[Federal Register Volume 59, Number 81 (Thursday, April 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10082]


[Federal Register: April 28, 1994]


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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