[Federal Register Volume 83, Number 189 (Friday, September 28, 2018)]
[Rules and Regulations]
[Pages 48957-48961]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21298]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management

43 CFR Part 3000

[18X.LLWO310000.L13100000.PP0000]
RIN 1004-AE57


Minerals Management: Adjustment of Cost Recovery Fees

AGENCY: Bureau of Land Management, Interior.

ACTION: Final rule.

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SUMMARY: This final rule updates the fees set forth in the Bureau of 
Land Management (BLM) mineral resources regulations for the processing 
of certain minerals program-related actions. It also adjusts certain 
filing fees for minerals-related documents. These updated fees include 
those for actions such as lease renewals and mineral patent 
adjudications.

DATES: This final rule is effective October 1, 2018.

ADDRESSES: You may send inquiries or suggestions to Director (630), 
Bureau of Land Management, 2134LM, 1849 C Street NW, Washington, DC 
20240; Attention: RIN 1004-AE57.

FOR FURTHER INFORMATION CONTACT: Steve Wells, Chief, Division of Fluid 
Minerals, 202-912-7143; Mitch Leverette, Chief, Division of Solid 
Minerals, 202-912-7114; or Mark Purdy, Regulatory Affairs, 202-912-
7635. Persons who use a telecommunications device for the deaf (TDD) 
may leave a message for these individuals with the Federal Relay 
Service (FRS) at 1-800-877-8339, 24 hours a day, 7 days a week.

SUPPLEMENTARY INFORMATION: 

I. Background

    The BLM has specific authority to charge fees for processing 
applications and other documents relating to public lands under section 
304 of the Federal Land Policy and Management Act of 1976 (FLPMA), 43 
U.S.C. 1734. In 2005, the BLM published a final cost recovery rule (70 
FR 58854) establishing or revising fees and service charges for 
processing documents related to its minerals programs (2005 Cost 
Recovery Rule). In addition, the 2005 Cost Recovery Rule also 
established the method the BLM would use to adjust those fees and 
service charges on an annual basis.
    At 43 CFR 3000.12(a), the regulations provide that the BLM will 
annually adjust fees established in subchapter C (43 CFR parts 3000 
through 3900) according to changes in the Implicit Price Deflator for 
Gross Domestic Product (IPD-GDP), which is published quarterly by the 
U.S. Department of Commerce. See also 43 CFR 3000.10. This final rule 
updates those fees and service charges consistent with that direction. 
The fee adjustments in this rule are based on the mathematical formula 
set forth in the 2005 Cost Recovery Rule. The public had an opportunity 
to comment on that adjustment procedure as part of the 2005 rulemaking. 
Accordingly, the Department of the Interior for good cause finds under 
5 U.S.C. 553(b)(B) and (d)(3) that notice and public comment procedures 
are unnecessary and that the fee adjustments in this rule may be 
effective less than 30 days after publication. See 43 CFR 3000.10(c).

II. Discussion of Final Rule

    As set forth in the 2005 Cost Recovery Rule, the fee updates are 
based on the change in the IPD-GDP. The BLM's minerals program 
publishes the updated cost recovery fees, which become effective on 
October 1, the start of the fiscal year (FY).
    Since the BLM did not publish a fee update for FY 2018, this rule 
updates the cost recovery fees from FY 2017 for FY 2019. The update is 
based on the change in the IPD-GDP from the 4th Quarter of 2015 to the 
4th Quarter of 2017 and reflects the rate of inflation over a two-year 
time period (or eight calendar quarters).
    Under this rule, 17 fees will remain the same and 31 fees will 
increase. Of the 31 fees that are being increased by this rule, 18 of 
the increases are equal to $5 each. The largest increase, $105, will be 
applied to the fee for adjudicating a mineral patent application 
containing more than 10 claims, which will increase from $3,110 to 
$3,215. The fee for adjudicating a patent application containing 10 or 
fewer claims will increase by $50, from $1,555 to $1,605.
    The calculations that resulted in the new fees are included in the 
table below:

[[Page 48958]]



----------------------------------------------------------------------------------------------------------------
                                   Existing fee   Existing value      IPD-GDP                       New fee \5\
    Fixed cost recovery fees       \1\ (FY 2017)        \2\        increase \3\    New value \4\     (FY 2019)
----------------------------------------------------------------------------------------------------------------
Oil & Gas (parts 3100, 3110,
 3120, 3130, 3150):
    Noncompetitive lease                    $415        $413.233         $14.050        $427.283            $425
     application................
    Competitive lease                        160         160.367           5.452         165.819             165
     application................
    Assignment and transfer of                95          92.511           3.145          95.656              95
     record title or operating
     rights.....................
    Overriding royalty transfer,              10          12.333           0.419          12.752              15
     payment out of production..
    Name change, corporate                   215         215.858           7.339         223.197             225
     merger or transfer to heir/
     devisee....................
    Lease consolidation.........             455         456.392          15.517         471.909             470
    Lease renewal or exchange...             415         413.233          14.050         427.283             425
    Lease reinstatement, Class I              80          80.167           2.726          82.893              85
    Leasing under right-of-way..             415         413.233          14.050         427.283             425
    Geophysical exploration                   25  ..............  ..............  ..............              25
     permit application--Alaska
     \6\........................
    Renewal of exploration                    25  ..............  ..............  ..............              25
     permit--Alaska \7\.........
Geothermal (part 3200):
    Noncompetitive lease                     415         413.233          14.050         427.283             425
     application................
    Competitive lease                        160         160.367           5.452         165.819             165
     application................
    Assignment and transfer of                95          92.511           3.145          95.656              95
     record title or operating
     right......................
    Name change, corporate                   215         215.858           7.339         223.197             225
     merger or transfer to heir/
     devisee....................
    Lease consolidation.........             455         456.392          15.517         471.909             470
    Lease reinstatement.........              80          80.167           2.726          82.893              85
    Nomination of lands.........             115         115.457           3.926         119.383             120
    Plus per acre nomination fee            0.12           0.116           0.004            0.12            0.12
    Site license application....              60          61.674           2.097          63.771              65
    Assignment or transfer of                 60          61.674           2.097          63.771              65
     site license...............
Coal (parts 3400, 3470):
    License to mine application.              10          12.333           0.419          12.752              15
    Exploration license                      340         339.216          11.533         350.749             350
     application................
    Lease or lease interest                   70          67.856           2.307          70.163              70
     transfer...................
Leasing of Solid Minerals Other
 Than Coal and Oil Shale (parts
 3500, 3580):
    Applications other than                   35          37.009           1.258          38.267              40
     those listed below.........
    Prospecting permit amendment              70          67.856           2.307          70.163              70
    Extension of prospecting                 110         111.015           3.775          114.79             115
     permit.....................
    Lease modification or fringe              30          30.848           1.049          31.896              30
     acreage lease..............
    Lease renewal...............             530         530.420          18.034         548.454             550
    Assignment, sublease, or                  30          30.848           1.049          31.896              30
     transfer of operating
     rights.....................
    Transfer of overriding                    30          30.848           1.049          31.897              30
     royalty....................
    Use permit..................              30          30.848           1.049          31.897              30
    Shasta and Trinity hardrock               30          30.848           1.049          31.897              30
     mineral lease..............
    Renewal of existing sand and              30          30.848           1.049          31.897              30
     gravel lease in Nevada.....
Multiple Use; Mining (Group
 3700):
    Notice of protest of placer               15          12.333           0.419          12.752              15
     mining operations..........
Mining Law Administration (parts
 3800, 3810, 3830, 3850, 3860,
 3870):
    Application to open lands to              10          12.333           0.419          12.752              15
     location...................
    Notice of Location..........              20          18.493           0.629          19.122              20
    Amendment of location.......              10          12.333           0.419          12.752              15
    Transfer of mining claim/                 10          12.333           0.419          12.752              15
     site.......................
    Recording an annual FLPMA                 10          12.333           0.419          12.752              15
     filing.....................
    Deferment of assessment work             110         111.015           3.775          114.79             115
    Recording a notice of intent              30          30.848           1.049          31.897              30
     to locate mining claims on
     Stockraising Homestead Act
     lands......................
    Mineral Patent adjudication            3,110       3,108.492         105.689       3,214.181           3,215
     (more than ten claims).....
    (ten or fewer claims).......           1,555       1,554.230          52.844       1,607.074           1,605
    Adverse claim...............             110         111.015           3.775          114.79             115
    Protest.....................              70          67.856           2.307          70.163              70
Oil Shale Management (parts
 3900, 3910, 3930):
    Exploration License                      325         325.360          11.062         336.422             335
     Application................
    Assignment or sublease of                 65          66.181           2.250          68.431              70
     record title or overriding
     royalty....................
----------------------------------------------------------------------------------------------------------------
\1\ The Existing Fee was established by the 2016 (FY 2017) cost recovery fee update rule. The 2016 cost recovery
  fee update rule was published on September 23, 2016 (81 FR 65558) and effective on October 1, 2016. The
  existing fees were not updated for FY18.
\2\ The Existing Value was used to derive the Existing Fee column for the 2016 (FY 2017) cost recovery fee
  update rule. The numbers in the Existing Value column appear in the New Value column in the 2016 cost recovery
  fee update rule. The values in this column are rounded to 3 decimal places for display purposes only.
\3\ From 4th Quarter 2015 (110.513) to 4th Quarter 2017 (114.275), the IPD-GDP increased by 3.4 percent. The
  values in this column equal 3.4 percent multiplied by the corresponding Existing Value. The values in this
  column are rounded to 3 decimal places for display purposes only.
\4\ The New Value is used to calculate the new cost recovery fees for FY19. The New Value equals the sum of the
  corresponding Existing Value and the IPD-GDP Increase. The New Values may not sum due to rounding. The values
  in this column are rounded to 3 decimal places for display purposes only.

[[Page 48959]]

 
\5\ The New Fee for FY 2019 is the corresponding New Value rounded to the nearest $5 for values equal to or
  greater than $1 or rounded to the nearest penny for values under $1.
\6\ Section 365 of the Energy Policy Act of 2005 (Pub. L. 109-58) directed in subsection (i) that ``the
  Secretary shall not implement a rulemaking that would enable an increase in fees to recover additional costs
  related to processing drilling-related permit applications and use authorizations.'' In the 2005 cost recovery
  rule, the BLM interpreted this prohibition to apply to geophysical exploration permits. 70 FR 58854--58855.
  While the $25 fees for geophysical exploration permit applications for Alaska and renewals of exploration
  permits for Alaska pre-dated the 2005 cost recovery rule and were not affected by the Energy Policy Act
  prohibition, the BLM interprets the Energy Policy Act provision as prohibiting it from increasing this $25
  fee.
\7\The BLM interprets the Energy Policy Act prohibition discussed in footnote 6, above, as prohibiting it from
  increasing this $25 fee, as well.
 Source for Implicit Price Deflator for Gross Domestic Product data: U.S. Department of Commerce, Bureau of
  Economic Analysis (May 30, 2018).

III. How Fees Are Adjusted

    The BLM took the base values (or ``existing values'') upon which it 
derived the FY 2017 cost recovery fees (or ``existing fees'') and 
multiplied it by the percent change in the IDP-GDP (3.4 percent for 
this update) to generate the ``IDP-GDP increases'' (in dollars). The 
BLM then added the ``IDP-GDP increases'' to the ``existing values'' to 
generate the ``new values.'' The BLM then calculated the ``new fees'' 
by rounding the ``new values'' to the closest multiple of $5 for fees 
equal to or greater than $1, or to the nearest cent for fees under $1. 
The ``new fees'' are the updated cost recovery fees for FY 2019.

IV. Procedural Matters

Regulatory Planning and Review (Executive Order 12866)

    This document is not a significant rule, and the Office of 
Management and Budget has not reviewed this rule under Executive Order 
12866.
    The BLM has determined that the rule will not have an annual effect 
on the economy of $100 million or more. It will not adversely affect in 
a material way the economy, a sector of the economy, productivity, 
competition, jobs, the environment, public health or safety, or State, 
local, or tribal governments or communities. The changes in this rule 
are much smaller than those in the 2005 final rule, which did not 
approach the threshold in Executive Order 12866. For instructions on 
how to view a copy of the analysis prepared in conjunction with the 
2005 final rule, please contact one of the persons listed in the FOR 
FURTHER INFORMATION CONTACT section above.
    This rule will not create inconsistencies or otherwise interfere 
with an action taken or planned by another agency. This rule does not 
change the relationships of the onshore minerals programs with other 
agencies' actions. These relationships are included in agreements and 
memoranda of understanding that will not change with this rule.
    In addition, this final rule does not materially affect the 
budgetary impact of entitlements, grants, or loan programs, or the 
rights and obligations of their recipients. This rule applies an 
inflationary adjustment factor to existing user fees for processing 
certain actions associated with the onshore minerals programs.
    Finally, this rule will not raise novel legal or policy issues. As 
explained above, this rule simply implements an annual process to 
account for inflation that was adopted by and explained in the 2005 
Cost Recovery Rule.

Reducing Regulation and Controlling Regulatory Costs (E.O. 13771)

    This action is not an E.O. 13771 regulatory action because it is 
not significant under E.O. 12866.

The Regulatory Flexibility Act

    This final rule will not have a significant economic effect on a 
substantial number of small entities as defined under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.). As a result, a Regulatory 
Flexibility Analysis is not required. The Small Business Administration 
defines small entities as individual, limited partnerships, or small 
companies considered to be at arm's length from the control of any 
parent companies if they meet the following size requirements as 
established for each North American Industry Classification System 
(NAICS) code:

 Iron ore mining (NAICS code 212210): 750 or fewer employees
 Gold ore mining (NAICS code 212221): 1,500 or fewer employees
 Silver ore mining (NAICS code 212222): 250 or fewer employees
 Uranium-Radium-Vanadium ore mining (NAICS code 212291): 250 or 
fewer employees
 All Other Metal ore mining (NAICS code 212299): 750 or fewer 
employees
 Bituminous Coal and Lignite Surface Mining (NAICS code 
212111): 1,250 or fewer employees
 Bituminous Coal Underground Mining (NAICS code 212112): 1,500 
or fewer employees
 Crude Petroleum Extraction (NAICS code 211120): 1,250 or fewer 
employees
 Natural Gas Extraction (NAICS code 211130): 1,250 or fewer 
employees
 All Other Non-Metallic Mineral Mining (NAICS code 212399): 500 
or fewer employees

    The SBA would consider many, if not most, of the operators with 
whom the BLM works in the onshore minerals programs to be small 
entities. The BLM notes that this final rule does not affect service 
industries, for which the SBA has a different definition of ``small 
entity.''
    The final rule may affect a large number of small entities because 
31 fees for activities on public lands will be increased. The 
adjustments result in no increase in the fees for processing 17 actions 
relating to the BLM's minerals programs. The highest adjustment, in 
dollar terms, is for adjudications of mineral patent applications 
involving more than 10 mining claims; that fee will increase by $105. 
Accordingly, the BLM has concluded that the economic effect of the 
rule's changes will not be significant, even for small entities.
    For the 2005 Cost Recovery Rule, the BLM completed a Regulatory 
Flexibility Act threshold analysis, which is available for public 
review in the administrative record for that rule. For instructions on 
how to view a copy of that analysis, please contact one of the persons 
listed in the FOR FURTHER INFORMATION CONTACT section above. The 
analysis for the 2005 rule concluded that the fees would not have a 
significant economic effect on a substantial number of small entities. 
The fee increases implemented in this rule are substantially smaller 
than those provided for in the 2005 rule.

The Small Business Regulatory Enforcement Fairness Act

    This final rule is not a ``major rule'' as defined at 5 U.S.C. 
804(2). The final rule will not have an annual effect on the economy 
greater than $100 million; it will not result in major cost or price 
increases for consumers, industries, government agencies, or regions; 
and it will not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises. 
Accordingly, a Small Entity Compliance Guide is not required.

[[Page 48960]]

Executive Order 13132, Federalism

    This final rule will not have a substantial direct effect on the 
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. In accordance with Executive Order 13132, 
the BLM therefore finds that the final rule does not have federalism 
implications, and a federalism assessment is not required.

The Paperwork Reduction Act of 1995

    This rule does not contain information collection requirements that 
require a control number from the Office of Management and Budget in 
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3521). After the effective date of this rule, the new fees may affect 
the non-hour burdens associated with the following control numbers:
Oil and Gas
(1) 1004-0034 which expires June 30, 2021;
(2) 1004-0137 which expires September 30, 2018; \8\
---------------------------------------------------------------------------

    \8\ A request for renewal is pending with the Office of 
Management and Budget.
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(3) 1004-0162 which expires October 31, 2018; \9\
---------------------------------------------------------------------------

    \9\ A request for renewal is pending with the Office of 
Management and Budget.
---------------------------------------------------------------------------

(4) 1004-0185 which expires March 31, 2019;
Geothermal
(5) 1004-0132 which expires February 29, 2020;
Coal
(6) 1004-0073 which expires January 31, 2020;
Mining Claims
(7) 1004-0025 which expires March 31, 2019;
(8) 1004-0114 which expires January 31, 2020; and
Leasing of Solid Minerals Other Than Oil Shale
(9) 1004-0121 which expires August 31, 2019.

Takings Implication Assessment (Executive Order 12630)

    As required by Executive Order 12630, the BLM has determined that 
this rule will not cause a taking of private property. No private 
property rights will be affected by a rule that merely updates fees. 
The BLM therefore certifies that this final rule does not represent a 
governmental action capable of interference with constitutionally 
protected property rights.

Civil Justice Reform (Executive Order 12988)

    In accordance with Executive Order 12988, the BLM finds that this 
final rule will not unduly burden the judicial system and meets the 
requirements of sections 3(a) and 3(b)(2) of the Executive Order.

The National Environmental Policy Act (NEPA)

    The BLM has determined that this final rule qualifies as a routine 
financial transaction and a regulation of an administrative, financial, 
legal, or procedural nature that is categorically excluded from 
environmental review under NEPA pursuant to 43 CFR 46.205 and 46.210(c) 
and (i). The final rule does not meet any of the 12 criteria for 
exceptions to categorical exclusions listed at 43 CFR 46.215. 
Therefore, neither an environmental assessment nor an environmental 
impact statement is required in connection with the rule (40 CFR 
1508.4).

The Unfunded Mandates Reform Act of 1995

    The BLM has determined that this final rule is not significant 
under the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1501 et seq., 
because it will not result in State, local, private sector, or tribal 
government expenditures of $100 million or more in any one year, 2 
U.S.C. 1532. This rule will not significantly or uniquely affect small 
governments. Therefore, the BLM is not required to prepare a statement 
containing the information required by the Unfunded Mandates Reform 
Act.

Consultation and Coordination With Indian Tribal Governments (Executive 
Order 13175)

    In accordance with Executive Order 13175, the BLM has determined 
that this final rule does not include policies that have tribal 
implications. Specifically, the rule would not have substantial direct 
effects on one or more Indian tribes. Consequently, the BLM did not 
utilize the consultation process set forth in Section 5 of the 
Executive Order.

Information Quality Act

    In developing this rule, the BLM did not conduct or use a study, 
experiment, or survey requiring peer review under the Information 
Quality Act (Pub. L. 106-554).

Effects on the Nation's Energy Supply (Executive Order 13211)

    In accordance with Executive Order 13211, the BLM has determined 
that this final rule is not likely to have a significant adverse effect 
on the supply, distribution, or use of energy. It merely adjusts 
certain administrative cost recovery fees to account for inflation.

Author

    The principal author of this rule is Mark Purdy of the Division of 
Regulatory Affairs, Bureau of Land Management.

List of Subjects in 43 CFR Part 3000

    Public lands--mineral resources, Reporting and recordkeeping 
requirements.

Joseph R. Balash,
Assistant Secretary for Land and Minerals Management.
    For reasons stated in the preamble, the Bureau of Land Management 
amends 43 CFR part 3000 as follows:

PART 3000--MINERALS MANAGEMENT: GENERAL

0
1. The authority citation for part 3000 continues to read as follows:

    Authority:  16 U.S.C. 3101 et seq.; 30 U.S.C. 181 et seq., 301-
306, 351-359, and 601 et seq.; 31 U.S.C. 9701; 40 U.S.C. 471 et 
seq.; 42 U.S.C. 6508; 43 U.S.C. 1701 et seq.; and Pub. L. 97-35, 95 
Stat. 357.

Subpart 3000--General

0
2. Amend Sec.  3000.12 by revising paragraph (a) to read as follows:


Sec.  3000.12   What is the fee schedule for fixed fees?

    (a) The table in this section shows the fixed fees that must be 
paid to the BLM for the services listed for Fiscal Year (FY) 2019. 
These fees are nonrefundable and must be included with documents filed 
under this chapter. Fees will be adjusted annually according to the 
change in the Implicit Price Deflator for Gross Domestic Product (IPD-
GDP) by way of publication of a final rule in the Federal Register and 
will subsequently be posted on the BLM website (http://www.blm.gov) 
before October 1 each year. Revised fees are effective each year on 
October 1.
    Table 1 to paragraph (a)--

[[Page 48961]]



                 FY 2019 Processing and Filing Fee Table
------------------------------------------------------------------------
                    Document/action                        FY 2019 Fee
------------------------------------------------------------------------
Oil & Gas (parts 3100, 3110, 3120, 3130, 3150):
    Noncompetitive lease application..................              $425
    Competitive lease application.....................               165
    Assignment and transfer of record title or                        95
     operating rights.................................
    Overriding royalty transfer, payment out of                       15
     production.......................................
    Name change, corporate merger or transfer to heir/               225
     devisee..........................................
    Lease consolidation...............................               470
    Lease renewal or exchange.........................               425
    Lease reinstatement, Class I......................                85
    Leasing under right-of-way........................               425
    Geophysical exploration permit application--Alaska                25
    Renewal of exploration permit--Alaska.............                25
Geothermal (part 3200):
    Noncompetitive lease application..................               425
    Competitive lease application.....................               165
    Assignment and transfer of record title or                        95
     operating rights.................................
    Name change, corporate merger or transfer to heir/               225
     devisee..........................................
    Lease consolidation...............................               470
    Lease reinstatement...............................                85
    Nomination of lands...............................               120
        plus per acre nomination fee..................              0.12
    Site license application..........................                65
    Assignment or transfer of site license............                65
Coal (parts 3400, 3470):
    License to mine application.......................                15
    Exploration license application...................               350
    Lease or lease interest transfer..................                70
Leasing of Solid Minerals Other Than Coal and Oil
 Shale (parts 3500, 3580):
    Applications other than those listed below........                40
    Prospecting permit application amendment..........                70
    Extension of prospecting permit...................               115
    Lease modification or fringe acreage lease........                30
    Lease renewal.....................................               550
    Assignment, sublease, or transfer of operating                    30
     rights...........................................
    Transfer of overriding royalty....................                30
    Use permit........................................                30
    Shasta and Trinity hardrock mineral lease.........                30
    Renewal of existing sand and gravel lease in                      30
     Nevada...........................................
Public Law 359; Mining in Powersite Withdrawals:
 General (part 3730):
    Notice of protest of placer mining operations.....                15
Mining Law Administration (parts 3800, 3810, 3830,
 3850, 3860, 3870):
    Application to open lands to location.............                15
    Notice of location \*\............................                20
    Amendment of location.............................                15
    Transfer of mining claim/site.....................                15
    Recording an annual FLPMA filing..................                15
    Deferment of assessment work......................               115
    Recording a notice of intent to locate mining                     30
     claims on Stockraising Homestead Act lands.......
    Mineral patent adjudication.......................         \1\ 3,215
                                                               \2\ 1,605
    Adverse claim.....................................               115
    Protest...........................................                70
Oil Shale Management (parts 3900, 3910, 3930):
    Exploration license application...................               335
    Application for assignment or sublease of record                  70
     title or overriding royalty......................
------------------------------------------------------------------------
* To record a mining claim or site location, this processing fee along
  with the initial maintenance fee and the one-time location fee
  required by statute (43 CFR part 3833) must be paid.
\1\ More than 10 claims.
\2\ 10 or fewer claims.

* * * * *
[FR Doc. 2018-21298 Filed 9-27-18; 8:45 am]
 BILLING CODE 4310-84-P