign my grant?
2807.21  What will BLM charge to review a request for assignment?
2807.22  Can I renew my grant?

Subpart 2808-- What Do I Need To Know About Trespass?

2808.10  What is trespass?
2808.11  What will BLM do if it determines that I am in trespass?
2808.12  May my trespass use be authorized?

Subpart 2809--Are There any Special Requirements Relating to Grants 
Issued to Federal Agencies?

2809.10  Can federal agencies get a right-of-way grant?
2809.11  What will the grant contain?
2809.12  Can BLM suspend or terminate the grant?

    Authority: 43 U.S.C. 1733, 1734(b), 1740 and 1761--1762.

Subpart 2801--What General Information Do I Need To Know About the 
Right-of-Way Program?


Sec. 2801.5  What definitions do I need to know to understand these 
regulations?

    As used in this part, the term:
    (a) Act means the Federal Land Policy and Management Act of 1976, 
43 U.S.C. 1701 et seq.
    (b) Casual use means activities and practices which do not 
ordinarily cause any appreciable disturbance or damage to the public 
lands, resources, or improvements, and which do not require a right-of-
way grant under this title. Example: activities which do not involve 
the use of explosives or heavy equipment or vehicle movement, except 
over already established roads and trails.
    (c) Designated right-of-way corridor means a linear or areal parcel 
of land identified by law, Secretarial order, the land-use planning 
process or other management decision, as being a preferred location for 
existing and future rights-of-way and suitable to accommodate more than 
one right-of-way.
    (d) Discharge has the meaning found at 33 U.S.C. 1321(a)(2) of the 
Clean Water Act.
    (e) Facility means an improvement constructed or to be constructed 
or used or to be used within a right-of-way grant. For purposes of 
communication site rights-of-way or uses, facility means the building, 
tower and/or other related incidental improvements authorized under 
terms of the right-of-way grant or lease.
    (f) Field examination generally means a one-day trip, in one 
vehicle, from the office to the site of the right-of-way proposal, 
regardless of the number of specialists traveling in the vehicle. When 
operational efficiency dictates separate trips, BLM will include the 
efficient use of hourly time required to verify or collect the data 
needed to process the application, or monitor the grant.
    (g) Grant means any authorization or instrument (easement, lease, 
license, or permit) issued by BLM pursuant to Title V of the Federal 
Land Policy and Management Act, 43 U.S.C. 1761 et seq., or the Mineral 
Leasing Act, 30 U.S.C. 185.
    (h) Hazardous material means:
    (1) Any substance or material defined as hazardous under the 
Comprehensive Environmental Response, Compensation, and Liability Act 
at 42 U.S.C. 9601(14);
    (2) Any regulated substance contained in or released from 
underground storage tanks, as defined by the Resource Conservation and 
Recovery Act at 42 U.S.C. 6991 et seq.;
    (3) Oil, as defined by the Clean Water Act at 33 U.S.C. 1321(a) and 
the Oil Pollution Act at 33 U.S.C. 2701 et seq.; or
    (4) other substances defined and regulated as ``hazardous'' by 
applicable federal, state, or local law.
    (i) Holder means any entity with a right-of-way authorization from 
BLM.
    (j) Project means the transportation or other system which the 
right-of-way authorizes.
    (k) Public lands means any land or interest in land owned by the 
United States within the several states and administered by the 
Secretary of the Interior through BLM without regard to how the United 
States acquired ownership, except:
    (1) Those lands located on the Outer Continental Shelf, and
    (2) Lands held in trust for the benefit of Indians, Aleuts and 
Eskimos.
    (l) Release has the meaning found at 42 U.S.C. 9601(22) of the 
Comprehensive Environmental Response, Compensation, and Liability Act.
    (m) Right-of-way means the public lands authorized to be used or 
occupied by a right-of-way grant.
    (n) Temporary use means a short-term right-of-way grant that 
authorizes a revocable, nonpossessory privilege to use specified public 
lands in connection with constructing, operating, maintaining or 
terminating an associated right-of-way project.
    (o) Transportation and utility corridor means a parcel of land, 
without fixed

[[Page 32126]]

limits or boundaries, that is used as the location for one or more 
transportation or utility rights-of-way.
    (p) Unnecessary and undue degradation means surface disturbance 
that is greater than that which would occur when the same or a similar 
activity is being done by a prudent person in a usual, customary, and 
proficient manner that considers the effects of the activity on other 
resources and land uses outside the area of the activity. This 
disturbance may be either willful or nonwillful.


Sec. 2801.7  What is the scope of these regulations?

    The regulations in this part apply to:
    (a) Issuing, administering, amending, assigning, renewing, and 
terminating right-of-way grants for necessary transportation or other 
systems and facilities which require the use of public lands identified 
in 43 U.S.C. 1761, and which are in the public interest;
    (b) Federal agency applications for transporting oil, natural gas, 
synthetic liquids, or gaseous fuels, and any refined products produced 
from them; and
    (c) Rights-of-way issued on or before October 21, 1976, under then 
existing statutory authority, to the extent that these regulations do 
not diminish or reduce any rights conferred by the grant or the statute 
under which they were issued. Where there is a reduction, the grant or 
enabling statute will apply instead of these regulations.


Sec. 2801.8  Are any rights-of-way outside the scope of these 
regulations?

    Yes. The regulations in this part do not apply to right-of-way 
grants for:
    (a) Federal Aid highways, for which Federal Highway Administration 
procedures apply;
    (b) Reciprocal and cost share road use agreements, for which 
subpart 2812 of this chapter applies;
    (c) Lands within wilderness areas, although some uses may be 
authorized under parts 2920 and 8560 of this chapter; and
    (d) Oil, natural gas, synthetic liquid or gaseous fuels, or any 
refined product produced from these materials, unless applied for by 
Federal agencies, for which part 2880 of this chapter applies.


Sec. 2801.9  Does BLM have the authority to ask me for the information 
required in these regulations?

    (a) Yes. The Office of Management and Budget has approved the 
information collection requirements contained in Part 2800 under 44 
U.S.C. 3507 and has assigned them clearance numbers of 1004-0060 (for 
Form SF-299) and 1004-______ for the remainder of the requirements. BLM 
uses this information to determine if using the public lands for right-
of-way grants is appropriate. You must respond to obtain a benefit.
    (b) BLM estimates that the public reporting burden for this 
information is as follows: 2 hours per response to fill out Form SF-
299; 16 hours per response to prepare Plans of Development; 30 hours 
per response to negotiate master agreements; one-half hour per response 
to prepare a project map; one-half hour per response to supply BLM with 
copies of approved certificates and permits from other agencies and 
location maps from state and local governments; 2.5 hours per response 
to apply for cost reductions; and one hour per response to supply 
information about tenants at multiple use communication sites. These 
estimates include the time for reviewing instruction, searching 
existing data sources, gathering and maintaining the data needed and 
completing the collection of information.
    (c) Send comments regarding this burden estimate or any other 
aspect of this collection to the Information Collection Clearance 
Officer, Bureau of Land Management, 1849 C St., N.W., Mail Stop 401 LS, 
Washington, D. C. 20240.


Sec. 2801.10  Severability.

    If any provisions of the rules in this part or their applicability 
to any person or circumstances are held invalid, the remainder of these 
rules and their applicability to other people or circumstances shall 
not be affected.

Subpart 2802--What Lands Are Available for FLPMA Rights-of-Way?


Sec. 2802.10  What lands are available for FLPMA rights-of-way?

    (a) BLM may grant new rights-of-way on lands under its 
jurisdiction, except where they are specifically excluded or restricted 
by statute, regulation, planning, environmental, or other resource 
concerns.
    (b) BLM may require common use of a right-of-way and may require, 
to the extent practical, location of new rights-of-way within existing 
or designated corridors. BLM designates corridors, as well as exclusion 
or avoidance areas, through the land-use planning process described at 
part 1610 of this chapter, and informs the public of designated 
corridors by appropriate means.
    (c) You should contact the BLM office nearest to you to determine 
whether or not the land you want to use is available and to begin 
discussions about any application you may need to file.


Sec. 2802.11  How does BLM designate corridors?

    BLM determines the locations and boundaries of right-of-way 
corridors after reviewing:
    (a) Federal, state and local land-use plans, and applicable federal 
and state laws;
    (b) Environmental impacts on natural and cultural resources;
    (c) Physical effects and constraints on placing corridors due to 
geology, hydrology, meteorology, soil, or land forms;
    (d) Costs of construction, operation and maintenance and costs of 
modifying or relocating existing facilities in a proposed corridor, 
i.e., the economic efficiency of placing a right-of-way corridor;
    (e) Risks to national security;
    (f) Potential health and safety hazards imposed on the public by 
facilities or activities located within the right-of-way corridor;
    (g) Social and economic impacts of the corridor on public land 
users, adjacent landowners, and other groups or individuals;
    (h) Transportation and utility corridor studies developed by user 
groups;
    (i) Engineering and technological compatibility of proposed and 
existing facilities; and
    (j) Existing transportation and utility corridors that are capable 
of accommodating additional compatible uses without further review.

Subpart 2803--What Qualifications Must I Meet To Get a Right-of-Way 
Grant?


Sec. 2803.10  Who can hold a grant?

    You may hold a grant if you are an individual, group, association, 
corporation, partnership, or similar entity and if you:
    (a) Are legally capable of holding an interest in real estate, and
    (b) Can show that you are economically and technically capable of 
constructing, operating, and maintaining the proposed facilities.


Sec. 2803.11  Must I submit proof of my qualifications with my 
application?

    Yes. If you are a partnership, corporation, association, or other 
legal entity, you must submit:
    (a) Copies of the formal documents creating the relationship, such 
as papers of incorporation, and
    (b) Evidence that the party signing the application has the 
authority to bind the applicant.

[[Page 32127]]

Sec. 2803.12  Can other people act on my behalf?

    Only to the extent that you have formally, in writing, and legally 
given the person authority to do so.


Sec. 2803.13  What happens to my grant if I die?

    It depends on the situation. If your grant contains a provision for 
this situation, the grant provision applies. Otherwise, the new owner 
(heir) must apply to BLM for an assignment of the grant, and BLM must 
approve the assignment. (See Sec. 2807.19)

Subpart 2804--How Do I Apply for a Right-of-Way Grant?


Sec. 2804.10  What should I do before I file my application?

    Before filing an application with BLM, you are strongly encouraged 
to visit or telephone the BLM field office having jurisdiction over the 
lands affected by your application to identify potential constraints, 
determine whether or not the lands are located within a designated or 
existing right-of-way corridor and tentatively schedule the processing 
of your application. BLM may share this information with federal, 
state, and local government agencies to ensure that these agencies are 
aware of any authorizations you may need from them and that effective 
coordinated planning is initiated as soon as possible.


Sec. 2804.11  Where do I file my application?

    (a) File the application for a right-of-way grant in the BLM field 
office having jurisdiction over the lands affected by your application.
    (b) If your application affects more than one BLM administrative 
unit, you may file at any BLM office having jurisdiction over any part 
of the project. BLM will notify you where to direct subsequent 
communications.


Sec. 2804.12  What information do I need to submit in my application?

    (a) File your application on Form SF-299, available from any BLM 
office, and fill in the required information. On the form, give your 
name and address and the name and address of any authorized agent and 
completely describe the project, including:
    (1) The scope of the facilities;
    (2) The estimated schedule for constructing and maintaining the 
project;
    (3) The estimated life of the project and the construction and 
reclamation techniques proposed;
    (4) A map of the project, showing its approximate location and 
existing improvements adjacent to the proposal;
    (5) A statement of your financial and technical capability to 
construct, operate, maintain, and terminate the project;
    (6) Any plans, contracts, or agreements concerning your use of the 
right-of-way that might affect competition; and
    (7) Your certification that you are of legal age and authorized to 
do business in the State and that you have submitted correct 
information to the best of your knowledge.
    (b) If you are a business entity, you must disclose the following 
information:
    (1) The name and address of each participant in the business,
    (2) The name and address of each shareholder owning 3 percent or 
more of the voting shares of the business,
    (3) The name and address of each affiliate of the business,
    (4) The number of shares and the percentage of any class of voting 
stock of any affiliate controlled by the entity, and
    (5) The number of shares and the percentage of any class of voting 
stock of any affiliate that controls the entity.
    (c) BLM may require you to submit additional information at any 
time while processing your application.
    (d) If you are a federal oil and gas lessee or operator, you may 
include your right-of-way needs with your application for permit to 
drill or other sundry notice required under part 3100 of this title.
    (e) If you are filing with another federal agency for a license, 
certificate of public convenience and necessity, or other authorization 
for a project involving a right-of-way on public lands, simultaneously 
file an application with BLM for a grant. Include a copy or reference 
all of the information you have filed with the other federal agency.


Sec. 2804.13  Will BLM keep my information confidential?

    BLM will keep any information that you mark as ``confidential'' or 
``proprietary'' confidential to the extent allowed under the Freedom of 
Information Act (5 U.S.C. 552).


Sec. 2804.14  Is there a filing fee for my application?

    (a) Yes. Unless you apply for and receive a reduction (see 
Sec. 2804.18 of this subpart) or are exempt under Sec. 2804.15 of this 
subpart, you must reimburse BLM for the reasonable costs of processing 
your application before BLM incurs them. These costs are not refundable 
and are based on an estimate of the amount of work that BLM must do to 
process your application.
    (b) Processing costs are based on categories, defined as follows:
    (1) Category I. Either BLM has on hand or you supply the data 
necessary to process your application; neither a land-use plan 
amendment nor a field examination is required; and estimated processing 
time is no more than 24 work hours for all BLM personnel involved in 
the application review. Cost: Refer to the FLPMA fee schedule, 
available from any BLM field office.
    (2) Category II. Same as I, plus one field examination is needed to 
verify existing data; and the estimated processing time, including the 
time required to conduct the field exam, falls between 25 and 36 work 
hours for all BLM personnel involved in the application review. Cost: 
Refer to the FLPMA fee schedule, available from any BLM field office.
    (3) Category III. Same as I, plus two field examinations are needed 
to verify existing data; and the estimated processing time, including 
the time required to conduct the field exams, falls between 37 and 50 
work hours for all BLM personnel involved in the application review. 
Cost: Refer to the FLPMA fee schedule, available from any BLM field 
office.
    (4) Category IV. Original data must be collected; a plan amendment 
may be needed; two or more field examinations are needed; and estimated 
processing time, including the time required for the field exams, is 
more than 50 work hours for all BLM personnel involved in the 
application review. Cost: Full reasonable costs.
    (5) Master agreement. Instead of one of categories I through IV, 
you may enter into an agreement with BLM to fully reimburse BLM for all 
reasonable processing costs. The agreement should be written to include 
any applications you may subsequently file within the same area.
    (c) The cost for the first three categories is contained in a 
schedule maintained by BLM. BLM updates these schedules each calendar 
year, based on the previous year's change in the Implicit Price 
Deflator-Gross Domestic Product, as measured second quarter to second 
quarter. BLM will round these changes up to the nearest dollar. You may 
obtain a copy of the revised schedule from any BLM State or field 
office or by writing: Director, BLM, 1849 C St., N.W., Mail Stop 
1000LS, Washington, D.C. 20240. BLM will post the schedule on the BLM 
Homepage on the Internet, http://www.blm.gov.
    (d) After an initial review of your application, BLM will notify 
you of the category into which your application fits; you must submit 
the payment

[[Page 32128]]

before BLM begins processing your application. For Category IV and 
master agreement applications, see Sec. 2804.16(b) of this subpart. 
Your signature on a cost recovery master agreement constitutes your 
agreement with the category decision. If you disagree with the category 
that BLM has determined for your application, you may appeal the 
decision to the Interior Board of Land Appeals under part 4 of this 
title.
    (1) If you appeal a Category I through III determination, BLM will 
process your application while the appeal is pending, if you have 
submitted the processing fee. You will get a refund or adjustment of 
your application fee upon resolution of the appeal, if IBLA finds in 
your favor.
    (2) If you appeal a Category IV determination, BLM will not process 
your application further until the appeal is resolved.
    (e) In processing your application, BLM may determine at any time 
that the application requires preparing an environmental impact 
statement. BLM will then send you a decision changing your cost 
recovery category to Category IV. You may appeal the decision under 
part 4 of this title. BLM will make no other changes in category 
determination.


Sec. 2804.15  Am I exempt from paying cost recovery charges?

    You are exempt from paying processing and monitoring fees only if:
    (a) You are a state or local government or an agency of such a 
government, when BLM issues the grant for governmental purposes 
benefitting the general public. If your principal source of revenue 
results from charges you levy on customers for services similar to 
those of a profit-making corporation or business, you are not exempt; 
or
    (b) You participate in a cost-share road or reciprocal right-of-way 
agreement.


Sec. 2804.16  How will BLM process my Category IV application?

    (a) BLM will:
    (1) Determine the issues to be analyzed under NEPA;
    (2) Prepare a preliminary work plan;
    (3) Develop a preliminary financial plan, which estimates the 
reasonable cost of processing your application;
    (4) Discuss with you the preliminary plans and data, the 
availability of funds, your options for the timing of paying 
reimbursable costs and what financial information you need to submit. 
You may conduct the studies that BLM needs to process your application, 
but you must do the work to BLM standards. BLM will make the final 
determinations and conclusions arising from the studies; and
    (5) Develop the final scoping, work and financial plan which 
reflects any work you have agreed to do. BLM will also complete the 
final estimates of the amount of the costs you will need to reimburse, 
including any reduction granted to you.
    (b) BLM will periodically estimate processing costs for a specific 
work period and notify you of the amount due. If your payment exceeds 
the costs that BLM incurred for the period, BLM will either adjust the 
next billing to reflect the excess or refund you the excess under the 
provisions of 43 U.S.C. 1734.


Sec. 2804.17  What is a cost recovery master agreement and what does it 
contain?

    (a) If your proposal involves a project that would require multiple 
approvals from BLM, you may want to enter into a cost recovery master 
agreement.
    (b) For BLM to approve the agreement, its contents must:
    (1) Describe the geographical area covered by the agreement and the 
scope of the activity planned;
    (2) Include a work plan, updated periodically as appropriate, and 
approved by you and BLM;
    (3) Contain a preliminary cost estimate for processing the 
application and completing the project;
    (4) Specify that you will be bound by all regulations otherwise 
applicable to a Category IV determination;
    (5) Describe the method of periodic billing, payment and auditing;
    (6) State whether the agreement will bind future applications in 
the same geographic area that are not part of the same project;
    (7) Explain how monitoring will be performed and how monitoring 
costs will be recovered;
    (8) Contain specific conditions for terminating the agreement; and
    (9) Contain any other information that BLM needs to process the 
application.
    (c) If you sign a master agreement, you waive your right to request 
a reduction of cost reimbursement charges. (See Sec. 2804.18.)


Sec. 2804.18  Can BLM reduce my reimbursement costs?

    Yes, in limited circumstances. (See paragraphs (a) and (b) of this 
section.) You may submit a written request for reduction of the 
processing costs to the BLM field office having jurisdiction over the 
lands covered by your application. Submitting your reduction request 
with the application will expedite its handling. BLM may require you to 
submit additional information needed to support your request. While we 
consider your written request, BLM will not process your application.
    (a) Category IV Applications, Reasonability. The State Director 
will apply the reasonability criteria of FLPMA, 43 U.S.C. 1734(b), in 
determining the amount you owe. You may submit your analysis of the 
following information, if you believe one or more of the criteria 
apply:
    (1) Reasonable costs to BLM of processing a right-of-way 
application and of monitoring construction, operation and termination 
of a facility authorized by the right-of-way grant;
    (2) Monetary value of the rights and privileges you seek, that is, 
the cost of providing the end result through the next least costly 
method;
    (3) Costs incurred for the benefit of the general public interest, 
that is, the costs for studies and data collection that have value to 
the United States or the general public apart from processing the 
application;
    (4) BLM's ability to process an application with maximum efficiency 
and minimum waste and effort; and
    (5) Any tangible improvements, such as roads, trails and recreation 
facilities, with significant public value that are expected in 
connection with constructing and operating the project.
    (b) Other considerations. The State Director may, at his or her 
discretion, reduce your payment of reimbursable costs in any category 
for any of the reasons listed in this paragraph. You may submit 
information showing how your situation meets one or more of these 
factors:
    (1) Hardship conditions, that is, payment of all reasonable costs 
would:
    (i) Result in financial hardship to your small business, and you 
would receive little value from your grant as compared to the costs of 
processing your application, or
    (ii) Create such financial hardship so as to prevent your use and 
enjoyment of your private right-of-way for a non-commercial purpose.
    (2) The costs of processing the application grossly exceed the 
costs of constructing the project;
    (3) A major portion of the processing costs results from issues not 
related to the actual right-of-way grant;
    (4) You are a non-profit organization, corporation, or association 
which is not controlled by or a subsidiary of a profit-making 
enterprise, and
    (i) The studies undertaken in connection with the processing of the 
application have a public benefit, or
    (ii) The facility or project will provide a benefit or special 
service to the general public or to a program of the Secretary;

[[Page 32129]]

    (5) You need a right-of-way to construct a facility to prevent or 
mitigate damages to any lands or property or to mitigate hazards or 
danger to public health and safety resulting from an act of God, an act 
of war or negligence of the United States;
    (6) You have a grant and need to relocate a facility on it to an 
area outside the existing grant to comply with public health and safety 
and environmental protection laws and regulations which were not in 
effect at the time your original grant was issued;
    (7) You have a grant and need to secure a new grant to relocate 
facilities which have to be moved because a federal agency or federally 
funded project needs the lands, if the United States does not refund 
costs associated with your relocation; or
    (8) For whatever other reason, collecting processing fees would be 
inconsistent with prudent and appropriate management of public lands 
and with your equitable interests.
    (c) Action on request. BLM will notify you in writing of what you 
owe after considering your analysis.
    (1) If you disagree with BLM's determination, you may appeal it 
under part 4 of this title. BLM will take no action on your application 
while the appeal is pending.
    (2) If BLM reduces the cost reimbursement, we will determine the 
actual amount of the reduction and adjust your bills accordingly.
    (d) Restriction on reduction. If no funds are available to process 
your application, BLM may not process your application until funds are 
available.


Sec. 2804.19  What happens if there are two or more competing 
applications for the same facility or system?

    If this happens,
    (a) Category I through III: You must reimburse BLM for processing 
costs as if the other application or applications had not been filed.
    (b) Category IV: You are responsible for the costs identified with 
your application. If BLM cannot readily separate costs, such as costs 
associated with preparing environmental analyses, you and competing 
applicants must pay an equal share or a proportion agreed to in writing 
among all applicants and BLM. If you agree to share the cost of 
processing your application and that of a competing applicant, and the 
competitor fails to pay the agreed upon amount, you will be liable for 
the entire amount due. BLM will not do any work without the advance 
payment.


Sec. 2804.20  How will BLM process my application?

    (a) BLM will notify you in writing when it receives your 
application and your cost reimbursement payment described at 
Sec. 2804.14 of this subpart.
    (b) BLM may require you to submit additional information necessary 
to review the application. This information may include a detailed 
construction, operation, rehabilitation, and environmental protection 
plan, i.e., a ``Plan of Development,'' and any needed cultural resource 
surveys or inventories for threatened or endangered species. If BLM 
needs more information, we will request this information in writing. 
BLM will give you written notification of any deficiencies in the 
information you provided and give you the opportunity to file the 
additional information. BLM will also notify you of any applications 
for grants which involve all or part of the lands you applied for.
    (c) BLM will process your application within 30 working days of 
receiving it if it is a Category I through III application that 
qualifies for a categorical exclusion or requires an environmental 
assessment. If it is a Category IV application or one requiring an 
environmental impact statement, BLM will notify you in writing of the 
estimated processing time for your application. If processing any 
category of application will take longer than 60 working days, BLM will 
notify you and provide you with an explanation of the delay and an 
estimate of the processing time.
    (d) Before issuing a grant, BLM will:
    (1) Complete an environmental analysis, as required by 40 CFR part 
1501;
    (2) Determine whether or not your proposed use complies with 
applicable Federal and State laws and local ordinances;
    (3) Determine whether it is in the public interest to require you 
to grant the United States an equivalent right-of-way across lands that 
you own;
    (4) Consult as necessary with other governmental entities;
    (5) Hold public meetings if sufficient public interest exists to 
warrant their time and expense. BLM will publish a notice in the 
Federal Register or a local newspaper if we hold any public meetings;
    (6) Take any other action necessary to fully evaluate and decide 
whether to approve or deny your application.
    (e) If approved, the decision may:
    (1) Include any terms, conditions that BLM determines to be in the 
public interest. This may include modifying your proposed use, changing 
the route or location of the facilities, and other stipulations.
    (2) Prevent your use of the right-of-way until you have an approved 
Plan of Development and BLM has issued a Notice to Proceed.
    (3) Impose a specific term for the grant. Each grant that BLM 
issues for 20 years or more will contain a provision requiring periodic 
review at the end of the twentieth year and at 10-year intervals 
thereafter. BLM may change the terms and conditions of the grant as a 
result of these reviews.


Sec. 2804.21  Can BLM reject my application?

    Yes. BLM may reject your application if:
    (a) The proposed grant is inconsistent with the purpose for which 
the public lands are being managed;
    (b) The proposed grant would not be in the public interest;
    (c) You are not qualified to hold a grant;
    (d) Issuing the grant would be inconsistent with the Act or other 
applicable laws;
    (e) You do not have or cannot demonstrate the technical or 
financial capability to operate facilities located with the grant; or
    (f) You do not adequately comply with a deficiency notice (see 
Sec. 2804.19(b) of this subpart).


Sec. 2804.22  Do I owe any money if BLM rejects my application or if I 
withdraw my application?

    Yes. You owe only the initial processing fee, unless you have a 
Category IV application or have entered into a master agreement. Then, 
the following conditions apply:
    (a) If BLM rejects your application, you are liable for all 
reasonable costs that BLM incurred in processing it. The money you have 
not paid is due within 30 days of your receiving a bill for the amount 
due.
    (b) If you withdraw your application before BLM issues a grant, you 
are liable for all the reasonable processing costs and for the 
reasonable costs of terminating your application. Any money you have 
not paid is due within 30 days of your receiving a bill for the amount 
due.


Sec. 2804.23  Do I always have to submit an application for a right-of-
way to receive a grant?

    (a) No. Where competitive interest exists, BLM may offer grants and 
set rent through a competitive bid process. BLM will describe the 
procedures for a competitive bid through a bid announcement published 
in a newspaper of general circulation in the

[[Page 32130]]

area affected by the potential right-of-way.
    (b) Oil and gas lessees or operators may include right-of-way needs 
with their Applications for Permits to Drill or similar surface use 
requirements under the regulations at part 3100 of this chapter.


Sec. 2804.24  Do I have to pay the costs of processing BLM rights-of-
way associated with Federal Energy Regulatory Commission (FERC) 
licenses?

    Yes. You must reimburse BLM for the costs which it incurs in 
processing your application. BLM will bill you for this service. FERC 
will bill you for costs incurred in processing the FERC license or 
relicense. BLM will determine the amount that you have to pay by using 
the cost recovery categories described at Sec. 2804.14 of this subpart.


Sec. 2804.25  What can I do on the proposed right-of-way while BLM is 
processing my application?

    You may conduct casual use activities on the lands covered by the 
application, as may any other member of the public. For any activities 
that are not casual use, you must get prior approval from BLM.

Subpart 2805--What Terms and Conditions Do Grants Contain?


Sec. 2805.10  What does a grant contain?

    The grant states what your rights are on the lands subject to the 
grant and contains information about:
    (a) What lands you can use or occupy. The lands may or may not 
correspond to those you applied for. BLM will limit the grant to those 
lands which the BLM determines:
    (1) Will be occupied by the authorized facilities;
    (2) Are necessary for constructing, operating, maintaining, and 
terminating the authorized facilities;
    (3) Are necessary to protect the public health and safety; and
    (4) Will not unnecessarily damage the environment.
    (b) How long you can use the right-of-way. Each grant will state 
the length of time that you are authorized to use the right-of-way. BLM 
will consider the following factors in establishing a reasonable time 
limit:
    (1) The public purpose served,
    (2) Cost and useful life of the facility, and
    (3) Time limitations imposed by licenses or permits required by 
other federal agencies and state or local governments.
    (c) Terms and conditions of use. If you accept a grant, you must 
agree to comply with and be bound by certain terms and conditions. You 
must:
    (1) Comply with all local, state, and federal laws and regulations 
applicable to the authorized use, construction, maintenance, and 
termination of the project and existing at the time the BLM issues the 
grant and those state, local, and federal laws and regulations 
subsequently enacted, issued, or amended during the term of the grant;
    (2) Rebuild and repair roads, fences, and established trails 
destroyed or damaged by constructing, operating, maintaining, or 
terminating the project and build and maintain suitable crossings for 
existing roads and significant trails that intersect the project;
    (3) Do everything reasonable, on your own or at BLM's request, to 
prevent and suppress fires on or in the immediate vicinity of the 
right-of-way area;
    (4) Not discriminate against any employee or applicant for 
employment associated with the authorized use because of race, creed, 
color, sex, or national origin and require subcontractors to refrain 
from discrimination also;
    (5) Pay rentals and reimbursable costs as described at 
Secs. 2806.10 and 2805.14;
    (6) Certify that you have a surety bond or other acceptable 
security to cover any losses, damages, or injury to human health, the 
environment, and property resulting from or related to your activities 
on the right-of-way. Coverage includes liabilities for damages or 
injuries resulting from actual or threatened releases or discharges of 
hazardous materials. Based on changes in conditions or risk and your 
record of compliance, BLM may require a bond or an increase or decrease 
in an existing bond at any time during the term of the grant;
    (7) Assume full liability if third parties are injured or damages 
occur to property on or around the grant area (see Sec. 2807.12);
    (8) Comply with project-specific terms and conditions, including 
requirements to:
    (i) Restore, revegetate, and curtail erosion or any other 
rehabilitation measure determined necessary;
    (ii) Ensure that activities in connection with the grant comply 
with applicable air and water quality standards or related facility 
siting standards contained in applicable federal or state law or 
regulations;
    (iii) Control or prevent damage to environmental values, federal 
property, and public health and safety;
    (iv) Protect the interests of individuals living in the general 
area who rely on the area for subsistence purposes; and
    (v) Ensure that the facilities are constructed, used, operated, and 
terminated in a manner consistent with the grant and on the lands 
included in the grant;
    (9) Immediately notify all federal, state, and local agencies with 
jurisdiction over the land, including BLM, of any actual or threatened 
release or discharge of hazardous material and send a copy of the 
notification to BLM;
    (10) Not dispose of hazardous materials on your grant, except as 
provided by the terms and conditions of your grant, and not store 
hazardous materials on your grant for more than 90 days, less if 
required by law;
    (11) Annually and on assigning, renewing, and terminating your 
grant, certify that you have complied with all requirements of the 
Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. 
11001 et seq.;
    (12) Control and remove any release or discharge of hazardous 
materials that occurs on or near the right-of-way, whether the release 
or discharge is authorized under the grant. You must also remediate or 
restore lands and resources affected by the release or discharge to 
BLM's satisfaction and to the satisfaction of any other federal, state 
or local agency having jurisdiction over the land, resource or 
hazardous material;
    (13) Comply with all liability and indemnification provisions and 
stipulations; and
    (14) Comply with all other stipulations that BLM may require.


Sec. 2805.11  When is the grant effective?

    The grant is effective after both you and BLM sign it. Your 
signature indicates that you accept its terms and conditions. You must 
also pay any necessary rent and monitoring. Your signed acceptance 
constitutes an agreement between you and the United States that your 
right to use the public lands, as specified in the grant, is subject to 
the terms and conditions of the grant and the provisions of applicable 
laws and regulations.


Sec. 2805.12  What rights does the grant convey?

    The grant conveys to you only those rights which it expressly 
contains. It is issued subject to the valid existing rights of others, 
including the United States. Rights which the grant conveys to you 
include the right to:
    (a) Use the affected lands to construct, operate, maintain, and 
terminate facilities within the right-of-way for authorized purposes 
under the terms and conditions described in the grant;
    (b) If your grant specifically authorizes it, allow other parties 
to use your facility for the purposes specified

[[Page 32131]]

in your grant and charge for its use. Otherwise, you may not let anyone 
else use your facility unless BLM authorizes or requires it in writing;
    (c) Allow others to use the land as your agent in the exercise of 
the rights that the grant specifies;
    (d) Do minor trimming, pruning, and removing of vegetation to 
maintain the right-of-way or facility;
    (e) Make use of common varieties of stone and soil which are 
removed when constructing part of the project, in constructing other 
parts of the project within the authorized right-of-way, without 
additional BLM authorization or payment; and
    (f) Assign the grant to another, provided that you obtain BLM's 
prior written approval.


Sec. 2805.13  What rights does the United States retain?

    The United States retains and may exercise any rights the grant 
does not expressly convey to you. These include the right of BLM to:
    (a) Access the lands covered by the grant and enter any facility 
you construct on the grant after BLM gives you reasonable notice;
    (b) Require common use of the land included in your right-of-way 
and authorize use of the right-of-way for compatible uses. You may not 
charge for the use of the lands made subject to such additional rights-
of-way;
    (c) Retain ownership of the products of the land, including living 
and non-living resources. You have no right to use these resources, 
except as noted in Sec. 2805.12 of this subpart;
    (d) Require you to grant it an equivalent right-of-way for an 
access road across your land if BLM determines the reciprocal grant is 
needed in the public interest;
    (e) Determine whether or not your grant is renewable; and
    (f) Change the terms and conditions of your grant through changes 
in legislation, regulation, or otherwise necessary to protect public 
health and safety and the environment.


Sec. 2805.14  What are monitoring fees?

    (a) Monitoring fees are similar to the processing costs fees 
described at Secs. 2804.14 and 2804.16. BLM incurs costs in monitoring 
your construction, operation, maintenance and termination of the 
facilities we authorized under the grant and in protecting and 
rehabilitating the affected public lands. BLM uses the same category 
for monitoring as it does for determining the category of the 
application. (See Sec. 2804.14.)
    (b) Costs for Categories I through III. For Categories I through 
III, there is a one-time monitoring fee based on a fee schedule 
available from any BLM office. BLM annually updates these costs, using 
the same method it uses for application processing costs. (See 
paragraph (c) of Sec. 2804.14.)
    (c) Costs for Category IV. See Sec. 2805.15(b) of this subpart.


Sec. 2805.15  When do I pay monitoring costs?

    (a) All categories. For Categories I through III, you must submit 
the payments for monitoring with your written acceptance of the terms 
and conditions of the grant. For Category IV, you must submit the first 
periodic advance payment with your written acceptance. If you have a 
master agreement with BLM, pay the monitoring costs per the agreement. 
BLM will not issue your grant until it receives the required payment.
    (b) Periodic advance payments. If you have a Category IV 
application, BLM may periodically estimate the costs of monitoring your 
use of the grant. BLM will include this fee in the costs associated 
with processing costs described at Sec. 2804.14. If your payments 
exceed reasonable costs, BLM will reimburse you the difference or 
adjust the next billing to reflect the overpayment. Unless you have 
written authorization from BLM, you may not offset or deduct the amount 
due from your payments. The periodic advance payments are subject to 
re-estimation if conditions warrant.

Subpart 2806--What Information Do I Need to Know About Rents for 
Right-of-Way Grants?


Sec. 2806.5  What definitions do I need to know to understand these 
regulations?

    As used in this subpart, the term:
    (a) Base rent means the dollar amount required from the holder of a 
right-of-way on BLM-managed lands based on the communication use with 
the highest rent in the associated facility, as calculated according to 
the terms of the right-of-way grant or lease. If a facility manager or 
owner's scheduled rent is equal to another assigned scheduled rent in 
the facility, then the facility manager or owner's use determines the 
dollar amount of the base rent.
    (b) Commercial purpose refers to the circumstance where a facility 
owner charges rent for the use of a facility that generates more than 
the operating expenses of the facility attributable to that use, thus 
producing a profit for the facility owner. The facility owner's use may 
not otherwise be subject to rent charges under BLM's rental provisions. 
Example: A two-way radio service, used only by paying subscribers, is 
housed in an REA-financed facility located on a rent-free right-of-way. 
The facility owner charges the radio service an annual rent for using 
all or part of the facility that exceeds the portion of the annual 
operating expenses, such as Federal, State and local taxes, if any, and 
financing charges (but not depreciation), maintenance, labor, 
remodeling, replacement, and utility costs, that are attributable to 
the radio service's using the facility. Under the circumstances, the 
otherwise rent-free facility is being used for a commercial purpose, 
and, therefore, BLM will charge the facility owner an appropriate rent;
    (c) Communication use rent schedule is a schedule of rents for the 
following types of communication uses, including related technologies, 
located in a facility associated with a particular right-of-way grant. 
For rent calculation purposes, all use categories include ancillary 
communications equipment, such as microwave or internal one- or two-way 
radio:
    (1) Television broadcast means a use, licensed by the Federal 
Communications Commission (FCC), that broadcasts UHF and VHF audio and 
video signals for general public reception and ancillary communication 
equipment directly related to the operations, maintenance and 
monitoring of the use. This category does not include Low Power 
Television (LPT) or rebroadcast devices, such as translators, or 
transmitting devices, such as microwave relays serving broadcast 
translators. BLM does not consider ancillary equipment used in direct 
support of the primary communication use as a separate use for rent 
calculation purposes;
    (2) AM and FM radio broadcast means a use, licensed by the FCC, 
that broadcasts amplitude modulation (AM) or frequency modulation (FM) 
audio signals for general public reception and ancillary communication 
equipment, directly related to operating, maintaining and monitoring 
the use. This category does not include FCC-licensed low-power FM 
radio; rebroadcast devices, such as translators; boosters or microwave 
relays serving broadcast translators;
    (3) Broadcast radio and low power television means a use, licensed 
by the FCC, that operates translators and low power television, low-
power FM radio (LPFM), and ancillary communication equipment, including 
microwave facilities, directly related to operating, maintaining, or 
monitoring the use. Translators receive a television or FM radio 
broadcast signal and rebroadcast it

[[Page 32132]]

on a different channel or frequency for local reception. In some cases 
the translator relays the true signal to another amplifier or 
translator. LPTV and LPFM are broadcast translators that originate 
programming. This category of use includes translators associated with 
public telecommunication services.
    (4) Cable television means a use, licensed by the FCC, that 
transmits video programming to multiple subscribers in a community over 
a wired or wireless network and communication equipment directly 
related to operating, maintaining, or monitoring the use. This category 
does not include rebroadcast devices that retransmit television signals 
of one or more television broadcast stations, or personal or internal 
antenna systems, such as private systems serving hotels or residences;
    (5) Cellular telephone means systems and related technologies, 
licensed by the FCC, used for mobile communications, using a 
combination of radio and telephone switching technology and providing 
public switched network services to fixed and mobile users within a 
defined geographic area. The system consists of cell sites containing 
transmitting and receiving antennas, cellular base station radio, 
telephone equipment, and microwave communications link equipment and 
the ancillary communication equipment directly related to maintaining 
and monitoring the use. Examples: Personal Communication Service (PCS), 
Enhanced Specialized Mobile Radio (ESMR), Improved Mobile Telephone 
Service (IMTS), Air-to-Ground, Offshore Radio Telephone Service, and 
Cell Site Extenders;
    (6) Commercial mobile radio service/facility manager means 
commercial mobile radio uses or their holders, licensed by the FCC, 
that provide communication service to individual customers and 
ancillary communication equipment directly related to operating, 
maintaining, or monitoring the use. Examples: Two-way voice and paging 
services, such as community repeaters, trunked radio (specialized 
mobile radio), two-way radio dispatch, public switched network 
(telephone/data) interconnect service, and microwave communications 
link equipment or those holders that lease building, tower, and related 
facility space to a variety of tenants as part of their business 
enterprise and act as facility managers;
    (7) Microwave means FCC-licensed uses that operate long-line 
intrastate and interstate public telephone, television, information, 
and data transmissions; uses in support of pipeline and power 
companies, railroads, and land resource management companies that 
support their primary business, and communication equipment directly 
related to operating, maintaining or monitoring the use;
    (8) Private mobile radio means FCC-licensed uses supporting private 
mobile radio systems primarily for a single entity and communication 
equipment directly related to operating, maintaining, or monitoring the 
use. This use is not sold and is exclusively limited to the user in 
support of business, community activities, or other organizational 
communication needs. Examples: Private local radio dispatch, private 
paging services, and ancillary microwave communications equipment for 
controlling mobile facilities; and
    (9) Other communication uses means FCC-licensed private 
communication uses, such as amateur radio, personal/private receive-
only antennas, natural resource and environmental monitoring equipment, 
and other small, low-power devices used to monitor or control remote 
activities.
    (d) Customer means an occupant who is paying a facility manager or 
owner, or a tenant, for using all or any part of the space in the 
facility, or for communication services, and is not reselling or 
broadcasting communication services to others. Examples: Two-way radio, 
internal microwave communications, and all uses under the ``other'' 
category when located within someone else's facility. Persons or 
entities benefiting from private or internal communication uses located 
in another holder's facility are considered customers for purposes of 
calculating rent. Customer uses are not included in calculating the 
amount of rent that is charged by BLM, except as noted in 
Sec. 2806.20(b)(4) of this subpart.
    (e) Facility manager means a person or entity that:
    (1) Owns a communication facility on federal land;
    (2) Leases space to other communication users;
    (3) Does not own or operate communications equipment in the 
facility for personal use; and
    (4) Holds a communication use authorization.
    (f) Facility owner means a person or entity that:
    (1) Owns a communication facility on a right-of-way grant;
    (2) Owns and operates his or her own communications equipment in 
the facility;
    (3) Holds a communication use authorization; and
    (4) May or may not lease space to other communication users in that 
facility.
    (g) Reselling means providing communication services to others for 
profit, such as Commercial Mobile Radio Service providers, providers of 
cellular telephone services, or communication businesses, such as 
television and radio broadcasters.
    (h) Site means an area, such as a mountain top, where one or more 
communication facilities are located.
    (i) Tenant means an occupant who pays rent for occupying and using 
all or any part of a facility and operates communication equipment in 
the facility to resell or broadcast the communication services to 
others for a profit. For purposes of calculating the amount of rent 
that BLM charges, the term ``tenant'' does not include private mobile 
radio or internal microwave use that is not being re-sold, or uses 
included in the category of ``Other Communication Uses.''
    (j) Zone means one of eight groupings of land value into which all 
areas of the contiguous United States were placed for linear rent 
assessment purposes.
    (k) Zone value means the per acre, fair market value of land that 
is used to calculate rents for linear right-of-way grants. For example, 
lands within a zone with a value of $50 per acre are in Zone 1, lands 
within a zone with a value of $100 are in Zone 2, land within a zone 
with a value of $200 are in Zone 3, and so forth.


Sec. 2806.10  Must I pay rent for using my right-of-way?

    Yes. You must pay rent in advance, unless your rent is based in 
whole or in part on a percentage of production or similar terms. The 
rent is equivalent to the fair market rental value, which BLM 
establishes based on sound business management principles.
    (a) BLM will charge the rent beginning on the first day of the 
month following the effective date of the grant through the last day of 
the month when the grant terminates. Example: If a right-of-way became 
effective on January 10 and terminated on September 16, the rental 
period would be February 1 through September 30, or 8 months.
    (b) BLM will set or adjust the annual billing periods to coincide 
with the calendar year by prorating the rent on the basis of 12 months.
    (c) BLM may require that you make either annual payments or 
payments for more than 1 year at a time. However, if you are a private 
individual and the annual rent is more than $100, you may elect to make 
either annual payments or payments for more than 1 year.

[[Page 32133]]

    (d) If BLM issued your right-of-way on or before October 21, 1976, 
under then existing statutes, you may request a hearing with BLM before 
a proposed rent increase becomes effective. This applies to rent 
increases due to a fair market value appraisal or from initially being 
put on a rent schedule. You may not request a hearing on annual 
adjustments once you are on a schedule.
    (e) If you disagree with the rent that BLM charges, you may appeal 
the decision under part 4 of this title.


Sec. 2806.11  Are there exceptions to paying rents?

    Yes, you do not have to pay rent for your use if:
    (a) BLM issues the grant under a statute which does not allow it to 
charge rent, or
    (b) You are a federal, state, or local government or their agency 
or instrumentality, unless you are using the system or space for 
commercial purposes or you are a municipal utility or cooperative whose 
principal source of revenue is customer charges; or
    (c) You have been granted a waiver of rent under a statute 
permitting waiver; or
    (d) The facilities constructed on the right-of-way were constructed 
with funds from the Rural Electrification Act of 1936, as amended 
(REA), or are owned and operated by a non-profit rural electric or 
telephone cooperative eligible for REA financing, or are extensions of 
such facilities. You must be able to document your eligibility for REA 
financing. However, BLM will charge you rent based on your tenants and 
customers if:
    (1) You are a commercial communications company using power poles 
under an agreement with the Rural Utility Service, or
    (2) You hold a communication site right-of-way grant used and 
occupied by tenants, or
    (3) You provide communication services to customers for commercial 
purposes in connection with your right-of-way.


Sec. 2806.12  Can my rent be reduced?

    Yes. BLM may reduce your rent payment where:
    (a) You are a non-profit corporation or association which is not 
controlled by or is not a subsidiary of a profit making corporation or 
business enterprise; and
    (b) You provide without charge, or at reduced rates, a valuable 
benefit to the public at large or to the programs of the Secretary of 
the Interior; or
    (c) You hold an outstanding permit, lease, license, or contract for 
which the United States is already receiving compensation. This does 
not apply to oil and gas leases under part 3100 of this title, where 
you are required to secure a grant under part 2800 for access to reach 
the lease area, or a right-of-way under part 2880 to transport products 
to or from the lease area; or
    (d) The grant involves a reciprocal right-of-way agreement not 
subject to part 2812 of this title. BLM will determine the fair market 
value rent for cost share roads or reciprocal rights-of-way based on 
the proportion of use; or
    (e) The BLM State Director determines that paying the full rent 
will cause you hardship, as defined at Sec. 2804.18(b)(1), and that 
reducing or waiving the rental payment is in the public interest. BLM 
may require you to submit data and information to support a proposed 
finding that your grant qualifies for a reduction or waiver of rental. 
(See Sec. 2804.18 for information about how to apply for a rent 
reduction.)


Sec. 2806.13  What happens if I default on my rent payment?

    If you do not pay the rent when it is due under the terms and 
conditions of the grant or applicable law, and delinquency continues 
for 30 days after BLM sends you a payment notice, BLM may terminate 
your grant or take appropriate action to collect the rent owed. After 
you have defaulted, you may not remove any structures, buildings, or 
equipment without BLM's written permission. The rent due remains a debt 
that you owe to the United States. If you pay the rent after the lease 
or grant has terminated, the grant is not automatically reinstated. You 
must file a new application with BLM. BLM will consider the history of 
your failure to pay rent in deciding whether to offer you a new grant.


Sec. 2806.14  What are the rent costs for linear rights-of-way?

    (a)(1) BLM will normally use a schedule, which is updated annually, 
to determine the rent for your linear grant. BLM may use an alternate 
means to compute your rent if:
    (i) The land value of a substantial segment or area within the 
right-of-way exceeds the zone's value by a factor of 10, or
    (ii) The expected rent is sufficient to warrant a separate 
appraisal.
    (2) Once you are on a rent schedule, BLM will not use the 
conditions in paragraphs (a)(1)(i) and (ii) of this section to remove 
you from the schedule, unless you file an application to amend your 
right-of-way grant.
    (b) You may obtain the current linear right-of-way rent schedule 
from any BLM State or field office or by writing: Director, BLM, 1849 C 
St., N.W., Mail Stop 1000 LS, Washington, D.C. 20240. BLM will also 
post the current rent schedule on the BLM Homepage on the Internet, 
http://www.blm.gov.


Sec. 2806.15  Does the linear rent schedule ever change?

    Yes. BLM annually adjusts the rental schedule by multiplying the 
current year's rent-per-acre by the annual change, second quarter to 
second quarter (June 30 to June 30), in the Implicit Price Deflator-
Gross Domestic Product Index, as published in the Survey of Current 
Business of the Department of Commerce, Bureau of Economic Analysis.


Sec. 2806.16  How will BLM calculate my rent for linear rights-of-way 
covered by the schedule?

    BLM calculates your rent by multiplying the rent-per-acre from the 
current schedule by the number of acres in the grant and the number of 
years in the rental period. If BLM has not previously used the rent 
schedule to calculate your rent, we may do so after giving you 
reasonable written notice.


Sec. 2806.17  What are the rent costs for communication facilities or 
uses?

    (a) Schedule of rents. BLM uses a communication use rent schedule 
to determine the rent for communication site rights-of-way. The 
schedule is based on the population served, as depicted by the Ranally 
Metro Area population rankings, and the type of communication use or 
uses for which communication site rights-of-way are ordinarily granted. 
These uses are listed as part of the definition of ``communication use 
rent schedule,'' set out at Sec. 2806.5 of this subpart. You may obtain 
a copy of the schedule from any BLM State or field office or by 
writing: Director, BLM, 1849 C St., N.W., Mail Stop 1000 LS, 
Washington, D. C. 20240. BLM posts the communication site rent schedule 
to the BLM National HomePage on the internet, at http://www.blm.gov. 
BLM annually updates the schedule based on two sources: the U. S. 
Department of Labor Consumer Price Index for All Urban Consumers, U. S. 
City Average, published in July of each year, and the Ranally Metro 
Area population rankings. BLM will limit adjustments based on the 
Consumer Price Index to no more than 5 percent. At least every 10 years 
BLM will review the rent schedule to ensure that the schedule reflects 
a rational fair market value estimate.
    (b) Uses not covered by the schedule. The communication use rent 
schedule does not apply to:

[[Page 32134]]

    (1) Communication site uses, facilities and devices located 
entirely within the exterior boundaries of an oil and gas lease, but 
which are directly associated with the operations of the oil and gas 
lease, for which see part 3100 of this chapter. Any other communication 
use, not directly associated with the lease operation, is not excluded; 
or
    (2) Communication facilities and uses ancillary to and authorized 
under a linear right-of-way grant, such as a railroad right-of-way 
grant;
    (3) Communication uses, including new, unrelated technologies, not 
listed on the schedule;
    (4) Right-of-way grants for which the rent is determined through 
appraisals, competitive bidding, or other reasonable methods; and
    (5) Situations where the expected rent exceeds the schedule by five 
times or the communication site serves a population of one million or 
more and the expected rent for the communication use or uses is more 
than $10,000 above the schedule rent. The State Director must concur in 
this determination.


Sec. 2806.18  How does BLM calculate rent for communication uses 
covered by the schedule?

    (a) Basic rule. BLM determines rentals for:
    (1) Single use facilities by applying the rental rate for the type 
of use and the community served, and
    (2) Multiple-use facilities by determining the highest value use in 
the facility or facilities as the base rent (when under one 
authorization), plus 25 percent of the schedule rent for all tenant 
uses in the facility, if these are not used as the base rent.
    (b) Exemption. BLM will exclude customer uses, unless expressly 
provided for, and any other waived or exempted uses, when calculating 
rents.
    (c) Basic action. By October 15 of each year, you must submit a 
certified statement listing the tenants in the facility and the 
category of use for each tenant as of September 30 of the year. BLM may 
require you to submit any additional information needed to calculate 
your rent.


Sec. 2806.19  How will BLM determine the rent for a single-use 
communication facility?

    (a) BLM determines the rent for a single-use communication facility 
from the communication use rent schedule, based on the authorized 
single use and the population area served.
    (b) BLM determines the population area served as follows:
    (1) If the site or facility is within a designated Ranally Metro 
Area (RMA), BLM will use the RMA to calculate the rent;
    (2) If the site or facility is outside an RMA but serves one or 
more RMAs, BLM will use the largest RMA served to calculate the rent;
    (3) If the site or facility is outside an RMA and the site does not 
serve the RMA, BLM will use the schedule rent for the population of the 
largest community served by the site.
    (4) If the site or facility is outside an RMA and the site serves a 
community of less than 25,000, BLM will use the lowest rent shown on 
the schedule for the type of use.
    (c) BLM may make case-by-case exceptions to calculate the rents 
described in paragraph (b) of this section only for just cause.


Sec. 2806.20  How will BLM calculate the rent for a multiple use 
communication facility?

    (a) Calculation rules. BLM will first determine the population area 
served according to paragraphs (b) and (c) of Sec. 2806.19 of this 
subpart and then calculate the rent for a communication facility with 
tenants or customers or both as follows:
    (1) BLM will calculate the rent based on the highest value use in 
the facility, plus 25 percent of the scheduled rent for each of the 
other tenant uses in the facility;
    (2) If the highest value use is not the use of the facility owner 
or manager, BLM will consider such owner's or manager's use like any 
other tenant use for calculating the rent;
    (3) If the tenant use becomes the highest value use, BLM will 
exclude that use from the 25 percent of the schedule rent calculation 
relative to tenant uses;
    (4) If a single authorization or entity has multiple uses, such as 
an FM and an AM radio station, BLM will base the rent on the sum of 
each use. The FM rent would be the highest value use and the AM portion 
would be charged according to the rent schedule for tenant use.
    (b) Exemptions to calculating rents. The following rules apply to 
calculating rents for exempted or waived communication uses:
    (1) BLM will exclude exempted or waived uses for either facility 
owners or tenants in calculating rents;
    (2) BLM will treat facility owners whose own use is either exempted 
or waived from rent but who have tenants using or occupying space in 
their facility as any other facility owner and assess rent based on the 
highest value use plus 25 percent of the schedule rent for each of the 
other remaining uses, less exempted or waived uses; and
    (3) You owe no rent if:
    (i) The facility owner's use is exempted or waived from rent,
    (ii) All other uses in the facility are exempt or are considered 
customer uses, and
    (iii) The facility owner is not profiting from the other uses in 
the building facility.
    (4) If the facility owner, whose own use is exempted from rent, is 
conducting a commercial activity with customers or tenants that are not 
exempt from rent, BLM will assess rent based on the highest value use 
within the facility;


Sec. 2806.21  How will BLM calculate rent for private mobile radio 
service (PMRS), internal microwave and ``other'' category uses?

    If the PMRS, internal microwave or ``other'' use:
    (a) Is located in someone else's facility, BLM will consider them 
customers and not include them in the rent calculation for the 
facility; or
    (b) Is the facility owner, BLM will treat them as any other 
facility owner. If a tenant has a higher value use than the facility 
owner's use, that use becomes the base rent. The PRMS, internal 
microwave, or ``other'' use is then exempt as a customer.


Sec. 2806.22  How will BLM authorize and calculate rents for customers 
and tenants who choose to have their own right-of-way facility to be 
used in common with an existing right-of-way of the owner of a 
communication facility that they use or occupy?

    (a) BLM does not require separate right-of-way grants for tenants 
and customers using or occupying an authorized facility. BLM assesses 
the facility owner rent based on the highest value use within the 
facility and 25 percent of scheduled rent for each of the other 
remaining tenant uses subject to rent.
    (b) Tenants and customers who choose to retain or be granted their 
own right-of-way grants in common will be charged, as right-of-way 
holders, a full annual rent for their use based on the BLM 
communication use rent schedule and the population served. BLM will 
include their type of communication use as a use to be included in 
calculating the rent to be paid by the facility owner or manager.


Sec. 2806.23  How will BLM calculate rents as to ``shared facilities'' 
or for multiple facilities that are under one authorization?

    (a) BLM considers each use within the shared facilities separately 
in determining rent. An example of shared facilities would be a holder 
or tenant with a microwave dish associated with

[[Page 32135]]

a building or tower on Facility A, which has an authorization from BLM, 
and other equipment or leased space associated with Facility B, which 
also has an authorization from BLM.
    (b) If you hold multiple authorizations for two or more facilities 
on the same site, you can combine all those uses under one 
authorization. The highest value use in the facility becomes the base 
rent, and BLM assesses each of the other uses at 25 percent of the 
scheduled rent, unless it is waived or exempted.


Sec. 2806.24  How does BLM calculate rent for a facility manager use?

    BLM employs the schedule value for a facility manager use only if 
the value is equal to or greater than the other uses in the facility. 
BLM does not include the use in the 25 percent calculation for other 
uses in the facility when it is not the highest value use.


Sec. 2806.25  How does BLM calculate rent for ancillary uses?

    (a) If internal mobile radio and microwave systems are ancillary, 
that is, give support or connect one another on the same communications 
facility or give support for another use, then BLM will base rent only 
on the primary use, if the microwave ends at the facility and is used 
for control of the mobile or microwave system.
    (b) If microwave and PMRS uses are located in the same facility but 
are independent of one another, BLM will consider each use as separate 
when calculating the rent.
    (c) If a communication facility is ancillary to and authorized 
under a linear right-of-way grant for a linear use or facility, or for 
some other type of authorization, e.g., a mineral lease or sundry 
notice, BLM will determine the rent based on the linear schedule and 
not the communication site schedule. The rent for any communication 
facility use located on the right-of-way will have its rent calculated 
separately based on an appraisal or other reasonable valuation methods.


Sec. 2806.26  How does BLM calculate rent for uses within federally 
owned facilities?

    If you are a tenant or customer in a federally owned facility, you 
must have your own authorization and pay the full schedule rent, based 
on the use and the population served. This does not apply to federal 
departments and agencies that have commercial ventures and operate as a 
facility manager or owner in accordance with this subpart.


Sec. 2806.27  What happens if converting to the rent schedule causes a 
$1,000 or more increase in my rent?

    BLM will phase in the new rent amount over a 5-year period. In the 
first year under the schedule, your rent payment will be the current 
year's rental plus $1,000. BLM will divide the amount exceeding $1,000 
into four equal installments. Beginning the second year after the 
increase, BLM will add the installment, plus any changes in tenant use 
and the CPI-U index, to the previous year's rent.


Sec. 2806.28  What are the rent costs for other rights-of-way and uses?

    (a) BLM will use the same rent schedules for passive reflectors and 
local network exchanges as the Forest Service uses for the region in 
which the facilities are located. You may obtain the pertinent 
schedules from the Forest Service or from any BLM State or field office 
in the region in question.
    (b) When neither the linear nor the communication site schedule is 
appropriate, BLM determines rent through an appraisal process based on 
comparative market surveys, appraisals, competitive bid, or other 
reasonable methods. BLM will advise you of the rent determination. If 
you disagree with the determination, you will be afforded an 
opportunity for a hearing, and you may appeal BLM's final determination 
under part 4 of this title.
    (c) To expedite processing of any grant, BLM may estimate rent and 
collect a deposit in advance. Once BLM completes its rent value 
determination, it will adjust the advance deposit to reflect the final 
fair market rent value determination and either issue you a refund or 
require you to pay the difference, as appropriate.
    (d) For passive reflectors or local network exchanges not covered 
by a Forest Service rental schedule, see paragraph (b) of this section.

Subpart 2807--What Can I Do on the Right-of-Way Once BLM Issues the 
Grant?


Sec. 2807.10  When can I start activities under my grant?

    When you can start depends on the terms of your grant. You can 
start activities when you receive the signed authorization from BLM, 
unless the grant includes a requirement for a written notice to 
proceed. If your grant contains a notice to proceed requirement, you 
may not initiate construction, operation, maintenance, or termination 
until BLM issues you a notice to proceed.


Sec. 2807.11  When must I contact BLM?

    Contact BLM:
    (a) At the times specified in your grant;
    (b) When your use requires a substantial deviation from the grant. 
``Substantial deviation'' means a deviation in location or authorized 
use which requires:
    (1) Construction or use outside the boundaries of the authorized 
right-of-way, or
    (2) Any change from or modification of the authorized use. 
Examples: adding equipment, overhead or underground lines, pipelines, 
structures or other facilities;
    (c) When there is a change of status in your application or grant, 
such as a changed legal mailing address, principal partners, financial 
conditions, or business or corporate status; and
    (d) When you submit a certification of construction, if required by 
the terms of your grant.


Sec. 2807.12  For what am I liable?

    (a) You are fully liable to the United States and to third parties 
for any damage or injury they incur in connection with your use and 
occupancy of the right-of-way.
    (b) You will be held to a standard of strict liability for any 
activity or facility associated with your right-of-way area which BLM 
determines presents a foreseeable hazard or risk of damage or injury to 
the United States. BLM will specify in the grant the activities and 
facilities to which such standards apply.
    (1) BLM will not impose strict liability for damage or injury 
resulting primarily from an act of war, an act of God or the negligence 
of the United States, except as otherwise provided by law.
    (2) As used in this section, ``strict liability'' extends to costs 
incurred by the federal government to control or abate conditions, such 
as fire or oil spills, which threaten life, property or the 
environment, even if the threat occurs on areas that are not under 
federal jurisdiction. Your grant will contain stipulations that 
describe the strict liabilities and the maximum amounts imposed. This 
liability is separate and apart from liability under other provisions 
of law.
    (c) If you cannot satisfy claims for injury or damage, any owners 
and all affiliates or subsidiaries of any holder of a grant, except for 
corporate stockholders, are jointly and severally liable to the United 
States.
    (d) The rules of subrogation apply in cases where a third party 
caused the damage or injury.

[[Page 32136]]

    (e) If BLM issues a grant to more than one holder, each is jointly 
and severally liable.
    (f) By accepting the grant, you agree to fully indemnify and hold 
the United States harmless for liability, damage or claims arising in 
connection with your use and occupancy of right-of-way areas. You are 
liable to the United States for up to $5 million for all damages, 
injuries, fees, and costs associated with your using, developing, and 
maintaining the grant and affected resources, regardless of fault. This 
financial limitation does not apply to the release or discharge of 
hazardous materials on or near the grant, or as otherwise allowed by 
law.
    (g) You are strictly liable for all costs above the $5 million 
limit which accrue because of negligence regarding hazardous 
substances.
    (h) State and local governments may be excepted from the 
requirements of this section as discussed in Sec. 2807.13(a) of this 
subpart. .


Sec. 2807.13  What liabilities do state and local governments have?

    (a) If you are a state or local government or its agency or 
instrumentality, you are liable to the fullest extent law allows at the 
time that BLM issues your grant. If you do not have the legal power to 
assume liability, you must repair damages or make restitution to the 
fullest extent of your powers.
    (b) BLM may require you to furnish a bond or other acceptable 
security to:
    (1) Cover any losses, damages, or injury to human health, the 
environment, and property related to your activities on the right-of-
way,
    (2) Cover damages or injuries resulting from the actual or 
threatened release or discharge of hazardous materials, and
    (3) Protect the liability exposure of the United States to claims 
by third parties arising out of your use of the right-of-way.
    (c) Based on your record of compliance and changes in risk or 
conditions, BLM may require you to increase or decrease the amount of 
your security.
    (d) The provisions of this section do not limit or exclude other 
remedies that the United States may seek.


Sec. 2807.14  What happens if BLM transfers management of the land on 
which my grant is located to another federal agency or outside of 
public ownership?

    (a) BLM may transfer administration of the grant to another federal 
agency, unless doing so would diminish your rights.
    (b) Where there is a proposal to transfer the land out of federal 
ownership, BLM may:
    (1) Transfer the land subject to your grant,
    (2) Transfer the land but retain management of your grant with the 
United States, or
    (3) Reserve to the United States the land encumbered by the grant.


Sec. 2807.15  Can BLM temporarily suspend my activities to protect 
public health and safety or the environment without providing an 
administrative hearing?

    (a) If BLM determines that you have violated one or more terms of 
your grant, we can order an immediate temporary suspension of 
activities within a grant area to protect the public health or safety 
or the environment. BLM can stop your activities before holding an 
administrative proceeding on the matter.
    (b) BLM may make the temporary suspension order orally or in 
writing to you, your contractor or subcontractor or to any 
representative, agent, employee, or contractor representing you or 
conducting the activity. When BLM makes the order, the activity must 
stop immediately. BLM will promptly confirm an order by sending to you 
or your agent at your address a written notice explaining the reasons 
for the suspension order.
    (c) The temporary order is effective until BLM issues another order 
permitting resumption of activities.
    (d) You may file a written request for permission to resume at any 
time after BLM issues the order. In the request, give the facts 
supporting your request and the reasons you believe that BLM should 
lift the order.
    (e) BLM must grant or deny your request within 5 working days after 
receiving it. If BLM does not respond within 5 working days, BLM has 
denied your request. You may then appeal under part 4 of this title.


Sec. 2807.16  Can BLM terminate or suspend my grant?

    (a) BLM may elect to suspend your grant if you fail to comply with 
applicable laws and regulations or any terms and conditions of the 
grant.
    (b) If your grant is an easement, BLM will refer the suspension or 
termination of the grant to the Office of Hearings and Appeals for a 
hearing before an Administrative Law Judge to determine whether or not 
the termination or suspension is justified.
    (c) A grant terminates when:
    (1) As described in the grant, a fixed or agreed-upon condition, 
event, or time occurs;
    (2) BLM accepts your written request or consents to terminate the 
grant; or
    (3) BLM determines that you have failed to comply with applicable 
laws and regulations or any terms and conditions of the grant;
    (d) Your failure to use your right-of-way for its authorized 
purpose for any continuous 5-year period (or for 2 years, if your grant 
is issued under part 2880 of this chapter), constitutes a presumption 
of abandonment. You may rebut the presumption by proving that you used 
the right-of-way or that your failure to use the right-of-way was due 
to circumstances beyond your control, such as acts of God, war, or 
casualties not attributable to you.


Sec. 2807.17  How will I know that BLM intends to suspend or terminate 
my grant?

    (a) Before BLM suspends or terminates your grant, you will receive 
a written notice stating that BLM intends to suspend or terminate your 
grant and giving the grounds for such action. You will have a 
reasonable opportunity to cure any non-compliance.
    (b) For grants issued before October 21, 1976, any subsequent 
grants issued as an easement, and grants issued under part 2880 of this 
chapter, BLM must give you written notice and refer the matter to the 
Office of Hearings and Appeals for a hearing before an Administrative 
Law Judge (ALJ). If the ALJ determines that grounds for suspension or 
termination exist and such action is justified, BLM will suspend or 
terminate the grant.


Sec. 2807.18  What happens to any improvements on my grant when it 
terminates?

    You must remove any structures and improvements within the right-
of-way before it terminates, unless BLM instructs you otherwise in 
writing. After removing the structures or improvements, you must 
remediate and restore the site to a condition satisfactory to BLM, 
including the removal and clean up of any hazardous materials. If you 
fail to remove all structures or improvements within a reasonable 
period, BLM may declare them to be the property of the United States. 
However, you still will remain liable for the costs of removing them 
and for restoring the site.


Sec. 2807.19  When must I amend my application or grant?

    Amend your application or grant when:
    (a) There is a substantial deviation in location or use. (See 
paragraph (b) of Sec. 2808.11.) The requirements for an amended 
application are the same as

[[Page 32137]]

those for a new application, including cost reimbursement according to 
Sec. 2804.14.
    (b) Your grant was issued before October 21, 1976, and you want to 
change your use or the terms and conditions of the grant. If BLM 
approves your application, you will receive a new right-of-way under 43 
U.S.C. 1761 et seq. and this part.
    (c) Your grant must be amended to allow realignment of a railroad 
and appurtenant communication facilities. BLM must issue a decision 
within 6 months after you file the application. BLM may include in any 
new grant the same terms and conditions as the original grant 
pertaining to payment of annual rents, duration of the grant, and the 
nature of interest held, if:
    (1) These terms are in the public interest,
    (2) The lands are of approximately equal value, and
    (3) The lands involved are not within an incorporated community.


Sec. 2807.20  May I assign my grant?

    (a) If BLM approves your request, you may assign a grant in whole 
or in part.
    (b) If you want to assign your grant, the proposed assignee must 
file an application under the same procedures as for a new grant. (See 
subpart 2804 of this part.)
    (c) Additionally, the request for assignment must include the 
following:
    (1) Documentation that you, the assignor, agree to the assignment; 
and
    (2) A stipulation that the assignee agrees to comply with and to be 
bound by the terms and conditions of the grant to be assigned and all 
applicable laws and regulations.
    (d) BLM will not recognize an assignment until it approves the 
assignment in writing. BLM may modify or add bonding and other 
requirements, including additional terms and conditions, to the grant 
when approving the assignment. BLM may decrease or increase rents if 
the new holder qualifies for an exemption or reduction and the old 
holder did not or vice versa.
    (e) The processing times and conditions described at 
Sec. 2804.20(c) apply to applications for assignment.


Sec. 2807.21  What will BLM charge for reviewing a request for 
assignment?

    You must reimburse BLM in advance for the administrative costs of 
processing the proposed assignment in accordance with the work hours 
specified in the category descriptions at Sec. 2804.14.


Sec. 2807.22  Can I renew my grant?

    (a) If your grant provides for renewal, BLM will renew the grant if 
you are using, maintaining, and operating the project or facility for 
the purposes authorized in the original grant and if you are operating 
and maintaining the grant according to its provisions and to the 
applicable laws and regulations.
    (b) If your grant does not provide for renewal, you may ask BLM to 
renew the grant. Send BLM your request, in writing, at least 120 days 
before your grant expires. You will need to show that you are 
maintaining and operating the project or facility for the purposes 
authorized in the expiring grant and that you are operating and 
maintaining the grant according to its provisions and to the applicable 
laws and regulations. BLM has the discretion to renew the grant if 
doing so is in the public interest.
    (c) In either case, paragraph (a) or (b) of this section, you 
should submit an application containing the same information necessary 
for a new application. (See subpart 2804 of this part.) You must 
reimburse BLM in advance for the administrative costs of processing the 
renewal in accordance with Sec. 2804.14.
    (d) BLM will review your application and determine the applicable 
terms and conditions.

Subpart 2808--What Do I Need To Know About Trespass?


Sec. 2808.10  What is trespass?

    (a) Trespass is using, occupying, or developing the public lands 
without authorization or using, occupying, and developing them in a way 
that is beyond the scope and specific limitations of your 
authorization. Trespass includes acts or omissions causing undue or 
unnecessary degradation to the occupied public lands.
    (b) There are two kinds of trespass, willful and non-willful.
    (1) ``Willful trespass'' means voluntary or conscious trespass and 
actions taken with criminal or malicious intent. It includes a 
consistent pattern of actions taken with knowledge, even if those 
actions are taken in the belief that the conduct is reasonable or 
legal.
    (2) ``Non-willful trespass'' means a trespass committed by mistake 
or inadvertence.


Sec. . 2808.11  What will BLM do if it determines that I am in 
trespass?

    (a) BLM will notify you in writing of the trespass and indicate 
your liability. Your liability includes:
    (1) Reimbursing the United States for all costs incurred in 
investigating and terminating the trespass;
    (2) Paying the rental value of the lands, as provided for in 
subpart 2806 of this part, for the current and past years of trespass, 
or, where applicable, the cumulative value of the current use fee, 
amortization fee, and maintenance fee for unauthorized use of any BLM-
administered road; and
    (3) Rehabilitating, restoring, and stabilizing any damaged lands or 
resources. If you do not rehabilitate, restore, and stabilize the lands 
and resources within the time set by BLM in the notice, you will be 
liable for the United States's costs in rehabilitating, restoring, and 
stabilizing the lands and resources.
    (b) BLM may assess penalties as follows:
    (1) For all non-willful trespass which is not resolved within 30 
days by meeting one of the conditions identified in Sec. 9239.7-1 of 
this chapter, the penalty is an amount equal to the rental value; and, 
for roads, an amount equal to the charges for road use, amortization, 
and maintenance which have accrued since the trespass began;
    (2) For repeated non-willful or willful trespass, the penalty is an 
amount that is two times the rental value; and, for roads, an amount 
two times the charges for road use, amortization and maintenance which 
have accrued since the trespass began.
    (c) The penalty will not be less than the processing fee for a 
Category I application (see Sec. 2804.14) for non-willful trespass or 
less than three times this value for repeated non-willful or willful 
trespass. You must pay whichever is the higher of the computed penalty 
or the minimum penalty amount.
    (d) In addition to civil penalties, you may be tried before a 
United States magistrate and fined no more than $1,000 or imprisoned 
for no more than 12 months, or both, for a knowing and willful 
trespass. (43 U.S.C. 1733(a))
    (e) Until you satisfy your liability, BLM may refuse to process any 
applications for any activities on BLM land that you have pending.
    (f) You may appeal a trespass decision under part 4 of this title.
    (g) Nothing in this section limits your liability under any other 
state or federal law.


Sec. 2808.12  May I receive a grant if I am in trespass?

    The only way to find out is to apply under the procedures described 
at subpart 2804 of this part. BLM will process your application as if 
it were a new use.

[[Page 32138]]

Subpart 2809--Are There Any Special Requirements Related To Issuing 
Grants to Federal Agencies?


Sec. 2809.10  Can federal agencies get a right-of-way grant?

    Yes. Any federal agency can apply for a grant under the procedures 
contained in subpart 2804 of this part.


Sec. 2809.11  What will the grant contain?

    The grant will contain the same terms and conditions as other 
grants governed by this part to the extent possible. It will include 
any terms and conditions appropriate for federal agencies. The grant 
does not have to conform to the agency's proposal and may contain such 
terms, conditions, and stipulations as BLM deems appropriate.


Sec. 2809.12  Can BLM suspend or terminate the grant?

    BLM may suspend or terminate the grant only if its terms and 
conditions allow it or if the agency head holding the grant consents to 
it.
    2. Revise part 2880 to read as follows:

PART 2880--RIGHTS-OF-WAY UNDER THE MINERAL LEASING ACT

Subpart 2881--What General Information Do I Need To Know About the 
Regulations Concerning MLA Grants and Permits?

Sec.
2881.5  What definitions do I need to know to understand these 
regulations?
2881.7  What is the scope of these regulations?
2881.8  What grants are covered by these regulations?
2881.9  Does BLM have the authority to ask me for the information 
required in these regulations?
2881.10  Severability

Subpart 2882--What Lands Are Available for Oil and Natural Gas 
Pipelines and Their Related Facilities?

Subpart 2883--What Qualifications Do I Need To Have To Hold an MLA 
Grant or Temporary Use Permit?

2883.10  Who may hold a right-of-way grant under the Mineral Leasing 
Act?
2883.11  Who is ineligible to hold an MLA grant or permit?
2883.12  How do I prove I meet the qualifications?
2883.13  What happens if BLM issues me an MLA grant or permit and 
later determines that I am not qualified to hold it?

Subpart 2884--How Do I Apply for an MLA Grant or Permit?

2884.10  What should I do before I file my application?
2884.11  What information do I need to provide in my application?
2884.12  Is there a filing fee for my application?
2884.13  What is a master agreement and what must it contain?
2884.14  Are there any special payment requirements related to 
Category IV applications?
2884.15  What happens if there are two or more competing 
applications for the same pipeline facility or system?
2884.16  Where do I file my application for an MLA grant or permit?
2884.17  What are the public notification requirements for my 
application?
2884.18  How will BLM process my application?
2884.19  Can BLM ask me for additional information?
2884.20  Can BLM reject my application?
2884.21  Do I owe any money if BLM rejects my application or if I 
withdraw my application?
2884.22  What may I do on the proposed right-of-way while BLM is 
processing my application?
2884.23  When will BLM issue the grant or permit?

Subpart 2885--What Are the Terms and Conditions of MLA Grants and 
Permits?

2885.10  When is the MLA grant or permit effective?
2885.11  What are the terms and conditions of the grant or permit?
2885.12  How much does it cost to hold a grant or permit?
2885.13  Who is liable for payments?
2885.14  What happens if I default on my rental and other payments?

Subpart 2886--What Can I Do on My Grant or Permit Once I Obtain It?

2886.10  When can I start activities under my grant or permit?
2886.11  Who regulates my activities?
2886.12  What happens if I need a wider right-of-way in limited 
areas?
2886.13  When must I contact BLM?
2886.14  When can BLM suspend my activities?
2886.15  For what am I liable?
2886.16  What happens if BLM transfers management of the land on 
which my grant is located to another agency or outside public 
ownership?
2886.17  When can BLM terminate or suspend temporary use permits?
2886.18  When can BLM suspend or terminate my grant or permit?
2886.19  What happens to any improvements on my grant when it 
terminates?

Subpart 2887--What Information Do I Need To Know About Amending, 
Assigning or Renewing My MLA Grant or Permit?

2887.10  What conditions require amending a grant?
2887.11  May I assign my grant?
2887.12  May I renew my grant?

Subpart 2888--What Do I Need To Know About Trespass?

    Authority: 30 U.S.C. 185, unless otherwise noted.

Subpart 2881--What General Information Do I Need To Know About MLA 
Grants and Permits?


Sec. 2881.5  What definitions do I need to know to understand these 
regulations?

    Unless a term is otherwise defined in this section, the definitions 
appearing in part 2800 apply to this part. In addition, as used in this 
part, the term:
    (a) Act means section 28 of the Mineral Leasing Act of 1920, as 
amended (30 U.S.C. 185).
    (b) Agency head means the head of any federal department or 
independent federal office or agency, other than the Secretary of the 
Interior, who has jurisdiction over federal lands.
    (c) Casual use means activities and practices which do not 
ordinarily cause any appreciable disturbance or damage to the public 
lands, resources or improvements and which do not require a right-of-
way grant or temporary use permit under this title. Example: activities 
which do not involve the use of explosives or heavy equipment and which 
do not involve vehicle movement, except over already established roads 
and trails.
    (d) Federal lands means all lands owned by the United States, 
whether surface or mineral estate or both, without reference to how the 
lands were acquired or what federal agency manages the lands, except 
lands in the National Park System, lands held in trust for an Indian or 
Indian tribe, lands managed by the Tennessee Valley Authority, and 
lands on the Outer Continental Shelf.
    (e) Field examination generally means a one-day trip, in one 
vehicle, from the office to the site of the right-of-way proposal, 
regardless of the number of specialists traveling in the vehicle. When 
operational efficiency dictates separate trips, BLM will include the 
efficient use of hourly time required to verify or collect the data 
needed to process the application, or monitor the grant.
    (f) Oil and gas means oil, natural gas, synthetic liquid, or 
gaseous fuels, or any refined product produced from them.
    (g) Pipeline means a line traversing federal lands for 
transportation of oil or gas. The term includes feeder lines, trunk 
lines, and related facilities, but does not include a lessee's or lease 
operator's production facilities located on his lease.
    (h) Pipeline system means all facilities, whether or not located on 
federal lands, used by a holder in connection with the construction, 
operation, maintenance, or termination of a pipeline.

[[Page 32139]]

    (i) Production facilities means a lessee's or lease operator's 
pipes and equipment used on the leasehold to aid in extracting, 
processing, and storing oil and gas. The term includes:
    (1) Storage tanks and processing equipment;
    (2) Gathering lines upstream from such tanks and equipment, in the 
case of gas, upstream from the point of delivery; and
    (3) Pipes and equipment, such as water and gas injection lines, 
used in the production process for purposes other than carrying oil and 
gas downstream from the wellhead.
    (j) Related facilities means those structures, devices, 
improvements, and sites, the substantially continuous use of which is 
necessary for the operation or maintenance of a pipeline, which are 
located on federal lands, and which are authorized under the Act, 
including but not limited to: supporting structures; airstrips; roads; 
campsites; pump stations, including associated heliports, structures, 
yards, and fences; valves and other control devices; surge and storage 
tanks; bridges, monitoring, and communication devices and structures 
housing them; terminals, including structures, yards, docks, fences, 
and storage tank facilities; retaining walls, berms, dikes, ditches, 
cuts and fills; structures and areas for storing supplies and 
equipment. Related facilities may be connected or not connected or 
contiguous or not contiguous to the pipe.
    (k) Temporary use permit means a revocable nonpossessory privilege 
to use specified federal lands near a right-of-way to construct, 
operate, maintain, or terminate a pipeline or to protect the natural 
environment and public safety.


Sec. 2881.7  What is the scope of these regulations?

    The regulations in this part apply to:
    (a) Issuing, administering, amending, assigning, renewing, and 
terminating new or existing grants and temporary use permits for 
pipelines to transport oil, natural gas, synthetic liquid or gaseous 
fuels, or any refined product produced from these materials. They apply 
when the federal land involved is either under the jurisdiction of BLM 
or under the jurisdiction of more than one federal agency;
    (b) Facilities on a federal oil and gas lease owned by a third 
party, who is not the lessee or lease operator, and oil and gas 
pipeline systems owned by the lessee or lease operator that are 
downstream from storage tanks or a metering device; and
    (c) All grants and permits BLM previously issued under section 28 
of the Act and to those issued by the Secretary of the Interior or his 
delegate in connection with the Trans-Alaska Oil Pipeline System.


Sec. 2881.8  What grants are not covered by these regulations?

    The regulations in this part do not apply to:
    (a) Federal land which is under the jurisdiction of a single 
federal department or agency, including bureaus, and agencies within 
the Department of the Interior, other than BLM;
    (b) Right-of-way grants for federal departments or agencies. Such 
grants are subject to the regulations at part 2800 of this chapter;
    (c) Production facilities owned by an oil and gas lessee or lease 
operator, if within the federal oil and gas lease, because the lease 
authorizes these facilities; and
    (d) Grants issued under the authority of the Federal Land Policy 
and Management Act of 1976, which are addressed under part 2800 of this 
chapter.


Sec. 2881.9  Does BLM have the authority to ask me for the information 
required in these regulations?

    (a) Yes. The Office of Management and Budget has approved the 
information collection requirements contained in Part 2880 under 
clearance 44 U.S.C. 3507 and assigned clearance number 1004-0060 (for 
Form SF-299) and 1004-______ to them. BLM collects the information to 
determine if using particular parcels of the public lands for right-of-
way corridors is appropriate. You must respond to get a benefit.
    (b) Send comments regarding any aspect of the information 
collection, including suggestions for reducing the collection burden, 
to the Information Collection Clearance Officer, Bureau of Land 
Management, 1849 C St., N.W., Mail Stop 401 LS, Washington, D. C. 
20240.


Sec. 2881.10  Severability.

    If any provisions of the rules in this part or their applicability 
to any person or circumstances are held invalid, the remainder of these 
rules and their applicability to other people or circumstances shall 
not be affected.

Subpart 2882--What Lands Are Available for MLA Grants and Permits?

    BLM uses the same criteria to determine whether lands are available 
for oil and gas rights-of-way as it does to determine whether lands are 
available for other rights-of-way. (See subpart 2802, part 2800, of 
this chapter.) Where the proposed right-of-way involves additional 
federal lands or lands managed by two or more agencies other than BLM, 
such lands may also be available for such grants.

Subpart 2883--What Qualifications Do I Need To Hold an MLA Grant or 
Permit?


Sec. 2883.10  Who may hold a right-of-way grant under the MLA?

    (a) To hold such a grant, you must be:
    (1) Able to show that you are economically and technically capable 
of constructing, operating, and maintaining the proposed facilities; 
and
    (2) A United States citizen; or
    (3) An association of such citizens; or
    (4) A corporation organized under the laws of the United States, or 
of any state therein; or
    (5) A state or local government.


Sec. 2883.11  Who is not eligible to hold an MLA right-of-way grant or 
temporary use permit?

    Aliens may not acquire or hold any direct or indirect interest in 
MLA grants or temporary use permits, except as otherwise provided by 
treaty or similar agreement.


Sec. 2883.12  How do I prove I meet the qualifications?

    (a) If you are a private individual, BLM requires no proof of 
citizenship with your application.
    (b) If you are a partnership, corporation, association, or other 
business entity, submit the following information in your application:
    (1) The identity of the participants in the business entity;
    (2) The name, address, and citizenship of each participant 
(partner, associate, or other);
    (3) If a corporation, the name, address, and citizenship of each 
shareholder owning 3 percent or more of each class of shares, together 
with the number and percentage of any class of voting share of the 
entity which each shareholder is authorized to vote; and
    (4) If a corporation, the name and address of each affiliate 
controlling or controlled by the entity, either directly or indirectly. 
Where the corporation controls an affiliate, disclose the number of 
shares and the percentage of each class of voting stock of the 
corporation owned, directly or indirectly, by the affiliate.
    (c) If you already have supplied this information to BLM and the 
information remains accurate, you need only reference the serial number 
under which it is filed.

[[Page 32140]]

Sec. 2883.13  What happens if BLM issues me an MLA grant or permit and 
later determines that I am not qualified to hold it?

    BLM will terminate your grant or permit, subject to your right of 
appeal to the Interior Board of Land Appeals under part 4 of this 
title.

Subpart 2884--How Do I Apply for an MLA Grant or Permit?


Sec. 2884.10  What should I do before I file my application?

    (a) When you determine that an oil and gas pipeline project would 
cross lands under BLM jurisdiction or under the jurisdiction of two or 
more federal agencies, you should notify BLM or the Secretary of the 
Interior.
    (b) Before filing an application with BLM, you are strongly 
encouraged to visit or telephone the BLM field office having 
jurisdiction over the lands affected by your application to identify 
potential routing and other constraints, determine whether or not the 
lands are located within a designated or existing right-of-way 
corridor, tentatively schedule the processing of your application, get 
information about qualifications for MLA grants and permits, and 
identify any work which will require obtaining one or more temporary 
use permits. BLM may share this information with federal, state, and 
local government agencies to ensure that these agencies are aware of 
any authorizations you may need from them.


Sec. 2884.11  What information do I need to provide in my application?

    (a) File your application on Form SF-299 or as part of an 
Application to Drill or Sundry Notice. Include a complete description 
of the project, including the exact diameters and locations of the 
pipelines, proposed construction techniques, and the estimated life of 
the facility. Simultaneously file any applications with other federal 
agencies, such as the Federal Energy Regulatory Commission, for 
licenses, certificates, or other authorities involving a right-of-way 
with your application to BLM.
    (b) BLM may request you to submit additional information beyond 
that required in the form to assist in processing your application. 
This information may include the following:
    (1) Any federal and state approvals required for the proposal,
    (2) A description of the alternative route(s) and mode(s) 
considered when developing the proposal,
    (3) Copies of or reference to similar applications or grants you 
have submitted or hold,
    (4) A statement of need and economic feasibility,
    (5) A statement of the environmental, social and economic effects 
of the proposal, and
    (6) Your technical and financial capabilities to implement the 
project.
    (c) Before BLM reviews your request for a grant or grant renewal, 
you must submit the following information and material:
    (1) Conditions for, and agreements among, owners or operators to 
add pumping facilities, looping, or otherwise to increase the pipeline 
or terminal's throughput capacity in response to actual or anticipated 
increases in demand;
    (2) Conditions for adding or abandoning intake, offtake, or storage 
points or facilities;
    (3) Minimum shipment or purchase tenders;
    (4) Evidence of your technical and financial capabilities to 
implement the project; and
    (5) Other information necessary to process your application.
    (d) Should conditions or information change, promptly notify BLM 
and make the necessary changes to your application. Failing to do so 
may result in BLM's rejecting or revoking your application.


Sec. 2884.12  Is there a filing fee for my application?

    (a) Yes. You must file a non-refundable processing fee with the 
application. The fee reimburses BLM for the costs of processing your 
application, including the costs of preparing any report or documents 
required by the National Environmental Policy Act, 42 U.S.C. 4321 et 
seq.
    (b) BLM categorizes applications according to the following 
criteria:
    (1) Category I. Either BLM has on hand or you supply the data 
necessary to process your application; neither a field examination nor 
land use plan amendment is needed; and the estimated processing time 
does not exceed 24 work hours for all BLM personnel involved in 
reviewing the application. Cost: Refer to the MLA fee schedule, 
available from any BLM field office.
    (2) Category II. Same as Category I, plus one field examination is 
needed to verify existing information; and the estimated processing 
time, including the time required to conduct the field exam, falls 
between 25 and 36 work hours for all BLM personnel involved in 
reviewing the application. Cost: Refer to the MLA fee schedule, 
available from any BLM field office.
    (3) Category III. Category I, plus two field examinations are 
needed to verify existing information; and the estimated processing 
time, including the time required to conduct the field exams, falls 
between 37 and 50 work hours for all BLM personnel involved in 
reviewing the application. Cost: Refer to the MLA fee schedule, 
available from any BLM field office.
    (4) Category IV. Original data must be collected; a plan amendment 
may be needed; two or more field examinations are needed; and the 
estimated processing time, including the time required for the field 
exams, is more than 50 work hours for all BLM personnel involved in 
reviewing the application. Cost: Full actual costs.
    (5) Master agreement. Instead of one of categories I through IV, 
you may enter into an agreement with BLM to fully reimburse BLM for 
actual processing costs. The agreement should be written to include any 
applications you may subsequently file within the same area.
    (c) The costs for Categories I, II, and III are contained in a fee 
schedule that BLM maintains. BLM updates these fees each calendar year, 
based on the previous year's change in the Implicit Price Deflator-
Gross Domestic Product, measured second quarter to second quarter. BLM 
will round changes to the nearest dollar. You may obtain a copy of the 
revised schedule from any BLM State or Field Office or by writing: 
Director, BLM, 1849 C St., N.W., Mail Stop 1000 LS, Washington, D. C. 
20240. BLM will post the schedule to the BLM National HomePage on the 
internet, at http://www.blm.gov.
    (d) After initially reviewing your application, BLM will determine 
the category based on estimated costs of processing the application. 
BLM will give you a written decision as to the processing category, and 
you must submit the payment before BLM begins processing your 
application. You may appeal the decision determining the category under 
part 4 of this title.
    (e) If you overpay processing costs, BLM will refund you the amount 
that you overpaid and adjust your next bill or, if you request it in 
writing, apply the overpayment to rentals or monitoring costs.
    (f) BLM may change the processing cost category to Category IV 
while processing your application if preparing an environmental impact 
statement becomes necessary. BLM will send you a written decision of 
the change and you may appeal this decision under part 4 of this title. 
While your appeal is pending, BLM will not process your application 
unless you have paid the processing fee.
    (g) If you have a grant or permit relating to the Trans-Alaska 
Pipeline System, BLM will send you a written

[[Page 32141]]

statement of reimbursable costs by the sixtieth day after the close of 
each quarter. Quarters end on the last day of March, June, September, 
and December.


Sec. 2884.13  What is a master agreement and what must it contain?

    (a) See paragraphs (a) and (b) of Sec. 2804.17 of this chapter for 
information about specifications and requirements for master 
agreements.
    (b) Your signature on a master agreement constitutes your agreement 
with the category determination.


Sec. 2884.14  Are there any special payment requirements related to 
Category IV applications?

    Yes. If you have a Category IV application, you must also:
    (a) Reimburse the United States for the full actual administrative 
and other costs of processing the application and monitoring the grant. 
BLM will credit your application processing fee toward your total cost 
reimbursement obligation; and
    (b) For additional information, see Sec. 2804.16 of this chapter.


Sec. 2884.15  What happens if there are two or more competing 
applications for the same pipeline facility or system?

    If this happens,
    (a) Categories I through III: You must reimburse BLM for processing 
costs as if the other application had not been filed.
    (b) Category IV: You are responsible for the costs identifiable 
with your application. If BLM cannot readily separate costs, such as 
costs associated with preparing environmental documents, you must pay 
an equal share or a proportion agreed to in writing among all 
applicants and BLM. BLM will not do any work without an advance 
payment.
    (c) Who determines whether competition exists. BLM will determine 
whether or not the applications for right-of-way grants are part of one 
right-of-way system or are competing applications for the same system.
    (d) Liability. Each applicant is jointly and severally liable for 
costs of processing the application for the entire system.


Sec. 2884.16  Where do I file my application for an MLA grant or 
permit?

    (a) If BLM has exclusive jurisdiction over the lands involved, file 
your application with the appropriate BLM State Office.
    (b) If another federal agency has exclusive jurisdiction over the 
land involved, file your application with that agency and refer to 
their regulations for information about their requirements.
    (c) If there are no BLM lands involved but the lands are under 
multiple federal jurisdiction, you may file your application with any 
BLM office in the vicinity of the project. BLM will notify you where to 
direct future communications about the project. See also Sec. 2804.11 
of this chapter.
    (d) If several federal agencies, including BLM, have jurisdiction, 
file your application at the most convenient BLM office having 
jurisdiction over a portion of the federal lands. BLM will notify you 
where to direct all future communications concerning the project. See 
also Sec. 2804.11(a) of this chapter.


Sec. 2884.17  What are the public notification requirements for my 
application?

    (a) When BLM receives your application, it will publish a notice in 
a general circulation newspaper in the vicinity of the lands involved 
and in the Federal Register. BLM may not publish this notice for 
pipeline projects which it believes will have only minor impacts. The 
notice will contain:
    (1) A description of the pipeline systems and such other 
information as BLM considers pertinent, and
    (2) A statement of where the application and related documents are 
available for interested persons to review.
    (b) BLM will send copies of the notice for review and comment to 
the:
    (1) Governor of each state within which the pipeline system may be 
located, and
    (2) Head of each local government or jurisdiction within which the 
pipeline system may be located.
    (c) BLM will also refer the application to the:
    (1) Heads of other federal agencies whose jurisdiction includes 
areas through which the right-of-way would cross, for consultation and 
other purposes; and
    (2) House Committee on Interior and Insular Affairs and the Senate 
Committee on Energy and Natural Resources, if your application involves 
a pipeline that is 24 inches or more in diameter.
    (d) BLM may hold public meetings on your application if there is 
sufficient interest to warrant the time and expense of such meetings. 
BLM will publish a notice of any such meetings in the Federal Register 
or in local newspapers.


Sec. 2884.18  How will BLM process my application?

    BLM processes all applications for right-of-way grants and 
temporary use permits in the manner described at Sec. 2804.20 of this 
chapter. The customer service standard, described in Sec. 2804.20(c) of 
this chapter, applies to processing MLA applications.


Sec. 2884.19  Can BLM ask me for additional information?

    (a) Yes. BLM may ask you for additional information in order to 
process your application. This may include, among other information, a 
detailed construction, operation, rehabilitation, and environmental 
protection plan, a Plan of Development, and a cultural resources 
inventory.
    (b) If BLM needs more information, we will provide you with a 
written request and give you a written notice of any deficiencies in 
the information that you provided and any additional information that 
BLM needs. You will have a reasonable opportunity to file corrections.
    (c) BLM may also ask other federal agencies for additional 
information, for conditions or stipulations which the grant should 
contain, and for advice as to whether or not to issue the grant.


Sec. 2884.20  Can BLM reject my application?

    Yes. See Sec. 2804.22 of this chapter.


Sec. 2884.21  Do I owe any money if BLM rejects my application or if I 
withdraw my application?

    Yes. See Sec. 2804.23 of this chapter. You owe the actual amount, 
as opposed to a reasonable amount, that BLM expends in processing your 
application.


Sec. 2884.22  What may I do on the land while BLM is processing my 
application?

    You may not conduct any activities other than casual use on the 
lands under application. You must get prior approval from BLM before 
conducting any activities that are not casual use.


Sec. 2884.23  When will BLM issue the grant or permit?

    If the grant involves:
    (a) A pipeline 24 inches or more in diameter, BLM will not issue or 
renew the grant until after we notify the Congress;
    (b) Lands not under BLM jurisdiction, BLM will not issue or renew 
the grant or permit until the heads of the other agency or agencies 
involved have concurred;
    (c) Lands managed by several federal agencies, including BLM, BLM 
will not issue or renew the grant or permit until the Secretary of the 
Interior has consulted with these agencies. BLM may issue or renew the 
grant or permit without their concurrence, but not through lands within 
a federal reservation, if doing so would be inconsistent with the 
purposes of the reservation; and

[[Page 32142]]

    (d) Lands managed by BLM, we will issue or renew the grant or 
permit when we approve your application.

Subpart 2885--What Are the Terms and Conditions of MLA Grants and 
Permits?


Sec. 2885.10  When is the MLA grant or permit effective?

    See Sec. 2805.11 of this chapter.


Sec. 2885.11  What are the terms and conditions of the grant or permit?

    The general provisions at Secs. 2805.10, 2805.12, and 2805.13 of 
this chapter apply. In addition, an MLA grant or permit contains the 
following requirements:
    (a) How long you may use the grant or permit. Each grant will have 
a specific time limit, not to exceed 30 years. BLM will consider the 
following factors in establishing the time limit:
    (1) Cost of the facility,
    (2) Its useful life,
    (3) The public purpose served, and
    (4) Any potentially conflicting land uses.
    (b) Terms and conditions of use. By accepting the grant or permit, 
you agree to comply with and be bound by its terms and conditions and 
by the regulations in subpart 2805, part 2800, of this chapter, the 
regulations in this part, and applicable laws. You must comply with the 
terms and conditions found at Sec. 2805.10(c) of this chapter. In 
addition, you must:
    (1) Construct, operate, and maintain the pipeline system, or a 
logical part of the system of which this pipeline right-of-way is a 
part, as BLM determines, as a common carrier. This means that you and 
your operators and joint owners must accept, convey, transport, or 
purchase all oil and gas delivered to the pipeline system without 
regard to where the oil and gas was produced, i.e., whether on federal 
or non-federal lands. See paragraph (c) of this section for the 
exception;
    (2) Within 30 days after BLM requests it, file rate schedules and 
tariffs for oil and gas, or derivative products, transported by the 
pipeline system as a common carrier with the agency prescribed by the 
authorized officer, and provide proof to BLM that you have made the 
required filing;
    (3) With certain exceptions, not export domestically produced crude 
oil without Presidential approval (30 U.S.C. 185 and 50 U.S.C. 2401);
    (4) Not exceed a right-of-way width of 50 feet plus the ground 
occupied by the pipeline and related facilities without BLM's written 
authorization;
    (5) Not use the grant area for any use other than that authorized 
by the grant. If other pipelines or looping lines are required, first 
secure BLM's written authorization for the activity; and
    (6) If appropriate, not construct or use the land until you submit 
to BLM a detailed construction, operation, rehabilitation, and 
environmental protection plan and receive a notice to proceed.
    (c) The common carrier provisions of paragraph (b)(1) of this 
section do not apply to natural gas pipelines subject to regulation 
under the Natural Gas Act or by state or municipal agencies with the 
authority to set rates and charges for the sale of natural gas to 
consumers within the state or municipality.
    (d) BLM may require you to certify that you have a surety bond or 
other acceptable security to cover any losses, damages, or injury to 
human health, the environment, or property resulting from or related to 
your activities on the right-of-way. Liability coverage includes 
potential damages or injuries resulting from actual or threatened 
discharges or releases of hazardous materials. Based on changes in 
conditions or risk and your record of compliance, BLM may require a 
decrease or increase in the amount of your security.


Sec. 2885.13  How much does it cost to hold a grant or permit?

    In addition to the cost reimbursement requirements described at 
Sec. 2883.13(a) you must pay rent and monitoring costs.
    (a) Rents. The provisions for paying rents for MLA grants are the 
same as those for other grants, as given at Secs. 2806.14, 2806.16, and 
2806.28 of this chapter, except that you must always pay full rent. 
There are no reductions or waivers to paying rents for MLA grants.
    (b) Monitoring costs. You must reimburse BLM for any costs we incur 
in monitoring your construction, operation, maintenance, and 
termination within grant areas and in protecting and rehabilitating the 
affected area. There are no exceptions to paying monitoring costs. BLM 
uses the same category for monitoring as it does for determining 
processing costs for each application. (See paragraphs (c) and (d) of 
this section.) As with the application processing costs (see 
Sec. 2884.12), BLM updates this schedule annually, based on the 
previous year's change in the Implicit Price Deflator-Gross Domestic 
Product, second quarter to second quarter. BLM rounds these changes up 
to the nearest dollar. The monitoring cost schedule is available from 
any BLM State or field office or by writing: Director, Bureau of Land 
Management, 1849 C St., N.W., Mail Stop 1000LS, Washington, D.C. 20240. 
BLM will post this schedule to the BLM Homepage on the Internet, http:/
/www.blm.gov.
    (c) Categories I through III. For Categories I through III, you 
must submit monitoring fees with your written acceptance of the terms 
and conditions of the grant. BLM will not accept your written 
acceptance of the grant until you pay the fees.
    (d) Category IV. For Category IV monitoring costs and project 
agreements, you must submit your written acceptance of the terms and 
conditions of the grant and the estimated costs of BLM's administering 
and monitoring your grant. You must periodically pay the estimated 
costs in advance. If your payments exceed the actual cost, BLM will 
reimburse you the difference or adjust the next billing to reflect the 
overpayment.


Sec. 2885.14  Who is liable for payments?

    See subpart 2804, part 2800, of this chapter.


Sec. 2885.15  What happens if I default on my rental and other 
payments?

    See Sec. 2806.12 of this chapter.

Subpart 2886--What Can I Do Once I Get My MLA Grant or Permit?


Sec. 2886.10  When can I start activities under my grant or permit?

    See Sec. 2807.10 of this chapter. Before you begin operations, you 
must send BLM a certification of construction, verifying that the 
pipeline system has been constructed and tested according to the terms 
of the grant or permit and is in compliance with all required plans, 
specifications and provisions of federal and state laws and 
regulations.


Sec. 2886.11  Who regulates my activities?

    The head of the agency having administrative jurisdiction over the 
federal lands involved has the authority to regulate your activities, 
unless BLM and the agency head reach another agreement.


Sec. 2886.12  What happens if I need a wider right-of-way in limited 
areas?

    You may apply to BLM for a wider right-of-way in limited areas to 
operate and maintain the pipeline after you construct it, protect the 
environment, or provide for public safety. BLM will send you a written 
report of its findings, either authorizing or disapproving your request 
for a wider right-of-way.


Sec. 2886.13  When must I contact BLM?

    See Sec. 2807.11 of this chapter.

[[Page 32143]]

Sec. 2886.14  When can BLM suspend my activities?

    See Sec. 2807.15 of this chapter. The same provisions apply to 
temporary use permits issued under this part.


Sec. 2886.15  For what am I liable?

    See Sec. 2807.12 of this chapter.


Sec. 2886.16  What happens if BLM transfers management of the land on 
which my grant or permit is located to another agency or outside public 
ownership?

    See Sec. 2807.14 of this chapter. The same provisions apply to 
temporary use permits issued under this part.


Sec. 2886.17  When can BLM suspend or terminate temporary use permits?

    (a) BLM can suspend or terminate your temporary use permit when it 
determines that you have:
    (1) Not complied with any term, condition, or stipulation in the 
grant or with applicable laws or regulations; or
    (2) Deliberately failed to use the grant for the purpose for which 
BLM issued it; or
    (3) Abandoned the grant.
    (b) BLM will send you a written notice of non-compliance. You may 
file a written request to the next higher level of authority asking for 
a review of the notice. BLM will notify you within 10 working days of 
receipt of the request. BLM will review the situation that prompted the 
notice and provide you with a written determination of our findings 
within a reasonable period of time.
    (c) If the decision is adverse to you, you may appeal it under part 
4 of this title.


Sec. 2886.18  When can BLM suspend or terminate my grant or permit?

    (a) If BLM determines your activities are endangering public 
health, safety or the environment, we may order you to suspend those 
activities immediately and to take immediate remedial action. BLM may 
give this order orally or in writing to you, your representative, or a 
contractor or subcontractor doing work for you, whether or not any 
action is being taken by other federal or state agencies. The activity 
must cease immediately. If BLM gives you the order orally, we will 
follow up as soon as practicable with a written notice.
    (b) In cases where public health, safety, or the environment are 
not being endangered, BLM will give you written notice when we intend 
to suspend or terminate your grant. BLM will refer the matter to the 
Office of Hearings and Appeals. An Administrative Law Judge in the 
Office of Hearings and Appeals will determine when grounds for 
suspension or termination exist, according to the regulations set out 
in part 4 of this title. The Administrative Law Judge's decision 
determines BLM's action on whether or not to suspend or terminate the 
grant or permit.


Sec. 2886.19  What happens to any improvements on my grant when it 
terminates?

    See Sec. 2807.18 of this chapter.

Subpart 2887--What Information Do I Need To Know If I Want to 
Amend, Assign, or Renew My MLA Grant?


Sec. 2887.10  What conditions require amending a grant?

    (a) You must apply for an amendment when you want to change the 
route of your pipeline or your use of the federal lands. You must apply 
for an amendment under the provisions of Sec. 2807.19 of this chapter. 
Any unauthorized activity may be subject to prosecution under the 
applicable laws or to trespass charges under the provisions of subpart 
2888 of this chapter.
    (b) If you hold a pipeline grant issued before November 16, 1973, 
and there is a change in the pipeline route or your use of the federal 
lands, you must apply for a new right-of-way grant under the Act, as 
amended.
    (c) BLM may ratify or confirm a grant that was issued under any 
provision of law if we can modify the grant to comply with the 
provisions of the Act and regulations. BLM and you must jointly approve 
any modifications.


Sec. 2887.11  May I assign my grant?

    (a) Yes. You may assign a grant in whole or in part, if BLM 
approves your request.
    (b) If you want to assign your grant, the proposed assignee must 
file an application under the same procedures as for a new grant. (See 
subpart 2884 of this part.)
    (c) Additionally, the request for assignment must include the 
following:
    (1) Documentation that you, the assignor, agree to the assignment; 
and
    (2) A stipulation that the assignee agrees to comply with and to be 
bound by the terms and conditions of the grant to be assigned.
    (d) BLM will not recognize an assignment until it approves the 
assignment in writing. BLM may modify or add bonding and other 
requirements, including additional terms and conditions, to the grant 
when approving the assignment.
    (e) The processing time and conditions for original applications, 
as described at Sec. 2804.19(c) of this chapter, apply to processing 
applications for assignments.


Sec. 2887.12  May I renew my grant?

    (a) Yes, except for those cases where a grant has terminated by its 
own terms. BLM will renew the grant if the pipeline is being operated 
and maintained in accordance with all provisions of the right-of-way 
grant, the regulations in this part and the Act. If your grant has 
terminated, you must apply for a new grant under the procedures 
described at subpart 2884 of this part.
    (b) BLM may modify the terms and conditions of the grant at the 
time of renewal, and you must pay in advance for the administrative 
costs of processing the request.
    (c) The time and conditions for processing applications for rights-
of-way, as described at Sec. 2804.19(c) of this chapter, apply for 
applications for renewals.

Subpart 2888--What Do I Need To Know About Trespass?

    See subpart 2808, part 2800, of this chapter.

[FR Doc. 99-14588 Filed 6-14-99; 8:45 am]
BILLING CODE 4310-84-P