Range Management; Grazing Fees

DEPARTMENT OF AGRICULTURE

Forest Service

36 CFR Part 222

Range Management; Grazing Fees

RIN 0596-AB42

AGENCY: Forest Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would change the system used to determine

the fees for grazing livestock on National Forest System land in the

Western States. These changes are needed to obtain a fair and

reasonable return to the United States for the privilege of grazing

privately owned livestock on public rangelands administered by the

Forest Service. The proposed change in the fee considered the impact on

the economic viability of the western livestock industry. By separate

rulemaking, the Bureau of Land Management, U.S. Department of the

Interior, is proposing a similar system for determining the fee for

grazing livestock on lands administered by that agency. Also by

separate rulemaking published elsewhere in this separate part of the

Federal Register, the Forest Service is proposing to revise its

regulations for administering the livestock grazing program on National

Forest System lands.

DATES: Comments must be received in writing by July 28, 1994.

ADDRESSES: Send written comments to Rangeland Reform '94, P.O. Box

66300, Washington, DC 20035-6300.

Comments on the proposed rule will be made available for public

inspection during the regular business hours (7:45 a.m. to 4:15 p.m.),

Monday through Friday. Viewing of the comments can be arranged by

contacting the Forest Service at the telephone number provided below.

FOR FURTHER INFORMATION CONTACT:

Peter G. Ashton, Range Management Staff, Forest Service, 202-205-1746.

SUPPLEMENTARY INFORMATION:

Background

This proposed rule to revise the grazing fee system is a part of

the ``Rangeland Reform '94'' effort by the Forest Service and the

Bureau of Land Management (BLM) to insure a fair and reasonable return

for grazing privately owned livestock on public rangelands. The impact

of a higher fee on the livestock industry was considered. The two

agencies are proposing to use the same grazing fee system; however,

each agency must prepare a separate proposed rule that reflects the

differences in statutory authority that apply to each agency. On August

13, 1993, the Departments of Agriculture and the Interior published

Advance Notices of Proposed Rulemaking (ANPRs) in the Federal Register

(58 FR 43202; 43208), in which each Department gave notice of its

intent to revise its livestock grazing and grazing fee rules.

The comment period on both ANPRs ended September 13, 1993, and was

subsequently reopened for an additional 30-day period that ended

October 20, 1993. A total of about 12,600 letters were received on the

ANPRs. These letters included over 56,000 individual comments on

various aspects of grazing administration and fees. The greatest number

of comments addressed possible changes in the grazing fee. In response

to the public comment, the Department of Agriculture has decided to

separate the grazing fee system proposal from the rangeland management

proposal. Comments on the grazing fee system portion of the ANPR will

be considered in the development of the final grazing fee rule.

Reviewers need not resubmit comments they filed on the Department of

Agriculture's ANPR in order for them to be considered by the agency in

the preparation of the final rule.

Proposed Revisions to 36 CFR Part 222, Subpart C

The proposed grazing fee system embodied in this proposed rule is

intended to correct the disparity between rates charged for livestock

forage on private and Federal lands. An explanation of proposed

amendments to the existing grazing fee regulations at 36 CFR part 222,

subpart C, follows:

Section 222.50--General Procedures

This section of the proposed rule establishes guidelines for

administering the grazing fee system.

Section 222.50(a) of the proposed rule is a revision of the current

rule to simplify general administrative instructions.

Proposed paragraph (b) clarifies the determination of grazing fees.

Proposed paragraph (c) retains the current definition of head month

with some minor editing.

Proposed paragraph (d) would continue the proviso that there would

be no charge for lambing on National Forest System land for sheep

already authorized under a grazing permit; however, the text is edited

for clarity.

Proposed paragraph (e) consolidates under a single provision of the

rule, the fees charged for livestock use under temporary grazing

permits. This change would simplify the administration of grazing fees

and would specify that the authorized officer may adjust, up or down,

the fees for temporary grazing permits to meet management objectives of

the forest land and resource management plan and grazing permit terms

and conditions.

Paragraph (f) of the current rule would be removed because fees for

trailing livestock would be included in proposed paragraph (e).

Paragraph (g) of the current rule would be redesignated as

paragraph (f) in the proposed rule and remain unchanged.

Paragraph (h) of the current rule would be removed because charges

for unauthorized use are not part of the grazing fee system, but are

penalties that are more appropriately addressed in the proposed

revision of the rules in subpart A.

Proposed paragraphs (i) and (j) would be redesignated as paragraphs

(g) and (h) and retained without change.

Paragraph (k) of the current rule would be removed because it

describes beef cattle price data that would not be used for determining

fees under the proposed rule.

Section 222.51--Grazing Fees in the Western States

Current Section 222.51 would be revised in its entirety. The

heading would be revised to read: Grazing fees in the Western States.

This revision proposes a new system for determining grazing fees which

would be implemented in 1995.

The areas subject to the new fee system would be revised to include

all of the national grasslands. Historically, the national grasslands

have been subject to a different fee system than the one used for

national forests. In 1992, the Secretary of Agriculture reduced the

national grasslands grazing fee to an amount commensurate with the

national forest grazing fee. The proposed rule would incorporate this

change so that the grazing fee on national grasslands would be the same

as the fee charged for livestock grazing on other National Forest

System lands in the Western States.

In selecting a revised fee system, the Forest Service and BLM

established several criteria that a proposed fee system should meet.

Those criteria are:

1. The fee charged for livestock grazing should approximate market

value. Using the market value helps assure that the public receives a

fair return for the private use of publicly owned resources.

2. The fee charged should not cause unreasonable impacts on

livestock operations that are heavily dependent on public forage.

3. The fee charged should recover a reasonable amount of the

government's cost involved in administering grazing permits.

4. The fee charged should provide increased funds to improve

rangeland resource conditions.

5. The fee system should be understandable and relatively

inexpensive to administer.

The present fee system, in effect since 1978, has been criticized

for contributing to the wide disparity between charges for livestock

grazing on private lands compared to charges for livestock grazing on

Federal lands. While the forage value in the private market has

increased substantially over time, the Federal grazing fee has

decreased during some seasons or had relatively small increases. The

proposed grazing fee system would address the failure of the existing

grazing fee system to adequately reflect private grazing land market

conditions. The proposed fee system would include a base value which

considers the cost differences of operating on public lands as compared

to private lands, as well as appraisal data, annually adjusting the fee

in proportion to changes in private grazing land lease rates (PGLLR).

After an initial phase-in period, the fee would be adjusted annually by

multiplying the base value by the forage value index (FVI), which

reflects the change in PGLLR for the 17 Western States, using the

weighted average AUM price in each State. The PGLLR estimate is

prepared annually by the USDA, National Agricultural Statistical

Service.

As a result of the public input gained following the ANPR and

through the scoping process for the environmental analysis of

``Rangeland Reform '94'', the Departments of Agriculture and Interior

determined that the grazing fee system proposed initially represents a

reasonable and equitable method for calculating the fee. However,

change in FVI is proposed and a provision for incentive-based fee

adjustment has been added.

The proposed fee would be phased in over the years 1995 through

1997. Thereafter, annual increases or decreases in the grazing fee

resulting from changes in the FVI would be limited to 25 percent of the

amount charged the previous year to minimize impact of fee increases on

ranch operations.

A base value of $3.96 per animal unit month (AUM) is proposed in

this rule. This value represents the average of the results obtained

through the use of two methods discussed below for estimating a fair

base value.

The first method is the 1966 Western Livestock Grazing Survey

(WLGS), where over 10,000 individuals were interviewed to determine the

costs of operating on federal lands and the relationship of public land

grazing use to the PGLLR. The WLGS determined the 1966 11-State value

for grazing federal lands to be $1.23 per AUM. This value is updated to

a 1991 AUM base value of $3.25, which is determined by multiplying

$1.23 by 265, the percentage change in the PGLLR from the base years

1964-1968, and dividing by 100.

The second method for estimating a fair base value comes from the

1983 Grazing Market Rental Appraisal (GMRA) on BLM and Forest Service

lands. The GMRA involved interviews with approximately 100,000 people

and generated 7,246 records for researching livestock grazing operation

costs and fees. The GMRA divided the 16 Western States into 6 pricing

regions and concluded that the value of public land grazing use ranged

from $4.68 per head month in the southwest pricing region to $8.55 per

head month in the northern plains pricing region. In 1992, the GMRA was

updated. The update identified values ranging from $4.68 per head month

in the southwest pricing region to $10.26 per head month in the

northern plains pricing region. The $4.68 value was selected for the

second base value. It was considered to have the least impact on the

permittee's livestock grazing operations.

The FVI will be used to make adjustments each year to the base

value. Production costs, and the value of the livestock produced,

influence the prices paid for grazing livestock on private lands and,

thus, are implicit in the FVI.

This proposed rule would establish 1996 as the base year for the

FVI. The FVI would not be used to annually adjust the fee in response

to market conditions until the year 1997. This proposed rule would

establish the 1995 grazing fee at $2.75, and the 1996 grazing fee at

$3.50. Thereafter, the fee would be calculated using the base value of

$3.96 multiplied by the revised FVI. By definition, the FVI in the year

1997 would equal one; yielding a 1997 grazing fee of $3.96. In

subsequent years, the calculated fee would depend on changes in the

FVI.

Under the proposed fee system presented in the ANPR, the fee would

have been adjusted annually by a FVI based on the average price paid

for private grazing in the years 1990 through 1992. Assuming that the

FVI would have remained constant until the end of the phase-in period

provided in the ANPR, the grazing fee system would have yielded a fee

of $4.28 as compared to a 1997 fee of $3.96 using the revised FVI. This

change in the derivation of the FVI is proposed in order to reduce the

uncertainty in fee changes in the immediate future that might result

from using a FVI based on less current PGLLR data.

After the 3-year phase-in, the grazing fee would be allowed to

change by no more than 25 percent annually, plus or minus, from the

amount charged the previous year. The 3-year phase-in and the 25

percent per year limit are designed to minimize impact of fee increases

on ranch operations. By comparison, the 1994 grazing fee established

under the existing regulations is $1.98.

It is the intent of the two Departments to develop a system for

earning incentives that may be used to promote rangeland reform. New

provisions have been added to the proposed rule that would provide for

an incentive-based grazing fee and would prohibit implementation of the

$3.96 base value until such time as a separate regulation is issued

which sets forth the qualification criteria for the incentive-based

grazing fee. These criteria would focus primarily upon those permittees

and lessees who agree to participate in special rangeland improvement

programs characterized by best management practices, the furtherance of

resource condition objectives, and comprehensive monitoring. However,

the proposed rule does explain that, upon issuance of the separate rule

establishing qualification criteria and upon demonstrating compliance

with said criteria, a permittee would be eligible for a 30 percent

reduction of his or her grazing fee. The Departments intend to use its

best efforts to issue a final rule establishing qualification criteria

in time to provide an opportunity for the reduced fee in grazing year

1996. A 30 percent discount would result in a grazing fee of $2.77 in

1996 and 1997 for qualifying permittees and lessees. To ensure timely

development of the rule establishing criteria for the incentive-based

grazing fee, this proposed rule would provide that the base value shall

remain at $3.50 and would not increase until that rule is adopted.

Reviewers are asked to provide suggested criteria for qualifying for

the reduced fee that address the improvement and maintenance of

rangeland health.

Section 222.52--National Grassland Fee Adjustments for Conservation

Practices.

Section 222.52 of the current rule would be revised in its

entirety. The heading would be revised to read as follows: National

Grasslands Fee Adjustments for Conservation Practices. This new section

would place into regulation a program based on the accumulation of

conservation practice credits for sound conservation practice used by a

permittee on national grasslands. Since the 1950's, the Forest Service

has allowed credit, applied to grazing fee billings, for required

conservation practices and administrative activities performed by

grazing associations on the national grasslands. Allowing credit for

required conservation practices is authorized by section 32(c), title

III, Bankhead-Jones Farm Tenant Act of 1937. This policy has previously

been issued as agency directives to Title 2200 of the Forest Service

Manual. The agency believes these provisions are more appropriate in

regulation than in directive form.

The use of credit for required conservation practices on the

national grasslands is similar to the use of range betterment funds

used on National Forest System in the 16 contiguous Western States for

implementing rangeland improvement activities. The range betterment

fund is not authorized for national grasslands. In the case of the

national grasslands, the costs to the permit holders of performing

conservation practices required by the Forest Service would be

subtracted before the Forest Service collects the grazing fee from the

permittee. In addition, provision is made for giving credit for

administrative costs that would otherwise be a cost to the Forest

Service. For example, the cost to a grazing association of issuing

individual permits and monitoring the number of grazing livestock could

be credited against the fees charged.

Sections 222.53 and 222.54--Grazing Fees in the Eastern States

Currently the grazing fees in the Eastern States do not apply to

National Forest System land in Oklahoma or national grassland in Texas.

As previously noted, under the grazing fee system proposed by this

rulemaking, all national grasslands would be subject to the same

grazing fee as that applicable to western national forests. Therefore,

it is necessary to make a conforming amendment to paragraph (a) in both

Sec. 222.53 and Sec. 222.54 to clarify that the grazing fee system

applicable in the East would not apply to grazing on the national

grasslands in Oklahoma and Texas but would apply to grazing on national

forest land in Oklahoma and Texas, which are administered as part of

the Southern Region of the Forest Service.

Under the proposed rule, terms referring to the process of

allotment management planning have been replaced by terms specifying

grazing permit terms and conditions. These changes in terminology would

coincide with proposed changes in rangeland management plans. Several

other editorial changes are proposed in this section to clarify permit

procedures.

Conclusion

The grazing fee system that would be implemented if this proposed

rule is adopted would result in an increase in fees charged for grazing

livestock on public rangelands. This proposed rule would establish the

1995 grazing fee at $2.75, and the 1996 grazing fee at $3.50.

Thereafter, the fee would be calculated using the base value of $3.96,

multiplied by the revised forage value index yielding a 1997 grazing

fee of $3.96. In subsequent years, the calculated fee would depend on

the changes in the market rate for private grazing land leases. After

the 3-year phase-in, the grazing fee would change no more than 25

percent annually, plus or minus, from the amount charged the previous

year. Preparation of a separate rule establishing an incentive-based

grazing fee is underway. As currently contemplated, permittees could be

entitled to a 30 percent reduction in their grazing fees using the

$3.96 base value if they meet certain qualification criteria, the

identification of which will be the focus of this separate rulemaking.

Pending adoption of this separate rule, the base value shall remain at

$3.50 for the purposes of calculating the fee. The proposed fee system

would apply to all National Forest System lands in the Western States.

Public comment is invited and will be considered in adoption of the

final rule.

Regulatory Impact

This proposed rule has been reviewed under Executive Order 12866 on

Regulatory Planning and Review. The agency has determined that this

proposed rule is a significant regulatory action subject to Office of

Management and Budget review. This rule may result in increased

operational costs for ranch operations that have permits on National

Forest System land in the Western States.

The Department of Interior has prepared an initial Small Entities

Flexibility Assessment analyzing the economic impact of this rulemaking

on small entities under the Regulatory Flexibility Act (5 U.S.C. 605 et

seq). The public may obtain copies of the draft Small Entities

Flexibility Assessment by writing to the address listed under Addresses

earlier in this document.

Environmental Impact

The Bureau of Land Management and the Forest Service, as a

cooperating agency, are preparing a draft environmental impact

statement (DEIS) on ``Rangeland Reform '94'' as announced in the

Federal Register on August 13, 1993. Upon completion of the draft EIS,

a notice of availability will be published in the Federal Register with

an opportunity for public comment. Following the comment period on the

draft EIS, a final EIS will be developed and a Record of Decision

published in the Federal Register.

Constitutionally Protected Property Rights

This rule has been reviewed for its effects on private property

rights (Executive Order 12630 of March 15, 1988, ``Government Actions

and Interference with Constitutionally Protected Property Rights'' as

implemented by the U.S. Attorneys General's Guidelines for the

Evaluation of Risk and Avoidance of Unanticipated Takings). Under the

Guidelines, benefits, and privileges bestowed by the Government are

expressly excluded from the definition of private property rights

protected by the Fifth Amendment.

The Congress established that a grazing permit is a privilege

through the Granger-Thye Act of April 24, 1950 (Section 19), and the

Federal Land Policy and Management Act of October 21, 1976 (Section

402(h)). Both of these acts state that the issuance of grazing permits

in no way grants any right, title, interest, or estate in or to lands

or resources held by the United States.

A long line of court cases has established that a grazing permit is

a noncompensable interest since it is a privilege to use federally

owned land for livestock grazing purposes. Accordingly, it is a

privilege--not a right-which can be withdrawn or canceled by the United

States without compensation. Since this rule deals with granting a

privilege, Executive Order 12630, which involves the taking of private

property for public use, does not apply.

Notwithstanding the above, the Office of General Counsel has

prepared a Takings Implication Assessment (TIA) on grazing activities

undertaken by the Forest Service. The TIA concluded that regulatory

activities associated with Forest Service administration of grazing on

National Forest System lands do not present the risk of a taking of

private property.

Information Collection Requirements

This proposed rule governing grazing and livestock use on National

Forest System land does not contain any recordkeeping or reporting

requirements or other information collection requirements as defined in

5 CFR part 1320.

Civil Justice Reform Act

This proposed rule has been reviewed under Executive Order 12778,

Civil Justice Reform. If this proposed rule were adopted, (1) all state

and local laws and regulations that are in conflict with this proposed

rule or which would impede its full implementation would be preempted;

(2) no retroactive effect would be given to this proposed rule; and (3)

it would not require administrative proceedings before parties may file

suit in court challenging its provisions.

List of Subjects in 36 CFR Part 222

Grazing lands, Livestock, National forests, National grasslands,

Range management.

For the reasons set forth in the preamble, 36 CFR part 222, subpart

C, is proposed to be amended as follows:

PART 222--RANGE MANAGEMENT

Subpart C--Grazing Fees

1. The authority citation for subpart C to read as follows:

Authority: 16 U.S.C. 551; 31 U.S.C. 483A; 43 U.S.C. 1901.

2. Revise Secs. 222.50, 222.51, and 222.52 to read as follows:

Sec. 222.50 General procedures.

(a) Fees shall be charged for all livestock grazing of National

Forest System land or other land under Forest Service control, unless

otherwise expressly provided in the grazing permit terms and

conditions.

(b) In calculating fees, the agency shall not consider any value

associated with a grazing permit that may be capitalized into the

permit holder's private ranching operation.

(c) For billing purposes, the grazing fee charged is for each head

month of livestock grazing. The fee is prorated on a daily basis and is

multiplied by the number of head months of use and the number of days.

For purposes of calculating grazing fees, a head month is a month's use

and occupancy of rangeland by one adult cow, bull, steer, heifer, horse

or mule, five sheep, or five goats. An animal is an adult if it is

weaned, is at least 6 months old at the beginning of the permitted

period of use, or will be 12 months old during the permitted period of

use.

(d) When sheep grazing is already authorized by a grazing permit,

no additional charge shall be made for lambing upon National Forest

System land or other lands under Forest Service management.

(e) The grazing fee established in Secs. 222.51, 222.53, and 222.54

may be charged for all livestock grazing of National Forest System land

authorized by a temporary grazing permit. However, the authorized

officer may waive or otherwise adjust the fee when the Forest Service

imposes limitations or requirements on grazing use for the purpose of

implementing management objectives in the forest land resource

management plan and the terms and conditions of the grazing permit.

(f) All fees charged for livestock grazing of National Forest

System land are payable in advance of the opening date of the grazing

period, or entry, unless otherwise authorized by the Chief of the

Forest Service and provided for in the grazing permit.

(g) Refunds or credits may be allowed under justifiable conditions

and circumstances as the Chief of the Forest Service may specify.

(h) The fee year for charging grazing fees is March 1 through the

following February.

Sec. 222.51 Grazing fees in the West.

(a) A grazing fee shall be established annually under paragraph (b)

of this section for livestock grazing on National Forest Systems lands

in the Western States.

(b) Except as provided in paragraphs (e) and (i) of this section,

the annual fee for livestock grazing under paragraph (a) above is

determined by a base value of $3.96 which is multiplied by the forage

value index (FVI) or grazing fee = base value x FVI. The FVI is the

change in private grazing land lease rate (PGLLR) of the 17 Western

States weighted average AUM price in each state. The PGLLR estimate is

prepared annually by USDA, National Agricultural Statistics Service.

(c) The base value shall be $3.96.

(d) The base year used for computing the FVI shall be 1996.

(e) The grazing fee shall be phased in over a three-year period,

computed as follows:

(1) The fee for 1995 will be ($2.75).

(2) The fee for 1996 will be ($3.50).

(f) Starting with the year 1997 and, thereafter, the annual fee

shall be computed, as specified in paragraph (b) of this section, using

$3.96 times the FVI.

(g) Any annual increase or decrease in the grazing fee occurring in

the year after 1997, and thereafter, shall be limited to not more than

25 percent from the fee charged the previous year.

(h) Starting with the year 1996, permittees will be eligible for an

incentive-based grazing fee that would reduce fees by 30 percent of the

value specified in paragraph (c) of this section based on a

demonstrated compliance with certain qualification criteria. The

incentive-based grazing fee for 1996 = $3.96 x 0.70. The incentive-

based grazing fee for 1997 and thereafter = $3.96 x FVI x 0.70.

(i) Notwithstanding paragraph (b) of this section, the base value

in 1997 and, thereafter, will be $3.50 until such time as qualification

criteria for the incentive-based grazing fee are established.

(j) Qualification criteria. [Reserved]

Sec. 222.52 National Grasslands fee adjustments for conservation

practices.

Grazing fees for National Grasslands may be credited up to 50

percent for conservation practices and administrative costs as provided

in paragraphs (a) and (b) of this section.

(a) Credit for Conservation Practices. In order to receive credit,

requirements for permittee construction or development of conservation

practices must be incorporated into term grazing permits, including

grazing agreements, with a provision that credits for such improvements

shall be applied toward the annual grazing fee. Fee credits are allowed

only for the following conservation practices:

(1) Where the Forest Service requires the permittee to construct or

develop the conservation practices to meet management direction

contained in relevant forest land and resource management plans,

related projects decisions, and the term grazing permit or grazing

agreement.

(2) Where the conservation practices are necessary to achieve or

maintain desired vegetation conditions for resource protection, soil

productivity, riparian, watershed and wetland values, wildlife and

fisheries habitat, and other related values.

(b) Credit for Administrative Costs. Where a grazing association

carries out administrative duties as defined in a grazing permit,

credits for specified reasonable administrative costs borne by the

grazing association may be applied toward the grazing fee. Allowable

costs are limited to those costs which the Forest Service would

otherwise incur if the grazing association did not perform these tasks.

Qualifying costs and activities must be identified in each grazing

permit terms and conditions.

3. In Sec. 222.53, revise paragraphs (a) and (c)(3)(ii) to read as

follows:

Sec. 222.53 Grazing fees in the East--non-competitive procedures.

(a) Scope. Except as provided in Sec. 222.54, on National Forest

System lands in the Eastern States, the fee charged for livestock

grazing shall be determined through non-competitive, fair market value

procedures.

* * * * *

(c) * * *

(3) * * *

(ii) Grazing Fee Credits for Range Improvements. Any requirements

for permittee construction or development of range improvements shall

be identified through an agreement and incorporated into the grazing

permit, with credit for such improvements to be applied toward the

annual grazing fee. Fee credits shall be allowed only for range

improvements which the Forest Service requires an individual permittee,

through the terms and conditions of the grazing permit, to construct or

develop on a specific allotment to meet the management direction and

prescriptions in the relevant forest land and resource management plan.

Improvements eligible for fee credits involve only costs which the

permittee would not ordinarily incur under the grazing permit, are of

tangible public benefit, and enhance management of vegetation for

resource protection, soil productivity, riparian, watershed, and

wetland values, wildlife and fishery habitat, or outdoor recreation

values. The cost of maintaining range improvements specified in the

terms and conditions of the grazing permit and other costs incurred by

the permittee in the ordinary course of permitted livestock grazing, do

not qualify for grazing fee credits.

* * * * *

4. In Sec. 222.54, revise paragraphs (a)(1), (c)(3), and (g)(2) to

read as follows:

Sec. 222.54 Grazing fees in the East--competitive bidding.

(a) * * *

(1) Applicability. The rules of this section apply to grazing fees

for any allotment established or vacated on, or after, February 26,

1990, on National Forest System lands in the Eastern States as well as

to grazing fees for existing allotments of such lands that have already

been established under competitive procedures as of [the effective date

of the final rule]. The rules of this section do not apply to temporary

grazing permits or permits with on-and-off grazing provisions as

authorized in subpart A of this part.

* * * * *

(c) * * *

(3) Copies of the applicable grazing permit, terms and conditions,

and the latest annual operating instructions shall be made available to

all prospective bidders upon request.

* * * * *

(g) * * *

(2) Grazing Fee Credits for Range Improvements. Any requirements

for permittee construction or development of range improvements shall

be identified through an agreement and incorporated into the grazing

permit, with credits for such improvements to be allowed toward the

annual grazing fee. Fee credits shall be allowed only for range

improvements which the Forest Service requires an individual permittee

to construct or develop on a specific allotment to meet the management

direction and prescriptions in the relevant forest land and resource

management plan through the terms and conditions of the grazing permit.

These improvements must involve costs which the permittee would not

ordinarily incur under the grazing permit, must be of tangible public

benefit, and must enhance management of vegetation for resource

protection, soil productivity, riparian, watershed, and wetland values,

wildlife and fishery habit, or outdoor recreation values. Maintenance

of range improvements specified in the terms and conditions of the

grazing permit, and other costs incurred by the permittee in the

ordinary course of permitted livestock grazing, do not qualify for

grazing fee credits.

* * * * *

Dated: April 20, 1994.

James R. Lyons,

Assistant Secretary, Natural Resources and Environment.

[FR Doc. 94-10082 Filed 4-26-94; 8:45 am]

BILLING CODE 3410-11-M