[Federal Register Volume 71, Number 65 (Wednesday, April 5, 2006)]
[Notices]
[Pages 17131-17135]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-4945]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs


Rate Adjustments for Indian Irrigation Projects

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Notice of rate adjustments.

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SUMMARY: The Bureau of Indian Affairs (BIA) owns, or has an interest 
in, irrigation facilities located on various Indian reservations 
throughout the United States. We are authorized to establish rates to 
recover the costs to administer, operate, maintain, and rehabilitate 
those facilities. We are notifying you that we have adjusted the 
irrigation assessment rates at several of our irrigation facilities for 
operation and maintenance.

DATES: Effective Date: The irrigation assessment rates shown in the 
tables are effective on January 1, 2006.

FOR FURTHER INFORMATION CONTACT: For details about a particular BIA 
irrigation project, please use the tables in the SUPPLEMENTARY 
INFORMATION section to contact the regional or local office where the 
project is located.

SUPPLEMENTARY INFORMATION: A Notice of Proposed Rate Adjustment was 
published in the Federal Register on October 4, 2005 (70 FR 151), to 
adjust the irrigation rates at several BIA irrigation facilities. The 
public and interested parties were provided an opportunity to submit 
written comments during the 60-day period prior to December 8, 2005.

Did the BIA Defer Any Proposed Rate Increases?

    For the Fort Peck Irrigation Project, the BIA, in consultation with 
the Assiniboine and Sioux Tribes and Fort Peck Irrigation Project water 
users, has deferred the rate increase for 2006.
    For the Flathead Irrigation Project, the BIA, in consultation with 
the Flathead Irrigation Project water users, has deferred the rate 
increase for 2006 until 2007. This notice makes the rate increase final 
for 2007.
    The BIA, in consultation with the Southern Ute Indian Tribe, has 
decided to raise the final rates for the Pine River Irrigation Project. 
However, the rate will be less than was proposed in the Notice of 
Proposed Rate Adjustment published on October 4, 2005.

Did the BIA Receive Any Comments on the Proposed Irrigation Assessment 
Rate Adjustments?

    Written comments were received for the proposed rate adjustments 
for the Fort Peck Irrigation Project, Montana, the San Carlos 
Irrigation Project--Joint Works (SCIP-JW), Arizona, and the Pine River 
Irrigation Project, Colorado.

What Issues Were of Concern to the Commenters?

    The commenters were concerned with one or more of the following 
issues: (1) How funds collected from stakeholders are expended on 
operation and maintenance; (2) the impact of an assessment rate 
increase on the local agricultural economy and on individual land 
owners and irrigators; (3) record keeping practices and sharing this 
information with water users prior to the proposed rate adjustment 
notice; and (4) the timeliness of the rate adjustment notice.

How Does BIA Respond to the Concern of How Funds Are Expended for 
Operation and Maintenance?

    BIA includes the following expenses in irrigation project budgets: 
Project personnel costs; materials and supplies; vehicle and equipment 
repairs; equipment; capitalization expenses; acquisition expenses; 
rehabilitation costs; maintenance of a reserve fund for contingencies 
or emergencies; and other expenses we determine necessary to properly 
operate and maintain the irrigation projects.
    The BIA's budget estimates and records of expenditures for all of 
its irrigation facilities are public records and available for review 
by stakeholders or interested parties. Stakeholders (project water 
users/land owners/tribes) can review these records during normal 
business hours at the individual agency offices. Alternatively, BIA may 
treat requests to review project records as requests under the Freedom 
of Information Act (FOIA) and provide copies of such records to the 
requesting party in accordance with FOIA. To review or to obtain copies 
of these records, stakeholders and interested parties are directed to 
contact the BIA representative at the specific facility serving them 
using the tables in the SUPPLEMENTARY INFORMATION section.

How Does BIA Respond to Concerns About Irrigation Assessment Rate 
Increases and Related Impacts on the Local Agricultural Economy and on 
Individual Land Owners and Irrigators?

    All of the BIA's irrigation projects are important economic 
contributors to the local communities they serve contributing millions 
in crop value annually. Historically, BIA tempered irrigation rate 
increases to demonstrate sensitivity to the economic impact on water 
users. This has resulted in a rate deficiency at most of the irrigation 
projects.
    Over the past several years the BIA's irrigation program has been 
the subject of several Office of Inspector General (OIG) audits. In the 
most recent audit, No. 96-I-641, March 1996, the OIG concluded, 
``Operation and maintenance revenues were insufficient to maintain the 
projects, and some projects had deteriorated to the extent that their 
continued capability to deliver water was in doubt. This occurred 
because operation and maintenance rates were not based on the full cost 
of delivering water, including the costs of systematically 
rehabilitating and replacing project facilities and equipment, and 
because project personnel did not seek regular rate increases to cover 
the full cost of operation.'' This audit recommendation is still 
outstanding.
    A previous OIG audit, No. 88-42, February 1988, reached the same 
conclusion. A separate audit performed on one of BIA's largest 
irrigation projects, Wapato Indian Irrigation Project, No. 95-I-1402, 
September 1995, reinforced the general findings of the OIG on the BIA's 
irrigation program. This pointed out a lack of response by the BIA to 
the original findings of the OIG in addressing this critical issue over 
an extended period of time. The BIA must systematically review and 
evaluate irrigation assessment rates and adjust them when necessary to 
reflect the full costs to properly operate, and perform all appropriate 
maintenance on, the irrigation facility infrastructure for safe and 
reliable operation. If this review and evaluation is not accomplished, 
a rate deficiency can eventually accumulate. Overcoming rate 
deficiencies can result in the BIA having to raise irrigation 
assessment rates in larger increments and over shorter time frames than 
would have been otherwise necessary.
    In the past, BIA has provided limited appropriated funds to the 
irrigation projects to assist the projects in their operations and 
maintenance.

[[Page 17132]]

Unfortunately, the BIA does not have sufficient discretionary funding 
to continue this practice in the future. Without the necessary rate 
increases, the impacts to projects as a result of the lack of adequate 
operation and maintenance funds could result in the inability to 
adequately deliver water and maintain irrigation system components.
    The following two comments are specific to San Carlos Irrigation 
Project--Joint Works (SCIP-JW):

How Does BIA Respond to Concerns That There Was Insufficient 
Consultation in the Rate Setting Process for FY 2007?

    BIA consulted with the San Carlos Irrigation and Drainage District 
(District) several times during CY 2005 concerning the budget 
information for the current year as well as future years, including the 
2007 rate projection. As early as December 16, 2004, at a Fact Finding 
Meeting, BIA provided the District with a budget and rate projection 
for the period 2006-2010, indicating that the annual O&M rate was 
projected to remain at $30/acre for this time period. BIA staff met 
with the District Board ten times during CY 2005 at which time BIA 
provided Project budget, expenditure, cash balance, income, and rate 
information, and reiterated BIA's projection that the $30/acre O&M rate 
was likely to remain constant from 2006-2010 in order for BIA to 
operate and maintain the Project adequately, maintain a sufficient 
reserve account for emergencies, and to build up a sinking fund for 
major capital projects that need to be funded in the future, such as 
well replacements. BIA was available at each of these ten meetings to 
respond to any questions about the 2007 O&M rate. The District's 
comments at these meetings made it clear that the District does not 
support a $30/acre annual O&M rate.
    BIA notes that the Arizona Water Settlement Act, Public Law 108-
451, is in the implementation stage, and that under this Act and the 
implementing agreements, BIA's relationship with the District and the 
Gila River Indian Community (Community) concerning the operation and 
maintenance activities and associated budget and rate assessment of the 
SCIP-JW will be modified after 2007. During the next 2 years, BIA will 
be working with the District and the Community to implement these new 
provisions.

How Does BIA Respond to Concerns That It Failed To Set the Rate in a 
Timely Manner?

    The non-Indian water users in SCIP-JW expressed concern that the 
2007 rate was not set in time for the necessary taxes to be assessed by 
July 1, 2005, and collected by the payment due date of May 15, 2006. 
The proposed budget and documentation for the 2007 O&M rate was 
provided by the SCIP-JW to the water users by as early as December 16, 
2004, indicating that the rate for 2007 was projected to remain the 
same as for 2006 ($30/acre), and that the $30/acre rate was likely to 
remain in effect for the period 2006-2010. As such, we believe water 
users had time to plan for the requisite tax assessments and 
collections for the 2007 rate assessment.

Did the BIA Receive Comments on Any Proposed Changes Other Than Rate 
Adjustments?

    No.

Does This Notice Affect Me?

    This notice affects you if you own or lease land within the 
assessable acreage of one of our irrigation projects, or you have a 
carriage agreement with one of our irrigation projects.

Where Can I Get Information on the Regulatory and Legal Citations in 
This Notice?

    You can contact the appropriate office(s) stated in the tables for 
the irrigation project that serves you, or you can use the Internet 
site for the Government Printing Office at http://www.gpo.gov.

What Authorizes You To Issue This Notice?

    Our authority to issue this notice is vested in the Secretary of 
the Interior by 5 U.S.C. 301 and the Act of August 14, 1914 (38 Stat. 
583; 25 U.S.C. 385). The Secretary has in turn delegated this authority 
to the Assistant Secretary--Indian Affairs under Part 209, Chapter 
8.1A, of the Department of the Interior's Departmental Manual.

Who Can I Contact for Further Information?

    The following tables are the regional and project/agency contacts 
for our irrigation facilities.

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Northwest Region Contacts
Stanley Speaks, Regional Director, Bureau of Indian Affairs, Northwest
 Regional Office, 911 NE. 11th Avenue, Portland, Oregon 97232-4169,
 Telephone: (503) 231-6702.
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Project name                        Project/Agency contacts
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Flathead Irrigation Project.......  Ernest T. Moran, Superintendent,
                                     Flathead Agency Irrigation
                                     Division, P.O. Box 40, Pablo, MT
                                     59855-0040, Telephone: (406) 675-
                                     2700.
Fort Hall Irrigation Project......  Eric J. LaPointe, Superintendent,
                                     Alan Oliver, Irrigation Project
                                     Engineer, Fort Hall Agency, P.O.
                                     Box 220, Fort Hall, ID 83203-0220,
                                     Telephone: (208) 238-2301.
Wapato Irrigation Project.........  Pierce Harrison, Project
                                     Administrator, Wapato Irrigation
                                     Project, P.O. Box 220, Wapato, WA
                                     98951-0220, Telephone: (509) 877-
                                     3155.
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Rocky Mountain Region Contacts
Keith Beartusk, Regional Director, Bureau of Indian Affairs, Rocky
 Mountain Regional Office, 316 North 26th Street, Billings, Montana
 59101, Telephone: (406) 247-7943.
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Project name                        Project/Agency contacts
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Blackfeet Irrigation Project......  Cliff Hall, Acting Superintendent;
                                     Ted Hall, Irrigation Project
                                     Manager, Box 880, Browning, MT
                                     59417, Telephones: (406) 338-7544,
                                     Superintendent; (406) 338-7519,
                                     Irrigation.
Crow Irrigation Project...........  Ed Lone Fight, Superintendent; Karl
                                     Helvik, Irrigation Project Manager,
                                     P.O. Box 69, Crow Agency, MT 59022,
                                     Telephones: (406) 638-2672;
                                     Superintendent (406) 638-2863,
                                     Irrigation.
Fort Belknap Irrigation Project...  Judy Gray, Superintendent; Ralph
                                     Leo, Irrigation Project Manager,
                                     R.R.1, Box 980, Harlem, MT 59526,
                                     Telephones: (406) 353-2901,
                                     Superintendent; (406) 353-2905,
                                     Irrigation.
Fort Peck Irrigation Project......  Spike Bighorn, Superintendent, P.O.
                                     Box 637, Poplar, MT 59255; Vacant,
                                     Irrigation Manager 602 6th Avenue
                                     North, Wolf Point, MT 59201,
                                     Telephones: (406) 768-5312,
                                     Superintendent; (406) 653-1752,
                                     Irrigation.

[[Page 17133]]

 
Wind River Irrigation Project.....  George Gover, Superintendent; Ray
                                     Nation, Acting Irrigation Project
                                     Manager, P.O. Box 158, Fort
                                     Washakie, WY 82514, Telephones:
                                     (307) 332-7810, Superintendent;
                                     (307) 332-2596, Irrigation.
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Southwest Region Contacts
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Larry Morrin, Regional Director, Bureau of Indian Affairs, Southwest
 Regional Office, 1001 Indian School Road, Albuquerque, New Mexico
 87104, Telephone: (505) 563-3100.
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Project name                        Project/Agency contacts
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Pine River Irrigation Project.....  Ross P. Denny, Superintendent; John
                                     Formea, Irrigation Engineer, P.O.
                                     Box 315, Ignacio, CO 81137-0315,
                                     Telephones: (970) 563-4511,
                                     Superintendent; (970) 563-1017,
                                     Irrigation.
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Western Region Contacts
Brian Bowker, Acting Regional Director, Bureau of Indian Affairs,
 Western Regional Office, P.O. Box 10, Phoenix, Arizona 85001,
 Telephone: (602) 379-6600.
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Project name                        Project/Agency contacts
------------------------------------------------------------------------
Colorado River Irrigation Project.  Rodney McVey, Acting Superintendent;
                                     Ted Henry, Irrigation Project
                                     Manager, R.R. 1 Box 9-C, Parker, AZ
                                     85344, Telephone: (928) 669-7111.
Duck Valley Irrigation Project....  Virgil Townsend, Superintendent,
                                     1555 Shoshone Circle, Elko, NV
                                     89801, Telephone: (775) 738-0569.
Fort Yuma Irrigation Project......  William Pyott, Land Operations
                                     Officer, P.O. Box 11000, Yuma, AZ
                                     85366, Telephone: (520) 782-1202.
San Carlos Irrigation Project       Carl Christensen, Supervisory
 Joint Works.                        General Engineer, P.O. Box 250,
                                     Coolidge, AZ 85228, Telephone:
                                     (520) 723-6216
San Carlos Irrigation Project       Joe Revak, Supervisory General
 Indian Works.                       Engineer, Pima Agency, Land
                                     Operations, Box 8, Sacaton, AZ
                                     85247, Telephone: (520) 562-3372.
Uintah Irrigation Project.........  Lynn Hansen, Irrigation Manager,
                                     P.O. Box 130, Fort Duchesne, UT
                                     84026, Telephone: (435) 722-4341.
Walker River Irrigation Project...  Robert Hunter, Superintendent, 1677
                                     Hot Springs Road, Carson City, NV
                                     89706, Telephone: (775) 887-3500.
------------------------------------------------------------------------

What Irrigation Assessments or Charges are Proposed for Adjustment by 
This Notice?

    The rate table below contains the current rates for all of our 
irrigation projects where we recover our costs for operation and 
maintenance. The table also contains the proposed rates for the 2006 
season and subsequent years where applicable. An asterisk immediately 
following the name of the project notes the irrigation projects where 
rates are proposed for adjustment.

                                                               Northwest Region Rate Table
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               Project name                          Rate category            Final 2005 rate    Final 2006 rate              Final 2007 rate
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Flathead Irrigation Project (see Note      Basic Per acre..................             $21.45             $21.45  $23.45.
 2) *.
Fort Hall Irrigation Project *...........  Basic Per acre..................              22.00              24.00  To be determined.
Fort Hall Irrigation Project--Minor Units  Basic Per acre..................              14.00              15.00  To be determined.
 *.
Fort Hall Irrigation Project--Michaud *..  Basic Per acre..................              33.00              34.00  To be determined.
                                           Pressure Per acre...............              46.50              48.50  To be determined.
Wapato Irrigation Project--Toppenish/      Billing Charge Per Tract........               5.00               5.00  To be determined.
 Simcoe Units *.
                                           Farm unit/land tracts up to one               13.00              13.50  To be determined.
                                            acre (minimum charge).
                                           Farm unit/land tracts over one                13.00              13.50  To be determined.
                                            acre--per acre.
Wapato Irrigation Project--Ahtanum Units   Billing Charge Per Tract........               5.00               5.00  To be determined.
 *.
                                           Farm unit/land tracts up to one               13.00              13.50  To be determined.
                                            acre (minimum charge).
                                           Farm unit/land tracts over one                13.00              13.50  To be determined.
                                            acre--per acre.
Wapato Irrigation Project--Satus Unit *..  Billing Charge Per Tract........               5.00               5.00  To be determined.
                                           Farm unit/land tracts up to one               51.00              53.00  To be determined.
                                            acre (minimum charge).
                                           ``A'' farm unit/land tracts over              51.00              53.00  To be determined.
                                            one acre--per acre.
                                           Additional Works farm unit/land               56.00              58.00  To be determined.
                                            tracts over one acre--per acre.
                                           ``B'' farm unit/land tracts over              61.00              63.00  To be determined.
                                            one acre--per acre.

[[Page 17134]]

 
                                           Water Rental Agreement Lands--                62.00              64.50  To be determined.
                                            per acre.
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                                                            Rocky Mountain Region Rate Table
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               Project name                          Rate category            Final 2005 rate    Final 2006 rate              Final 2007 rate
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Blackfeet Irrigation Project.............  Basic-per acre..................             $13.00             $13.00  To be determined.
Crow Irrigation Project--Willow * Creek    Basic-per acre..................              16.00              17.30
 O&M.
Crow Irrigation * Project--All Others....  Basic-per acre..................              16.00              17.00
Fort Belknap * Irrigation Project........  Trust Land per acre.............               7.75               8.50  $9.25.
                                           Non-Trust Land per acre.........              15.50              17.00  18.50.
Fort Peck Irrigation Project *...........  Basic-per acre..................              17.50              17.50  To be determined.
Wind River Irrigation Project............  Basic-per acre..................              14.00              14.00
Wind River Irrigation Project--LeClair     Basic-per acre..................              17.00              17.00
 District.
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                                           Southwest Region Rate Table
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              Project name                          Rate category            Final 2005 rate    Final 2006 rate
----------------------------------------------------------------------------------------------------------------
Pine River Irrigation Project *.........  Minimum Charge per tract........             $25.00            $50.00.
                                          Basic-per acre..................               8.50             13.00.
                                          Carriage Contract annual rate...  .................            100.00.
----------------------------------------------------------------------------------------------------------------


                                                                Western Region Rate Table
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               Project name                          Rate category            Final 2005 rate    Final 2006 rate              Final 2007 rate
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Colorado River Irrigation Project........  Basic per acre up to 5.75 acre-              $47.00             $47.00  To be determined.
                                            feet.
                                           Excess Water per acre-foot over               17.00              17.00
                                            5.75 acre-feet.
Duck Valley Irrigation Project...........  Basic-per acre..................               5.30               5.30
Fort Yuma Irrigation Project (See Note     Basic-per acre up to 5.0 acre-                65.00              65.00
 1).                               feet.
                                           Excess Water per acre-foot over               10.50              10.50
                                            5.0 acre-feet.
San Carlos Irrigation Project (Joint       Basic-per acre..................              30.00              30.00  30.00
 Works) (See Note 2).
San Carlos Irrigation Project (Indian      Basic-per acre..................              77.00              77.00  To be determined.
 Works).
Uintah Irrigation Project................  Basic-per acre..................              11.00              12.00
                                           Minimum Bill....................              25.00              25.00
Walker River Irrigation Project..........  Indian per acre.................               7.32               7.32
                                           Non-Indian per acre.............              15.29             15.29
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* Notes irrigation projects where rates are proposed for adjustment.
Note 1--The Fort Yuma Irrigation Project is owned and operated by the Bureau of Reclamation (Reclamation). The irrigation rates assessed for
  operation and maintenance are established by Reclamation and are provided for informational purposes only. The BIA collects the irrigation assessments
  on behalf of Reclamation.
Note 2--The 2007 irrigation rate per acre is established through this notice.

Consultation and Coordination With Tribal Governments (Executive Order 
13175)

    The BIA irrigation projects are vital components of the local 
agriculture economy of the reservations on which they are located. To 
fulfill its responsibilities to the tribes, tribal organizations, water 
user organizations, and the individual water users, the BIA 
communicates, coordinates, and consults on a continuing basis with 
these entities on issues of water delivery, water availability, costs 
of administration, operation, maintenance, and rehabilitation. This is 
accomplished at the individual irrigation projects by Project, Agency, 
and Regional representatives, as appropriate, in accordance with local 
protocol and procedures. This notice is one component of the BIA's 
overall coordination and consultation process to provide notice and 
request comments from these entities on adjusting our irrigation rates.

Actions Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use (Executive Order 13211)

    The rate adjustments will have no adverse effects on energy supply, 
distribution, or use (including a shortfall in supply, price increases, 
and increased use of foreign supplies) should the proposed rate 
adjustments be implemented. This is a notice for rate adjustments at 
BIA owned and operated irrigation projects, except for the Fort

[[Page 17135]]

Yuma Irrigation Project. The Fort Yuma Irrigation Project is owned and 
operated by the Bureau of Reclamation with a portion serving the Fort 
Yuma Reservation.

Regulatory Planning and Review (Executive Order 12866)

    These rate adjustments are not a significant regulatory action and 
do not need to be reviewed by the Office of Management and Budget under 
Executive Order 12866.

Regulatory Flexibility Act

    This rate making is not a rule for the purposes of the Regulatory 
Flexibility Act because it is ``a rule of particular applicability 
relating to rates.'' (5 U.S.C. 601 et seq.)

Unfunded Mandates Act of 1995

    These rate adjustments impose no unfunded mandates on any 
governmental or private entity and are in compliance with the 
provisions of the Unfunded Mandates Act of 1995.

Takings (Executive Order 12630)

    The Department has determined that these rate adjustments do not 
have significant ``takings'' implications. The rate adjustments do not 
deprive the public, state, or local governments of rights or property.

Federalism (Executive Order 13132)

    The Department has determined that these rate adjustments do not 
have significant Federalism effects because they pertain solely to 
Federal-tribal relations and will not interfere with the roles, rights, 
and responsibilities of states.

Civil Justice Reform (Executive Order 12988)

    In accordance with Executive Order 12988, the Office of the 
Solicitor has determined that this notice does not unduly burden the 
judicial system and meets the requirements of sections 3(a) and 3(b)(2) 
of the Order.

Paperwork Reduction Act of 1995

    These rate adjustments do not affect the collections of information 
which have been approved by the Office of Information and Regulatory 
Affairs, Office of Management and Budget (OMB), under the Paperwork 
Reduction Act of 1995. The OMB Control Number is 1076-0141 and expires 
April 30, 2006.

National Environmental Policy Act

    The Department has determined that these rate adjustments do not 
constitute a major Federal action significantly affecting the quality 
of the human environment and that no detailed statement is required 
under the National Environmental Policy Act of 1969 (42 U.S.C. 4321-
4370(d)).

    Dated: March 20, 2006.
Michael D. Olsen,
Acting Principal Deputy Assistant Secretary--Indian Affairs.
 [FR Doc. E6-4945 Filed 4-4-06; 8:45 am]
BILLING CODE 4310-W7-P